How to enhance communication skills of salespeople at curewel international company in viet nam

 

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
---------------------------

NGUYEN HA HOANG OANH

HOW TO ENHANCE COMMUNICATION
SKILLS OF SALESPEOPLE AT CUREWEL
INTERNATIONAL COMPANY
IN VIET NAM
ID: 22130053

MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: DR. TRAN HA MINH QUAN

Ho Chi Minh City – Year 2016


 

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ACKNOWLEDGEMENT
First of all, I would like to express my sincere gratitude to my supervisor, Dr. Tran Ha
Minh Quan, for his professional guidance, positive encouragements and helpful guidance
during the time of doing my thesis.
Further, I would like to thank all the members of the committee, who gave the helpful
comments for me to complete the thesis in the right direction.
My sincere thanks are also given to all of the professors at International Business
School – University of Economics Ho Chi Minh City for their teaching and guidance during
my master course.
In addition, I would like to say thanks to all the board of director, staffs and customers
of Curewel International Company Limited, who provided documents, answered the
questionnaires and gave the feedback for completing this thesis.
Finally, my deepest gratitude goes to my classmates in MBUS 4.2 and my family for
their support and encouragement so that I can complete this thesis.


 

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EXECUTIVE SUMMARY
Curewel International (Vietnam) Co., Ltd in Vietnam (CIV) established in 2004 and is
one of eight subsidiary companies of Curewel International Group. CIV represents for many
manufacturers from many countries and delivers healthcare products from four segments
such as Pharmaceutical, Orthopedic, Dentals and Pharma-Cosmetic to customers. In
Orthopedic, Dentals and Pharma-Cosmetic, the customers are the distributing companies
while in pharmaceutical, the customers are the hospitals, clinics and pharmacy shops in
whole of Vietnam.
The main channel of CIV is to approach such customers by introducing and selling
products directly through the sales force. So far, CIV mainly bases on the brand name of the

manufacturers or the quality of product to push the business in local. The segments of
Orthopedic, Dentals and Pharma-Cosmetic are developing sustainably, but the developing
rate of Pharmaceuticals is reducing recently. Nevertheless, in recent years, sales revenue has
been decreased; sales time for completing any business is longer comparing previously;
number of exploited customers dropped down and the rate of new customers is less
increasing which having influence on the sales revenue of the foreign manufacturers to
Curewel International in general and CIV in particular. Withdrawn from the failed business
and feedback from customers and sales force, we recognized that sales force of CIV have
poor communication skills.
The purpose of this thesis is to find out the roof of problem that make CIV have those
bad symptoms. After researching the real situation at CIV, we found that CIV had a problem
at communication skills of their salespersons to the customers, comparing with competitors.
Because CIV’s concentration is in B2B, so almost business of CIV is through the sales force,


 

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but the sales force when approached new customers or take care of old customers, they
either not convey sufficient products’ information to customers, or listen to the customers
properly, or understand the customers, or build CIV brand awareness to customers to
persuade customers to buy products through their communication skill.
To solve problem of low communication skills of sales force of CIV, researcher
discussed in-depth with the Board of Directors and found three alternative solutions:
Training, Teamwork, and Dismissal & Recruitment to solve the problem. Comparing these
three solutions each other, we found that training brings more benefit and less time and cost
than the two remained solutions, so we selected training as a best solution for the problem. It
takes two and half months for this solution. The Admin-Sales Department will take one
week for preparing documents for training information about CIV including introduction

about CIV in general, products categories of CIV, the partners of CIV, the role as well as the
high responsibility of CIV to sales people. The Board of Directors and Products Directors
will be responsible for training products knowledge like types of products, dosage,
indication, contraindication, side effects, products category and training skill of listening,
understanding, empathy customers and training behavior for the sales force in one month
and three weeks. Also, the company will invite the expertize trainers to equip solid
foundation in effective communication for sales force in the aim of branding for CIV in two
weeks. Training programs will apply on sales force in 2017 to enable CIV to increase
business effectively.


