Key Principles of Sales Administration and Sales Structures

This document discusses the key principles of sales administration, including sales planning, methods of selling, and sales reporting. It also explores the different sales structures used in organizations and the benefits of selling through others. The content is based on the example of Ford Motor Company.

SALES
MANAGEMENT

1

Table of Contents
INTRODUCTION...........................................................................................................................2
P1 Key generalisation of sales administration in relation to value of sales planning, methods
of selling and sale reporting...................................................................................................2
M1 Measure how principles of sales administration will be various in effect to user and
business purchasing behaviour...............................................................................................4
D1 Critical evaluation supported upon a encompassing understanding of sales management,
construction and merchandising method within an organisation...........................................4
P2 Measure the welfare of sales construction and how they are organized using specific
organisational examples.........................................................................................................5
P3 Significance and the benefit of the concept of ‘selling through’ others............................6
M2 Critically measure the execution of various kind of sales structures using specific
organisational examples.........................................................................................................7
P4 Key generalisation and method for successful selling and how they bring to developing
and managing customer relationships....................................................................................7
M3 Critically examine the utilization of prosperous selling generalisation and method in
application to particular organisational examples..................................................................9
P5 Explain the value of processing sales scheme that yield advanced profitability and
incorporated account administration within sales structures..................................................9
M4 Measure how core finance principles and prospering portfolio administration can lead to
accumulated profitability and a competitor bound...............................................................11
D2 Critically assess and form recommendations on how sales construction and formulation
can better financial property.................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Sales management is undertaken as the effective procedure for developing and making from
in sales unit that co-ordinate will the sales executive and dealings by third which is useful for
company to accomplish their target goals and objectives. The significant long-term goals have
the wide range that leads to enhance the sales volume and contribute towards the growth and
profitability. For accomplishing desired objectives sales manager has significant responsibilities
in terms of organising sales prediction developing prominent objectives training and
development sales performance evaluation and many more (Johnston and Marshall, 2016). The
report is based on Ford motor company which is an American multinational automaker and
headquarter in Dearborn as it is founded by Henry Ford in 1903. company deals in commercial
vehicles under its own brand and offer luxury cars. The report tends to include the key principles
of sales management that are valuable for sales reporting and designing. It is also analysed that
the benefits of sales structure are organised and managed by the accurate example of company.
The report also understands the importance and benefit of conception of commodities by others
in an effective manner. Furthermore, company also need to evaluate the key principles and
prominent method of merchandising and also include the prominent changes which develop and
manage customer relationship respectively.
TASK 1
P1 Key generalisation of sales administration in relation to value of sales planning, methods of
selling and sale reporting
Sales management is a procedure which is prominently concentrate towards the applicable
technology and use of sales method in terms of managing the sales dealing of company. It is
important for the business and functioning as it is useful to increase the net sales with the help of
effective products and services that helps in gaining profitability and income (Cummins, Peltier
and Dixon, 2016). Sales management is important for Ford motor company to reach and improve
the competition with the help of various techniques and methods of distribution to eliminate cost
and increase income. The sales management plays an important role for the business and
commercial sector and for this the prominent principles of sales management considering the
sales planning are mentioned as underneath
3

