Sales Management: Principles, Structure, and Techniques

This document discusses the key principles of sales management, including sales planning, methods of selling, and sales reporting. It also explores the benefits of sales structure and the concept of selling through others. The execution of various sales structure types is analyzed using Ford Motor Company as an example.

SALES MANAGEMENT

INTRODUCTION
P1. Key principles of sales management in relation to importance of sales planning, methods
of selling and sale reporting
M1 Analyze how the principles of sale management will be different in response to customers
and business buying behavior
P2 Benefits of Sales structure and their organization
M2 Critically analyse execution of various sale structure types using organisational example.
D1 Coherent and justified assessment of understanding of sales management, selling
techniques and structure within organisational context.
P3 Importance and advantages of concept of “selling through others”
REFRENCES
INTRODUCTION
Sales are those types of transactions which takes place within two parties in exchange of
goods and services to each other. Also there is existence of buying and selling in terms of any
kind of consideration or money. Sales management is the process which leads towards
effectiveness in force and formative coordination. Such process is executed between operations
related to sales by using of techniques that leads towards effectiveness in achieving of those
targets and goals that has been setup by management professionals within an organization.
Targets of these types include, formative management of sales is related to operational activities
that consist pricing, product merchandising, advertising, promotion, distribution and marketing.
This assignment is related to Ford Motor Company that is a multinational auto maker that is
established in 1903 by Henry Ford. Entity is engaged in process of giving SUVs, auto motive
parts, luxury Vehicles, Commercial Vehicles and Pickup trucks. In this assignment a discussion
has been made over key principals of sales management that is in association with reporting,
planning and other methods of selling. Further in this file advantages of sales structure is
explained with importance and formative benefit of selling through others.
P1. Key principles of sales management in relation to importance of sales planning,
methods of selling and sale reporting
Sales management is one of the most important parts of an organization because it is
responsible for operation that is taking place. Also includes product and services that has been
given to its customers. All the other operations related to product and services is covered by
management only. Objective of sales management in n organization is to bring improvement in
sales and revenue that is going to increase profit. Ford is one of the biggest car selling

organization in the world that contains appropriate sales management in its operation performing
capability (Xiao, Ji. and Dong, 2016). It is helpful in managing of their sales and revenue. Duty
of revenue is to look up for those strategies which make sure that an organization gain high
profits that eventually increases sales and revenue. Training and development session is also very
helpful and is used by Ford for its employee’s skill and knowledge development for generating
of proper sales report. In these documents a list is there in which items sold by the company as
per location in which they are to be sold is explained. Some sales management principals are
there which are required to be followed by the manger of ford and are explained below:
Manager makes significant difference: Generated sales and revenue quantity helps in
identifying of skills, capabilities and potential of sales manager working in the company. As it
has been analyzed proper skills are necessary for sales manager which help in improving of its
performance of companies employees. It also helps Ford to reduce turnover of work force which
automatically uplifts quality of product and services provided by them. Loyalty of customers is
gained by Ford which helps in retaining in market for longer time period.
Lead by setting example: In order to perform sales managers of Ford it is much
important for them to have discipline and professional ethics at workplace. This is going to help
in giving guidance to employees. So, that they can give their best to an organization and their
contribution brings higher profit to the organization. Also revenue is increased. It all promotes
positive result in growth of an organization.
Golden Rule of Sales Management: man power is one of the most important part of
Ford because they are responsible for working at global level which helps in making sales of
product and services that has been offered by them. It is clear that its role in sales, revenue and
profit of Ford cannot be ignored as organization is being benefitted out of it. That is why it is
very much important to treat its employees and man power as valuable resources of them.
Manger has to working in Ford has to provide proper respect and facilities to its employees for
coordination and cooperation (Thaichon. and et. al., 2018).
Be goal-oriented: Sales manager in Ford is very much essential for setting up of goals
and objectives that has to be attaining by its team and employees. Also it is very important to
make small goals for small time to achieve those of long terms. All this helps in increasing sales
and revenue of Ford because of which profitability increases.
Relation of sales management with sales planning, methods of selling and sale reporting
For a business which use to make products and services for providing them to their
customers, sales management is key operation which they use to perform. This key operation is
associated and related to different other operations like sales planning, method of sales and it's
reporting. Therefore, the major factors which are used by manager of Ford for making and
shaping the strategies of sales are effective planning, controlling, organisation and monitoring of
the plans which will help them in increasing their sales and profits (Syam. and Sharma)(Sharma,

