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ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 49: Sales Management (5131)

Submission date December 15th, 2023 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Nguyen Khanh Phong Student ID GBD210043

Class GBD1009 Assessor name Katherine Labrador Batac

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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Table of Contents
LIST OF TABLES & FIGURES...............................................................................................................................4
1. Introduction........................................................................................................................................................5
1.1. Organizational overview:...........................................................................................................................5
1.2. Sales performance:....................................................................................................................................5
2. Main contents.....................................................................................................................................................6
2.1. Key aspects of sales management..............................................................................................................6
2.1.1. Sales planning.....................................................................................................................................6
2.1.2. Setting Sales Targets..........................................................................................................................6
2.2. Method of selling........................................................................................................................................6
2.2.1. B2B (Business to Business).................................................................................................................6
2.2.2. B2C (Business to Customer)..............................................................................................................7
2.2.3. Mazda’s method of selling..................................................................................................................7
2.3. Sales Reporting...........................................................................................................................................7
3. Evaluation of Sales Structures...........................................................................................................................7
4. Sales channels.....................................................................................................................................................8
4.1. Definition.....................................................................................................................................................8
4.2. Concepts of sales channels (Jobber & Lancaster, 2015)..........................................................................8
5. Products............................................................................................................................................................10
5.1. Overview of the Mazda MX-30 R-EV.....................................................................................................10
5.2. Unique Selling Point.................................................................................................................................10
5.3. Applying Sales Attributes in the Sales Proposal....................................................................................11
5.3.1. Open the sale.....................................................................................................................................11
5.3.2. Demand Identification......................................................................................................................11
5.3.3. Presentation and Demonstration.....................................................................................................11
5.3.4. Deal with Objection..........................................................................................................................11
5.3.5. Negotiation........................................................................................................................................11
5.3.6. Closing the sale.................................................................................................................................12
5.3.7. Follow-up...........................................................................................................................................12
6. Conclusion.........................................................................................................................................................12
7. References.........................................................................................................................................................13

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LIST OF TABLES & FIGURES
Table 1: Sales performance of Mazda in FY 2023.........................................................................................................5

Figure 1: Mazda............................................................................................................................................................5
Figure 2: A Mazda's showroom in Vietnam..................................................................................................................9
Figure 3: THACO's showroom in Son Tra, Danang........................................................................................................9
Figure 4: The Mazda MX-30 R-EV...............................................................................................................................10

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1. Introduction
1.1. Organizational overview:

Mazda Motor Corporation, a Japanese automotive manufacturer, has a rich history dating back to 1920.
Initially founded as Toyo Cork Kogyo Co., Ltd., the company initially focused on manufacturing cork
products before transitioning to vehicle production. Mazda is known for its innovative engineering,
including the development of the rotary engine. The company has a global presence with manufacturing
facilities and sales networks in various countries, aiming to create vehicles that deliver an enjoyable
driving experience. Mazda's brand philosophy is "Zoom-Zoom," emphasizing creating vehicles that
deliver an exhilarating driving experience.

Figure 1: Mazda

In this report, the main concepts of selling and attributes of a skillful seller will be examined and through
the empirical findings, there will be a proposal for one of Mazda’s latest products, and describe the process
of selling a product to customers.

1.2. Sales performance:


Table 1: Sales performance of Mazda in FY 2023

In the financial summary of Mazda Motor Corporation in the fiscal year of 2023 (started from April 2022
to end of March 2023), it can be seen that the Net Sales of Mazda has a substantial increase with
3,826,752,000 yen, which is a 22,6% rocket jump compared to the previous fiscal year. This is an indicator
for a ground-breaking sales performance of Mazda thanks to the rapid recovery of the world in post-

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pandemic. Mazda is forecasted to reach a number of 4,500,000,000 yen of Net Sales at the end of the next
fiscal year. The North America is the largest market of Mazda with ¥1,636,023,000 net sales from outside
customers.

