Sales Management: Principles, Structures, and Selling Through Others
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This document discusses the key principles of sales management, benefits of sales structures, and the importance of selling through others. It also covers sales planning methods and the advantages of selling through retailers.
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SALES MANAGEMENT
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 P1 key principles of sales management.................................................................................1 lP2 Benefits of sales structures and how they are organized using specific organizational examples.................................................................................................................................4 lP3 Importance and the advantages of the concept of ‘selling through' others......................5 lP4 key principles and techniques for successful selling.....................................................6 lP5 Importance of developing sales strategies......................................................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
·INTRODUCTION Salesmanagementistheprocessofdevelopingasalesforce,coordinatingsales operations, and implementing sales techniques that allow a business to consistently hit, and even surpass, its sales targets. 3 UK is a British telecommunications and internet service provider operating as a subsidiary of CK Hutchison Holdings.This report is based on the scenario of 3 UK company, working as a sales manager the director of the company has asked to make a report on the important area which is mention below1. This report highlights the principle of the sales management in the organization. After that the report goes on to explain the importance and advantage of the sales structure and the way through which sales structure can be applied in the organization. After that the report highlight the advantages of the concept of ‘selling through' others. After that the report goes on to explain the Principle and Technique of selling the product of the company in the market. In the end the report highlights the importance of selling strategy which help in improving the productivity and incorporating the accounts in sales structure. ·MAIN BODY ·P1 key principles of sales management There are in total 16 principle of sales management which looks at every aspect related to the sales in the organization whether sales planning, method of selling and sale reporting. !6 principle of sales management are as follow: Manage your people:Manager in the organization has to make sure that they used to give proper appreciation to all the employee in the group environment. Also, manager has to make sure that manager is criticizing employee at the time of the training and providing coaching on the basis one on one. Lead by example:It is the another principle in which the sales manager in the organization has to make sure that he guides all the sales person in the organization. It will help the Three UK in bring a sort of the respect in workplace2. This will also improve the decision- making related to sales. 13 UK overview. 2019[ONLINE]. Available through <http://www.three.co.uk/>. 2Ingram, T. N. And et.al.,2015.Sales management: Analysis and decision making. Routledge. 1
Instill discipline in organization: Three UK has to make sure that they bring the quality of the discipline in the organization it will generally help the organization in structuring all sort of the sales function in the organization. On the basis of the principle of discipline sales plan can be made in the organization. Follow rule of sales management: Three UK has to make sure that they are treating the consumer in a way they desire to be treated. Employee of Three UK has to make sure that they treat all the consumer with the respect they used to desire. Manage on objective information:Manager has to make sure that they used to take all the sales decision in the organization on the basis of the objective information rather then their opinion. As it may happen that the opinion of manager is not accepted by all the employee. Using objective information will also help the company in bringing a sort of the trust and respect in the organization. Be goal oriented:Three UK sales manager has to make sure that all the sales person in the organization used to perform their activity with keeping the goal in their mind. Sales manager of Three UK has to make sure that they establish goal and try to insist other salesperson to achieve the same. Organization has to make sure that all the sales strategy are developed on basis of this goal. This will eventually help the sales manager at the time of sales planning in the organization as it will pass on the Get on floor: Sales manger in Three UK has to make sure that they are on the floor and listening to the salesperson presentation and suggestion. This suggestion can be used by the company at the time of making sales plan3. Direct and on to the point:Sales manager or the sales department head at Three UK has to make sure that When giving your salespeople coaching or training, it’s essential to be straightforward. Catch them doing something right: It is very important for Three UK management to provide the feedback to all the salespeople in the organization as the biggest reason behind salesperson leaving the job is that they feel unsuccessful. Positive feedback is 10 time effective as compare to negative feedback. 3Malek, 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. 2
