Analysis of Sales Management and Distribution Strategies

The provided text is a compilation of references from books, journals, and online sources related to sales management and distribution strategies. It covers various topics such as emotional competence in sales people, managing uncertainty, and effective waste management plans. The summary highlights the importance of distributors in saving costs and investing in other business activities, as well as techniques for generating automobile sales leads and managing big data effectively.

SALES MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK1.............................................................................................................................................4
P1. The key principles of sales management in relation to the importance of sales planning,
methods of selling and sales reporting........................................................................................4
M1. How principles of sales management will be different in response to consumer and
business buying behaviour. ........................................................................................................6
TASK2.............................................................................................................................................7
P2. Benefits of sales structures and how they are organised. ....................................................7
P3. Importance and advantages of the concept of “selling through” others...............................9
M2. Critically evaluate the implementation of different types of sales structures. ..................11
D1. Comprehensive understanding of sales management, structure and selling techniques
within an organisational context...............................................................................................11
CONCLUSION..............................................................................................................................11
REFRENCE...................................................................................................................................11

INTRODUCTION
Sales management is the process of developing a sales force, coordinating operation and
implementing technique of sales which enables the business to systematically hit and excel the
sales target. This is the coordination of people and resources to effectively produce the desirable
goals. It is an essential business function due to the sale of products and services which results in
profits driving most commercial business (Ambavale, 2015). Organisation undertaken in this
report is Marriott which is a hospitality industry and was founded in 1927. This deals in
providing accommodation facilities to its customer in form of hotels and resorts. This report will
explain the important principles of sales management in relation to the importance of sales
planning, methods of selling and sales reporting. This will also evaluate the relative merits of
organising and recognising sales structures and importance of selling through others.
TASK1
P1. The key principles of sales management in relation to the importance of sales planning,
methods of selling and sales reporting.
Sales management is concerned with the direction of sales force personnel. It has become
important in the present world. Recent sales management includes various activities or functions
of marketing like advertising, sales promotion, research, physical distribution, pricing and
product merchandising (Dingus, 2014). For Marriott, to be successful in generating revenue, it is
very important the the company adopts effective sales strategies.
Key aspects of sales management
Effective sales management requires various aspects to meet the business and sales
objective of the Marriott effectively and efficiently and they are discussed below :
Planning : To accomplish the sales objectives of the business, every company is required
to prepare an effective plan which will be done by sales personnel. The plan must be relatable to
extensive market research and the facts will be such that they can be verified at every level. It is
evaluated after analysing the effective research in market for a particular type of product and
services (Dobrik and et. al., 2017). The effective planning must ensure flexibility in sales
operations by furnishing specialist product line and enable variations in productions. Apart from
this, it is very crucial for the sales person to communicate details of the plan with different
departments, managers, subordinates, etc. who will be part of this plan.

Coordinating : This process helps in maximum utilisation of human effort by exercising
effective leadership, guidance, motivation, etc. It does not have any special technique which
renders coordination among the workforce. Rather sales person or manager will encourage direct
personal contact in the organisation and in addition to this, the company must assure free flow of
information which is selective to the objective of business (Fang, 2014). The sales force of the
Marriott will also focus on eliminating personal problems by exchanging the ideas and
discussions with the people working in company. Thus, assures effective coordination in the
sales team.
Principles of sales management
There are various principles of sales management in Marriott and they are discussed
below :
 Managers make a difference : The entire effectiveness of sales and customer service
organisation is directly linked with the effectiveness of planning done by front line
supervisors and managers (Hoff, 2018). In this managers are required to prepare efficient
plans which will be useful in providing training to the people such that they will be
motivated and work with full zeal and confidence for the attainment of business
objectives.
 Managers lift the entire organisation : If the sales team aims to provide training to the
individuals then this will not only consume lot of time but will result in effective sales
management. The sales manager of the Marriott will make plans for providing training to
the entire organisation rather than an individual.
 Be goal oriented : Sales manager of Marriott will establish goals and objective and will
insist to accomplish them. For this purpose, the sales manager will apply proper plan so
that goals can be established. Effective planning will be useful in recognising people
about the goals and targets which are primary purpose of business.
 Establish a sales management model : Sales person will plan for establishing a sales
management model which will be useful in identifying the parts of sales conversion
funnel and important performance indicators (Ivanovic and Mirkovic, 2019). This model
is based on key performance indicators which will preset conversion targets and helps the
sales personnel in accomplishing the sales goal.
Methods of selling

