Principles of Sales Management: Doc

SALES
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key principles of sale management along with importance of sales planning, method of
selling and sale reporting............................................................................................................1
M1 Analyse how the principles of sale management will be different in response to consumer
and business buying behaviour...................................................................................................4
TASK 2............................................................................................................................................4
P2 Analyse the benefits associated with sale structures and the manner in which they are
organised.....................................................................................................................................4
P3 Importance and advantages of the concept “ selling through” others....................................6
M2 Critically analyse the implementation of different sale structure types using organisational
example.......................................................................................................................................7
D1 Produce a coherent and justified evaluation based on understanding of sales management,
selling techniques and structure within organisation context.....................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Sale is defined as a transaction between two entities or parties in which the buyer buy
assets, goods or services in return of capital. In general, it is an agreement among sellers and
buyers for a selected service or good. Sales management is the procedure of formulating a sales-
force, coordination of sales operation, sales technique implementation which allows a business to
hit and surpass its selling targets (Drucker, 2012). Key aspects which are associated with sales
management are sales strategy, sales analysis and sales operations. Main purpose of sale
management is not to manage sales in an appropriate manner but to manage those people who
make sales. This report is written in context with Marks & Spencer which is a UK based
manufacturer and retailer of cloths, food and home products. Company is headquartered in. This
assignment includes key principles associated with sales management in relation with method of
selling, sale reporting, sales planning. Benefits of sale structure are described along with the
manner in which they are organised. At last, importance and the advantages of concept of selling
through is discussed.
TASK 1
P1 Key principles of sale management along with importance of sales planning, method of
selling and sale reporting
Sales management is an essential aspect to achieve success in a business as sale appraises
the performance of an enterprise. To be a top retailer around world, M&S needs to properly
manages its sales. It is the responsibility of sales manager of M&S to manage sales of company
so that high profit margins and revenues can be earned. Sales management provide support to
sales team so that they can work effectively and desirably. Sales management programs allows
the sales team to be in contact with the clients due to which required improvement in products
take place on regular basis. Sales report defines what products are sold and where, this means it
optimizes distribution process also (Evans, Stonehouse and Campbell, 2012). Key principles of
sale management in respect with M&S are mentioned below:
 Manager makes a difference: Amount of sales a company generate is directly
associated with the capabilities & abilities of the sales manager of that concerned
company. A skilled sales manager is able to reduce employee turnover, enhances
productivity and sustains a strong customer base for a company by providing required

training to employees. Effective training of sales force results in generating high revenues
for M&S which will helps the company to gain competitive advantage over rival
companies. If a manager is capable and skilled then there is a possibility that firm will
able to pursue sales planning in an appropriate manner. Sales planning will benefits the
firm in achieving expected sales and revenue, if manager is capable to work desirably.
Sales planning will benefit the firm in acknowledging market demand with the help of
appropriate selling techniques. Manager can use feature selling in which features of a
product are specified to customers so that a stabilised sales can be maintained. An
efficient sales manager will be able to acknowledge sales report in a desired manner.
Sales report will allow the manager to know whether sales of a company are increasing or
decreasing.
 Leads by example: Manager in sales department needs to incorporate self-discipline in
its working behaviour so that they can efficiently leads their team and department. Sales
manager in Marks & Spencer needs to strictly follows all the procedures and policies of
company so that a proper standard can be maintained within workplace. A successful
sales manager, must guide their subordinates by teaching them the tactics by which sales
of company can be enhanced. Leading by example and experience will benefit the
company in formulating an effective sales plan. This sales planning will define what
products M&S wishes to sell and in what quantity. Sales planning will allow the
company to know about appropriate selling method or technique which will allow the
firm to gain competitive advantage over rival companies. Different selling methods will
guide sales team to achieve desired outcomes. With the help of sales report, manager in
M&S can change the policies and procedures which acts as a barrier in achieving desired
sales.
 Golden rules of sale management: Another way by which a company can enhances its
sales is through treating their workforce as a valuable asset. If welfare of employees will
be given consideration, they will deliver their best performance. Thus, a sale manager
needs to treat its employees with respect and care so that they can feel more connected
with M&S. This will helps them in convincing customers to buy products and service of
company which will results in enhanced sales (Goebel, Deeter-Schmelz and Kennedy,
2013). If employees in a firm will be treated as an asset then it will become easy for them