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Don't settle for status quo:Sales manager in UK three has to make sure that sales person always can improve from their past performance as almost all the employee used to work for maintaining the performance level in the organization. Know your people well enough to motivate them individually:Sales manager has to make sure that they are having idea about need and requirement of all the employee so that on the basis of same manager can motivate them. BE Firm but fair:Sales manager in Three UK has to make sure that they used to treat all the employee in the equal and fair way in the organization4. Give them Quality time:Sales person has to make sure that they used to delegate some duties to the salesperson in the organization. Business is business: Sales person has to make sure that the manager is avoiding the personnel relationship with the staff and just keeping professional relationship with them. Let them known the expectation:Salesperson in the organization should have the proper idea about the expectation of the company from them. So that on the basis of same they can perform activity in the organization. Make it fun:Make your store an enjoyable place to work. You want your people to get up in the morning wanting to come to work and reach their performance targets and goals5. Method sales planning There are many methods which are used in the process of the sales planning. Some of them are as follows: Sales forecasting: It is the process in which the organization used to estimate the future sales of the company. On the basis of the same company used to make different decision regarding manufacturing of product in the organization6. 4Cummins, S., Peltier, J. W. and Dixon, A., 2016. Omni-channel research framework in thecontextofpersonalsellingandsalesmanagement:Areviewandresearch extensions.Journal of Research in Interactive Marketing.10(1). pp.2-16. 5Principleofsalesmanagement.2015.[ONLINE].Available through<https://www.jckonline.com/magazine-article/principles-of-sales-management-part-1/> 6Jobber, D., Lancaster, G. and Le Meunier-FitzHugh, K., 2019.Selling and sales management. Pearson UK. 3
Demand management:it is the planning tool which is used to uncertain the demand of the company product in the market. On the basis of the demand of the product in the market, organization used to plan the different sales activity to fulfill the same. Sales reporting Different type of sales reporting method are as follows: Promotional sales report:This report used to measure the different type of the promotional efforts which are made in the organization7. Coupon sales report:This sales report used to include all type of sales which has been made with the help of the coupon. Common sales report:This sales report used to include all the sale which has been done without any discount or coupon. l壱P2 Benefits of sales structures and how they are organised using specific organisational examples Their are many Advantages which are brought by the sales Structure to the organization. Some of the Advantages are as follows: Clarity of the Responsibility: Sales structure help the organization in passing on the clear message to all the employee in the organization. As Sales structure help the organization in giving the different responsibility to the different employee in the organization about the different product lines and the market (Malek, Sarin and Jaworski, 2018). This help the organization in building good working environment as all the employee in the organization is having the proper idea about the activity which need to be performed in the organization. Good flow of communication and coordination:It is another advantage which is brought by the sales structure to the organization as sales structure used to define the position of all the salesperson in Three UK it help the organization in bringing the good flow of the communication and coordination in the organization as all the salesperson are having the idea about where they have to report at the time of the query or any issue. Increase efficiency:It is one of the biggest benefit which is brought by the sales structure to the organization as with the help of the proper sales structure it generally gets easier 7Malininas, S and et.al., 2017. Sales management in range of supply and storadge of UAB «ZEELANDIA».Journal of Management.31(2). pp.97-104. 4
for the organization to increase the efficiency in the organization. As it is easy for the organization in find out the element which is causing the problem in the sales process of the company. On the basis of the problem organization can take the corrective action in the organization8. Organization of Sales Structure There are four different way through which the sales structure of the organization can be organized in the organization. Different organization uses the different way to organize the sales structure in the organization. Geography based sales:It is the type of the sales structure in which salesperson are given the opportunity to understand the market in which organization is intending to sale the product. After knowing the market salesperson uses the different approach. For Example: Lakme, Vodafone uses the same sales strategy in the organization. Product based sales:It is the type of the sales structure in which salesperson in the organization used to develop good amount of the knowledge of the organizational product and on the basis of that different approaches are used by organization. For example: Siemens Healthiness, Cardinal Health are the company uses this sales structure. Client based Approach:This is the type of the sales structure which is designed on the basis of the client or can be said the consumer of the organization.9 l壱P3 Importance and the advantages of the concept of ‘selling through' others. Selling through otheris the procedure in which the maximum amount of the product of the company is sold with the help of the retailer after being shipped by its supplier. A sell through occur when the company sell the product to the retailer and the consumer used to buy the product from the retailer. Their are many benefit and the importance which is brought by selling through other concept. . Importance 8Nagle, T. T. and Müller, G., 2017.The strategy and tactics of pricing: A guide to growing more profitably. Routledge. 9Isselmann DiSantis, K. and et.al., 2017. Sensitizing black adult and youth consumers to targetedfoodmarketingtacticsintheirenvironments.Internationaljournalof environmental research and public health.14(11). p.1316. 5
