Dissertation Proposal

An investigation into the impact of skills and techniques of sales management for leading sales force effectively in the global sales leader of automobiles Toyota

Contents Background section: Review of Literature Industry Background Research Aim, Research Questions and Objectives Research Methodology 1. Philosophy and Meaning of Research 2. Research Strategy 3. Significance of Research 8 9 11 11 12 14 3

4. Research Approach Timescale Resources References

15 16 18 20

Background section: Review of Literature In modern business-environment, increasing efficiency of sales is mandatory for all organizations. This demand is connected with several tendencies: faster introduction of new products and competitors in the market, growing complexity of products and the services more formed and exacting consumers base and propagation to sale of the alternatives channels. The companies which ignore these tendencies do it at own risk and same were practiced in Toyota. According to the research lead by Toyota management, most of sales force does not meet their quotas. Hunt, 1997 marketing segmentation strategy also supports this hypothesis. As such organizations with inefficient sales models experience unpredictability of productivity, a bad output on the sales channels, and decrease in profitability. On the contrary, those, with the best class of sales model achieve almost three times more than incomes, than on the average growth of executors and much faster in profitableness on new offers. The secret of high efficiency sales is by coordinating in each part of sales model with the target client which Toyota should possess. According to Kotler (2010), such orientation assumes development of sales strategy, creation of sales process which should lead by dynamic sale leader and sales pipeline managements with the client in mind. It is not possible to pin-point expectation, objective and the compensation unless process of sales is defined. Moreover staffing strategy is not possible to realize without sales force size and structure of the plan already on seat. It is visible, more often that the companies like Toyota with questions of sales efficiency wrongly consider, that repair of one component will solve this problem. For example, the new compensation plan can be considered as the decision when, actually, the answer consists in restructuring and updating of expectations of bad management of sales practice practiced in Toyota. (Anderson, 1985) Hussey, 1997 stated that the major first step in successful sales model consists in development of the strategy aimed at the target client. It helps sales force to direct each activity aside buying,

conservations and expansions of the right clients. Strategy of sales, their process of buying, as well as specific proposals value which will involve them should be stated as structure to target audience. The target structure includes the business information of the client problem, products, the revenue, geography, the budget of buying and the markets. Buying process specifies specific processes which follows the client in decision-making on purchase. This information will directly influence development of organizational sales process and initiate sales leaders of Toyota to lead their sales force. In other words, value of the offer articulates business problems of target client, how to be solved to achieve results. (Basu, 1985) Implementing a Sales Process Realization of standard process of sale is the second important step in high-efficiency of sales models. Successful process aligns sales force with buying pattern of target clients and provides a basis for all marketing activity. It has various components: expectations, size and structure, objectives and compensations, lead generation, and collateral sales. First sales leaders of Toyota should define their expectations from sales force and make sure, that they are included in all channels of sales. It is constantly updated so that best expectations have passed in the form of the description of a position. (Montoya-Weiss, 1994) It is important to study also the size and structure of sales force. During life cycle of the product, many elements of Process of buying, the price policy and requirements of the customer can change. Thus organization such like Toyota should estimate and change the size and structure of sales force from each new phase. Objectives and compensations are also an integral part of successful process of sales. Sales objective should be measurable, challenging still is achievable, and in conformity from revenue plan. At definition of objectives of the organization, Toyota must consider historical productivity, the market and possible territories, duration of sales cycle, and predicted growth. Anderson, 1985 supports, at the same time, not to forget to include members of a department of sales force during process: they can give the valuable information about perceived possibilities, competitive landscape, both territory, potential, and their participation facilitates buying. The program should owe compensations reward to top sales performer while average should be encouraged for improvement and underperformers to quit. Economic should conforms corporate objectives and include as constants and variable elements. Variations in conditions of a competition, dynamics of sales force, and the channel of strategy can easily make sales force compensation program outdated and inefficient. For this reason variations of objectives should be adapted by of the Toyota. (Kotler, 2006) It is also observed and investigated that is consistently carrying out of lead generations strategy which is one more important component sales force. At creation of lead development program, it should be considered monthly expectations income of the sales plan, units expected percent which move between stages of sales process and the life cycle of sales. Also it is very important for calculation of influence of lead development plan for development for increasing sales volume that allows defining effectively where to invest in the future programs. Collateral sales also play a major part during sale, but the most part of time of the organization not to use it on full advantage. Often sales force develops sale materials on ad hoc basis for satisfaction of their individual requirements. As the result, materials should not be leveled with the customer objective and specific stages of sales process as well as corporate messages can be perceived as inconsistent and error of clients. Good and effective collateral sales are current and easily available. Sales strategy is aimed at clients, leveled on buying process, passes conformity of the valuable offer. Represented in a printed or electronic type, collateral includes such elements i.e. Sell sheets, demonstrations of a product, pricing, and details of successful clients. Managing the Pipeline The third critical step of successful sales model is pipeline management, guarantees, that the organization is evolving sufficient marketing activity for achievement of the income plan. Effective

