The Quality of Service Offered Ace Manufacturing - Essay Example

Report Executive summary The findings from the conducted research portrays that the quality of service offered by Ace Distributors salespeople could be improved. From the research, it can be seen that the salespersons utilize window displays to promote the sales of products that are less known to the customers. The market for home television is stationary in a way since customers appear not to have the desire to buy the products. However, educating the customers can aid to create demand and consequently boost sales. From the research findings, Ace Manufacturing should implement the recommendations below. The company should offer additional training to the distributors so that they can learn how promote the utilization of window displays and expand the market share. The company should introduce effective mechanisms to nurture sales through education and motivation of employees who are not proactive to adapt to new changes. The company should conduct regular evaluation of its sales force to identify areas that require improvement. The company should pressure the distribution representatives to offer outstanding and timely response to customers’ questions. The company should make good use of the modern technology in service delivery to the consumers. Introduction The executive board of the Ace Manufacturers noticed a poor performance of sales in the market. The company’s executive board decided to hire a professional research firm to find out the causes of the poor performance of the company. The company had shown an outstanding performance for many years. The research was conducted for one month, and several factors causing the decline in sales were identified. The market performance of the Ace manufacturers has deteriorated in the recent past. The company is among the top five firms in the home television industry. The home television industry has grown very competitive in the recent past. Many firms have stormed the industry thereby offering television customers a wide variety of products to choose from (Colletti & Fiss, 2001). The market domination Ace Company is ranked third. The company has dominated the market for many years before dropping to position three in the past few years. The competitors in the industry have established competitive distribution strategies that have caused the Ace Company to lose a significant percentage of the market share. The distribution channels used by a company determine the quantity of sales and the percentage of the market share in the industry (Boachie-Mensah, 2010). In this regard, the quality of a company’s sales force is very important when it comes to sales and the market share. Overview of the research As a research firm, we managed to collect relevant information from retailers through the use of survey method among dealers in the three cities; New York, Chicago and Dallas. The dealers who participated in the survey were picked randomly, and the same number was picked from each of the three cities. A close scrutiny of the information collected from the dealers depicted that most dealers were satisfied with the services offered by the salespeople. The majority of the dealers in the survey felt that window display by the sales representatives required more reinforcement. In addition, a significant number of dealers suggested that the quality of service for sales representatives required some improvements. Most dealers made orders at least once every month. About a quarter of the dealers selected for the survey complained that shipping of the ordered products was accompanied by several problems. For instance, delays at the port and clearance complications were some of the problems encountered during shipping. The chart below illustrates the percentage of Ace dealers who also handle products of the four competitors in the industry. From the graph, it can be deduced that most dealers handle more than one product brand (Burger, 2013). In essence, most dealers work with at least two firms in the industry. A close scrutiny of the issue shows that the Ace distributors’ salespersons have a magnificent role in helping retailers to differentiate between the brands of products provided by dealers. In essence, the Ace Distributors sales representatives should make the products of the company well known to the customers (Zoltners et al., 2004). Ackerman (2003) states that the salespersons should employ effective mechanisms such as the use of efficient window display techniques and other strategies for product promotion. The salespersons can succeed in differentiating the products of Ace Manufacturers from those of competitors by engaging in participatory sales with the customers. Participatory sales can be facilitated by listening to customers’ views and answering the questions raised by customers effectively. The way the salespeople handle customers’ views and questions is very