 

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TABLE OF CONTENTS
ACKNOWLEDGEMENT ..................................................................................................................... i
 
EXECUTIVE SUMMARY ..................................................................................................................ii
 
TABLE OF CONTENTS..................................................................................................................... iv
 
LIST OF TABLES AND FIGURES ................................................................................................... vi
 
LIST OF ABBREVIATION ...............................................................................................................vii
 
CHAPTER 1: PROBLEM IDENTIFICATION ................................................................................... 1
 
1.1. Company background .................................................................................................................... 1
 

1.2. Background of problem ................................................................................................................. 3
 
1.2.1. Symptoms ................................................................................................................... 3
 
1.2.2. Possible problems....................................................................................................... 7
 
1.3. Problem justification .................................................................................................................... 14
 
1.3.1. Problem definition .................................................................................................... 14
 
1.3.2. Justify the existence of the central problem ............................................................. 15
 
1.3.3. Justify the importance of the problem ...................................................................... 17
 
1.4. Potential causes of the problem ................................................................................................... 18
 
1.5. Causes validation ......................................................................................................................... 20
 
CHAPTER 2: ALTERNATIVE SOLUTION ANALYSIS................................................................ 22
 
2.1. Alternative Solutions ................................................................................................................... 22
 
2.1.1. Training .................................................................................................................... 22
 
2.1.2. Teamwork ................................................................................................................ 24
 
2.1.3. Dismissal and recruitment ........................................................................................ 24
 
2.2. Solution comparison .................................................................................................................... 24
 

2.3. Select the best solution................................................................................................................. 27
 
CHAPTER 3: ACTION PLAN........................................................................................................... 29
 
3.1. Business goals .............................................................................................................................. 29
 
3.2. Objectives .................................................................................................................................... 29
 
3.3. Cost and benefit of three alternative solutions ............................................................................. 29
 
3.4. Detailed implementation plan ...................................................................................................... 29
 
CHAPTER 4: SUPPORTING INFORMATION ............................................................................... 31
 
Table 4.1. Interview sales people to identify the most important causes of the problem ................... 31
 
Table 4.2. Interview sales people to identify the most important causes of the problem ................... 32
 
Table 4.3. Interview sales people to identify the most important causes of the problem ................... 33
 


 

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Table 4.4. Interview sales people to identify the most important causes of the problem ................... 35
 
Table 4.5. Interview customers to identify the most important causes of the problem ....................... 36
 

Table 4.6. Interview customers to identify the most important causes of the problem ....................... 37
 
Table 4.7. Interview customers to identify the most important causes of the problem ....................... 39
 
Table 4.8. Interview customers to identify the most important causes of the problem ....................... 40
 
APPENDIX ......................................................................................................................................... 48
 
Appendix A. Survey questionnaire: Interview pharmaceutical salespersons of CIV to find out
symptoms ............................................................................................................................................ 48
 
Appendix B. Survey questionnaire: Interview pharmaceutical customers to find out possible
problems.............................................................................................................................................. 49
 
Appendix C. Survey questionnaire: Interview pharmaceutical customers to identify the existing of
problem ............................................................................................................................................... 51
 
Appendix D. Survey questionnaire: Interview sales people of CIV to identify main causes of
problem ............................................................................................................................................... 52
 
Appendix E. Survey questionnaire: Interview pharmaceutical customers to identify main causes of
problem ............................................................................................................................................... 53
 
Appendix F. Survey questionnaire: Interview board managers to select the best solution for the
problem and detailed implementation plan ......................................................................................... 54
 
Appendix G. Customers’ assessing about communication skill of CIV’s sales people ..................... 55
 

 

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LIST OF TABLES AND FIGURES
Table 1.1. Revenue of CIV and RV Life from 2013 to 2016………………………………...5
Table 1.2. Average time to win customers………………………………………………….10
Table 2.1. Strategies evaluation……………………………………………………………. 25
Table 2.2. Cost and benefit of three alternative solutions…………………………………...26
Table 3.1. Detailed implementation plan……………………………………………………30
Table 4.1. Interview sales people to identify the most important causes of the problem…...31
Table 4.2. Interview sales people to identify the most important causes of the problem…...32
Table 4.3. Interview sales people to identify the most important causes of the problem…...33
Table 4.3. Interview sales people to identify the most important causes of the problem…...35
Table 4.5. Interview customers to identify the most important causes of the problem……..36
Table 4.5. Interview customers to identify the most important causes of the problem……..37
Table 4.5. Interview customers to identify the most important causes of the problem……..39
Table 4.5. Interview customers to identify the most important causes of the problem……..40  
Figure 1.1. Structure of sales force of pharmaceutical industry……………………………...3
Figure 1.2. Number of Pharmaceutical Customer……………………………………………5
Figure 1.3. Number of Pharmaceutical Customer……………………………………………7
Figure 1.4. Cause - and - effect map………………………………………………………...20


