National Certificate : Diploma in Business : Sales Management

National Certificate/Diploma in Business
Assignment Brief
Student name/ ID Number Yash Sawant
Unit Number and Title 39 Sales Management
Academic Year 2019-20
Unit Tutor Mr. Husain Habib
Assignment title Sales Training and Sales structure & Finance strategy
Issue Date 03/04/2020
Submission Date 04/08/2020
IV Name & Date Ms. Shreya Kanjariya- 06/08/2020
Submission Format:
Task 1( LO1 & LO2, LO3 & LO4)
The submission is in the form of an individual written report. This should be written in a
concise, formal business style using single spacing and font size 12. You are required to make
use of headings, paragraphs and subsections as appropriate and all work must be supported
with research and referenced using the Harvard referencing system. Please also provide a
bibliography using the Harvard referencing system. The recommended word limit is 9,000 to
9,500 words, although you will not be penalized for exceeding the total word limit.
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Unit Learning Outcomes:
LO1 Demonstrate an understanding of the principles of sales management.
LO2 Evaluate the relative merits of how sales structures are organised, and recognise the
importance of ’selling through others’.
LO3 Analyze and apply principles of successful selling.
LO4 Demonstrate an understanding of the finance of selling.
Assignment Brief and Guidance:
You are the Sales Manager for a medium/large local organization and once a year there is an
sales meeting with all the sales representatives all across the country. You have been asked
by your Sales Director to write a report that will be given out at the annual sales conference.
The report should include the following:
•An introduction to the organization.
•Definition of sales management.
•Explanation of the key principles of sales management, focusing on planning, selling and
reporting. You may evaluate how principles of sales management will be different in
response to consumer and business buying behavior.
•Defining and explaining sales structures.
•Using examples from your own organization, as well as other organizations, to evaluate the
benefits of sales structures and how they are organized. You may critically evaluates the
implementation of different types of sales structure using specific organizational examples
(e.g. geographic, marketing, product sales).
•Describe the concept of ‘selling through others’ and explain the importance and advantages
of using this sales technique. Use relevant examples to enhance your answer.
•Describing and explaining the key principles and techniques of successful selling.
•Analyzing how these principles and techniques contribute to building and managing customer
relationships. Use examples from your own organization as well as from other organizations.
You may critically analyze the application of successful selling principles and techniques in
application to specific organizational examples.
•The student may produce a coherent, fully justified critical evaluation based upon a
comprehensive understanding of sales management, structure and selling technique within
an organizational context.
•Explaining the importance of developing sales strategies that yield highest profitability and
incorporate account management within sales structures. This may also have evaluation of
how core finance principle and successful portfolio management can lead to increased
profitability and competitive edge. This can be critically evaluated and make
recommendations on how sales structures and approaches can improve financial viability.
•Conclusion
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Grading Criteria
Learning Outcome Pass Merit Distinction
LO1 Demonstrate an
understanding of the
principles of sales
management
P1 Explain the key
principles of sales
management in
relation to the
importance of sales
planning, methods of
selling and sales
reporting.
M1 Evaluate how
principles of sales
management will be
different in response
to consumer and
business buying
behavior.
D1 Produce a
coherent, fully
justified critical
evaluation based
upon a
comprehensive
understanding of
sales management,
structure and selling
technique within an
organizational
context.
LO2 Evaluate the
relative merits of
how sales structure
are organized, and
recognized the
importance of ‘selling
through others’.
P2 Evaluate the
benefits of sales
structure and how
they are organized,
using specific
organizational
examples.
P3 Explain the
importance and the
advantages of the
concept of ‘selling
through others’.
M2 Critically
evaluates the
implementation of
different types of
sales structure using
specific
organizational
examples (e.g.
geographic,
marketing, product
sales).
LO3 Analyze and
apply principles of
successful selling.
P4 Analyze the key
principles and
techniques for
successful selling and
how they contribute
to building and
managing customer
relationships in
application to
specific
organizational
examples.
M3 Critically analyze
the application of
successful selling
principles and
techniques in
application to specific
organizational
examples.
LO4 Demonstrate an
understanding of the
P5 Explain the
importance of
M4 Evaluate how
core finance principle
D2 Critically evaluate
and make
3

finance of selling. developing sales
strategies that yield
highest profitability
and incorporating
account
management within
sales structures.
and successful
portfolio
management can
lead to increased
profitability and
competitive edge.
recommendations on
how sales structures
and approaches can
improve financial
viability.
4

Index
Executive summary ……………………………………………6
Introduction ……………………………………………………7
Explain the key principles of sales management in relation to the importance of
sales planning, methods of selling and sale reporting ………….8
Evaluate the benefits of sales structures and how they are organized using
specific organizational examples ………………………………15
Explain the importance and the advantages of the concept of ‘selling through’
others..…………………………………………….……………..23
Analyze the key principles and techniques for successful selling and how they
contribute to building and managing customer relationships in application to
specific organizational examples ….……………………………38
Explain the importance of developing sales strategies that yield highest
profitability and incorporating account management within sales structures..
……………………………………………………………………….41
Bibliography …………………………………………..………...44
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Executive summary
The topic for the paper below is sales management. The paper begins with understanding the
key principles of sales management for an organization, such as Vijay sales. The author also
incorporates the consumer buying behavior and businesses buying behavior in relation to the
key principles stated. The various sales structures present for any organization is explained
with graphical illustrations and the author presents the sales structure used by Vijay Sales and
its competitor, Croma. The sales structure for Vijay sales is critically evaluated by the author.
The concept of selling through others is explained in order to understand the practical aspect
of it. In order to have successful selling and a relationship with customers, an organization
must be able to combine their key principles of sales management along with the techniques
of sales. Finally, the author explains the importance of sales strategies in order to gain high
profitability for the organization as well as the sales structure for Vijay sales that allows them
to identify their key account managers.
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Sales Management
Vijay sales is a partnership firm owned by Mr. Nanu Gupta. Vijay sales is one of Mumbai’s
leading chain of electronic stores, and have spread across India. They have exquisitely
designed and conveniently located outlets that cater to all kinds of customers with various
budgets and preferences. They offer one of the best quality and service in their industry. They
promise to satisfy their customers’ needs and provide efficient after sales services.
The turnover for his partnership firm was Rs 3,250 crore last financial year and is close to
touching Rs 3,700 crore in 2017-18.
Image 1.1
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Explain the key principles of sales management in relation to the importance of sales
planning, methods of selling and sale reporting
Sales management is defined as the efforts put forth to attain a company's sales objectives.