to properly following the sales plan which is formulated by manager. Sales plan will
involve different aspects such as targeted people and location, where company is going to
sell its products etc. If employees will follow sales plan properly then M&S will be able
to achieve desired results with the help of different selling techniques. These selling
techniques will attract large customer base on the basis of value and feature of product. In
this, sales report will specify by which selling method sales of company are increasing or
decreasing. In according to that new strategies can be formulated.
 Manage on objective information: When salesperson of a firm are not happy or
satisfied while working under their sales manager, this means that sales-manager are not
performing their duties in a desired way. This can be due to the fact that sometimes sales
manager of a company starts working according to their opinions without considering
objective information. This can results in problems and barriers in effective sale process
of M&S. Hence, sales manager in M&S needs to manage objective information in a
desired manner so that employees can work without facing any issues. Objective
information will assists the company in formulating an effective sales plan which will
enhances the sale of a M&S desirably. Sales planning will include different selling
techniques which will consider objective information while selling in a considerable way.
In this respect, consultative selling is best alternative in which value of product is
specified. Sales report will help manager in acknowledging the impact of sales planning
and selling technique on revenue of firms.
 Be goal oriented: Sales manager of big organisations such as M&S, needs to establish
objectives and goals in an effective manner so that firm can achieve profitability.
Explaining these goals and objectives to the sales team will guides them in right direction
(Havaldar and Cavale, 2017). This will helps them in analysing what they have to do
and in how much time. These goal-oriented operation initiated by sales manager in M&S
will enhances the sales of company in a considerable manner. If the manager is goal
oriented, then it will became easy for them to design an efficient sales planning which
will allow the firm to achieve its desired goals without facing any barriers. There are
different selling techniques such as value, feature, transactional and consultative selling.
Manager can choose any of it according to the product and preference of people. Sales

report will specify if the appropriate selling technique is benefiting the firm in achieving
desired sales or not. Sales report will also include the demand of product within market.
M1 Analyse how the principles of sale management will be different in response to business and
consumer buying behaviour
Different consumers have different buying behaviour. Some customers prefer to buy
products according to price where as other consumers prefer to purchase product according to the
quality. As per the principles of sales management that are adopted by business having an main
aim about earning of large number of revenues But on the other hand, the concept which covers
under consumer buying behaviour is about acquisition of good value product at low cost. So, the
difference that can be determined in between two is about their perception and perceived value
as both have their own different aims and objectives.
TASK 2
P2 Analyse the benefits associated with sale structures and the manner in which they are
organised
Sale structure: It is a procedure by which sales department of a company is structured so
that the sale process can be carry-out effectively. Without sale structure, entire sale process of a
company will become a mess as no coordination will takes place among sales and product
requirements. This sale structure will helps M&S to identify the manner in which sales
department is organised and how maximum sales growth can be achieved. Hence, to understand
future growth and sales of company, sales manager in M&S needs to understand the structure of
sales organisation in a proper manner. Below are mentioned different types of sale structure
along with their benefits:
Geographic sale structure: This kind of structure is also called as territorial sale-force
structure. In this sale structure, employees are bring together within a geographical division.
These divisions are formed according to the need of a product within a region. In case of M&S,
these divisions will acts as an individual companies which perform their organisational functions
according to their requirements. Benefit of this sale structure is mentioned below:

 Fulfilling the needs of customers become an easy process due to different divisions for
different regions as providing facilities form a centralised location will be a complex
procedure (Laudon and Laudon, 2016).
 It benefits M&S in less duplication of efforts with consumers.
Product sales force structure: It is defined as a sales force firm in which salesperson is
an expertise in selling particular products of the company. These salesperson are only familiar
about their products and have no knowledge regarding other sold-able products of the firm. M&S
delivers different products to their clients over a wide geographical range. For that different sales
force structure are combined which are formed through customer, territory and products.
Benefits of product sale-force structure is given beneath:
 Salesperson became an expertise in product leading.
 Selling efforts that are needed for sales are easily guided by management.
Market based structure: This structure is also referred as customer sales force structure.
In this type, sales reps are grouped around considering industry or customer. It is the duty of
different salesperson in M&S to offer distinct commodities and products to the clients. This can
be explained on the basis of one example i.e. M&S specialises in clothing and home products,
this means salesperson of the company needs to have appropriate knowledge regarding cloth
fabric and styles. If sales team of M&S will not be well familiar with the products then they will
not be able to sell them in large volume. Benefit of this sale structure is mentioned beneath:
 Salesperson acknowledges the requirements of clients in a proper manner and sustains a
stronger relationship with them.
 Another advantage of this sale structure is that management control can be allocated to
various markets in a strategic manner (Miao and Evans, 2012).
P3 Importance and advantages of the concept “ selling through” others
Sell through is referred as the percentage of the product or service which is sell by a
retailer after shipping it from a supplier. Sell through for companies is evaluated for a particular
time span which is usually one month. Sell through concept denotes direct sales. Nature of sale
which fills up channelling inventory varied for sales that reaches the end consumer. Sell through
is referred to those sales which reaches to end customers. In this concept, inventories need to be
replenished and filled in a timely manner as the products offered by M&S are needed by

