Sales Management and Organization Structure

This assignment delves into the world of sales management, exploring various techniques and strategies for organizations to sell products or services effectively in the market. The report includes references from books, journals, and online sources, covering topics such as sales control systems, scarcity effects, and organization structures. It also provides a summary of key findings and insights, making it a valuable resource for students and professionals in the field.

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Sales Management

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Key Principles of sales management in context of importance of sales planning , method
of selling and sales reporting .....................................................................................................1
P2. Evaluating the benefits of sales structures and analysing the way they are organized ........4
P3. Significance and advantages of selling through others ........................................................5
LO 3 ................................................................................................................................................6
P 4. Key principles as well as techniques for successful selling ................................................6
P 5. Significance of developing sales strategies which yield the highest profitability ..............8
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

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INTRODUCTION
Sales management can be defined as the procedure which includes coordination of people
as well as resources in order to achieve desired objectives. It can also be considered to be as the
business disciple which concentrates on application of different strategies or methods in order to
accomplish desired sales target. Sales management is considered to be as crucial business
function which assisted an organization in improving the financial performance. It is the
procedure which involves development of sales strategy as well plan, administration of people,
establishment of short as well as long term target etc. Success and growth of an enterprise is
completed dependent on sales management. The purpose of sales management is to sell the
products or services at optimize price.
The study have focus on identifying the key principles of sales management in context of
marks and Spencer. It is a British Multinational organization which specializes in selling
products or services. Study will emphasize on analyzing the benefits of sales structure.
LO 1
P1. Key Principles of sales management in context of importance of sales planning , method of
selling and sales reporting
Sales management can be referred top as a procedure of developing sales force,
administrating the sales activities and implementing the sales technique in order to assist firm in
accomplishing desire sales targets. The four key elements of sales management are :
Planning :The sales plan is developed by manager in Marks and Spencer based on the
information collected through market research. It is required by manager in Marks and Spencer
to develop the flexible Plan in order to enable variation in production (Agnihotri, 2018.).
Manager in marks and Spencer should have discussion with the managers or leaders of different
functional units within an organization, as this tactic will assist different heads of the department
in identifying their roles and responsibilities in execution of specific plan.

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Coordination : It is considered to be as most important function which is required to performed
while developing as well as implementing plan. Coordination is considered to be as an important
part of management procedure. It is the function which assist in proper utilization of resources
including human efforts. In context of marks and Spencer, manager in an enterprise is required
to encourage direct personal contact among employees working in firm. Manager in order to
ensure proper coordination can provide open communication channel to workers. Harmony and
not discord is the management principle which can be applied by manager in marks and Spencer.
Controlling : In context of marks and Spencer, it is required by manager of sales department to
continuously monitor the sales activities. Role of sales manager is to provide proper guidance,
instruction and motivations to sales team, so that desired sales target can be achieved. The
different techniques which can be utilized for controlling the sales activities are development of
schedules and establishment of target. In context of marks and Spencer , sales manager in an
enterprise has applied the budgeting technique which ash assisted them in identifying the
variations.
Motivating : It is considered to be as important factor in order to positively influence employees
for making their significant contribution in achievement of desired sales target. Manager in
marks and Spencer is required to develop the understanding about behavior pattern, as this tactic
will assist them in identifying as well as selecting the best technique of motivation. Development
of the reward or incentive system can be applied by manager in marks and Spencer for inspiring
marketing as well as sales employees to improve their performance (Terada, Yamanaka and Oda,
2019)
Key principles of sales management are :
Lead by example: It is required by manager or leaders in marks and Spencer to provide positive
examples. Manager in marks and Spencer should follow all the policies and code of conducts.
The quality of an effective sales manager is that they form strict policies as well as standards as
per the requirement by organization. Manager in marks and Spencer should develop the quality
of forming strict policies for them as this will provide them ease in managing the sales.
Effective training : This principle states that proper training, controlling, quality management
and supervision is very much essential with regards to proper sales management. According to

