Importance of Sales Management in Organizations

This assignment discusses the significance of sales management in organizations. It explains the concept of sales management, which involves planning, organizing, directing, and controlling the sales process to achieve organizational goals. The assignment also highlights various types of sales structures, including B2B and B2C sales, and evaluates their merits. Additionally, it covers the formative concepts of selling, forecasting, reporting, and sales planning, which are essential for effective sales management.

Sales Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Key principles of sales management in relation to importance of sales planning, methods
of selling and sale reporting........................................................................................................1
M1 Analyse how the principles of sale management will be different in response to customers
and business buying behaviour ..................................................................................................4
P2 Benefits of Sales structure and their organisation..................................................................5
P3 Importance and advantages of concept of “ selling through others”.....................................6
REFERENCES................................................................................................................................9

INTRODUCTION
Sales is termed as a transaction that takes places in between two consecutive parties in
relation to buying and selling of goods and services in return of any related consideration or
money (Drucker, 2012). Sales management is a process in which development of effective sales
force and formative coordination takes place. This process executed in between sales operations
with the help of appropriate techniques and lead towards effective surpass to business towards
setting sales targets which is done by top management of an organisation. These targets include,
formative management of sales operational activities that consists, pricing, product
merchandising, advertising, promotion, distribution and marketing. Present case study has been
conducted on, Ford Motor Company which is a multinational auto maker established in the 1903
by Henry Ford. Entity engage in the process of offering SUVs, Automotive parts, Luxury
Vehicles, Commercial Vehicles and Pickup trucks. In this report, formative discussions have
been made on, key principles of sales management which is associated with reporting, planning
and other related methods of selling. In addition to this, report covers advantages of sales
structure along with importance and formative benefit of selling through others.
P1. Key principles of sales management in relation to importance of sales planning, methods of
selling and sale reporting
Sales management is considered as the most essential practice for an organisation, as in
this the operations which take place involve sales of their products and services offered by them
to their customers. Along with this, another operation which is associated to this are products of
these products and services. The objectives behind sales management of an organisation is to
improve their sales and revenue along with increase in their profits. Ford is one of the biggest car
selling organisation of the world, which have a proper sales management in their operations. This
help them in managing their sales and revenue (Evans and Campbell, 2012). Therefore, it is the
duty of their revenue manager to manage strategies and make sure that their organisation huge
amount of profits by increasing their sales and revenue.
Along with all this, ample number of training and development sessions which Ford use
to provide to their employees, so that their skills and knowledge regarding sales get improved.
Along with this, for revenue manager it is very much important for them to make proper sales
report, which is document that contain list of items sold by them along with the locations in
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which they are sold. Also, it is necessary for manager of Ford to follow some principles of sales
management, which are explained below :-
Manager makes significant difference : Quantity of revenue and sales generated by an
organisation help them in identifying the skills, capabilities and potentials of revenue and sales
manager working for them. Along with this, it is analysed that the sales manager with proper
skills are able to improve the performance of their employees and also help Ford in reducing
their work force turn over, which results in improvement to products and services they use to
produce. Along with this, it helps Ford in increasing the number of loyal customers which get
retained for long time period with them.
Lead by setting example : For sales manager of Ford it is very important for them to
make a culture and discipline in their work place and have to set an example for this. This will
help them in guiding their employees, so that they can give their best to organisation and also can
increase sales and revenue of them. This all results them in increase in profit made by them.
Golden rule of Sales Management : Man power is very much essential for Ford, as they
are the person which use to work for them at global level and help them in making sales of
products and services offered by them. Therefore, it is very clear that their role in sales, revenue
and profits of Ford cannot be ignored in favour of organisation. That's why it is very much
important for them to treat their employees and man power as most valuable resources of them.
Therefore, managers working in Ford use to provide proper respect and facilitates to their
employees, so that they can coordinate and cooperate with them.
Be goal-oriented : For sales manager of Ford, it is very much essential for them to set
goals and objectives which their team and employees have to attain. Along with this, it is very
much important for them to make small goals for small time which are related to their long term
goals. This all help them in increasing the sales and revenue of Ford, by which their profitability
also gets increased.
Relation of sales management with sales planning, methods of selling and sale reporting
For a business which use to make products and services for providing them to their
customers, sales management is key operation which they use to perform. This key operation is
associated and related to different other operations like sales planning, method of sales and it's
reporting. Therefore, the major factors which are used by manager of Ford for making and
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shaping the strategies of sales are effective planning, controlling, organisation and monitoring of
the plans which will help them in increasing their sales and profits. Relationship between all
these factors and sales management in Ford is explained beneath:-
Effective Sales Force: It is important for an organisation to hire best effective and skilled
employees those who holds a calibre to generate attention of population towards organisation
product and services. Labour force acts a most important element within an organisation on
which sales targets is depend. Effective and qualifies employees those who holds in-depth
understanding of organisation products and services, consumer needs and market situation lead
towards high end outcomes for company (Wang and Miao, 2015). In relation to this, in the
working structure of ford formative and adequate amount of training is given to employees as to
increase their effectiveness towards complex situations. In addition to this, it also benefits an
organisation to increase sales team capacity in order to deliver best effective outcomes.