Sales management can involve any of the following activities: (1) formulation of sales
strategy through development of account management policies, sales force compensation
policies, sales revenue forecasts, and sales plan, (2) implementation of sales strategy through
selecting, training, motivating, and supporting the sales force, setting sales revenue targets,
and (3) sales force management through development and implementation of sales
performance, monitoring, and evaluation methods, and analysis of associated behavioral
patterns and costs. (BusinessDictionary.com, 2019)
This means that sales management is the method of producing a sales force, coordinating
sales operations, and implementing sales techniques that enables a firm to consistently
surpass its sales targets.
Key principles of sales management
1. Sales planning
Sales’ planning is a dynamic but essential process of sales management. A good sales plan
includes how the company is planning to reach the customer, and what is the after sales
service plan of the company. It also includes building a profitable customer oriented sales
team.
Sales’ planning also includes recruiting and training sales personnel and to direct the sales
team. Recruiting sales personnel is an integral part of sales management. It includes
analyzing the open position, creating a job description and qualifying the applicants. It
ensures the right people are hired to sell and lead. An untrained sales professional is a costly
investment for the company. Instead, it is better to train sales professionals and keep
upgrading their skills so that they perform in the market. It ensures the sales personnel to be
educated in order to satisfy the customers. Team management is a crucial part of sales
management. A coordinated sales team can perform better than an uncoordinated sales team.
The sales team must coordinate with the product team, the service team, the logistics team
etc. It involves guiding people to perform at above average level.
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At Vijay sales, one of the objectives is to gain market share in the e-retail business. Thus,
their sales planning objective is to penetrate the e-retail market in order to increase their
market share. The sales set up and necessary channels must be in place. An organized plan
would be required during the sales planning process.
Importance of sales planning
 It helps the business to forecast potential problems so that they can try and mitigate
them beforehand.
 It puts the business in control by helping them determine their product’s current
status, where they want to take it, and how they will take it there.
 It helps a business to develop strategies according to the culture, needs, and
requirements of each consumer market.
2. Sales reporting
Sales management is tasked with developing and analyzing KPI’s. By understanding these
indicators, it becomes easier to track and improve productivity. These reports allow
evaluation of the sales and performance.
Going back to the first example of sales planning, where Vijay sales wanted to gain market
share in the e-retail business. If their sales reports show that they have succeeded in
penetrating the e-retail market, it will help them to set objectives for the next year. However,
if they fail to do so then they will have to study the causes of failure and their ales objectives
must be re-planned.
Importance of sales reporting
 Gives real-time view of the businesses sales activities and quickly allows them to
understand how their team is performing, compare results, and identify opportunities
for improvement with complete clarity.
 Business reports are important for critically analyzing financial reports, performance
reports and areas in which the business is doing well or poorly. Understanding the
available data leads to a cause-and-effect approach to solving performance problems.
 Reports show performance across quarters and for the entire year, in the case of
annual reports.. Benchmarks and goals are set by the company by reviewing their
performance trends.
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 Reports help business leaders to develop and make strategic decisions. They use the
data to back their decisions and to justify their move. Shareholders will use reports to
monitor their value and make high level decisions about top level management
capable of improving their overall invested value.
3. Customer satisfaction
Sales’ planning allows Vijay sales to achieve the key principle of customer satisfaction by
devising tactics and strategies in order to ensure there is a high level of customer satisfaction.
Vijay sales do so by offering 90 days to customers to exchange or return their product. They
also offer customer service where customers can come to fix their appliances with or without
warranty. Along with providing the best service, they also provide the customers best value
and the best products in the industry.
The sales reporting would enable Vijay sales to gain an insight on if customers were
genuinely satisfied with their purchase or their service offered. They would be able to gauge
their standing within the customers. They can do by conducting surveys of their customers,
asking appropriate and relevant questions about their satisfactory level with Vijay sales. The
report will enable Vijay sales to track and measure their performance and would allow them
to strive for better.
In B2B selling, Vijay sales must ensure that they offer the best price, best quality and the best
product in accordance with the needs of the company. They must provide the best possible
deal in order o convince the team of decision makers.
Customer satisfaction in the business buying behavior at Vijay sales would mean that the
business who is dealing with Vijay sales to buy a certain product for their office/work process
would need to be satisfied at every step of the process. For example, Vijay sales would want
to ensure they close the deal with the business as they would buy in bulk and it could lead to
a long lasting relationship between the business and Vijay sales if they are satisfied. For this,
they would offer the best price possible and would have to succumb to the price quotation
provided by the business in order to ensure that they do not lose the sale. Abiding by all the
requirements by the business would lead to them being satisfied.
In B2C selling, Vijay sales must know the exact requirement of the individual as he/she
would be the decision maker and in order to have a satisfied customer the representatives
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from Vijay sales must be able to provide information and sell the product according to the
requirement of the customer.
Customer satisfaction for consumer buying behavior at Vijay sales would mean that the
customers at Vijay sales would be satisfied by the products offered and the service by Vijay
sales from the point of meeting to the final selling of the product. Here, the customer
satisfaction is when the sales representatives have properly recognized the need of the
customer and is able to satisfy the need effectively. The difference between business buying
behavior and consumer buying behavior for the satisfaction level is that in consumer buying
behavior, Vijay sales would try to convince the consumer for the price best suited for Vijay
sales rather than adjusting to the consumers price demand, as seen in the business buying
behavior.
Advantages of customer satisfaction
 Customer satisfaction builds trust. Customers will only stay loyal to Vijay sales if
they work hard to keep customers and build their trust in their brand. By providing the
best in customer satisfaction, Vijay sales increase trust of their customers.
 Customer satisfaction matters more than the price. To get the right experience,
customers are willing to pay higher prices.
 Customer satisfaction is a factor that helps to stand out of the competition. Not all
companies like Vijay sales can provide excellent customer satisfaction, those who can
achieve this have a competitive edge over other.
 Satisfied customers will recommend Vijay sales to their network. Those customers
who are satisfied with the customer service at Vijay sales are likely to recommend
them to their friends and family. Promotion to word of mouth is effective in spreading
the kind of customer service offered by them.
4. Increasing sales volume.
Vijay sales sell appliances of other brands as well as produce their own appliances and sells
at a cheaper price than other brands. The prime responsibility of the sales department is to
build up higher volumes of sales. This higher volume of sales leads to greater production and
economies of scale.
