Sales Management: Principles, Structures, and Selling Practices

This document discusses the principles of sales management, advantages of sales structures, and key selling ideas and practices. It explores how these contribute to the development and management of client relationships. The case of Skoda, an automobile manufacturer, is used as an example to illustrate these concepts. The document also highlights the importance of sales strategies in enhancing profitability and gaining a competitive edge.

Sales Managment

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
P1. Sales Management: Important principles.........................................................................4
M1. In reaction to consumer and company buying behaviour, sales management principles
will differ................................................................................................................................6
TASK 2............................................................................................................................................6
P2. Advantages of Structure of sales......................................................................................6
Benefits of sales structures.....................................................................................................7
P3. Describe the benefits of the notion of 'selling through others.'........................................8
M2. Evaluate the execution of various kinds of sales structures critically............................9
TASK 3............................................................................................................................................9
P4 Examine the key selling ideas and practises, as well as how they contribute to the
development and management of client relationships............................................................9
M3 Evaluate the implementation of effective selling principles and strategies to particular
organisational instances in a critical manner........................................................................11
D1 Create a well-thought-out, thoroughly substantiated critical assessment based on a
thorough knowledge of sales management, structure, and selling tactics in the context of an
organisation..........................................................................................................................11
TASK 4..........................................................................................................................................12
P5 Describe the significance of establishing high-profit sales tactics and implementing
account management into sales structures............................................................................12
The sales cycle......................................................................................................................12
M4 Examine how sound financial concepts and effective portfolio management may result in
higher profits and a competitive advantage..........................................................................13
D2 Analyse and give solutions on how to enhance financial sustainability through sales
structures and techniques......................................................................................................13

CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
Books and Journals...............................................................................................................16

INTRODUCTION
In today's business world, every company strives to boost sales in order to meet its goals and
objectives. Some businesses want to expand their sales, while others need to make money.
However, it can only be done in the long run if the organization's sales efforts are increased. In
order to understand the concept Skoda is taken into consideration (Borowski, 2021). It is an
automobile manufacturer that was established in 1895. The organisation has its headquarters in
Mladá Boleslav, Czech Republic. In order to complete this report there is discussion related to
the principles of sales that help the company in proper planning as well as reporting. It is seen
that there is direct impact of these principles on the consumer and business buying behaviour so
it is also evaluated in this report. There are a number of benefits associated with the structure of
sales so there explain with the help of example. As well as there is explanation related to the
advantages of selling through others in this report. It is important to study about the techniques
that make the selling successful and help to manage customer relation this is explain with the
help of example. In the end of the report there is discussion related to the importance of sales
strategies that enhance the profitability position of the company and help them to gain
competitive edge.
MAIN BODY
TASK 1
P1. Sales Management: Important principles
Sales management is the activity of management that ensures that everything in the organisation
connected to selling products and services is in order. For Skoda, sales management is the
process of a sales team creating and directing all sales activities with the application of sales
strategies (Hedonists, 2020). If a business wants to make money, it must manage its sales
strategy. It encompasses not just the sale of a product, but also services such as hiring, training
and development, and encouraging salespeople. It also focuses on the coordination of sales
department activities with the implementation of sales strategies that produce income for the
company.
Principles of sales management
It is vital to have knowledge and understanding about the principle of sales as it helps to achieve
the goals and objectives effectively. It is seen that the company who follows these principles in

