Importance of Sales Management in the Hospitality Industry

This report analyzes the impact of sales management in the hospitality industry, focusing on key principles, benefits of sales structures, importance of sales oriented staff, and use of sales distribution channels. The case study is based on London House Hotel.

Management in the 21
st century

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1 ................................................................................................................................................3
P1 Analyse key principles of sales management in relation to importance of sales planning,
methods of selling & sales reporting ..............................................................................................3
TASK 2 ................................................................................................................................................5
P2 Evaluate benefits of sales structures & how they are organised using specific organisational
examples..........................................................................................................................................5
P3 importance of sales oriented staff in hospitality industry...........................................................7
P4 Assess the use of sales distribution channel In the hospitality industry.....................................8
M2 Critically evaluate implementation of various types of sales structures..................................9
TASK 3 ................................................................................................................................................9
P5 Discuss key principles & techniques for successful selling and their contribution towards
building or managing relationship ..................................................................................................9
M3 State the application of successful selling principles & techniques in application to
organisational context ...................................................................................................................11
TASK 4 ..............................................................................................................................................11
P6 Discuss importance of developing sales strategies that yield highest profitability &
incorporating account management within sales structures ..........................................................11
M4 Examine how finance principles & successful portfolio management can lead to increased
competitive edge............................................................................................................................12
D2 Evaluate & make recommendations on how sales structures & methods can improve
financial viability ..........................................................................................................................12
CONCLUSION .................................................................................................................................13
REFERENCES...................................................................................................................................14
Books & Journal:...........................................................................................................................14

INTRODUCTION
In organisation, concept of selling is crucial which is required to be adopted so that goals
& objectives are accomplished. Sales management is concept which focuses on developing of sales
process, activities, coordination & cooperation and sales operations (Chase, 2019). Main aim of this
report is to critically analyse the impact of sales management in business. London House Hotel, a
three star hotel located in London. The hotel provides fine dining and room services within a budget
of guests & audience. This report comprises of principles of sales management, benefits of sales
structure, importance of having sales oriented staff, use of sales distribution channels, contribution
of key principles & techniques for successful selling and importance of developing sales strategies.
TASK 1
P1 Analyse key principles of sales management in relation to importance of sales planning, methods
of selling & sales reporting
In enterprises, sales planning is crucial concept on basis of which firm is able to generate
higher profit & sales revenue. In relation of London House Hotel, they too focuses on sales
management which assist them in managing of every activity which is linked with sales process.
Further, it is also examined that there are various types of principles which are described as follows-
Retention –
It is essential principle of sales management in which main aim is to increase the retention
period of customers as well as clients. This is because market situations are flexible & too deal with
such situations, retention is important. In reference of London House Hotel, they have provide
affordable services to customers which increases their expansion of business (Cuevas, 2018).
Making sense of data-
It is another principle which is needed and it is necessary to focus on collection of
information & data so that it is easy to target audience fulfil their needs or demands specifically.
Information as well as data can be gathered through various sources which are easily accessible. So,
in viewpoint of chosen hotel, they generate data of clients & guests by social networking sites &
secondary sources (Dombrowski, 2017).
Sales planning
Sales planning refers to process or procedure which is used by entity to identify the activities
as well as resources which are needed to fulfil the objectives of business. It is critical process which
require appropriate level of knowledge & understanding of market so that planning is done in most

