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3 Evaluate the role of motivation, remuneration and training in sales management

3 Evaluate the role of motivation, remuneration and training in sales management

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Motivating employees can increase productivity and improve quality. Because when

employees are motivated, they will feel more comfortable, mentally motivated and work

harder. According to Anne M. Malcachy, "When employees are motivated, they will

believe that the manager considers them to be a complete person, not just an employee.

Satisfy employees just like customer satisfaction. "

In case of Sabeco, the manager understands the importance of motivation and does well.

Sabeco has relied on Maslow's hierarchy of needs for motivation and, in particular, on

level 1: Physiological and Level 4: Esteem. In order to satisfy and motivate the

employees, Sabeco focuses on the basic tasks such as creating a friendly working

environment, comfortable spaces, appropriate salary and bonus, etc.

For Sabeco, motivation is divided into two aspects: extrinsic and intrinsic.

+Intrinsic: Compliments is one of the things that motivates you. People always want to

receive compliments. So, for the managers of Sabeco's sales staff, after the staff

completed the task, give them the sincere compliment. This will help them to make more

effort, hard work and good work done in the future.

+Extrinsic: In addition to mental stimulation, motivation also arises from external

material. For any employee at work, they pay close attention to salaries and bonuses. So,

for Sabeco, their bonus policy is based on the employee's ability to work and what they

did for the company. Each person has different circumstances, so the company has many

incentive policies to satisfy employees, motivate them to work. There are employees who

are financially rewarded as cash, gifts, etc. There are employees who do not have

financial problems, but they want to be recognized for their ability and contribution to the

job. Therefore, for salespeople who achieve sales exceeding their sales targets, they get

the "Employee of the month" certificate and get the recognition of other employees and

superiors. In addition, these certificates will also help their future work.

For Sabeco, the promotion activities for employees are divided into tangible and


+Tangible: Cash rewards or trips, homes, and cars are great rewards. Therefore, those

who receive this award must of course have valuable contributions to the organization.

Most of these people are in direct management. However, the rewards of great value will

make the staff feel pressure and will work hard to be worthy of that reward.

+Intangible: The spaces and activities around the company will invisibly affect the

employees. Sabeco creates motivation for its employees by creating a friendly, clean and

safe working space. People will feel more comfortable and productive. In addition, the


rules and principles of working in the company are also part of that special staff. For

example, with open, creative leadership and management style, openness will make

employees feel less constrained and have more creative ideas. For Sabeco, training

courses are a great way to motivate employees. When employees are selected for training,

they will feel that they are more capacity to develop and that the company is paying

attention. Training is an opportunity for staff to improve themselves and develop skills.

Therefore, they will consider it a great encouragement

2. Remuneration

+ Monetary

Basic contracted salary , bonus and commission are three factors which belong to

Remuneration. Remuneration is a way so as to pay and compensate for the staffs

(Investopedia.com, 2016)

+ Basic contracted salary : As you know, Sabeco is a famous group, so that Sabeco

increases the basic contracted salary which depends on the staffs’ ability . Additionally,

Sabeco uses the contracted salary to create motivation for the staffs who get productivity

and sale more products as well as attract more customers. On the contract, If the staffs of

Sabeco do not gain revenue which the company requires, they will not receive the enough

salary.( Sabeco.com,2017)

+ Bonus : As noted above, if al staffs work to gain the revenue, they will recieve the basic

contracted salary. However, in each business, there are a lot of staffs, so that between the

employees certainly happen the dissatisfaction and Sebeco is not also exception. For

example, with a sales person in Sebeco , he receive the average fixed salary 5 million

VND. Nevertheless, another important thing is that each company wil have the excellent

ways to attract more customers than others and they get the revenue for company more

than the expectation of company. In this situation, if the company treats them like others

who only follow enough revenue of the company’s requirement , it is not fair with them.

That leads to the employees feel dissatisfied. Maybe, they will leave the job and find a

job to deserve with their effort . Therefore, besides rewarding employees with excellent

performance in money, Sabeco also rewarded money by offering travel for the employees

. (Sabeco.com,2016)

+ Sabeco applies the policy to sales staff. If one month's total sales revenue is 20% then

the employee will receive the commission. This is a very useful way to motivate

employees and increase productivity.