able to achieve success. There are number of advantages of using the principles such as sales
planning, methods of selling as well as sale reporting. The principles in relation to Skoda are
discussed below:
Understand: The first and most essential concept for a sales manager is that they must
understand their products in order to transform them into client pleasure. Skoda's sales manager
is familiar with the business and its competitors' strategies, which helps them in developing a
successful plan that allows them to get a competitive edge in the market (Fitzgerald and et.al.,
2021).
Care: Another significant sales management principle is that sales managers should be
concerned about their employee. It is extremely beneficial to sales managers since their
subordinates provide them with support and inspiration. According to this idea, sales managers
should pay attention to their clients' requirements and desires so that they can be met. It is helpful
as Skoda is able to gain good and innovative ideas by the employees and that helps in proper
planning.
Goal orientation: Skoda’s sales manager must be transparent about his or her aims and
objectives. It is critical that a person concentrate on their objectives and carry out their tasks
properly. They may easily attain their goals and objectives if they maintain their focus. It helps in
working as per the goals and achieving success.
Inspire: It has been determined that Skoda’s sales managers must encourage their sales teams to
achieve organisational goals by inspiring them to do their best. It is important for the sales
manager to motivate his or her team to achieve established goals (Eme, CA, Uwazuruike, and
Ukpai, 2018). It may be accomplished by establishing high standards and instilling trust in their
team members.
The benefits associated are as follows:
 Sales management is beneficial to businesses because it allows them to anticipate future
sales through planning. Sales forecasting is an essential aspect of sales management that
assists companies in anticipating future sales demand.
 A sales budget is another aspect of sales management. With the aid of calculating
expenditures in the sales practise, Skoda may simply build their budget. It is important
for the organisation to have an adequate budget that provides clarity on selling
expenditures.

 Skoda is able to produce a sales report with the aid of sales management, which helps
them evaluate current and future demands. It is beneficial for the organisation as it helps
to enhance the overall sales.
M1. In reaction to consumer and company buying behaviour, sales management principles will
differ.
It is important to understand that while serving the customers and the business the sales
management has to use different principles as both the processes are different. The six methods
that help to attain prosperity of business are discussed below:
 It is important for the business to have proper information at the right time that helps
them to scan about the customer relations and they should focus on the individual
customers.
 Along with that it is duty of business organisation to focus and identify on their target
market that helps them to keep constant attention on their customers that help to enhance
the sales (Ivanov and Dolgui, 2020).
 By keeping track on the current trends the organisation is able to prosper. It helps in
analysis of customer trends and behaviour that help to provide affordable goods to the
customers.
 It is also duty of business organisation to work smoothly and find ideas that will help to
enhance their business and grow it.
 The customers and employees both should be satisfied and provided services according to
their needs this helps them to attain success.
TASK 2
P2. Advantages of Structure of sales
The practise of segmenting a company's sales force in order to create more effective and
efficient sales is known as sales structure (Pellegrin‐Boucher, Le and Gurău', 2018). They split
their whole workforce into specialised units so that they could implement efficient sales tactics.
It is a crucial procedure in which Skoda determines the amount of people who will be part of the
sales team.

Benefits of sales structures
The sales structure plays an important part in the organisation since it provides numerous
benefits, which are listed below:
 It is really beneficial to Skoda since it allows them to reach their goals and grow their
business by increasing sales (Bolandifar, Chen and Zhu, 2021). Increased sales on a
monthly basis assist businesses in expanding their operations in a worldwide market.
 Because it divides all persons in a group, it allows for more effective and efficient
marketing operations. Skoda selling efforts become more successful and efficient as a
result of their usage of a sales structure that clarifies operations.
 It encourages collaborative working environments since it establishes a common goal for
which each team member strives to achieve by working together.
Roles and structure
It is vital to understand the role and structure of the squad as sales team is it will help to
know the reality how the organisation is working.
Role of sales team
 The focus is to enhance the sales of the organisation and to cover the target market in an
effective manner.
 Evaluate the condition of market that helps to analyse and understand the trends that will
help the company to attract the customers and enhance their operations effectively.
 Conducting research related to the customers also helps. As in such a manner the
company's able to analyse the taste and preference of their customers and serve them
effectively.
 It is important to find the ways in which the organisation is able to expand the business
operations. The strategies will help in assisting the company to remove the problems of
customers.
Structure of sales team of Skoda
Skoda uses a process structure in which staff are grouped together in order to increase sales.
They are categorising people based on the stages of their activity (Sud, 2020). Because Skoda is
in the automobile business, they make it a point to ensure that their sales operations are carried
out in a systematic manner so that the company's goals may be met. The structure of the
company directly helps the working and profitability of the company. It is essential for an

