Sales ManagementTerm Report

Sales Force Organization

Muhammad Zakaria

SP14-Ex-0047

Submitted to

Sir Sohail Yaqoob

Introduction

Electro Inc

Electro Computer Warehouse is one of the largest supplier of used and refurbished computer equipment. In 1994 they started their business under the name of Electro world and after relocation to Canada in 2004 our legal name was changed to Electro Inc and now trading name is Electro Computer Warehouse. Our corporate office and main distribution warehouse is located in Mississauga, Canada. They also have satellite distribution centers in USA, Dubai, Pakistan and Tanzania.

Electro Computer Warehouse ranks among the largest wholesaler and remarketer of pre owned lease computer equipment with a market presence in North America, Africa, Asia and Middle East. The company is strategically located to serve its customers and our success is dependent on our people and their commitment to fully understand our customer requirements and expectations. Our goal is to always deliver on our customers' expectations and our strength lies in the strategic partnership with manufacturers, off lease Asset Management companies and our long term customer relationships.

They are not "Brokers" and the inventory offered to our clients is physically in our warehouse and we welcome our customers to inspect the products on-site before delivery. Our record keeping, quality controls and process are thorough and this facilitates audit inspections required by developing countries. They will coordinate audit requirements and engage the services of international audit firms including SGS to provide such verifications.

Electro Computer Warehouse also refurbishes and supports recycling of equipment so that used electronic equipment is disposed in an environmentally friendly manner. This goal is a win: win for the manufacturer, Asset Management Company and the customer. We provide an opportunity for our customers to buy a single unit, bulk lots, partial containers lots and full containers at competitive pricing. We look forward to your enquiry and on building a long term mutually beneficial relationship.

20 years in the used electronics business. Local presence in major markets including Canada, USA, Dubai, Pakistan and Tanzania. Multi language sales group. Total of 40,000 sq foot warehouse with inventory of $5 million all the time.

Mission

Electro Inc

Our main focus is on Schools and Colleges in order to provide them with heavy machines at reasonable rates so that their budget can be met and students can get proper education with fast and reliable used/refurbished computers and laptops and also looking to provide under developing Countries.

Vision

To established an outstanding efficient Organization that provide economical Computers in all around the world including Pakistan , Egypt, Togo, Tanzania , Nigeria, Ghana, Kenya ,Fiji , South-West Africa, Albania, Afghanistan, Iran, Iraq.

Products PCs, (Dell, HP, Lenovo, Apple, Fujisto, Siemens, Asus etc ) TFTs (Dell, HP , Lenovo, IBM, Siemens, Apple, Sony, View sonic, Samsung etc) Notebooks (Dell, HP, Lenovo, Apple, Fujisto, Siemens, Asus etc ) Net books (Dell, HP ) Tablets (Dell, Lenovo, HP and Samsung) Smart Phones (Samsung, Apple, Blackberry, Motorola, Sony) Monitors (CRT only for Pakistan)

Demographic The major Computers in which Electro Inc dealing are Dell, Hewlet Packard and

IBM/Lenovo PCs and Laptops.

Since 2006, the proportion of Americans who own a desktop computer has fallen slightly from 68% to 59%, while the proportion with a laptop computer has increased dramatically from 30% in April 2006 to 52% in September 2010.

Eighteen-to-29-year olds are currently the only major demographic group for whom laptops are notably more commonplace than desktop computers. Nearly three-quarters of 18-29 year olds (72%) own a laptop computer, compared with 56% who have a desktop computer.

Laptop ownership goes down and desktop ownership goes up as consumer age. Among

30-49-year-olds, 61% own a laptop and 67% own a desktop. These figures continue that

trend among 50-64-year-olds (44% own a laptop and 63% own a desktop) and 65 and

older (39% own a laptop and 31% own a desktop).

General computer ownership, which stands at 76% for all American adults, also peaks

with the youngest users (88%) and gradually declines with age, reaching a low of 45%

for adults 65 and older.

Electro Inc

Racial and geographic differences are less pronounced among computer owners.

Seventy-nine percent of non-Hispanic whites own a computer, compared to 70% of

Hispanics and 67% of non-Hispanic blacks.

There is even less difference in computer ownership levels among urban (77%),

suburban (79%) and rural (70%) adults. Interestingly, rural residents are just as likely as

non-rural residents to own a desktop computer (56% of rural residents and 61% of non-

rural residents do so) but are significantly less likely than non-rural dwellers to own a

laptop computer (39% vs. 55%).

Psychographic segmentation

Electro Inc

Divides the market into groups based on social class, lifestyle and personality characteristics. It is based on the assumption that the types of products and brands an individual purchases will reflect that persons characteristics and patterns of living.

Electro Inc

Generalist Structure

Electro Computer Ware House has Generalist structure in Sales. They currently exist in four countries, where they target different regions. Each Outlet covering provided region.