There are various methods of selling which are important for the business operations as
this will enhance and maximise the sales for company (Miculescu, 2017). Therefore, Marriott
can adopt various options for selling its products and services to the customers and they are
discussed below :
 Direct sales : It is the sale of goods and services which involves direct contact with the
person. In this the goods are directly sold by the business person to the end customers.
For instance, Marriott do this when customer visit their organisation for taking dinner or
lunch in the restaurant in which services are directly rendered to the customers without
indulging the various stages.
 Indirect sales : It is the sale of company's products and services which sells the products
to the other businesses or distributors, retailers, etc. and not directly to the customers.
This is a kind of business to business sales (Milovic and Dingus, 2014). For instance,
Marriott uses various online agencies which provides customer the aid of booking hotel
or buying discount deals with the relevant agencies. In this, these agencies earned money
in form of commission for selling organisation's products and services as the company
tie up with such agencies.
Sales reporting
A sales report is tool or framework which shows complete directions are occurring in a
companies sales volume over a period of time which relates to the increase or decrease in sales.
This report is analysed by sales managers to devise the best alternative option available for the
company like to identify new opportunities and areas where sales volume can be maximised
(Mursalini, Husni and Hamidi, 2017). This report is generally prepared by the Marriott either for
a year or quarter and contains details like time period, news and updates, sales summary, sales by
format and category,etc.
M1. How principles of sales management will be different in response to consumer and business
buying behaviour.
There are various principles of sales management but they will be different in relation to
the customer and business buying behaviour. Customer is price conscious in purchasing products
so that sales management of the Marriott will aim to offer affordable prices to the different
segments of the customers like discount deals, pre book offers on online, etc. While business

aims to earn profits from sales which can be done by making various efforts for increasing sales.
It directly deals with other businesses for buying their products and makes profits.
Source : Sales Management. 2019
TASK2
P2. Benefits of sales structures and how they are organised.
The structure of sales department is different from the overall structure of the company.
This structure can be small and simple or large and complex which comprises of various
departmental heads based on territories, regions, etc. Therefore, sales structure is the design of
the sales workforce in the company (Nieder, 2016). This structure has a significant bearing on
the success of accomplishing goals and business objectives. The Marriott follows four types of
sales structures which are discussed below :
 Geographic sales structure : This structure is also called territorial sales structure and it
means that the organisation assigns sales person to sell the product in different
geographic regions. For instance, the sales approach used in sub urban area is different
from the approach used in the cities. It allows flexibility to the sales person in knowing
about their market and generate their approaches by identifying the market.
 Product sales force structure : In this sales structure, the sales force area of
responsibility is determined by the products and product groups irrespective of the
geographical boundaries (ROCKSHAN, 2017). In this the sales person becomes expert
Illustration 1: Sales Management. 2019

in specialised knowledge about a particular product which makes them stronger in
maximising the sales. For instance, various technology equipped products required in the
Marriott.
 Market based structure : This is also known as customer based product structure. It
helps in identifying and analysing the market needs and demands and produces the
products and services for meeting the demand of the customers. It is useful as it deals
directly with the customers needs and wants (Schaude, 2015). For instance, Marriott after
analysing the different customer needs, developed its food menu such that it offers
various categories in food so that customer can choose according to their taste and
preferences.
 Functional structure : In this structure, the roles and responsibilities are divided
between the different person who are involved in selling process. It includes, inside sales,
account managers, product specialist, etc.
Sales structures Benefits
Geographic sales structure  It is the most economic structure which
reduces the expenses of travelling and
administrative cost. It also helps in
increasing the direct contact with the
customers.
 It provides more knowledge of
economic, cultural and competitive
conditions in a territory.
 Market and CRM data are often
accessible geographically which helps
in evaluation of the performances of
sales force and sales person.
Product sales force structure  It develops sales force products
knowledge which is crucial when the
firm has broad and complex products
lines (Toppari, 2014).

