Key Principles of Sales Management and Sales Structure of Vodafone

This document discusses the key principles of sales management and the sales structure of Vodafone. It explains the significance of sales planning and the methods of selling. It also provides examples of direct sales and selling through others. The document is relevant for students studying sales management or interested in understanding the sales structure of a multinational telecommunications company.

Order Sales Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Key principles of sales management.....................................................................................1
P2. Sales structure of the chosen company..................................................................................4
P3 Explain the importance and the advantages of the concept of ‘selling through’ others.........6
P4 Analyse the key principles and techniques for successful selling and how they contribute to
building and managing customer relationships in application to specific organisational
examples......................................................................................................................................9
P5 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures......................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Order management can be defined as the process that involves the efficient tracking and
completing sales order. It can include people, processes as well as suppliers in order to provide a
positive experience to the customers. The initial stage of the process is when the customers place
an order and keep track of it until the order is shipped (Atan and et. al., 2017). Order sales
management also involves keeping the record of customers, their buying history, payment option
that they chose as well as the volume of order. Organizations have sales departments that notify
the warehouse in order to fulfil the order and the same is then shipped to the customer. The
concept of order sales management is gaining importance increasingly in order to meet the
competition in the market. Not only this, it also helps an organization in enhancing its overall
performance as well as productivity. Organization chosen for this report is Vodafone, which is a
multinational telecommunications company based in England. The company was founded in the
year 1982 by Gerry Whent and Ernest Harrison. The report explains the key principles of sales
management in relation to the significance of sales planning. It also explains the sales structure
of the chosen organization along with examples of direct sales and selling through others. An
examination of the company as well as the competition in the sector, the report also analyzes the
key principles and techniques that are used for effective business. Lastly, different methods of
finance that help in building a successful customer portfolio is also included in the report.
MAIN BODY
P1. Key principles of sales management
Sales management can be defined as the process that involves developing a sales team,
coordinating sales operations as well as implementing various sales techniques in order to
achieve or even surpass the sales targets. An effective sales management strategy can help a
business to satisfy the needs of customers in an effective way and thus gain their loyalty (Barbon
and et. al., 2019). It is important because it helps in improving the overall product development
and optimizing the overall distribution process. Besides this, the management of the company
can make more effective decisions, as a result of which the overall efficiency is improved. The
key principles of sales management are explained below in relation to the significance of sales
planning as well as methods of selling.
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Managing the employees individually – For the sales management to be effective, it is
important for the company to manage its people individually in an effective manner. If a sales
employee achieves their respective target, they should be praised in front of other team members.
On the other hand, whenever feedback or training is being provided, it should be a one-to-one
process.
Promoting discipline in the organization – The management of Vodafone is very
particular about discipline within the workplace and has therefore, adopted various measures for
the same (Gallino, Moreno and Stamatopoulos, 2017). People today, want to work for companies
that have proper rules and regulations so that business operations can be carried out effectively.
Goal Oriented – The sales managers at Vodafone establish realistic and achievable
goals. They also encourage their team members to achieve the same (Principles of Sales
Management, Part 1, 2019). They talk about goals and ways to achieve them with their team
members so that all of them remain goal-oriented. This will also keep the team members focused
and aware about the fact the achieving goals is their primary purpose. This also helps in the
overall sales planning effectively by using different sales methods.
Consistency – This is the most important principle of sales management that Vodafone
should adopt. It is important for the company to remain consistent with its products and services
based on the guidelines that are established.
Delegation –A sales manager cannot do everything on their own and therefore, there is a
need to manage the team effectively. This can involve giving them some degree of independence
so that they can generate the best output.
Sales planning is a significant component of sales management within a company and
can be defined as a process that involves demand management, sales forecasting, setting sales
targets that are profit based etc. A sales plan is one of the most crucial tools for an organization
as it helps it in increasing sales as well as identify potential risks that can influence the overall
performance (Geiger, 2017). Therefore, with the help of a sales plan, the management of
Vodafone can make efficient decisions as they can get an understanding of the current status of
the products within the market.