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It is very important for all the organization in the competitive era to chose a concept of selling through other in the organization as it will help the company in being competitive in the Market as all the competitor takes the help of the retailer to sell the product of the company in the market. For Example: Lake me one of the most renowned company in the cosmetic sector used to sell the product of the company at their store but as the competitor of the company used to sell the product of the company with the help of the retailer also they have also started to sell the product of the company with the help of the retailer also in the market (Jobber,Lancaster and Le Meunier-FitzHugh, 2019).Another importance which is brought by the Selling through other concept is that it help the organization in improving the customer satisfaction as consumer generally used to get the relevant location to buy the product and also it helps the consumer in getting the place where they can have a query of the same. Another importance which are brought by Selling through other concept is thatit improves the relation of the company in the market as retailer are one of the important part of the the supply chain in real. Advantages Wide Customer Base:The biggest advantage of selling through other is that it increases the customer base for the organization as retailer has build up a variety of the market with the help of their connection and all of them are having the idea how to reach them all. Also as it is not possible for Three UK to open the stores every where to sell the product of the company retailer help them to reach the customer which they are intending to reach ultimately. Distribution Channel:This concept will help Three UK to improve the distribution channel of the organization as with the help of this concept organization is able to enter the market which at some point of time becoming a challenge for the organization to enter in the past10. As if you are using selling through other concept than Three UK can sell the product in that market also without even not having any sort of the physical presence in that market. Market Information:Using Selling through other not only help the company in selling the product to customer but also help company in getting the information of the market.As retailer in the market used to be in touch with the customer on the regular basis they are having the proper idea about the need and requirement of the customer in the market. On the basis of 10Chishti, Z., Afiniti Europe Technologies Ltd, 2017.Techniques for benchmarking pairing strategies in a contact center system. U.S. Patent 9,712,676. 6
the information which is provided by the retailer Three UK can develop the product accordingly to satisfy the need of the customer. Cost saving: This concept also help the company in saving the cost of the company as organization has to open less number of own store in the nation. l壱P4 key principles and techniques for successful selling Principle of selling Those who listen, win:This principle specify that for selling the product of the company salesperson has to make sure that they are listing all the query of the customer in the market as it is the myth about the selling that the person who listen the query of the customer and try to find out the solution of the same is the one who used to sell the product of the company in the market. This principle will also help three UK in building the bond between the customer as customer feel that their problem is heard by the organization. Selling is all about relationships:It is the second principle which specify that selling the product is all related to building a relationship with the customer in the market. As it is the myth that the customer will only purchase the product of the company if they trust company, respectcompanyandlikethecompanyandallofthisonlycanhappenbybuildinga relationship11. The sale is not about your product, but their problem:This principle explain that salesperson has to make sure that all the employee used to understand the problem which is faced by the customer and on the basis of that employee need to find out the best solution with the help of the company product. As it will give the message to consumer that the company is concern about them. Price and value go hand in hand:All the sales person has to make sure that the product which is offered by the comp-any is offered at a reasonable rate to the consumer in the market but also has to make sure that they does not comprise at the quality side of the product. As all the consumer look for the product who is good at quality side and also offer value. 11Thaichon, P and et.al., 2018. Hybrid sales structures in the age of e-commerce.Journal of Personal Selling & Sales Management.38(3). pp.277-302. 7
There is no sale unless you can close it:This principle specify that the salesperson has to keep in mind that their was no sales on the person unless he has approached the consumer (Isselmann DiSantis and et.al., 2017). Technique of selling Features and benefit: Every sales person has to make sure that they used to promote the benefit and feature of the product to the consumer in such a way that the consumer feel that the deal of the product is very good for the consumer. As every consumer always look for the product which is of profit. Needs and Solution:All the sales men at Three UK has to make sure that they promote the product of the organization to the consumer after going through the need of the customer and on the basis of explaining the product as the solution of the need. Social Selling:Three UK has to make sure that they use social media as one of the important technique to sell the product of the company in the market as it is the platform which used to see the large number of the customer in the market (Agnihotri and et.al., 2016). CRM: customer relationship management is the software which is used by all the organization to maintain good relationship with the customer of the organization by streamlining different process, so that sales and customer relation can be improved. 3 UK also uses this technique as one of the main technique in the sales process of the company. 3 UK uses operational CRM as a CRM to maintain the relationship with the customer in the organization. This CRM used to help 3 UK in touching sales automation, marketing automation and service automation. l壱P5 Importance of developing sales strategies Sales strategies is the approach to selling that allow an organization sales force to position the company and its product(s) to target customers in a meaningful, differentiated way. Most strategies involve a detailed plan of best practices and processes set out by management12. Sales strategies used to provide the variety of the benefit for the organization. Some benefit are as follow: 12Agnihotri, R and et.al., 2016. The Sales Center: A Structure Addressing Multiple Dynamics Facing Business Education.Journal of the Academy of Business Education, 17. 8
