Significance of Sales Management in the Hospitality Sector

This report explores the main principles of sales management in relation to the significance of sales planning, techniques of selling, and sales reporting in the hospitality sector. It discusses the advantages of sales structure and how they are organized using specific examples from the hospitality industry. Additionally, it defines the significance of having sales-oriented staff within the hospitality sector.

SALES
MANAGEMENT

Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Explore the main principles of sales management in relation to the significance of sales
planning, techniques of selling as well as sales reporting...............................................................3
TASK 2.................................................................................................................................................5
P2 Describe the advantage of sales structure and how they are organised using specific
hospitality industry...........................................................................................................................5
P3 Define the significance of having sales oriented staff within the hospitality sector...................7
P4 Assess the use of different sales distribution channel for specific hospitality example.............8
TASK 3.................................................................................................................................................9
P5 Determine the key principles and methods for successful selling and how they contribute to
building and managing customer relationships in application to specific organisational examples.
.........................................................................................................................................................9
TASK 4...............................................................................................................................................10
P6 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures..........................................................10
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................12
Books and Journals]/=...................................................................................................................12

INTRODUCTION
Sales management is considered as a process in which the manager focuses on emerging a
sales force, managing the operations and functions related to sales as well as executing the best
method of sales that helps the business organisation in achieving sales target within pre-decided
period of time. Sales define as a transaction which mainly takes place among two or more parties
where buyers purchase products, services and any kind of activities related to money. In addition of
this, they focus on sales their products and services in order to earn more and more revenue. Beside
from this, it is a method of using resources, money as well as time that helps in operate the business
smoothly (Razmochaeva, Klionskiy and Chernokulsky, 2018). In the present report, Trafalgar is
chosen as the base organisation which is a small tourism company which is located in London. The
manager of this company focuses on give superior tourism facility to its visitors in order to boost
future sales and growth of company. In addition to this, they forecast the demand and execute their
activities in such a manner that helps in attracting ample of customer. It increases the sales as well
as profitability level in future period of time. In the present report various sections are going to be
discussed which includes discussion about major principles of sales management along with
benefits of sales structure as well as how they are organised. In addition to this, discussion about the
importance of having sales oriented staff are also going to be discussed in this report.
TASK 1
P1 Explore the main principles of sales management in relation to the significance of sales
planning, techniques of selling as well as sales reporting.
Sales management is the process of monitoring and controlling the resources and person that
helps them in accomplishing goal and objective in an effective manner (Powers, 2016). The main
goal is to increase the revenue and profitability level. It is said that the revenue manager of an
organisation is highly responsible in order to ensure that company gain huge amount of profitability
with the help of increasing their overall sales of the company at the competitive marketplace. Sales
management refers to a procedure which will gives base to the management team of the company in
order to enhance their overall sales by performing all the business functions in an effective and
timely manner. In context of Trafalgar, there are some significant elements of sales management
which is going to be mentioned below:
 Sales Planning: Sales planning is the process of setting sales target, predicting the demand
or sales in future period of time. The manager of Trafalgar focuses on developing effective
sales target in order achieve goal in short span of time.

 Recruitment of Sales staff: Herein, the manager of Trafalgar emphasised on hiring the
right person according to the vacant position opening in the company.
 Sales reporting: This report is prepared for analysing the whole performance of the sales
team. The top management of Trafalgar assess the overall performance of the person
working in the company. Also, they find deviation in order to make necessary decision
related to increasing productivity and profitability level at marketplace (Johnston and
Marshall, 2016).
There are some effective sales management principles which are going to be discussed as
follows in context of Trafalgar. Some of these principles are as follows:
 Manager makes important difference: It has been said that the quantum of sales, mainly
developed by an organisation which defines the capabilities, skills as well as potential of an
organisation sales manager. In context of corporate world, it has been examined that with
the help of skilled sales manager an organisation will be able to enhance the outcome of the
business entity in an effective manner. in addition to this, they also reduce the turnover ratio
of an organisation along with this they enhance the quality of products and services offered
by the company to their staff members. This will aid them in retaining their customers for a
consumer for a long duration of time and maintaining the sustainability of the company at
the competitive marketplace. In the present context of Trafalgar, sale manager of the
company is highly responsible for this and maintain the attitude as well as behaviour of
their staff members. This will assist them in enhancing their performance as well as
effectiveness so they can produce high quality goods and services.
 Lead by setting unique example: It is essential for an effective sale manager to encourage
their staff members to enhance the sales of business entity by setting examples in front of
this. It is required by the sales manager to adopt discipline culture and work in ethical
manner so that they can effectively motivate other to adopt the method they use. Along
with this, sales manager of Trafalgar, make sure that all the staff members adopt all the
legal policies and strategies in an effective manner so that they can produce desirable
products and results within given time frame (Hase and Busch, 2018). This might enhance
the overall profitability as well as goodwill of the company at the competitive marketplace
and beat the level of competition.
Relationship of sales management with sales methods, planning as well as reporting
In every business entity, it is said that sales management plays very essential role which is
related with ample number of process which includes sales planning, reporting as well as
different methods of sales. Effective planning and controlling is very necessary for the