There are various ways in which an organization can sell its products and this can include
relationship selling, system selling, high profitability selling, cross selling and traditional selling.
In order to sell its products to the customers, Vodafone uses advertising, personal selling, direct
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marketing, publicity and internet marketing (Gören, 2018). The company has its own website
wherein all the latest information about existing as well as new products, along with offers and
discounts is available for the customers. The company also has a presence on the different social
media platforms wherein regular updates are posted in order to keep the customers engaged.
Apart from this, the company has a team of sales force that goes door to door in order to sell the
products to the customers.
A 24-hour helpline is also made available wherein customer service employees address
any concerns or queries that customers may have. Advertisements relating to the company’s
products and services are also telecasted on television and radio. This has helped company
increase its overall base of customers as well as enhanced sales. A sales report is developed and
presented to the managers at the end of each quarter so as to get an insight about the performance
of different activities within the company. The primary purpose of sales reporting is to help the
management plan and develop effective strategies in order to enhance the overall performance of
the company and gain a competitive advantage.
There are different kinds of sales reports that can be presented to the managers in the
company like revenue generated by salesperson, conversion rate, promotional sales report, total
lifetime value of a customer etc. Vodafone has various tools that help the employees in
developing effective reports (Hamdan and Cheaitou,2017). The reports not only help the sales
managers monitor the overall performance of their team members, but also plan strategies that
can help the company in attaining its sales targets. From the viewpoint of employees, they can
summarize all the details regarding the deals that have been finalized and are in process to their
respective team leaders.
The buying behavior of customers keeps on changing from time to time because the
customers seek products that are innovative and satisfy their changing preferences. The different
principles of sales management that are explained above can vary based on the buying behavior.
This is because if the company introduces a new product for the customers, it is first important
for the company to train its employees in an effective manner so that they can address the
concerns of the customers in an enhanced manner (Bedeley, Benbow, and Iyer, 2016). Another
important thing is to promote a culture wherein all of the employees in the sales team dedicatedly
work towards achieving organizational goals and targets. Other principles of sales management
are consistency and delegation that will vary based on the buying behavior of consumer as well
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as business. Respective company will have to maintain a consistency in its products so that the
customers do not shift to the competitors (Minner and Transchel, 2017). As far as delegation is
concerned, managers within the company will have to trust their team members and allow them
to be independent to some extent. This way, they will take the ownership of their work and put in
efforts to get tasks done.
Consumer buying behaviour model
The economic model of consumer behaviour states that consumers try to increase the
overall utility from the products based on the law of diminishing marginal utility. It describes
three stages, namely- Income Effect, Substitution Effect as well as Price Effect (Monden, 2019).
It helps in making predictions about the behaviour of the consumers.
P2. Sales structure of the chosen company
Sales structure can be defined as the design of the sales team within an organization. A
company might use either inside or outside sales model or approach in order to develop a sales
structure. Organizations that have high sales and outperform the market have sales processes that
are well documented and structured properly. A sales structure helps an organization in
streamlining the chain of command within the workplace which leads to an effective decision-
making process. The sales structure of Vodafone is explained below through examples of direct
sales and selling through others.
Direct sales can be defined as a type of sales that involves selling products to the
consumers directly in an environment that is not related to retail. Instead of this, the sales occur
either at work, home or online. Direct sales allow an organization to eliminate different
middlemen who are involved in the overall distribution of the products. And instead, the
products directly go from the manufacturer to the distributor and then finally to the customers.
The products that are sold through direct sales are not found at retail stores (Monden, 2019). For
example, Vodafone sells many of its products through direct sales which means that the number
of middlemen involved in the process is less. This helps it in reducing or eliminating unnecessary
costs associated with the sale of the products. There are many other companies that send their
representatives directly into the stores so that they can sell the products to the customers and the
customers as well, can use the services.
