Sales Management Strategies at BMW: A Comprehensive Analysis

Verified

Added on 2024/06/28

AI Summary

This report examines the major principles and successful selling strategies employed by BMW, a leading multinational automobile manufacturer. It delves into the importance of communication skills, product knowledge, relationship building, and interpersonal skills in the context of premium car sales. The report also analyzes the significance of developing sales strategies to enhance customer relationships, optimize return on investment, and achieve sustainable growth.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.

Topic
Name of the student
Name of the University
Author’s Note

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.

1
Table of Contents
Introduction................................................................................................................................ 2
About the organisation............................................................................................................... 2
Major principles and successful selling strategies.....................................................................3
Analysis of the principles...........................................................................................................6
Explanation of the importance of developing sales strategies...................................................7
Conclusion..................................................................................................................................8
Reference list:.............................................................................................................................9

2
Task 2
Introduction
A business organisation runs on a profit motive, it is the profit that allows the
entrepreneur to run the businesses, increase its value as well as helps in increasing the wealth
of the entrepreneur. In this situation sales become the major aspect of a business organisation,
the products and services that the company provides the customers’ needs to sell (Ingram et
al. 2015). The marketing and sales department of the organisation operates closely as their
objectives are closely driven by the sales rate and trends of the business. Therefore, the
subject of sales management is researched and there are a number of concepts and models
made on the basis of the practical application of sales techniques. The sales team of an
organisation strategizes, trains and develops their representatives in the way that is aligned
with the objective of the business, the mission of the business and also the product or service
that is being sold (Powers et al. 2014).In this report the focus is going to be upon the
multinational automobile organisation BMW.
About the organisation
The Bayerische Motorenwerke or the BMW group is a German multinational
company that operates in the automobile industry. The company is engaged in the
manufacturer and retail of automobiles and parts. BMW was established in 1916, as an effect
of an amalgamation of 3 companies. Regarded as the biggest automobile company globally,
BMW is now under Harald Kruger and the major focus of the company is to bring
sustainability in automobile segment (Bmwgroup.com 2019). Today the company has around
30 production units which are located in 14 countries. The companies deals in the philosophy
that a sustainable automobile future will be created which will help to compete in future. The

3
major focus of the company is on developing safety regulations and designing luxurious cars
for the customers (Bmwgroup.com 2019).
The product and service mix of the company include leading manufacturing of
premium automobiles and motorcycles, and provider of premium financial and mobility
services. The mission and vision statement of the company are aligned with the product range
of the company. The mission of BMW is to make overall global development in the field of
automobiles. Thus the company has focused on designing world class cars with safety
regulations. The vision of the organisation is to get long term profits by developing
technologies, maintaining cultural perspectives and also maintaining structural facilities. The
statement considers long term goals of the company (Bmwgroup.com 2019). As an
automobile manufacturing company, the company is focused on innovation and sustainability
in their design. The sales figure of the company in the last financial year is 2,490,664 which
includes (BMW, MINI and Rolls-Royce Motor Cars). Staying aligned with the industry
trends the company is focused on development of options which offers customers with
personalised options, focusing on the requirements of the demand in electronic vehicles
Major principles and successful selling strategies
Sales department can be sub divided in three segments sales operation, sales analysis
and sales strategy. There is a number of specifications, engineering aspects and design
specialities and other elements that are essential in the car or a motorcycle. Hence the sales
techniques and principles of such products should focus on providing the customers with
information aligned with their interest(Powers et al. 2014). Following are some of the key
principles of successful selling of an automobile or a motorcycle.
Communication skill: it is essential for a sales representative to have good communication
skill above all. Sales in the automobile industry is about communicating what is customers

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.

4
needs are and what are the benefits that the customers will get by purchasing the particular
car. Communication is the process of exchange of information and in a sales pitch that is
given by a representative is a form of formal communication(Punwatkarand Varghese 2014).
However, this is a two-way process, communication helps in determining what the consumer
is looking for and how that can be provided by the company with the help of the car. Hence
it is important to develop basic communication skills in order to ensure that a valuable
relation is established in between the organisation and the customer. BMW group is a
premium brand when it comes to its products hence the customers of BMW are willing to
spend considerable amount of money on the product; therefore, it is important to make them
feel welcome and connected to the company(Punwatkarand Varghese 2014).
Knowledge about the product: deriving from the first principle of communication is the
principle of having the right information. It is essential to have knowledge about the products
and services in order to explain the customers how their problems or their needs can be
fulfilled with the application of the product. In this case, it is a car or a motorcycle, it is very
important for the sales representatives to study and gather information about the product its
engineering, its design as well as its positives and negative features(Punwatkarand Varghese
2014). This also helps the company to be transparent among the customers regarding the
products and its features. It also helps the representatives to be attentive and answer the
questions that the customers might have even the ones that are very technical. However, it is
also important that the representatives do not overburden the customers with information,
which are too technical and are more figurative in an oral communication, there are other
medium to ensure that the customers get a full knowledge about the product. For example, a
brochure with explained and detailed information (Punwatkarand Varghese 2014).
Developing a strong and valuable relationship: for a business-like premium cars and
automobiles it is important for the company to develop a bond with the customers so that they