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this principle, manager or leaders in marks and Spencer is required to provide proper and
continuous training to employees, as this strategy will help then in improving sales performance.
Effective manager coaching : According to this principle, marks and Spencer need to make
investment in providing to coaching to manager so that they can provide proper training to
workers. It is required by manager or leader in marks and Spencer to set goals, conduct
performance reviews offering praise as well as constructive criticism. In addition to this, leaders
should listen to the problem faced by employees and help workers in finding an appropriate
solution, as this tactic will help management in ensuring desired outcomes.
Importance of sales Planning and reporting :
Sales planning : it plays crucial role when specific goods or services are required to be
launched in the market. In context of marks and Spencer, Sales plan has assisted management in
formulation of strategies according to the needs as well as demands of customers in the market.
Sales planning is important as it aids management in identifying the risk.
Sales reporting enables manager in an organization in addressing those factors which has
direct as well as significant effect on the success of firm. In context of marks and Spencer, sales
reporting system has assisted management in identifying the best techniques as well as strategy
which can be applied to increase sales and profitability (Sharma and Syam, 2018.). An effective
sales reporting includes elements such as sales metrics which supports manager in analyzing the
aspects of sales activities. It helps management in analyzing the performance of sales team. In
addition to this, sales planning helps sales team in development of critical as well as creative
thinking.
The different sales methods are :
SNAP selling :this sales method emphasizes on the way customer makes buying decisions.
According to SNAP selling method, it is required by sales person in marks and Spencer to
concentrate on winning trust of clients and truly showing the value offered by company.
Challenger sales: It is considered to be as one of the best selling method that can be adopted by
marks and Spencer. Challenger sales concentrates on developing the strong relationship with
customers (Claro, and Ramos,2018.). According to Challenger sales method, sales person in

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marks and Spencer is required to provide complete information about the product or services
offered by the company.
Challenger sales is considered to be as effective method of selling as it helps an organization in
gaining the customer loyalty which is very much crucial in order to maintain or improve sales
performance.
Sandler sale method : This method of selling inspires sales person to act as reliable source. It is
the method which only emphasizes on technical aspects. In context of marks and Spencer, sales
person is required to identify the technical issues and before applying the specific solution they
need to analyze the effect of same on the financial performance of firm.
Consultative selling method: In this technique or method of selling, salesperson act as expert
consultant for organization and ask customer question regarding their needs. It is the selling
method which ha been adopted by marks and Spencer with the motive of developing the strong
bond with the customers. Consultative selling method is considered to be as best as it provides
organization an ease in influencing people to buy specific product or service.
P2. Evaluating the benefits of sales structures and analysing the way they are organized
Sales business structure can be defined as the way the sales department in an enterprise is
organized or structured for carrying out sales procedure. The four main components of sales
structure are : Sales force structure, sales composition, territory design and territory account, and
lead assignment. Sales structure of companies is completely based on the business strategists
and size.
In context of marks and Spencer, an appropriate sales structure is beneficial in context of
attracting as well as retaining sales workforce. Sales structure is also important in order to
improve sales performance of an enterprise. The different types of organizational sales structures
and benefits and drawbacks of the same are :
Functional sales structure: It is the structure which is presently adopted by marks and Spencer.
This is basically a hierarchical sales organizational structure. In context of marks and Spencer,
management in enterprise has grouped employees according to their area of specialization.

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Benefits : the major benefit of this sales structure is that it helps sales person in increasing their
working efficiency in context of sales performance (Andersson, Axelsson and Rosenqvist,
2018.). In addition to this, the other major benefit of functional sales structure is that
management have complete control on selling activities.
Drawbacks: It involves high cost. There are chances of geographic duplication.
Geographic sales organization structure: This sales structure consists of fewer management
level. It is considered to be as one of the most efficient sales structure. Geographic sales structure
consists of divisional structures which is grouped based on customer, good , service etc.
Benefits : The main benefits of Geographic sales organization structure are it is less costly. In
addition to this, geographic sales structure helps an organization in eliminating the customer and
geographic duplication. This sales structure can be adopted by marks and Spencer, as it will help
management in making quick decisions.
Drawbacks: The major drawback of geographic sales structure is that management does not
have control on goods as well as concentration on customers.
Product sales structure: This sales structure is the best suitable those companies which has
complex as well as broad product line. Product sales structure assist firm in differentiating
competing product lines and provide management an ease in coordinating as well as aligning
sales metrics. Under this sales structure, business is organized in separate divisions each section
concentrating on selling different goods or services.
Benefits : The biggest benefit of this sales structure is that an individual get an expertise in
selling the specific product. Product sales structure can be used by marks and Spencer as it will
assist management in retaining their control on an efforts put by employees for selling specific
product.
Drawbacks: Major drawback of product sales structure is that it involves high cost. There are
high chances of duplication of customers and geographic.
P3. Significance and advantages of selling through others
In context of marks and Spencer, selling products or services through other retailers,
distributor or wholesalers can be a cost effective way of reaching customers. Marks and Spencer
company can form strategic partnership with online retailers, as this strategy will assist an

