MIDLANDS STATE UNIVERSITY
FACULTY OF COMMERCE
DEPARTMENT OF BUSINESS MANAGEMENT
NAME:
MAVHIKI PEDZISAI
REG NUMBER:
R11404J
MODULE:
MM202
MODE OF ENTRY:
VISITING
LEVEL:
2.1
LECTURER:
MRS NGWENYA
ASSIGNMENT
With the aid of examples, discuss how micro and macro environmental factors
have affected sales force management from 2000 to date.
Marketing environment is defined as forces and actors that affect the company’s
ability to develop and maintain successful transaction and lasting relationships with
its target market. According to Woodruffe (1995) there are two environments of
business which are............ This write up is going to discuss how the micro and macro
environmental factors have impacted the sales force management from 2000 to date in
Zimbabwe. Salesforce is the group of employees involved in the selling process.
Salesforce management is implemented to manage company’s interactions with
customers, clients and sales prospect.
Since year 2000 macro – environment was not conducive for a number of firms in the
country. The macro-environment consists of the factor that salesforce has no control
over such forces are depicted by the PESTELI frame where:
P
-
Political factors
E
-
Economics factors
S
-
Social
T
-
Technological
E
-
Ecological
L
-
Legal
I
-
Interaction
Some these forces threatened the viability of a number of firms in the country
especially between year 2000 and 2003. Between this period there was political unrest
or instability which its adverse effects were so disastrous on all business activities.
Kotler (1994) argues that marketing decisions are affected by the political
environment. In year 2001 there was land invasion. Scores of ruling party supporters
forcibly entered vast tracts of commercial agricultural land belonging to mostly white
commercial farmers. This weakened bilateral and unilateral relationship of the
country with other countries, in the European Union. The image of the country at the
world market was
bad to an extent that the exports of the country faced low
demand.1mark This was a challenge to the salesforce since buyers for exports were no
where to be found. It was really difficult to forecast the sales due to such poor
relationships.
Political philosophies such as the indigenous programme meant to empower the black
people through land reform and having 51% shares in foreign companies disrupted
production and exports. A number of companies scale down operations due to the
indigenisation programme. A decrease in exports therefore means lack of funds to the
sales force. Lack of funds for travel, advertising impacted greatly on the sales volume
of companies like Hippo Valley Estates Limited2marks. Such processes like order
management became difficult with customers in other countries like Namibia.
Since year 2000, the economic factors affected the sales force greatly. Jewel (2000)
says the economic factors consists of such factors as government policy, interest rates,
taxation level, inflation level, disposable income and the exchange rate.
The recession which Zimbabwe experienced between year 2000 and 2009 saw costs
of borrowing increasing to an extent that investment fall. A fall in investment further
fuelled problem as output declined greatly. Companies like OK Zimbabwe, TM,
Nyore-Nyore between this period were operating below capacity (below 40%
capacity).
OK
Grand
Challenge
for
example
was
temporarily
stopped
between??????????. The company interactions with customers of clients was affected.
High levels of inflation which reached billions percent reduced demand for the
products. People’s incomes were eroded by inflation and direct tax in the country.
Products faced a decrease in demand and money for advertising through the media
Newspapers, radio was not available. 1mark
Sales force management process includes training, information technology, control,
coaching. All these were not done between this period due to lack of funds. Interest
rates were so high such that borrowing was so difficult. Companies in Zimbabwe
could not manage to invest in modern technology. OK for example could not manage
to invest in Bar Code readers. Workshops for training workers on good customer care
were suspended. There was no funds as well to educate customers on new products
launched. All these augment the problem of poor customer relationships. 1mark
Shortage of foreign currency in Zimbabwe saw a number of companies like Triangle
Private Limited failing to automate its systems. This caused lack of proper
communication between departments like Marketing department, sales department,
Human resource 1mark. The end result was to irritate????? customers as all these
departments contact the same customer for the same purpose. It was difficult due to
lack of firms in Zimbabwe to fully integrate departments due to lack of money.
