Sales Management

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APPENDIX ONE

Sales Management 230

Semester 2, 2010

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Discuss the Advantages & Disadvantages of Sales Force Automation (SFA)

Sales Force Automation or ‘SFA’ is a computerised system that is designed to help enhance the sales routine. Integrated SFA works together to achieve some or all the functions such as; expense report, presentation software, sales call scheduling, territory management, proposal generation, order entry, data entry, team selling materials and sales tracking (Hair et al. 2008). However, Sales Force Automation doesn’t always help to enhance the sales functions, therefore, this essay will discuss regarding firms and those who advantages using the SFA system which results in shorter respond time towards the changing market needs as well as to evaluate them faster, to have a more well-organized activities, and the last but not least is to set up and preserve the relationship with the main stakeholders through a good communication (Hair et al. 2008). This essay will also discuss in regards to the disadvantages a firm could face when SFA is introduced into a firm’s systems, such as; inadequate training which often lacking in the sales training, the high rate of failure to implement this technology when relying on other technology (Bush et al. 2005), and last but not least is salespeople may feel less job security (Hair et al. 2008).

Sales Force Automation or SFA provides the seller with much faster to access information, thus reducing the time consumed to prepare for a client presentation and as well as to reduce the number of follow-ups when further information is requested (Taylor 1993). SFA also reduces the number of errors that’s made usually by the manual sales processing, reduced the support costs, improve close rates and an increase in average selling price with the more accurate and faster timing information process (Verity 1993). Despite all these benefits, the SFA system seems to be still quite slow. To obtain an up to date and fast service of SFA, firms had to pay a substantially large cost to set up as well as to train the salespeople in regards to the new system, this however will take much time and money to firms. Firms then have to decide whether it is worth it or not to spend that much cost (Jones, Sundaram and Chin 2002, 145). Firms also have to support their employees by rewarding them to do the...
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