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Sales planning to increase the sales volume would mean that Vijay sales can boost the
average sale per customer by 10% using add-on sales. Such strategies and plans would enable
for them to increase their sales volumes.
Sales reporting for increased sales volume would show if Vijay sales were able to increase
their volume of sales per quarter/ annum. In the case of the sales volume not increasing, it
would help them to determine which outlet lags, which product is not being able to increase
the sales etc and so allowing them to work on the same, by changing their strategies. It will
also help in sales forecasting, allowing Vijay sales to check the past data to plan for strategies
to help increase the sales in the future. This will lead to increasing sales volume and Vijay
sales would be able to target their sales effectively based on the previous data.
Methods of sales
1. Content selling
Content selling is the use of advertising agencies to create brand awareness and customer
knowledge to find out why one product is superior to another. They educate buyers on the
features and benefits of specific products, to thereby increase the sales. This method moves
away from commodity selling by being able to charge a higher price due to brand awareness
and buyer satisfaction.
Vijay sales uses content selling by placing TV advertisements of their products and what they
have to offer. Alongside this, they have effective sales staffs that have sufficient knowledge
about every product in the store in order to convince customers to buy their products. They
also provide descriptions of each product, like the specifications, model, details, processor
besides each product for comparison and informative purposes. As for Vijay sales they
provide warranty on all their products which is not offered by the electronic brand, but
however Vijay sales provide warranty on all products sold at their store.
2. Consultative selling
In consultative selling, the focus is on understanding the deeper needs, requirement and
buying motives of the customer and then ensuring their product matches with the needs and
motives. Having known those customers’ value different things, this method requires some
diversity.
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Vijay sales also uses consultative selling wherein before showing customers the products, for
example- TV’s, laptops, phones etc they first try to find out what the customers requirement
from the product, what they intend to use it for (their purpose of buying), number of hours of
use, budgets etc. After understanding thoroughly what their customers want and expect, they
show products suitable for their customers’ usage and requirements.
3. Direct selling
This is where a team of sales people meet with corporate executives and customers to close
sales. It is best used for high ticket items which must be sold in complex situations involving
a number of decision makers.
4. Business to business (B2B)
Business-to-business sales (B2B) are just that, sales from one business entity to another.
Here, the company buys in larger quantities as they may purchase goods for multiple outlets
or employees. The buying decision is mainly financially driven as they have to report to
others in the organization. (Investopedia, 2019)
The steps in a business-to-business (B2B) selling process are:
 Recognize the Problem
The first step is to understand the problem the prospective customer is trying to solve, and
their ability to pay for the product or service. Prospective questions must be posed about their
reasons for purchasing a phone system and what they currently have in place. They must also
be asked about their budget for the implementation.
 Develop product specifications to solve the problem.
Once the business understands the prospects needs and financial means, they need to evaluate
the various products they have to offer and develop a customized solution for them that meets
both their needs and budget.
 Search for and evaluate possible products.
The prospective customer is provided with a customized solution and all customer questions
can be addressed. The solution may be modified with customer input prior to finalizing.
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 Select product and order product
Once the terms are agreed on, a purchase agreement, or contract, is signed to finalize the
agreement. The final proposal is sent to client, along with a contract they can sign and return
to begin the process. Once the signed document is received, the sale is complete and the
implementation process will begin.
An instance where B2B selling is applicable at Vijay sales is when for example, an IT
company wants to purchase 50 laptops for their office and needs the correct model for their
office in terms of price, durability and its functions. It is the sales personnel at Vijay sales
who will guide them based on the step above in order to successfully sell their products.
5. Business to consumer (B2C)
Business to consumer (B2C) refers to the transactions conducted directly between a company
and consumers who are the end-users of its products or services. (Investopedia, 2019)
This is the main selling method of Vijay sales wherein they sell to individual customers daily.
For example, if a customer wants to buy a laptop from Vijay sales the sales personnel would
help guide the customer from the brand, to the model, and to the price of the product up until
the laptop has been sold to the customer.
To conclude, the author has effectively explained and evaluated the key principles of sales
management for Vijay sales. The author has analyzed the importance of the key principles in relation
to sales planning, selling, and reporting.
Evaluate the benefits of sales structures and how they are organized using specific
organizational examples.
14

Explain the importance and the advantages of the concept of ‘selling through’ others.
Sales structure is the organization of individuals either working together for the marketing of
products and services manufactured by an enterprise or for products that are produced by the
firm for the purpose of reselling. The sales structure defines duties, roles, rights and
responsibilities of sales people engaged in selling activities meant for the effective execution
of the sales function. It is a structural body through which the functions of sales management
are carried out.
The author has chosen a second organization that is Croma. Croma is a one of its kind’s
specialist retail store that caters to all multi brand digital gadgets and home electronic needs.
They have stores all across India, in 19 cities. (Croma.com, 2019)
Types of sales structures
1. Geographical sales structure
Geographical sales structure suits businesses that have units in different regions or
geographical areas. This form of structure enables businesses to have a reporting and
functional system across multiple locations and operate at separate sites according to the local
demand but still be directed by business policy.
Vijay sales uses a geographical sales structure as they have 43 outlets in Mumbai, 15 outlets
in Gujarat, 15 outlets in Delhi, 5 outlets in Haryana and 4 outlets in Uttar Pradesh. Their sales
structure is as follows:
15

Figure 1.1
Having a geographical sales structure allows Vijay sales to have a focused sales team as the
sales people specialize in a particular area; they research it thoroughly and understand the
market. Their sales approach/ technique to a suburban area will vary from an inner city area
or rural town. Vijay sales have placed their outlets in areas that are easily accessible to their
customers.
Croma also has a geographical sales structure wherein they group activities based on the
geographical locations they operate in. As tastes and brand responses vary from region to
region, having a geographical sales structure allows them to be flexible in the products that
they offer.
The geographical sales structure at croma is as follows:
16
sales director
regional sales
manager 1
area sales
manager
area sales
manager
area sales
manager
regional sales manager
2
area sales
manager area sales
manager area sales
manager
regional sales manager
3
area
sales
manager
area sales
manager
area sales
manager
Sales people

Figure 1.2
Advantages of geographical sales structure:
 It is a simple structure. Each sales person at Vijay sales is assigned an area/region
over which they have sole responsibility for sales achievements.
 Leads to decreased travel time and increased selling time. Since clients are present in
the specific geographical area, travel time reduces and allows Vijay sales to save on
travelling expenses.
