Analyse the Role of Sales Teams within the Market Strategy

Analyse the Role of Sales Teams within the Market Strategy, every organisation has marketing strategies where sales teams play a pivotal role. Organisations are impacted by environmental factors that need their responses in order to survive and thrive in the long run. According to Rogers (2007) sales team helps, through marketing intelligence, in connecting the market to give information on the changes in the marketplace such as new developments from competitors and changes in customer needs to their organisations. The information accumulated is further analysed by the marketing function for appropriate corporate marketing strategy. As shown in figure 1.3.1 below, the sales team further translates the strategy to action.

Figure 1.3.1: The Role of the Sales Force in Organisational Activity

Source: Adapted from Rogers (2007) 

The ‘action’implemented is further observed in order to give feedback of the impact of the new strategy. The process then continues round the circle. Rogers (2007) posited that over a period, this cycle drives organisational improvement or change. Homburg, et al (2008), however, argued that unless there is effective flow of information between the sales team, marketiAnalyse the Role of Sales Teams within the Market Strategyng function and the organisation, formation of good marketing strategy in response to information collected by the sales team would be impossible.

The above explanation is a pointer to the information-gathering role of a sales team. Good market information gathered by the sales force can help an organisation to reduce sales cost and increase revenue. This can further enhance competitive advantage, incremental improvement and stability; helping the organisation in sales planning and business forecasting.

Sales team also carries out the role of the marketing intelligence by focusing on competitive insight and market insight, which in turn focus on the elements shown in figure 1.3.2 below

Figure 1.3.2: Market Intelligence

Source:  Quirk Enterprises (1986-2016) 

According to Crowley (2004), each of the four knowledge dimensions – competitor intelligence, product intelligence, market understanding, and customer insight- interacts to give complete understanding of the market.

The processed information from sales team intelligence can further be used for prospecting, win competitors’ accounts and growth the organisation.

Marketing intelligence role of the sales team can further help the organisation in determining the market and sales potential. It can help in deciding whether or not to enter, or invest in a new market; future forecast; and used in growth plan.

As part of the role of the sales team, the information of the product or service of an organisation is communicated to the customers through a particular strategic process. For instance, process shown in figure 1.3.3 belowis used by Nestle PLC to deliver the company products to their customers

Figure 1.3.3: Nestlé Selling process

Source: Tafakhar (cited in LinkedIn, 2016)

Conclusion

Sales team of an organisation occupies an important role as it participates in the strategic process of bringing the organisation and customers together by collecting information regarding the customers’ needs for the organisation to in turn satisfy the needs 

3.1Explain How Sales Strategies Are Developed in Line with Corporate Objectives

Sales strategies are formulated in line with corporate objectives in order to serve customers better. Corporate objectives are specific measurable outcomes focused on achieving the mission of an organisation. It is how much of what to be achieved by when (Stonich, 1982).

Some of the common corporate objectives include generating more profits and increasing market share, growth or customer base. While a new company, for instance, will focus on increasing the customer base, the established one will want to increase its market share.

Corporate strategies are the outlines of the critical steps and tasks required to meet corporate objectives. Marketing objectives are corporate tactics focusing in synchronizing the corporate and sales objectives through marketing (4Ps) tools (Jobber and Lancaster, 2009)

The focus of sales objectives is to achieve the corporate objective by selling more goods or services and attract more customers than the competitors. Marketing strategies are lists of the specific steps and actions to take to achieve the marketing objectives with a timeframe (Calvin, 2004).

Figure 3.1.1 below shows the examples of corporate objectives and strategies,and their marketing and sales functions.

Figure: 3.1.1: Corporate objectives and strategies

Source: Adapted from Calvin (2004). 