attainment of organisational goals and objectives in an efficient manner. therefore,
interrelationship among the sales management principle with sales planning, method of sales
and sales reporting are going to be discussed as follows:
 Effective Sales force: It is very essential for a business organisation to recruit those staff
members who have the skill and potential to attract customers towards their offering and
enhance the overall sales of the company in an effective and appropriate manner. It has also
been said that the accomplishment of goals and sales target in an effective manner is highly
based on the staff members (Deeter-Schmelz, 2016). Therefore, it is required by the
management team to recruit such employees within the organisation who have enough
knowledge, skills and capacities to satisfy the needs and wants of their customers in an
effective way. In the present context of Trafalgar, managers of the company provide
training and development sessions to their staff members so they can aid them in
accomplishing their overall sales target.
Importance of Sales Management
 Through the sales management, the company can introduce the innovative products at
marketplace. In relation of Trafalgar, the management team focuses on introducing
innovative tourism services for its visitors.
 The sales management can decrease the cost in relation of selling, managing as well as
distribution of products and services in the market. In context of Trafalgar, they focuses on
reducing the cost related to the services provided by the firm in order to boost the profit as
well as sales in future period of time.
 It also assist in boosting the GDP of the country that helps in increasing the revenue of the
Trafalgar tourism company (Syam and Sharma, 2018).
TASK 2
P2 Describe the advantage of sales structure and how they are organised using specific hospitality
industry.
Trafalgar adopt the horizontal sales structure in order to manage the sales which helps in
providing the power to its subordinates in taking effective decision which will be beneficial for the
business firm. The main focus of this company is to earn more and more profit for the success and
development of company within marketplace.
Recruiting: The manager of the company focuses on hiring the talented and capable
employees according to their job profile and requirement. In context of Trafalgar, the manager hire

those subordinates who provide the best tourism services to its customer in order to earn more and
more revenue (Hase and Busch, 2018).
Training and Development: In relation of Trafalgar, the manager of this company provide
the on job as well as off job training to its subordinates in order to increase their performance level
within business organisation. The training helps the employees in providing effective services to its
customer in order to attract them. In addition to this, they offer unique and specific tourism services
to its consumer in order to gain competitive advantage over rival firms. Beside form this, the
manager of Trafalgar tourism company offer medical benefits, insurance and many more in order to
motivate them towards achieving goal and objective within pre-decided period of time.
Product sales structure: It define as the sales force of an organisation in which salesman are
expert in order sell their goods, services and thoughts of the firm to large number of people. This
vender is just familiar with few things of the business entity and holds no information of any other
goods and services of the company. In this context, it has been said that Trafalgar offer ample
number of services and products to the users across the whole wide world. For this, different types
of sales force structures are developed by them on the basis of customers, territory and products.
Benefits of this structure are as follows:
 Salesperson who sales all the goods and service developed into an expert in order to sell a
specific service to their customers.
 Along with this, all the selling efforts required by the sales person are given to them by the
management team of an organisation.
Market based structure: It is also known as customer sales force structure in which sales
agents are collected together which is based on consumers and sector or industry. The role as well
as responsibility of different venders within Trafalgar is to provide ample number of services to
their customers so that they can enhance the level of satisfaction among their customers. Some of
the most effective benefits of this structure are going to be described as follows:
 Salesperson effectively examine as well as respond towards the need and requirements of
their consumers in an effective and adequate manner which assist them in developing strong
relationship with them for a longer period of time and maintain their sustainability at the
marketplace.
 On the other hand, another benefit is that management team control various markets in an
effective, systematic as well as strategic manner so they can gain competitive advantages at
the market.
Benefits of Sales Structure
 The main advantage of having an effective sales structure is it works like an opportunity for