 Local management can help Vijay sales to take decisions about local markets.
Disadvantages of geographical sales structure:
 It becomes easy for the decision making process to become decentralized.
 Limiting growth from ambitious sales professionals. Vijay sales may unintentially
send an ambitious sales representative to an outlet that isn’t active. Thereby, affecting
his motivation to work in a new geographical area and outlet.
2. Product sales force structure
17
general sales
manager
eastern sales
manager
district sales
manager
individual
sales people
district sales
manager
individual
sales people
district sales
manager
individual
sales people
western sales
manager
district sales
manager
individual
sales people
district sales
manager
individual
sales people
distict sales
manager
individual
sales people

Product sales force structure is a framework in which a business is organized in separate
divisions, each focusing on a different product or service and functioning as an individual
unit within the company.
Croma uses product sales force structure where they assign employees into self-contained
divisions based on a certain line of products or services, the customers dealt with and the
geographical location they serve in. The product sales force structure at croma is as follows:
Figure 1.3
Advantages of product sales force structure:
 Allows small businesses to go to markets with new offerings fast. Small businesses
can easily adopt new products as each division operates as a single unit, allowing
them to make decisions quicker and act upon the same faster.
 Ensures all Croma sales representatives have good knowledge of products and
services. As the structure shows each product at Croma has its own manager and sales
people, allowing the sales representatives to specialize in that product and gaining
sufficient knowledge on all products that fall under that category.
 Specialization of selling skills. Having the sales representatives have sufficient
knowledge on products by category enables them to only specialize their skills in that
department of products.
18
sales director
product sales
manager
sales people sales people
product sales
manager
sales people sales people
product sales
manager
sales people sales people
Television A/C Laptops

 This structure allows Croma to pay more attention to the new products. Each
individual unit at Croma can concentrate on the new products available, such as
televisions, A/C’s and laptops. Each unit is responsible for their own types of
products rather than having one unit that is chaotic by concentrating on all kinds of
new products available.
Disadvantages of product sales force structure:
 The organization could end up with duplicate resources as various divisions strive to
develop new offerings. As Croma strives for autonomy within the divisions, each
division may have duplicate resources.
 Higher costs. Croma would require more number of sales staff that would increase
their costs. There is also increased labour costs and sales people would have to travel
which further increases time spent travelling and overall costs.
3. Market based sales structure
A market based sales structure is where the divisions of an organization are based around
markets, industries, or customer types. The market based structure is apt for businesses that
have products or services that are unique in particular market segments. Such businesses also
keep informed of demand changes amongst various audience segments.
A typical market based sales structure is as follows:
19
CEO
commercial
division
marketing sales services
resedential
division
marketing sales services
government
division
marketing sales services

Figure 1.4
Advantages of market based sales structure:
 Good customer knowledge
 Good for monitoring changes and trends within markets.
 Can encourage healthy competition between departments.
 Flexible structure.
Disadvantages of market based sales structure:
 High level of autonomy within market based teams’ leads to departments developing
incompatible systems. (complicates coordination)
 High costs.
 Geographical duplication.
4. Functional sales structure
The functional sales structure departmentalizes an organization based on common job
functions.
Vijay sales use the functional sales structure where they group all of the home appliance
people in one department, all of the personal appliances people in a separate department and
group all office appliances people in another department. They group employees into
functional areas based on their expertise.
The functional sales structure at Vijay Sales is as follows:
20

Figure 1.5
Advantages of functional sales structure:
 Efficiency in performing selling activities. As Vijay sales groups their employees as
per the job function, it allows the sales representatives to focus selling one type of
product and improving their productivity while doing so as they would have
experience and skills to sell just that product type allowing them to improve and
concentrate on that particular job function.
 Allows employees to focus their energies to accomplish their role as a department. As
the structure enables the sales representatives to work as their job function, it allows
the sales representatives to focus on accomplishing their job function as a department
and all employees in that department would only be focused on doing so. Allowing
them to specialize in their role of that department.
 Easier management of specialists. As the sales representatives who are under one job
function, work together it is easy for Vijay sales to manage them as per their job.
Disadvantages of functional sales structure:
21
Sales Manager
Field sales
manager , home
appliances
sales people
Field sales
manager, personal
appliances
sales people
Field sales
manager, office
appliances
sales people

 Can create barriers between different functions in the organization. As each function
at Vijay sales strives to be the best selling function, the competition among the sales
representatives’ increases causing there to be many conflicts among the functions.
 Segregation. There is no cross communication between teams, which can be harmful
in the long run for the organization. The employees at Vijay sales are differentiated
into various groups/functions. This hinders them from meeting, interacting or sharing
opinions and ideas with each other. This may lead to employee dissatisfaction and low
productivity.
Vijay sales use a functional sales structure where specialized activities are assigned to
experts, whose expertise helps in increasing the effectiveness of the sales force. All the
specialists in the functional structure at Vijay sales have line authority, moreover they have
functional authority.
According to the author, a functional sales structure is inappropriate for Vijay sales and is not
a feasible structure. This is because Vijay sales need more administrative levels as they have
a wide product line and a large number of sales personnel. Such a structure is suited for
organizations that produce standard goods and in large volumes. In such a structure, all the
sales representatives at Vijay sales are dependent upon all the personnel in the same level.
This would lead to them not being able to work independently in case one does not come to
work. This delays the work at Vijay sales. Delays in work would affect the overall sales of
the company and would prove to be a hindrance in their success. A functional sales structure
is best suited for organizations that have a limited product range. However, Vijay sales have a
diversified product range and also many geographical markets. Thus, proving to be an
unsuitable structure for them. Such a structure results in Vijay sales to be slow to respond to
external changes. This means that they take time in order to provide the latest products. Such
delays directly affect their sales and would prove to harm their overall success in the long
term as customers would instead go to their competitors who provide the latest products in
the market. Vijay sales also have a few products that are not fast selling and yet operate as a
whole function/department. This would be a financial drain for Vijay sales and would not be
financially feasible for them to have a degree of division of labor of the sales representatives
in such functions/departments. As each function operates individually, it would lead to the
functions focusing primarily on their departments’ objectives rather than the objectives of
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Vijay sales. This would be a potential drawback for Vijay sales and so would also be an
inappropriate sales structure for them.
The selling concept
The selling concept is essentially the thought that consumers will not purchase enough of the
company’s products unless heavy promotions and selling efforts are carried out. The focus on
the selling concept is more on selling the products of the company to the consumers.