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enterprise in increasing sales and profitability. It will also enable an organization to sell its goods
or services to wide number of customers. One of the major advantage of selling products or
services through distributor is that firm can easily promote products directly to end-customers.
Distributors will be keener to stock and sell products that their customers are asking for.
Importance as well as advantages of selling products or services through others In context of
marks and Spencer :
Quick delivery of goods or services: Selling through distributor or online retailer has great
importance as by seeking support from them companies can make quick delivery of products or
service which is very much important in order to influence customers to make frequent
purchases (Cachon, Gallino and Olivares, 2018). In context of marks and Spencer, an enterprise
can gain benefit of quick delivery of goods by seeking support from distributor or online
retailers.
Wide customer base : Selling through online retailers or distributors have great significance, as
it helps an organization in increasing customer base. In context of marks and Spencer, an
enterprise can increase its customer base by seeking support from distributor or online retailers.
As both online retailers as well as distributors have built up a variety of markets and they have
knowledge about the techniques which can be utilized for selling the products to customers.
Those people also have knowledge about the way of reaching the customers and influencing
them to buy specific products or services.
Distribution channel : Marks and Spencer by selling products or services through online
retailers and distributor can penetrate into market. As this strategy will help an organization in
creasing sales and profitability. In addition to this, by seeking the support from the online
retailers or distributor marks and Spencer can make quick delivery of products or services to
customer at global level.
Financial saving : In context of marks and Spencer, selling of goods or services through online
retailers or distributor can assist firm in saving the money. As organization will not be required
to make huge investment in marketing or advertisement activity, it will lead to the saving of
money.

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LO 3
P 4. Key principles as well as techniques for successful selling .
The key principles and techniques can be applied by marks and Spencer for increasing
sales and profitability are :
Development of positive sales culture: according to this principle, it is required by manager in
marks and Spencer to develop an effective sales culture, as this will help then in encouraging
people to improve their sales performance which will automatically results in successful selling.
In addition to this, an effective leadership is also very much crucial in order to drive sales team
towards success. This principle states that it is positive culture which helps employees working
in sales department to identify their roles as well as responsibilities (Malek, Sarin and Jaworski,
2018). It is important for manager or leaders in marks and Spencer to have an active discussion
with their sales team and supports salesperson in improving their skills as well as core
competencies.
Understating as well as utilizing sales technology: It is the key principle of successful selling.
According to this principle, management in marks and Spencer should develop the understanding
about the way align sales methods with technology. Sales team in marks and Spencer need to
gather the all important information related to customers which is considered to be as important
aspect of successful selling. Sales person in marks and Spencer should develop the potential or
expertise to transform the dense data into tangible. They are required to learn about the way or
technique to make visually appearing appeal to customers.
Making sense of the data: information is the factor which can help an organization in selling
their products or services successfully to customers. As per this principle, it is required by sales
team in marks and Spencer to collect all the information related to the needs of customers.
Market research can be conducted by sales team in marks and Spencer for accumulating the facts
related to the requirement of different products or services by consumers (Deeter-Schmelz,
2018).
Advantages of market research is that it can help marks and Spencer in identifying the
needs and wants of customers. Major drawback is that execution of market research might