Manager make a difference: It represents the effectiveness of customer service and sales
of company which is directly related with efficiency of the front-line manager and supervisor. It
also depicts the time which is invested to offer training to the people by which they can reduce
turnover and improve the productivity by developing strong customer base. It is also helpful in
producing enhanced income and profitability as if the manager of company develops prominent
sales planning which is useful in eliminating the differences in the thoughts and opinions among
managers.
Manage the people individually: The another the principle of sales management is useful
in terms of managing people considering the individual basis full stop in order to become
successful sales manager cannot manage their people within a group and it is important for Ford
motor company to offer significant rise in the environment of company that helps in encouraging
and gaining expected result. Therefore, by managing people on the individual grounds helps in in
performing them with more efficiency that helps in gaining increase income by selling several
services and products to their customers (Malek, Sarin and Jaworski, 2018).
To be goal oriented: Another principle of sales management is useful in identifying
regarding the objectives that are developed by company. In terms of Ford motor company their
sales manager tends to develop goals and help in order to reach them with the help of effective
telecommunication. Moreover, the staff members also tend to communicate regarding the
significant numbers and goals by which company is able to manage significant objectives and
also identify the striking targets considering the objective of developing company (Syam and
Sharma, 2018). For this the company organised sales planning before reaching towards the
desired outcome as it is required to achieve higher income and profitability in an efficient
manner.
Be direct and to the point: The sales manager of Ford motor needs to be straight forward
in order to provide guidance and training to their subordinates regarding the interaction of
customers. It is important for the sales person to effectively communicate with their customers
that influence their perception and season and also solve their queries and problems without any
interference. At the time of organising sales planning in the company the manager needs to teach
their subordinates that they should maintain healthy communication and interaction with their
customers it is useful to inform their potential customers regarding the current trends and
services.
4

Methods of selling and sales reporting:
There are several methods of selling that are useful for company in terms of promoting
their services within the market. Some of them are mentioned as underneath:
Transactional selling: It is one of the most common method of sales in which the sales
representative tends to develop healthy relations and tries to close the sale. Considering this
company identify the prominent preferences and requirements of customers that can be fulfilled
in an effective way (Chapman, Schetzsle and Wahlers, 2016). It is permanently concerned with
selling and Advertising of product that focus on the requirements of customers and needs. In
terms of Ford motor, they can use this method in order to promote their services considering the
telecommunication among their potential customers.
Consultative selling: This method and prominent technique is all about the effective
communication among the customer and sales person. This concept is prominently used
regarding the strategic questioning abilities and skills in order to involve customers and also try
to solve their queries. In relation with Ford motor we can use this method in terms of getting
accurate feedback and response from there customers regarding their services and facilities.
Sales reporting: This method with the prominent Trends that arise within the sales volume
of company considering the stipulated period of time. It is considered as the common form that
represent the prominent trends for the sales volume of company (Sharma, 2016). For this the
sales reporting represent the increment and decrement Trends of facilities and services of
company. Hence in terms of Ford motor company its sales manager needs to identify the existing
trends in terms of determining the best possible course of action.
M1 Measure how principles of sales administration will be various in effect to user and business
purchasing behaviour
There are several key principles of effective sales management which is helpful for
company in terms of smooth running and functioning. In regard of this the prominent principles
are applied for company which is useful in accomplishing expected sales and objective in an
effective way (Flaherty and et. al., 2018). Furthermore, the three significant aspects that become
the reason for the significant sales management process include the sales strategy sales Research
and sales operations. Therefore, all of these factors are used by sales team that are useful in
effective operation and preparation.
5

D1 Critical evaluation supported upon a encompassing understanding of sales management,
construction and merchandising method within an organisation
It is undertaken as the process that prominently put emphasis on the practical methods and
tools of sales regarding the maintenance of the operations of company. It is considered as the
important business function as considering the net sales the prominent facilities and services
company can achieve its expected outcome by offering accurate services in the form of
commercial business. The effective analysis of sales technique helps in dealing with the
customers and also engaging them in the operations of company. Ford motor company can use
best selling technique including consultative and transactional that helps in attracting last number
of customer base towards the sun company.
P2 Measure the welfare of sales construction and how they are organized using specific
organisational examples
Sometimes staff members do not perform with their full potential that leads to impact the
profitability and productivity of company. In regard of this various policies and strategies can be
adopted by company in terms of making their structure more flexible and better. For this there
are various types of cell structure that can be opted by company and also Classified on the
grounds of size and division of industry. For these various types of sales structure are described
in the context of forth motor that are mentioned as underneath:
Geography based structure: Many of the organizations use this kind of structure as it leads
to prominently and hence the profitability and income of company. For example, if sales of the
company are depending on the grounds of Geography then it will allow the salesperson to
examine the market with their research team and also assist in terms of preceding adopting
significant approach to influence the customer base of the particular location (Guesalaga, 2016).
Hence it is helpful in terms of eliminating confusion among the sales members considering the
segment. Besides this it is beneficial for company in terms of clarifying the significant
obligations and policies regarding their products and also perform major roles with the help of
the sales team.
Product based structure: In this companies having prominent information and knowledge
considered in the production services which is quite easy for the company to develop its effective
reputation and image in the market area. This kind of structure is useful by company in terms of
promoting their potential products that are related with automobile and manufacturing. In the
6

