1SALES MANAGEMENT Table of Contents Introduction................................................................................................................................2 Discussion:.................................................................................................................................2 About the company-...............................................................................................................2 Product and service offerings-...............................................................................................3 Sales trends-...........................................................................................................................4 Industry trends-......................................................................................................................5 Key principles and techniques with analysis.........................................................................5 Importance of developing sales strategies:............................................................................9 Conclusion................................................................................................................................10
2SALES MANAGEMENT Introduction The discipline concentrated on applicability of tools and techniques of sales and sales operation of firms is known as sales management. Commercial business is driven by the outcome of sale of services and products and revenue of organization. Selling product and services of a business to another business reflects the act of B2B selling (Gounaris 2016). The differences of B2B to B2C selling are the extensive sales cycle, developed price point, multiple touch points (Johnston and Marshall 2016). The process of B2B sales involves numerous decision makers due to the complexity in price points (Ingramet al. 2015). The practice of B2B selling aims to target rationality of buyers. The purpose of the paper is to demonstrate the key principles and techniques of selling associated with the process of buildingcustomerrelationship.Thepaperwillhighlightthekeysalesprinciplesin accordancewiththeorganizationBoeingUnitedKingdom.Thepaperwillpresent significance of the developing strategies of sales, which can lead to profitability. The paper will be concluded by presenting a summary discussing the importance of sales management and sales function in relation to Boeing United Kingdom. Discussion: About the company- BoeingUKisconsideredasoneofthesignificantsubsidiariesofAmerican Multinational Aerospace Corporation, the Boeing Company and is known for operating in United Kingdom and Ireland. The president of the Boeing International is Michael Arthur. The company ahs employed more than 2500 employees. The company operates in more than 65 plus location of United Kingdom and Ireland such as Yeovil, Manchester, Bristol, Frimley, Gosport, Farnborough and Salisbury. The headquarters of Boeing UK is located at Westminster, London, United Kingdom(Boeing.co.uk 2019). The company is involved in
3SALES MANAGEMENT various educational projects regarding aerospace and working with charities like Air League, Royal Air Force and Royal Aeronautical Society. The company have resulted in74,000 plus jobs in the year 2017 in United Kingdom, which is almost 33 percent more than the last five years. 29,000 staff members were employed due to its operational activities of Boeing UK. The company shared 1.8 billion pounds in regards with the tier 1 supplier of United Kingdom. Around 400 Boeing aeroplanes operate in United Kingdom with the application of 12 carriers. The company spent around 16.5 million pounds in promoting the aspects of promotion by doubling investment in the Research and Development sector of United Kingdom since the year 2015. Boeing UK possess subsidiaries which has operations in United Kingdom proposing services from helicopter training to planning software. Avaiall UK offers aftersales services of supply chain management for defence industries and aerospace sector. Jeppesen UK is the provider of tool related to operational plan, flight planning software and products, navigation information. Aviation Training International Limited(ATIL)offersgroundcrewandaircrewmembers,maintenancetrainingand development program to United Kingdom Army Air Corps Apache. Tapestry Solutions offers services for government, commercial customer and defence with the associated information management software on a global scale. AcerData is as provider of the integrated software solutions for engine record scanning and fleet planning, leases management. Continental Datagraphics offers technical publications, software solutions and lifecycle services. Product and service offerings- The product and service offerings of Boeing UK include three categories, Commercial Airplane, Boeing Defence UK and Boeing Global services. The commercial airplanes comprises of Next-Generation 737, 767, 787, 737 MAX, 777, Boeing Business Jets, 747-8, 777X, Boeing Commercial Aviation Services and Boeing Flight Services. The Boeing Defence UK include CH-47 Chinook, AH-64 Apache, C-17 and P-8A Poseidon. The Boeing
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4SALES MANAGEMENT Global Services includes, Boeing Commercial Aviation Services and Boeing Flight Services (Boeing.co.uk 2019). Sales trends- •The company Boeing achieved 101.1 billion dollars revenue from the recorded deliveries of commercial airplane with higher defence and high service volume. •The companyreflectedstrong operatingperformancewith10.7 milliondollars operating earnings with 16.01 dollars earnings per share. •The company reflected a positive growth in cash flow related to operating income amounted up to 15.3 billion dollars. •Boeing maintained marketable securities and cash of around 8.6 billion dollars, resulting in strong liquidity state of the organization. •The non-US clients accounted for 56 percent of revenues in 2018.