Sell through on the other hand, is among the most cost-effective ways for the companies
to reach their customers rather than selling the products directly to them. This type of transaction
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occurs when a customer purchases a product from the retailer. The payment which is made by
the customers is kept by the retailer. The sell through rate measures the number of products in
the inventory that have been sold in a month as compared to the amount of inventory that is
shipped from the manufacturer. For example, in Vodafone, a certain percentage of a particular
product is sold by retailers after it is shipped by the supplier. This is typically expressed in the
form of percentage. This helps the company in reaching to its customers in a much more
effective manner. Therefore, selling through other can prove to be an effective sales structure for
Vodafone in achieving its sales targets.
Sales Structure by Product
The company reaches its target market by successful implementation of the sales
structures in the system (Nguyen, de Leeuw and Dullaert,2018). This is done based on products,
geography as well as market. A company can develop sales teams based on the different products
that are offered by it, Vodafone has different teams wherein the sales force is made part of
different teams based on its different products. The employees in different products teams have
knowledge and a deep understanding about the respective products. This helps them in targeting
the right customers and selling those products in an effective manner. Also, the sales
representatives develop effective communication skills and pitch the products to the customers
properly. There is also a team of sales employees who are a part of the market team. In this, the
team members are aware about the different market and know how to formulate different
strategies in order to attract as many customers from different markets as possible. This is
beneficial for the company because it can enhance its profitability by attracting potential
customers from different markets.
Sales Structure by Geography and Market
As per the viewpoint of Emma Brudner, organizing the sales team by geography is
another way of reaching the market because this allows the sales people in the team to build
familiarity with a particular geographic location (The 4 Most Common Sales Org Structure [+
Pros/Cons], 2020). This can be done by establishing a rapport with local businesses within the
location which is beneficial because it can help in developing an understanding about
competitors in the vicinity as well as track target customers. The sales manager can easily
evaluate the overall performance of the sales representatives and the market potential that
particular location has. Sales representative within a particular geography can develop expertise
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in being able to work cross-functionally (Rudolph and Emmelmann, 2017). Therefore, through
this, the company can reach its target market and fulfil their needs in an efficient manner.
‘Selling through others’ is an important concept that helps an organization to eliminate
the unnecessary costs or middlemen from its overall distribution system. If a company sells its
products to other businesses, it is able to build strong long-term relationships with them. This
strategy allows an organization to grow its business operations in an effective manner. Selling
through others extends the overall geographical reach of a company, although the process of
setting up new outlets, hiring a sales team and providing them training might require an
additional investment (Syam and Sharma, 2018). Apart from this, when a company deals with
retailers, it gets an access to a greater number of customers without having investing into any
kind of sales or marketing process. There is an immediate access to customers as well as
prospects who visit retail stores in order to purchase the products that are offered by the
company. Vodafone sometimes negotiates with the retailers to stock its products and not of its
competitors.
Apart from this, the overall responsibility of selling the products is on the retailer and in
order to encourage them to sell the products, respective company provides them training to the
sales team within the company. Another advantage of ‘selling through others’ is that the
company can boost its overall marketing budget (The Advantages of Selling Goods Through a
Retail Distribution Channel, 2019). This can be done by running joint campaigns with other
brands that offer similar services. This helps in generating awareness among the customers about
availability of products within the market. This leads to an increase in the overall profitability as
well as revenues of the company(Yang and Zhu, 2020). Also, by effectively utilizing an existing
retail network, the company can expand its overall geographical reach and attract customers from
different segments. Also, the organization does not have to bear the cost of delivering the
products to the customers because they can buy the same easily through a retail store.
P3 Explain the importance and the advantages of the concept of ‘selling through’ others.
Selling through can be describe as the percentage of selling products that is sold by retailers
which has been shipped from its manufacturer or suppliers. This is expressed in percentage as
well as support company to sale its more products and services. Selling through is majorly
calculated in set time frame which consist of one month period (Jingga and Limantara, 2016).
