Issues currently affecting the modern day sales executive within the retail sales industry
Theme: Challenges facing consumers within the retail sales industry
Have you ever asked yourself why the consumer is considered “the king?” He supports the company’s operations by consuming the products. However, this financier usually goes through a multiplicity of challenges. Like the Chinese proverb states, “customers are jade; merchandise is grass.” However, I wish to state categorically challenges facing consumers might in future hinder the organization from achieving its future goals. Seat back and allow me take you through some of the challenges facing consumers within the retail sales industry. After the presentation, you will be able to establish ways through which you can mitigate the problem in an effort to sustain the future of the firm and the industry at large.
Decreasing disposable income
The effects of price escalation, caused by increased fuel prices or economic crisis, have hit many business sectors. Let me confirm to you that during the economic recession, which hit the American economy in 2007 affected the whole world. This condition exerted pressure on prices to rise. Consumers had to purchase fewer units using the disposable income available to them during that time (Smithers 1). You can agree with me that the prevalence of such a condition means that regardless the amount of effort you may use to carry out sales promotion, the consumer’s purchasing power is low. Additionally, inflationary economies and high taxation have had a negative impact on the consumers’ ability to buy. In 2010, in America, tax increases increased price of commodities weakening the consumer’s ability to buy more units. The “take home” wages reduced to the extent that consumers could purchase essentials. As a sales executive, you consider the way through which you should be thinking how you could save the consumer from such a challenge. Well let me take you through to the next challenge; job security, which causes credit financial hurdles (Smithers 1).
Credit financing hurdles- job security
You should be aware of the fact that any employer considers reducing wage rates as a way of reducing overhead costs. They execute this by hiring their employees on a contract basis. Note that, consumers will look for any well-paying jobs because they are insecure of their current employer. Shifting work places renders many employees unemployed and as such, financial institution cannot grand employee loans. Is it true that financial institution will always assess your employment status to determine whether you qualify for a loan? Hope it is. Now listen, an employee on contract or internship, or hired on a temporal basis cannot qualify for a loan. The inability of the consumer to access funds from a financial institution credit financial hurdle. You all know that the power of consumers to buy is depended on the money he can access. Since the consumers face this challenge, you as sales executive need to consider such a situation when executing your roles in the marketing field. Let us consider another challenge facing consumers.
Credit financing- investment
I hope that you all understand the vicious circle concept brought about by Robert Malthus. As a reminder, low investment reduces productivity, which in turn reduces consumption and investment (Smart 424). In an economy, that consumers have no power to access credit facilities, their ability to invest in affected and the future, the consumer will collect low returns. Low returns reduces real income, which affect you as a sales executive from increasing the sales volume. Look, you may reduce prices for commodities in anticipation that consumers it will influence the purchasing power parity, but you may be wrong. As a sales executive you need to mitigate some of these challenges to consumers close to your reach then distant one's might look for you., As the Chinese saying goes, firms should make consumers who are near happy in order to attract those that are far. This means that, as a sales agent, you need to come up with institutional measures aimed at alleviating some of these problems to consumers within your region. Far reaching consumers may access the information through the press or social media.
How the sales executive can overcome these and other issues
Now as a sales executive, what could you do to save the consumer from some of these challenges in order to boost operations of the firm through increased sales volume? I have a few solutions to the problem. Allow me to share them; I will allow you at the end of speech to add on mine and perhaps ask various questions. Firstly, you need to encourage the consumer to save in order to ensure a constant consumption trend throughout his lifetime. Many economist will use the life cycle hypothesis is to support this allegation (Smart 425). How does the idea add value to your efforts as a sales executive? The consumer will always consume your products regardless of natural factors, or any others challenges exerting pressure on the disposable income to decrease.
Then, as a sales executive, you need to encourage consumers to avoid shifting jobs in a bid to look for high paying contracts (Majumdar 5). This increases job insecurity because employers cannot pay high wages for long. In this case, accessing financial credit to boost their consumption abilities will increase. Accordingly, consumers should stop domineering on employers and start their own initiatives to guarantee a regular real income. With time, consumers can access credit funding to expand their operation. Sales executive will increase the number of consumers because their disposable income keeps on increasing. Let us consider the psychological responses associated with challenges facing consumers in the retail sales industry.
Personal level of the issue; motivation, discouragement
It is discouraging to spend your time creating awareness, persuading consumers whose disposable income is low, and as such, they cannot afford your products. As a sales executive, you are rewarded on a commission basis thereby implying that your remuneration is influenced by the consumers’ ability to purchase your products. On the other hand, the consumer feels “low” considering that the sales teams are persuading him to purchase the products he cannot afford. It is true that all parties are motivated when the purchasing power of consumers is higher.
Firstly, we have established some of the challenges facing consumers within the retail sales industry. The decrease in disposable income weakens the consumers’ ability to purchase products thereby demotivate a sales executive during the time one is executing his duties. Secondly, consumers face the challenge of credit financing resulting from their job security. Most of the consumers may be working on contracts or temporal basis and as such, financial institution cannot grand the funds for investment and consumption. This also affects your achievements as a sales executive. As a way of mitigating the challenge, you have been asked to encourage the consumer to save in order to ensure a constant consumption behavior or trend, which will be advantageous to you. Additionally, consumers were supposed to ensure they avoid shifting jobs as a way of ensuring their job security is guaranteed. Starting their own income generating initiative was vital in improving their real income. This will ensure that you increase your commission through increased sales volume.
The challenges affecting consumers in the retail industry may influence the performance of a company because of reduced revenue. As a sales executive, you play a vital role in advising the consumers accordingly because you understand how some of the problems may be alleviated. Let me conclude by saying; if you need to kill all the fish in water, there is the need to poison the water. Similarly, if you target and address the challenges facing consumers, the performance of the company will improve. Thank you.
Majumdar, Ramanuj. Consumer behaviour: insights from Indian market. New Delhi: PHI Learning, 2010. Print.
Smart, Barry, and George Ritzer. Handbook of social theory. London: SAGE, 2001. Print.
Smithers , Rebecca. " Family disposable income falls by biggest drop on record | Money | guardian.co.uk ." Latest US news, world news, sport and comment from the Guardian | guardiannews.com | The Guardian . Version 1. Guardian News and Media Limited, 27 Jan. 2011. Web. 22 Jan. 2013. <http://www.guardian.co.uk/money/2011/jan/27/fall-family-disposable-income>.