2. Main contents
2.1. Key aspects of sales management
2.1.1. Sales planning

Broadly, strategy involves allocating resources for organizational goals (Snow & Hambrick, 1980).
Sales planning, deciding how to allocate scarce resources for effective customer relationship
management (Campbell-Hunt, 2000; Johnston et al., 2009), demands thoughtful effort and benefits in
the long run (Atkinson, 2012). Recognizing its role in providing direction, sales planning starts when a
destination is defined. However, the author emphasizes that dynamics change during strategy
implementation, requiring continuous examination and adaptability due to unforeseen events. This
underscores the need for constant refinement to navigate the evolving sales landscape (Atkinson,
2012).

Mazda is committed to advancing its brand value through proactive measures, emphasizing
engagement with customers and stakeholders. Termed "Brand Value Management" and initiated in
2013, this sales planning of Mazda aims to cultivate trust and support, integral to business
development. In the Structural Reform Stage 2, a business plan since FY March 2017, Mazda
prioritizes global sales and network enhancements to emotionally connect with customers in over 130
countries. Departing from conventional communication, Mazda shifts focus from a marketing tool to
an integral aspect of daily operations. This strategic evolution aligns with the iconic "Zoom-Zoom"
slogan, symbolizing Mazda's commitment to delivering exhilarating driving experiences and fostering
lasting emotional connections (Mazda, 2022).

2.1.2. Setting Sales Targets

In analyzing business situations, uniqueness requires consideration of quarterly revenue factors:


seasonality, recurring streams, contracts, and cost structures. Economic factors and industry dynamics
are vital, especially in volatile markets. Evaluating revenue per representative, considering
performance and share of wallet, aids in setting realistic sales targets. Soliciting feedback from sales
reps captures field insights. Implementing a rolling forecast enhances forward visibility and
adaptability. Aligning revenue expectations with sales capabilities, exploring transformative
capabilities, is crucial for improved sales performance and informed decision-making. (Anaplan,
2018).

THACO, Mazda's authorized distributor, has focused on establishing an extensive distribution


network, creating over 30 showrooms and dealers that adhere to Mazda's 3S standards. These are
strategically positioned across provinces, employing a systematic business strategy to meet consumer
expectations. THACO aims to elevate Mazda's brand image by incorporating Japan's current brand
identity in a more luxurious and sophisticated manner throughout the distribution system, covering
products, services, and display spaces. This approach is designed to offer consumers exceptional
experiences. Additionally, the success of the Mazda brand is attributed to the effective and
distinguished customer care system (Mazda, 2021).

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2.2. Method of selling
2.2.1. B2B (Business to Business)

B2B involves businesses interacting directly, encompassing suppliers, distributors, agencies, and other
companies in transactions, collaborations, and information exchanges (Vagro & Lusch, 2011),
(Turban, et al., 2015).

2.2.2. B2C (Business to Customer)

B2C can be defined as an exchange between producers and end consumers of goods, services and
explicit knowledge about goods and services (or information about consumers) for available
consumption in return for the actual or potential payment of money (Vagro & Lusch, 2011).

2.2.3. Mazda’s method of selling

Mazda primarily operates in the B2C (Business to Consumer) sector, focusing on direct sales to
individual car buyers. This involves engaging customers through dealerships and tailored marketing
efforts to meet their preferences. The Internet Marketing Department, established in March 2000,
introduced online services like a price estimate tool and a comprehensive used vehicle database. The
goal is to enable customers to purchase all passenger models directly through the Internet (Mazda,
2000). Although Mazda may have B2B relationships, its core business centers around serving the
consumer market in the automotive industry, solidifying its classification as a B2C-oriented company.

2.3. Sales Reporting

A sales report, or sales analysis report, provides a comprehensive record of a company's sales
activities during a specific timeframe. It offers sales managers an overview of the firm's sales
operations, depicting patterns in sales volume over time and insights into the sales funnel stages.
Additionally, it furnishes analytical data on the performance of the entire sales team's
leaders(Kakovkina, 2021).

