Key Principles of Sales Management and Developing Sales Strategies

This document examines the key principles of sales management, including sales planning, methods of selling, and sale reporting. It also explains the importance of developing sales strategies that yield highest profitability and incorporating account management within sales structures. The case study focuses on Argos, a British catalog retailer.

SALES MANAGEMENT

Contents
INTRODUCTION.....................................................................................................................................3
LO 1............................................................................................................................................................3
P1 Examine the key principles of sales management in relation to the importance of sales planning,
methods of selling and sale reporting......................................................................................................3
LO 2............................................................................................................................................................8
(Covered in Leaflet)................................................................................................................................8
LO 3............................................................................................................................................................8
(Covered in PPT).....................................................................................................................................8
LO 4............................................................................................................................................................8
P5 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures.....................................................................8
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................12

INTRODUCTION
Sales Management can be defined as the process of coordinating and managing people
within an organization effectively in order to obtain desired goals (Ahmad and Saidalavi, 2018).
The goals could include increased volume of sales, constant growth and enhanced profitability.
A good sales manager organizes and allocates all the tasks among his team members to ensure
that each member has an equal opportunity. It helps in making effective decisions and managing
the salesforce of the company. Organization chosen for this report is Argos, which is a British
catalog retailer headquartered in the United Kingdom. Argos also has operations in Ireland and
United Kingdom. It sells products online as well as through offline retail stores. The company
was established in the year 1972 and is a subsidiary of Sainsbury’s. The report examines the key
principles of sales management and the importance of developing sales strategies that help in
yielding profitability.
LO 1
P1 Examine the key principles of sales management in relation to the importance of sales
planning, methods of selling and sale reporting
Sales Management can be defined as the process of planning, directing, controlling
different activities of personal selling, supervising, motivating of the sales force within a
company. Through this, a company can attain its goals, objectives and ensure that sales
representatives across different teams have a clarity about their responsibilities and thus, they
work towards attaining the sales target.
Principles of Sales Management
There are various principles of sales management that should be adopted in order to carry
out their operations effectively (Badrinarayanan, Ramachandran and Madhavaram, 2019). Some
of the main principles of sales management are explained below -
Motivating employees – Motivation is an important principle of sales management and
thus, the managers and team leaders of the respective company should encourage and motivate
the sales representatives to achieve sales targets.

Goal Oriented – Sales force within a company should always be goal oriented so that the
objectives can be achieved. The management of Argos should conduct various activities to keep
the sales representatives confident and focused towards their targets.
Manage people within the company individually – It is important to consider the needs
and expectation of employees within the company individually (Blal, Singal and Templin, 2018). By
doing so, a company can make effective decisions and also, attain organizational goals in an enhanced
manner.
Scope of sales management at Argos
Sales Management takes into account various activities including planning, assigning,
evaluating etc. The scope of this concept is explained below –
Sales Planning and Forecasting – All activities that are related to sales should be
planned well in advance by forecasting future sales (Sales Management, 2020).
Sales Budgeting – A sales budget should be prepared by the sales manager of Argos in
order to determine the cost of various activities that will be carried out in order to promote the
products and services.
Hiring Sales Force – In this, the management of Argos will have to recruit and select
qualified and experienced candidates for the different vacant positions within the company.
Key aspects of sales management at Argos
The sales manager in Argos is responsible for concentrating on three elements of sales
management which can help in enhancing overall sales of the company (Board and Skrzypacz,
2016). The key aspects of sales management at Argos are explained below –
Sales Operations – The primary focus of the sales manager within the company is on
building an efficient sales team. It should be taken into account that all the members of the team
are provided responsibilities based on their skills and interests.
Sales Analysis - Analysis is one of the most important components of sales management
and helps the members of the team to become aware of their position in terms of sales.
Different tasks of any sales person at Argos

The first and foremost task of any sales person at Argos is to sell products of the
company and thereby increase overall sales of the company. Selling includes meeting prospects,
pitching them about the products and services and encouraging them to buy the same. The
salesperson is also responsible for addressing the complaints of customers, if any and try to
settle them sincerely and as quickly as possible (Functions, Duties and Responsibilities of a
Salesman, 2020). Another important tasks of a sales person in Argos include attending sales
meetings, reporting as well as collection of bills of the goods that are sold by him.
Highlighting the different roles involved members of the sales department at Argos
The sales force within the sales department perform various tasks that help the company
in attaining goals and objectives. Some of the functions are described below –
 Processing and receiving shipment – The sales members within Argos perform the
function of processing as well as receiving shipment. They also fill in and update the
status in inventory systems.
 Stocking and arranging merchandise on the shelves – The members of the sales team
stock and arrange the merchandise on the shelves based on different parameters like
brands, popularity of products etc. They also keep a record of the stocks and place order
for the same when required.
Stages of the Consumer Buying Behavior Process
The consumer buying process comprises of various steps that a consumer makes while
making a purchase decision. The different steps of the process are explained below –
 Problem Recognition – In this stage, the marketers of a company create a problem for
the customers in order to give them a reason to purchase the products.
 Information Search – Once the problem is identified by the customers, they now begin
to search for information regarding solution of that particular problem.
 Evaluation of Alternatives – In this stage, the customers evaluate various alternatives
and compare the same in order to be sure about the choice of their decision.
 Purchase Decision – At this stage, the customers have evaluated various options or
alternatives, the pricing and decide upon if they should go on with their decision or not
(The Six Stages of the Consumer Buying Process and How to Market to Them, 2020).