2016). Relationship between all these factors and sales management in Ford is explained
beneath:-
Effective Sales Force: It is important for an organisation to hire best effective and skilled
employees those who holds a calibre to generate attention of population towards organisation
product and services. Labour force acts a most important element within an organisation on
which sales targets is depend. Effective and qualifies employees those who holds in-depth
understanding of organisation products and services, consumer needs and market situation lead
towards high end outcomes for company. In relation to this, in the working structure of ford
formative and adequate amount of training is given to employees as to increase their
effectiveness towards complex situations. In addition to this, it also benefits an organisation to
increase sales team capacity in order to deliver best effective outcomes.
Development of an effective reporting system:
Reporting acts as an integral part in a sales management. Reporting in an effective way
ensure reliability and validity of employee’s performance in a sales team. In Ford, manager of
each department effectively devise appropriate reporting process that aid them to determine
individual performance along with this it also benefits organisation to make decisions in a
strategic way. With help of this, company can effectively able to insight their sales growth and
analyze other future growth aspects (Powers., 2016).
Acknowledgement of present and future situation through sales planning:
For conducting sales management activities is an effective way and is also essential for
its manger to evaluate conditions in futuristic manner. This is going to effect aid managers for
analyzing those preferences and actual needs of customer. Due to lack of internal and external
knowledge of a business environment affected sales management process for framing policies.
That is why it is essential to balance a link between sales planning, sales management and sales
forecast. In relation to this managers of Ford has effectively ensure that forecasting and process
of sales with planning has to be done by team for getting best effective results in order to
accomplish activities in timely manner.
Looking for creative ways of selling:
In order to take attention of customers in this modern competitive market an unique idea
plays an important role in sale. As with the help of creativity and unique selling methods of
sales. Is going to lead to acquire attention of customers at large in the market by providing
product and services to them. In context to this Sales manager of ford is effectively going to
encourage team members for taking advantage of various types of innovative measure that is aid
for increasing overall advantage with innovative measures. It increases overall profit and revenue
in an organization ((Plank. and et. al.. 2018).

M1 Analyze how the principles of sale management will be different in response to
customers and business buying behavior
Buying behavior of a customer act as a key catalyst for making strategies and procedure od\f
sales management. Given below are ceratin selling system in an organization that is mainly
classified in two modes:
(1) Business to business (B2B)
(2) Business to customer (B2C)
Consumer Buying behavior process
Behavior of consumer is an continuous and formative study of attitude, needs, choice,
wants and reaction of customer regarding particular goods or devices. Under this modern and
dynamic world all taste and preferences changes of customer at very fast rate. In recent trends of
market evaluation has been done that consumers nowadays is becoming more alert towards its
future. So, products quality and price matters a lot. Main focus of the company should be upon
performing of those activities which helps in making deal that is over product and services. Also
quality should be according to preferences of customer that is to be fulfilled by Ford. After an
effective evaluation of customers buying behavior, strategies and policies are required to be
diverse in effective manner that is going to help further in aiding an organization. All this is done
to assists efficient evaluation of buying behavior of customers. Suitable frame of strategies and
policies has to be prepared accordingly that is going to help an organization to satisfy needs and
demands of customer in best and effective manner that is stipulated for a period of time to ensure
high quality standards.
Business Buying behavior process
Business buying behavior has helped in shaping an formative behavior in which a
customer has behavioral model only. Such organizations is very effective to consider major
components of communication in order to engage with business buying behavior. This is going
to allow an efficiency in communication and specify features of goods or services to an client in
an organization. Ford is going to implement better and efficient system of communication at
workplace and is also going to form structure for performing of organizational operations at sales
level in implied manner (Pierce. and Irwin, 2016).
P2 Benefits of Sales structure and their organization
Sales structure is effective and benefit for department of sales in an organization which
helps to prevent any kind of miscommunication at workplace and give encouragement to its
employees. Organization has to take advantage of sales structure for conducting of sales process
which helps in achieving of goals and objectives of company in effective manner. It contains
handling of different types kinds of inbound sales, business development and cold calling.
Absence of structure of sales has adversely affected overall process of sales and production is