It is a way of bringing in products or services to the market so that they can be purchased by
consumers. It is basically a means of selling to customers. It is about closing sales.
The following are types of sales channels:
1. Personal selling
The sales person uses the selling skills and abilities to make a sale face to face. The sales
person has to convince the buyer to buy the product. (The Economic Times, 2019)
At Vijay Sales, they use personal selling while selling to other businesses their products such
as printers, laptops and phones. Many businesses require these products in bulk for their
branches across the city and require a good, cost efficient deal. Here, Vijay Sales would
ensure that they have sufficient knowledge about the business they will approach, their
requirements in terms of the products and for what use they require the product. Based on this
they would approach the business and try to gain their attention and interest. Once they
achieve this, their focus is on converting the business prospect into a customer by creating a
desire for their product which also includes providing an offer they cannot decline and which
other competitors cannot provide. The last is where they close the deal through a contract and
ensure they follow up with them to make sure they are satisfied and for future sales
possibilities.
Vijay Sales also uses personal selling while selling to customers through a five step process.
First, they approach the customers with a personalized and warm greeting. All the employees
at Vijay Sales have been informed to do so before starting the selling process. Vijay Sales
believes in a personal approach as that makes customers feel acknowledged. They then
inquire politely to gauge the customers’ needs. After this, they present the customers with a
solution and they listen for and solve any issues or concerns. The sales representatives at
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Vijay Sales must fit the customer with the right product to meet their needs. The last is where
they close the deal and ensure the customers come to purchase again.
Importance of personal selling
 Flexible Tool
The sales representative at Vijay sales can tailor his/her sales presentation to fit the needs,
requirements, and behavior of individual customers. The sales rep can observe the customer’s
reaction to a specific sales approach and then alter the approach on the spot.
 Customer Attention
The level of customer attention and interest can easily be evaluated by using personal selling.
 Lasting Relationship
Personal selling helps to develop a long lasting relationship between sales representatives and
the customer in order to increase sales.
 Expert Advice:
Expert advice and guidance is provided to the customers while purchasing different goods
and services.
Advantages:
 It is a two way communication network. The sales representatives at Vijay sales can
get instant feedback from the prospective buyer. If it does not go accordingly to the
plan the sales representatives can adjust the approach accordingly.
 Since it is an interactive form of selling, it helps build trust with the customer. When
selling high value products, it is important that the customer trusts not just the product
but the seller as well.
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 It is a persuasive method. Since the customer is face to face with the sales person it is
no easy to dismiss them. The customer must atleast listen to what is being said.
Disadvantages:
 It is an extremely labour intensive method Vijay sales. They require a large sales
force to carry out personal selling successfully.
 Vijay sales must train the sales people which is also time consuming and costly.
 In personal selling, it is difficult to reach as many customers as quickly. It takes
longer to build awareness of the products. Sales representatives have to cover one
region or market at a time.
2. Sales outsourcing
Sales outsourcing is basically when a firm outsources either a portion of or their entire sales
activities to a third party sales team. This allows firms to attract and maintain a sales force
without employing them as full time or part time employees.
For example, Alibaba.com is China’s eBay but it began as a small “Internet Company”
called China Yellow Pages. Initially, the founder Jack Ma outsourced the website
development. The development talent in China was in short supply; while developers in U.S.
had the skills Alibaba was looking for and needed. Currently, the company still relies on
outsourcing partners for production, but they're mainly located in China.
Importance of sales outsourcing
 More time to dedicate to business Objectives
Having an outsourced sales team eliminates the pressure of in-house sales, allowing staff to
concentrate on the business objectives. This allows leadership and internal teams the ability
to focus on the organization’s overall growth and future.
 Outsourcing will save time and money.
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By contracting with a third-party provider, instant access is given to a team of highly
qualified sales representatives who interact with the businesses customers using the latest
technology and techniques. The customers get better care, the sales representatives resolve
issues faster, and one does not need to deal with high turnover or infrastructure costs.
 Lower risk.
The risks of operational inefficiencies are eliminated as they would have an experienced and
trustworthy outsourced team.
Advantages:
 Outsourcing sales functions to a company which is specialized in driving sales can
bring voluminous benefits into an organization.
 Sales outsourcing brings in flexibility which provides the benefit of cost cutting to a
company.
 Pay for performance. With sales outsourcing, one can partner with the right sales
service provider with whom a more defined and oriented approach to reducing
financial risks can be attained. It allows an organization to pay on the basis of sales
results scored.
Disadvantages:
 Less control over the sales process. The company will have less control over how
tasks are carried out.
 Confidentiality risk. Losing confidentiality is a risk involved in outsourcing sales. The
more sensitive data shared, the more likely it is to be compromised.
 Problems can arise when third party organizations misrepresent or miss-sell the
products of a business which can create legal problems. Sales personnel from an
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agency may not be as familiar with the product as the staff members which can also
be problematic.
3. Retail
Selling through an intermediary may be a more cost-effective way of reaching the customers
than selling to them directly. It is the selling through physical locations such as a shop or a
physical showroom.
Vijay Sales is a retail outlet that sells electronic products of other brands as well as their own
manufactured appliances.
Importance of retail selling:
 Link between manufacturer and consumer. A retailer functions between the final
customer and manufacturer. The retailer helps in the selling and buying process,
collects important information about the people, for example likes and dislikes of the
product. This will help manufacturers to design and deliver a product to the
expectation of people.
 Benefits of an expert in the distribution network. The retailer is an expert and
experienced person in distribution network. They understand the likes and dislikes
due to their proximity and contact with the customers. They store those products that
people want and deliver them in which the customers expect.
 Increase in Productivity. Retailers ensure productivity and efficiency in the
distribution of goods. They share information about the market with the
manufacturers. Their policies of promotion create demand for products and ensure
fast turnover through quick sale.
Advantages:
 Greater profits. Retailers such as Vijay sales, sell products directly to end users, they
are able to earn more for the same items than a wholesaler.
 Customer rapport. In a retail outlet, customer rapport benefits the buyer and Vijay
Sales. Retail outlets allow customers to see what they are buying up close.
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 Greater sales potential. With a retail outlet, one can sell a variety of products and
expose customers to items that they didn’t know they needed.
Disadvantages:
 High cost of maintaining a physical space.
 Additional inventory costs. Retailers such as Vijay sales who have multiple outlets
may have duplicate inventory and must maintain warehouses.
 Logistics cost- shipping from the warehouse to the store location would increase the
cost of goods sold.