empirical when it comes to market performance. From the research, it was deduced that the window displays for the Ace Company were not as good as those of its competitors. The chart below shows the superiority of window displays by brand. According to Williams, Hall & Champion (2011) it is imperative to recognize that window displays aid in attracting customers in certain brands of products. Poor strategies in window displays might have resulted in the poor performance of Ace Manufacturers Company. From the graph below, it can be observed that the competitors had prominence in window display compared to Ace Company (Burger, 2013). The poor performance of the Ace Company may have been caused by the changing trends in the industry (Panagopoulos, 2010). The home television industry is not stagnant and, therefore, keep on changing from time to time. In addition, the consumer’s preferences and tastes keep on changing based on such factors such as seasons and economic status patterns. The demand for products and services increase with the improvement in the economic status of consumers. Sometimes the consumers’ preferences and tastes are affected by the economic position at the time of seeing the product. The changes in technology may have also contributed to the poor performance of the Ace Company in the market. Technological features such as the internet services and wireless connections have been the most recent trends in the home television industry. A firm whose product do not much the current trends might risk losing a significant percentage of the market share. The services provided by the distributors’ representatives at the company are questionable. The customers do not get immediate feedback from the distributors’ representatives. In some instance, the customers are advised to come for the feedback at a later date. Some customers complain that the services offered by the distributors’ representatives are not up to the required standard. In this regard, handling of the customers by the distributors’ representatives affect sales and the market share of Ace Company. The distributors’ representatives should recognize that customer relations are very important to a company’s market operations. Miller (2009) argues that most consumers do not switch to new developments immediately. Others do not see the need to switch to the new developments since they are used to the old systems. For these reasons, the implementation of change in an industry becomes hard. However, informing the consumers about the existence of new developments and the importance of adopting change might influence their choice of product brands. In essence, convincing consumers about the efficiency of a new development elicits curiosity and consequently increases the market demand. Once the market demand has increased, the sales of the new products increase thereby boosting the market performance of the company. The consumers of home television products in the US appear to be less responsive to new developments in the industry. Educating the customers is among the best mechanisms for improving sales and the market share of the company (Hill, Roche & Allen, 2007). Basically, consumers should be provided with sufficient information regarding any new development to facilitate sound decision making. Consumer satisfaction is among the major factors that influence a company’s market share (Khosrowpour, 2001). In addition, consumer satisfaction aids a firm to surpass its competitors in the market due to consumer loyalty. The Ace Manufacturers should enhance consumers’ satisfaction in order to increase sales and the market share. The market share of a company is very important since it determines the company’s profit margin and the competition in the market. Customers are usually the core players who keep the company surviving throughout the life span. Recommendation The company should offer additional training to the distributors so that they can learn how promote the utilization of window displays and expand the market share. Through training, the distributors will learn how strategically set up window displays. The company should introduce effective mechanisms to nurture sales through education and motivation of employees who are not proactive to adapt to new changes. The company should conduct regular evaluation of its sales force to identify areas that require improvement. Regular evaluation minimizes the chances of adverse consequences that might face the company due to system failure. The company should pressure the distribution representatives to offer outstanding and timely response to customers’ questions. The company should make good use of the modern technology in service delivery to consumers. The modern technology is more effective than using the traditional methods of delivering services to customers. Conclusion Firms and distributors in the home television industry have to establish good relations with