In 2022, Mazda's annual vehicle sales reached 300,000, marking an increase from the previous year.
Monthly sales remained steady at an average of 25,000 vehicles. June and December recorded the
highest monthly sales, each reaching 30,000 units, while February and September marked the lowest at
20,000 vehicles per month. Notably, the Mazda CX-5 and Mazda 3 models constituted 40% and 30%
of total sales, emphasizing their popularity among buyers (Mazda, 2022).

3. Evaluation of Sales Structures

Sales force structure is a critical factor in sales force effectiveness, identified through observations of
salespeople and organizations (Zoltners, et al., 2008). Traditionally focused on field sales, structures now
include inside sales teams, aided by technological advancements (Thaichon, et al., 2018). This evolution is
driven by improvements in automation and business intelligence, allowing businesses to adapt to changing
consumer habits. Three main structures of salesforce have been identified:

 Geographical structure
Geographical structure is the most fundamental structure of a sales force. Salespeople are
assigned to sales territory based on a list of customers or connected geographical areas under

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this framework (Zoltners, et al., 2001). The simplicity of this type of organization is one of its
advantages. Each salesperson is assigned a region and is solely responsible for sales
accomplishment. Their near closeness to consumers stimulates the formation of personal
friendships, which improves sales effectiveness. Furthermore, as compared to other
organizational structures, such as product or market specialization, travel expenses are likely to
be cheaper (Jobber & Lancaster, 2015).

 Product specialization structure


While a generalized sales force sells all products to all customers, a specialized sales force
sells only certain products to certain customers (Madhani, 2015). Salespersons specializing in a
product, market or activity, leverage their focus in increasing their effectiveness. The
specialization of a sales force allows accommodation of heterogeneity/complexity without
compromising on effectiveness. As a result of this, they are able to generate a higher level of
sales as a ratio against calls made (Husain, 2018).
 Customer-based structure
A company structures its sales force along customer or industry lines by using a customer (or
market) sales force structure. Separate sales forces can be established for different industries,
for serving present customers versus finding new ones, and for handling significant clients
against ordinary customers. Organizing the sales staff around clients can assist a corporation in
developing stronger relationships with key customers (Kotler & Armstrong, 2018).

Mazda's sales and distribution strategy integrates geographical, product, and customer-oriented structures.
Authorized dealerships, acting as crucial intermediaries, form the cornerstone of Mazda's distribution
network. These privately owned entities facilitate direct sales to end consumers and serve as the primary
interface between Mazda and customers. Despite its effectiveness, Mazda's structure encounters challenges
in coordinating across diverse regions and products, potentially leading to inconsistencies. Dependency on
dealerships may result in varying customer experiences and regional entity costs, necessitating careful
management to maintain cost-effectiveness and mitigate drawbacks.

Mazda should create regional offices to boost presence and sales support in specific areas. These entities
conduct market research, execute advertising, engage in promotions, and build customer relationships.
Standardized dealership training enhances service consistency. Monitoring regional costs and optimizing
processes improves overall cost-effectiveness.

By adopting a combination of geographical, product, and customer-based structures, Mazda creates a


comprehensive and adaptable sales and distribution framework that allows the company to effectively
navigate diverse markets and cater to the varying needs and preferences of its customer base.

4. Sales channels
4.1. Definition

A sales channel is the path that products move through from supplier to end-user during the selling
process. When the commodities sold are incorporated into a production process, the channel can be
direct. The finished goods may subsequently be sold through a different channel.

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4.2. Concepts of sales channels (Jobber &
Lancaster, 2015)
 Direct Distribution: In direct distribution, the manufacturer bypasses intermediaries or
middlemen and directly sells and delivers products to the end-customers or consumers.
 Selective Distribution: In selective distribution, the manufacturer chooses a limited number of
intermediaries based on specific criteria, such as special abilities or facilities, to market the
product more effectively.
 Intensive Distribution: In intensive distribution, the manufacturer aims for maximum
exposure by selling through as many outlets as possible. The emphasis is on widespread
availability rather than personalized service.
 Exclusive Distribution: In exclusive distribution, the manufacturer restricts the number of
dealers or intermediaries who can sell their products. These chosen distributors are expected to
meet specific requirements, such as stockholding and after-sales service standards.