effective manner. In relation of London House Hotel, they conduct their sales planning on basis of
brainstorming sessions, group discussions which helps in implementation of planning & strategies
effectively.
Sales reporting & methods-
Sales reporting is to be defined as a written document which is used for overview the sales
activities & analysis within a firm. It basically reflects the changing trends, sales volume & sales
funnel as well as performance of sales person. In relevance of selected hotel, they uses sales
reporting in such a way that they are able to manage every activity within sales management. There
are different types of sales report such as weekly, monthly, annually which are prepared by entity
(Gu, 2017).
Hence, explained paragraph shows that it is essential for hospitality industry to have
relevant knowledge of these sales planning, reporting and methods so that it is easier to do selling
in effective manner.
M1 Examine how principles of sales management will be different in response to consumer &
business buying behaviour
Principles of sales management are important which are to be considered effectively so that
positive output is easily generated. The use of principles are applied depending upon situations and
analysis. They are different in response to consumer & business buying behaviour which is
explained below-
Consumer behaviour buying process-
This process focuses on how to influence the needs or decisions of consumers to make the
sales. It comprises of several stages like problem recognition, information search, evaluation of
alternatives, purchase decisions, purchase and post purchase evaluation. So, principle of sales
management is used in different way because they used for concern of customers thinking (Hải,
2019).
Business buying behaviour process-
It is different process of consumer behaviour in which it focuses on using of sales
management principles with aim of increasing business revenue through analysing behaviour of
individual. It includes eight stages which are problem recognition, problem description, information
search, supplier evaluation & selection and post purchase evaluation. The principle of sales
management such as sales is all about relationship is used differently with wide procedures as
compared to consumer buying behaviour process (Hirvonen, 2019).

Thus, it is stated that it is necessary to be aware about these sales management processes or
procedures because without them it is difficult to sell product or target customers. The concept of
selling is broader & wider which is needed to be done with appropriate considerations. Further, it is
too analysed that correct type of process are to be applied. Further, buying & consumer behaviour
process are necessary to be understood so that both are used accordingly.
TASK 2
P2 Evaluate benefits of sales structures & how they are organised using specific organisational
examples
It is important for every organisation to choose appropriate structure of sales. Sales structure
provide whole systematic information and facilitate the organisation to take effective decisions
regarding the enhancement of sales (Chase, 2019). London House Hotel adopt the horizontal
structure of sales, so the management can take proper control over the all level of organization. By
using this structure , the organisation can complete their activities in effective way and take
appropriate decisions. The structure is roadmap that defines all functions that are to be done near
future. Management should analysed all factors closely to resolve problems that are occur in the
future.

Sales structure of London House Hotel
To enhance the development of personnels London House Hotel's human resource managers
conduct various process. Employees are important factor to increase the sales of organisation, so
proper structure is adopted by management to recruit employees and appropriate training program
are conducted regarding the work. Some process are discussed below:
Recruitment and selection- Human resource manager tries to recruit experienced and
talented sales force, who are able to convene the customers and make deal with them. These type of
sales force are helpful to increase profitability and productivity of organisation. London House
Hotel adopt the appropriate methods to hire right candidate on right place. All rules, regulations and
policies are clearly defined to employees, so they ca perform their task in best manner (Cuevas,
2018).
Training and development- Sales managers of respective organisation conduct various
training and development program to develop work relate skills in employees. These programmes
are helpful for employees to perform all activities with great efficiency. Training should be
according the work profile that enhance the knowledge of employees. Sales managers ensures that
these programs are conduct after the requirement process and t the some specific time.
Sales structure provides various advantages to the organisation to enhance sales in systematic
manner. Some benefits are discussed below:
Performance analysis- employees performance and their development can be evaluated by
the properly defined sales structure. Sales structure defines all task that are performed by the sales
force. It clears all roles and responsibilities of each and every employee to ensure that they will
complete their assign task in defined time period. If employees obtain their goals, appropriate
recognition is given to them that motivates to perform better (Dombrowski, 2017).
Easy to define roles and responsibilities- Appropriate sales structure help the organisation
to assign all roles, responsibilities and duties to suitable employees, who can perform task better. It
is very important for the London House Hotel to assign particular task to those employees who are
able enough to complete them in correct manner without having any mistake. Sales structure define
all duties of employees at every hierarchical level of organization.
Enhance ability and knowledge- Properly defined sales structure increase knowledge and
understanding of employees regarding the work. Proper understanding will help to remove all
conflicts among the employees and management. London House Hotel should provide all
information regarding the work, this will enhance their key skills to work in critical situations.
P3 importance of sales oriented staff in hospitality industry
Sales personnel is very important for each and every organisation. Skilled sales people are

