Faculty of Commerce, Law and Management

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    Factors Influencing the Attraction and Retention of Multi-Level Marketing Distributors in South Africa
    (2014-02-17) Mashaba, Thuthuka
    Sustained distributor growth that consistently achieves product sales and stated revenue objectives is the lifeblood of Multi-Level Marketing (MLM) organisations (Legara, Monterola, Juanico, Linton-Palima & Saloma, 2008). This is due to the various roles and functions that MLM distributors perform within MLM organisations (Alturas, 2003) such as, sales generation, recruiting of more distributors; new distributor training, distributor motivation, and order control (Msweli-Mbanga & Sargeant, 2001). MLM distributor attraction and retention are therefore of fundamental importance to MLM organisations. In light of this, the purpose of this study is to provide insight into the factors influencing the attraction, participation and retention of these MLM distributors in South Africa. A research questionnaire was constructed based on the available literature and was primarily distributed electronically. Of the 238 responses obtained, 183 were accepted as valid and the collected data was then subjected to various quantitative analyses with exploratory factor analysis being the technique selected for identifying factors influencing distributor attraction and participation. T tests and effect size analyses were then employed over and above factor analysis as secondary techniques in order to identify the factors influencing distributor retention. The results showed that factors pertaining to career and personal development, industry attractiveness and time flexibility, and income generation opportunities were the factors influencing distributor attraction into the MLM industry. Once engaged with the industry as a whole, potential distributors decided to participate in specific MLM organisations due to the factors pertaining to company image and success, the product affiliation of the potential distributors, and the outcomes of the distributors’ own investigations. Once successfully recruited, the study revealed the factors influencing distributor retention to be the distributors’ views of the marketing mix, distributor development and company performance, the network and sales growth ii achieved, satisfaction with income, product usage and entrepreneurship, valuing of relationships, and the organisational support received. The underlying key findings for this research being that MLM organisations must be collective custodians of the industry as a whole. They must seek out and address any negative sentiments regarding the industry and positioning the industry favourably in the eyes of the broader public in order to ensure the MLM industry is attractive to potential distributors. In addition, MLM organisations must individually look internally to ensure they are configured for success. This implies developing and acting on approaches to attracting high numbers of quality distributors to their organisations through the understanding of the factors that these potential distributors consider to be important. This should be supplemented by integrated distributor retention strategies to allow the MLM organisations to consistently achieve their desired product sales and revenue objectives
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    The Critical Success Factors of Pharmaceutical Sales Representatives in South Africa
    (2014-01-08) Rodseth, Christian Hendrik
    The pharmaceutical industry is a multimillion rand industry that makes use of relationship marketing as its main market engagement strategy, with sales representatives being the conduit for strategy implementation. As a result, almost twenty percent of employees in the pharmaceutical industry are sales staff, focused on influencing the prescribing habits of the clinicians they sell to. This sales resource is viewed as the most expensive but most valued resource to a pharmaceutical company. Even with this current reality there is very little published research that concisely captures what the critical success factors are for pharmaceutical sales representatives. The purpose of this research was therefore to identify the critical success factors of pharmaceutical sales representatives in South Africa. In addition to this, this research identified those critical success factors that are inherent to a sales representative as well as those which are activity related. Prior to conducting the research, a literature review was completed with the intention to identify possible critical success factors. Following this, an online survey was used to test for these factors. General practitioners, specialists, sales managers and sales representatives formed part of this research. Six hundred and eighty eight respondents completed the survey, making this study one of the largest industry studies to have been conducted. In order of importance, the research findings identified the following as critical success factors: relationship building, adding value to a doctors practice, conscientiousness, interpersonal versatility, experience, performance drive and goal setting. Interestingly, though identified as critical success factors by previously published literature, this research found that, call rate, call frequency, extroversion and attractiveness are not viewed as critical success factors. These findings have lead to the development of the “iDEAL rep” model that forms the basis for “iDEAL” training, development and recruitment of sales representatives. This model equips companies to recruit sales staff that possess the critical success factors while training current employees to develop these factors. In so doing, pharmaceutical companies will generate greater returns through more successful sales representatives.