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requires marks and Spencer to make huge time and cost investment which can have adverse
effect on sales performance.
Know customers:As per this principle, it is very much important for an enterprise to have
complete knowledge about the target customer group. Social media is considered to be as key
principle of successfully selling which can be utilized by marks and Spencer. In context of marks
and Spencer, an organization can utilize the social media for the gathering the feedback from
customers. In addition to this, it is required by marketing manager in marks and Spencer to
prepare such content which helps in making the positive impression on customers mind.
Advantages : By utilizing the social media, marks and Spencer can reach to wide number
of customers and could sell products or services. In addition to this, social media can provide
marks and Spencer an ease in gathering the information about customers. The major drawback of
use of social media for business is that it might add additional cost to marks and Spencer.
Customer retention : It is considered to be one of the most important key principle of
successful selling. In context of marks and Spencer, management in an enterprise needs to
concentrate on retaining their existing customers and sales team is required to focus on attracting
more number of customers (Rangarajan, Paesbrugghe and Boute, 2018.). As it will help an
organization in increasing the customer base which is very much essential in context of
successful selling. Marks and Spencer can retain its existing customers as well as attracts new
customers by offering referral bonus.
Advantages of rewarding the loyal customers is that it is one of the most effective cost -
way of keeping the customers happy.
The major drawback of customer loyalty program is that it can be quite time consuming
for marks and Spencer. For instance time spent on loyalty program can be utilized by sales team
in marks and Spencer for conducting the promotional activities.
P 5. Significance of developing sales strategies which yield the highest profitability
Sales strategy can be defined as a plan which consists of detailed about the activities
which will be conducted by an organization in order to sell goods or services. It is the plan which

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assist firm in successfully selling the products or services. In context of marks and Spencer. An
effective sales strategy has assisted an enterprise in earning high revenue as well as profit.
Development of sales strategy is crucial in order drive an organization towards achievement of
desired sales target. Sales strategy is also important in for supporting firm in improving financial
performance. It is also very much essential in context of boosting repeat business. In context of
marks and Spencer, an effective sales strategy implemented by marketing manager has assisted
business entity in fulfilling the needs of client. It has also supported firm in meeting the
expectation of customers in the market (Katsikeas, Spyropoulou and Menguc, 2018.). An
effective sales strategy is important in order to support an enterprise in making real quantifiable
profits. The importance of sales strategy for marks and Spencer :
Addressing the needs of customer at every stage: It is very much important for sales person in
marks and Spencer to provide the complete information about the functionality as well as feature
of the product which might be quite difficult task. Identifying the prospects during the
formulation of strategy can assist management or sales manager in determining the approach
which can be helpful in solving the specific issue leading to delay in sale of specific product or
services.
Improving the return on investment on sales team:sales strategy is important in context of
measuring the effectiveness of the different tactics applied by organization for increasing sales.
In context of marks and Spencer, management in an enterprise can maximize outcomes by just
concentrating on the techniques which has been proven to be effective in driving enterprise
towards sales target. It is the sales strategy which supports business entity in getting the most out
of sales budget.
Hiring of right people : Recruitment is the most crucial activity performed by Marks and
Spencer. In context of recruitment, it is the sales strategy which provides management with well
defined method as well as goals on the basis of which hiring procedure is conducted. An
effective sales strategy supports management in determining the skill set or expertise which will
be needed in order to drive firm towards accomplishment of desired sales targets. It is the sales
strategy which has supported management of marks and specter in communicating the
expectations which they have from their sales team (Mardikar, 2018).