+ Non-monetary


Outstanding employees have been rewarded with money, however, Sabeco employees

still want to be recognized for their skillful sales by spiritual value. According to

trinet.com,2014 , there are 5 non-monetary benefits.

Therefore, Sebeco awares of the benefit of non-monetary, so this company can apply

some non-monetary to motivate for their employees .

+ Award ceremony for excellent staff: It is a very useful way to record the performance of

excellent employees during the month, in each quarter and a year. Excellent staff will be

named and stand in front of the whole staffs of Sebeco receive the excellent staff

certificate. It is considered to be a great encouragement for the staff to continue to work

harder. (Sabeco.com, 2017) Here is a sample of the certificate.

3. Training programs

Investment in extensive training programs is Sabeco's goal. If Sabeco sees the potential

for future growth of employees, they will be willing to provide and invest in training

programs to improve their skills. Employees who are recruited into Sabeco have to

undergo rigorous selection rounds, so most of the employees are highly skilled.

Therefore, Sabeco should open more extensive training courses to help employees

cultivate and improve knowledge and skills. When equipped with the knowledge and

skills, employees will easily face difficulties in the future.

For the sales staff, the rest time with them is really lacking. For example, in a month, they

have to spend time to meet customers, introduce products and run sales. This leaves them

no time for themselves to rest or have fun with their family. Therefore, for sales staff,

rewards for them are reasonable rest periods or short-term family trips. These things will

give them more motivation and work better.

In addition, Sabeco always focuses on organizing activities for the children of all

employees in the company. It is essential because if their children are treated well, they

will have more motivation in their work. Every year, Sabeco organizes moon festival for

children of all employees (Sabeco.com, 2017)

=> As a result, Sabeco carried out a survey for employees to listen the employees’

opinion, then Sabeco will choose the suitable reward for the employees

3.4 Explain how sales management organize sales activities and control sales output

1. Organization sales activities by structure

(Chandrasekhar, 2014)


+Territorial organization structure: Geography-Based Sales

A geographically focused sales team is extremely common and powerful in specific

industries. The concept is that if salesmen specialize in a specific zone, they can scour it

completely and comprehend its workings. The sales approach to deal with a rural group

can be altogether different from an inward city zone or a country town.

Sales based on geographical allow sales staff a better understanding of the markets they

are managing and developing the appropriate approach to that area. Moreover, it can also

prevent cases sellers collide if the map and the territory of each person are clearly

defined. Some industries use this method successfully as direct sales of cosmetics,

telecommunications, print ads and HR.

+Product organization structure: Product-Based sales

Sometimes, specialized knowledge is the way to go. Having salespeople become experts

in a specific product or product line can make them stronger sellers. This is especially

true with products that are highly technical or which are sold to professionals.

For example, for the sale of medical equipment, it requires a salesperson to have a deep

understanding of their product. Because the doctor if there is demand for these products,

they can make the complex question of expertise, technology, and the functionality of the

product. So, ask the salesperson to understand how the product works and how to install

products as well as fixing some simple errors.

+Customer organization structure: Client-Based Approach

Arranging your sales efforts around your clients is another valid approach to sales force

design. In some industries, different types of clients have very different needs. For

example, in the field of health insurance, the sales process for a large company is much

different than a small business local, or sales to customer segments over 35 years old and

customer segments under 20 year old customer segment is two completely different on

both demand and psychological purchase. Salespeople achieve the best results when they

become experts in a specific customer, and this encourages them can easily develop sales

techniques appropriate to each specific target.

Another advantage to a client-based approach is that clients often feel like they have

more of a relationship with their sales representative and get the sense of greater

customer service since the sales effort is designed around them.

+Complexity organization structures: Mixes


Sometimes organization develop a hybrid of these approaches. For example, one sales

team might cover large business in a particular geographical region and other small

business in that same region. There can be many positive results from this form of


However, managers need to develop clear definitions of both the geography and the

company size.