helpful the organisation to increase sales and profitability even in the bed market conditions. They
have enough skills to spreading customers base by inspiring them to consume their goods and
services. Every organisation do not have all perfect resources to decrease their affects on business,
they have to ensure that their each sales person is enough skilled to deal with customers objectives
and problem. They are able to generate profit. Some importance are discussed below:
Attract potential staff- Skilled sales staff is able to attract and retain potential customers
within the organisation. London House Hotel's staff members designed and build their product and
services according to guests to attract them. Sales persons are able to understand the market position
of respective hotel and target suitable segment to fulfil their all needs and demands. These sales
staff know their potential customers, so time and resources can be saved to spend on other
customers who are not interested to take their services.
To maintain relation ship with customers- Sales staff always keep in touch with their
customers with the help of social media. They collected all informations about customers such as
their needs, demand and thei8r preferences and provide them services accordingly. Staff of London
House Hotel keep their regular connection with customers solve their problems and satisfy them
with better services. This will help the organization to maintain better relation with them.
Continuous development- There are various changes are happened in the external
environment, technological factors and new market trends. Effective sales staff understand and
evaluate all these factors closely and develop competitive strategies and planning to overcome their
affects upon the organisation. In the respective hotel industry all staff members are evaluate external
environment and take actions towards them by applying effective planning. This will ensure the
development of the organization and enhance profitability (Gu, 2017).
Enhance sales volume and productivity- Effective sales staff are helpful for the
organisation to increase their sales volume and profitability. Sales person of London Hotel, conduct
proper market research to analyse market conditions and current trends. Involve these trends into
their planning. This is helpful to increase productivity of respective organisation.
P4 Assess the use of sales distribution channel In the hospitality industry
Sales distribution channels plays very important role in the in the enhancement of sales of
respective organisation and delivered goods and services on time. Various channels are available for
the organisation. London House Hotel, that provides hotel services to their customers have to chose
appropriate distribution channel of sales that contains less mediators (Hải, 2019). Now these days
digital channels are adopted by the hospitality industry to attract guests. Online booking, online
payment and various modes are applied to generate revenue. Some of distributions channels that
help the hospitality industry are discussed below:

Official website- Website of that hotel spread the value of respective hotel. Marketing
strategy and position can be improved by maintaining proper website. The hospitality industry have
to find out proper constitutes before creating website. Like five star hotel's website inspire the
p0erspective guests to book to consume their services. The London House Hotel should develop
their website and regular update it with latest information for customers.
Global distribution system- The assessment and selection of hotels by the travel agents are
based upon the description of particular property on the global distribution system. This is very
important for the London House Hotel to spread awareness of hotel among the guests and other
agents. GDS distributes the information globally that help the organisation to increase the number
of customers as well as enhance profitability of the respective hotel (Hirvonen, 2019).
Voice Reservations- Voice Reservations is important channel of distribution such as call
centres, this medium is helpful to make human connection between the guest and hotel
management. Call centre staff establish direct connection of guests and hotel, and provide the deep
information and their sentiments. This channel consist low cast, so this is quite beneficial for the
hospitality industry to survive in the competitive environment.
Booking engine- User experience is the most essential factor of book engine. By using this
distribution channel it can be determined that the potential guest book after arriving. This channel
will help the London House Hotel to increase the user or guest overall experience and terns
potential and interested guest into the confirmed guests.
M2 Critically evaluate implementation of various types of sales structures
Every organization have different sales structure from each other according to the capacity
and ability of employees, environment of organisation an current market trends. London House
Hotels adopts various type of sales structure to enhance their sales and profitability. There are some
factors that affect the sales structure that are discussed below:
Geographical sales structure- Every sales structure is different to the one place to another.
Various geographical boundaries affect the sales structure. These boundaries are related to the
region. State, national and international areas that have their awn rules, regulations and way of
conducting business (Johnson, 2019).
Market based sales structure- The term market is divided in the different factors of market
that are market trends, competition exist among the firms and customers. All these factors affect the
London House Hotel to prepare their sales structure according to their requirement of customers and
organisation should analyse their competitors and current market trends.
Product based sales structure- Every organization deals in the number of products, so their
strategies and sales structure are prepared according to it. London House Hotel deals in the hotels,