The revolutionary changes in technology between 2000 and 2012 contributed a lot in
salesforce management in the country. According to Woodruffe (1995:67) “Many
services have arisen directly from advances in technology, computerised, training or
customer purpose, even computer dating. The use of bar-code readers in
Supermarkets like OK Zimbabwe is a result of technological developments. The use
of the internet to contact buyers is a result of these changes. E-selling and Teleselling
was unaffordable by firms in Zimbabwe. This was because the country was in
recession. Companies could not afford make investments in modern technology. As of
now the sales force can do their adverts through the internet. A sales person in
Zimbabwe can discuss with a customer in Dubai on products on offer.
2marksTransport costs, time are saved. Delivery of the products is also sped. It is
worth noting that the sales force can do it adverts on the internet.
Furthermore company need to do much investment in new technology if it wants to be
in good relationship with its customers since we are living in a world of technological
competition. This also make work of the sales force easy. Kotler (1994:698) argues
that “electronic mail allowed the sales reps to rapidly receive and send messages to
others.” Various business forms such as territory work plans and sales call reports
could be filled out faster and sent electronically. Economic downturn in Zimbabwe
could not allow that. There was no such funds in Zimbabwe.
The legal environment focuses on legislation as the regulating institution
promulgating and enforcing law, rules, statutory enactments like licencing of shops,
company registration requirements and procedures, devaluation, revaluation of
currency and export procedures (Woodruffe 1995). Jewel (1995”98) argues that
legislation places a constraint, on business, limiting what it can do or compelling to
undertake actions that would not otherwise perform. Legal constraints adds to costs of
operation. Between year 2000 and 2009, devaluation of the currency erode profits of
the company. Companies capability to hire / employ qualified sales force was
reduced. This greatly affects the control process for establishing standards, measuring
actual performance, comparing measured performance against established standards
and taking corrective action. 2marksThe sales managers could not well adjust their
actions based on overall process
The concern by the government for the companies to protect the natural environment
contributed much to costs of production. According to Jewel (1992) the natural
environment is the environment from which a firm gets its resources. The government
of Zimbabwe encouraged companies in the country to identify whether the resources
they tape are renewable or non-renewable and use sustainable means of taping them.
Companies in Zimbabwe were charged high corporate tax, carbon tax and were given
pollution quota. Within the period, decrease in outputs, leads to shortage of funds to
deploy the sales forces strategically in order to push sales. 1markKotler (1995) says
“alack of funds cause poor remuneration to sales representatives.”
The micro environmental factors also affected the sales force management from 2000
to date in Zimbabwe. Woodruffe (1995) view the micro-environment as the internal
environment of the organisation. The internal environment is comprised of top
management, middle management, workers’ committee, organisational resource,
business, management decisions, customers, suppliers and distributor. The major
challenge which was encountered by a number of firms like Unilever is lack of
experienced qualified personnel. Qualified personnel move to other countries like
South Africa, Australia for greener pastures. Staffing organisations with right
personnel within the period was do difficult.
Recruitment and selection of employees (sales force) were also affected by lack of
money. Training and development of marketers were no longer carried out. Workers
sales force motivation was so low because of low remuneration. It was also difficult
to find distributors of products. Within the period there was high inflation and fuel
was a problem in the country.
Though the marketing environment was not conducive between year 2000 to 2009
Feb....., the economic activities improved significantly due to dollarisation. The
political marriage of thee major parties saw the micro and macro – environment
improving. This is the right time for sales force to market the products effectively and
efficiently. 2marks
REFERENCES
Woodruffe, H. (1995) Service Marketing: London: Pitman.
Kotler, P. (1994) Marketing Management: New Jersey: Prentice Hall.
Engel, F.J. et al (1991) Promotional Strategy: Managing the Communication Process.
New York: IRWIN.
Jewel, B. (2000) Business Studies: London: Longman.2marks
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