+In case of Sabeco

According to the information which shared by Mr. Quang Vinh who is a salesman under

the Business department of commercial joint stock companies Tay Nguyen Saigon beer, I

realized that Sabeco used the organization sales activities by mix territorial organization

structure with customer organization structure. Then, I will show the example as evidence


Figure 4: The structure of level in sales of Tay Nguyen beer Company

Looking at the diagram above distribution of Saigon Tay Nguyen beer Company, we can

clearly see that the company sold products to the two units is the distribution channel

level 1 and supermarkets. There are 3 reasons to explain for this. First, these two units is

taken very large quantities. Secondly, the company only works with two units shall


ensure fast and accurate. Third, companies do not have enough time to work with all

units to sell products. Therefore, these two units are obliged to sell to other small points.

Therefore, the job of the sales here is to work with all points of sales level 2, level 3

(point of sales level 2 pickup with a larger number of point of sales level 3), pubs and

restaurants, small grocery store, etc. Salesperson’s Sabeco be split along clear area to be

avoided bump into each other, in the absence of clear area under their management, the

sales staff may be working with a point of sales. Sabeco sales staff, will provide an

intersection of the point of sales in areas under their charge. They will have to direct the

store in the list to gather information and carry goods introduced processes and product


Figure 5: The required zone for sales Sabeco product of Mr. Quang Vinh


Figure 6: The example about the form for sales processing report in every single day of

Mr. Quang Vinh

Besides, Sabeco salespeople just have to focus on customers such as enterprises, small

private businesses locally, and a number of restaurants, small local eateries. This

indicates, Sabeco clear distinction of both geography and scale, the sales staff will be

easier to apply sales techniques to a specific target. Because salespeople have to direct the

point of sale to obtain marketing information as well as shop owners, so this will easily

help customers more cozy.

Figure 6: Mr. Quang Vinh and his customer are signing the contract with purchase beer



2. Control sales output

Sales output: shows the performance of a sales person, to see how that person does the

sales job and if they can make profit for the company. To make it measureable, we make

sales budget to evaluate sales person’s performance. Sales budget is the company’s sales

expectations in a period. A sales budget is normally displayed in monthly or quarterly

format, shows the annual sales information. In case Sabeco, keg and can monthly are the

dominant unit in the sales budget.

Sales force performance relation between sales force performance & overall performance

of organizations impact of effective sales force performance on the bottom-line.

Performance can be considered & evaluated in terms of behavior & outcome based

components. Criteria for measurement should be derived from job description of the sales


(Kanchana, 2015)

Criteria for the evaluation of sales force performance:

+Qualitative criteria:

It measures about personal competencies of salespeople included: planning skills, team

work, aptitude & attitude, product knowledge, etc. Measurability leads to ambiguity shift

from planning skills, knowledge of company policies, and time management to

communication skills, ethical behavior & team orientation.

In order to be a great sales people, the soft skills is vital factors. Therefore, some major

qualitative criterions like: Sales skills, Technical skills, Interpersonal skills, Territory

management, Personality traits, Adaptability… which are treated as standard of appraisal.

+Quantitative criteria:

Mostly used and easier to standardize and implement. Quantitative measures can be

segregated into input and output measures. Input measures average number of sales calls

per day, ratio of sales cost to sales number of reports submitted by sales persons. Output

measures sales volume, sales orders number of new accounts, number of advertising

displays, gross profit obtained from new accounts.

+ Establishing of performance standards:

Models go about as a seat stamp and aides in assessing execution can be set up by a

business administrator independently or in interview with different salespeople. Number

of measures to be utilized is one of real choices and trouble associated with the weight to


be given to each factor. Large organizations will have basic arrangement of performance

standards connection between input and output measures to be remembered while setting


+In case of Sabeco:

Figure 7: The table performance output for employees in monthly

The photograph above is provided by Mr. Quang Vinh-employee company's sales of Tay

Nguyen Saigon beer. He had shared that, how to assess the capacity of employees at the

company are based on Tay Nguyen Saigon beer sales monthly. It means that Sabeco is

applying quantitative criteria for salespeople with the sales volume output measures the

sales volume, sales orders number of sales’ points where employees are responsible for

managing their area.