 

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LIST OF ABBREVIATION
CIV……………………………………………Curewel International (Vietnam) Co., Ltd

 

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CHAPTER 1: PROBLEM IDENTIFICATION
1.1. Company background
Curewel International Company is one of the leading companies involved in
multifaceted business in India. The company is most dynamic and diversified business
conglomerate in its operations. Curewel International business includes Pharmaceuticals,
Orthopedics, Dentals and Pharma-Cosmetic products. Curewel International Company
committed to provide quality products and services to its customers through constant
improvement and innovation. Curewel International Company founded in 2001 in India and
has its presence in eight different countries which are Singapore, Malaysia, Philippines,
Myanmar, Sri Lanka, Mauritius, Cambodia and Vietnam in various businesses like Trading
and Distribution; and associates with many reputed manufacturers in India, Italia, UK and
Malaysia. Curewel International is on behalf of foreign manufacturers who want to introduce
and occupy the market in locals without spending much expenses in importing, distributing
and positioning their products. The mission of company is to enhance the quality of life for
humankind globally, with quality and affordable products and services, specifically:
•   Customer satisfaction is ultimate goal in our business.
•   Offer products and services of the highest quality.
•   Provide opportunities to our people to excel their full potential.
•   Foster mutually beneficial relations with all our business partners
Curewel International (Vietnam) Co., Ltd (CIV) was established since 2004. CIV also
operate business on four segments Pharmaceutical, Orthopedic, Dentals and PharmaCosmetic.


 

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In the orthopedic industry, CIV associated with Dynamic Techno Medicals for the
orthopedic products like cervical collar, lumbar sacral corset, abdominal corset, wrist splint
and knee immobilizer corsets. In dental industry, CIV associated with Eucare
Pharmaceuticals India and Group Pharma Private Limited India manufacturers for
toothpaste, mouthwash, sterile absorbable membranes, sterile absorbable collagen and
gelatin sponges, etc. And in the pharma-cosmetic industry, CIV associated with Lee-ford
Healthcare India, Claps Industries Pvt. Ltd India, Medical-life Italia and Ken-rich Malaysia.
These such three segments CIV has their sole marketing and distributing customers who are
distributing and have their own sales team. So, CIV based on the brand name of such
manufacturers or the quality of product to push the business in local. And the revenue also
grows steadily.
In pharmaceutical industry, CIV associated with the following India manufacturers for
three products categories that are Antibiotic/ Anti-bacterial/ Antifungal, Anti-inflammatory/
Analgesics and Anti-ulcer/ Anti-acid/ Anti-Emetics with total 75 products.
•   Zee Laboratories
•   Lanark Laboratories
•   Swiss Parenterals
•   Amol Pharmaceuticals
•   Mednext Pharma
The customers of the pharmaceutical industry are the hospitals like Cho Ray Hospital,
University Hospital, 115 Hospital, Hong Duc Hospital, Hoan My Hospital, Tu Vu Hospital,
etc., general clinics and pharmacy shops in whole of Vietnam. In this segment, CIV
approach such customers through the sales force - 22 sales peoples including 18 Medical


 

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Representatives and 4 Managers in three regions north, central and south of Vietnam. The
structure of the sales team of this segment is as below:
Figure 1.1: Structure of sales force of pharmaceutical industry

Sales Director

Regional Sales
Manager (North
provinces) (1)

Medical Represenatives
(5)

Regional Sales
Manager (Central
provinces) (1)

Medical Representatives
(5)

Regional Sales
Manager (South
provinces) (1)

Medical Represetatives
(8)

(Source: Structure of pharmaceutical department of CIV)

1.2. Background of problem
1.2.1. Symptoms
The existing symptoms at CIV are that:
•   Total sales revenue of Pharmaceuticals segment reduced comparing with the
rest of segments;
•   Number of current customers lose annually;
•   Increasing new customers is ineffective
Total sales revenue of Pharmaceuticals segment reduced comparing with the rest of
segments


 

