Analysis of International Sales Management at Toyota Motor Corporation

Verified

Added on  2022/09/12

|27
|7278
|55
Report
AI Summary
This report provides a comprehensive analysis of Toyota Motor Corporation's international sales management strategies. It begins with a background of Toyota and its position in the automotive industry, followed by an appraisal of its sales force, examining their interconnectedness, knowledge of propositions, and customer relationships, particularly in the B2B sector. The report then delves into Toyota's sales forecasting, sales programs, and its approach to recruiting and selecting skilled employees. It explores the company's methods for motivating salespeople, including rewards and incentives, and details its sales training approach. Key Performance Indicators (KPIs) are discussed, and the report concludes with a summary of the findings, highlighting Toyota's strategies for maintaining a competitive edge through innovation, customer-centric approaches, and effective sales force management, particularly in the evolving landscape of hybrid and electric vehicles.
Document Page
Running head: INTERNATIONAL SALES MANAGEMENT
INTERNATIONAL SALES MANAGEMENT
Name of the student
Name of the university
Author note
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
1INTERNATIONAL SALES MANAGEMENT
Table of Contents
Toyota background..........................................................................................................................2
Appraisal of the sales force of the organization..............................................................................2
Sales forecasting of Toyota.............................................................................................................9
Sales program of Toyota................................................................................................................10
Recruitment and selection of skilled employees.......................................................................10
Motivation of salespeople..........................................................................................................12
Rewards and incentives.............................................................................................................14
Sales training approach..............................................................................................................15
KPI.............................................................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................20
Document Page
2INTERNATIONAL SALES MANAGEMENT
Toyota background
The concerned organization, Toyota Motor Corporation, is a Japanese multinational
organization, which aimed at manufacturing automotive vehicles (TOYOTA CORPORATION.,
2019). The business is headquartered in Toyota, Aichi and is considered as one of the sixth
largest company in the world by revenue (TOYOTA CORPORATION., 2019). The different
changes that are planned by the organization enabled the same in retaining the operational safety
and security of the operations as per the needs of the venture. The major aim of the organization
is to provide cost effective propositions as per the needs of the customers.
The concerned venture considers both B2B and B2C sales with the objective of gaining a
competitive edge in the different markets. The frequent innovations that are made by the
business in the organizational processes encouraged the growth and expansion of the same. The
continuous innovations in the propositions also encouraged the growth of the hybrid vehicles in
relatively affordable costs, which again permitted the venture in gaining the attention of the
prospective customers (TOYOTA CORPORATION., 2019). Royer (2019) stated that the
continuous innovations in an organization enables the same in improving the market position of
the same. The different strategic discourses that are employed by Toyota enabled the same in
retaining the trust and loyalty of the primary and secondary customers. Therefore, the research
will consider the sales force and the resources that Toyota incorporates with the objective of
improving the B2B operations.
Appraisal of the sales force of the organization
The organized sales force of an organization is reliant on the knowledge of the
propositions and the manner in which the customers might be made aware of the different
Document Page
3INTERNATIONAL SALES MANAGEMENT
changes as per the needs of the venture. In this relation, the sales resource of the concerned
organization is managed through interconnectedness of the stakeholders. The concerned
organization took the initiative of creating dedicated portals for reinforcing interconnectedness
among the employees. Möller and Parvinen (2015) stated that the sales resource and sales force
are greatly dependent on the knowledge of the propositions and improved customer
relationships. In this relation, communication with the stakeholders play an important role for the
organization in empowering the knowledge of the processes.
The trust and confidence of the customers on the organization plays an important role in
improving the position of the venture. In this relation, the continuous innovations that are made
by the business while implementing concepts relating to Kaizen and Lean production enabled the
same in improving the propositions that are being made by the venture (TOYOTA
CORPORATION., 2019). The different changes in the organizational operations are based on
the effective functioning of the different systems as per the needs of the venture. It has been
noted that the application of the lean principles in the manufacturing process enabled the venture
in gaining significant grounds on the different changes as per the needs of the venture. The
concerned organization is infested with the responsibility of developing the performance of the
production processes through the induction of different techniques like the Kaizen.