context of Ford motor company, they sell luxury car and manufacture related products and for
this they can use this kind of structure. It is useful for company as it helps in in effective product
line considering each section and concentrate on the specific company. It will allow an
organisation to have significant focus on the specific product regarding their business operations.
Market based structure: It is depending on the customer base that exist within the market
area and also known as customer base structure. By this customer have several requirements and
company need to consider all of them in terms of making their image and reputation within the
market. Along with this if sales individual is quite expert in order to deal with several types of
dealers regarding the effective development of various sales units (Pyanikova, Kovaleva and
Zaikina, 2018). It is considered as the important structure because it leads to impact the
prominent result of market on the grounds of decisions motivation and opportunity which is
useful in participating in the market.
P3 Significance and the benefit of the concept of ‘selling through’ others
There are various types of concept that are used by company in terms of promoting and
selling their effective services in the market area. For this Ford motor company require several
people that helped company for developing their products and approaching towards the
customers to get desired outcome (Hase and Busch, 2018). Moreover, selling through is the term
which depict the specific part of commodity which is sold by the seller after shipped by supplier.
It depicts those sales made directly from the side of company and refers to the sales that made by
the channel.
Significance of selling through:
It is considered as the important factor which is for the small business in terms of offering
high value products to their customers. In relation with Ford motor company they can manage
their customised products by recruiting effective sales representatives. It is quite difficult for the
company to deal with single product in terms of selling face to face. Selling through you include
that sale which is done with the help of distributors wholesalers and retailers (Horak and
Nihalani, 2016). Ford motor is the large automobile company that offer well on production
services and also can offer its products directly to their potential customers. Some factors of
selling through are mentioned as under:
Persuading prospects: For this personal selling skill is very essential in terms of
becoming an effective sales representative that heats to use the affective competence to achieve
7

the chance of enhancing sales for the business. For this company use effective selling skills in
terms of understanding the effective demand that leads to offer prominent solution which is the
important form of product and services that offer benefit to the company.
Selling complex products: Most of the organisations tends to cell complicate products as
they are capable to reveal products according to the potential of customers and deal with the
prominent approaches and issues. In relation with forth motor the sales representative skill
should be present among the candidates in terms of focusing on the product and its benefit which
is related with the affective judgement and special skills of the manager.
Developing customer relationship: It is considered as the significant aspect of company
in terms of developing the prominent income for the future purpose and becoming the
representative who can use the prominent selling skill to conquer the strong relationship with the
customers (Schrock and et. al., 2018). For this the representative of company need to contact
with their customers in terms of maintaining healthy relationships with their potential customers.
Benefits of selling through:
Selling through is considered as the most beneficial aspect of company considering their
customers and effective commodity. Moreover, if Ford motor is willing to target their customers
then they can offer the Deluxe on the priority basis with their suppliers and also sell them
immediately. It is useful in terms of developing prominent services which is quite easy to reach
to the potential customers by extending the geographical area of company. For this company
distributes its several products considering the different channels and also undertake prominent
obligations for selling products it is depend on the sales team and for this company need to
provide them effective training (Bolander and et. al., 2017). Furthermore, the sales manager of
company needs to deal with their potential clients undertaking their requirements and also
observe the behaviour and personality of their customers. after that they need to negotiate with
them considering the best possible way.
M2 Critically measure the execution of various kind of sales structures using specific
organisational examples
It is identified that the prominent sales structure is useful and executed within an
organisation as these are helpful in terms of eliminating stress and confusion from the mind set
of employees and company as well. In relation with Ford motor company they can opt
geographical structure which is useful for them in terms of making efforts towards their
8