customers on a regular basis. But selling through intermediaries will be more beneficial for M&S
rather than selling directly to its customers, as it will be more cost-effective for the company.
M&S can aim to sell its products to wholesalers which posses good relation with large customer
base (Shaw, 2016). These wholesalers can also sell products of concerned company to different
retailers which deals with end customers desirably. M&S can distribute their products and
services through various channels and levels such as manufacturer-customer, manufacturer-
retailer-customer, manufacturer-wholesaler-retailer-customer.
Importance of selling through others are mentioned below:
 Taps into existing customer base: Sincere efforts and time is needed to build trust with
customer base. While working with resellers such as wholesalers, retailers etc., M&S will
be able to sustain a strong relation with those customers which are linked with resellers.
Hence, sell through others will help M&S in reaching more customers along with
leveraging of brand reputation.
 Enhances level of market growth: This selling through other concept will benefits
M&S in increasing the product growth level in marketplace as distribution channels of
company will increase considerably. Due to this, products of M&S such as cloth, home
and food products will enjoy more market recognition and growth.
 Cost effective: Retailers and wholesalers usually have their own marketing and sales
team due to which they are capable to perform all important sale procedures in an
effective manner. Distributing products through already established processes, logistics
and systems will help M&S to cut their time and costs which are needed to expand
business operations.
 Less time consuming: In this sell through concept, company delivers their products with
the help of intermediaries rather than directly dealing with costumers. Due to this,
products and services reaches to the customers in less time period and satisfaction level
of customer enhances. This will benefit the company in enhancing their sales and
revenues desirably without facing any complex situations (Smith and Zook, 2012).
Advantages of selling through others:
 Provide logistic support: Selling through other means selling products with the help of
intermediates. These intermediaries provides logistic support of the firm i.e. they assures
effective and smooth physical distribution of commodities and products. These

intermediates maintain the storage and shortage of supplies so that end consumer can
have easy access of goods. Due to which customers will not face the shortage of products
offered by M&S and sales of company will not decline.
 Provide transactional functions: With the help of their contacts, intermediaries covers
market in an effective manner. This is helpful for both customers and manufactures as
objective of both are getting fulfilled. Customers finds it easy to purchase commodities
without reaching central location due to which their comfort zone increases where as
sales of company increases due to which revenue and profit enhances.
 Burden sharing, time and cost saving: Intermediators such as retailers and wholesalers
share various responsibilities of the manufacturing companies by taking care of stock
management, setting up sales office, storage etc. These intermediators also shares costs
which are incurred in advertising and promoting products. Due to which, burden on
company reduces to a certain extent.
M2 Critically analyse the implementation of different sale structure types using organisational
example
To maintain sales and revenue of a company in a desired manner, it is very important for
the sale-manager of the firm to chooses a desirable sale structure so that company can earn its
desired revenues and profitability. Different sale structure posses some advantages and
disadvantages which implies their effectiveness in respect with Marks & Spencer. In case of
geographic sale structure, benefit is that appropriate territorial management results in less
duplication of efforts in form of same customers. But drawback with this structure is that sizing
different territories can be a challenging task and leads to uneven opportunities and revenues. In
case of product sales-force structure, benefit is that sales representatives formulates product
expertise whereas drawback is that due to duplication of efforts within geographies will increases
costs and expenses of M&S in a considerable way (Wang and Miao, 2015). In market-based
structure, benefit to M&S will be that a strong and robust relation with clients will be formed
which will results in enhanced brand loyalty whereas drawback is that this procedure is wide and
require high capital and finance to maintain.

D1 Produce a coherent and justified evaluation based on understanding of sales management,
selling techniques and structure within organisation context
Sales management is a procedure in which an organisation manages the salesperson of an
organisation so that desired sales can be earned by company. Sale management will allow the
company to have a proper interaction with customers so that they can be satisfied appropriately.
Positive aspect associated with consultative selling is that it will allow the firm to analyse and
recognise the needs to consumers regarding product or service appropriately. Negative aspect is
that it require high amount of funds due to which company can face mismanagement of finance.
Product Sale-force structure allow sales representative to become a product expertise where as
disadvantage is that to implement this structure high coordination is needed when different
representative posses same geographic accounts. One of the best technique that is used by an
organisation for the purpose of sales management is about trend analysis. As this will aid in
determination of their new value and beliefs according to which changes are carried on in
products.
CONCLUSION
From above mentioned report, it can be concluded that sales management is an important
aspect in maintaining the revenue and shares of a company., if sale manager of the firm is not
efficient then it is not possible for company to achieve their objectives in a desired manner. Sales
planning, report and method of sales provide support to company so that selling of products and
services can be carried out easily. Sale structure of a firm defines the sale pattern of an
organisation. There are different advantages which a firm can achieve by adopting sales through
other rather than individual selling.

REFERENCES
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