customers to command a significant percentage of the available market. One of the most effective ways to increase a company’s market share is through explaining the product features to the customers. The salespeople play a significant role in a company. In most cases, demonstration of features regarding a certain product is done by the salespersons. Ace Company should ensure sufficient training of its salespersons to promote effective customer interactions. Training is necessary since it equips the salespeople with the knowledge to handle questions raised by consumers. Efficient handling of questions raised by the customers by the salespeople promotes brand loyalty (Szwarc, 2005). Window display has proven to be among the best platforms for the customers to learn the features of a product. In this regard, companies should employ effective window display techniques to reach as many customers as possible. The modern technology can be very useful in improving the quality of products and services produced by companies. Companies should establish strategies that promote satisfaction of the customers. References: Ackerman, L. J. (2003). Management basics for veterinarians. New York: ASJA Press. https://books.google.co.ke/books?id=ycf3K_l9rMoC&pg=PA86&dq=Management+basics+for+veterinarians&hl=en&sa=X&ei=TNU9VdOiJMm4aYKbgJAC&redir_esc=y#v=onepage&q=Management%20basics%20for%20veterinarians&f=false Boachie-Mensah, F. O. (2010). Sales management. S.l.: Trafford Pub. https://books.google.co.ke/books?id=56yjBAAAQBAJ&printsec=frontcover&dq=MGMT&hl=en&sa=X&ei=Zds9VdvUJY7OaMaXgYAD&redir_esc=y Burger, A. (2013). Report: 73% of U.S. consumers not interested in buying a smart TV set. TeleCompetitor. Retrieved from http://www.telecompetitor.com/report-73-of-u-s-consumers-not-interested-in-buying-a-smart-tv-setihs-nearly-¾-u-s-consumers-interested-buying-smart-tv-set/ Colletti, J. A., & Fiss, M. S. (2001). Compensating New Sales Roles: How to Design Rewards That Work in Todays Selling Environment. New York: AMACOM. https://books.google.co.ke/books?id=hptqpbLX3wkC&printsec=frontcover&dq=Compensating+New+Sales+Roles:+How+to+Design+Rewards+%09That+Work+in+Todays+Selling+Environment.&hl=en&sa=X&ei=FtY9VZOwLYLiaPyLgOAG&redir_esc=y#v=onepage&q=Compensating%20New%20Sales%20Roles%3A%20How%20to%20Design%20Rewards%20%09That%20Work%20in%20Todays%20Selling%20Environment.&f=false Hill, N., Roche, G., & Allen, R. (2007). Customer satisfaction: The customer experience through the customers eyes. London: Cogent. https://books.google.co.ke/books?id=uKQPo_FibAQC&printsec=frontcover&dq=Customer+satisfaction:+The+customer+experience+through+the+customer%27s+eyes&hl=en&sa=X&ei=Jtg9VYTXHtDWapyYgNgC&redir_esc=y#v=onepage&q=Customer%20satisfaction%3A%20The%20customer%20experience%20through%20the%20customers%20eyes&f=false Khosrowpour, M. (2001). Pitfalls and triumphs of information technology management. Hershey, Pa, [u.a.: Idea Group Pub. https://books.google.co.ke/books?id=9dIXlSPB_IUC&printsec=frontcover&dq=Pitfalls+and+triumphs+of+information+technology+management.&hl=en&sa=X&ei=6dg9VZSoGtDLaJK7gagB&redir_esc=y#v=onepage&q=Pitfalls%20and%20triumphs%20of%20information%20technology%20management.&f=false Miller, W. (2009). ProActive sales management: How to lead, motivate, and stay ahead of the game. New York: American Management Association. https://books.google.co.ke/books?id=EFXAESmDrB8C&printsec=frontcover&dq=ProActive+sales+management:+How+to+lead,+motivate,+and+stay+ahead+of+the+game.&hl=en&sa=X&ei=vNk9Vc7rIdPraObygZAB&redir_esc=y#v=onepage&q=ProActive%20sales%20management%3A%20How%20to%20lead%2C%20motivate%2C%20and%20stay%20ahead%20of%20the%20game.&f=false Panagopoulos, N. (2010). Sales technology: Making the most of your investment. S.l.: Business Expert Press. https://books.google.co.ke/books?id=4-6Ogve97N0C&printsec=frontcover&dq=Sales+technology:+Making+the+most+of+your+investment&hl=en&sa=X&ei=iNo9VebpG834ataOgLAM&redir_esc=y#v=onepage&q=Sales%20technology%3A%20Making%20the%20most%20of%20your%20investment&f=false Szwarc, P. (2005). Researching customer satisfaction & loyalty: How to find out what people really think. London: Kogan Page. https://books.google.co.ke/books?id=Y3ZsNFCc4bwC&printsec=frontcover&dq=Researching+customer+satisfaction+%26+loyalty:+How+to+find+out+what+people+really+think.&hl=en&sa=X&ei=0OY9VeGhDIbzar-9gbgD&redir_esc=y Williams, C., Hall, I., & Champion, T. (2011). MGMT. Toronto: Nelson Education. https://books.google.co.ke/books?id=56yjBAAAQBAJ&printsec=frontcover&dq=MGMT&hl=en&sa=X&ei=Zds9VdvUJY7OaMaXgYAD&redir_esc=y#v=onepage&q=MGMT&f=false Zoltners, A. A., et al. (2004).Sales force design for strategic advantage. New York: Palgrave Macmillan. https://books.google.co.ke/books?id=Stkd8FkdIKcC&printsec=frontcover&dq=Sales+force+design+for+strategic+advantage&hl=en&sa=X&ei=29o9VYzBItHfaLSigMgE&redir_esc=y#v=onepage&q=Sales%20force%20design%20for%20strategic%20advantage&f=false Read More