Sales Process and Relationship Selling: Scholfield Honda Report

This report provides an overview of sales force management, the sales process, and relationship selling techniques, using Scholfield Honda as a case study. It begins with an introduction to sales force management and its significance, highlighting the use of CRM software and its impact on product development, distribution, financial decisions, and staff quality. The report then details the sales process, emphasizing the importance of handling customer objections and complaints. It further examines the relationship selling techniques employed by Scholfield Honda, such as identifying common ground, adding value, patience, and better listening. The report also discusses the dangers of car dealerships' heavy reliance on sales promotions, and suggests ways to overcome potential obstacles such as sales pressure, narrow margins, and a constantly shifting market. The conclusion reiterates the importance of sales force management and relationship selling for organizational success and customer retention, and recommends training and development sessions to address future challenges. The report references various books and journals to support its findings.

Sales Force/Sales
Process/Relationship selling
technique for Scholfield Honda

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Sales force management and its significance.....................................................................1
2. Sales process.......................................................................................................................2
3. Relationship selling techniques used by Scholfield Honda................................................2
4. Dangers car dealerships encounter because of their heavy reliance on sales promotions..3
5. Suggestion of ways to overcome possible obstacles that a car dealership may encounter 4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Sales force management is an information management system and tools that are used by
company to track and manage its sales force production activity. Presented project report is a
brief study material based on sales force management in which Scholfield Honda which deals in
Honda vehicles and is the largest dealer in state. This paper creates understanding of sales force
management with its importance in the organization accompanied by sales process and consumer
decision process. Further, relationship selling techniques which are used by Scholfield Honda are
elaborated with examples from the given case study. Moreover, emphasis is also given to
dangers and challenges that car dealership encounter due to heavy reliance on sales promotion
with their ways and suggestion to overcome them.
MAIN BODY
1. Sales force management and its significance
Sales force management is an information management system and tools that are used by
company to track and manage its sales force production activity. Basically, Scholfield Honda
make use of CRM software. Its significance is as follows:
 Improves Product Development: It includes keeping sales staff in touch with customers
to watch competition and to determine that product line is relevant or not. Regular
reviews are taken to assure the optimal product or service in order to generate high sales,
volumes and profit margins.
 Optimizes Distribution: Sales management program provides company with
information related to products sold as well as place of making sales. It also evaluates the
distribution methods and maximises their use (Andzulis, Panagopoulos and Rapp, 2012).
In order to improve retail sales, it is also possible that better retailer training is needed to
be provided, more store promotions and change in product packaging are also required.
 Better Financial Decisions: Lowest profit margins from best selling products can cause
a burden on company's production and administration departments. As, sales force
management provide detailed sales report with information related to overhead and
production costs which can lead to better financial decisions. It also gives emphasis to the
profit contribution, impact of carrying each product on operations and opportunity cost.
 Improves Staff Quality: Recruiting, training and managing sales staff is the main job of
sales force management program. This includes, their personal development with skills
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and knowledge related to product, improvement in writing and speaking skills and
assisting them in working effectively.
2. Sales process
In general, a systematic selling process consists of eight easy steps; pre-sales preparation,
prospecting, pre-approach, approach, sales presentation, handling objection and complaints,
closing sales and the last step i.e. post sales actions. The most important step of sales process is
of handling objections and complaints. It is the responsibility and duty of sales person to clear
the grievances and complaints of customer regarding any of the product and services (Johnston
and Marshall, 2013). This would generate trust and loyalty in the mind of customer and to give
better sales experience. Normally customers raises objections after completion of sales
presentation by salesman. These objections and complaints by customers show his interest in the
product and is more likely to place an order.
It is the prime duty of salesman to welcome those objections and complaints by
interpreting them clearly. Prospectus must be convinced by salesman by explaining benefits,
performance and strong aspects of the product. After clearing all objections and complaints
effectively, sales can take place. Although, consumer's decision process includes following steps;
problem recognition, information search, evaluation of alternatives, purchase decision, post
purchase evaluation/behaviour. In case of Scholfield Honda, customer will take decision of
purchasing car through the mentioned process of it and to conduct sales, all the objections and
complaints of the prospectus would be welcomed by salesman. It is the primary responsibility of
salesman to clear all objections and complaints to have a successful sale of car (Bennett, 2013).
3. Relationship selling techniques used by Scholfield Honda
Relationship selling is a technique of sales which is based around using relationships to
close sales. It is typically used to sell high priced items and things that have long sales cycle.
Following mentioned are some relationship selling techniques which are used by Scholfield
Honda:
 Identification of common ground: This technique is used to know anyone on a personal
level and to build relationship with him. Scholfield Honda establish a thorough