Figure 2: A Mazda's showroom in Vietnam

Mazda, like other automotive manufacturers, has a network of authorized dealerships in various regions to

ensure accessibility to customers. They sell vehicles in major cities like Ho Chi Minh City and Hanoi, as
well as emerging cities like Da Nang, Hue, Nghe An, Thai Nguyen, Quang Ninh, Binh Duong, Dong Nai,
and Lam Dong. Mazda has also adopted online sales for faster and more time-saving, either directly
through their official websites or through online platforms in collaboration with dealerships (Thinh, 2020).
Figure 3: THACO's showroom in Son Tra, Danang

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In Vietnam, Mazda adopted an exclusive distribution channel through a selective partnership with
THACO, a reputable local automobile manufacturer. This strategy allows Mazda to focus on collaborating
with capable and strategically located distributors. THACO has established six Mazda dealerships meeting
global standards in various regions, expanding Mazda Vietnam's network to 79 sales locations and 69
service centers, creating a convenient and extensive national sales network. (Thinh, 2020).

5. Products
5.1. Overview of the Mazda MX-30 R-EV

Currently, modern and advanced technologies are developing strongly around the world, not only
tools and machinery but also electric vehicles are gradually developing. Electric vehicles have been

developing in Vietnam. In Vietnam, with the development of the market, Mazda has launched the
Mazda MX-30 model - officially named Mazda MX-30 R-EV, an upgraded version of the small
electric SUV model MX-30.
Figure 4: The Mazda MX-30 R-EV

5.2. Unique Selling Point

The unique selling point of Mazda in this model is that this is the hybrid fuel car. Unlike its
competitors, Mazda's newest MX-30 model is equipped with operating technology with the appearance
of a 2.0-liter engine block combined with SkyActiv-G technology. The Mazda MX-30 R-EV is a plug-
in hybrid vehicle (PHEV) unlike any other. Like a battery-electric vehicle (BEV), the wheels are
driven exclusively by electric motors. However, unlike other PHEVs, the petrol engine doesn't power
the wheels directly, but acts as a generator to charge the battery. That means you can enjoy
uninterrupted electric propulsion wherever you go. Using a combustion rotating motor operates at a
fixed speed to recharge the electric battery. Without mechanical connection between the engine and the
wheels, the rotary unit simply acts as a generator, ensuring the MX-30 R-EV always drives via the
electric motor to deliver a seamless EV driving experience (Mazda, 2023).

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5.3. Applying Sales Attributes in the Sales
Proposal
5.3.1. Open the sale

Because first impressions may influence later opinions, it is critical to examine how to produce a
favorable initial response. Buyers expect salespeople to present themselves and behave professionally
(Dolan, 2002), (Jobber & Lancaster, 2015). Customers entering Mazda will be greeted politely, as first
impressions are extremely important. The salesperson will welcome the customer with a smile and a
handshake, and if the consumer is unfamiliar with the employee, it is polite to identify themselves and
the company they represent. Employees are typically expected to comply. This may assist you in
developing a close contact with the buyer. Furthermore, the staff will inquire about the consumers'
desires and advise them.

5.3.2. Demand Identification

Salespeople aim to understand customers' difficulties and needs to market the best model for their
needs. They use a needs analysis method, assuming a question-and-listen stance and using open
queries to encourage buyers to communicate their problems and needs. This approach helps them
propose solutions using their company's products (Moncrief & Marshall, 2005), (Jobber & Lancaster,
2015). The personal selling process involves understanding customer demands and responding to
inquiries about the Mazda MX-30, highlighting features like the hybrid SkyActiv-G fuel technology
for improved fuel economy and emissions.