Geographic area. Along with this company prominently follow the formal structure and terms of
making discipline within the organisation considering the managers and employees. As this type
of structure prominently relies on the size operation and function of company.
TASK 2
P4 Key generalisation and method for successful selling and how they bring to developing and
managing customer relationships
Key principles depict the prominent rules norms values towards the desirable outcome for
the individual group and community which is useful in identifying the prominent action.
Effective principles are important regarding the objectives and policies. The prominent principles
of selling are mentioned as below that contrast the type of customised and effective process for
each.
Basic principles of selling:
Selling is all about relationship: Within the business environment developing healthy
relation is important in terms of selling products to their customers. As polite nature and healthy
relation leads to impact the sales and mind set of customers. It is identified that there is a huge
competition in market in which an organisation needs to develop healthy customer base by
developing effective relationship with them. In terms of maintaining healthy relationship Ford
motor need to identify the requirements develop report and represent the prominent interest of
customers while Getting their trust with the help of their values. Company tends to offer their
best products and services to their customers within the stipulated period of time as it is useful in
terms of managing customer relationship in an effective way.
Sale is not about product, but their problem: For every organisation sale is all about
enhancing the image of company with the help of their prominent products and services. It is
required for company to keep the requirements on the priority basis in terms of summarising the
value considering the services of company. In terms of four motor it is important for the effective
occurrence regarding the principles and sales that include various forms considering the demand
and determine the reason behind the purchase (Singh and et. al., 2019). It leads to impact the
decision of customers and Company and undertaken as the prominent point to sell their product
regarding defective portion and justify on the grounds of values features and benefits.
Prospective company need to resolve various issues considering the products and services which
9

they offer to their customers and also helps in developing and managing healthy customer
relationship.
Price and value go hand in hand: The products that are offered by company leads to
develop competition within the market that can make drastic changes within the price factor. The
price that is provided by company needs to define the prominent services and also offer to their
significant buyers. Moreover, if purchaser think that the product which is offered by company is
expensive then they would not create value for it. For example, if a salesman get stick on the
price factor then it leads to result the failure of the selling process because customer think that
the price factor is not relevant for them and also feel it is quite expensive.
Techniques used in selling:
Finding the value: It is important to identify the overlapping among the offerings of the
company and its competitor. There are around 70% of overlapping which is confessed by the
B2B sales person. Along with this it is also identified that Ford motor can focus on the parity
area by this they can focus on their customers and competitors. For this value wedge is
considered as the innovative factor for the company by which they can defend their customers
and offers something great considering their requirements by developing healthy relationship
with them (Anderson and et. al., 2020). It is effective in any form including physical or
intangible as for them design matters a lot in terms of being recognised.
Making the customer as a Hero: Every organisation has a leader and without them it is
not possible to accomplish the desired outcomes. For this client is considered as the important
aspect who leads to save the company as it is not the only responsibility of salesman. In regard of
this the role of company is to help their customers in terms of transforming the world and
offering them better products by this they can get improved and endured growth and success.
M3 Critically examine the utilization of prosperous selling generalisation and method in
application to particular organisational examples
It is identified that effective use of principles considering their selling is important as it
helps in developing effective gross sales regarding the simple implementation. By this customer
also make sure that company need to target their customers with the help of promotional
campaigns. But due to this sometimes customers complain considering the dealing in services
that put negative impact on the image of company. Moreover, the prominent techniques are
10