There are number of retailers company which is support large and multinational business to sell
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its products or services to customers. In the concept of sell through other, Vodafone organisation
is providing some amount of its products and services to various retailers that is located in
different part of the world. This is significant approach that will lead to have positive impact on
business as well as help company to earn more profits. There are large number of micro and
small Mum n Pop types of retailer shops in market area which is supporting in selling suppliers
products or services to large number of customers. Vodafone is considering selling through other
concept for increasing its sales as well as earning more profits. This will lead to provide various
benefits and advantages to respective company. Consideration of selling through other concept in
business will support Vodafone organisation to reach larger number of customers and full fill
their requirement by selling products and service. Selling through other is very important for
respective business as it includes various advantages to company. Importance and advantages of
selling through other is mention below in detail. Quick – Selling through approach is effective for fast and quick offering to customers.
Through this concept Vodafone company will be able to offer its products and services to
offers in more fast manner (Ahearne, 2017). This organisation is supplying its products
and offering to various retailer all around the world. It will help respective business to
increase efficacy of providing its services.
 Large customer base – Vodafone organisation will be able to increase its customers base
by considering selling through concept. This will help in lead to have positive impact on
company and support in increasing sales of organisation. Retailer and distributer will
have wide range of customer base and these customers can be easily targeted by
Vodafone organisation with the support of selling through concept.
 Understand market – Retail shops and distributer have information about customer and
market. The intimate understanding of distributer about the market can be consider as the
advantage to Vodafone company and support in enhancing sales (Brown, Boon, and
Pitt, 2017). Selling through retailers will help in offering products to customers as they
who whom to reach as well as which will be the most significant way to sell products to
prospective buyers.
 Marketing – Selling through approach is effective and important in conducting marketing
or selling practices. This will help customers to gain more information about company
products and services as well as choose the most suitable option. Distributers are
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providing correct and accurate information to customers along with their needs. This will
be helpful for Vodafone organisation to performing its marketing and sales activities.
Respective can take advantage of influencing customers through great quality of products
and services. Motivation – Retailers or distributors are selling suppliers products as their own in order
to earn more profits. This will lead to motivate distributers as well as help them to earn
more money by offering other companies product (Minnerand Transchel, 2017).
Motivated retailer will be able to increase sales of products and services of Vodafone
organisation and it lead to enhance the overall sales and profits of respective business.
Motivation can be consider as the importance of selling through other for company.
 Logistics – Vodafone company will be able to offering its products and services to large
number of customer and will be benefited by logistic activities of distributers (Bedeley,
Benbow, and Iyer, 2016). Logistics is very important function of organisation and
respective company will be able to easily perform its logistics practices by supplying its
products or services to customers. This will lead to have positive impact on business and
supply its offering to different part of the world by selling through approach.
 Storage – Selling through concept is important for storage of products and services to
different part of the world. Vodafone organisation is distributing its products and offering
to various retailer or distributers (Monden, 2019). This will lead to have significant
impact in storing products of company is correct amount as well as using it whenever
required. Selling through other approach is significant in storage of products and delivery
of good and services to customers.
 Financial saving - Selling through approach is very important for organisation as it will
help in saving cost of business. There are huge financial benefits or advantage that could
be attain by Vodafone organisation by selling though retailers (Chang, 2016). Respective
company will be able to save marketing and promotion cost of business as well as reduce
logistic or storing cost. These will help Vodafone company to save huge cost and earn
more revenues for business. Financial saving will lead to have direct impact on sales and
offering of respective organisation.
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P4 Analyse the key principles and techniques for successful selling and how they contribute to
building and managing customer relationships in application to specific organisational
examples.
Customer relationship is very important part of selling products and services to customers
as well as have impact revenues of organisation. It is very important for Vodafone organisation
to enhance its relationship with customers in order to improve business performance. Customer
relationship management can be define as the way or technique of developing and creating
strong relationship with customers. In this organisation is able to communicate and interact with
its potential customers as well as develop strong relationship with them. There are different
ways and techniques that will assist respective company to increase customer relationship and
build strong connection with customers. There are various benefits that could be attain by
respective company through successful selling and it will support in increasing sales and
profitability of respective organisation (Nguyen, de Leeuw and Dullaert, 2018). There are
different principles and techniques that can be use for successful selling of products or services
to customer and have major impact on growth of organisation. It is essential for Vodafone
company to consider principle of successful selling as it will lead to have significant impact on
increasing sales of organisation as well as support company to earn more profits. There are
different techniques of successful selling which will help in attracting customer as well as selling
products and services to potential customers.