restaurants and resorts. The respective organization should conduct their sales structure according to
their product and services.
To develop the appropriate sales structure, it is required that all these factors are closely
examined. It is estimated that the manager implement a appropriate structure to take effective
decisions for organization.
TASK 3
P5 Discuss key principles & techniques for successful selling and their contribution towards
building or managing relationship
Selling is an important concept which is required to be understood properly. In context of
London House Hotel, they uses various kinds of principles as well as techniques for successful
selling so that positive outcomes are achieved. It is necessary to do selling in such a way that results
are obtained in positive manner. Moreover, managers & leaders are responsible for implementation
of successful selling strategies. There are various types of principles and techniques which are used
& are explained as follows-
Effective & active-
It is also crucial principle in which it states about being effective & active in market so that
it is easy to use be aware about changing environment of market, strategies, competition rivalry, etc.
So, London House Hotel is effective as well as active in regards of market situations. So, being
effective & active is beneficial for doing selling appropriately (Johnson, 2019).
Market analysis
It is another principle & technique which is used for successful selling as through
conducting of market analysis, it is easy to generate information in specific manner. Also, with help
of this analysis chosen hotel is able to track activities which have impact on business which assist
them in managing & maintaining sales strategies. It is a time consuming process which is needed
to be done with proper manner (Liu, 2019).
Store house
In corporation, it is crucial to have storehouse so that goods are managed & maintained in
well organised way. In reference of chosen hotel, they have inventory & well stocked of goods &
resources which is beneficial for them because time is saved.
Principles of selling-
Selling is linked with relationships-

It is important concept and principle of selling which is used by London House Hotel
because according to this principle it shows that without developing of relationships with target
audience or customer, it is not easy to sell product or service.
Price & value go simultaneously-
It is another selling principle which is used by chose hotel and it states that value & price of
product/ service is meant to be carried out consistently. Further, it is too examined that in relation of
selected organisation, they provide both products & services at affordable prices and in valuable
manner (Mujianto, 2019).
Techniques of successful selling-
Sales Aikido- It is to be considered as most appropriate selling technique which is needed
to be used as because it states that sales executive is responsible for selling product & influencing
decisions of customers. In relation of chosen hotel, to use this technique they need to hire talented
more skilled employees in order to execute selling in proper manner.
Promotions & advertising but avoiding over personalization- It is also another technique
which is used by selected organisation. In this technique, promotion and advertising both are used
with aim of branding but on monthly or weekly basis rather than doing it aggressively (Nitescu,
2017).
Therefore, above discussed matter shows that it is necessary for every organisation to have
knowledge regarding how to made a successful selling. So, it is easy to achieve competitive
advantage in effective manner. It depends upon entity to use appropriate principles & techniques so
that advantages are achieved widely.
M3 State the application of successful selling principles & techniques in application to
organisational context
The application of selling principles are crucial to be focused as it help in development of
organisation goals. So, London House Hotel uses converting of first time customers into regular
one. Also, they uses technique of sales aikido. It has been seen that it is necessary to use both
principles as well as techniques so that strategical objectives are achieved.
These selling principles are used at larger scale within business perspectives. They are
beneficial because it help them direct or guide entity on basis of which selling is done appropriately.
Moreover, it has been also specified that appropriate type of techniques are required to be applied to
access opportunities in market appropriately.