Development of an effective reporting system:
Reporting acts as an integral part in a sales management. Reporting in an effective way
ensure reliability and validity of employee’s performance in a sales team. In Ford, manager of
each department effectively devise appropriate reporting process that aid them to determine
individual performance along with this it also benefits organisation to make decisions in a
strategic way. With help of this, company can effectively able to insight their sales growth and
analyse other future growth aspects.
Acknowledgement of present and future situation through sales planning:
In order to conduct sales management activities in an effective way it is essential for
managers to evaluate market conditions in a futuristic way. This will effectively aid managers to
analyse preferences and actual needs of customers. Lack of internal and external knowledge of
business environment affect sales management process of fragmenting policies. Thus, it is
essential to balance a link in between sales planning, sales management and sales forecast. In
context with this, Ford management effectively ensure that process of sales forecasting and
planning is done by team in order to get best effective results while accomplishing activities in a
timely manner.
Looking for creative ways of selling:
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As to grab attention of customers in this modern competitive market uniqueness plays a
key essential role in sale. With the help of creative and unique selling methods sales performance
team can effectively able to acquire attention of large customer base towards actual offering of
company products and services of organisation. In relation to this, Sales manager of ford
effectively encourage their team members to take advantage of different type of innovative
measure which can aid them to increase overall profits and revenue of organisation (Johnson,
2015).
M1 Analyse how the principles of sale management will be different in response to customers
and business buying behaviour
Buying behaviour of a customer acts as a key catalyst in order to strategies and
procedures of sales management. Mentioned below there is a selling system of organisation
which is mainly classified into two basic modes:
(A) Business to business (B2B)
(B) Business to customer (B2C)
Consumer Buying behaviour process
Consumer behaviour is a continuous and formative study of attitudes, needs, choice,
wants and reaction of consumer regarding to particular good or device. In this modern dynamic
world, tastes and preferences of consumers are changing in a fast phase. In recent market trends,
it has been evaluated that nowadays consumers are becoming more delicate towards feature,
quality and price of the product (Smith and Zook, 2012). Major focus of Ford while performing
their activities and making deal with consumers is on price of a product and quality quotient
which is being offered by company in a marketplace. After the effective evaluation of consumer
buying behaviour, strategies and policies is required to be devised in a effective manner which
will further aid an organisation to assist to effectively evaluate buying behaviour of consumers
and frame suitable strategies and policies accordingly which will further assist organisation to
satisfy needs and demands of their customers in best effective manner in a stipulated period of
time while ensuring high quality standards.
Business Buying behaviour process
Business buying behaviour is mainly shaped by formative structure of customer
behaviour model only. It is important for an organisation to effectively consider major
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components of communication while engaging with business buying behaviour. It will allow
them to efficiently communicate specifications and features of goods and services to organisation
client. In context to this, Ford implemented effective communication system within their
workplace structure in order to conduct organisation operations of business to business sales in
best impelling manner.
P2 Benefits of Sales structure and their organisation
Sales structure effectively benefits sales department of an organisation to prevent any
type of miscommunication within company workplace and further encourage formative
coordination in between employees. An organisation takes advantage of sales structure as to
conduct sales process of company goals and objectives in a smooth and effective way. It consists
handling of different inbound sales, business development and cold calling. Absence of sales
structure adversely affect overall sales process and product requirement of Ford. In order to
effectively maintain a balance in high conversion rates well structured sales structure is utilized
by Ford. Mentioned below there are numerous kinds of sales structure:
Geographic Structure:
This process is one of the most generalised form in the sales force in which management
and sales responsibilities are segregated as per the geographical area. Geographical structure is
also known as, territorial sales force structure, in which employees bought together form various
different locations (Hitomi, 2017). In the context of Ford, all these types of division work as
individual organisations where their conduct business functions according to the company
requirement. Mentioned below there are some benefits of this structure:
 Close geographical proximity aid Ford in effectively forecasting of building a positive
and healthy form of relationship that will further benefit them in increasing their sales
effectiveness.
Product sales structure:
This form of sales force is consists in which salesperson is superior and expert in selling
ideas, products and services. That type of salesperson only acquainted with just some product of
entity and have no information about other related product of a company. As Ford engage in the
offering of wide range of products and services to customers in different geographical location.
For this, company have adopted united structure of sales force which is created through,
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products, customer, territory. Mentioned below there are some benefits of product sales
structure:
 Salesperson emerged as an expert at selling particular range of product.
