1.

EXTRINSIC AND INTRINSIC REWARDS (past year paper)

Extrinsic Reward

Definition
 Is directly related to the job performance of the employees but it is not necessary that
employees received they accomplish a task.( Controlled and offered by the people
other than the salesperson)
Profit Sharing
 A responsible company rewards its employees by sharing the profit with its employees.
Promotion
 Employees can be rewarded by handling then over new responsibilities and duties.
Bonus & Commission
 The company should appreciate their contribution by giving them additional payment as
a bonus or commission.
Fringe Benefits
 Extra thing such as a car or phone. Executive level
Example
 PAY; company can design a good payment for the employees.
 D Herbs company give bonus to agent.

Intrinsic Rewards

Definition
 A feeling of contentment upon completion of a task or work. Cannot be seen or touched.
( Salespeople primarily attain for within themselves)
 Intangible and experienced by the employee itself

4 Intrinsic Rewards

Senses of meaningfulness

 Involve meaning fullness/ important of the purpose you are trying to fulfil
Sense of choice

 Feel free to choose how to accomplish the work

Sense of competence

 Performance of activities meets personal standards

Sense of progress

 Work is on track & moving in the right direction

Related to job performance

Performance, Intrinsic rewards

Example; high sense of achievement, recognition, professional growth.

2. WHAT IS CRM?

-Comprehensive business model for increasing revenues and profits by focusing on customers.
-Overarching business philosophy and process tool to facilitate a customer-driven enterprise.
ADVANTAGE OF CRM
 Reduces advertising costs
 Increases awareness of customer needs
 Tracks effectiveness of promotional campaigns
 Competition for customers based on service, not prices
 Prevents over-spending on low-value clients, under-spending on high-value ones
 Speeds time to develop and market a product
 Improves use of customer channel
3. 6 Main skills of active listening skills

a) Pay Attention
Helps to identify details that will help sales by doing the eye contact. For example, Lancom
skin consultant Pays Attention to their customers skin problems before suggesting the right
product.

b) With-hold judgement
Open-minded in evaluating people and give fair treatment perspectives towards everyone. For
example, The receptionist in Shangri-La hotel have a neutral minded so they can treat their
customers equally.

c) Reflect
Process of parapharasing and restarting both the feelings and word. Helps focus on situations
a understanding the content. For example, an interior designer repeats back the customers
demand words by words.

d) Clarify
To make sense of confuse and complex issues. For example Grab and Uber have renovate their
apps which is complicated to the new one which is more easier to use for the sake of their
customers.

e) Summarize
Restating key themes to confirm a solidifies. For examples, Mc Donalds cashier repeats the
order to the customer.

f) Share
Sharing of ideas,suggestions and feelings due customer to understanding. For example;
insurance consultant will suggest the plan that suite their client.
 Innovation
- thinking outside of the box
Ex: cashless; using boost apps to
make payment
service; food delivery like food panda,
Technology Grab food.
- Advance in operation
machine which can hold
the capacity effectively
- Using social Media when
Globalization
doing sales 5 Keys -marketed around the
Component Of world and Enlarge the
Success market share to
outside of the country
( T.I.G.L.E) Ex; Petronas and Astro

Leadership
Ethics -Communicate with salespeople rather than
controlling them
-Formal/informal code of
conduct in organizational -Becoming a cheerleader and coach instead
culture. of a manager
-Empowering salespeople to make decision
Ex: create of rules&policy rather than directing them.
agreement between franchise &
franchisor Ex; coaching, provide training

Ethics way Unethical way

-Selling a pack of 3kg fresh orange with RM4 -Selling a pack of 3kg fresh orange with rm4

-Seller claim it as a fresh fruit -Seller claim as fresh fruit but actually the
seller mix with the old fruit
-So, benefit to seller and buyer
-So, benefit to the seller not buyer

Impacts Impacts

Long lasting in the long run because customer Last in the short run because customer will
can repeat to buy the fruit. not buy anymore as for the unethical
behavior of the seller.
4. Attractiveness of sales careers

a) Variety of challenging activities

-Organization will give jobscope to the workers how to handle and conduct themselves in
different situations/environment.