helpful for company as it is helps in gaining attention of potential customers and also useful in
maintaining and managing the prominent activities among employees.
P5 Explain the value of processing sales scheme that yield advanced profitability and
incorporated account administration within sales structures
By undertaking the existing business situation, it is required for the corporate company to
help and achieve better competitive benefits. By this they can also make sure their future
profitability and in terms of food motor we can develop their products with the help of effective
sales scheme that leads to develop plants which is useful to consider the position of the company
and its brand. Along with this considering the prospering sales policies are effective for their
sales manager in terms of performing their work in an effective way. Sale scheme depict the
existing period that leads to spend the future commodities activities and terms of targeting the
desired outcome (Dugan and et. al., 2020). Besides this company to satisfy their buyers regarding
the preferences and wants which is useful in terms of reaching towards the goals and objectives it
is also required for the Ford motor to organize prominent market research by which they can
easily identify their potential buyers considering the needs and requirements. It is also helpful in
order to identify the major factors that impact the performance and position for the future time
period.
Importance of sales strategies for Ford Motor company:
Ford motor has emerging market in terms of targeting their customers and also acquired
distinctive position across the world by offering luxuries products and Quality Services. in regard
of this company tends to plan for the sales strategy and plays an important role for it. For this
there are various importance of sales strategy towards the company are mentioned as under:
Increasing sales and profitability: The basic advantage of sales planning is to improve
and maintain the profitability and sales within the stipulated period of time. Over the sales plan
tends to formulate on the grounds of achieving higher profitability. There are several factors
including the location elimination of prominent expenses and financial planning that can be
achieved considering the prominent targets in terms of enhancing sales (Gallino, Moreno and
Stamatopoulos, 2017). Along with this all the elements are involved within the sales planning
and for this that active result is to enhance the annual turnover of the company.
Understand the target customers: One of the biggest significances for the sales strategy
which is useful for Ford motor is to know about their customers including their liking and
11

disliking. For this company need to make things clear regarding their service by which they can
supply their customers effective things and for this they are able to concentrate on the prominent
resources and sales of market.
Higher customer awareness: Sales strategy is important is it useful in generating
prominent awareness among the customers considering the trendy production services it is
offered by company. It is also helpful in terms of developing healthy relations with customers
regarding their belongingness as by this they will be able to purchase innovative products and
services on the grounds of company. In terms of this food motor need to enhance its customer
awareness by offering them innovative products and services.
Competitive advantage: It is considered as the prominent element of sales strategy
regarding the competitive advantage as in this people have lot of options considering the
products by which they are capable to describe that why people need to choose Ford motor and
also represent their liability by comparing with their competitors (Gammoh and et. al., 2018).
Therefore, while making effective sales they need to start the prominent thing for the company
and take into consideration the competitive advantage considering the perspective of their
competitors.
By considering the above discussion it is identified that sales planning is beneficial for
Ford motor in terms of creating and reframing their sales regarding their prominent survival
within the competitive market. It is helpful for the company in order to acquire prominent growth
and also enhance share in the target market area. Sales planning is useful in order to enhance the
ability of company by competing with their outside competition considering the effective future
strategies.
M4 Measure how core finance principles and prospering portfolio administration can lead to
accumulated profitability and a competitor bound
There are several financial principles that are needed in terms of arranging the business
policies and strategies. Moreover, the financial principles tend to opt several business entities so
that it is helpful for them to resolving the prominent problems and issues within an organisation
and also enhance their annual turnover. Along with this there are several financial strategies
including save and invest eliminate the risk factor protect the financial losses and many more
that helps in increasing competitive advantage and profitability for company (Gotoh and
Wakako, 2018). It is also undertaken as the strong financial strategy by which the sale is
12

important for the production services in terms of target in the market area to the customers at the
prominent rate factor.
D2 Critically assess and form recommendations on how sales construction and formulation can
better financial property
Considering this there are several sale structures for company including the Geographic
market and product based it is useful for the company considering its financial viability in an
effective way. Moreover, the cell structure is also helpful in order to improve the income and
profitability of sales that enhance the capital factor of company within the stipulated period of
time (Sharma and Syam, 2018). It is also recommended that cell structure and prominent
approaches should focus considering the profitable factor as it leads to enhance the income and
financial viability.
CONCLUSION
By considering the above discussion, it is identified that sales management is the procedure
that tends to develop effective sales force considering the coordination and execution of sales
tools to permit business to prominently achieve the sales objectives. Furthermore, sales
management plays an essential role for company which is useful in achieving several sales target
within the complex situation. Undertaking the particular product, it is identified that report is
based on the Ford Motor Company that tends to offer prominent products to their potential
customers regarding the effective products and services. For this, it is also examined that
effective sales structure for the products of Ford Motor become stable for the number of
investors towards launch for the new product.
13