Canada

In Canada Ware House the Sales force covering entire America region and also covering export demands from entire world. Entire sales force selling all the products in particular region or provided territories.

United Arab Emirates

In UAE sales outlet they are covering entire Middle East region covering Jordan, Oman, Yemen, Palestine, Syria, and Qatar.

Pakistan

In Pakistan they are covering all the Pakistan as well as Afghanistan because they don’t have sea port and using Pakistan for Containers import. In which also they have generalist structure selling all the products by one sales person.

Recommendations

My recommendations are they are good in generalist structure. If they will hire product specialist team it will be more costly. Other structures are time consuming There is no need of Product specialist Every customer is feasible with their sales agents. They don’t want to try new one or any individual for the same product

Product Specialization

A product-based specialization is most appropriate when a firm has a large, diverse, and complex line of products. In this structure, each salesperson specializes by selling only a few of the products in the organization’s total product portfolio and reports to management structure that is also focused on the same limited number of products line. Each product-based sales force calls on its own customers, sets its own goals, and rewards its own salespeople.

Electro Inc is not using product specialization in their sales force structure because they are selling their products Business to Business bulk quantity like 20-40 Feet Containers and 300-500 Laptops per order.

Electro Inc

In this case if they will use product specialization customer will not feel good because he is making a combination including PCs, LCDs, Laptops and sometimes Tablets in this case he has to ask from every product specialize it will be too much long and pathetic.

Customer Specialization

In a customer specialization-type sales force organization, also referred to as vertical marketing, each salesperson or sales team sells the entire product line to select types of business. This type of sales organization is becoming more and more popular with companies as they attempt to become more market focused and salespeople become experts in a particular customer or industry. An additional benefit is that each customer or market receives the appropriate level of selling resources.

Customer specialization even not good for Electro Inc as they are dealing in many products and can’t sell in all the markets like CRT Monitors only sold in Pakistan Market so it’s not possible to sell every product to one customer. Second Pentium IV computers not be sold in Europe Market even Core 2 duo PCs and Laptops not be sold in all the markets.

Functional Specialization

Functional specialization focuses on the activities or functions performed by customer contact people. In such situations, the sales force gains considerable efficiency and effectiveness by specializing in specific functions or activities.

New customer specialists Retention specialists End-user specialists Sales engineers Sales consultants

Electro Inc has to work on Functional Specialization right now they have bit issues in their customer retention due to bad quality because they are dealing in used computers and customer expectation too much high in first order, after receiving first order there are issues in quality. They have right now new customer Specialists, just they need retention specialists.

Strategic Account Management Program

Regardless of whether the sales force consists of specialists or generalists, one of the most significant changes now occurring in marketing is that many organizations are finding it necessary to develop a strategic account management program in additions to their regular sales force. It is more than a selling strategy.

Electro Inc

It is a marketing philosophy directed at a select group of customers that account for a disproportionately large share of the seller’s total revenues. Companies may have a consultative or transactional relationship with most of their accounts; they need to have an enterprise-type relationship with some of their accounts. Mixing the two strategies with one sales force is challenging, and research indicates that it is not likely to be successful. As a result, sales organization practice is evolving toward establishing a separate strategic account program.

Strategic Accounts of Electro Inc

Electro Inc currently has two strategic accounts

Tanzania Egypt

Strategic Account of Electro Inc from Tanzania

Sysco Net is the Strategic account of Tanzania located in Dar Es Salam Tanzania this is the only dealer in Tanzania who is selling Electro Inc products in all over the Tanzania covering all the country and selling everything in Tanzania Market including PCs, TFTs, laptops and Tablets etc. Selection of Sysco net as a strategic partner because they are good in Business financially strong and has government projects and School contracts, and this is the only representative in Africa region.

Strategic Account of Electro Inc from Egypt

World Trade for Import and Export from Egypt is the Strategic account of Egypt this is the only dealer in Cairo Egypt who is selling Electro Inc products in all over the Cairo covering whole state of the country and selling everything in Cairo Market including PCs, TFTs, laptops and Tablets etc. Selection of World Trade Import and Export as a strategic account because he is the biggest buyer of Electro Inc and dealing in all products of Electro Inc and selling around ten containers a month.

Telemarketing

Telemarketing refers to customer contacts utilizing telecommunications technology for personal selling without direct, face-to-face contact. Electro Inc is doing telemarketing right now they have office in Clifton Center Karachi Pakistan where they are operating totally sales force and telemarketing, Digital marketing, Search Engine Optimization and software work.

Advantages

Electro Inc

One reason for the growing popularity of telemarketing is that it allows companies to make cost-effective sales calls, especially on smaller customers. Telemarketing is 5 to 15 times more efficient and 70 to 95 percent less expensive than field sales.

Technology is also helping to make telemarketing more efficient. Very detailed customer database have been developed, which can flag optimal times to call and the likelihood that a customer will make a purchase. In addition, institutional memory is enhanced through the integration of telemarketing and computers.