 It helps to differentiate and position
competing lines which are often easier
to coordinate and align sales metrics.
 This is useful in adapting different
technical or decision making criteria for
different products in the line.
Market based structure  This helps the sales force in developing
customer specific knowledge and
account management capabilities.
 It is useful in developing knowledge of
total purchasing patterns in an account
and accommodate different buying
process within customer organisation.
Functional structure  This accelerates sales force ability to
share learning across customers in a
specified industry or segment.
 It stimulates application development
which render more efficient selling
activities.
The efficient and effective sales structure involves various other elements which are
essential for the organisation and they are discussed below :
 Recruitment : It is the process of influencing other to apply for the vacant job in the
organisation and selecting an appropriate candidate for the organisation (Umachandran,
2016). In this, sales manager will need to mention all the relevant requirements like
effective communication skills, convincing skills, politeness, etc.
 Training and development : The sales manager will also provide training and guidance
to the sales force team so that they will learn new and innovative methods of increasing
sales. They will also be trained about the latest technologies which the businesses uses to
measure and maximise the sales.

 Supervising : This will create a regular check on the sales team to know that they are
doing the work as per the plans. They will also be encouraged and motivated to work
towards the attainment of the sales objective of the company.
 Leading and monitoring : The sales manager will ensure effective leadership in the
functioning of the businesses. For this they may opt for various different styles of
leaderships (Whitehouse, Araujo and Giansiracusa, 2018). Through monitoring, they
will be able to check that there is no deviation in the process and if it exist then the sales
manager will take necessary steps and measure while ensuring efficient workforce.
P3. Importance and advantages of the concept of “selling through” others.
Sell through is a concept in sales management which refers to the percentage of a product
which is sold by a retailer after being dispatched by its suppliers. This is basically expressed in
terms of percentage. This concept makes comparison between the amount of inventory a retailer
receives from the manufacturer or suppliers against what is actually sold to the customer. This
rate is calculated by the following formula :
Sale through = Sale / Stock on hand *100
Importance of selling through
This is an important retail sale metric because it enables the sales manager to monitor the
efficiency of supply chain. It is crucial for tracking the product sales, striking a good inventory
balance and earn revenue for the company because it represents an opportunity for the business
(SELL-THROUGH, 2019).
Advantages of selling through
 Quick : When the organisation is making an exclusive products and want to move it
towards the market rapidly than mediators or distributors are the quickest way to market
the products and services. They are aware about all the locations and know the cheapest
way the reach the product in the market.
 Wider customer base : Every produced product by the company is meant for the
customer. So distributor have built variety of markets and are aware of how to tap them.
The information beard by them are highly valuable and they do all the heavy lifting work.
 Understanding the market : Distributors have an enormous understanding of the
business market. They know the best about whom to reach for selling the products and

how to convince the customers to purchase the companies products. For instance, if the
company has niche product than it will not go smoothly in every market and thus the
market or sales person will need to work on where to sell the product so that maximum
sales can be generated. In such cases, distributors are the best because they helps in
minimising lot of time and money of sales person also.
 Sales and marketing : Distributors or intermediaries are very helpful in selling the
product. They help in knowing what marketing and promotional tools will work best for
promoting the products so that sales can be maximised.
 Motivated : One of the biggest advantage to sell products through distributors is that they
sell the products as if its their own products and put all their efforts for generating sales.
This due to the fact that it is the only source for them to generate income and profits by
reselling their stocks. Therefore, the profits factor is always driving them and when they
are able to sell off the first batch then it also gives an denotation that the product is selling
well and more is needed in stock to make profits.
 Logistics : Distributors have various vehicles and direct links with relevant transportation
companies so that good and products can be transportable in any part easily. If the
company is not well established and does not have thorough knowledge and
understanding of distribution then they must hire distributors because they are experts
and well aware of what to do with the organisations products.
 Storage : It is a part of logistics and goods and products are required to be stored if they
are produced in heavy quantity. This can be an expensive process and if the company has
shortage of space then the distributors help them in keeping the products at their centres.
These products are stored in small houses of distributors and assures flexibility in the
transporting operations from centre to centre.
 Financial savings : All the above discussed points provides the ease of saving money.
And when money is saved then this provides the aid of generating revenues. The saved
money can be invested in other activities of the business like research and development,
advertising, packaging, etc.
M2. Critically evaluate the implementation of different types of sales structures.
There are various types of sales structures which Marriott uses in its operations more
maximising the sales. They are geographic based which is also known as territorial sales