Just as corporate strategies are formulated from the corporate objective, sales strategies are also derived from the sales objectives. However, sales objectives are formulated in reference to the corporate objectives. Top management of an organisation is responsible for the corporate objectives while Sales team management is charged with the responsibilities of developing strategies to implement the corporate. Further relationship between corporate objectives and sales strategies include:

  1. Company profitability objective: One principal corporate objective of most businesses, such as Nestle PLC, is to make profit to minimize cost, survive and prosper.The sales strategy is to deliver the products to the targeted channels in line with the corporate objectives such as minimum cost delivery
  2. Growth objective:It narrows down the gap between the present and the envisioned position or size is one of the objectives of most businesses (Jobber, 2012). A business may want to grow in size or financially. The strategy may be to grow sales 20% yearly within 3 years by targeting and penetrating profitable sectors and markets, or increasing sales revenue by outselling competitors
  3. Market leadership objective: The objective may be to become a market leader through cost leadership or product differentiation (Kotler, et al., 2008). If a business chooses to lead through cost leadership, the sales strategy may be competitive lower prices such as Walmart-ASDA. The strategy is to increase market share through charging lower prices

Conclusion

Sales strategies play a vital role in delivering corporate objective. Corporate objectives formed by the top management are the foundations where all business units, including sales function, formulate their strategies. Strategies are the vehicles that drive home corporate objectives

3.2 Explain the importance of recruitment and selection procedures

Recruitment and selection procedures of the sales team are crucial for effective sales management and operations.

Bratton and Gold (2007, p.239) gave the definitions for both recruitment and selection. While they define recruitment as “the process of generating a pool of capable people to apply for employment to an organisation, they state that “selection is the process by which managers and others use specific instruments to choose from the pool of applicants a person or persons more likely to succeed in the job (s), given management goals and legal requirements”.

They also assert that selection is a process of eliminating unsuitable applicants.

Job analysis process of recruitment and selection is depicted in the chart 3.2.1 below

Figure 3.2.1: Job analysis process

Source: Adapted from Jobber (2012) 

Recruitment Process

The process is shown in figure 3.2.2 below

Figure 3.2.2: Recruitment Process

Source: Torrington et al. (2014) 

Recruitment Methods

This includes internal and external recruitment process.

Internal recruitment involves giving jobs to applicants already in employment. This comes when promotion or reorganisation is required in an organisation.

External recruitment is when a vacant position is filled from external sources such as the job centres, recruitment agencies, online, headhunting, internship, professional associations and educational institutions (Torrington et al., 2014)

Advantages and disadvantages of the methods are stated in figure 3.2.3 below

Table 3.2.1: Advantages and disadvantages of recruitment methods

Internal recruitment

 

External recruitment
1.                  Familiarity of candidate with organisations policies, procedures and culture.2.                  Influx of new ideas.
3.                  Available information and observation by superiors facilitates easier selection.

 

4.                  Candidates who are recruited from competitors provide valuable information about competitor’s moves and strategies.
5.                  Selection and socialisation of job incumbents involves less time and money.

 

6.                  Facilitates recruitment of candidates with diverse skills, expertise and vast experience.

Source: Jadoon (2015)

Selection Process

The process may involve some of the elements stated in the figure below

Figure 3.2.4: Selection Process

Sources: Kuma (2012) 

The importance of recruitment and selection (R & S) procedures

One important reason why effective R &S is important is cost.  Bratton and Gold (2007) asserted that ineffective R &S would generally result in financial losses. For instance, a candidate that is not properly assessed can hinder overall productivity. Retaining or replacing such candidate will mean additional costs to the organisation. Effective R & S helps to identifies the right candidate to fill a vacancy

In addition, effective R & S process can facilitate good retention of staff. Ineffective can lead to a high turnover and involuntary separations. A carefully conducted R & S will spot incompetent candidates or candidates who change work frequently. Good R & S will ensure acquisition of high quality sales personnel able to climb to higher responsibilities

Effective R & S helps to promote sales staff loyalty and productivity.  Schwartz (2006a) asserted that loyalty is linked to productivity. He found that employees who are dedicated to their roles would often contribute to the success of the organisation. Checking for candidates’ records of sales achievements during R & S will help to identify loyal candidates who will be productive.

Finally, R & S of sales force is beneficial to a business strategic management that can help to increase Return on Net Assets. This can contribute to the growth of the business

3.3 Evaluate the role of motivation, remuneration and training in sales management

Motivation, remuneration and training provisions play pivotal role in managing corporate sales objectives. These tools help to drive sales force to achieve corporate strategic sales targets.

