Role of Sales Department in Increasing Profitability of an Organization

This study explores the role of the sales department in increasing profitability of an organization, with a focus on Waitrose. It discusses the responsibilities of the sales department, its importance in generating revenue, and its main duty in improving profitability. The study concludes that the sales department plays a crucial role in enhancing the profitability and brand image of the organization.

Research
Methodologies

Contents
Chapter 1: Literature Review Introduction......................................................................................3
Chapter 2: Literature Review Main Body.........................................................................................4
Role and responsibilities of sales department within an organization................................................4
Importance of sales department in generating revenue......................................................................5
Main duty of sales department in improvement of profitability level of Waitrose.............................6
Chapter 3: Literature Review Conclusion.........................................................................................7
REFERENCES....................................................................................................................................8

Tittle: “To identify the role of sales department in increasing profitability of an
organization”. A study on Waitrose.
Chapter 1: Literature Review Introduction
LR is considered as an important activity that refers to the summary of previous
studies on the basis of selected research area. Mainly, it is theoretical aspect that provide
detailed information that support in taking valid and reliable outcomes at the end of the
investigation. Along with this, it also includes review of already published books, articles,
newspaper, magazines and any more sources which is based on the specified area of interests.
The main objective of this section is to evaluate as well as analyse the depth data that directly
provide support to investigator in taking a right judgement within the research activities. In
addition of this, it is critical evaluation of past analysed studies to determine the appropriate
gap and at the same time also may aid in enhancing the chances of attaining positive and
reliable results that make overall study more effective and reliable in nature (Downey and et.
Al., 2015). As, it is not chronological catalogue of selected resources but it is detailed
evaluation that assist in analysing the actual theoretical information on the basis of
determining the actual role of sales department in enhancing sales and productivity level at
market place. Under this regard, researcher undertake this section that is based on the
secondary sources of data in which investigator use certain sources like published articles,
books, journals and many more to gather relevant data and information. By this, investigator
can easily take right and appropriate decision within the investigation and also make it more
authentic. Along with this, it also includes viewpoints of different authors on the basis of
different research objectives that directly contributes in enhancing the chances of
accomplishing positive and accurate outcomes at the end of the investigation.
Chapter 2: Literature Review Main Body
Role and responsibilities of sales department within an organization
According to Nagle and Müller, (2017), The sales department encourages the company
growth as well as the loyalty of customers. A high-quality salesman creates a stable, long-
term relationship with your customers. The value of close relationships in business can-not be
overlooked. Personal relations make customers feel respected and allow them to stay loyal to
your company. Plus, a satisfied customer is going to recommend the brand to others that
contributes in increasing the image at market place. The sales team has other goals, aside
from only making sales. Since, sales department is always the bridge between customers as

well as the product or service provided by the company. As, there are some effective roles
and responsibilities of sales division that help in improving brand image and sales of the
company:
 Managing customers relations: In business organization, sales department is
significant because it responsible for developing as well as creating positive and
healthy relation with their customers. For this firm can communicate with their
customers and also tries to understand their needs and wants towards its offerings.
This will directly interact in keeping customers loyal towards the company and at the
same time also sustain them for longer period of time. This is the reason that sales
department is responsible for analysing customers’ needs and wants and after that
provide them services accordingly. By this firm can established its positive brand
image at competitive market place.
 Setting up targets and goals: Developing specific targets is one of the important roles
of sales department in which sales team analyse the market trends and changes that
occurs at market place. This can be beneficial in improving the possibilities of
attaining competitive success at market place. In this regard, the primary focus of
sales team is to satisfy customers demand by providing them best quality products
according to customers demand. It may assist in improving their customers base and
also generate larger profitability level.
These responsibilities of sales department that assist company in fulfilling all the goals
and objectives of the firm at market. Thus, it is crucial for sales manager to effectively
execute their roles that directly assist in enhancing positive brand image and also influence
customers to consume company products. It may assist in developing strong consumers base
and attain competitive image as compare to its competitors.
Importance of sales department in generating revenue
According to Ingram and et. Al., (2015), The sales department could be seen as the
key component of a company. This is because the sales team helps fill the gap between an
organization, a label, a product or a service and its users or buyers. It helps a business to pay
its various expenses and keep on rising. As it expands, it will attract more potential, start new
markets, and produce even more revenue through the sales team. Sales is a key element of
any productive company. Sales staff are always compensated on the basis of results, and the
salesman is driven by rewards. Better production means more sales for the entire business.