5.3.3. Presentation and Demonstration

The key to this task is to recognize that customers buy benefits and are only interested in product
characteristics to the extent that they give the benefits that the customer seeks (Jobber & Lancaster,
2015). The personal selling process for the Mazda MX-30 should focus on presenting the product's
advantages on two levels: those acquired by purchasing a specific product type and those obtained
from a specific supplier. Combining features and advantages using phrases like "that means it," "the
outcome is," and "that enables you" can help reduce resistance. To reduce resistance, reference selling,
demonstrations, guarantees, and trial orders can be used to gain customers’ trust.

5.3.4. Deal with Objection

Many objections are merely buyer statements of interest. The buyer is requesting more information
because they are fascinated by what the representative is saying. The issue is that the buyer is still not
convinced. Objections call attention to the concerns that are significant to the customer (Jobber &
Lancaster, 2015). During a personal sale, a potential buyer may have questions or reservations about
the Mazda CX-30, such as the price, battery life, or charging infrastructure. Mazda Vietnam is asked to
equip sales workers with the training they need to deal with these issues head on by providing detailed
and reassuring information about the vehicle.

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5.3.5. Negotiation

In some selling environments, the agent or sales team has some control over the conditions of the
transaction. Negotiation may so become the sales process. The buyer's needs, the supplier's
competitors, and knowledge of the buyer's business and the pressures on them should all be estimated
(Jobber & Lancaster, 2015). When a potential client displays an interest in purchasing a Mazda CX-30,
Mazda Vietnam's sales team should be drilled to engage in discussions with the customer to establish
price choices and financing that will match their demands and budgets.

5.3.6. Closing the sale

Following the conclusion of the negotiation, the final stage is to finalize the payment, and
documentation, and if necessary, arrange for the delivery of the product to the customer (Zoltners, et
al., 2001). To guarantee that consumers are happy with their Mazda purchase experience, salespeople
must be clear about costs and any additional expenses.

5.3.7. Follow-up

This final stage in the sales process is required to guarantee that the customer is satisfied with the
purchase and that there are no issues with delivery, installation, product use, or training (Jobber &
Lancaster, 2015). Mazda’s sales representatives in Vietnam have been trained to implement the follow-
up call or contact through email to gain feedbacks from the customers, and if any situation arises, they
will be able to deal with it.

6. Conclusion

The main objective of this report is to inform essential stakeholders about the sales performance of the
previous year and to formulate a strategy for consumption development in the upcoming year. This study
report provides insights derived from a comprehensive grasp of sales management, structure, and methods.
Mazda has devised strategies to enhance its future market standing by leveraging insights from sales
management and structure. The company has also introduced new Mazda products to customers,
incorporating techniques and sales capabilities aimed at effectively engaging and earning customer trust.
Furthermore, the report delves into an analysis of the company's present situation within the significant
economic context.

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7. References
Anaplan, 2018. How to Set and Manage Realistic Sales Targets (5 Steps). [Online]
Available at: https://www.anaplan.com/blog/how-to-set-and-manage-realistic-sales-targets/
[Accessed 12 December 2023].

Atkinson, F., 2012. Sales Planning. 1st ed. London: Bookboon.

Campbell-Hunt, C., 2000. What Have We Learned about Generic Competitive strategy? a meta-analysis. Strategic
Management Journal, 21(2), pp. 127-154.

Dolan, R. J., 2002. Emotion, Cognition, and Behavior. Science, 298(5596), pp. 1191-1194.

Husain, S. R. V., 2018. Sales Force Structure: a Review. The Marketing Review, 18(3), pp. 227-242.

Jobber, D. & Lancaster, G., 2015. Selling and Sales Management. 10th ed. Harlow: Pearson.

Johnston, M. W. et al., 2009. Sales Force Management. 9th ed. Boston: Mcgraw-Hill.

Kakovkina, V., 2021. What is Sales Reporting?. [Online]


Available at: https://nethunt.com/blog/what-is-sales-reporting/
[Accessed 12 December 2023].

Kotler, P. & Armstrong, G., 2018. Principles of Marketing. 17th ed. Harlow: Pearson Education Limited.