pipeline managerial processes are common language for discussion of a possibility of sales and apply to coordinated criteria of forecasting. They include formal, often, and in conformity of responses of activity on selling, revealing and elimination of bottlenecks, progress close strategy, and liquidations of unqualified possibilities. Sales managers depend on information for forecasts of movement of cash flow, budget, planning of manufacture, and sales force maintenance for dialogue with analysts. It is not surprising, that defective process of forecasting had far-reaching consequences, including decrease in confidence of investors. For the decision of this problem, Toyota should introduce pipeline management and models of forecasting which have allowed realistic comparisons of the sales plan and capacities of the organization to carry out it. Now, when the pipeline management is directly connected with process of sale, it is possible to predict and estimate each possibility of sale. Formal procedures at all levels of the organization exist for gathering, the analysis and expectations of management at each stage. Besides the company on a regular basis estimates forecasting effectiveness, as well as penalize for low productivity. These actions have raised accuracy of forecasts from 80 % up to 95 %. (MontoyaWeiss, 1994) Successful pipeline management and forecasting the program includes following components: the list of staff, training, sales management, the reporting and communications. Sourcing right sales force is the important element of pipe line management. It has direct influence on capacity of the organization to support a constant exchange of possibilities through the sales pipeline. The companies, as a rule experience of annual sales a turnabout on 20 %, and it borrows from 6 till 12 months for the new sales representative to become productive. (Toyota Remains Global Sales Leader, 2011) If the plan of sales forces staffing lags behind objective, this backlog will have influence on current and future parameters of sales. Effective model of staffing sales force economically levels strategy of hiring sales plan and consecutive process of revealing, an assessment and selection of candidates is applied.(Kotler, 2006) The effective program closes the gap between present and necessary skill of sets. It should have a component which follows also measures of influence of educational activity on works of the employee. In the last of interoperability of provider of technologies and professional services it was understood, those current skills of the existing sales organization do not meet the requirements of new model. It is investigated that if Toyota realize a 12-month's training mode that addressed sales management and sales force skill gaps and measure the influence of these gaps on productivity. As result sales in the competitive market would grow up by and the company profits would be lifted up profits. Model of sales management drives productivity by application of consecutive performance of both sales and pipe line managerial processes. The effective program facilitates performance management system, carries out process of the communications and provides performance of all key initiatives. The model of sales management is bonding which holds the organizations together. (Montoya-Weiss, 1994) Despite offers of some of the greatest spurs in the corporate history, Toyota have seen decrease in sales within last three months 2010, the manufacturer recorded sales deficit within a quarter when the industry had started showing signs of restoration. Whether Toyota can break this situation in 2011 yet did not see. The companys top executive, Jim Lents, said that issues are bottom out and internal measurements showed the brand restoration impulse. But the independent researches, lead in early December by non-profit magazine Consumer Reports, showed, that the perception of the Japanese brand was sharp has fallen off and was in "a statistical drawn game" with Ford Motor Company. Toyota growth of sales in 2011, up to about 8,6 million expects the report modest 2 %,the manufacturer has declared the last month. (Toyota Remains Global Sales Leader, 2011) Industry Background

The research will focus on how to lead sales forces effectively and how maximum output can be derived by sales leaders by using various skills and strategies of sales management to attain maximum output from their sales force. Often sales people are blamed for their poor performance whereas it is necessary for the organizations to evaluate their sales leaders also. Do they have enough capabilities and enough wisdom and can motivate their sales team? All these factors are critically investigated and highlighted in this research. This research will suggest various technical skills which Toyota "the world leader of sales in manufacture of cars" should carry out to increase their sales revenue which saw sharp recession of a sales volume in the USA market in last months of 2010, the manufacturer was able to hang on its crown, as global king the third year at a time. (Toyota Remains Global Sales Leader, 2011) Addition of sales of the Daihatsu and Hino affiliates had brought Toyota in total amount of sales, in 2010, to 8420 thousand. Though it was not upturn, the manufacturer originally predicted, global volumes still on 8 % that the Japanese giant of 30000 units advances its nearest competitor, long time leader in sales General Motors. (Toyota Remains Global Sales Leader, 2011). Still Toyota needs to revaluate its sales leadership strategy which has become criticism itself in management of Toyota. Research Aim, Research Questions and Objectives Objective of research is important as in scientific and unscientific areas. In our life new problems, events, the phenomena and processes occur every day. Practically implementable decisions offers and suggestions are necessary for solving new problems as and when arise. (Saunders, 2009) Scientists within the limits of research accept them and to find their reasons, the decision, an explanation and application. Namely, research helps us to understand the nature and the natural phenomena. Research is logical and regular search for new and the helpful information on specific subject matter. This research is search of decisions of scientific and social problems by the objective and regular analysis. It is search of knowledge that is opening of the latent truths. Here knowledge means the information on affairs. Objectives of research Though every research has the specific goal, we can think about objectives of research as concerning to number following wide categories: 1. To receive knowledge that represents the status of business. 2. For measurement of frequency of occurrence of various indicators/parameters. 3. For revealing tendencies and tendencies in business, that is, for an assessment of growth or expansion of potential of business. 4. For revealing the factors influencing or a determinant of business parameters. 5. To check up the importance and validity and reliability of results. 6. For checking of a hypothesis about a relationship of cause and effect between variables (such researches, as is known, as researches of checking the hypotheses of research). From the view of objectives of research, the prime objectives should be: -descriptive -co-relational -explanatory -exploratory