 Purchase – In this stage, the customer has decided on making a purchase and this is the
reason why marketing at this time plays an important role.
 Post- Purchase Evaluation – In this stage, if a customer feels that the purchase decision
was wrong, he/she will not purchase the same again. On the other hand, if the customer is
satisfied with the purchase, he might go on with it again.
Examples and differences in B2C as opposed to B2B sales process
A B2C sales process can be defined as a kind of transaction wherein businesses sell
products and services to customers or the end user (Fornari, 2018). The primary focus within the
B2C process is on the products and services that are offered by the company. Examples of this
process include sales representatives selling goods to the customers in a retail store, cars in a
showroom etc. On the other hand, a B2B sales process can be defined as the selling of goods and
services of one business entity to another. The quantity of merchandise in this process is
relatively large as compared to the B2C process.
Exampled and benefits of technologies
There are various technologies available that can be adopted by companies in order to
promote their products in the market. Some technologies along with their benefits are explained
below –
Social Media –Companies can now easily promote, advertise and market their products
through various platforms like Facebook, Instagram and Twitter. For example- thy can post
regular updates about products, any new launches and offers in the company in order to keep the
customers engaged and updated. Social media is one of the most beneficial technologies today as
companies can increase their customer base.
Skype – This is mainly used by the management or managers of the company to interact
or conduct online meetings (Friend and et. al., 2016). For example- the managers of Argos
working in the UK use Skype in order to schedule meetings with employees who are employed
in Ireland and are a part of their team. Skype has proven out to be the most beneficial
technologies as managers can easily allocate tasks to employees working in different retail stores
as well as locations.

Argos App – Respective company has its own application wherein customers ca place
orders for products, make payments and provide feedbacks as well as reviews for the products
received by them. For example- Argos can also promote its products through its app through
notifications, discounts etc.
Two real examples of sales promotions or sales incentives on the Argos website
Argos carries out several sales’ promotion activities in order to market and promote its
products in the market (Kaski, Niemi and Pullins, 2018). This is done to attract large numbers of
customers and to enhance overall sales. Sales promotion activities have helped the company to
reach out to different untapped markets which would’ve otherwise not been possible. Tow real-
life examples of sales promotion on the Argos websites are as follows –
Illustration 1: Argos Sales Promotion
(Source: Six incredibly effective retail case studies from The Digitals, 2020)

Illustration 2 Argos Sales Promotion
Source: Amazon and Argos unveil Black Friday extravaganzas, 2020
Through above examples, it can be seen that Argos provides various offers to its
customer from time to time to keep its overall sales as well as profitability high (Kerzner, 2019).
It also helps in attracting new customers and retain existing ones.
LO 2
(Covered in Leaflet)
LO 3
(Covered in PPT)
LO 4
P5 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures
A sales strategy can be defined as an approach that can help an organization in addressing
the needs of its customers effectively. Assisting different customers require adopting different
strategies which is one of the reasons it is important (Mullins and Panagopoulos, 2019). An
effective strategy can help the company in enhancing its overall profitability. A sales strategy
should never be overlooked by the managers of a company if they want to build a business that is