organisation to form structure in such a manner that will help them to achieve goals and
objectives effectively.
P3. Describe the benefits of the notion of 'selling through others.'
Customers acquire goods and services from a variety of merchants and distributors using the
notion of selling through others. It is determined that it is the conventional technique for shops to
sell products and services. Retailers obtain products from a variety of distributors or suppliers;
however things can now be sold via alternative ways such as internet sales or direct delivery, as
offered by Skoda. It includes selling through:
Distributors: It is helpful to sell the goods by taking help of distributors. As they enhance
the sales of the company and there are various advantages associated with the same that are
discussed below:
 It helps to quickly sell the goods and services. It is seen that the distributors are known as
for selling the product fast. As they have number of stores at different locations.
 These distributors are able to serve wider customer base. They build up the variety of
market that helps them to get high value information and that is used by them to serve
and satisfy the customers.
 Along with this it is vital to know that these distributors have a good understanding about
the market. They have ability to reach the customers and have maximum impact on them
by sending them the goods and services according to their needs and wants (Singh,
Kumar, and Puri, 2017).
 It is also important to note that these distributors are known as champions in selling. The
main task is to understand the problem that is faced by customers and then solve that was
serving them quality foods that help to build relations with the customers as well as solve
them effectively.
 Another reason is related to the motivation. It is observed that these distributors are
motivated and confident it helps them to sell the products in an effective manner and on a
reasonable amount of profit.
 One another advantages associated with this method is the financial savings. They do not
have to spend money in research and development other improvement of packaging of
the product it helps the company to earn more profits and save money.

 These customers have direct route to market. They have all the resources that are
important to sell the goods and services and enhance sales in the market.
M2. Evaluate the execution of various kinds of sales structures critically.
Business is divided into smaller groups or departments based on their tasks and skills. The
organisation has been categorised based on sales, which is known as the sales structure (Sinha,
and Mukherjee, 2020). It has been determined that all sales structures are required for an
organisation to fulfil its goals and objectives via the use of various activities and operations.
Every organisation has its own set of procedures to follow.
Geographical
It is important to divide the structure of the company as per the geographical area. As it is
vital for them to know the needs and wants of people according to the areas they live in. It is
helpful in enhancing the sales of the organisation and it satisfies the needs and wants of
customers.
Marketing
The marketing department of Skoda is vital and plays prominent role. It is necessary for
them to work effectively by promoting the brand and effectively managing the organisation. The
company is famous for providing quality cars to its customers. This is one of the reasons that the
sakes of the organisation are high. It is seen that USP of the company is “Cars that are
comfortable, Elegant, Spacious, Smooth performer”
Product Sales
It is seen that company takes care of all the products and services they deal in. it is vital for
them to have knowledge of all the products they deal. At the same time they make efforts and
innovate the products offered by them while taking care of quality of the products offered by
them.
TASK 3
P4 Examine the key selling ideas and practises, as well as how they contribute to the
development and management of client relationships.
It is important to note that each and every organisation plans to enhances the sales and earn more
profits. As they want to become successful and create a brand image in the market. For that
purpose the company uses effective ways and principles that help to enhance the sales of the