required of Ford. So that effectively can be balanced in high conversions rates and structure of
sales is utilized by Ford. Various kinds of structure is give below:
Geographic Structure:
Process of this kind is one of the most general form in which the sales has a force that
gives responsibilities to both management and sales as per geographical area. Geographical
structure is that kind which is known as sales of territorial structure and force. Under this all
employees are brought together from various locations. Ford is going to be benefitted in a way
that all division of work as individual organizations in which business is conducted has to
function according to requirement of company. Some benefits of this structure is explained
below:
 This is going to help Ford in being effective in forecasting of building a positive and
healthy form of relationship which is further benefitted by increasing sales for an
organization like Ford.
Product sales structure:
In this form of sales force is consistent under which a salesperson is at higher authority.
and expert in selling ideas of products and services. Such types of salesperson are only
acquainted, only when some product of entity is not aware about the product that is related to
product of a company. As Ford engage in the offering of wide range of products and services to
customers in different geographical location (Mullins. and Panagopoulos, 2019). For this,
company have adopted united structure of sales force which is created through, products,
customer, territory. Mentioned below there are some benefits of product sales structure:
 Salesperson emerged as an expert at selling particular range of product.
Market based structure:
This structure is also termed as a consumer sales force structure in which sales
representative are mainly grouped according to industry and consumer. In Ford roles and
responsibilities of their salespersons is to provide products and services to consumers as to gain
more profitability (Havaldar and Cavale, 2017). For example, Ford is a car manufacturer and
dealer for this it is essential for salesperson to have adequate amount of knowledge related to
cars. Mentioned below there is benefits given of this structure:

 Salesperson effectively know and provide adequate requirements of customers in best
effective way. It will help in building a strong and positive relationship in between them
which aid company to retain them for long time.
M2 Critically analyse execution of various sale structure types using organisational
example.
This is crucial in order to maintain sales in an business and to adopt an amendable
structure which is going to help in generating of revenue and profit according to the target set by
company. As different sale structure is there and each have it own character and advantages that
reflects an extend upto which an assistance can be given to Ford to be effectual. Also
geographical structure and benefits are satisfactory. They possess relevant territorial
management which results in little replication of efforts with respect to customers. Disadvantage
of this structure is sizing various territories that becomes tough challenge and can lead to
crinkled sales and opportunities (Moncrief, 2017).
D1 Coherent and justified assessment of understanding of sales management, selling
techniques and structure within organisational context.
Techniques , sales management and different structure of sales have to compromise their
worthiness and demerits that has been described already. That is why it is essential for sales
manager of Ford in order to formulate policies through consideration of those aspects and
undertaking those steps that has to be eliminated and drawbacks for improvising of benefits.
P3 Importance and advantages of concept of “selling through others”
Selling through others is a concept which consists a quantity of percentage in which
products and services are sold by any retailer. It is mainly evaluated for a specific time period
mainly just for a month. In relation with Ford, it is essential to effectively replenished company
inventories within a particular and appropriate period of time span to their customers on a regular
basis. Ford by taking advantage of different channels of distribution can effectively sell their
products and services. It mainly includes, manufacturer-retailer-customer, manufacturer-
wholesaler-retailer-customer, manufacturer-customer (Moncrief, 2017).
Importance of selling through others
Taps into existing consumer base:
This is one of the most important factor that is very important to carete a strong and
effective base of customer. Ford can be effectively and efficiently in relationship with its
customers. All this is done by conducting business and operations which involves various
retailers and wholesalers. So, with the help of this an effective an efficient strategy is formed

which can benefit its consumers. This is going to help in satisfying customer at its best which
increases brand image in simultaneous manner (Johnson, 2016).
Enhance level of market growth:
This is more effective process as more chanels of distribution is facilitated and Ford is
going improve growth of its product through marketplace. As it provides wide and large range of
cars and very large number of distributors that assist to enjoy recognition in market.
Advantages of selling through others
Provide transactional functions:
Intermediate can take advantages of its contract through which they offer services in
entire marketplace. This is effectively going to be benefitted through consumer and
manufacturers for accomplishing their organizational goals and objectives in appropriate manner.
In relation to Ford consumers I going to feel more easy to reach product and services in
central location. This is going to increase sales margin at high level.
Burden mutuality, time and cost saving:
Under this intermediaries, wholesalers and retailers are their that has equal share and
responsibility in order to effectively manufacture company through checking its stock
management, in order to set-up sales, account storage etc. such intermediates in Ford is going to
effectively share overall expenses which has been made during promotion and advertising of
product and services. Aid company for effectively performing its services and in well define
manner.
B2B:
Business to business process includes a formative series of steps, events, phases which
generally occurs when an business is selling product and services to other business and its unit.
Such functions is mainly found in auto mobile manufacturing like Ford (La Rocca. and et. al.,
2016).
CONCLUSION
From the above assignment it is clear that sales management acts as one of the most
important process within an organization that has helped to engage in efficient selling of
companies product and services. This is going to help in increasing sales and revenue of a
company. Further a formative discussion has to be made upon forecasting, reporting and
planning of sales that is linked together for ensuring an organization and completing effective

accomplishment of target. Then in the end evaluation has been done bya na organization and alls
such structure has own disadvantages, formative selling is covered

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