- example; managers in MCD train newly hired associates such as place suppliers
orders( how to communicate with suppliers).

- example;ensure customer satisfaction (help workers to take order in oeak hour,care about
quality and speed services).

b) Financial rewards

-Pay provided by the employer to an employees in return for their individual effort and
contribution,skills and work done. Example; Bonus,Allowance,Commission.

-Example; Coway, every different product they sell will get the specific commission.The
sales person who get the higher sells, the company will give a reward such as travel rewardds
fully sponsored by the company.

c) Favorable working conditions

-To make sure the workplace is safe and healthy. The workplace free from emotional abuse
such as sexual harrassment, discrimination. The company provide all the facilities.

-Ex; GOOGLE make use of its office space to create the happiest most productive workplace
in the world.

-Ex; SHELL, provide employee gym, lounge complete with ping pong and pool table and
their own shell select mart.

d) Excellent opportunities for development and advancement

-Organization give training to the employees to helps employees learn specific knowledge or
improve skill perfromance in their current role and focused on employee growth and future
performance.

-Ex; TM IT TECHNICIAN, goes to another company to solve problems like wifi.

e) Autonomy And Opportunities or Personal Initiatives

-Freedom of action and flexible to do the job when employee are given the freedom
associated with autonomy, job satisfaction rises.

-High job autonomy will increase motivation and happiness- decreasing employee turnover.

Ex;AIR ASIA does not limited the way of the work of their staff as long as it will bring
benefit to the company.

5. B2B and B2C

B2B B2C

-business to business -business to consumers

-sales of good or service to non-end-user -direct to end user consumer

customer.
-Decision maker one
-Decision maker multiple like CEO and
-Duration=Shorter time
manager
-Market size focused on large
-Duration=longer
-Example like LAZADA, ZALORA,
-Market size focused on small.
FASHIONVALET.
-Types of customers

I. To reseller- Iphone is doing sell by

numerous reseller

II. To business user-Intel sells processor

to Dell Company for Dell company
complete their computer/product.

III. To institutions-Apple sell their

product to University under a special
education discount.

6. Create your own creativity

i. Balance routine with change

-MCD change their drive thru system by asking the customer to park at the parking lot and
wait for the staff to takes order and deliver the meals to them.

ii. Take time to play

-Steve Job innovate mobile phone from keypad to touch screen after he get an inspiration
from movies that describe the power of technology in future.

iii. Optimism

-Wally Amos took cookies recipe from his aunty to continue her legacy by selling cookies
worldwide. He also gain his knowledge by studying culinary art for 2 years to make Famous
Amos popular like today.

iv. Courage

-Vivy Yusof start her business carrier at the booth by selling clothes but she keep looking
forward until she have her own boutique and also establish as store department in Alia.

v. Seek to creatively solve crises

-People nowadays no need to buy compass,calculator ,torchlight,maps and calendar because

they can find it in the smartphone device.

vi. Take responsibility

-KFC produced new menu every year to satisfied what customer need and wants. This
responsibility for them to take care what their love by producing new menu according to
customer preferences.

7. Sales management Process

-Process of effective management of a company sales force, involved 3 interrelated sets
Formulation, Implementation and Evaluation & Control.

1. FORMULATION

-consider the environmental factors forced by the firm.

-Ex; plan programs to strengthen its R&D department or train technical force sales.

*Sales manager must gain throughout understanding about seller and buyer in market.

2. IMPLEMENTATION

-Selecting appropriate sales personnel and designing & implementing approaches that direct
effort.

-Ex; Company held training programs to give new recruits experienced veteran necessary
skills like policies and procedures.

3. EVALUATION & CONTROL

-Developing methods for monitoring and evaluating sales force performance through
appropriate metrics.