Descriptive research attempt to describe regularly situations, problems, the phenomenon, services or programs, or provides the information on, condition and development of the business, or describes the attitude to a question. Correlation research attempts to detect or establish existence of the attitude / interrelations between two or more aspects of a situation. Explanatory research attempts to find out, why and as there is a communication between two or more aspects of a situation or the phenomenon. Exploratory research is spent on investigation in area where a little that it is known or to study possibilities of carrying out of specific research of research. Hypotheses testing: After the analysis of data, the researcher is in a position for checking of hypotheses, if any, it has stated earlier. At the facts support of a hypothesis or they, happens, to the contrary? It is a usual question which it is necessary to answer while check of hypotheses. (Saunders, 2009) Various tests, such as F-test, Chi square test and the F-test, have been designed by statisticians for checking objectives. Hypotheses are maybe checked up by use of one or more such tests, depending on character and object of research inquiry. Checks of hypotheses will result either to accept a hypothesis or to reject. (Kothari, 1985) Research Methodology 1. Philosophy and Meaning of Research A research in popular speech is concerns to search of knowledge. It can also be defined as scientific and regular search of the appropriating information on specific subject matter. In fact, researches are art of scientific investigation. The philosophy of research itself can be understood by definitions given by various philosophers. Some people consider researches as movement, movement from known to not known. It actually travels of opening. All of us it possess vital instinct of inquisitiveness. When unknown facts confront before us, we are surprised, and our curiosity forces us to probe and achievements of full and full understanding which is not known. (Hussey, 1997) It is inquisitiveness of mother of all knowledge and the method, which person employs for nogenesis of any which is not known is named as research. Researches of the academic activity and in this quality term should be used in technical sense. According to research, Clifford Woody includes definitions and redefinitions of a problem, a formulation of hypotheses or offered decisions, gathering, ordering and an assessment of data, that does deductions and going conclusions, and, finally, carefully testing conclusions to define their conformity to development of a hypothesis. (Kothari, 1985) It is manipulation of things, concepts and symbols with objective of generalization to prolong, is proper or examinations regardless of the fact that the knowledge helps with construction of the theory and in an expert from item. Research thus is the initial contribution to an existing stock of knowledge of decisions for its promotion. This aspires true by means of research, supervision, comparison with experiment. Briefly, search of knowledge by objective and a regular method of a finding of the decision of a problem of research. The system approach concerning to generalization and development of the theory is too researches. As such "researches" the term concerns to the regular method consisting from uttering a problem, a formulation of hypotheses, gathering of the facts or data, the analysis of the facts and achievement of the certain conclusions or in the form of solutions in a direction interested by a problem or in some generalizations for the some people theoretical formulation. 2. Research Strategy There are two basic approaches to research, namely, the quantitative approach and the qualitative approach. Former includes generation of data in the quantitative form which can be subjected to

strict quantitative analysis in formal and rigid fashions. This approach maybe on conclusion, experimental and modeling approaches to research further are divided. The objective of conclusions of the approach to researches is formation of a database from which to deduce characteristics or attitudes of the population. It usually means, the review of researches where the sample of the population is studied (under doubt or is observed) to define its characteristics and then a conclusion, that the population has the same characteristics. (Saunders, 2009) The experimental approach is characterized much greater control over the research environment and in this case some variables to manipulate, to observe their influence on other variables. Simulation approach provides construction of the artificial environment in which the appropriating information and data can be received. It allows supervision of dynamic behavior of system (or its subsystems) in controllable conditions. Simulation is the term in a context business of social sciences of appendices concerns to work of numerical model which represents structure of dynamic process. In view of value of entry conditions exogenous variables and parameters variables, simulation is carried out for concept of behavior of process in time. Simulation approach may be useful at construction of models for understanding of the future conditions. The qualitative approach to research concerns value judgment of positions, opinions and behavior. A research in such situation for understanding of the researcher and impressions is function. Such approach to research generates results either to not-quantitative to the form or in the form of which was not exposed to the strict quantitative analysis. In general, methods focus-group of interview, projective procedures and deep interviews are used.