TASK 4
P6 Discuss importance of developing sales strategies that yield highest profitability & incorporating
account management within sales structures
Sales strategies are necessary which are to be used in most correct way so that it is easy to
survive in this competitive market. In hospitality sector, appropriate range of organisation & hotel is
increasing which forces chosen hotel to use sales strategies so that benefits are achieved (Patil,
2018). There are various kinds of strategies such as using of technology & social media for tracking
data. With increase of competition level, it has become crucial to adopt technology because using of
advanced software and tools assist in development of sales & structures.
Account management- It refers to role of post sales that focuses on influencing client
relationships. Account managers mostly have different objectives such as retaining of customers &
clients, to access business opportunity. Main aim of account management is necessary to develop as
well as maintain positive relationships with clients & customers.
Development of sales strategies leads to higher profitability because with use of sales
strategies it is easy to make effective decision making which reduces the chances of risks &
problems. Furthermore, in context of selected entity, they uses social multi-channels as a sales
strategy which assist them in accessing of competitive advantage easily (Pawlicz, 2017).
Also, measuring & monitoring of sales performance by using metrics is too effective
strategy which is used by firm. In relation of selected hotel, they measure performance level of sales
on regular and monthly basis. It is beneficial strategy which is used by them on basis of which they
are able to make improvements in correct way. This has been too analysed that developing sales
strategies increases profitability at higher scale.
M4 Examine how finance principles & successful portfolio management can lead to increased
competitive edge
Finance principles and portfolio management is beneficial for development of business
activities. It is essential to use them so that competitive benefits are achieved. So, selected hotel
need to have appropriate knowledge about these as portfolio management includes prioritisation,
projects & programmes & executing them with inline and in strategical way. This is crucial for
hotel to focus on these principles & management portfolio so that profitability & competitive
advantage are gets increased easily. Principles are further stated as follows-
Averaging plan: It is analysed that consistent savings need to be spent continuously spent in
market as it is determine that investing within the average manner assist company to make sense of

spending instead of market fluctuations.
Diversify: It is refers to way of declining the level of risk that is involved within business. It
is analysed that spending funds in one sector instead of more sector is beneficial for company .
Focus on what is in control: Another principle which states that focusing on keeping the
portfolio in control as per the strategies aid an organisation to maximize its profitability level in a
proper manner.
Maintain liquidity: It is essential to maintain liquidity at time when an entity is at bad
condition. Converting fixed assets into a form cash at rapid manner allows an entity to decline level
of daily business deals in an effective manner.
D2 Evaluate & make recommendations on how sales structures & methods can improve financial
viability
Sales structure refers to way through which sales activities are carried out. Sale structure is
important to be examined because it depicts the way in which all decisions are undertaken & other
procedures are executed. Financial viability refers to generating of efficient income through
different sources so that organisational needs are meet. In reference of chosen hotel, they uses
methods to improve financial viability (Pawlicz, 2017).
Recommendations
 It is recommended to London House Hotel to improve financial viability they should hire
expertise who has deep knowledge of market so that it is easy to make decisions regarding
how to access financial institutions or sources through income can be generated for business.
 Another recommendation is that selected hotel has to improve their infrastructure so that
more audience get attracted towards hotel.
So, explained matter states that sales structures are needed to be formulated in proper
manner so that it is easier for entity to improve financial structure so that decision making is done
in effective way (Rachi, 2020).

CONCLUSION
After a brief analysis of above report, it has been concluded that it is crucial to be aware
about concept of sales management so that it is easy for organisation to achieve their objectives
within set time interval. So, discussions have been made about important principles of sales
management, benefits of sales structures, concept of sales oriented staff, use of different sales
distribution channels. Then, key principles & techniques for successful selling and importance of
developing of sales strategies is discussed briefly. Therefore, it is analysed that it is responsibility of
manager to make assure that effective decision making is used so that it is easy to obtained positive
results. Furthermore, with proper market analysis it is easier to implement strategies for business so
reliable information is needed.

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