Key Principles of Sales Management for High Profitability - Desklib

This report by Desklib discusses the key principles of sales management for high profitability. It covers topics such as sales planning, methods of selling, sales reporting, sales structure, selling through others, and sales strategies. The report also provides examples and recommendations for improving sales structure and increasing profits. Course code and college/university are not mentioned.

Business

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Examining the key principles of sales management in relation to the importance of sales
planning, methods of selling and sale reporting..........................................................................3
Evaluating the benefits of sales structure and how they are organized using examples..............4
Importance and advantages of selling through others..................................................................5
Analysing the key principles and techniques for successful selling and its contribution to
manage customer relationship......................................................................................................6
Explaining the importance of developing sales strategies to have high profitability..................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The Business refers to the term which used to define the enterprise what is engaged in
some commercial, industrial and professional work or activities. The business can be made for
the profits or for the non- profits. The assignment is based on the KFC which is the fast food
restaurant dealing in the veg and non- veg food items. The report will outline the key principles
of the sales management which are relating to the importance of the sales planning, methods of
selling and sales reporting. Further this report has evaluated about the benefits of the sales
structure and how they organized by using organizational examples. It will also describe the
importance and the advantages of selling through others. Furthermore, this report will also
analyse the key principles and techniques in order to have successful selling that have
contributed in the customers relationships with examples. At last, this report has outlined the
importance of sales strategies that increases the profitability and incorporating accounting
management with sales structure.
MAIN BODY
Examining the key principles of sales management in relation to the importance of sales
planning, methods of selling and sale reporting
The key principles of sales management are as follows:
1. Manage the people Individually: In order to be the successful sales manager, the
person must manage the individuals in groups which makes the work easier. By
having the group work it helps the sales manager to have proper sales planning in
order to sell the products in the market (Grigorova, 2019). They can provide
training to their groups to have the goof sales planning and helps the organization
to sell more products.
2. Maintaining discipline in the organization: It will be impossible for the company
to survive without having discipline. The discipline includes the way of behaviour
of the employees and other staff in the complacent. The manager of the company

must focus on the different methods of selling by having the discipline in the
organization.
3. Treat the people nicely: As everyone in the organization wants to be treated with
the full respect. The managers of the organization must treat their staff nicely and
with manners (Favia and Welliver, 2019). In order to lead in the company the
managers and the larders must being nice with the employees which helps in
retaining the employees.
4. Be goal oriented: As the sales manager they must have the predefined goals and
they must make sure that the company is achieving the goals or not. By focusing
on the goals helps the company to create the good culture which help in
increasing the productivity and also helps the company in having the good sales
reporting. The sales reports are basically the summary of the selling done by the
company in order to manage the things.
Consumer buying process: The consumer buying process are the steps that the customer
tales in order to make the purchasing decisions (Groza, Zmich and Rajabi, 2021). It has some
steps which includes recognition of the needs and wants , searching of information, evaluating
the choices, purchases and evaluation of post- purchase.
Business buying process: The business buying process consist of the various steps which
includes recognizing the problem of business, developing specs to solve problem, selecting the
best supplier and ordering the product and at last evaluating the supplier performance and the
quality of product.
Evaluating the benefits of sales structure and how they are organized using examples
Sales structure is defined as the segmentation of the sales team in the specialized groups
in the company. By having the good sales structure it will help the organizational employees to
perform the best every day (Billups and Poddar, 2018). Improving the performance of the
employees helps the company to increase the morale and confidence. The sales structure of the
organization should be specified in order to manage the sales by having good product in the
market.
The cited organization is having the geographical organizational structure which helps
the company in maintaining and monitoring the sales across the various region of the country.
The organization has adopted the franchise model in order to sale its products in the different