conversation with its customers and by facilitating them with their requirements. By
implementing this, company is able to establish a good relationship with its customers.
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 Addition of Value: It means adding value by garbing leveraging opportunities to help
prospects out. In order to add value to its customer, sales consultant at Scholfield Honda
gives reasonable freedom to its customers for negotiation on price and facilitating with
their required products through spreadsheets of price and details of different models and
features (Cron, DeCarlo and Dalrymple, 2010).
 Patience: Selling typically take time and involves a lot of back-and-forth, so patience is
required with prospects. Salesman at Scholfield Honda are very patient in dealing with
customers, as they give enough time and efforts to create understanding of products in
which prospect is interested. Also, by clearing all objections and complaints of customers
company proves its reliability and patience towards its customers.
 Better Listening: It is noticeable that many of times inexperienced salespeople make
mistake of talking too much but this does not happen with Scholfield Honda. As, they
hire an experienced and well groomed employee and they take hiring process very
seriously. Through proper training and development programs, listening habits of
employees are improved.
4. Dangers car dealerships encounter because of their heavy reliance on sales promotions
On the basis of cited case situation sales promotion techniques undertaken by Scholfield
Honda for the enhancement of revenue includes advertisement placement on radio, newspaper
and television. Hence, dangers associated with the above mentioned advertisement modes are
enumerated below:
 Low younger-market readership: In the recent times, young people spend their lots of
time on social networking sites. Hence, they receive news and prefer to do shopping via
online modes rather than traditional. For example: In UK, social media users accounted
for 390 million’s at the end of 2017. Such statistical data presents that social media users
are more over traditional. Hence, Honda will lose wide customer reach in the case of
using traditional advertisement modes in against to modern.
 Cost: In the case of traditional advertisement modes, there is possibility that Honda will
incur high cost which in turn places direct impact on its profitability.
Above mentioned dangers were encountered by company during car dealerships due to
heavy reliance on sales promotion. Further, techniques which are using by Honda currently come
under the category of traditional tools. Such traditional modes of advertisements have limited
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reach over modern. Moreover, modern tools such as social media marketing helps in providing
information to the large number of customers at low cost. Thus, lack of global customer reach is
one of the main issues which in turn associated with traditional sales promotion techniques using
by Honda.
5. Suggestion of ways to overcome possible obstacles that a car dealership may encounter
Obstacles that a car dealership encounter: Sales Pressure: Due to lack of knowledge regarding new technologies and advancement
in car features in coming future.
Solution-
1. Proper training could be given to employees in order to introduce them with the latest
upcoming model of car and use of technology in it.
2. Development programs should be organised to reduce sales pressure of dealers and
objections of customers can easily be answered. Narrow Margin: This could be the biggest obstacle for the company due to negotiation
(Challenges Dealers Face, 2018). As, company is giving enough freedom to its
salespersons in order to bargain with prospects.
Solutions-
1. Salesperson should be bounded with a minimum price after bargaining.
2. Training sessions should be organized to make them learn effective ways of bargaining
with prospects. Constantly shifting Market: In this changing world of technology, market is shifting
constantly which can create danger for Scholfield Honda.
Solutions-
1. Company should do strategic planning to know strategic position of business in this
industry.
2. Competitive analysis should also be done to know plans and strategies of competitors to
take next move in business (Sudhahar, 2016).
CONCLUSION
Concluded report is a brief understanding and research conducted on sales force
management of Scholfield Honda. Through this report it could be summarised that sales force
management is very important for every organization in order to survive in this competitive
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market and to retain customer. It was also concluded that handling objections and complaint is
the most important step of sales process which aims at clearing objections and complaints of
prospects to attain effective sale. It could also be stated that; Identification of common ground,
Addition of Value, Patience and Better Listening are some relationship selling techniques that
are used by Scholfield Honda. It was suggested to company that it should provide proper training
and development sessions to its dealers in order to prevent possible outcome in near future which
are; sales pressure, narrow margin and constantly shifting market.
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REFERENCES
Book and Journals
Andzulis, J. M., Panagopoulos, N. G., & Rapp, A. (2012). A review of social media and
implications for the sales process. Journal of Personal Selling & Sales Management. 32(3).
pp.305-316.
Bennett, V. M. (2013). Organization and bargaining: Sales process choice at auto dealerships.
Management Science. 59(9). pp.2003-2018.
Cron, W. L., DeCarlo, T. E., & Dalrymple, D. J. (2010). Sales management: Concepts and cases.
Wiley.
Drollinger, T., & B. Comer, L. (2013). Salesperson's listening ability as an antecedent to
relationship selling. Journal of Business & Industrial Marketing. 28(1). pp.50-59.
Ho, J. L., Lee, L. C., & Wu, A. (2009). How changes in compensation plans affect employee
performance, recruitment, and retention: An empirical study of a car dealership.
Contemporary Accounting Research. 26(1). pp.167-199.
Johnston, M. W.. & Marshall, G. W. (2013). Sales force management: Leadership, innovation,
technology. Routledge.
Sudhahar, J. C. (2016). Sales Force Management. In Strategic Marketing Management in Asia:
Case Studies and Lessons across Industries (pp. 447-473). Emerald Group Publishing
Limited.
Online
Challenges Dealers Face. 2018. [Online]. Available Through: <https://www.affinitiv.com/5-
challenges-dealers-face/>
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