5SALES MANAGEMENT Industry trends- The aerospace industry of United Kingdom reflected a turnover of around 31 billion pounds in the year 2016. The industry is known for employing 95,000 people. The companies operating in aerospace sector of UK reflect a global presence, like Airbus (Europe) and Boeing (United States). In spite of the 0.02 percent business contribution in United Kingdom, the industry positively contributed 0.5 percent of the economic structure of UK in the year 2016(Boeing.co.uk 2019). The industry has grown considerably in the last five years, as the contribution of the industry economically was around 40 percent higher than the year 2014. One of the major aerospace companies is Boeing. The company has both national and internationalpresence.HeadquarterofBoeingGlobalislocatedatChicagobutalso contributes positively to the UK economy by its subsidiaries Boeing UK. Key principles and techniques with analysis Being one of the best in the market, the company uses a mixture of segmentation strategies like geographic and demographic in order to serve the customers belonging to different nations. The company offers its products and services based on the customer groups and it positions itself by offering a lot in terms of information technology features that are way advanced in nature. Boeing is based on extensive and intensive innovative research in relations to the manufacturing of aircrafts. The company wants to innovate its products in terms of fuel efficiency and other innovations by taking under condition the on-going crisis in the oil sectors as well as the federal taxes that are increasing. As per the sales trends it has been analysed that the company has achieved 101.1 billion dollars of revenue by delivering commercial airplanes using higher service as well as defence volume. The EPS is also strong
6SALES MANAGEMENT and operating income position is also good. This states that the company uses effective sales principles and sales techniques. Successful selling has been achieved by following the principles of selling. There are different types of customers in the market and there can be different numbers of processes based on which an organisation can achieve its success. The basic principles are that selling is related to long term relationships with customers, the sale is not about the product or services that the company is offering but about the problem of the customers, price of the product and service is directly related to the value being provided, the sale is not complete unless closed and to listen actively which results in better understanding of the needs and preferences of the customers and thereafter winning the attention of the customers (Liu, Leach and Chugh 2015). The company is continuously focussing on the fuel prices and technologically advanced techniques to make the customer experience much better and it has always tried to provide the value for price. It can be thus said that these principles are actually being followed by the company (Loveland 2015). Sales techniques however refer to the approach or method of selling products by the sales professionals in order to generate revenues for the organisation. The sales techniques can vary for several processes, customers and the sales personnel as well. One particular sale can be done by many different techniques but one need to understand the importance of using the best technique that will better solve the problems. The various kinds of sales techniques are as follows: a.Science Based Selling Techniques– This kind of sales techniques usually considers neuroscience, social psychology as well as behavioural economics. This is a very new sales concept, which is based upon a set of scientific methods that helps the sales person to boost up their performance (Powers 2016). It uses several research works
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7SALES MANAGEMENT that tries to read and understand the buying patterns of the customers and what is going on within the minds of the customers (Groza and Groza 2018). It makes a deep and thorough analysis of the human minds and behaviours and sees that how these thoughts can be affected and how these stimuli can be changed or influenced. If one can actually understand the result properly and customise the product in a manner that suits the needs, then the sales will be boosted and the profitability will increase. This thing has been totally followed in case of Boeing. The company is continuously involved in the technological innovations and has been trying to boost up the performance (Sharma and Syam 2018). The rigorous research and development and concentrating on the fact about rising oil prices and federal taxes clearly shows that the company is worried about its customers. Other companies that have implemented this process are the Amazon. It has innovated in such a manner that they have been launching superior products in the market. The company keeps on tracking the demands and preference of its customers and keep on innovating the products on such basis and hence they are the leading market in e- retails. It provides with superior benefits and choices of payments for their products as per the customer requirements (Lussier and Hall 2018). b.Contacting the leads by five minutes– Most of the companies are now following the web analytics process that captures the customer types and needs and preferences. If one particular customer can be believed to have shown interest in the same product or the service for a number of times or is trying to find out details on a particular product or service, then assistance to be given on an urgent basis to that particular customer. It helps the person in understanding properly about the product or the services as well as it helps in keeping the potential customer (Pham 2018). Statistics show that most of the buyers usually make purchase at the time when they make the queries. This