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Total sales revenue of CIV comes from four segments Pharmaceuticals, Orthopedics,
Dentals and Pharma-cosmetic. Sales revenue of the Orthopedics, Dentals and PharmaCosmetic segments where CIV through the Vietnamese distributing companies who has their
own sales team to sell products, increase steadily. But sales revenue of pharmaceuticals
segment went down. In specific, in orthopedics segment, the sales revenue increased slightly
385 million VND from 2013 to 2014, from 2014 to 2015 sales revenue increased 2,068
million VND and went up 1,417 million VND from 2015 to 2016. In dental segment, the
sales revenue increased around 8% to 10% over the years from 2013 to 2016. In pharmacosmetic, from 2013 to 2014 the sales revenue increased strongly from 8,845 million VND
to 10,222 million VND, equally 14%. In 2015, sales revenue almost remained unchanged. In
2016, sales revenue extended to 12,632 million VND, increased 2,601 million VND. The
details show in the figure 2.1 below.
But sales revenue of Pharmaceutical segment reduced. In consecutive four years
recently from 2013 to 2016 the sales revenue reduced significantly. In particular, from 2013
to 2014, sales revenue decreased 2,648 million VND, equally 10%. From year 2014 to 2015,
sales revenue reduced 1,084 million VND, equally 4%. In 2016, the sales revenue went
down strongly 4,299 million VND equally 17% comparing with 2015. The details of

pharmaceutical sales revenue show in the figure 2.1


 

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Figure 1.2. Business Overview of CIV
Unit: million VND

30,000
 
25,000
 
20,000
 
15,000
 
10,000
 
5,000
 
-­‐
2013
Pharmaceuticals
 

2014
Orthopedics

2015
Dentals

2016
Phama-­‐Cosmetic

(Source: Annual report of CIV)
In pharmaceutical industry, the competitor of CIV is RV Life. RV Life is cooperating
with many foreign manufacturers and has strategy like CIV. Their customers are also the
hospitals, clinics and the pharmacy shops. To highlight CIV business, we compare between
the two companies in term of sales revenue from 2013 to 2016.
Table 1.1. Sales Revenue of CIV and RV Life from 2013 to 2016
Unit: million VND
CIV

RV Life

CIV/ RV Life

2013

27,778

27,925

+-147

%
99%

2014

25,130

28,026

-2,896

90%

2015

26,214

28,200

-1,986

93%

2016

21,915

29,890

-7,975

73%

(Source: Annual report of CIV)


 

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During four years from 2013 to 2016, sales revenue of RV Life increased steadily. In
contrast, sales revenue of CIV reduced from 2013 to 2014, then increased from 2014 to 2015
and again dropped down significantly in 2016.
The number in tablet 1.1 shows that during the period of 4 years from 2013, sales
revenue of CIV dropped down significantly from 27,778 million VND to 21,915 million
VND, reduced 22%. This made CIV face big problem in their business.
Number of current customers lose annually and Increasing new customers is ineffective
Till year of 2013, the number of exploited customers of CIV is 350 customers. But in
2014, CIV lost 14 customers, then lost further 9 customers from year 2014 to year 2015. In
year 2016, CIV continue lost 5 customers.
The number of new customers of CIV was also reduced. In 2013, the number of new
pharmaceutical customers is 63 customers comparing with the previous year 2012 is 75 new
customers. In year of 2014 and 2015 the new customers further reduced. In year of 2016,
new customers were only 41, reduced 19 customers compared with year of 2015.


 

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Figure 1.3. Number of Pharmaceutical Customer

400

350

350

336

327

322

300
250
200
150
100

63

55

60

41

50
0
Year
 2013

Year

 2014
Number
 of
 New
 Customers

Year
 2015

Year
 2016

Number
 of
 Exploited
 Customers

(Source: Annual report of CIV)
In conclusion, CIV is facing some symptoms that are sales revenue reduced, number of
current customers also reduced and increasing new customers is ineffectively. So it is
necessary to find out a key problem of those bad symptoms to rectify such bad symptoms.
1.2.2. Possible problems
After having brief interview with the Board of Directors, the salespersons and the
customers, we disclosed that there might be some possible problems, which led to the
symptoms mentioned above. The detail questionnaire used to discuss is mentioned in
Appendix F.
1.2.2.1 Objective possible problems
From the year of 2013, lots of licenses of pharmaceutical products expired and could
not be renewed in time. To continue business, such expired licenses need to be renewed.