markets and by this company increases the market share. The sales department of the
organization is focusing and monitoring on the sales which helps the franchisee to know about
the shortfall in the sales (Ingram and et.al., 2019). The organization used to take the corrective
measures in order to have the good sales structure in the market. KFC is basically having its
operations in the various regions and subregions of the world. In present the company is
operating in the 142 countries and for this the company has to maintain the best sales structure.
By having the geographical organizational structure the company has some advantageous
in order to compete in the market. The advantages are as follows:
1. Fulfils the customer's satisfaction: by having the geographical sales structure it
helps the company to expand its market and foster the needs of the customers. By
having some different menu in the different region it helps the franchise to
maintain the regional taste in the menu (Ancillai and et.al., 2019). The people are
more aware about this brand and used to visit in order to have the best meal.
2. Regular income: The cited organization should receive the income on the regular
basis which helps the company to maintain the royalty in the market. There is no
extra cost borne by the franchise in order to do advertisement for their brand as
they are already having the good image in the different market.
For example: The McDonald is also having the geographical organizational structure as it
is also having the big market share in the different countries. The firm is having good sales
structure which helps them to earn goof profits in the market.
Importance and advantages of selling through others
Selling through others or through intermediary is the most cost effective method in order
to reach to the final consumers and selling to them directly. By selling through others it makes
the work easier in order to deal with the large customers and increases the sales by having the
large customer base (Putri and Rahyuda, 2020). By having the large sales it helps in increasing
the brand awareness of the product by having the nationwide coverage. There are many ways of
selling through others which are as described below:
Retailers: If the customer are buying the ow quantity of products than the company can
have the target retailers that used to sell the similar products. This helps the company to sell the
large products in the market.

Sales agents: By recruiting the sales agents and promoting the products of the company in
order to increase the sales in the market. The sales agents will help the organization to have
increase in the sales without having the heavy investment.
Whole sellers: If the company is targeting the business customers who used to deal with
the large suppliers can sell their products to the whole sellers (O’Donnell and Marsh, 2022). By
selling their products to the whole sellers helps the company to increase its sales in the
competitive market.
As the cited organization is having the franchise n many countries it helps the company
in order to braincase its market share in the various markets across the globe. The advantages of
having the franchise in several countries are as follows:
1. Expansion of market: As by having the franchise in the different market help the
franchiser to expand its market. This helps the to sell the products through
different franchisee in the different market of world.
2. Operational advantages: By having the franchise there is no bothering of hiring
and firing of the employees, maintaining the stores, etc. The Franchisers are free
from al these as the owner is responsible in order to ire ad fire off the employees
and maintaining the raw material in franchise (Stverkova and Pohludka, 2018).
3. Maintains the regular income: By having the franchise of the company in the
different other countries helps the company to maintain the regular income. By
gaining the regular income it will use to maintain and increases the profitability of
the company. As the franchisee it used to have the royalty income and the
expenses of the franchise is borne by franchisee.
Analysing the key principles and techniques for successful selling and its contribution to manage
customer relationship
Customer relationship is the most important factor that helps the organization to connect
the more customers and increases the customers base. This will help the organization to have
more target customers and by this the company will be earning more profits in the competitive
market. The cited organization has some key principles and techniques that helps to have the
successful selling and they are made in order to gain and manage the customer relationships
which are as follows:

1. Retain the customers: Customer retention is the most essential and important
principle in order to have successful selling in the today;s changing world. By
retaining and increasing the customers base it will maintain the markets hare and
profitability of the company. By providing the customers discounts or by giving
them coupons helps in maintaining the customers relationships. For example,
KFC can provide the discount or combo offers to their customers in order to
increase the large customer base.
2. Have positive sales structure: By having the great greetings of the customers by
giving them the big smile and by taking and listening the orders properly will help
the organization to have good selling of the products (Barmashov, 2019). As the
cited organization is the food restaurants it must take the proper orders and serve
them the best quality and taking care of the hygiene as this shows the positive
sales culture.
3. Use of social media: The organization by sung the social media sites will have in
increase the sales which will help in increasing the customer relationship. By
using the different social media apps like Facebook, internet and individual sites
of the different organizations will help them to do good selling. For example,
KFC can use its KFC app in order to have home delivery of their food items by
taking care of the hygiene.
4. Maintaining the data: By having the information related to the customers, increase
in sales, keeping the data will help the company to have successful selling by
increasing the customer base (Zastavetska and et.al., 2019). By doing promotion
of the successful data, it will help the company to provide message to the
customers and increases customer relationship in the market. Having the data is
very important as it helps the company to have good promotion in the market and
have the good message to the customers.
5. Optimum utilization of resources and technology: The organization must use its
resources wisely which helps them in reducing the wastage of the resources. In
the today's era if the organization is using the traditional technology it will fail in
the market. In order to compete in the market the organization must use the new
and innovative technology in order to have successful selling in the market.