A motive is a reason for doing or notdoing something (Gredler, et al., 2004).  Motivation is a process that activates and energises people to work willingly, passionately and confidently to achieve common goals at work. Guay, et al., (2010, p.172) assert that a motive is “the reasons underlying behaviour”. WhileArnord et al., (1991) listed direction, effort and persistence as components that drive employees to work.  Deci et al. (1999) observe that motivation operates intrinsically or/and extrinsically to drive people to work.  They posit that the people who are intrinsically motivated strive to seek, find and do the work which lead them to expect that their goals will be achieved; and that the people who expect to be rewarded through pay, promotion or praise to achieve their goals are extrinsically motivated. They concluded that though extrinsic motivators can produce immediate and powerful performance but do not last long. They also affirmed that intrinsic motivators are concerned with the quality of working life because their motivation is inherent rather than being imposed from outside, they tend to produce deeper and longer-term performance at work.

However, the process of motivation theory described above is broadly guided by some motivation theories such as:

  1. Instrumentality theory
  2. Maslow’s Hierarchical Needs theory
  3. Herzberg’s two factor theory
  4. Goal theory
  5. Vroom’s expectancy theory
  6. Likert sales management theory
  7. The Churchill, Ford and Walker model of sales force motivation
  8. Adams’s inequity theory

Instrumentality theory, rooted in Taylorism theory, simply believes that people work for money (Surry, et al., 1997).). This theory is based on the principle of reinforcement that makes people work only when extrinsically motivated. Success in achieving goals is rooted in rewards and incentives thatreinforce the behaviour to act. However, failure to offer rewards or incentives will produce negative effect. This is a discredit to this theory, though it is still being applied in some circumstances. For instance, bonus and other incentives are still being used in sales management to drive sales teams though they are expected to be self-motivated in order to be successful in their roles (Mind Tools, 2016)

Secondly, to motivate sales teams to fly, job dissatisfaction must give way to job satisfaction. Herzberg, et al. (1959) noted in his two-factor theory that hygiene or maintenance factors are not motivating factors. This implies that when sales teams or employees have to be based on rewards to perform, it may drive them for those moments but not all the times. When these factors are used as primary motivators, they cause dissatisfaction or de-motivation when they are not available which further impact performances. Herzberg, et al (1959) further asserted that factors causing dissatisfactioncan be substituted with motivation or the job contentfactors, listed in figure 3.3.1 below, tocreate satisfaction and good performances at work.

Figure 3.3.1: Herzberg’s two-factor model

Source:Barman (2015).

Kovach, K. (1999) confirmed that though some workers strive well under hygienic environment, most do well under motivation factors. This implies that good pay and other hygiene factors are necessary but not sufficient for sales people to be good performers.

There are other theories for motivation, however, it is important to understand individual teams and tailor motivational approach towards them because what will work in one team may not work in others.

Remuneration

Remuneration is the sum of total income of individual worker (WHO, 2000)

Configuration or bundling of payments that goes to make up an individual’s total income.

Typical remuneration sales teams’ package for salesis shownin figure 3.3.2 below:

Figure 3.3.2: Remuneration Package

Source: Shetty (2015).

Research shows that at least two theories relate to remuneration.

  1. Vroom expectancy theory which shows that there is relationship between reward and performance behaviour;
  2. Adam’s equitytheory shows correlation between equity of pay structure and performance. The theory reveals that if employees expects unfair treatment, it could lead to absenteeism or poor performance

Research by WHO (2000) states that in as much as rewards and equity can motivate performance, lack of control over staff performance; measurement problems; and over-reliance on reward system, can be problems to these approaches. This research also reveals that staff operating under this approach are not motivated from within or intrinsically. 

Training

Training, involving the items charted in figure 3.3.2 below, refers to personal development of skills and techniques relating to creating and exploring new sales opportunities and closing sales to benefit an organisation (Reilly, et al., 2007).

Figure 3.3.2: Training Programmes

Source: Mont Rose College (2016).

Vroomexpectancy theory (cited in Van Eerde and Thierry, 1996)believe that there is a strong correlation between efforts and performance. Jobber and Lancaster (2009) infer from a theory that training helps sales people to perform well, apart from:

  1. enhancing increased skill level
  2. improving self confidence, motivation and satisfaction
  3. reducing cost of sales and complaints
  4. lowering staff turnovers
  5. Increasing sales people efforts, and corporate profitability and sustainability.