 

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However, the manufacturers could not provide sufficient documents in accordance with new
drug registration regulation ASEAN Common Technical Document (ACTD) of the Drug
Administration of Vietnam - Vietnamese Ministry of Health as per the Circular no.
22/2009/TT-BYT effected from 24th November 2009, so the customers of CIV who faced
expired licenses, had to find other suppliers to replace the products. This license problem
made loss on the current customers and also affect to increasing new customers of CIV.
Besides, licenses of new pharmaceutical products are extremely difficult to obtain.
Because time of doing renewal expired license as well as new registration for
pharmaceutical products is very long. Though the beginning of year 2012, CIV started doing
renewal for such expired licenses and registration for new pharmaceutical products too, but
because time for renewal/new registration is 2 years which is very long time, according to
new drug registration regulation and moj.gov.vn (November, 2016), so when Drug
Administration-Vietnamese Ministry of Health granted license for products, at that time it
already 2 years from the date of submission of products dossiers. So such granted licensed
products became obsolete and the customers of CIV lost interest in products. This made CIV
reduced sales revenue and the existing customers number.
The problem may also come from strategy of the customers. The customers changed
the other products category which they got market share and benefit, compared with their
existing product category. For instance, Mr. Thang, the director of Thanh Hang Pharma
Company changed to cardiovascular medicine instead antibiotic medicine because he found
more benefit in cardiovascular medicine, so he left the antibiotic which he was doing with
CIV. The salesman of CIV was unable to convince him to attach more with CIV. Besides,
some pharmaceutical customers worked with many suppliers simultaneously to reduce risk

 

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on supplying. Ms. My, the director of Nhan Sinh clinic revealed with Mr. Quan, the sales
director of CIV that she used to look for at least two sellers for one product so that if any
issue happened with the one supplier or if she got better quotation, she will change to the
alternative supplier. She also revealed with CIV’s director that she found conflict
information between the salesperson and marketing department of CIV. She asked the
salesperson that, is there any marketing program of company which help her enhance image
of products to her customers as well as help her customers understand deeply about products
so that her customers buy products. Telling to one by one customers about the CIV’s
products usage, indication and benefit will take time and may not ineffective, so some
marketing activity or any kinds of will help her a lot. The sales person told her that at that
time, company did not have any marketing activity. But when she talked to the company she
came to know that company is putting standees at some hospitals and advertise on websites
but the salesperson did not tell her. Study of FitzHugh and Piercy (2010) indicated
communication is one of four factors that are “internal” to the sales and marketing interface.
Within the interface, creating effective communications is used to improve the sales and
marketing interface. Therefore, CIV should look at this matter of conflict information
between salesman and other department at company.
1.2.2.2 Internal possible problems
The first internal possible problem that make CIV had bad symptoms may be capacity
of CIV’s salespeople, especially in capacity of negotiation and closing deal of salespeople.
Dimitrios (2010) stated that the negotiation methodology used allows salesman to negotiate
with customers in a certain geographical area based on their sales capacity. Obviously,
negotiation is a crucial component of sales. Negotiation is a controlled communication


 

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process that resolves the conflict of interest of two or more reasonable negotiating parties
(Perkov, D., Primorac, D., & Kozina, G., 2016). No matter what you’re selling, or to whom,
you need a reliable negotiation strategy that enables both parties to succeed in the deal
(Dolan, J., P., 2005). Ineffective negotiation may end up losing sales or not getting the best
outcome for sales people and company.
This low closing deal of salesman show clearly through the salespersons spent more
time to complete the deal. The salespersons spent so much of time and repeated cost in
approaching and convincing the customers to buy products. Mr. Luan, the sale executive
said that generally he spent around 3 weeks that is 21 days to win the customer, but from
2014 to 2016, he had to spend for almost 40 days to complete the deal. While RV Life had
lesser time to get the deal done. RV Life sales executive spent only 18 days in year 2013, 25
days in year 2014, 30 days in year 2015 and 2016 to win the customers.
Table 1.2. Average time to win customers
CIV

RV Life

2013

21 days

10 days

2014

28 days

25 days

2015

35 days

30 days

2016

40 days

30 days
(Source: Annual report of CIV)

The second internal possible problem that makes CIV lose in business may be unclear
price policy. Mr. An, the manager of Amy pharmacy shop answered interview that when he
negotiating price with salesperson, he understood that the salesperson did not clear the price
policy, he would have received 20% discount on price but the salesperson only informed


 

