Sales Management

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SALES MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................................4
TASK 1.......................................................................................................................................................4
Sales management...................................................................................................................................4
Principles of sales management...............................................................................................................5
Example of B2B and B2C.......................................................................................................................5
TASK 2.......................................................................................................................................................6
PRINCIPLES AND TECHNIQUES...........................................................................................................6
Key principles and techniques of successful selling................................................................................7
Critically analysis of principles and techniques in building and managing customer relationships.........8
Selling through others concept and its benefits & significance................................................................9
SALES STRUCTURES............................................................................................................................10
Critical evaluation of different sales structure in the company..............................................................10
Sales strategies for maximizing profitability within sales structure.......................................................11
Recommend how an effective sales structure can improve financial viability and help strategic
advantage over competitors...................................................................................................................12
CONCLUSION.........................................................................................................................................13
REFERENCES..........................................................................................................................................14

INTRODUCTION
Sales management is a business discipline which is centered on management of a
company’s sales operations and focused on app of sales techniques. It considered as an essential
business function as net sales through sales of services and goods and resulting profit drive most
commercial ventures. The product taken is the Green Disc which is the smart tool for taking care
of the bike chain in an eco-friendly and convenient way. The product is developed by Drivt Bike,
Germany. The product is small, reliable and easy to handle. The freely rotating lubricator wheel
is applicator and lubricant reservoir all in one. It applies the right amount of lubricant on the bike
chain that is required. As per the changing scenarios and consumers expectation the company is
using prescriptive sales approach. The current study justified definition of sales management
contextualized to product range, and key principles of sales management. It also explains sales
strategies increasing profitability as essential component of corporate account management
within a defined sales structure. Implementation of various sales structures, techniques and
principles of successful selling relevant to firm will clarified in this report.
TASK 1
The sales management is referred to as the process through which the company makes
and develops the strategies in order to increase the sales of the company. The management of
sales is very important because if the sales will not be managed in proper manner then the
company will earn good amount of profit (Johnston and Marshall, 2016). Thus, for this the
current task will discuss about the sales management for the product of Green Disc developed by
Drivt Bike, Germany. The current report will also highlight the different principles of sales
management with main focus on planning, selling and reporting.
Sales management
The sales management is referred to as the activity through which the company manages
all the employees and their working in the direction of increasing the sales of the company. This
is necessary as if the employees will not work effectively then the sales will not be increased and
this may result in high losses. This can also be stated as the administration of the personal selling
of the product and services of the company. This includes many different steps like planning,

organizing, implementation of different strategies of selling the product in large quantity and also
includes monitoring and controlling of the all the activities involved in the management of sales.
The major role of sales management is to increase the profit for the company. This is
majorly because of the fact that the ultimate goal of the business is earning profit only and if the
sales will not be there then the company will not be able to earn or increase the profit for the
company. The major reason behind this is that the company only earns profit by selling the
goods and services in which they deal.
Principles of sales management
The principles are referred to as the things which need to be followed by the Drivt bike in
order to increase the sales of Green disc are as follow-
The first major principle is to plan for the consumers in more effective manner because of
the consumer will not like the goods of the company then the sales of company will not increase
(Cummins, Peltier and Dixon, 2016). Hence, it is very essential for Drivt bike to first plan that
how many consumers are there and what are their needs and requirements. This is because if the
goods and services will not be in accordance with their requirement then the sales of the
company will also not be good. Thus, it is very necessary for the company to first plan the
requirements of the consumer and then make the goods and services available to the consumers
(Chapman and Wahlers, 2019).
Another major principle of sales management is that the sales person must be goal
oriented that is the person must only be focused over the selling of the goods and services. This
attitude of sales person will be liked by the consumers as the company and their employees are
more focussed towards the working and selling of the goods and services. Thus, this will attract
more of the consumers towards Drivt bike and the sale of Green Disc will increase.
Another major principle for managing sales by Drivt bike is reporting of all the
information to the consumers. This is necessary because of the fact that if the sales person will
not list out all the details and information of the product and services to the consumer and hides
any of the information then this will not be liked by the consumers. Thus, this might decrease the
sales of the company and may result in heavy losses for the company.
Example of B2B and B2C
The B2B that is business to business selling is a system of selling under which one
business sells the goods and services to another company. Here no ultimate consumer is involved