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Sales strategy help the organization in addressing the need of the customerat every stage of the operation. As there is huge difference in understanding the new customer and old customer as the need of both of them used to differ from each other. Sales strategy will help three UK in understanding both stage customer very effectively in the organization. As customer are the key factor for all the organization it will eventually help in increasing the profitability for the organization.Sales strategy will provide the organization with the different basics on the basis of which sales person in the organization can plan the different activity to understand the different need of the current as well as the previous customer of the organization. Human resource management:It is the another benefit which is brought by the sales strategy to the organization as sales strategy help the organization in managing the Human resource very effectively in the organization. As sales strategy used to define the goal and target which need to be achieved by the organization and the way through which it can be achieved in the organization. Sales strategy help the organization in having the knowledge about the way through which the sales target can be achieved by the organization.On the basis of the information which has been derived with the help of the sales strategy the organization try to find out the best available talent from the market. This eventually help the company in building good human resource in the organization. Also organization try to provide the training to the old employee to build the skills in them to carry out the operation of the business.(Braun, 2016). Efficiency of work:Sales strategies used to improve the level of the efficiency in Three UK as sales strategy used to show the path way through which the employee in the organization can achieve the objective of the organization.This eventually means that it generally takes the less amount of time for the employee to complete the task in the organization as all the employee in the organization clear about the different activity which has to be performed by them in achieving the goal of the business13. Account management: As sales strategy used to define the budget which is provided for the department to complete the task and on the basis of which all the function in the organization is helped the organization in managing the accounts very successfully in the organization.As 3 UK can take the information of the sales strategy as the basis to manage the different account in the organization. 13Cole, T., 2017.Selling the Holocaust: From Auschwitz to Schindler; how history is bought, packaged and sold. Routledge. 9
·CONCLUSION After going through the above report it has been summarized that there are 16 key principle of the sales management in total. After that the report summarized that sales structure and selling through other concept used to bring the variety of the benefit for the organization as it improves the efficiency and also increases the market area coverage of the organization. After that the report goes on to summarized that there are many selling principle and the technique which can be used by the organization to improve the level of the customer satisfactions and the organization performance. In the end the report summarized the different benefit of sales strategies for the organization. 10
·REFERENCES Books and Journal Ingram, T. N. And et.al., 2015.Sales management: Analysis and decision making. Routledge. 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. Cummins, S., Peltier, J. W. and Dixon, A., 2016. Omni-channel research framework in the context of personal selling and sales management: A review and research extensions. Journal of Research in Interactive Marketing.10(1). pp.2-16. Jobber, D., Lancaster, G. and Le Meunier-FitzHugh, K., 2019.Selling and sales management. Pearson UK. Malininas, S and et.al., 2017. Sales management in range of supply and storadge of UAB «ZEELANDIA».Journal of Management.31(2). pp.97-104. Nagle, T. T. and Müller, G., 2017.The strategy and tactics of pricing: A guide to growing more profitably. Routledge. Isselmann DiSantis, K. and et.al., 2017. Sensitizing black adult and youth consumers to targeted food marketing tactics in their environments.International journal of environmental research and public health.14(11). p.1316. Chishti, Z., Afiniti Europe Technologies Ltd, 2017.Techniques for benchmarking pairing strategies in a contact center system. U.S. Patent 9,712,676. Thaichon, P and et.al., 2018. Hybrid sales structures in the age of e-commerce.Journal of Personal Selling & Sales Management.38(3). pp.277-302. Agnihotri, R and et.al., 2016. The Sales Center: A Structure Addressing Multiple Dynamics Facing Business Education.Journal of the Academy of Business Education,17. Braun, V., 2016. Selling the “perfect” vulva. InCosmetic Surgery(pp. 149-166). Routledge. Cole, T., 2017.Selling the Holocaust: From Auschwitz to Schindler; how history is bought, packaged and sold. Routledge. Online Principleofsalesmanagement.2015.[ONLINE].Available through<https://www.jckonline.com/magazine-article/principles-of-sales-management-part-1/> ·3 UK overview. 2019[ONLINE]. Available through <http://www.three.co.uk/>. 11