4. E-commerce
E-commerce is an online platform/ market place where the buying and selling of goods and
services occurs.
Vijay Sales uses the e-commerce platform to sell various products to their customers. Using
this platform allows them to reach more number of customers. Vijay sales uses their website
to keep their customers informed about new product launches, sales promotions and various
other updates. The e-commerce website allows their customers to shop 24x7, this increases
their sales drastically.
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Importance of e-commerce
 It provides a wide variety of products. It brings in more variety by expanding the
boundaries of traditional commerce.
 It increases the Reach. With online selling customers outside local borders can order
them too. The business is not restricted to a certain location.
 It enhances brand awareness. The more web pages developed for the businesses e-
commerce site, the more the search engines will be able to index them and allow the
business to rise in rankings on the internet.
Advantages:
 Easy access to the market. Online marketplace allows anyone to set up a simple
online shop and sell products within minutes.
 Reduced overheads. Selling online can remove the need for expensive retail premises
and customer facing staff.
 Widen the market. It is easy to expand the market beyond local customers very
quickly.
Disadvantages;
 Security and fraud. The reputation of Vijay sales could be fatally damaged if they
don’t invest in the latest security systems to protect their website and transaction
processes.
 Advertising costs. While online marketing can be very efficient to get the right
customers to the product, it demands a generous budget. This is true if one is
competing in a crowded sector or for popular keywords.
 Customer trust. Customers at Vijay sales must be able to trust that they would receive
a product that is working and without any damages. They must trust Vijay sales
enough to be able to order via their website.
5. Direct marketing
Direct marketing is directly reaching out to prospective customers by telephone, mail, door-
to-door or digital communication tools such as email.
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Touch branding is a branding agency that maximizes the potential of the brands that hire
them. They devised a plan for direct marketing with an impactful copy and a graphic
design. For direct mail they attached with letters a blood bag simulating to be real, the
design of email they sent was in the same line and the cover of the web was a picture with
two doctors who carried the blood bag with copy above. It was a way to "hook" potential
companies to be customers.
Importance of direct marketing
 Direct marketing reaches customers immediately. That means a direct mail campaign
can get a prospective customer as soon as they receive the campaign.
 It’s cost effective. Direct marketing is a cost effective marketing solution. The
business knows exactly how much is spent to reach each customer.
 It is easy to track and measure results. Direct marketing offers ways to track and
measure the results, to know how many customers have been reached, and the
responses received. The business can test new markets or products to determine what
appeals the most to which customer.
Advantages:
 Direct marketing eliminates price hikes due to middlemen and provides a direct
approach.
 Direct marketing can be personalized based on the actual experience of working with
a customer.
 A business can send specific messages to particular groups of customers and potential
customers based on the demographics and buying behaviour. The more targeted the
campaigns, the more likely it is to be successful.
 Measurable. If the marketing message asks the recipient to take a particular action or
use a specific code, it can easily be tracked to the success of the campaign. This can
help plan future campaigns.
Disadvantages:
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 Intrusive. Many people find direct marketing annoying and intrusive. If consumers
find the tactics annoying it can create a negative brand association and make them less
likely to buy.
 Low response rates. Direct marketing response rates tend to be very low. When a
business reaches consumers who are uninterested in the products or services wastes
money.
 Competition. It can be hard to make a message stand out when the recipient receives
high number of marketing emails or direct mails.
6. Re-sellers
These are firms that purchase the products and services from a business to resell them such as
sellers on an ecommerce platform.
For example, resellers that conduct business exclusively online, such as Amazon.com, do not
incur the high overhead expenses of retail locations. These usually include sales staff,
utilities, rent and loss protection. The lower costs mean that the reseller can offer lower prices
to the customers, leading to more sales.
Importance of resellers
 Resellers are a quick and easy way to expand a business to new areas locally,
nationally and internationally without the expense.
 Scalable. They already have sales forces that they carry the cost burden for. To scale
the business needs to add more resellers. If a market explodes the business does not
have to run out and try to double their sales force.
 Low upfront cost for a sales channel. The business only has to pay the resellers
when they sell a product of the business. So the business does not have to find,
hire, train, and manage their sales force early on.
Advantages:
 Established customer base.
 Experienced with sales and marketing. Large resellers are experienced, so they know
good strategies to get the products out there and to increase sales.
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 Less work. Storage inventory management, customer service etc is handed off to the
reseller. The business now would not be responsible for the fees and management
costs.
Disadvantages;
 No control over how resellers brand the business. While they are experienced with
sales and marketing, they may not be doing it the way the business wants them to.
 Smaller margins. Even though the business will make quick cash, it won’t nearly be
as profitable.
 Bad seller reviews might become bad product reviews. If the business managed the
sales, they could work to improve the customer experience. The resellers may not care
enough to protect the product’s reputation.
7. White label
It is allowing a business’s products and services to be branded by resellers.
For example, Vandana is a white-label producer of marketing automation software. They sell
unbranded, in-house products to marketing agencies and media groups around the world who
can resell their software to local business clients, under their brand. These local businesses
are all using the identical software (customized with reseller branding), but they are
consuming it through different resellers.
Importance of white label
 White labeling can scale the services portfolio. White labeling allows a business to
broaden their offerings. They don’t need to specialize in every product they offer.
They can provide a much broad range of products by outsourcing them to a white
label service provider.
 It can help improve client retention. With a third-party provider taking the
responsibility for product delivery, the business can focus all their time and effort on
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client relationship management. Additionally, they can help them meet all of their
needs. The business can foster brand loyalty from their clients.
 It will help improve the brand’s image. Using white label services, the business can
ensure that they deliver their promises to their clients and build a good reputation in
the industry.
Advantages:
 It boosts the visibility of the brand. If the business offers many products, pay extra for
white labeling offers the business a great way to spread the brand name, increasing
the public’s awareness of the brand.
 White labeling takes the pressure off. If something goes wrong with a product or a
client complains, most third party tools take responsibility and fix or update for the
service or refund the cost of the product.
 Saves time and money. Creating a new product from scratch requires a lot of energy
and resources.
Disadvantages:
 Their packaging and appearance are very generic and unappealing, which could make
customers think the product is of lower quality.
 Misunderstandings. The product description and vision are passed on which may
distort some information. An important part of the vision or product description may
get lost along the way which will result in a changed agenda.
8. Wholesaler
It is a distributer that sells to retailers and ecommerce sellers. The work of the wholesaler is
to break bulk.