REFERENCES
Books and Journals
Anderson, R.E and et. al., 2020. Provenance, evolution, and transition of personal selling and
sales management to strategic marketing channel management. Journal of Marketing
Channels, 26(1), pp.28-42.
Bolander, W and et. al., 2017. Time, change, and longitudinally emergent conditions:
understanding and applying longitudinal growth modeling in sales research. Journal of
Personal Selling & Sales Management, 37(2), pp.153-159.
Chapman, J., Schetzsle, S. and Wahlers, R., 2016. An innovative, experiential-learning project
for sales management and professional selling students. Marketing Education
Review, 26(1), pp.45-50.
Cummins, S., Peltier, J.W. and Dixon, A., 2016. Omni-channel research framework in the
context of personal selling and sales management. Journal of Research in Interactive
Marketing.
Dugan, R and et. al., 2020. Sales management, education, and scholarship across cultures: early
findings from a global study and an agenda for future research. Journal of Personal
Selling & Sales Management, 40(3), pp.198-212.
Flaherty, K.E and et. al., 2018. Sales scholarship: honoring the past and defining the future (Key
takeaways from the 2018 American Marketing Association Faculty Consortium: New
Horizons in Selling and Sales Management). Journal of Personal Selling & Sales
Management, 38(4), pp.413-421.
Gallino, S., Moreno, A. and Stamatopoulos, I., 2017. Channel integration, sales dispersion, and
inventory management. Management Science, 63(9), pp.2813-2831.
Gammoh, B.S and et. al., 2018. The role of salesperson brand selling confidence in enhancing
important sales management outcomes: a social identity approach. Journal of Business
& Industrial Marketing.
Gotoh, H. and Wakako, T., Panasonic Intellectual Property Management Co Ltd, 2018. Sales
management device, sales management system, and sales management method. U.S.
Patent Application 15/554,102.
Guesalaga, R., 2016. The use of social media in sales: Individual and organizational antecedents,
and the role of customer engagement in social media. Industrial Marketing
Management, 54, pp.71-79.
Hase, S. and Busch, C., 2018. Sales management. In The Quintessence of Sales (pp. 77-122).
Springer, Cham.
Horak, S. and Nihalani, K., 2016. Social networks, vertical core competencies and sales
management in Korea. management Decision.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Malek, S.L., Sarin, S. and Jaworski, B.J., 2018. Sales management control systems: review,
synthesis, and directions for future exploration. Journal of Personal Selling & Sales
Management, 38(1), pp.30-55.
Pyanikova, E.A., Kovaleva, A.E. and Zaikina, M.A., 2018. Sales Management Mechanism and
Methodologies for Solving the Problems of Special-Purpose Product Management and
Sales. In Emerging Issues in the Global Economy (pp. 333-340). Springer, Cham.
14

Schrock, W.A and et. al., 2018. On the nature of international sales and sales management
research: a social network–analytic perspective. Journal of Personal Selling & Sales
Management, 38(1), pp.56-77.
Sharma, A. and Syam, N., 2018. Sales and customer development: An agenda for
inquiry. Industrial Marketing Management, 69, pp.133-134.
Sharma, A., 2016. What personal selling and sales management recommendations from
developed markets are relevant in emerging markets?. Journal of Personal Selling &
Sales Management, 36(2), pp.89-104.
Singh, J 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.
Syam, N. and Sharma, A., 2018. Waiting for a sales renaissance in the fourth industrial
revolution: Machine learning and artificial intelligence in sales research and
practice. Industrial Marketing Management, 69, pp.135-146.
15