Skoda. There are a few key principles of successful selling that every company should be aware
of and employ in the marketplace. The essential components that make their sales effective and
allow a firm to generate more profits are the principles of successful selling. Skoda makes it a
point to ensure that its salespeople follow successful selling techniques in order to increase sales
and income. They adhere to the following principles in order to achieve this goal:
 Every company must ensure that selling is not confined to the sale of goods and services,
but also includes the understanding of the importance of building connections. This
implies that a company's client connections should be strengthened.
 Selling items and services is only achievable if an organization has a strategy that is well-
planned. The sales force may be certain that their sales team understands their roles and
obligations because of the planning (Heussler, 2020).
 Selling should be goal-oriented, which implies that a company should constantly carry
out operations with the end objective in mind. During the selling process, Skoda
concentrates on their goals and objectives.
 Selling is not concerned with organisation, but rather with the needs of the consumer. It is
the primary cause for a company's ability to fulfil its aims and objectives.
Customer Relationship: Every company strives to earn the confidence of its customers in order
to boost sales and profits. Similarly, Skoda strives to strengthen relationships with consumers in
order to help them accomplish their goals and objectives. Customer connections are a crucial
aspect of every business that must be considered if it is to achieve its objectives. In order to
maintain the relationship with the customers following principles and techniques will be proven
to be effective for Skoda that are given below:
 An organisation can take help of distributor to increase the variety of target customers in
a new market as they are already familiar with the market. In order to target wide variety
of customers Skoda should focus to have a good relationship with their suppliers all over
the world.
As the Skoda has a plan to deal with their customers with the help of their distributers all over
the world they should have creative distributors which have a great quality to make sales in the
market and maintain a good as well as valuable relationship with the customers for the long run
(Rapp and Beeler, 2021)

 It is the duty of an organisation to preserve the manufactured goods in a proper
storehouse in a strategic manner to provide good and effective product to the customers.
Skoda is an organisation who complete their work in pre-order basis and they should take
a proper care of the delivery of their products as they are of expensive nature and defect
can give a heavy loss to the customers which will further affect the customer relationship.
M3 Evaluate the implementation of effective selling principles and strategies to particular
organisational instances in a critical manner.
Skoda has a greater efficiency to convert their first time customers into their regular customers
which is considered as a best example for having a good selling principles in the organisation.
These principles Skoda to successful sales management in the organisation and position their
products at talk in the minds of their customers. Several comfortable features and test drive
options to their customers help the company as a promotional tool to attract customers towards
their company. Apart from this the services offered by them to their customers are so attractive
that they help tab to have more customers towards their brand.
D1 Create a well-thought-out, thoroughly substantiated critical assessment based on a thorough
knowledge of sales management, structure, and selling tactics in the context of an
organisation.
Sales management is essential for an organisation to manage and plan several sales
activities and techniques in the organisation and is the responsibility of top level management to
formulate these processes of suitable change management. Evaluation of the market strategy and
sales operation are all the part of sales management and the process starts from the planning of
sales and includes recruitment of the sales staff reporting and many more (Vladimirovich, 2020).
An effective cell structure and the organisation to promote their products in effective manner. If
the sales representatives of a company are experienced and knowledgeable to make effective
sales then it will provide a great success to the organisation. In case of Skoda Company they
have a great sales team which are formulated with the proper steel structure helping them to
apply appropriate strategy to gain competitive advantage in the market. The strategy sales
management and several techniques structure used by an organisation for their sales help them to
provide proper management and achieve competitive advantage in this competitive world.
Tehsils management of helps to understand the value of a property structure and techniques used

by an organisation for selling as these techniques and structure helps Skoda to made effective
sales in the market and gain large profits.
TASK 4
P5 Describe the significance of establishing high-profit sales tactics and implementing account
management into sales structures.
A proper sales structure strategy and high profitability in the organisation is a dream for
every company. In order to achieve good sales and use profitability in the organisation it is
essential for them to increase their individual sales. This can be done most useful technique for
the organisation as most investment will provide more individual cells to the organisation and the
organisation will be able to attract potential buyers towards them frequently. For this purpose the
organisation is required to use several tools and techniques which are popular in accordance with
the current trends. An example of a scooter the company knows that the customer has following
the trend of test drive and they also offer this service to their customers to achieve more and
more sales towards them (Vaid, Ahearne, and Krause, 2020). Apart from that the exporter
company offers good services to their customers which helps their individual sales
representatives to attract more frequent buyers towards their products. This development of sales
strategy helps the organisation to gain high profitability and proper management in their
structures. Hence, it can be known that a proper sales strategy should be developed by each and
every company as it is very essential to increase their sales and profitability.
The sales cycle
Sales are a continuous cycle that encompasses all actions that impact the sale of products and
services, and an organisation can never do sales for a single period. It is important for businesses
to ensure that their sales cycles are successful and efficient. All of the activities included in the
selling process must be precise. Every member of the Skoda sales team must ensure that their
actions are carried out in accordance with the sales forecast. The need to ensure that the sales
cycle never stops because if it does, it indicates that the organisation is having difficulties. The
sales cycle should continue till the company survives. Skoda wants to be able to stay in the
market for a long time, if not indefinitely. They must employ sales management to continue the
sales cycle for this objective. The acquisition of raw materials, conversion into completed items,
and sale to end consumers are all part of the sales cycle. This process or cycle should be