For example, BJ’s is a company that purchases in lots from manufacturers and sells them at
smaller scale to retailers. The profit that they earn is through the discount that they receive
from the manufacturers and by charging normal price to the retailers. They also don’t have to
incur storage or marketing costs.
Importance of wholesalers
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 The buying and assortment building. The wholesalers purchase the bulk of different
products from various manufacturers and assort these products. It is convenient for
customers as it saves their time and effort.
 It is risk bearing. The damaging, theft and spoilage costs are handles by the
wholesaler.
 It provides information about the market. Wholesalers provide information on new
products, competitors’ and price developments.
Advantages:
 The wholesaler does not have to market the product as retailer’s orders are fixed and
producer who markets the products and wholesalers have to supply goods to retailers.
They have no pressure of achieving a monthly target or to do any marketing.
 Fixed margins of profit. The wholesaler will receive a fixed margin of profit which is
usually3 to 10 percent as they know the exact amount of profit they will make.
Disadvantages:
 High capital requirement. As they purchase products in bulk quantity and it does not
get sold immediately to retailers, wholesalers need to have enough capital so that they
can maintain enough stock.
 Goods on credit. The wholesaler purchases the goods in cash from the producer but
they sell goods on credit. Hence, they have to recover and follow up with the retailers
for the payment of goods.
 Required a lot of space. If they have to rent a space it will lead to huge expenses as
storing of goods requires a large amount of space which are expensive and can put a
dent on their profits.
9. Import and export
The organizations that deal in international trading are distributers in a foreign market that
import products or local distributers that specialize in exporting products.
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For example, Venky’s is a company that produces french-fries that imports and makes hand
cut french fries which are always freshly served. It has had significant growth in the domestic
market. Furthermore they are now strategizing expansion on foreign markets. They have
signed a memorandum of understanding with a prospective buyer and have completed the
due diligence.
Venky’s also has to comply with the international food standards i.e. IFSQN guidelines, and
laws for transporting edibles overseas. It also needs to comply with the import regulations of
the foreign country such as the import duties and quotas set by their government. Once these
are taken into consideration, the company would be able to trade internationally without any
legal hindrances.
Advantages:
 It allows for international growth. Companies that are involved in import and export
can achieve growth which would not be possible if they catered to only the domestic
market. Businesses get an opportunity to achieve sustained revenues and diversified
customers.
 Improves financial performance. Businesses involved in import and export can
increase their financial performance. By rotating their products through a global
market, the lifespan of each can be extended.
 International exchange rates can beneficial to the business. Businesses that are
involved in import and export can reduce their risks by benefiting from the monetary
exchange rates.
Disadvantages:
 It presents cultural expectations. Different cultures have different attitudes, standards,
and expectations that may pose as a problem to the business. Not considering the
cultural differences can lead to mistakes that damage the reputation of the business.
 There is a political risk involved. Different countries provide their own political risks,
while domestic politics changes over time and is an ongoing challenge. A government
can change laws in a discriminatory fashion that ay directly impact the business.
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 It increases the risk of proprietary information theft. Going on an international market
with a product increases the chances of another business stealing proprietary
information, marketing concepts, or personal identity.
10. Agents
Agents are intermediaries who are authorized to represent the business in a transaction.
For example, Avon is a makeup brand that sells through agents who sell their products
through a brochure and order the products and deliver them to the customers. They have
agents all around the world who do this for Avon.
Advantages:
 Easy to find. Agents are easier to hire than experienced sales representatives with
specialized knowledge.
 Cost. Using a network of agents can be a cost effective way to reach vast markets.
 Local experience. Some markets are difficult to enter without existing contacts, local
knowledge and experience.
Disadvantages:
 Control. It can be difficult to control the agents’ activities to make sure they
continually work hard.
 Customers. They may sell to unsuitable customers who may undermine the integrity
of the product.
 The agent may not sell the products in a way the business wants.
To conclude, the author has evaluated the various sales structures used by Vijay sales and its
competitor, Croma. The benefits of each sales structure has been evaluated for the
organizations. The concept of selling through others has been explained in context of Vijay
sales as well as other organizations. The advantages of selling through others are explained
with the help of the organizational examples.
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Analyze the key principles and techniques for successful selling and how they contribute
to building and managing customer relationships in application to specific
organizational examples.
Relationship sellers prioritize their connection with the customer over all other aspects of the
sale. They develop trust -- usually by adding value and spending a lot of time with prospects
– before attempting to close.
Principles and techniques of successful selling and building customer relations:
1. Listen to the customer. Vijay sales use this to successfully sell their products to the
customers. They do this by using the spin selling technique. Here, they let the customers
talk and the sales people at Vijay sales ask appropriate questions.
First is where they gauge the situation in order to understand if they can offer what the
customers want. For example, the sales person at Vijay sales would ask “which printer do
you currently use and what is the model?” They would then try to figure what is the problem
that needs to be resolved. They would ask questions like “what problem are you facing with
the printer?” The third step is where they would imply the negative aspects of not upgrading
to the latest printer, for example “if the printer is not upgraded right now, would it impact
your business?” The sales people will then try to get the customer to mention the benefits of
upgrading the printers themselves.
By using the spin selling technique and listening to the customers, Vijay sales leads to
successful selling as they satisfy the requirements of their customers and they are provided
with apt solutions/ products that fits perfectly to what they required. This allows Vijay sales
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to build a relationship with these customers as the customers now believe that Vijay sales
offers quality service and provide goods that are useful to the customers. Vijay sales builds
customer relations as they put their customers’ requirements first and let them be heard by
their sales representatives. This allows the customers of Vijay sales to feel a sense of being
and as though they are appreciated, this feeling ensures that their customers would return
back to Vijay sales. Ensuring that the customers come again leads to Vijay sales gaining loyal
customers.
2. Customer retention. Croma uses customer retention as a means of successful selling.
They believe that if they can retain their existing customers, they have achieved selling
successfully. Having a retained customer base allows Croma to build relations with
them as they become frequent buyers and the sales people at Croma can recognize them
allowing them to recognize and understand what their customers want faster than before.
In doing so, Croma builds relations with their customers as they offer additional offers
to their loyal customers through a customer loyalty program. The retained customers at
Croma will have more incentives to come back to Croma to purchase their products as
the sales representatives at Croma already know the products they like and which they
wish to buy. They also have reward point that lowers the price of the products for them.