Toyota formed dedicated portals for the stakeholders and the sales executives for making
the same aware of the diverse new propositions that are being created by the organization (Li,
2018). The extensive knowledge on the propositions would allow the sales executives of the
organization in negotiating with the B2B customers while making the same aware of the new
opportunities that the propositions would create for their brands (Bothe & Grab, 2018). It has
been noted that Toyota has brought different improvements in the Hybrid models, which is
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
4INTERNATIONAL SALES MANAGEMENT
largely demanded by the organizations. On the other hand, the environmental concerns has
greatly influenced the growth of electronic vehicles in the automotive sectors (Reinartz &
Berkmann, 2018).
Most of the companies like Ford and GM (General Motors) have bought designs of the
hybrid technology that was developed by the concerned venture (TOYOTA CORPORATION.,
2019). The knowledge of the sale executives and the customer care executives relating to the
propositions aimed at influencing and assisting the businesses while making the same aware of
the benefits of the technologies. Lüke et al., (2019) stated that the key modifications in the
organizational operations are based on the transmission of knowledge and the active participation
of the employees in the different processes. In this relation, Toyota took the initiative of
providing the employees with live presentations and open discussions for making the same aware
of the technological developments. Therefore, efficient knowledge transmissions permitted the
operations as per the needs of the venture while operating in the different markets as per the
needs of the venture.
On the other hand, the customer relationships of the organization are induced through the
utilization of meetings and negotiation with the chief businesses to which the concerned venture
is planning to develop the resources. Royer (2019) stated that the efficient communication with
the customers and the other stakeholders of the business allows an organization in retaining the
trust and loyalty of the customers while operating in the different markets. Therefore, the
concerned venture focused more on developing efficient communication with the different
business level stakeholders for improving relations. It has been noted that the concerned venture
made use of the B2B sales through the utilization of the online auctioning of the propositions.
Document Page
5INTERNATIONAL SALES MANAGEMENT
The online auctioning platforms was utilized by Toyota for establishing efficient contacts with
the business customers for making the B2B sales (Gammoh et al., 2018).
The concerned venture aimed at inducing the values of monozukuri (manufacturing)
which responds to the changing needs of the customers (Rouziès & Onyemah, 2018). The
concept of monozukuri is influenced by the improvements in the product, marketing and
management quality in the organizational portfolio. It has been noted that Toyota specialize in
continuous improvements in the processes while training the employees with the objective of
enhancing the skills for providing increased assistance to the business corporations. The
continuous innovations that are made by the organization in the field of hybrid vehicles
permitted the venture in gaining over the trust and confidence of the businesses. Moreover, the
customer- first approach of the venture critically enabled the same in retaining the trust and
loyalty of the customers while operating in the diverse markets (Nguyen et al., 2019). It has been
noted that the emergence of the need of electronic vehicles brought about significant changes in
the propositions that are to be made by the businesses. In this relation, the concerned venture
supported the growth of the electronic vehicles through selling their hybrid technologies to
different other brands.
The attempts of continuous development in the line of technologies and the quality
improvement related objectives permitted the venture in empowering their sales through
improved negotiation. Negotiations and effective communication with the customers through the
events and promotions along with assistance in the time of auctions permitted Toyota in gaining
over the trust of the business customers (TOYOTA CORPORATION., 2019). Therefore, the
policies and procedures that are initiated by the organization through the improved knowledge of
Document Page
6INTERNATIONAL SALES MANAGEMENT
the stakeholders and customer relationships enabled the same in organizing the operations of the
sales force in accordance to the strategic needs of the venture.
Managing the sales resources and driving it towards profit-making section for the
company is a challenging task for any B2B structure. Toyota has successfully developed the B2B
model for its international ventures that are not only related to the automobile industry but deals
with information technology. As the business sectors of Toyota in the B2B is varied, the
company has the necessity to maintain its customer relationship effectively. In the B2B, the
customers are the executive partners of an established company. Finalising the deal with these
executives is considered to be a tougher task than dealing with B2C customers. The negotiation
power of the dealer in the B2B business structure needs to be of expert level (BORODOW et al.