and this can be like an intermediary sell the goods and services to the retailer or the manufacturer
sell the products to the wholesalers. In this case not much principles and techniques of selling are
applied. This is because of the fact that the companies know each other and the company know
that without the goods and services of another company the company cannot function. Hence,
here the Drivt bike has not to put many efforts in the selling of the goods and services. For
instance is Drivt bike need to sell its vehicles to some retailer of automobile then they will not
have to use different principles like how many consumer are there and will not have to plan for
the number of consumers.
On the other hand, B2C is a system where in the business sells the goods and services to
the ultimate consumers. This is a system wherein the Drivt bike sells its product and services
directly to the ultimate consumers for the end consumption. Under this method there is no
involvement of intermediary and wholesalers and there are no charges or money paid to them
(Matsuo, 2018). Thus, this reduces the cost of the company and this increases the sales of the
company as well. The sale is increased because of the reason that when the intermediaries or
wholesalers are not involved then the company can directly attract and interact with more of the
consumers. Hence, for this the company need to involve the use of lot many different techniques
and strategies of sales management (Bolander and Richards, 2018). These strategies are like
identifying the consumers, using good marketing mix, giving proper knowledge and training to
the employees so that they can convey proper knowledge to the consumers relating to the
product and services.
Hence, in the end it can be said that sales management is very essential for the success of
the company. This is because of the fact that if sales will not be handled in effective and efficient
manner then this will increase the sales of company.
TASK 2
PRINCIPLES AND TECHNIQUES
Sales management refers to the process of maximizing the sales of the product. It is the
coordination and control of the resources in an organization for effective the achieving the
desired goals and objectives. The important elements of sales management are stated below.

Sales planning
Sales planning is an important part of sales management which mainly the concerns
withsetting the required salesgoals (Luenendonk, 2017). It includes sale strategizing, setting
target sales units, quotas, demand and supply management and demand management.
Staff recruitment
It is a three-step process which includes job analysis. It is conducted to determine what
tasks employees will be undertaking daily. A complete job description is formed which provides
complete details about the work to be carried out about a particular post based on which job
qualification is determined.
Sales reporting
In this, the key performance indicators are used by the company to determine the
effectiveness of the workforce. These indicators help in identifying the deviations which helps in
making necessary adjustments in order to improve the productivity. The sales report is passed on
to the top managementto examine the overall performance of the sales team.
Key principles and techniques of successful selling
The key principle and techniques of sales management for successful selling are stated
below.
Effective and active
The most important part is reaching out to the distributors for making a good sale.
Distributors can efficiently spot the potential areas and the threats that can affect the business
and providing relevant solutions for effectively managing or handling it in a better way which
helps in making good business.
Extensive range of customers
Distributors have the skills to attract or target the wide variety of customers (James,
2020). For the new business starting a business in new area will mean that knowing the customer

population is bit difficult and, in such situations, distributors plays the major role as they are
aware of the needs of the consumers.
Knowledge of the market
Distributors are very well aware of the market which enables them to easily connect and
market the product to the customers. Distributors can align with the customers based on their
interest and other potential buyers. Such information’s are inevitable for the developing
businesses.
Inspired
The deliverers use to sell the stored products by themselves and as and when the stored
products are resold it leads to increase in earnings and the sales would end in the shorter span of
time.
Strategy
Manytimes, distributors themselves uses big trucks for transporting the goods as all the
manufacturers may not be ale to provide transportation of the products.
Storehouse
The storing of the goods should be done in a strategic manner (Johnston and Marshall,
2016). As the goods are manufactured it is very essential to preserve it in the warehouse until it
is sold off.
Direction via wholesale
Businesses will be very much benefitted from the creative distributors who has the ability
to highlight the product in the market. Convenience store suppliers can play the huge role in
setting up the business.
Critically analysis of principles and techniques in building and managing customer relationships
Drivt Bike can be considered as the ideal company to study the successful selling
principles. The principles and techniques used by it is targeting their regular customers. The
purpose of using this principle is to create awareness amongst its existing customer base which