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Importance of incorporating account management in sales structure
Developing strong relationship with existing clients for transforming them into key
strategic accounts is very important element of sales strategy. In case of Marks and Spencer, it
has been analyzed that selling the products or services to existing customer is more profitable for
firm as compared to attracting new customers. Incorporating the account management in sales
structure is important, as it provides management as well as sales team an ease in identifying
those customers who are contributing to the increase in revenue of firm. Incorporating accounts
management in sales structure is important in order to provide sales manager an ease in
determining as well as arranging the resources which are required for performing different
activities in order to achieve desired sales target.
Corporate finance principles are :
Investment principle : According to this principle of corporate finance, every organization have
resources which is required to be allocated in most efficient manner. In context of unique
technique adopted by marks and Spencer for evaluating the investment opportunities has assisted
an enterprise in gaining the competitive advantage (de Freitas, Prado and Moreira, 2018). It has
also helped business entity in gaining the higher rate of return on investment.
Financing principle: This principle states that investment decision taken by finance manager
has great impact on the minimum expect able hurdle rate. It is needed by finance manger in
marks and Spencer to ensure that an organization has sufficient amount of capital.
Dividend principle: as per this principle of corporate finance, every organization reaches the
stage of life cycle where the cash flow exceeds the expected hurdle rate. In context of marks and
Spencer, if an enterprise reaches such phase, then it is required by management in an enterprise
to determine the ways of rewarding the owners or shareholders, as this technique will help an
enterprise in gaining the competitive advantage.
CONCLUSION
It has been concluded from the report that sales management is very much essential in
order to improve sales as well as financial performance of an organization. The other fact which
has been found during the study is that the design of organizational sales structure is based on the
nature as well as size of business. It has been concluded from the project that development of an

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effective culture within an enterprise is very much important in order to encourage sales person
to improve their performance. The other thing which has been summarized from the above report
is that it is the sales strategies which can be helpful in driving firm towards accomplishment of
desired sales target. It has been concluded from the assignment that incorporating account
management in sales structure is important in order to support company in generating high
revenue.
The different techniques as well as strategies has been suggested in the report which can
be used by an organization for selling the products or services to customers in the market.

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REFERENCES
Books and Journals :
Deeter-Schmelz, D.R., 2018. Personal Selling and Sales Management Abstracts. Journal of
Personal Selling & Sales Management, 38(4), pp.422-434.
Sharma, A. and Syam, N., 2018. Sales and customer development: An agenda for
inquiry. Industrial Marketing Management, 69, pp.133-134.
Terada, A., Yamanaka, K. and Oda, M., FANUC Corp, 2019. Application sales management
server system. U.S. Patent Application 15/992,536.
Agnihotri, R., 2018. Ramendra Singh: sales and distribution management: a practice-based
approach.
Claro, D.P. and Ramos, C., 2018. Sales intrafirm networks and the performance impact of sales
cross-functional collaboration with marketing and customer service. Journal of Personal
Selling & Sales Management, 38(2), pp.172-190.
Andersson, P., Axelsson, B. and Rosenqvist, C. eds., 2018. Organizing Marketing and Sales:
Mastering Contemporary B2B Challenges. Emerald Publishing Limited.
Cachon, G.P., Gallino, S. and Olivares, M., 2018. Does adding inventory increase sales?
evidence of a scarcity effect in us automobile dealerships. Management Science.
Malek, S.L., Sarin, S. and Jaworski, B.J., 2018. Sales management control systems: review,
synthesis, and directions for future exploration. Journal of Personal Selling & Sales
Management, 38(1), pp.30-55.
Rangarajan, D., Paesbrugghe, B. and Boute, R., 2018. Aligning sales and operations
management: an agenda for inquiry. Journal of Personal Selling & Sales
Management, 38(2), pp.220-240.
Katsikeas, C.S., Spyropoulou, S. and Menguc, B., 2018. Unpacking the relationship between
sales control and salesperson performance: a regulatory fit perspective. Journal of
Marketing, 82(3), pp.45-69.
Gotanda, T., Nakajima, T., and Hiramatsu, K., Toshiba TEC Corp, 2018. Point-of-sale terminal.
U.S. Patent Application 15/888,214.

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de Freitas, L.C., Prado, W.B.,and Moreira, A.C.D., 2018. Minimum sale price of eucalypt timber
considering reforestation to vegetal coal production and sawmill. Nativa: Pesquisas
Agrárias e Ambientais, 6(5), pp.526-531.
Mardikar, U., 2018. Consumer identity and security at points of sale. U.S. Patent Application
15/606,294.
ONLINE :
Sales organization structure. 2019.[Online]. Available through
:<https://blog.hubspot.com/sales/pros-and-cons-sales-organizational-designs-chart>.