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him 15%. Ms. Hanh, chief of pharma department of Hong Duc hospital also said that she
was not satisfied with the price policy of CIV. The price is not fixed. Price is used to
increasing without informing her in advance. This throve her on the defensive, and she did
not how to report to board of director. She was thinking changing to other supplier.
The third internal possible problem that make CIV had such bad symptoms may be low

communications skill of CIV’s salespeople about knowledge of products and other
information of CIV. The medical representative could not communicate the information
effectively with the customers. For instance, Mr. An, the manager of Amy pharmacy shop
said that when the salesman first met him, he was very disappointed with the way that
salesman communicated about types of products which CIV is selling. Even when Mr. An
asked about the indication of medicine, the salesman was not able to answer. So he denied to
buy medicine from that salesman. He also shared that he met many medical representatives
daily from many companies and almost of them had very good knowledge about product as
well other related information to product. He also believed that the good company will bring
good product. So whenever he decided to buy any medicine, he always care about the image
of the seller.
Furthermore, as per the discussion with some new customers, we came to know that
many new customers did not feel about CIV role and other information about CIV from the
sale persons because the sales persons did not talk about CIV in business transaction. The
sales persons communicated about the products, prices and the manufacturers’ information
to customers but CIV role and other information about CIV. Mr. Phong, the director of
Nguyen Dong Company who is new customer said that when the salesman approached him
for antibiotic medicine Ceftazidime 2gm, the salesman only introduced to him about


 

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product, price and how big size of the manufacturer but the salesman did not say anything
about CIV. This made him have doubt on how CIV accompany him if any issue happens in
future. So he spent so much time on considering to cooperate with CIV. Since medicine is
extremely important to human body when the immune system was weak so it has to be good
quality. However, unfortunately if any issue happens, it may due to warehouse conditions,
the quality of medicine went down, at that time if the supplier is not trusted enough then the

customer has to be responsible in all which is very risky on their side. So Mr. Phong was not
convinced to buy product by the communication of salesperson until he had meeting with
the Mr. Quan, the sales director of CIV. In meeting, the sales director clarified to Mr. Phong
about the CIV as well as about the quality products which CIV are selling in markets. Mr.
Quan also clarified that CIV checked very carefully about the manufacturers whom CIV
associated with to make sure about the quality of products and the good quotation to bring to
the customers as well as high responsibility of CIV in product quality, so far to position CIV
brand to customers. Mr. Quan also said he is trying to build the concept that whenever the
customer thinks of buying new antibiotic or anti-inflammatory or anti-ulcer medicines, they
think of CIV. Also in the meeting, Mr. Phong understood more about some other products
which the salesman could not communicate to him. After meeting, Mr. Phong understood
very well about products information and the role, value of CIV which the salesman could
not transfer. Obviously, the corporate image is important as it is a basic on which the
customers choose to establish contact or business transactions with the company and
whether or not to attach good or ill will towards it (Schuler, 2004). The salesman also need
to understand this to communication verbally with customers to make customers to
understand and give decision of buying products.


 

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According to Berry, 2000 & Farrel (2001), salespeople of a company are one channel
for the communication of a brand's attributes, especially in service-oriented industries. Their
interactive and persuasive capabilities translate into emotions, such as trust, and thus have a
significant effect on brand equity, from there enhance sales performance. Also according to
Dortok (2006), employees are considered one of the most information sources about an
organization. This is so because they embody the corporate brand and interactions between
them and external stakeholders as much as (if not more than) traditional marketing

communications (de Chernatony, 2002). Good communication skill of salespeople in any
organization also is a key to build image of organization with the customers, develop trust
with the customers, help customers to understand clearly about the product and make them
to establish business transactions with CIV, from their company increase organization’s
sales revenue. So, the sales people need to have good knowledge of the products they are in
charged, all other information relating to the products and they also need to build CIV brand
to customers to make customers chose and attach with company. However, when we had the
interview with the customers, four over six customers said that they were not provided
sufficient information of products by the salespersons, or some salesperson only
communicated about products they are in charged, when they asked about other products the
salesperson did not convey proper information. Also, the customers did not understand
clearly about the role of CIV through the sales people, so they worry whether CIV supply
good product or not, so they delayed in deciding to buy products from CIV. Also according
to Asher, CEO at ASHER, “Because the art of selling is so dependent on persuasive and
believable information exchange, salespeople must be effective communicators. Great
communication is not simply what is conveyed, but how it is conveyed and how choice


 

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rhetoric, info and body language can drive relationships and sales.” Perhaps nowhere is this
more important than in service industries where employees are routinely the contact point
between a company’s internal and external environments and where the interactions or
‘moments of truth’ (Gummeson, 1999) can deliver the brand promise and create a powerful
image and experience among customers through – or not (Hardaker & Fill, 2005). According
to Lynch and Chernatony (2004), for B2B brands to connect with organizational customers,
emotional brand values need to be communicated effectively both within the organization as
well as externally through the industrial sales force.