-Ex; sales manager employ cost data in evaluation & control process

-Ex; to evaluate the actual behaviour of salespeople as well as their ultimate performance.
Sales Management in the 21st Century
Long-term relationships with customers
- Assessing customer value and high priority customers.
- Example coway , coway always do the services of their product at their customer house for
every month to give the better services.
- Ex: membership card (Watson)
Nimble and adaptable sales organizational structures
- To compete efficiently today, firm must be willing and able to customize the sales effort to
meet different customer preferred ways of doing business.
- Ex: Go Shop, consult about their need by preparing 4 method of payment for customer to
purchase which is cash on delivery, credit card, online banking and FPX. As their target market
is housewife who does not know much about IT.
- Ex: Tesco do online and offline market. Which customer can purchase the product at the
supermarket or thru online delivery
Fewer functional barriers within the organization
- Gaining greater job ownership and commanding to sales person
- Nestle set up a small booth in supermarket and give a tester of their product to customer for
tasting .the reason is to make the customer experience the product by their self.
Coaching sales management style
- Managers must create an environment that allows salespeople to their talents and abilities to
successfully secure, build and maintain relationship with profitable customer
- Ex: Starbucks training their employee especially the barista on how measure the quantity of
the ingredient in 1 cup. They also teach their employee to how to be friendly and smile to
their customer.
Leverage technology
- Sales people today have more types of technological tools at their disposal that even before.
- Ex: grab Company adding other apps which is grab food and make collaboration with other
company such as tealive chicken rice shop, the secret recipe and etc. for expect customer for
keep using their services.

Incorporate all activities and outcomes in performance evaluation

- Use poisoning
- Ex : mcd burger propesrity , KFC chicken
 SELLING SUCCESS FACTORS
 Listening skills
- Ex : Feedback (Mary Kay )

 Follow-up skills
- Ex : Watson card (collecting, notify promotion point )

 Ability to adapt sales style to situation

- Ex : Lazada (buy online)

 Tenacity – Nurturing customer relationships

- Ex : give free gift

 Well organized
- Showing good organization and set target
- Ex : neelofa event

 Verbal communication skills

- Speak & demo , be confident , body language and friendly

 Able to interact with people at all levels of an organization

- Can communicate to everyone

 Ability to overcome objections

- Rude customer > relax and understand

 Closing skills
- Give something to customer for remember
- Ex : skin food , saphora gift or give flyers & business card

 Personal planning and time management skills

- Gym trainer
OBJECTIVE OF SALES TRANING

i. Increase productivity

To provide valuable skills that will have a positive effects on selling performance. The
times its takes for new member of the sales force to archive satisfaction levels of
productivity

Ex;

ii. Improve Morale :

- Prepare trainees to perform tasks so their productivity increases as quickly as possible.

If sales trainees know what is expected of them, they will be less likely to experience
the frustrations that arise from trying to perform a job without adequate preparation.

- Without sales training, customers may ask questions that sales representatives cannot
answer, leading to frustration and lower morale. Evidence indicates salespeople who
are uncertain about their job requirements tend to be less satisfied with their jobs.

- Ex :

iii. Lower Turnover

- Younger, inexperienced salespeople are more likely to get discouraged and quit as a
result of not being prepared for the task.

- Turnover can also lead to customer problems, since many customers prefer continuity
with sales representatives. A customer who is called on by a sales representative who
suddenly quits may transfer business to other suppliers rather than wait for a
representative. Sales training, by leading to lower turnover alleviates such problems.
- Ex : caring pharmacist
-
iv. Improved Customer Relations
- Having the same sales representative call on customers on a regular basis promotes
customer loyalty, especially when the salesperson can handle customer questions,
objections and complaints. Customers place orders for their own benefits. Inadequately
trained salespeople are usually not able to provide these benefits, and customer relations
suffer.
- Ex :

v. Improve selling skill

- Improve selling skill can lead to improved performance in the field
Buying process

Characteristic of people who fail in business

Environmental impact external factors