However, in as much as these are true benefits to sales teams, but the downside is that they have to be intrinsically motivated and responsible for their performance to be correlated to the training received (Porter & Lawler, 1968)

3.4 Explain how sales management organise sales activity and control sales output

The activities of the sales function require be managing and controlling in order to align with corporate objectives. Sales management is about planning, executing and monitoring the sales programmes of the business organisation. It also includes recruiting, training, motivating and maintaining the skills of the sales force for the productivity of the organisation.

According to Calvin (2004), the main objectives of sales management are to:

  1. increase the sales volume
  2. maximise profits, and
  3. contribute to continuous organisational growth

Salespeople help to implement these objectives. However, the top management gives the strategic outlines to achieve the objectives of the sales management. One of the ways the top management helps to achieve corporate objective is provision of products that meet the needs and desires of the customers. Thus, sales management involves strong interaction between the salespeople, marketing function and top management

To achieve sales management strategic objectives, sales activities are designed into two categories, namely:

  1. Sales territories
  2. Organisational sales structures

Sales territories

Farris et al., (2010) defined sales territory as a grouping of customers and prospects assigned to an individual salesperson. Territories can be designed according to geography, sales potentials and history or combination of other factors. Farris and partners asserted that businesses strive to balance their territories to reduce costs and increase sales. They also established the following reasons for sales territories:

  1. To obtain thorough coverage of the market
  2. To establish the responsibility of a sales personnel
  3. To evaluate performance
  4. To improve customer relations
  5. To reduce sales activities expenses
  6. For better salesperson-customer matching
  7. For the benefit of salespeople and the organisation

However, they noted that unbalanced territories would raise the problem of unfair distribution of sales potentials among salespeople, which may result in distorted compensation, and salespeople leaving the organisation.An example of a company using is Campbell Soup Company (Armstrong, 2009, p. 485)

Organisational sales structures

Marketing organisation concerns planning, directing and coordinating the activities of the sales force for increasing organisational efficiency (AMA, 2016). Trehan and Trehan (2008, p. 246) defined it “as human beings working together for the marketing of products manufactured by a firm or marketing of commodities purchased for resale”

The organisational structures in the sales activities function are based on:

Geographic

Product

Market, and

Customer

Geographic sales structure (GSS)

GSS is a phenomenon where a salesperson is responsible for all the tasks, products and customers within a physical location

(Avila, et al., 2007b) identified a typical GSS as shown in the figure 3.4.1 below:

Figure 3.4.1: Geographic sales structure

Source: Singh (2015). 

Avila, et al., (2007b) also identified that geographic sales organization as a tall structure, and thus centralized. This has four levels of sales management with relatively small spans of control (National Sales Manager, Regional Sales Manager, Zone Sales Manager and District Sales Manager), and a sales training staff position at the national level showing centralized training activities.

Product Sales Structures

Cuevas, et al., (2015) asserted that sales management specializing by products assign salespersons the responsibility for specific products or product lines with the objectives of making them to be specialized in the product categories assigned. An example is shown in figure 3.4.2 below

Figure 3.4.2: Product sales structures

Source: Singh (2015). 

This chart is an example of a flat structure, decentralised with only three-management line, and wider span of control compared to geographic structure. Staff position is non-existence meaning no management specialisation apart from the product specialisation.

Market Sales Structure

This structure is becoming increasingly important. According to Avila, et al., (2007b), in this type of structure, the salespeople are assigned specific types of customers to meet their needs in order to understand how the customers use and buy the products of the company. This way, salespeople are able to understand and serve the customers better to the benefit of the organisation. Example shown in figure 3.4.3 below:

Figure 3.4.3: Market Sales structure

Source: Singh, G. (2015).

Here sales is organised for commercial and government accounts with a salesperson specialising in one of the two accounts. Centralisation is due to more line management levels with shorter span of control, and a specialised sales training for a staff position.

Functional Sales Structure

Firms using this structure use more than one activity for its selling operations. Avila, et al., (2007b) posited that a firm can use telemarketing salespeople to generate leads and qualified prospects while using the field salespeople for sales-generating activities, as charted in figure 3.4.4 below

Figure 3.4.4: Functional Sales Structure

Source: Singh (2015).

Customer Sales Structure

According to Zoltners, et al., (2004), this structure is best used when there is a high level of environmental uncertainty. All lines of sales management perform creative and non-routine sales activities and when adaptability is paramount in achieving performance objectives. As shown in figure 3.4.5 below, this sales structure depends on the specific characteristics of a firm’s selling situation.