not only sustainable but also successful and profitable. Sales strategies are different for new
customers, existing customers, new products, existing products etc. A well thought and
established sales strategy can help the company in gaining a competitive advantage in the market
over other companies. A sales strategy can help the company in setting a clear direction or path
for the company and lead to success (Understanding The Importance Of Having A Powerful
Sales Strategy For Your Startup, 2020). It will also help the sales force in knowing what should
they focus and set their priority on.
It is also important as it can help in understanding the clients and their needs in an
effective way. So, this is why a sales strategy is important in increasing the overall sales and
profitability of the company. Argos has adopted various sales strategies like Argos Card,
FastTrack, Giftcards and promotional codes etc. in order to enhance its overall sales. These
strategies when implemented will attract a greater number of customers who will be encouraged
to purchase the products. This will further contribute to the overall performance and sales of the
company. Increased sales lead to an increase in the overall profits and a large base of customers
who are loyal to the company and its products. A better understanding of the clients is also
important for the company to gain the trust of customers as well as satisfy their needs (Renz,
2016). Also, a sales strategy that is well planned will help the company to focus on the most
important aspects and thus lead the company to success. Use of promotional codes will also
attract potential customers who seek good quality cheap products in the market.
Account Management can be defined as a role that primarily focuses on building and
nurturing client relationships within a company. It is a strategic method that allows an account
manager to develop strategies in order to find opportunities to continue their business with the
help of accounts. Account management involves various activities such as overseeing the sales
process, managing relationships with the clients etc. Core finance principles can help the
company in increasing overall profitability as well as gain a competitive edge in the market.
Some of the core principles of finance include Time Value of Money, Investment Principle,
Capital Budgeting, Dividend Principle, Cost of Capital etc. These principles can help the
management of the company to manage its finances in an effective way. If the company will
manage its finances properly, it will be able to gain a competitive edge against competitors and

as a result, attract large number of customers. Competitive advantage can also be gained through
differentiation of products and enhancing overall sales strategies.
Capital Budgeting, for instance is one of the core finance principles that significantly
contribute to the overall profitability of a company. It helps the management of a company in
planning the different investment projects within the company for the future (Spreer and
Rauschnabel, 2016). All possible considerations are taken into account so that the company can
make evaluations about the profitability of a particular project. In simple words, capital
budgeting helps the management of a company in deciding if a particular project is worth
pursuing or not. Cost of Capital is another finance principle that is important and contribute
towards its overall profitability as well as helps in gaining a competitive edge over others. Thus,
the strategic method of account management should be incorporated within sales structures to
ensure an enhancement in sales. A sales structure is defined as the design of sales teams in a
company and different companies use a combination of various types of sales structure in their
systems. It helps in selecting the right sales people within wo a clarity of their responsibilities
and expectations of the management.
Therefore, it can be said that a sales strategy plays an important role in an organization
and also significantly contribute towards its success and profitability. It serves as one of the most
essential components for a company to sell its products effectively in the market and thus gain
profits (Thaichon. and et. al., 2018). Portfolio management also plays an important role in
ensuring the profitability and success of the company. A sales strategy should be developed
taking into consideration various aspects that can impact the performance of the company
otherwise. Also, in order to ensure that the business makes profits, the sales manager should take
part and monitor all the activities that take place in the department.
CONCLUSION
From the above report, it can be concluded that sales management is an effective and
important method that can be used in order to enhance overall profitability of the company. Also,
a sales person within an organization plays various roles like meeting prospects, talking to them
about the products etc. The consumer buying process consists of six stages that customers go
through while making a purchase decision. On the other hand, account and portfolio

management are important strategic methods that should be incorporated within sales structure to
enhance overall profitability and gaining of competitive advantage of the copay in the market.

REFERENCES
Books & Journals
Ahmad, S. and Saidalavi, K., 2018. Sales Leadership Styles and Sales Performance. Journal of
Marketing Vistas. 8(1). pp.90-101.
Badrinarayanan, V., Ramachandran, I. and Madhavaram, S., 2019. Resource orchestration and
dynamic managerial capabilities: focusing on sales managers as effective resource
orchestrators. Journal of Personal Selling & Sales Management. 39(1). pp.23-41.
Blal, I., Singal, M. and Templin, J., 2018. Airbnb’s effect on hotel sales growth. International
Journal of Hospitality Management. 73. pp.85-92.
Board, S. and Skrzypacz, A., 2016. Revenue management with forward-looking buyers. Journal
of Political Economy. 124(4). pp.1046-1087.
Fornari, D., 2018. Trade marketing & sales management. EGEA spa.
Friend, S. B. and et. al., 2016. Positive psychology in sales: Integrating psychological capital.
Journal of Marketing Theory and Practice. 24(3). pp.306-327.
Kaski, T., Niemi, J. and Pullins, E., 2018. Rapport building in authentic B2B sales interaction.
Industrial Marketing Management. 69. pp.235-252.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. John Wiley & Sons.
Mullins, R. R. and Panagopoulos, N. G., 2019. Understanding the theory and practice of team
selling: An introduction to the special section and recommendations on advancing sales
team research. Industrial Marketing Management. 77. pp.1-3.
Renz, D. O., 2016. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Spreer, P. and Rauschnabel, P. A., 2016. Selling with technology: understanding the resistance to
mobile sales assistant use in retailing. Journal of Personal Selling & Sales Management.
36(3). pp.240-263.
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.
Online
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