2019). There are many important dissimilarities of the business structure from that of other
business types. These only make the process more complicated and crucial. Even the advertising
and selling of the products or services in the B2B structure are different.
Toyota started its journey as the car manufacturer and joined the B2B e-commerce
afterwards. In the B2B system, the company has an organised sales source that involves
customer management activities for the company. While discussing how the sales force are
organised in the company, one must first take a look at the services that the company provides in
the B2B sector (Reid et al., 2017). In the B2B sector, the number of buyers is limited. Toyota
deals with online auctions, AI transactions and communication business. The role of the
salesperson in the marketing aspects is crucial. In the case of Toyota's e-commerce ventures, the
expertise of the sales resources is directly related to the finalizing of a deal. In organizing the
sales force, the company depends on two important contexts- the size of sales force and selling
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
7INTERNATIONAL SALES MANAGEMENT
style. There is some process through which the company organizes the sales force in its B2B
endeavors.
Setting Targets
The setting an objective for a particular sales target is the primary requirement for a
business company. This objective helps the salesperson to get the idea of what they have to do in
the sales process. The sales objective of Toyota is based on customer satisfaction and sales
increase. The company objectives for sales force management is to provide guidelines to the
salesperson and sales size needed (Wang & Miao, 2015). Other than getting a competitive
setting, the strategies for sales are set through the sales objectives. The sales force automation
helps in order management, product knowledge and sales forecasting for the sales resources.
Recruiting and Assigning Executives
The recruitment process of the Toyota Company follows the traditional approach. The
basic concept is depended on two aspects, job description and job satisfaction. The company
makes sure that the salespersons are informed adequately about their job roles. Activities that are
involved in the recruitment of the employees are job analysis, job description, job
specification, selection and lastly training them for the company objectives (Malek, Sarin &
Jaworski, 2018). For the AI e-commerce of the company, the sales force are directed for building
a strong customer relationship in the sectors of automotive, banking and finance, hi-tech, energy
and industrial manufacturer.
The next step is assigning executives for the sales job. The company makes sure that the
sales executives have high experience and negotiation skills for their technological deals. The
company has launched its e-CRB that deals with customer relationship management technologies
Document Page
8INTERNATIONAL SALES MANAGEMENT
(TOYOTA CORPORATION., 2019). The sales professionals of the B2B business for the
company are assigned their jobs according to their skills and experiences (Jobber, Lancaster &
Le Meunier-FitzHugh, 2019). In these business sectors, the company makes sure that
experienced employees are at a high executive level, and the sales unit is working under their
leadership.
Training activities
Toyota believes that the efficiency of the sales force could be increased by the training.
The training for the sales executives is designed according to the requirement of the job and
company objectives. According to Cron (2017), the pieces of training are there to increase the
knowledge of the employee during particular job time. In the sales force management of Toyota,
training plays a very crucial role as it is organised at several levels. The company trains its sales
person’s right to form the basic level to the officer’s level. These trainings are instrumental in the
career development of the employees as well. For their B2B business plans, the company have
designed both on the job and off-job training (TOYOTA CORPORATION., 2019). Most of the
time, training are organised annually. After the recruitment of a salesperson, it is mandatory for
him to go through the training session in order to align himself with the B2B sales procedure of
the company.
Controlling
In the controlling section comes the compensation, measuring the sales force
performance, detecting the deviation and comparing the performance with the standard set by the
company. The controlling measures of the company have been designed to keep the sales force
active and alert. The managers of the sales department have the responsibility to control the sales
Document Page
9INTERNATIONAL SALES MANAGEMENT
and the performance of the professionals (Benet-Zepf, Marin-Garcia & Küster, 2017). The first
step in the process is to set the standards for the personals. This is communicated with the sales
force, and their job roles are clearly stated to them. The performance of the sales force is
measured quarterly in the B2B businesses of the company. This is followed by the comparison of
actual performance with the standard set. The deviation of the standards is decided at the end of
the year. The reasons for deviations are corrected through some follow up actions in sales
management.