Figure 3.4.5: Customer Sales Structure

Source: Singh, G. (2015). 

Comparison of sales organisational structures

According to Zoltners, et al., (2004), firms go through cycles of start-ups, maturity and decline, and need to change sales structure according the cycles. They argued that businesses are to be specialised on the growth and maturity cycles rather than on the start-up and decline stages

The comparison of the above structures is shown in figure 3.4.5 below

Figure 3.4.5: Comparison of sales organisational structures

Source: Singh (2015) 

Sales control

The control process is based upon the collection of information on performance so that actual results can be compared against the standards

Appraisal provides as assessment of current performance against which future improvements can be measured and training needs established.

Sales force control mechanisms are shown in the figure 3.4.6 below:

Figure 3.4.6: Sales Force Control Mechanisms

Source: Shin (2012)

In evaluating the sales force, performance quotas are established in order to measure the performance; compensation plan such as salary and bonus systems is formulated; and programmes are set to keep them constantly motivated

3.5 Explain the Use of Database in Effective Sales Management

The change in technology has helped immensely in managing the operations of businesses. One of the innovations brought to businesses by the advance in technology is the use of database. A database is an object used for storing structured information. It is a collection of information organised in such a way that any part of it can easily be assessed for use (Connolly and Begg, 2002). A sales database is an information bank that provides common information about customers, andhelps to avoid duplication of customers’ information.

One use of a sales database is for improved sales and marketing operations.  Apart from the demographic information such as names, addresses,telephone numbers and emails, database is used to track customers’ needs and preferences, and their competitive positioning with the company. Database can be used to tag corporate customers by type or industry. Customer information stored in the database can indicate the level, frequency of purchases and potential future purchases.

Another use of database system in sales management is to improve productivity. The bank of information available in the database of a company can improve the sales team efficiency as they can easily access and update the status of customers. Database information can also help in sending messages, generate quotes and perform other administrative tasks. In addition, it can help to target market effectively by reducing the number of unproductive cold leads. The automation of database helps to ultimately safe time, reduce cost and increase corporate sales revenue.

Database can also help to build better customer relationship through Customer Relationship Management (CRM). CRM is an approach being used by sales management to collect customers’ information from various communication channels, such as websites, telephone, live chats and other social media, for continuous interaction with them (Shaw, 1991). CRM helps company sales personnel to have a single customer view through the consolidation of various departmental databases into centralised database for the relevant use of the sales team. Some benefits if CRM is shown in figure 3.5.1 below

Figure 3.5.1: Benefits if CRM

Source: American Institute of CPAs (2016) 

CRM helps sales management to analyse customers’ data in order to segment and personalise them, as well as revaluate them in order to retain them for ultimate sales growth. For instance, some CRM application can allow sales personnel to create and send birthday and other anniversary cards to customers. Other applications generate reminders. These keep sales agents organised apart from keeping the company-customer relationship stronger.

Sales database can be used to develop sales strategies and tactics. This involves the knowledge gained from solving the first few problems tomodify the behaviour of customers and sales personnel in order to improve the long-term sales drives and profitability of the organisation. The steps taking may include reallocation or modifying of resources, communication process and performance measurement.

Another use of the sales management database is to retain customers’ details.(Kokemuller, 2016).To be able to remember the details of customers long after the period of interaction, it is important to keep record. This can be done through database system that can be used to build further rapports. Recording customers’ discussions such as gym days and their children schools can be referred to in subsequent meetings to show genuine interest on their personal wellbeing rather than showing interest on their economic relationship only.

Sales databases can be used for scheduling prospects and customers(Kokemuller, 2016). When a contact is made with a customer for the first time, a note on the future appointment time can be made on his contact profile. When it is a day or two for the appointment to take place, the programme will prompt a reminder. This helps to keep appointments effectively with customers thereby generating increased customer relationship and increased productivity

Analyse the Role of Sales Teams within the Market Strategy

In conclusion, though a database is a very useful and effective tool in sales management, the threat of virus and corruption can pose a serious limitation. However, this challenge can be managed by implementing effective security system.