3. Customer satisfaction. Customer satisfaction is a key principle for successful selling at
Vijay sales. They provide the customers with many with many deals and offers that
allow them to be highly satisfied with Vijay sales. Customer satisfaction not only
includes the deals and offers but also the product quality. By offering high quality
products and offers to the customers, Vijay sales keep their customers satisfied. Happy
customers mean that they are likely to return to purchase more products as they were
content with the value of service and products at Vijay sales. Vijay sales build customer
relations by retaining their customers and keeping them satisfied.
4. Managing the sales force. Vijay sales manage their sales force in order to successfully
sell their products. By managing employees, they are training them to sell to the
customers, hiring the appropriate people for the sales team and by providing them with
compensation packages. All these contribute to how well they sell the products to the
customers. It becomes successful selling when the sales people can effectively manage
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what they have been taught and apply it to the customers by selling in voluminous
amounts or by creating a loyal customer base.
The sales method adopted by Vijay sales to manage their sales team is the Sandler’s
sales method. In this method, the sales people are encouraged to act as a reliable and
trust worthy source. The sales people follow these three steps:
 Technical. The sales people at Vijay sales explore the details of a technical issue
and they stimulate the customers to speak about the problem on the business.
 The business-financial impact. The sales people go beyond the cost saving and
quantify the impact of a solution, like focusing on their priorities.
 Personal interest. Many customers make decisions for themselves and not their
company.
This model helps the employees at Vijay sales to not only concentrate on the technical
aspects but also the personal interest and the financial impact.
In conclusion, the author has analyzed how the principles of stated help in contributing to
build and manage customer relations and how they help in successful selling. The author has
also analyzed the techniques for the same. To further enhance the understanding, the author
has related it to real life examples of the organization, Vijay sales.
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Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures.
Sales strategy is defined as the planned approach to account-management policy formation,
prospect identification and qualification, sales presentation, and order generation aimed at
achieving a firm's sales quotas or targets.
The sales strategy used by Vijay sales is to increase the sales among the existing customers.
Their goal is to maintain the current target market and their strategy is to increase the sales
within the existing market. Vijay sales also use flash sales as a strategy at their outlets and e-
commerce website. A flash sale benefits them as the people start talking about the sale and it
attract new customers due to the hype created. It shortens the sales cycle, which urges the
customers to buy the products. It allows Vijay sales to move excess inventory, attract new
customers in the same target market and retarget their loyal customers.
Importance of developing sales strategies that yields highest profits for Vijay Sales:
 Increase productivity of the staff at Vijay Sales. Vijay sales must be able to recognize
and compensate their staff by their contributions and performance reviews. They
teach the sales staff selling skills so as to increase sales per staff member and they
also teach them how to up sell their products to the customers. In doing so, it allows
Vijay sales to sell multiple products at a time to customers. By ensuring the sales staff
is well motivated to sell the products to the customers, it enables Vijay sales to
increase their profits. A motivated sales force at Vijay sales would be more productive
than the non-motivated sales force. This is because the motivated sales force would be
happy and satisfied and so would put in their best effort in the tasks that are assigned
to them.
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 Vijay sales can target new client segments. As Vijay sales targets new client
segments, this allows them to grow in the industry and to gain profits from different
segments. They can do so by observing and distinguishing different clients in other
segments and what they are buying. By concentrating on new client segments, Vijay
sales can better understand what the new segment of clients like and so produce and
the sell the same. New customer segments allows Vijay sales to increase their
customer base and the number of customers buying their products, this would directly
impact their profits as more sales by more customers would increase their
profitability. Having new client segments would mean that the number of customers
has increased and a larger target market increases the revenue for Vijay sales. An
increase in sales and revenue for Vijay sales would result in them gaining more
market share in the industry. By spending more time on successful segments, the sales
team will help increase the revenues.
 Vijay sales can increase the prices of their products. Vijay sales can increase prices on
products that they know would not reduce their sales. Having higher prices on
products increases the profit margins for Vijay sales, thereby increasing the overall
profitability. In deciding which products should the prices be increased, Vijay sales
must take into account the price elasticity of that product. Products such as an iphone
are price inelastic and so they can increase prices of such products. But however,
products that are elastic would be affected by a rise in prices.
 Vijay sales can remove unprofitable products. Vijay sales must recognize which
products have the highest gross profit margin and which have the lowest. The highest
gross profit margin products are important to them and they must concentrate on these
products. The unprofitable products may be removed completely or further improved
upon.
 Innovation. Vijay sales have many competitors who provide the same products as
Vijay sales with hardly any price variation. Through innovation, Vijay sales can be on
top of their competitors. By offering something unique or additional to their current
product base would increase the profits on those products.
Key Account Management is defined as a strategy adopted by firms wherein, the company
identifies its key accounts (major customers who form substantial part of company’s
sales/business) & provides value-added services to the key-account portfolio. The objective
of this approach is to build relations with the crucial customers to nurture the business.
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The role of key account management is most effective when there is easy access to senior
management and to those delivering the products and services to the key accounts. Thus, it
can be easier to implement key account management in flatter organizations.
Most key accounts expect this level of access to ensure they and their needs are being well-
represented to Vijay sales.
The key accounts at Vijay sales are the office appliances, televisions and laptops
The importance of key account management at Vijay Sales, who follow a functional sales
structure are as follows:
 Close working relationship with customer- the salesperson knows who makes what
decisions and who influences the various players involved in the decision-making
process.
 Higher Sales- most companies that have adopted key account selling techniques
claims that sales have risen as a result.
 Better use of sales resources. Key account management at Vijay sales concentrates on
putting their sales resources to retain the customers that are most likely to generate
high levels of revenue and profitability. Account managers at Vijay sales have an in
depth understanding of their customers’ requirements and allow them to help their
own business performance. This helps to make the customer dependent on Vijay sales
and increases their customer retention.
 Increased customer satisfaction. Key account managers at Vijay Sales focus their
resources across the organization to ensure that key accounts are satisfied with all
aspects of the service they receive. The key account management team at Vijay sales
has commitment from senior executives and cooperation from all departments that
deal with key accounts. By managing and coordinating resources, key account
managers ensure that Vijay sales meets all the criteria for customer satisfaction, such
as prompt delivery, accurate order fulfillment, quick response to inquiries and
efficient after customer service.
In conclusion, the author has successfully explained the importance of developing sales
strategies that would help generate the highest profitability. The author also explained the key
account management within the sales structure followed by Vijay sales. Along with this, the
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author evaluated the finance principles that would help Vijay sales to benefit from increased
profitability and competitive edge.
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