structures. Product sales force structure is concerned with the product or group of products which
are specially designed for a particular purpose. The market based sales structure is concerned
with identifying and analysing market demand and produce product accordingly.
D1. Comprehensive understanding of sales management, structure and selling techniques within
an organisational context.
Sales management is a business organization field which is centred on the functional
utilization of sales proficiency and the management of a firm's sales operations. It is an essential
business purpose as net sales through the sale of products and services and resultant profit drive
most commercial business. There are various structure of sales management like geographic,
market based, functional and product based. The various techniques which Marriott can use for
sales can be B to C which is concerned with selling business products directly to the customers
and B to B which means that the organisation sells its products through intermediaries. For
instance, Marriott will link up with the various travel agencies and companies which offers
discount deals to the customers. These companies will be treated as intermediaries for selling
organisations products.
CONCLUSION
From the above report it has been concluded that sales management is very useful for
every business organisation. No business can easily and smoothly sell its products and offering
without effective and adequate sales operations. There are various structure of sales like
geographic, product based, market based and functional which provides an ease of
accomplishing the business objectives and sales effectively and efficiently. The selling through
others concept has been explained which has explained the importance and advantages of
distributors who helps in saving lot of money which can easily be invested in other business
activities.

REFRENCE
Books and journals
Ambavale, R., 2015. A research on emotional competence of sales people in organized retail in
Ahmedabad city. International Journal of Advanced Research in Management and
Social Sciences.4(5). pp.178-184.
Dingus, R., 2014. Recognizing Uncertainty and Managing Appropriately: How Should Sales
Managers Do It? (Doctoral dissertation, Kent State University).
Dobrik and et. al., 2017. Techniques for generating automobile sales leads. U.S. Patent
Application 15/274,308.
Fang, Y., 2014. Lift Brand Value of Publishing Industry through Design Mangement.
Hoff, R., SAP SE, 2018. Management of sales opportunities. U.S. Patent Application
10/032,174.
Ivanovic, M. and Mirkovic, S., 2019. Support to IS/IT in Auxiliary Machinery Exploitation
Mangement at the Open-Pit Coal Mine. International Journal of Science and
Engineering Invention.5(01). pp.16-to.
Miculescu, M.N., 2017. ACCOUNTING AND FISCAL ASPECTS REGARDING SALES OF
FINISHED PRODUCTS IN SMALL ENTERPRISES (MICRO ENTERPRISES).
Quaestus.(11). p.199.
Milovic, A. and Dingus, R., 2014. Everyone loves a winner… Or do they? Introducing envy into
a sales contest to increase salesperson motivation. American Journal of Mangement.
Mursalini, W.I., Husni, T. and Hamidi, M., 2017. Analysis of Funding, Working Capital
Turnover, Liquidity and Sales Growth to Profitability. Advanced Science Letters.23(9).
pp.8341-8346.
Nieder, N., 2016. Effective Big Data Mangement: a development of critical sucess factors and an
analysis of firms' capabilities in the automotive industry (Doctoral dissertation).
ROCKSHAN, Y., 2017. “BizFlexer” SALES AGENTS MANAGEMENT SYSTEM FOR NEW
FAZIRAS ELECTRONICS AND FURNITURE(Doctoral dissertation).
Schaude, J., 2015. Technical Conception and Implementation of an IT-System supporting the
flexible Distribution of Documents within a large scale Sales Organization (Doctoral
dissertation, University of Ulm).
Toppari, S., 2014. Integrating Use of Customer Information Throughout Multiple Sales Channels
to Create Customer Competence.
Umachandran, K., 2016. Health Care Lean Mangement: A Report. Splint International Journal
of Professionals. 3(11). p.73.
Whitehouse, J.K., Araujo, M.J. and Giansiracusa, S., 2018. An Effective Waste Mangement Plan
for Abby's House.
Online
SELL-THROUGH. 2019. [Online] Available Through:
<https://smallbusiness.chron.com/sellthrough-vs-sellin-34397.html>.