Market based structure:
This structure is also termed as a consumer sales force structure in which sales
representative are mainly grouped according to industry and consumer. In Ford roles and
responsibilities of their salespersons is to provide products and services to consumers as to gain
more profitability (Havaldar and Cavale, 2017). For example, Ford is a car manufacturer and
dealer for this it is essential for salesperson to have adequate amount of knowledge related to
cars. Mentioned below there is benefits given of this structure:
 Salesperson effectively know and provide adequate requirements of customers in best
effective way. It will help in building a strong and positive relationship in between them
which aid company to retain them for long time.
M2 Critically analyse execution of various sale structure types using organisational example.
It is crucial for sales manager of a business to adopt amendable sales structure so that
they can earn revenue and profit as per their desired target. There exists different sales structure
and each have their own affirmative and disadvantages which reflects extent up to which they
can assist Ford to be effectual. With respect to geographical structure, benefits are satisfactory
and possess relevant territorial management which results in little replication of efforts with
respect to customers. Disadvantage of this structure is sizing various territories that becomes
tough challenge and can lead to crinkled sales and opportunities. With reference to product sales
structure, vantage is that sales representatives can achieve product expertise whereas duplication
of efforts can lead to enhancement in expenses as well as cost of Ford. With respect to market
based structure, benefits lead to strong and healthy relationship with customers which further
leads to improvisation in loyalty of customers. The major disadvantage of this process is that
process is time consuming and also it is vast which needs lots of investment for its maintenance.
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D1 Coherent and justified assessment of understanding of sales management, selling techniques
and structure within organisational context.
It is determined that selling techniques, sales management and different sales structure
comprises of their own worthiness and demerits which have been already described. Thus, it is
essential for sales manager of Ford to formulate policies by taking into consideration these
aspects and undertaking steps which can eliminate drawbacks to improvise benefits.
P3 Importance and advantages of concept of “selling through others”
Selling through others is a concept which consists a quantity of percentage in which
products and services are sold by any retailer. It is mainly evaluated for a specific time period
mainly just for a month. In relation with Ford, it is essential to effectively replenished company
inventories within a particular and appropriate period of time span to their customers on a regular
basis. Ford by taking advantage of different channels of distribution can effectively sell their
products and services. It mainly includes, manufacturer-retailer-customer, manufacturer-
wholesaler-retailer-customer, manufacturer-customer.
Importance of selling through others
Taps into existing consumer base:
It is one of the most important factor in which is essential to create a strong and effective
customer base. Ford can effectively from effective and efficient relationship with their
consumers by conducting their business operations with various retailers, and wholesalers. Thus,
with the help of formation of best strategies company can benefit their consumers. This will help
them to satisfy their customers at their best while increasing their brand image on simultaneous
way.
Enhance level of market growth:
This is most effectual process as more channels of distribution facilitates Ford to
improvise growth of their products within marketplace. AS Ford provide wide range cars, they
have large number of distributors which assist them to enjoy recognition within market.
Advantages of selling through others
Provide transactional functions:
Intermediaries take advantages of their contacts through which they offer their services in
entire marketplace. This will effectively benefit consumers and manufacturers to accomplish
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their organisation objectives and goals in well-defined manner. In context with Ford consumers
feel more easy to take access of company products and services they provide their services in
central location. This will aid company to effectively increase their sales margin at high level.
Burden mutuality, time and cost saving:
In this, intermediaries, wholesalers and retailers those who equally share responsibilities
of effectively manufacturing company by considering stock management, setting up sales,
account storage etc (Goebel and Kennedy, 2013). All these intermediaries in Ford effectively
share overall expenses that has been made during advertisements and promotion of products and
services. This will aid company to effectively perform their services in well defined manner.
B2B:
Business to business selling process include a formative series of steps, events, phases
that generally occurs when a business unit sell their products and services to other business unit.
This type of functioning is mainly found in auto mobile manufacturing like Ford.
CONCLUSION
As per the above mentioned report, it has been concluded that sales management acts as
one of the most important process in an organisation which help them to engage in effective
selling of company products and services. It will automatically help in increasing sales and
revenue of company. In this report formative discussions have been made on, forecasting,
reporting and sales planning which is linked together in order to ensure that organisation sales
targets is effectively accomplishing. In addition with this, it has been evaluated that, there are
numerous types of sales structure that has been adopted by an organisation and all these structure
have their own merits. Lastly, this report covers, formative concept of selling.
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REFERENCES
Books and Journals
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What Do Sales People Think?. Journal of Marketing Development and Competitiveness.
7(2). pp.11-22.
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Cases. McGraw-Hill Education.
Hitomi, K., 2017. Manufacturing systems engineering: A unified approach to manufacturing
technology, production management and industrial economics. Routledge.
Homburg, C., Schäfer, H. and Schneider, J., 2012. Sales excellence: systematic sales
management. Springer Science & Business Media.
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Personal Selling & Sales Management. 35(4). pp.334-345.
Johnson, J. S., 2015. Qualitative sales research: An exposition of grounded theory. Journal of
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Shaw, S., 2016. Airline marketing and management. Routledge.
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Wang, G. and Miao, C. F., 2015. Effects of sales force market orientation on creativity,
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pp.2374-2382.
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