Explaining the importance of developing sales strategies to have high profitability
A sale strategy is basically the documented plan in order to position and sell the products
or services in order to attract the customers and this differentiates the company from their
competitors. By having the sales strategies in the organization helps the organization to provide
the clear guidance and objectives to the organization. There are some importance of developing
the sales strategies to yield high profitability and incorporating the accounts management within
the sale structures are as follows:
1. Reduces the business costs: The company can make the sales strategies by
reducing the extra costs which was not helping in generating the revenues. The
direct cost of the company can be cut down by reducing the number of employees
or recruiting them for part- time job (Chilla and et.al., 2020). As the company is
producing the food items, so they must use the optimum resources in order to
maintain the cots. The company can also maintain its operating costs by using the
new and innovative technology which consumes less energy.
2. Expanding business in new markets: In order to increase the profitability and
having and incorporate the good account. The cited company has the great market
across the globe which helps the company to have good profitability in the
different markets. The company can also expand its business in those countries
where the people used to prefer non- veg as well.
3. Develop new products and services: As the company is the food restaurant and
used to provide the limited menu to the customers. The organization by increasing
the menu can make the sales strategy in order to earn good profitability.
The cited organization can increase its profitability by increasing the prices of the
products, making the new target customers, selling more to the already existing customers,
expanding its market in different countries, etc. In order to make the good sales strategy the
company can use the Ansoff Matrix tool in order to analyse the sales strategy for growth.

There are four strategies in the matrix which will help the company to make the good
sales strategies and also help them in increasing the profitability. It includes market penetration,
market development, product development and product diversification (Ansoff Matrix, 2022). By
focusing on these factors company can generate the revenue and have the good market share.
This tool will help the company to decide that what actions the company takes by having the
focus on the market scenarios and the scenarios of the product in the current market.
Thee are some recommendations which helps the company in order to improve the ale
structure and helps the company to have good revenue are as follows:
1. It is suggested to the company that they must prepare the good budget which
helps them in increasing the profits.
2. Further it is also suggested to the company that they must review the performance
of their organization in order to incorporate good accounts.
CONCLUSION
From the above report it is concluded about report has evaluated about the key principles
of the sales management which are relating to the importance of the sales planning, methods of
selling and sales reporting. Further this report has evaluated about the benefits of the sales
structure and how they organized by using organizational examples. It has also described the
importance and the advantages of selling through others. Furthermore, this report has also
evaluated the key principles and techniques in order to have successful selling that have

contributed in the customers relationships with examples. At last, this report has overviewed
about the importance of sales strategies that increases the profitability and incorporating
accounting management with sales structure.

REFERENCES
Books and Journals
Ancillai, C. and et.al., 2019. Advancing social media driven sales research: Establishing
conceptual foundations for B-to-B social selling. Industrial Marketing Management. 82.
pp.293-308.
Barmashov, K. S., 2019. The Industrial and Trade Policy of an Enterprise: Research of
Principles and Methods and Change Depending on Geographical Features. Amazonia
Investiga. 8(20). pp.242-250.
Billups, M. J. and Poddar, A., 2018. Entry-level Salesperson Selection: An Engaging
Experiential Exercise for Sales Management Students. Journal for Advancement of
Marketing Education. 26.
Chilla, T. and et.al., 2020. The EU food label ‘Protected Geographical Indication’: economic
implications and their spatial dimension. Sustainability. 12(14). p.5503.
Favia, M. J. and Welliver, M., 2019. To Master Something, Teach It: An Innovation for a Sales
Management Course. Journal of Instructional Pedagogies. 22.
Grigorova, V., 2019. Contemporary Dimensions Of Sales Management. Бизнес управление.
31(4). pp.23-38.
Groza, M. D., Zmich, L .J. and Rajabi, R., 2021. Organizational innovativeness and firm
performance: Does sales management matter?. Industrial Marketing Management. 97.
pp.10-20.
Ingram, T. N. and et.al., 2019. Sales management: Analysis and decision making. Routledge.
O’Donnell, E. and Marsh, L., 2022. The Impact of Compensation Structure on Salesperson
Perceptions and Behaviors: Insights From the Sales Literature. Compensation &
Benefits Review. 54(1). pp.3-11.
Putri, I. G. A. P. T. and Rahyuda, H., 2020. Effect of capital structure and sales growth on firm
value with profitability as mediation. International Research Journal of Management,
IT and Social Sciences. 7(1). pp.145-155.
Stverkova, H. and Pohludka, M., 2018. Business organisational structures of global companies:
Use of the territorial model to ensure long-term growth. Social Sciences. 7(6). p.98.
Zastavetska, L. B.and et.al., 2019. Social and geographical features of the formation of the
modern labour market of Ternopil region. Journal of Geology, Geography and
Geoecology. 28(3). pp.618-625.
Online
Ansoff Matrix. 2022. [Online]. Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/>