According to the figures Mr. Quang Vinh share, salesperson will get indicators on the sale

of products for the area of each employee by Sabeco monthly. If it does not sell enough

staff targets set out, they will not receive full pay, and will be deductible as a percentage

of the initial lack of indicators. For Saigon Tay Nguyen beer companies, the only goal in

a month for a salesperson is 2,420 kegs/cans of beer to the total output of all products


Sabeco (include Larger 450 bottles, Larger 355 bottles, Larger cans, Export 353 bottles,

cans Special 330, Special 330 bottles, 333 cans, 333 bottles).

3.5 Explain the use of databases in effective sales management

1. Knowledge management system

+Definition: According to Techopedia.com,2016 , “A knowledge management system

(KMS) is a system for applying and using knowledge management principles. These

include data-driven objectives around business productivity, a competitive business

model, business intelligence analysis and more.”

+Benefits: There are several benefits of the knowledge Management System (KMS).

Those benefits will be shown below:

Firstly, all workers in the business can access in order to system which relates to

management and business knowledge

Secondly, with KMS, it is necessary to develop new technologies and it needs to use in

the future

Thirdly, based on KMS, the staffs could find data and information which they are find


Moreover, using KMS will limited the minimum IT costs and improve the

communication between the staffs.

2. Customer relationship management

+Definition: "CRM or Customer Relationship Management is a strategy for managing an

organization’s relationships and interactions with customers and potential customers. A

CRM system helps companies stay connected to customers, streamline processes, and

improve profitability." (Saleforces.com, 2018)

+Benefits: By collecting and analyzing data on customer information, making these data

easy to share and easy to access, CRM brings many benefits to businesses. Easier

customer information management, more interactive assessment, easier collaboration

groups, accurate sales forecasts, timely reporting, etc.

3. ERP BRAVO 7 (ERP-VN): Enterprise Resources Planning

ERP stands for "Enterprise Resources Planning" is a model application of information

technology in business activity management, data collection, storage, analysis and

interpretation. An ERP solution integration, including software and consulting activities

with multiple functions is used for: management plans, costs of production or delivery,


manage inventory and purchasing, marketing and sales, treasury management,

accounting, etc.

ERP software deployment, we get along at 3 products: one is "idea management", "two

software programs" and is "connected" media to build the system and process

management, operation of the system in an integrated computer network. With a unified

software system, multi-function links all activities of the business, from planning,

statistics, support to the audit analysis report output, and help for the operator or parts of

effective operation. ERP help management track smoothly, ensure timely response to

businesses before the changes of the external environment. In the world and both in

Vietnam we have a lot of big companies to successfully deploy ERP solution for the

active management of its business. Successful ERP implementations will save costs in

operating management, increase productivity, increase competitiveness and bring longterm benefits for the business (BRAVO, 2016).

4. In case of Sabeco:

Since 2013, the trust selected SABECO BRAVO partners provide software solutions to

manage the business. System management software business - solutions BRAVO 7 ERPVN is deployed at both the Corporation and the member units of SABECO nationwide

as: Brewery Center, Brewery Saigon - Cu Chi, company Limited Trading Services

alcohol - NGK Saigon JSC Binh Tay liquor, Beer JSC Saigon - Quang Ngai, JSC alcohol

Saigon - Dong Xuan ... The application software used in many parts departments such as

accounting, inventory, manufacturing, etc.

In units SABECO that BRAVO have already deployed the software, problems particular

management was resolved to meet the requirements of enterprises: Problem handling

bottles, shell boxes are stripped and distinction; Data in the unit easily track and create

reports and search information; delivery transactions is presented in detail, detail ... and

many other benefits that bring the software system for businesses. With the invaluable

support from BRAVO software solutions will contribute to increasing management

efficiency for the operations of SABECO, bringing businesses one day carried away on

the road to success (BRAVO, 2016).

Task 4

4.2 Investigate opportunities for selling internationally

 SWOT analysis of Sabeco in domestic market.



- SABECO as enterprises with large -Large amount of raw materials mainly


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