Principles for successful selling
There are various principle that will support in successful selling of organisational good and
services as well as offering commodity to customer according to their requirements. Different
principle that should be consider by Vodafone organisation while selling its services are mention
below –
 Selling is about relationship – This principle state that seller needs to develop strong
relationship with its customer while offering company products and services (Syam and
Sharma, 2018). Selling process can be successfully completed with the ability of a person
to build relationship with the buyers.
 Sales is about problem not about product – Sales is not about the products or offering
of the organisation but it is about the problem or issues that will be solved by customer
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through the offering of customers. It is essential for Vodafone company to consider
problem of customers and selling its products or services in order to resolve their issues.
 Price and value go hand in hand – It is important for organisation to consider price of
product according to the value offered in products (Guesalaga, 2016). Vodafone
organisation needs to set price of its products which is according to the value contain by
products or services. If customer feel that price of products is higher than its actual value
then they will not purchase that product.
 Sales needs to be closed – According to this principle there is no sales until it is not
closed. Sales process will be completed when buyer purchase the products and the overall
process is closed.
 Those who listen, win – As per this principle it is crucial for organisation or sales person
to listen customer needs and provide products according to their preferences (Yang and
Zhu, 2020). Person who listen the requirement carefully will be able to successfully sales
the products.
Techniques for successful selling
 Understand needs – Analysing and determining the needs of customer is the effective
technique of successfully selling. Through this techniques Vodafone company will be
able to provide better services to customer and successful sale its products. For example,
customer who want strong internet network (Sasson and Johnson, 2016). Sales person of
Vodafone organisation should focus on providing services that is according to customer
wants.
 Focus on right lead – Vodafone organisation is targeting large customer base and it is
important for sales person to identify right lead to focus on making it a successful selling.
It is crucial to understand right lead and try to meet with their demand (Ahearne, 2017).
For example, customer who want telecom connection or internet facilities is the right lead
for Vodafone company.
 Build trust – It is very important for respective organisation to develop and gain trust
from its customer as it will lead to have significant impact on successful sales. Building
trust is the most effective techniques that can be used by sales person of respective
organisation (Yang and Zhu, 2020). For example, proper and accurate information with
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effective communication will support in increasing trust of customer as well as
successfully sales its products.
Contribute to building and managing customer relationships
Successful selling with support in developing effective customer relationship and
providing appropriate services to customers. There are various principles and techniques
regarding successful selling which will not only support in increasing sales of company as well
as developing strong relationship with customers (Sudhahar, 2016). Effective and efficient
customer relationship will lead to have positive impact on business as well as help in increasing
its sales. Customer relationship management is important part of Vodafone company as it will
increase the brand image of organisation in market area as well as increase customer base of
respective organisation. Successful selling principles and techniques are very supportive in
managing customer relationship.
 Understanding customer needs – The technique of successful selling includes
identification of customer wants and needs in order to provide products as per their
requirements. This will lead to have significant impact on developing strong relationship
with customer (Monden, 2019). Customer of Vodafone will be influence by the way
company or sales person is considering their needs and providing products or offering
which is able to resolve their problem.
 Increasing trust – It is important technique or principle of company gain trust of
customers. This organisation needs to provide correct information and accurate price
which is according to the value of offering. Consideration of this principle for successful
selling with help in building trust with customer as well as management strong
relationship (Nguyen, de Leeuw and Dullaert, 2018). Bond with potential customer will
be increase when sales person have effective communication skills by providing
information regarding the services.
P5 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures.
Sales strategy can be describe as the action plan that will support company to perform
organisational sales activities in more effective and accurate manner. There are different types of
11

strategy that can be used by respective company in order to enhance sales and earn more profits.