developing the talent of employees at workplace.
 The sales structure define the role and responsibilities of subordinates towards performing
their work within business organisation.
 Herein, the sales structure helps in identifying the performance of individual person working
in the company.
P3 Define the significance of having sales oriented staff within the hospitality sector.
Every organisation requires a team which is committed towards its goals and puts the best
efforts for organisation’s welfare. It is a responsibility of company’s manager to hire the team
members who can generate more leads for company’s profitability (Viio and Grönroos, 2016). Sales
oriented staff referrers to the kind of workforce which is determined to gain more sales by acquiring
more clients for the organisation. An effective manager will see some mandatory qualities in the
candidate company who is about to be hired for the sales force team such as ability to win the trust
of customers, convincing them to buy products or services of the company. A sales oriented staff
can help the organisation in achieving their sales measures and the profit ratio in target m arket. In
context of Trafalgar, the company focuses on having team members in its sales department who can
deliver essential details about their tourism packages and the benefits to their clients in an
impressive way so that they don’t have to think twice before buying. The company also takes care
of its team by providing better rewards for their valuable efforts.
Importance of selling through others
Taps into current consumer base: Most essential element which is needed to develop
positive customer base in an effective manner. In the present context of Trafalgar, it has been said
that company is developing strong relationship with customer when they perform their business
functions with wholesalers, distributors and retailers. Therefore, selling goods through others
provide ample number of advantages to the organisation in order to enhance their brand image.
Enhance level of market growth: It has been said that with the help of selling goods and
services with the help of others increase the level of growth rate at the marketplace. This also assist
in attracting large number of customers towards the company which leads towards the attainment of
various goals and objectives in an effective way (Monden, 2019). In the present context of
Trafalgar, it has been said that company is offering ample number of service to their customers with
the help of selling goods and services by using different selling or distribution methods in an
effective and appropriate manner.
Advantages of selling through others
Furnish logistic assistance: Selling goods and services through online mediums define as

selling products through intermediates. They provide logistic assistance to the organisation which
assures smooth as well as appropriate distribution of goods, services and commodities. In the
present context of Trafalgar, intermediates of the company reduces the shortages of goods so that
they can satisfy needs and requirements of customers in an effective manner and retain large
number of customers for a longer period of time.
Provide transactional functions: It has been said that intermediaries adopts their contacts
with the help of which they can provide services to their customers at the marketplace in an
appropriate manner. This as a result assist in fulfilling all the organizational objectives within given
time period (Pierce and Irwin, 2016). In reference to Trafalgar, it is said that users can easily inhale
all the service in an effective manner which as a result increases their profitability as well as
goodwill of the company.
P4 Assess the use of different sales distribution channel for specific hospitality example.
Every business organisation requires different types of distribution channel with the help of they
can effectively sale their goods as well as services. They are the one who acts as an intermediaries
and assist in managing and developing positive relationship with their customers at the marketplace.
Some of the most effective sales distribution channels are going to be discussed as follows in an
effective and detailed manner.
 Wholesalers: It is said that a wholesaler can be an organisation or an individual person who
wants to purchase goods and services in bulk or huge quantity from farmers, manufacturers,
venders or other producers. They store all the bulk products in their warehouse and sell
those goods to the retailers in order to fulfil the needs of consumers. They buy those
material, products or goods directly from the manufacturing companies and then sell it to the
retailers so that end users can buy them and satisfy their requirements in an effective
manner. they are considered as one of the most essential sales distributors.
 Retailers: If talking about a retailer they are the one who also know as merchant or vendors,
sell goods, services, groceries and many more directly to the customers with the help of
different distribution channels. Their main aim is to earn profit by selling goods and services
to the users. Apart from this, retailers are those who don’t produce or manufacture goods but
purchase them from wholesalers in order to gain profitability at the marketplace (Moncrief,
2017).
 Distributers: Distribution refers to the spread of goods and product throughout the whole
marketplace so that maximum number of individuals will be able to purchase these products.
On the other hand distribution of goods can be done by physical selling, online selling, door

to door selling and many more. Large as well as small business entities sell goods to the
customers so that they can satisfy their needs and wants in an effective and appropriate
manner.
These distribution channels play a major role in hospitality. With reference of Trafalgar, the motive
of these distribution channels is to gain enhanced profitability, optimal use of resources and
compete in the market. Use of updated technology makes it essential to stay updated on web
through online marketing and social media channels to acquire potential customers for the
organisation. Market segmentation also helps in this by implying various strategies such as trip
planning, acknowledging special interests and lifestyles and effective use of technology. Interactive
marketing enhances the chances of satisfying customer needs with the availability of services
accordingly (Xiao and Dong, 2016).
TASK 3
P5 Determine the key principles and methods for successful selling and how they contribute to
building and managing customer relationships in application to specific organisational
examples.
Selling of goods and services to the customers in an effective and ethical manner are quite
essential for an organisation. This will assist them in gaining more profitability and success at the
marketplace. There are different principles as well as method of selling in successful manner in
related to the Trafalgar tourism company which is going to mentioned below:
Efficient and active: The services which is given by the company must be effective as well as
efficient. In context of Trafalgar, they focuses on providing effective services to its customer in
order to retain for a longer period of time. In addition to this, they make good relationship with its
customer in order to increase the loyalty and trust of customer towards the business firm (Deeter-
Schmelz, 2016)
Extensive range of customers: It is necessary for company to have a highly skilled and talented
employees in order to attract large number of customer towards the company. Apart from this, the
company faces problems when they want to introduce innovative services in order to attract the
visitors. In context of Trafalgar, they focuses on offer superior quality services to its customer in
order to satisfy them.
Knowledge of Market: it is important for the manager of company to have a knowledge regarding
the market trends and changes. The marketer make effective strategy in order to gain knowledge
regarding the need and wants of customer in order to satisfy them.