5
can understand their needs and requirements and furthermore convince them to become brand
loyal. On the other hand, sales of premium cars and automobiles also depend upon the
relationship that the company has successfully able to establish(Cruceru and Moise2014).
The ability of the representative to establish and build a valuable relationship successfully
will be directly responsible for this ability to provide sale for the company(Cruceru and
Moise2014).
Focus on the development of interpersonal skills: it is important for the representative to
interact with the customers in order to communicate, provide information and knowledge as
well as develop a relationship. It is not only manners and the body language that is important
in this case, the customers must feel welcome and they must have an positive impact as soon
as they walk in, however it is important for the representatives to know how to interact in the
correct way, in sales the features of the car is not what is to be sold, rather it is the benefits
that the customers would get with the help of the features of the car. It is important for the
representatives to have warm approach towards the customers, this is the first step in building
a valuable relationship as well (Jolles2017).
Understand the needs and requirements of the customers:this is a very important step in the
sale of a premium car or a motorcycle. The representatives should ask the rights questions in
order to understand the exact need of the customer, sometimes the customers look for a
particular car, however, their requirement may be aligned with some other model that they
are not even considering, this is where the importance of this principle arises in the
automobile sale (Ulagaand Loveland 2014).
Setting realistic targets: sales representatives or the people who work in this sector has been
often found to be complaining about the targets that they have to fulfil at the end of a
stipulated period of time. Here it is essential for an organisation like BMW to ensure that the
target is realistic and not something that would burden the person who is the sales

6
representatives, in such cases in order to reach the target the person can push and can come
across as rude or annoying to the customers, hence it is important for the company to develop
a sales target that is realistic and in the process should not also allow the sales representatives
to follow the protocol of sales and the pitch as well as be creative and interactive in the
process(Ulagaand Loveland 2014).
Analysis of the principles
All the above principles that are discussed are not independent, they are all connected
with one another and are focused upon the development of the strong customer relationship.
It is mentioned to be one of the principles of the sales, however, sales for an organisation like
BMW is based on customer relationships(Ulagaand Loveland 2014).
Communication and interpersonal skills of the representatives are the first line of
contact with the customers; hence it is important for the companies to hire people for the
position who has communication and interpersonal skills. A relationship is developed on the
basis of communication, the person will choose to buy a product of the company if they are
being advised and supervised by someone that they can trust. In the process of
communication, the companies have a number of protocols that the representatives have to
follow (Gabler et al. 2014). However, they should have the liberty to be interactive in order to
engage the customer, understand their needs and requirements and then talking about the
benefits that the customers would get from the purchase of the car and how would it fulfil
their requirement in the process. Development of interpersonal skills will help in the process
of development a comfort zone, which would lead to a trustworthy relationship. It is essential
that the customers do not feel that they are being pushed for the sale, rather it should be more
like an advice (Cruceru and Moise2014).

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser

7
Having the knowledge about the products is essential for the representatives in order
to be ready for any kind of queries and doubts, it will also help the person to be updated with
what kind of changes in technology does a model offer and how is it in trend. They can also
explain what the value of the car is in reality. Most of the times customers are apprehensive
of their choice and when their choice would result in a reduction of a massive wealth, by
developing a valuable relation the customers develop trust and slowly try to listen to what the
representative has to say about the product and align what the value of the money that is
being spend worth the product. The process of developing a relationship begins with building
rapport, recognising the requirements and the needs, understanding the problem that can be
solved with the product,in the process the representative must show genuine interest in which
would help in building trust and adding value(Gabler et al. 2014).
Explanation of the importance of developing sales strategies
Selling strategies are important for the company because it helps the people to focus
better and be aware of the trends in the market. The selling tactics that are developed by the
organisation are in correspondence with the environment condition of the business, thus it
would help the company to understand the customers better and develop a better sales pitch.
Hence it can be said that a strategy allows the company to address the requirement of the
customers at every stage. ROI and other responsibilities of the company are fulfilled with the
help of sale of the product this it is essential to develop a strategy(Gabler et al. 2014).
Account management helps in the development and maintenance of the relationship
with the customers. This helps in development of key strategic accounts which is essential in
sales structure of any sales strategy because selling to existing customers are more profitable
and foreseeable than trying to get new business from new customers (Bolander, Bonneyand
Satornino 2014).

8
Conclusion
It can be concluded that Return on investment is the major reasons for which the
company must develop a strategy, a company like BMW has shareholders and a number of
other stakeholders who are dependent on the company hence in order to get the return on
investment company must devise a plan which would increase the sales trend.

9
Reference list:
Bmwgroup.com., 2019. Company. [online] Bmwgroup.com. Available at:
https://www.bmwgroup.com/company [Accessed 12 Jun. 2019].
Bolander, W., Bonney, L. and Satornino, C., 2014. Sales education efficacy: Examining the
relationship between sales education and sales success. Journal of Marketing
Education, 36(2), pp.169-181.
Cruceru, A.F. and Moise, D., 2014. Customer relationships through sales forces and
marketing events. Procedia-Social and Behavioral Sciences, 109, pp.155-159.
Gabler, C.B., Nagy, K.R. and Hill, R.P., 2014. Causes and consequences of abusive
supervision in sales management: A tale of two perspectives. Psychology &
Marketing, 31(4), pp.278-293.
Ingram, T.N., LaForge, R.W., Williams, M.R. and Schwepker Jr, C.H., 2015. Sales
management: Analysis and decision making. Routledge.
Jolles, R.L., 2017. How to Run Seminars and Workshops: Presentation Skills for Consultants,
Trainers, Teachers, and Salespeople. John Wiley & Sons.
Powers, T.L., Jennings, J.A.C. and DeCarlo, T.E., 2014. An assessment of needed sales
management skills. Journal of Personal Selling & Sales Management, 34(3), pp.206-222.
Punwatkar, S. and Varghese, M., 2014. Impact of competencies on sales performance:
empirical evidence on salesmen at a furniture mart in central India. Pacific Business Review
International, 6(12), pp.1-7.
Ulaga, W. and Loveland, J.M., 2014. Transitioning from product to service-led growth in
manufacturing firms: Emergent challenges in selecting and managing the industrial sales
force. Industrial Marketing Management, 43(1), pp.113-125.