Sales strategy can be define as the document that will include blue print for positioning and
selling products or services to customer. This is effective strategy which is developed through
clear objectives and guidance for sales of products and services of Vodafone. In sales strategy of
respective company different approaches and techniques to increase sales of business is
determined which will lead to attain goals and objective business. There are different types of
sales strategy is consider by organisation that will have huge influence of customer and attract
then to buy the offering of respective company (Syam and Sharma, 2018). Sales strategy is
focusing on very narrow aspect of business which is to increase sales percentage of business and
sale as much possible products to customers. Account management is essential part of business
that will lead to provide accurate information and understanding about different data related to
business in correct manner. Account management will support in identifying which account have
more sales and which strategy have major impact on increasing business sales.
Importance of sales strategy
 Allow to understand customer needs – Sales strategy is developed by analysing and
determining the needs or wants of customers. This is the reason why sales strategy is
considered to be important for business and helps in identifying the actual requirement of
customers from business (Nunnari and Nunnari, 2017). Strategies regarding sales are
developed by considering the needs of customer and understanding their requirement
from business in order to sale more products to customers.
 Improve ROI – Sales strategy will lead to improve the return on investment from sales
terms. Effective and efficient strategies are developed by sales term of Vodafone
company in order to gain more as compare to invested (Hamdan and Cheaitou, 2017).
Sales strategy will lead to successfully earn more profits for business in order to increase
sales of business.
 Right hiring – Sales team of organisation have well defined methods and approaches to
conduct business task. By defining sales strategies respective company will be able to
deterring which employee is capable of conducting required task (Minnerand Transchel,
2017). This is important for right hiring in Vodafone company as well as placing
employees at right position.
 Managing task – Development of sales strategy is important as it will lead to provide
12

proper direction and guidance to employees for conducting organisational activities.
Sales of Vodafone organisation will support company to perform organisational task in
required manner in order to attain set goals. This will help sales team to increase their
capability and performance to carry out marketing and sales practices (Ahearne, 2017).
In sales strategies different method and techniques for attracting customer is determined
that will lead to have positive impact on influencing customers as well as increase sales
of business.
 Accomplishment of goals – It is important for respective company to develop effective
and strong sales strategy in order to attain desired goals and objective of business
(Hamdan and Cheaitou, 2017). Vodafone organisation and sales team will be able to
attain its desired goals with the support of sales strategy as it will assist in providing
accurate path to accomplish set targets.
Sales structure refer as the path way which is consider by organisation or sales team to follow
information. It is essential for Vodafone to have proper and well defined sales structure that is
supportive in following sales strategy and instruction in proper manner (Skiba, Saini, and
Friend, 2016). Right sales structure will lead to have significant impact on performance and
capabilities of employees. Sales strategy of organisation is majorly linked with the sales structure
of business and it will lead to have direct impact in productivity of employees as well as
increase in sales. Account management will lead to provide information and data regarding the
sales of business. Sales strategy of Vodafone company fits with the sale structure as top authority
is responsible for developing goals that should be attain by sales team. Employees in middle
level needs to develop strategy and framework for attaining goals that is set by top authority.
Employees at lower level will be responsible for working and implementing strategies to attain
goals in correct manner.
CONCLUSION
From the above report, it can be concluded that there are different principles of sales
management that can help an organization in carrying out its business operations in an effective
manner. Sales reporting plays an important role as it allows the sales managers to track the
overall performance of sales representatives as well as the different activities relating to sales
that take place in the company. Also, a sales structure in the company refers to the design of the
sales team. This can be done based on the market, product or geography due to which the
13

company can reach its target market effectively. There are different techniques that can be used
in order to sell the products effectively in the market. These techniques also facilitate a strong
customer relationship management for the company. A sales strategy, if developed effectively
can significantly contribute to the overall profitability of the firm. Lastly, different methods of
finance can be opted for building a strong and successful customer portfolio. This can help the
company in gaining a competitive advantage against competitors.
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