Transaction Plus retailing: The main motive of the company is to achieve leading position by
selling successfully at marketplace. In relation of Trafalgar, they want to promote their brand image
and reputation of company.
Strategy: The marketer of Trafalgar focuses on making effective strategy, policies and procedures
in order to offer best services to its visitor for increasing the experience level of visitors in future
period of time (Moncrief, 2017). Apart from this, they want to build good relationship with its
customer by providing them services according to their needs and wants. Also, it helps in increasing
the goodwill and reputation of company in front of customer.
In context of Trafalgar, there are different techniques which is used by the manager in order to
maintaining good relationship with its customer. It helps them in increasing the sales and
profitability level in the future period of time.
TASK 4
P6 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures.
It is important for manager to make an effective strategy, policies and procedure for boosting
the sales as well as profitability level at marketplace (Pierce and Irwin, 2016). In addition to this, it
is necessary to identify the need and wants of consumer in order to accomplish goal and objective
within given period of time. There are different sales strategies which is adopted by the company to
increase the sales as well as profitability level which is going to be mentioned below:
 Be flexible: Herein, it is important for the sales manager to prepare for the changes made
within marketplace. There are a lot of issues and problems occurs in satisfying the changing
need and wants of customer. Requirements of customers are dynamic in nature which might
be changes on a regular basis, so it is required to develop sales strategies in an effective
manner so they can produce positive results. Therefore, it is required by them to be more
flexible and can easily adopt changing needs and requirements of their customers. In
addition to this, the manager of Trafalgar focuses on satisfying the changing need and wants
of consumer in an effective manner. This will assist them in retaining their customers for a
longer period of time and maintain long term sustainability at the marketplace.
 Seasonal Pricing: It is one of the popular sales strategy which is used by the marketer in
order to increase the sales as well as profitability level within market. In assistance of this,
the marketing manager charge a price according to the season as well as occasion. This is
the most common solution to manage the customer as well as demand. This will assist them

in maintain their market position and grab attention of large number of customers in an
effective manner. In reference of Trafalgar, the manage impose the price according to the
season. And also use this strategy in managing demand and customer in an effective manner.
Sales manager as well as management team of the company decides the prices of products
and services on the basis of needs and requirements of customers arise at the marketplace.
 Perfect sales pitch: It is important for marketer to have a confidence in their services which
is provided to its customer. This will help them in attracting new clients as well as retaining
the old one for long term. Along with this, it has also been said that sales manager need to
introduces changes and modifications in their offerings as per the changing needs and wants
of the customers. This will help them in beating the level of competition arise at the
marketplace. In context of Trafalgar, the manager is fully confident in providing their
services in order to gain competitive advantage at marketplace.
From the above mentioned sales strategy, the manager of Trafalgar tourism company adopts
the seasonal pricing method in order to increase the sales as well as profitability level at
marketplace. It helps them in satisfying the need and wants of customer in an effective manner.
And also, it helps in retaining customer for a longer period of time (Monden, 2019).
CONCLUSION
From the above mentioned report, it has been analysed that for sales management it is
necessary to make an effective strategy for accomplishing goal and objective within given period of
time. In addition to this, the sales management plays an important role for the success and growth of
business in future time period. Apart from this, there are different sales structure which helps in
increasing the sales as well as profitability level. The main focus of Trafalgar is to achieve the
leading position within market. Also, the manager of this company focuses on maintaining brand
image as well as reputation of company. In assistance of this, they offer superior quality tourism
services in order to attract ample of customer. It helps them in retaining customer for a longer
period of time. It has also been identified that effective sales reporting, planning and forecasting
assist in getting targets of the business organisation in an effective and timely manner. Furthermore,
it is also being examined that there are different types of sales structure which have their own
benefits and drawbacks.

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