Sales Management: Principles, Structures, and Techniques

This document discusses the key principles and techniques of sales management in the hospitality industry. It explores the importance of sales planning, selling methods, and reporting of sales. It also evaluates the benefits of sales structures and the use of different sales distribution channels. Additionally, it analyzes the role of sales-oriented staff in the hospitality industry and how they contribute to building and managing guest relationships. The document provides specific examples from the Dorchester Hotel in the UK.

Sales Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Exploration of key principles related to sales management in relation with importance of
sales planning, selling methods addition to reporting of sales...............................................1
TASK 2............................................................................................................................................2
P2. Evaluation of benefits of sales structures together with the manner they are organised in
Hospitality Company..............................................................................................................2
P3 Explain the importance of having sales orientated staff within the hospitality industry. .3
P4 Assess the use of different sales distribution channels for specific hospitality examples 5
TASK 3............................................................................................................................................6
P5 Analyse the key principles and techniques for successful selling and how they contribute
to building and managing guest relationships in application to specific hospitality
organisational examples.........................................................................................................6
TASK 4............................................................................................................................................7
P6 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures...................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Sales management can be defined as the overall coordinating among sales efforts in business
in order to ensure all the sales targets are achieved on time. It is considered as business discipline
that manages sales operations of company as well as majorly focuses on practical application of
methods, practices and mechanisms that are used for sales. It plays essential function in business
aspects as net sales of commodity or service generally draws revenues and profit margins of any
entity. To gain information about sales management, Dorchester Hotel is chosen which is among
top hotels in hospitality sector of UK. The hotel was opened on April 18, 1931 in the Mayfair
city of London, UK (Dorchester Hotel, 2020). It offers unprecedented approaches to consumers
during the stay. It has various spacious rooms addition to suits, with magnificent penthouse
which meets needs of its targeted consumers. The report discusses about principles related with
sales management, merits of sales structure, importance of having sales oriented staff and usage
of diverse sales distribution channels. Further, it analyses principles together with techniques for
selling in successful manner and importance to develop sales strategies as well as incorporating
account management with structures of sales.
TASK 1
P1. Exploration of key principles related to sales management in relation with importance of
sales planning, selling methods addition to reporting of sales.
Sales management is termed as business discipline that is concerned with practical
application of techniques, methods and approaches of sales together with managing firm’s sales
operations. It involves processes for developing sales force, devising sales strategies and so on
for the purpose of enhancing organisational performance. In case with Dorchester Hotel, it offers
wide types of services and products to its clients and audiences. For managing its sales, the
assistant sales managers of the hotel pays proper attention to meet demands of clients through
offering them effective services or products. There are diverse numbers of principles that are
followed by the sales assistant of Dorchester Hotel so to plan sales, methods and mechanisms of
reporting. Some of that are explored below:
Principle of making differences: It is the first sales management principle that is based
on the concept that managers make differences. As per the principle, effectiveness of whole sales
is keen related with effectiveness of managers addition to front line supervisors of company. it is
1

well said that managers invests their timings in planning sales practices, methods of selling its
services that leads in satisfying customers and making strong relations with them along with
increasing efficiency that helps in leveraging new accounts. In context to Dorchester Hotel, it is a
hospitality company wherein assistant managers makes entire plans and mechanisms to sell
addition to make report about perceptions of customers by adopting effective marketing
strategies (Magnotta and Johnson, 2020) (Drucker, 2019).
Principle of coaching human resources all time: According to the principle, providing
training for the purpose of coaching sales force all time leads towards improving productivity
and efficiency in effective manner. For example, assistant manager of Dorchester Hotel have
adequate knowledge as well as expertise to plan sales activities, methods and providing training
to sales forces for executing working successfully along with preparing reports for the results.
Principle of lifting entire organisation: The principle states that assistant professionals
plays main role in lifting overall company through devising plans for selling the products and
services to other businesses. For example, Dorchester Hotel offers wide services and experiences
to other businesses such as online websites and many more in order to sell its hospitality
packages to consumers living at distant places. It is duty of the managers of the hotel to plan
ways for promoting sales, methods to sell them and reporting structures for collected required
information.
TASK 2
P2. Evaluation of benefits of sales structures together with the manner they are organised in
Hospitality Company.
Sales structure is described as designing of sales department. In a company, sales structures
have huge bearings on success and failures. These are foundations of all operations which are
carrying forward in a company. In case, if foundation is poor or weak then overall sales
processes have to suffer. All business concerns have sales organisational structure which makes
concentration on proper communication, avoiding work duplication and motivates efficiency,
integrity and coordination between sales personnel. In context to Dorchester Hotel, the company
has made a particular department of sales with effective sales structure in which workings,
responsibilities, authorities and role are allotted to each people. Certain sales structure with
benefits and the ways they are organised in Dorchester Hotel are as evaluated:
2