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    Effective leadership behaviors in the sales functions of consumer driven business in South Africa
    (2013-10-04) Hughes, Steven
    Leadership as a topic provides an extensive challenge in that its scope is significant and no ‘one size fits all’ approach exists. Within leadership, there are various theories and styles. Potential leaders all have a natural style of leadership that they gravitate towards; nevertheless, it does not mean that leaders cannot grow. They have the ability to learn to lead more effectively by practising, observing and adjusting their behaviour where necessary. This research report aims to identify business leaders’ perceptions of the key behaviours that determine effective leadership within sales functions of consumer driven businesses in South Africa by using Nicholls’ (1994) Head, Heart and Hands framework, which allows for differentiation between various types of behaviour. A themed content analysis was conducted on the responses and information (interview transcripts) gathered from 16 critical incident interviews involving 16 respondents with current or recent sales director experience, thus meeting the research criteria. The common factors identified across all respondents led to a deeper understanding of the issues, resulting in a list of themes, categories within those themes and key behaviours of effective leaders relative to behaviours of effective leaders within sales functions of consumer driven businesses. The most significant feature of the research was that provided a leader leads by example and treats people in the manner in which they would wish to be treated, it would be difficult to make fundamental leadership mistakes. By being authentic in their leadership style, and being themselves they will ‘always’ do the right thing and make the right decisions. Therefore, sales directors and aspiring leaders within the sales function of consumer driven industries can learn and apply the key behaviours of a leader, which is significantly easier to change and adapt than characteristics of a leader. Furthermore, the literature review revealed that leadership behaviour plays an extensive role in the performance and general productivity of the work force. The results of the research study have identified key behaviours of effective leaders within the sales functions of consumer driven businesses in South Africa.
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    Salesperson Attributes Preferred by Buyers in the Industrial Chemical Industry
    (2012-02-13) Young, Patrick
    The purpose of this study is to determine whether buyers and members of the buying group have the authority to choose between suppliers, and to determine the preferred attributes of sales representatives in the South African chemical industry from the perspective of the buying group. The results show that buyers and members of the professional buying group do indeed have the authority to choose suppliers. The results also show that buyers most prefer representatives who can solve problems, followed by representatives with technical knowledge, and then representatives who are efficient and follow through. These are the three most important attributes from the buyers’ perspective, and they are followed in decreasing order of importance by representatives who are easy to contact, representatives who readily provide information and samples, and representatives with industry experience. The research concludes with the finding that sales representatives who adopt the attributes which have been highlighted in this study will be more successful.
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    Salesperson attributes in the South
    (2011-06-24) van der Westhuyzen, Jacques
    It was found in literature from past studies that a vast number of attributes are preferred by clients, and that different industries have different requirements. This research determines what preferred salesperson attributes the Aluminium industry of South Africa has and the relative importances thereof. The data for this research was collected in two phases. First was the exploratory interviews where interviewees from the industry were asked what their preferences were and then prompted with attributes found in literature. Secondly the qualitative responses were compiled into a Conjoint Value Analysis Questionnaire for the quantitative part and sent out into industry for completion. The result were five prominent attributes and in order of importance they were Thoroughness and follow through, Product and technical knowledge, Ability and willingness to solve problems, Trustworthiness and the degree of Contactability. For the Aluminium industry to have this knowledge will enable them to tailor their recruitment and training programs to optimize their sales force by creating a fit between sales person and client, therefore optimizing sales opportunities and relationships
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    The adoption of sales force automation technology in South Africa
    (2011-03-22) Johnson, Bruce
    The concept of automating an organization’s sales force by means of technology is known as Sales Force Automation (SFA). While SFA technology has been in existence for a number of years and has proven a valuable asset for many, there are still numerous instances of organizations facing the challenge of failed SFA implementation due to unsuccessful user acceptance. Far too often management only considers the impact of SFA technology from an organizational perspective and is usually not cognizant of the psychological factors influencing individual user perceptions of the new SFA system. Therefore this study, from an individual’s perspective, explores which of these factors affect adoption of SFA technology by South African sales people. As the body of technology acceptance/adoption research is well developed, this study has been undertaken using solely a quantitative approach. While positivist epistemology lacks the richness of qualitative research, it eliminates subjective bias and allows the researcher to gain an objective view and understanding of complex psychological influences. The findings of this research demonstrate that the factors of performance expectancy, social influence and perceived behavioral control are highly significant determinants of SFA adoption. Furthermore that an individual’s chronological age plays a significant role and that older salespeople are less likely to successfully adopt SFA technology.