4.1 Developing a Sales Plan for Sports Wears

We are Kick-LaksSportswears Ltd, also known as KLS Ltd. We plan to take our customised sportswear business to Nigeria and the rest of West African countries by the end of this year. Our sales plans follows the definition of The State of Queensland, (2016) which focuses on a strategy that sets out sales targets and plans for the sale of a product and identification of steps required to meet such targets

Our sales plans will focus on

  1. Sales targets
  2. Sales strategies and channels
  3. Market Segmentation strategy and sales tactics 

4.2 Investigate Opportunities for Selling Internationally 

Sales targets

It is our plan to enter into Nigerian market, and eventually to other African markets, with high quality sports productsbycollaborating through franchising with Sports Direct International Plc. The example of the products are shown in the images shown in figure 4.1.1 below

Figure 4.1.1: Sports Direct Products

Source: Sports Direct (2016)

Sports Direct is the largest sporting retailer in UK operating in other countries including South Africa. Apart from its different brands of T-Shirts, it also retails sports foot wears and other related sports equipment (Sports Direct, 2016).

Sales Strategies and channels

We plan to use two of the Sports Direct sales strategiesof direct selling through high street retails and online sales. This will also include opening kiosks near every stadium and higher educational institutions.

We have also planned to expand our business in West Africa through franchising business strategy

Franchising is a form of business organization in which a firm that already has a successful product or service (franchisor) licenses its trademark and method of doing business to another business or individual (franchisee) in exchange for a franchise fee and an ongoing royalty payment (Quizlet, 2016)

We plan to enter into franchise with Sports Direct with £45,000 deposit with Sports Direct. This will enable us to receive most of the supports needed, including the initial funding for our first shop in Nigeria commercial capital Lagos, shown in table 4.2.1 below. Other arrangement includes 3% annual net profit sharing. We are happy to be franchisee to Sports Direct is because of its very strong brand recognition that is able to compete well in African market.

Table 4.2.1: Start-Up Expenses

Start-up Expenses UK Pounds (£)
Legal

Consultants

Insurance

Rent for 3 years (Payment in advance)

Marketing and R&D

Shop’s fittings and equipment

Staffs’ salary for 3 months

Technology and communication

Initial stock of wears

Start-up cash in Bank

1,000

20,000

1,000

60,000

10,000

20,000

2,500

8,500

75,000

20,000

TOTAL SET-UP COST200,000

We also plan to expand our business in Nigeria and West Africa through franchising

The benefits and limitations of this franchising arrangement include

Benefits Limitations
*Rapid, low-cost market expansion.

*Income from franchise fees and royalties.

*Franchisor’s supports and motivation.

*Access to ideas and suggestions.

*Increased buying power

*Profit sharing.

*Loss of control.

*Friction between franchisors and franchisees.

*It is difficult to manage growth.

*Differences in required business skills.

* Huge Legal expenses and cost the franchise.

* There may be restrictions on creativity.

We would source our franchisees carefully through advertising using internet sources, train them locally, motivate them and keep monitoring their performance to ensure they are loyal to us.

Marketing segmentation and Sales tactics

We would adopt the three strategic business segments of Sports and leisure equipment retailing of array of global brands, which include

  1. Dunlop and Slazenger
  2. Premium Lifestyle for fashion conscious shoppers
  3. Brands focusing on events, teams and venues (Sports Direct, 2016)

We will also follow Sports Direct discounting sales strategies (Sports Direct, 2016).  A typical example shown in the chart 4.2.2 below 

Figure 4.2.2: product Discounts

Source: Web Admin (2016)

In addition, we would set up systematic budget and steps necessary to achieve our objectives with periodical evaluation of sales approach in order to improve continuously

To enter into the international market with our Sports Direct products we are assessing our internal and external environments

We are assessing our internal environment with SWOT model, which stands for Strengths, Weaknesses, Opportunities and Threats as shown in figure 4.2.1 below. Our strengths are our advantages; weaknesses being factors that are to be minimised while prioritising our efforts on the opportunities and countering the threats that open to us.