Territory organisation structure: In this type, sales team is organised on the basis of
geographical locations that allows each salesperson in developing familiarities in particular
geographic area. In context to Dorchester Hotel, adoption of the sales structure will benefit them
in building bonding with local businesses, tracking target accounts along with collecting
information about regional competitors. Addition to this, the entire sales team will split in
different territories or regions for increasing sales demand (Saifee and Kumar, 2020).
Product or service line sales structure: The type of sale structure in which sales people
have expertise to sell particular product or service offered by the company. They have huge
knowledge and information related to the specific products or service so that they can convince
customers to make purchase decision for it. In case with Dorchester Hotel, when managers will
use this structure then they will be able to make its sales personnel expert in particular tourism
package or trip plan so that they can communicate the values as well as use them as per
individual clients. Moreover, this sale structure is organised in unified manner wherein
individual sales person is provided information about particular product or service so that they
can devise own strategies and tactics to sell them effectively. By using the structure, assistant
manager of the hotel can enjoy benefits related to making personals expert in selling offerings,
communicating properly and making various efforts for fulfilling goals.
As per discussed information, it is explored that assistant managers of Dorchester Hotel
used product or service line sales structure wherein they have expert sales team for different
tourism packages. In the company, the entire structure is organised properly as different
responsibilities are given to sales people for its offerings.
P3 Explain the importance of having sales orientated staff within the hospitality industry
Sales oriented staff means person who are working in organisation having special types
of knowledge and experience to influence people and encourage them to buy the products and
services. If organisation is having sales oriented staff that means its productivity and profitability
is increasing day by day. This is important for business to have experienced and skilled staff who
can understand the goals and give their efforts to accomplish them in effective manner. In other
words, sales oriented employees are stated as a person with sales personality as friend and
outgoing that helps to recognise a friendly environment between customer and employees that
helps to assessing the target customers. The main purpose of this person is to make sales happen
3

at larger area and place so productivity and profitability can be maintain. In Dorchester Hotel,
there are sales oriented managers who understand the requirement of customers and provide
them kind of products and services so they feel happy and get opportunity to make higher profits
(Foltean, Trif and Tuleu, 2019).
The importance of sale oriented staff in context to Dorchester hotel are as defined:
Sales lead conversion – In organisation, sales department is playing a vital role in order to
get success. Sales people are those people who bridge a gap between people needs regarding
particular products and services than fulfil it effectively. they are dealing with warmed up
prospectus who have good awareness of company and attracting customers through marketing
and advertisement effects which leads the conversion. In context to Dorchester Hotel, managers
are focusing on customers’ needs and wants that helps to provide them kind of products and
services so they feel better and take decision to further more.
Business growth – Sales oriented staff are important who build loyalty and trust between
customers and business that helps to grow the business. It has examined that trust and loyalty are
the main reason why a customer would choose to recommend their organisation to family, friend
and other people which increases organisational productivity. In Dorchester, sale oriented staff is
having good ability and experience to maintain loyalty and trust between customer so they feel
good and refer others to obtain products more.
Customer retention – Every organisation wants that its existing and new customers
should be retail for long period of time. Selling is personal interaction between human and
another which helps to create good relations and increase brand image. In Dorchester hotel, Sales
oriented staff is important as managers never underestimates the personal connected from their
customers and offer them best quality of products and services. These people are import who
understand and keep records of their existing customers which helps to deliver that kind of
services which they wants that increases brand reputation by word of mouth and reference.
Sales oriented staff helps to attain the targets – An organisation reach its set goals with
the help of sales people as they contributed in organisational activities and increases business
performance. In Dorchester, sales people get their targets and uses different sources to attracts
people which helps to increase hotel performance and maintain higher profits by analysing
competition (Zhang, Chao and Shi, 2019).
4