Madhani, P. M., 2015. Managing Salesforce Compensation during the Growth Stage. Compensation & Benefits
Review, 47(5-6), pp. 240-254.

Mazda, 2000. Mazda Understanding Customers Needs. [Online]


Available at: https://www2.mazda.com/en/investors/library/annual/1999/s03/s3_03.html
[Accessed 12 Decomber 2023].

Mazda, 2021. MAZDA CX-30: “CHALLENGE” THE TECHNOLOGY RACE IN THE URBAN SUV SEGMENT. [Online]
Available at: https://mazdamotors.vn/news-and-events/news-and-events-content/news-and-events/mazda-cx-30-
thach-thuc-cuoc-dua-cong-nghe-o-phan-khuc-suv-do-thi
[Accessed 14 Dêcmber 2023].

Mazda, 2022. MAZDA: Becoming a Brand with Which Customers Feel an Emotional Connection | Special Features.
[Online]
Available at: https://www.mazda.com/en/archives/special/2016_02/
[Accessed 12 December 2023].

Mazda, 2022. MAZDA: Mid-Term Management Plan Update and Management Policy up to 2030. [Online]
Available at: https://www.mazda.com/en/about/mid-term/
[Accessed 12 December 2023].

Mazda, 2023. MAZDA MX-30 R-EV: CRAFTED IN JAPAN: A PLUG-IN HYBRID WITH A BUILT-IN CHARGING STATION.
[Online]
Available at: https://www.mazda.co.uk/cars/mazda-mx-30-r-ev/
[Accessed 14 DÊcmber 2023].

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Moncrief, W. C. & Marshall, G. W., 2005. The Evolution of the Seven Steps of Selling. Industrial Marketing
Management, 34(1), pp. 13-22.

Snow, C. C. & Hambrick, D. C., 1980. Measuring Organizational Strategies: Some Theoretical and Methodological
Problems. The Academy of Management Review, 5(4), pp. 527-538.

Thaichon, P. et al., 2018. Hybrid Sales Structures in the age of E-commerce. Journal of Personal Selling & Sales
Management, 38(3), pp. 277-302.

Thinh, T., 2020. Expanding its distribution network, Mazda meets customer expectations. [Online]
Available at: https://dantri.com.vn/o-to-xe-may/mo-rong-mang-luoi-phan-phoi-mazda-dap-ung-ky-vong-cua-
khach-hang-20201112104438431.htm
[Accessed 14 December 2023].

Turban, E. et al., 2015. Electronic Commerce : a Managerial and Social Networks Perspective. 4th ed. New Jersey:
Pearson Prentice Hal.

Vagro, S. L. & Lusch, R. F., 2011. It's All B2B…and beyond: toward a Systems Perspective of the Market. Industrial
Marketing Management, 40(2), pp. 181-187.

Zoltners, A. A., Sinha, P. & Lorimer, S. E., 2008. Sales Force Effectiveness: a Framework for Researchers and
Practitioners. Journal of Personal Selling & Sales Management, 28(2), pp. 115-131.

Zoltners, A. A., Sinha, P. & Zoltners, G. A., 2001. The Complete Guide to Accelerating Sales Force Performance. 1st
ed. New York : AMACOM.

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8. Appendix

Appendix 1: The PEST analysis of Mazda in Vietnam’s market:

PESTLE of Mazda
- Stable political environment
Political - Supportive government policies
- Low political risk

- Rapidly growing economic


- Large and growing middle class
Economic
- Increasing disposable income
- Favorable demographics for auto market

- Increasing demand for personal transportation


due to urbanization
Sociocultural
- Cultural preferencing for car ownership
- Demand for eco - friendly vehicles

- Advancement driving innovation


Technological - Growth in electric and hybrid vehicles
- Adoption of connected car technology

- Growing concerns about air pollution and


degradation
Environmental
- Increasing regulations on emission and fuel
efficiency

- Taxes and regulations on imported cars


Legal - Favorable policies for locally assembled car
manufacturers.

Appendix 2: Presentation: “Company profile of Mazda”

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