3. Significance of Research All progress is born from investigation. The doubt often is better, than self-confidence for it conducts to inquiry, and inquiry leads to the invention. The increase quantity of researches helps to achieve progress probably. Researches introduce scientific and inductive thinking, and it assists progress logical habits of thinking and the organization. (Kothari, 1985) Role of scientific researches in various areas of applied economy, whether it is connected with business or for economy as a whole, significantly has increased in present period. More and more complex character of business and authority has concentrated the attention to use scientific researches in the decision of operative problems. Research, as the help for economic policy, has got even greater value, as for the state and business. Research represents a basis for almost all directions of financial and strategic policies of Toyota. For example, budgets of the Toyota rest in particular, on the analysis of demands, sale and desires of people and from availability of deliveries for satisfaction of these demands. Cost of demands should be equal to probable incomes, and it is a field where researches are most necessary. Owing to researches we can develop alternative strategy and can study also consequences of each of these alternatives. Decision-making process not maybe a part of research, but research, undoubtedly, facilitates decisions of policies. Toyota should also derive various programs for work on all aspects of manufacture and distribution and the majority of them will be directly connected or indirectly to economic and financial conditions. Distress in workers, problems of a competition in industry, working conditions, trade-union activity, a problem of distribution, even the size and character of an infrastructure of the questions require through research. Thus, research is necessary in connection with distribution of resources of the country. One more area, in Toyota where research is necessary, is gathering the information about economic and social structures of the nation. Such information specifies that occurs in economy and what variations occur. Gathering of such statistical information at all is not a routine problem, but it includes various research problems. (Hussey, 1997)

4. Research Approach Descriptive against Analytical: descriptive researches reviews and the facts inquiries of various types are published. Prime objective descriptive researches are the description of a condition of Business as it exists now. In a social science and business-researches we often enough use the term backdating researches for descriptive researches. The main feature of this method is that the researcher has no the control over variables, it can inform only, that has occurred or that occurs.( Saunders, 2009) The majority a post factum of research projects preferences of people, or similar data are used for descriptive researches in which the researcher tries to measure such subject matters as, for example, frequency of purchases. Backdating researches also include attempts of researchers to detect the reasons, even when they cannot supervise variables. Investigative techniques are used in descriptive researches methods of inspection of all types, including comparative and correlation methods. (Kothari, 1985) In analytical researches, on the other hand, the researcher should use the facts or already existing information, and to analyze them for a critical assessment of a material. Timescale For writing a dissertation project in the limited time period, time management is necessary for successful completion. The chart shows weekly activities which were planned and scheduled for this dissertation.

Activities Week begining Appointment with research guide Review of literature Preparing of research proposal Research proposal submission Proposed topic presentation Feedback on research proposal Design of Questionnaire Pilot questionnaire

February, March, 2011 April, 2011 2011 27 3 12 21 25 29 3 10 19 24 30 5

May, 2011 9 16 23 29

June, 2011 2

Conduct of quantitative survey Preparing for focus group Conducting a focus group Data analysis Layout of Dissertation and first sketch Writing of dissertation and final draft work Fallback time for changes for fallback time Dissertation

Resources Resources are all these methods / methods which are used for carrying out of researches. Resources and methods, thus, concern to methods of researchers to use performance of research operations. Sometimes distinction is also done between research methods and resources. (Kothari, 1985) Type, resources and techniques 1. The library research (I) analysis of historical records by content-analysis, tapes and a film listening (II) analysis of documents by collections of statistical and manipulations and abstract managements, content of the analysis. 2. Field researches (I) not-participant direct supervision by behavioral scale, use an assessment of cards, etc. (II) Participant supervision by Interactional records, a possibility of use of tape recorders, a photo graphic techniques. (III) Mass supervision of record by mass behavior, interview to use of independent observers in public places. (IV) Mail questionnaire on revealing social and economic position of respondents. (V) Opinionative by using attitude scales, projective procedures, using sociometric scales. (VI) Personal interviews by the interviewer using the detailed chart from the open and closed questions. (VII) The focused interview by the Interviewer brings to a focus to the given experience and its consequences. (VIII) Groups interview by small groups of respondents interrogated at the same time. (IX) Telephone interrogation, it is used as a method of inspection for the information and for demanding to opinion; it can be used also as the subsequent activity in the questionnaire. Life history and case study by cross-section section data gathering for intensive analysis, longitudinal data collection of intensive character. (Saunders, 2009) 3. Laboratory researches, (I) small research group of accidental behavior to play a role of the analysis with use of audio-visual arrangements of record, use of observers, etc.

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Toyota Remains Global Sales Leader 2011, viewed 25 May, 2011, http://www.thedetroitbureau.com/2011/01/toyotaremains-global-sales-leader/