P4 Assess the use of different sales distribution channels for specific hospitality examples
Sales distribution channel is a chain of businesses or intermediaries through which goods
and services passes until it reaches the final buyer. In distribution channel it involves
wholesalers, retailers, distributors and internet which help to increase the selling activities and
business performance. Distribution channel is consider as part of downstream process, answering
the question “How do we get our product to consumer?” that helps to maintain the organisational
productivity and profitability. In Dorchester hotel, managers are focusing on distribution channel
which helps to reach nearby customers and increase the sale of organisation by influencing
people and encouraging them effectively (Al Hussaini, 2019).
Uses of different channels for hospitality are as defined:
Direct Channel or Zero level channel – This means direct selling or oldest form of
selling the organisational products and services. In this channel, manufacture produce products
and sales it directly to customers which helps to remove the intermediaries. This helps to provide
products and services at low cost because it inclusion of intermediary and manufacture have
direct contact with customers. This channel is used by manufactures selling perishable goods and
expensive goods who target audience is geographically concentrated. For example, bakers,
jewellers, brand retail stores etc (McGowan, 2020).
Indirect channel – This channel means selling products through intermediaries that
helps to make available the products nearby customers. When a manufacture involves a
middleman or intermediaries in order to sell its products to the end customers then it is known as
indirect channel. This indirect channel is classified in different categories such as:
One level channel (Manufacture to retailer to customer) – This means retailer buys
products from manufacture and sell it to customers. It works best for manufactures dealing in
shopping goods like shoes, clothes, toys and furniture (Van der Borgh, De Jong and Nijssen,
2019).
Two level channel (manufacture to wholesaler to retailer to customers) – Whole
sellers are those people who buys products from manufactures then sells it to retailer and then it
goes to customers through them which helps to sell the products and services effectively.
Three level channel – This involves when products are sell to agent by manufactures
then whole sellers to retailers and customers which helps to increase the organisational
productivity and profitability. For example, in Dorchester hotel, managers have direct contact
5

with travel agents which helps to provide the customers by offering different types of products
and services (Singh, Flaherty and et. Al., 2019).
Distribution channel for services – This channel involves online market place,
aggregator business model and on demand business model which helps to attracts customers and
increase the organisational productivity. In Dorchester, selling staff is using this channel for
example it uses internet, you tube, promotional channel and hotel websites which attracts
customers and increase organisation productivity by selling their accommodation services .
TASK 3
P5 Analyse the key principles and techniques for successful selling and how they contribute to
building and managing guest relationships in application to specific hospitality
organisational examples
Every organisation wants that their all products and services should be consumed by
people which helps to increase the organisation activities and business performance. The five
principles of successful selling are as defined:
Selling is all about relationship – For organisation it does not matter what they sell and
what customers buys. This is important what customers wants and how their relations with
organisation. If a company or its employees are able to give attention to customers then they feel
happy and make decision to buy more. This includes a mixture of building rapport, identifying
needs, showing genuine interest, building trust and adding value. These principles have
contributed to building and managing relationship by understanding customer needs and
providing them products. In Dorchester hotel, employers and employees uses different
techniques such as boat services, customer services and online payment which helps to maintain
the good relations with customers and increase organisational productivity (Principle of
successful selling, 2020).
The sale is not about your product, but their problem – This principle states that to
win the sale organisation need to make whole thing about their problem or their reason for
buying and not about product. In context to Dorchester hotel, managers are focusing on this
principle which helps to increase number of customers by providing them satisfaction. In this,
selling and marketing staff give reason to buy the hotel services as it provides different services
which make different from others and contribute to build a good relations which customers.
6

Price and values go hand in hand – Price is main principle of selling units which
influences customers and encourages them to buy the products. A organisation should set prices
after evaluating the competition which helps to know what prices should be kept their products
and services. The managers of Dorchester hotel are maintaining good relationship between
customers and organisation for example, marketing manager evaluate other hotel’s prices and
contacts directly with customers which helps to set the cost of their accommodation services
according. This helps to create good relation and increase number of customers effectively. In
other words, prices the value of products and services which are provides by hotel Dorchester
and helps to take the competitive advantages (Principle of successful selling. 2020).
Therefore, by using such principles in Dorchester hotel, managers are building and
maintain good relations with customers and provide them services that helps to make further
more decision and make higher profits.
TASK 4
P6 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures
There are different strategies which should be used by organisation that yield high
profitability that are as defined:
Remove unprofitable products and services – This means the management of
Dorchester should involves those products and services which are profitable and remove
unprofitable products. Herein, managers are responsible to identity the profitable products and
services which customers wants (Gadd, J., 2019).
Find new customers – New customer’s helps businesses to grow and increase yield
profitability. This is important for Dorchester hotel, to find out new customers by attracting
customers and retaining existing one which helps to improve the organisational productivity.
Increase the conversion rate – This means an organisation is require to generate new
leads that is important for growth and maintaining profits. In Dorchester, manager should
increase their sales conversion that is fastest and lowest method to boost the companies yield.
Reviewing current pricing structure – This states suggest the manager of Dorchester
hotel to review the current price structure and set the prices of their products and services which
helps to maintain the higher productivity and profitability.
7