continued until the organization's operations are completed. It is important for an organisation to
integrate marketing strategies that assist them in grasping market possibilities in order to create
an efficient sales process or cycle.
M4 Examine how sound financial concepts and effective portfolio management may result in
higher profits and a competitive advantage.
Core finance principles which focus on the government investors and managers agencies of the
organisation in order to collect financial information of for the organisation to enhance their
returns. These principles will help as coder you have successful portfolio management to
increase profitability and competitive advantage in the market (Arciniega, Servitje, and Woehr,
2021). Some of these principles are given below:
Diversify: Diversification is a process which minimise the risk of business by providing diverse
options to invest. Instead of providing investment in one field an organisation consider all fields
as a good choice to be invest their financial resources. This principle can help the manager to
enhance their financial resources.
Averaging Plan: Long term investment should be made with an average manner so that market
fluctuations could not affect the invested amount during the good as well as bad markets.
Invest for the long term: To grow the wealth potentially the time and return has a powerful role
to be played as good benefits can be attained with the long term investments.
Focus on what is in your control: An investor must be able to maintain portfolio control in
accordance with his or her strategy-based plan (Jain, and Tan, 2021).
Rebalance regularly: Investors can use an active revision policy to rebalance their portfolios on a
regular basis by purchasing at cheap prices and selling at high and rearranging their portfolio
back to its original investment composition.
D2 Analyse and give solutions on how to enhance financial sustainability through sales
structures and techniques.
Sales structure is very essential for financial viability in an organisation because it has a
great impact on the revenue generation of the organisation. In order to boost their sins several
companies go to the restructuring process of sales and provide them a long-term investment and

the organisation. It is a proactive activity of the sales department which helps them to enhance
the performance of their schools and recommend a good management of sales.
Main benefit of restructuring process is to increase efficiency of sales team in the organisation
and the management will be able to assign the right sales place to the right person in the
organisation. Right place right person will help the sales executive to identify the target market
easily and perform their duties and effective manner. Just require an effective communication
structure activities so that the sales force can be titled smoothly about the new organisation
structure with an effective flow of information (Nurhayani, 2020).
In order to choose effective organisational structure the company should encourage and consider
the nature of business of the company so that they can have a proper discussion about their
business scenario. In the complete Skoda which is a large company for vehicles they should have
a good organisation structure so that they can achieve their business objectives for stop this
organisation structure will help them to enhance their internal communication by handling
customer requirements good business decisions and several other management activities to be
performed and effective manner. Some of the benefits of an effective sales structure in the
organisation which can provide a good financial viability to the organisation are:
 Defining employee’s responsibility
 Forming a agenda for replacement options in the sales department
 Provides answerability
 Ascertain sales talent
 Scope for talent development (Peterson, and Dover, 2021)
CONCLUSION
The above discussion helps to analyse that change management is key to success for any
organisation and the market. Skoda in order to increase their sales also use sales management in
an organisation which helps them to provide benefits related to the structure of sales. The
important principles of sales management parents Skoda to improve their sales when extend and
provide several benefits of your structures to them. The company also uses the concept of selling
through others which is an advantageous step or concept for the organisation which helps them
to enhance their sales. This successful selling techniques and principles help the organisation to
maintain their customer relationship and have loyal customers of the company. The company
also has a great and sales structure.

REFERENCES
Books and Journals