Evaluating salespeople
The last step of sales force management of the company is the evaluation of the
salespeople performance. This is the step where the company sales managers compare the
performance. The evaluation is done according to the objectives of company sales. The
evaluation process helps the company to understand where its sales parameters and what targets
they are able to achieve (Onyemah, 2015). The valuation is also used for the appraisals of the
sales executives that works as the motivation for the sales force performance enhancement.
Sales forecasting of Toyota
Sales Forecasting for 1st Year:-
Products Price
per
unit
(in
millio
n)
1st month - 4th
month
5th month - 8th
month
9th month -
12th month
Total Annual
Revenue (in
million)Averag
e
number
of
custom
ers
Reve
nue
(in
milli
on)
Average
number
of
custome
rs
Reve
nue
(in
milli
on)
Averag
e
numbe
r of
custom
ers
Reve
nue
(in
milli
on)
Hybrid
technolo
gies
$
6.00 4
$
24.00 5
$
30.00 6
$
36.00
$
90.00
OEMs
$
5.20 3
$
15.60 6
$
31.20 4
$
20.80
$
67.60
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
10INTERNATIONAL SALES MANAGEMENT
Patents
$
7.00 5
$
35.00 9
$
63.00 8
$
56.00
$
154.00
Total 12
$
74.60 20
$
124.2
0
$
112.8
0
$
311.60
Sales Forecasting for 2nd Year:-
Products Price
per
unit
1st month - 4th
month
5th month - 8th
month
9th month -
12th month
Total Annual
Revenue (in
million)Averag
e
number
of
custom
ers
Reve
nue
(in
milli
on)
Average
number
of
custome
rs
Reve
nue
Averag
e
numbe
r of
custom
ers
Reve
nue
(in
milli
on)
Hybrid
technolo
gies
$
6.00 7
$
42.00 5
$
30.00 8
$
48.00
$
120.00
OEMs
$
5.20 6
$
31.20 7
$
36.40 12
$
62.40
$
130.00
Patents
$
7.00 9
$
63.00 12
$
84.00 16
$
112.0
0
$
259.00
Total 22
$
136.2
0 24
$
150.4
0
$
222.4
0
$
509.00
Sales program of Toyota
Recruitment and selection of skilled employees
The recruitment and selection process includes three distinct section. The first is the
vacancy prediction and job posting, the second is the selection procedure and the third is
selecting the right employee from the pool (Heilman, Manzi & Braun, 2015). Toyota is an
innovation based high performance company. The company needs to give special focus on
selecting the right employee for the organization. As B2B sales is their primary concern, they
must select efficient sales employees in order to be able to reach their business goals. As the
Document Page
11INTERNATIONAL SALES MANAGEMENT
company is high performance organization and have competitive culture, the sales executives
need to have certain skills and capabilities to be able to survive. The recruitment process starts
with the prediction of upcoming vacancies and employee needs. The recruiters identify the
possibility of recruitment and create job profiles based on that. The job descriptions that are
mostly required are soft skills and interpersonal skills as well as the required educational
experience qualifications (Ekwoaba, Ikeije & Ufoma, 2015).
For their B2B sales, Toyota recruits employees mainly on external basis. It requires
proper pooling and interview process so that right talent can be retained in the organization. The
internal employment provides many advantages to the company. They employees have more
engagement and commitment to the organization, greater job satisfaction and development. For
the leadership and supervisory position, the company prefers internal recruitment. These
employees have already been oriented with the organizational culture and work process. They
are more involved and have a certain degree of loyalty towards the organization (Holm & Haahr,
2018). External recruitment allows new talents to enter the organization. The company holds
multiple rounds of interview so that they can select the best possible match for their organization.
The interview process for Toyota includes two rounds of personal interviews, group
discussion, aptitude tests and personality test (TOYOTA CORPORATION., 2019). The
candidates must perform exceptionally well in all the categories and must show a charisma in
their character to be considered for the posts. Sales requires greater interpersonal skills. The sales
executives also need to be able to perform in teams and should have certain leadership qualities
for the recruiters to consider them as highly potential employees. The company mainly
approaches the educational institutions for their fresh pool of candidates. They hold on-campus
recruitments for the students through career exhibitions and exams. The company maintains the
chevron_up_icon
1 out of 27
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]