will help in further promoting its products through word of mouth. The company has
successfully positioned its product in the mind of its target customers. This product Green Disc
with the objective of bringing something good and meaningful. The product is provided directly
from makers to the consumers with no intermediaries or long supply chain. Thus, this principle
has effectively helped it in selling its product.
Selling through others concept and its benefits & significance
For distributor or manufacturer, a sell in occurs when retailer agrees to purchase
products. The term is based on concept that supplier is delivering items in retailers outlets. A sell
through other occurs when a consumer buys goods from retailer (Desianna, Nugroho and
Ellianawati, 2019). In simple term, it is the percentage of items that is sold or sells by a retailer
after being shipped and delivered them, this term utilized in particular kinds of sales channels.
According to this concept, a retailer purchase and stocks goods from a distributor or producer
and then sell within target market in order to gain profit. Retailer reserves right to return unsold
groups to supplier for a credit or refund. Selling through wholesalers, retailers and other
distributors bring many benefits for organization as it helps to increase their sales and profit
margin rather than before. It consider as one of the most cost effective technique of reaching end
consumers than selling to them directly. It is simple and easy concept, undertaken by many
companies to gain profitability and increase their productivity level rather than competitors
operating business activities in same sector. When people make a payment at sell through others,
the retailer keeps whole payments.
Importance of using selling through other as sales technique-
It is one of the most essential technique can be used by company for specific product, in
order to increase revenue more than competitors in same industry. Selling through other is really
very important for organization that permits them to monitor efficiency of its supply chain. It
allows management to deal with potential and new consumers in effective manner. With the help
of using this sales technique, retailers or suppliers increase profitability and productivity level
rather than past few years. Selling through other such as retailer and supplier extends
geographical reach of business. In competitive environment, it is significance for using selling
through other because it helps to directly connect target market and allow administration to build
strong relation with suppliers as well as consumers.

Advantages of utilizing selling through other-
By using this sales technique organization gain many benefits, as it help to increase
consumer base, profit margin and sales rather than before. The advantage of this method is that it
make easier for firm to deal with one large consumers more than a number of smaller
independent clients, it aid to increase in sales with permission to a wide consumers base. By
utilizing selling through other technique firm increase their brand image and awareness of
products or services with possible nationwide coverage. Along with above advantages, it will be
easier to access financial assistance as company will be more willing to lend to business when
they have a supplier contract with a well known supermarket. Some retailers or supermarkets run
business betterment schemes that will aid companies that supply to them improve efficiency of
their procedures and grow their operations. This concept will help and boost marketing budget
by running business with retailer.
SALES STRUCTURES
The sales organizational structure refers to the designing of the sale steam of the
organization. The business can use different sales model such as geographic, product model etc.
The effective sales structure has a great bearing on the success of the organization. For example,
a sales representative is selling a particular product in a given region may flounder if asked to
follow one industry nationwide. Also, it is not possible to ask representatives sell all their
products by territories. The sales structure is required to be changed as per the requirement.
Critical evaluation of different sales structure in the company
The different types of sale structure are given below that can be used by the Drivt Bike is
given below.
Geological structure
This form of sale structure is also known as territorial sales structure, in which the sale
steam is organised based on the geography or territory. In this, the salesperson of Drivt
Bikecompany will tend to form familiarity with the specific geological location and this will help
in building a good rapport with the local businesses and helps in tracking the target accounts
(Stanescu, 2018). This structure incurs low cost and proper territory management will lead to low