Telemarketing Sources

Sources they are using currently for telemarketing are E-mails, Magic jack, Skype, What’s app, Viber, We Chat, Line, Coco, kakao talk, Black Berry messenger, Yahoo Messenger, Google Messenger, AIM Messenger, Facebook etc.

The effectiveness of a sales force structure will depend on a firm’s objective, strategies, capabilities, and external environment.

To reduce cost, full-line sales people and telemarketing, To increase revenue, specialization (product, customer, functional, and key accounts) supported with telemarketing, Exceptional training capabilities are frequently critical to the success of specialized salespeople, A firm must have the capability of developing new products and modifying existing products for individual product lines/markets. Sales force reorganization cannot solve a product problem, if your market is susceptible to demand or margin downturns, then specialists may prove too expensive and too difficult to redeploy. Everything they are doing at Karachi ware house and Sales Office providing online orientation, training etc.

When to Use Sales Agents

Management should consider three factors:

Economic Consequences

The economic issue centers on the fixed-cost nature of a dedicated sales force versus the largely variable cost nature of sales agents. If we put up all the required information in the equation, consequently, there is a breakeven sales volume below which sales agents are less expensive and above which a company sales force costs less.

Level of Control

Costs are not the only consideration. Salespeople who are part of an in-house sales force spend 100% of their time on the company’s products. When selling through agents, you face

Electro Inc

competition at two levels: selling competing products and firms selling products through the same agents. In other words, the company competes for the agent’s selling time.

Market Conditions

Sales agents possess established selling skills, existing client relationships, and general product knowledge. In addition they represent a largely variable expense as discussed earlier. These factors combine to favor the use of sales agents in certain market conditions. As a result, a company may sell all or only some of its products through agents.

Selecting a Sales Agency

A number of factors must be considered when selecting a particular market. First, product line compatibility is important. A good sales agent carries non-competing, complimentary product lines that have a comparable quality and price reputation. Other considerations include the percentage of the agent’s attention that will be devoted to the product line and the compatibility of territories and customers. In addition, the agent’s enthusiasm for your product line and its prior track record are important. The final consideration is the services that the partner will provide, such as market information and feedback, stocking, customer services, seminars, and trade show attendance.

Electro Inc never selected a sales agency due to many reasons

Price Control Competition It can produce a competitor Quality issues

Centralization versus Decentralization

Electro Inc is Centralized and decentralized Organization

In a completely decentralized organization, field sales managers have the resources and responsibility for performing recruiting, selecting, training, compensating, motivating, and evaluating salespeople. In a highly centralized operation, central headquarters mostly controls these activities. It also helps to ensure uniformity in an organization’s product and service offering and consistency with the marketing plan. Despite the possible benefits of centralized decision making, the trend is toward greater decentralization. Many firms attempt to combine the advantages of centralized and decentralized sales organizations. They may use sales offices to

Electro Inc

provide service to customers, but centralize part of the training and recruiting functions to increase efficiency.

Cross-Functional Coordination

With an increased focus on solving customers’ problems, the flow of communications between sales and other departments is becoming more of a two-way communications flow. The sales force now communicates customers’ needs and expectations back to the organizations. To facilitate more honest and candid exchange of information between functional areas, some companies are turning to networked personal computers to facilitate consensus building and brainstorming. According to a recent survey by Accenture, front-line sales are most likely to

interact with operations and customer service, followed by product development.

Global Account Organizations

Customer expansion to global operations and into new product lines and businesses requires suppliers to have global capabilities and real-time knowledge and responsiveness across businesses and functions. Firms are developing global account organizations, which are responsible for managing their company’s sales efforts to accounts with locations in multiple countries. The global teams are truly cross-functional, including people in operations, sales, finance, marketing, and new product introductions. The teams are designed around an understanding of customer needs and priorities and are built to reflect specific customer strategies.

Sales Teams

Today’s customers have increasingly customized and complex needs-needs that frequently cannot be met by individual salespeople. In these situations, success depends on the ability to marshal resources effectively across a range of buying locations, buying influences, product lines, and internal organizational boundaries.

Electro Inc has Sales teams consisting of salespeople, customer service, technical specialists, and other functional areas at Karachi. The objective of these teams is to consolidate greater knowledge and skills to focus on a more creative and complete solution to a customer’s need in order to build stronger customer relationship. If the customer has international operations, then a global account manager will also work with the team to coordinate their effort worldwide.

Selling Partners

Electro Inc

With the shift to direct channels and the need to customize solutions to individual customers, companies are finding it necessary to market through selling partners. These are salespeople who are not on the payroll and who not only sell but also provide technical and operating support.

This arrangement raises many strategic issues for the seller, as it does not have to shoulder all the selling costs involved in getting the attention of the final customer, but is also must be creative in attempting to control the selling process. In combination these evolving issues are having an important impact on most sales positions.