Reduce inventory – this means organisation is needed to stock control that is a good way
to streamline the business and improve cash flows. In Dorchester hotel, manager should focus on
reducing the inventory level which helps to improve the organisational productivity and
profitability.
Reduce overall direct cost – For improving the productivity and yield of Dorchester
hotel, manager needed to reduce the overall cost that is important to maintain the higher profits.
The importance of all strategies and incorporating account management within sales structure
is defined:
Sales structure is a general framework which is used by organisation to connect with
customers and increase organisational productivity. This structure involves B2B and B2C sales
where Dorchester should have good relation with other business which helps to improve the
sales. On the other hand, B2C sales structure involves business to customers where Dorchester
sales its hotel services directly to customers through internet, websites and others.
 This is important to attract the customers and providing them better quality of products
and services by creating sales structure.
 This is important to reduce the cost of organisation which are irrelevant and occurring
while running a business (Pufahl, 2019).
 This helps to provide products and accommodation services to people who wants specials
and classic services.
CONCLUSION
From the above report it can be concluded that sales management is requirement of any
organisation where sales staff oriented people are playing vital role by understanding needs and
wants of people. In hospitality industry, sales strategies are used to improve the organisational
yield and profitability. There are different key principles and techniques which uses for
successful selling and contributes to maintaining relationships. Distribution channel are the
important which create a link between customers and product manufacture in order to sales their
products and services. Planning and management is the main process which increases
organisational sales and profitability.
8

REFERENCES
Books and Journals:
Singh, J., Flaherty, K., and et. Al., 2019. Sales profession and professionals in the age of
digitization and artificial intelligence technologies: concepts, priorities, and questions.
Journal of Personal Selling & Sales Management, 39(1), pp.2-22.
Dilmé, F. and Li, F., 2019. Revenue management without commitment: Dynamic pricing and
periodic flash sales. The Review of Economic Studies, 86(5), pp.1999-2034.
Gadd, J., 2019. Master of Business Administration, Sales Management (Doctoral dissertation,
Turku University of Applied Sciences).
Pufahl, M., 2019. Sales Performance Management. In Sales Performance Management (pp. 3-6).
Springer Gabler, Wiesbaden.
Van der Borgh, M., De Jong, A. and Nijssen, E. J., 2019. Why helping coworkers does not
always make you poor: The contingent role of common and unique position within the
sales team. Industrial Marketing Management, 77, pp.23-40.
McGowan, P., 2020. Sales failure: a review and future research directions. International Journal
of Logistics Research and Applications, pp.1-28.
Al-Hussaini, A., 2019. A study on sales growth and market value through supply chain.
Uncertain Supply Chain Management, 7(3), pp.457-470.
Zhang, H., Chao, X. and Shi, C., 2019. Closing the gap: A learning algorithm for lost-sales
inventory systems with lead times. Management Science.
Foltean, F. S., Trif, S. M. and Tuleu, D. L., 2019. Customer relationship management
capabilities and social media technology use: Consequences on firm performance.
Journal of Business Research, 104, pp.563-575.
Saifee, M. and Kumar, R., 2020. A Study on Stress Management among Sales Employees of
Telecommunication Industry. Our Heritage, 68(9), pp.1693-1702.
Drucker, P. F., 2019. Controls, control and management. Management Control Theory, p.219.
Magnotta, S. R. and Johnson, C. M., 2020. The role of sales team intragroup conflict on critical
job outcomes. Industrial Marketing Management, 84, pp.126-137.
Online:
Dorchester Hotel. 2020. [Online]/-. Available through:
<https://www.dorchestercollection.com/en/london/the-dorchester>
Principle of successful selling. 2020. [Online]. Available through:
< https://www.linkedin.com/pulse/5-principles-successful-selling-daniel-disney- >
9