duplication of efforts. But this structure has its cons as well. The Drivt Bike company might be
required train its sales representative team with respect to the allocated geography.
Product structure
This form of structure is best suited for the organization that provides different types of
product and services.This form helps the sales representative in becoming expert in the specific
product which enables them to communicate its value and usage to the individual clients more
effectively. On the other hand, Drivt Bike requires to incur higher costs because of duplication
of efforts within the locations and clients accounts. When more sales representatives are working
in the single location more constant communication is required.
Market based structure
Organizing the sales team based on the customer size is the most popular structure. In
this, the representative is required to understand the needs of the customers and building and
maintaining the strong relationship with them. In order to successful, the structure requires
effective and proper communication with the team members to ensure that all the clients receive
same quality of service. This structure also has the disadvantage of incurring higher cost and
geographic duplication if implemented by Drivt Bike.
Functional structure
In this form of structure, the responsibility is divided according to the position of the
employee in the sales process. It includes inside sales, account managers, experts etc.This
method helps in more effective selling activities. But this structure requires greater degree of
coordination and may also cause duplication of customers. So, these are pros and cons that Drivt
Bikemay face when implementing this sales structure.
Sales strategies for maximizing profitability within sales structure
There are mainly two types of approaches, which are, hard sell and soft sell (El-Kassas
and et.al., 2017). Hard selling tends to be pushier and does not lead to maintaining a long-term
relationship with the customers. On the other hand, soft selling is about building relationships
and selling the products through that relationship. The different types of sales approaches are
stated below.

The friend- The salesperson that uses this approach is very warm and friendly and shows
interest in their prospects. They try to connect with the customers on an emotional level. This
sale approach can be effective only when used in the right way. It will be more successful when
the salesperson is very friendly and warm hearted. This approach will lead to increase in
profitability of the company.
The expert- In this sales approach, the salesperson prefers to be more logical rather
emotional which helps them in becoming expert in anything and everything? In simple, words
this strategy uses more rational and less emotion, that means salesperson will become an expert
in their profession and utilize this expertise to show target market or consumers what they could
do or must do. With the help of this approach corporate account management gain credibility and
build strong relation as well as trust with clients.
Consultative selling- it is another sales approach or strategy that prioritizes connections
and open dialogue to determine and cater solutions to consumers needs (Inks, Avila and Talbert,
2019). It is hyper focused on client, more than the product being sold. According to this strategy,
consultative sales people centre on offering a solution to an issue. It include listening, asking
questions, and focusing on long term consumers relationship. They asked certain questions in
order to comprehend needs and requirements of people, to understand more about what they do
and what problems they recently have. It is one of the most essential elements of corporate
account management within a defined sales structure, which they can use to increase sales as
well as profitability rather than ast few years.
Recommend how an effective sales structure can improve financial viability and help strategic
advantage over competitors
Sales structure plays important role in helping strategic benefits over competitors and
improving financial viability, as it directly affect revenue generation and profitability (Sinha and
Verma, 2018). Organizations sometimes go for restructuring of sales force as a long time
investment. Sales structure is a proactive action used and help to boost sales rather than before.
Sales manager does examine performance of sales force and make as suggestions to higher
administration. Frequency of doing sales restructuring is a strategic and best decision as it
depends on different factors. Effective sales structure allow sales team to work better and
complete their task in effective manner that drive management towards increasing profitability as

well as productivity. It will also help to assign right applicants at right place with right
accountabilities. Top sales executives within effective sales structure can be determined easily
and can give them more roles and responsibilities.
Communication and coordination can be made better by having good sales structure or
doing restructuring activity. With effective sales structure Dirvt Bike Company can gain
competitive advantages as they are able to manage business practices related to sales in
systematic manner which make firm stronger than its competitors. One of the advantages of
effective sales structure is that is help to improve sales management activities as result increase
profit margin and help to gain competitive benefits. Bad sales structure leads to failure in
achieving business aims and objectives (Gale and Yorulmazer, 2019). It is really very essential to
have a good and effective sales structure because it improves internal communication and
collaboration as well as handling consumer’s requirements. It makes coordination between top
management and lower level stronger than before and increased time for actual selling.
CONCLUSION
From above analysis it has been concluded that by following the key principles &
techniques of successful selling organization gain many benefits as it help to improve the
business practices and enhance profitability level rather than before. With the help of techniques
and principles company strengthen their brand image as it work towards building as well as
managing consumer relationships. By using successful selling methods firm server target market
better services and deliver products according to their needs.
Recommendation-
 To gain competitive benefits Drivt Bike must restructure their sales structure as it help to
improve communication procedure and make sales team able to cater services accordant
to needs of consumers.


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