Focusing on sales is an absolute necessity in a revenue-dependent business model. Enhanced
sales and profits are linked but several targets, and each needs its own strategy. While the
strategies every be different for each of them, they will complement each other. Knowledge
why sales and revenue are linked and how to maximize both allows companies to compete
effectively and boost your corporate income. Revenues come from a wide variety of outlets,
and most business executives have different methods for each marketing platform. In context
of this, there are some major importance of sales department that help in generating larger
profitability at market place:
Reduce Customer Turnover: Effective customer support turns potentially dissatisfied clients
into satisfied customers. But the retention of customers is more critical than the retention of
revenue. Business owners need to think through customer experience about the sales process.
When the selling process is positive, the experience of the consumer is usually positive. The
selling cycle starts with ads and how goods and services are put on the market.
Sales and Product Development: Salesmen communicate directly with buyers and understand
the requests and specific problems connected with their position and product or service.
Feedback on the customer's preferences is of interest to product design teams. Hearing to the
user and changing things based on the common suggestions will raise revenue while
developing relationship and brand equity. In certain situations, a small input change can
substantially raise selling levels.
Structured Growth: Revenues were used to organize market development and size. While the
sales team hits the quarterly targets, company can add additional member of the team and
increase the targets appropriately. Getting a clear understanding of the revenue capacity of a
single team leader and the amount of support personnel, account administration and product
creation needed to meet the demands of new sales creates a managed system. The power to
make strategic decisions when controlling growth successfully from an operational
perspective is a major benefit for any organization.
Thus, sales department show a significant role in organization as it helps in determining how
company can increase their profitability and revenue. In this, firm also develop products and
also invite more and more customers by promoting its products and services in market. It
directly contributes in increasing profitability level and market share as well. By this, firm
can easily establish their competitive brand image in-front of their competitors.

Main duty of sales department in improvement of profitability level of Waitrose
According to McMurrian and Matulich, (2016), Every company has its sales
department that work with the purpose of converting sales and customer acquisition into
profits. This result in growing businesses and retaining its existing customers for a longer
period of time. Thus, it can be said that sales department incorporate certain business
activities which not only supports business strategies but also help organisation in running
their business effectively. Moreover, to understand how sales department improve the
profitability level of Waitrose is explained below for better understanding.
Strive for incremental growth: When a department work for increasing business’
profits they just think about the ultimate goal and just overlook small steps which are
required for achieving objectives. Therefore, instead of directly look at the ultimate goal
department should have end goals including a set of small goals which are easier to achieve
and track as well. This will assist in having continuous progress and eventually result in
better business performance. For example: Waitrose’s sales department, instead of achieving
yearly goal they can set monthly or quarterly targets. As a result, by achieving this employee
will remain motivated and an increase in their sales will be seen.
Advertise for sales: Customers can know about a specific product when they are told
about the items and this can be done using advertisements based on online and offline,
through sending messages, etc., moreover, sales department of Waitrose can develop a strong
content for attracting customers and fascinates them with products and services. Therefore,
this will increase a demand for products and will substantially increase the sales and
profitability.
Inside the stores: Every person who is walking through a retail store is there for
buying goods and spending money. Thus, it is important that company keeps their items in
such a position that they are visible to people. Customers do not have to roam around and
waste their time in searching items they need to buy. Moreover, to end up the chaos company
can use signboards. Other than this, in some instances one of the reasons for decrease in sales
is long wait times in checkout and because of this most of the customers leave the stores
without purchasing anything. Thus, to deal with this problem Waitrose can use “Just walk
out” options where automatic billing will be done through a scanning process.
Corporate Social Responsibility: According to today’s scenario, “a business can
only do good if they are doing things for a good cause” because studies have shown that

consumers are attracted towards hops or stores which have any kind of linkage with good
cause or have any association with providing benefits to people. Thus, Waitrose along with
its sales department, can engage themselves in CSR activities such as donating some part of
their stores items for the purpose of charity, can tend to fascinate more and more consumers
and directly or indirectly it will increase their sales result in maximising profits.
Therefore, considering all these factors sales department of Waitrose will be able to
maximize its profit level in a limited period of time. Moreover, with the change in course of
time they can adopt changes according to the market scenario.
Chapter 3: Literature Review Conclusion
From the above discussed literature, it has been evaluated that every business
organization focus on increasing their profitability. In this regards, sales department play a
crucial part in managing or creating famous performance of company at market. The primary
objective of the sales Unit is to earn a profit. They must also, however, do so efficiently and
as cheaply as possible. It's not enough to collect credit card information and process the
request. The sales department is always concerned with the improvement of its conversion
rate. The conversion rate is the number of customers who have completed the transaction. In
addition of this, sale team is also focus on generating profitability by increasing sales. This is
possible by influencing customers towards their offerings so that they easily consume
products and services. By this, firm can generate revenue and enhance their positive
performance at market place. In this sales team is also provide support in developing
competitive brand image by offering best quality of products and services. It directly
contributes in capturing larger marker share from its rivals.

REFERENCES
Books and Journals
McMurrian, R.C. and Matulich, E., 2016. Building customer value and profitability with
business ethics. Journal of Business & Economics Research (JBER). 14(3). pp.83-90.
Ingram, T.N. and et. Al., 2015. Sales management: Analysis and decision making. Routledge.
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing
more profitably. Routledge.
Downey, S.N. and et. Al., 2015. The role of diversity practices and inclusion in promoting
trust and employee engagement. Journal of Applied Social Psychology. 45(1). pp.35-44.
Rahimi, R. and Gunlu, E., 2016. Implementing Customer Relationship Management (CRM)
in hotel industry from organizational culture perspective. International Journal of
Contemporary Hospitality Management.
Frank, D.H. and Obloj, T., 2014. Firm‐specific human capital, organizational incentives, and
agency costs: Evidence from retail banking. Strategic Management Journal. 35(9). pp.1279-
1301.