8SALES MANAGEMENT process is being followed by the company as the company usually tries to keep in proper touch with the commercial users as these brings them most of the profit. This method is being used by most of the companies now a day like the fintech companies, online e-retail or e-marketing companies and other aviation companies as well. In certain cases while booking tickets for flights and searching for a proper sit for a long time, it may so happen that a call comes up in relation to the booking and the process is being guided over the phone or mails. This helps in proper and quick closing of sales. c.Using Social Media-Recent statistics show that almost 79% of the sales person who have used social media has outperformed those who have not used these platforms. Social medial is an effective sales tool. Most of the people in the competitive world are always trying to get information about one another at ease. Today’s world has increased the transparency of everything because of the increasing usage of Internet and social media (Agnihotriet al. 2016). Using of these social media platforms can help the sales person reach a huge number of targeted customers at minimum or no cost on a real time basis. d.Using the 1-2-3 Close- In case of writing the email to the prospective business clients and convince the clients it is very much important to build trust and create a value. This strategy is very simple in persuading the prospective client whereby the company offering the services or the product must be listing three important points in the mails. It can be done by identifying three points about the recipients requirements, three important benefits of the products and the services being offered to the recipients and mentioning top three customers (Paesbruggheet al.2017). This helps in easily convincing the client as we are also mentioning the top three companies where we provide services. This would increase the faith and loyalty towards the products and
9SALES MANAGEMENT the services being offered and will also create a good image of the company. Boeing being a professional business uses this kind of sales techniques for attracting big businesses. These strategies are also used by big MNCs like Google, Microsoft, Apple, IBM and so on. e.Using the Similarity Close- this technique is about telling stories to the customers, which is very common. But it must be kept in mind how to tell these stories to the top business around the globe that would make them believe the story. This technique involvesidentifyingtheprospectivebusinessindustryandtheresponsibilities, thinking of some other similar businesses that have been faced in the past. Searching one pain point that the previous business had and the current business is having and thereafter telling the story in a manner that would present both the problems and the solutions. This technique usually drives persuasion (Kaski, Niemi and Pullins 2018). The company can actually make use of such technique while approaching other companies that are usually hard to convince. Importance of developing sales strategies: The reason why every business organisation requires sales strategy is because it helps in addressing the needs and preferences of the customer at every stage. It helps in improving the return on investment of the company by increasing the overall sales volume. It creates a vision and develops a way of achieving the prospective clients and closing the sales. These strategies can be prepared by implementing a proper sales management system. It is a system that aids the functioning of all the activities that are being performed in order to transfer the goods from the producers to the ultimate consumers (Zimmerman and Blythe 2017). A proper sales strategy can boost up the operating income and can reduce the operating expenses. If a sales team is unaware and unprepared about a particular sales pitch then it will create bad impression of the company in the market and hence a strategy is always mandatory in order
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10SALES MANAGEMENT to maintain goodwill in the market. A proper sales strategy must include planning of the process of sales, hiring of the right people, properly designing the sales strategy, forecasting the results of sale and reporting the same and analysis of the sales effort. The process also involves account management. Any prospective client goes through the process of account management in order to make the relationship between the company and the client stronger and trustworthy. The account managers usually work with client groups that are dedicated and needs to maintain the accounts and help in growing business with these clients by upsells, maintaining quality works, advising clients for long term strategies and alternatively fulfilling their needs and preferences. As an aviation company, Boeing needs to undergo account management as they manufacture and supply their products to other businesses on a long- term basis. Creation of long-term quality strategies can actually increase the business with the clients and make the clients buy more products from them. Conclusion It can be therefore concluded from the above paragraphs that sales and sales strategies are an integral part of every organisation. It is because of the sales that the company generates its revenue and hence creation of proper sales strategies is very much important. A proper sales strategy will guide the company through a well-maintained process for making the products available to the customers at ease.A proper sales technique can only persuade the prospective clients to get attention on our products. Without proper sales strategies it is impossible to gain attraction of the customers towards the products or the services. Knowing thecustomers,knowingabouttheproductsandtheservicesandthereafterproperly implementing the sales techniques must be implemented in every step for successful closing of the sales. This will in the long run help in increasing the revenue and goodwill of the company.
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