In conclusion, there are five possible problems are existing at CIV. They are
government policy particularly long time renewal/ registration procedure, customers’
strategy, capacity of sales people, unclear price policy and communication skill of CIV’s
sales people. The first two issues are objective factors that CIV cannot give solution, the
problem of capacity of sales people and unclear price policy are caused by communication
of CIV’s sales people. So the main problem we decided to focus is that the problem of
communication about CIV of sales people.
1.3. Problem justification
1.3.1. Problem definition
As mentioned above, communication skills are very important to salesman. According
to Skillyouneed (n.d.), communication is simply the act of transferring information from one
place to another, and how well the information can be conveyed and received is a measure of
how good communication skills are. Furthermore, Hamid, Sara and Rabia (n.d.) also
indicated that effective communication depends on one’s competency in communication.


 

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Communication involves purpose and efforts from both the sender of the message and the
receiver. It's a process that can be filled with error such as with messages mess (i.e., mixed
up by the sender, or misinterpreted by the recipient). Miscommunication always should be
avoidable, because miscommunication may cause tremendous confusion if it not found.
Lawrence, Jeanne and Melinda (2015), also appointed that effective communication
combines a set of skills including nonverbal communication, engaged listening, managing
stress in the moment, the ability to communicate assertively, and the capacity to recognize
and understand one’s own emotions and those of the person that he is communicating with.
So to increase sales performance as well as the image or brand of company in markets,
the sales people must communicate clearly with their customers verbally and in writing both.

The sales people have to convey complex topics into easy-to-understand summaries for
customs who may not have a lot of knowledge in the areas in which they are seeking advice.
When a salesperson has a plan to approach customers, they should prepare all the relating
information about products, prices, role of company, marketing skill and sales skill so that
they can communicate with the buyer properly and effectively to improve sales performance
as one means to increase business of company.
1.3.2. Justify the existence of the central problem
We used the questionnaires of Ramsey and Sohi (1997), Takahashi and Miyaoka
(2006) and Pierrette Desrosiers (1999) and had depth interview with Board of Director as
well as had interview with customers and sales people of CIV to find out whether low
communication skill about information of salespersons is existing or not in CIV. The
questionnaire contains 11 multiple choice questions with seven points scale ranging from 1
(not agree) to 7 (totally agree) for understanding the level of communication about


 

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information of CIV of salespersons compared with communication of sales people from
other companies. The details of questionnaires and interview questions were enclosed in the
Appendix C, Appendix G.
Sixty questionnaires were sent to sixty customers to conduct the result of multiple
questions. Then we found that the average result of CIV’s salespersons were 2.43 to 3.72,
which indicate that CIV’s salespersons really have low communication about information of
products of CIV. The customers did not satisfy with the level of communication skill about
information of products of CIV’s salesperson, compared with the communication skill of
salesperson from other company like RV Life, especially when the customers were
approached new products. Ms. Lan, the owner of Tam Phuc pharmacy shop said that the
salesman from RV Life when approached her, he introduced clearly about the RV Life,

about manufacturer and especially clarified clearly her about all information of products of
RV Life. RV Life’s salesman could explain to her about the contraindication and side effect
of products when she asked while the salesman from CIV could not. When she wanted to
understand deeply about CIV so that she makes sure that CIV is strong enough in supplying
because before she faced with a case that the supplier could not supply continuously due to
week relationship with manufacturer. This made her lost in business. Besides interviewing
the customers, we also asked CIV’s salesman and got the similar result to the answers of
customers. Mr. Linh, who is the salesman of CIV said that because he did not get enough
training about products of CIV, he was trained on products generally, but not so deeply so
when he met customers, he tried to bring to customers all good information about CIV like
good service, good price. Regarding the products, what he knew he told the buyer. But
unfortunately the customers asked some information which he not well-cleared. The result of