Figure 4.2.1: A & A Ltd SWOT Analysis

Strengths

*Good geographical knowledge and creative solutions

* Marketing the products of a successful UK retailer’s products

*Good quality product directly from manufacturers’ source

*Clear market niche of high quality products

Weaknesses

*Cash flow issues

*Unreliable and untrustworthy sales and distribution  personnel that need close supervision

*Small marketing budget

*Inexperienced sales team

 

Opportunities

*Competitors’ weakness in contract ethics

*New niche markets

*New product development

*Wider geographical sales area as we plan to extend to other West African countries. Sports Direct is only in South Africa

Threats

*Existing and new competitors

*Change in government policies

*Unstable market situation

*Unhealthy unethical competition e.g. bribery syndrome

* Lack of infrastructures like regular supply of electricity

* Product-faking and illegal duplication

 We are able grow fast due to our established geographical knowledge, competitive good quality produce and our creative customer service. However, we would need to work on our initial cash flow issues by bringing in partners in Africa who can bring in funds to be part of the business.

We also plan to raise funds externally through banks or finance houses. Thus, we can have bigger marketing budget,andtrain our staff.We have the opportunities to sell more into wider geographical area the big part of the continent. African continent is the hottest region on earth (World Atlas, 2016). People, especially, sports fans; fashion, fitness and brand-conscious people, as well as students love to wear sports wears (Balfour, 2015).

However, we are would be faced with unstable government policies, as the country/continent is still underdeveloped with attendant unstable government policies and market situation as well as compliance issues. For instance, corruption is at the highest pick in the nation (CIA, 2010). Nevertheless, we would have to work round it without compromising our ethical standards in our operations.Another issue is regarding the existing competitors such as Jijji clothing (2016). This may be a threat but with our discounting sales tactics we are able to beat all of them

We assess our business external business environment with the PEST analysis. PEST is standing for Political, Economical, Social and Technological factors.

Political

*The tax policies and trade regulations in Africa.

*High corruption level in Nigeria.Corrupt law enforcement and court systems. Nigeria has been rated as one of the most corrupt country in the world (Boyer and Dicker, 2016).

*Poor infrastructures

Social

*Demographic and cultural structures

*Income distribution

*Educational system

Economical

*Inflation rate and exchange rate

*Unemployment rate and labour cost

 

Technological

*Communication system

*Technology infrastructures

 

The PEST analysis conducted would help to broaden our analysis and decision-making. We are aware of the corruption level, political climate, poor infrastructures such lack of stable electricity, as well as other economic, social and technological issues in Nigeria.

However, the current government is working round the clock to solve some of these problems, most especially corruption issues (Maclean, 2016). Again, though, the issues of corruption, political instability, poor management and lack of infrastructural facilities prevail, West Africa has now been classified as a newly emerging market for this type of business (CIA, 2010)

4.3 Investigate Opportunities For Using Exhibitions Or Trade Fairs.

According to The State of Queensland, (2016), “Trade shows and exhibitions can be an excellent way to promote your business and the products and services that you offer. They are also a great way to network with other industry members and grow your customer base. A trade show is an event where goods and services in a specific industry are exhibited and demonstrated to other businesses”

An exhibition is the same except that the audience is usually the public

Trade shows and exhibitions will be useful for us to promote our business, especially in recruiting our franchisees, for the following reasons:

  1. One of the reasons is to promote our products while giving the attendees knowledge of our products.
  2. To gain new customers by engaging the attendees and prompt them to ask questions about our products
  3. Brand awareness will be created as the press would be present to cover the events.Most exhibitions are covered by the press. It is important that we make stall attractive so as to generate positive media coverage
  4. Exhibitions will give us the opportunity to know and learn more about our competitors so as to strategise against them
  5. Exhibitions will afford the opportunity to identify potential franchisees, and other stakeholders would like to contribute more to the business in some ways
  6. In summing up the benefits of this strategy, trade shows and exhibitions would be good opportunity to promote our products, attract and gain new customers and gain more knowledge about the products’ market and competitions

We would be gaining more knowledge of trade fairs in Nigeria as we link up with Lagos International Trade Fair, the premier International Trade Fair in Nigeria based in Lagos where our Nigeria business headquarters are located

Although, we would use this promotional strategy regularly to promote our products, other methods we would be using include

  1. Advertising in and on the newspapers, radio, television, buses, billboards and on the internets
  2. Price promotions of using discounting strategy following our parent company, Sports Direct
  3. Sponsorship: We would be sponsoring major local games and sports events in Nigeria

In conclusion, international selling business can bring prosperous opportunities but it requires a great deal of efforts and risks emanating from initial market survey, business environmental assessment, franchising and the final set-up issues..

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GET INSTANT ASSIGNMENT HELP BY PHD EXPERTS FROM UNITED KINGDOM
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