Sales Development: Strategies, Recruitment, and Motivation at Ikea

This report provides a comprehensive analysis of sales development strategies at Ikea, focusing on the roles of sales teams within the marketing strategy, the development of sales strategies in line with corporate objectives, and the importance of recruitment and selection procedures. It also evaluates the role of motivation, remuneration, and training in sales management, explaining how sales management organizes sales activity and controls sales output, including the use of databases in effective sales management. The report examines Ikea's business objectives, competitive analysis, and change management strategies, highlighting the significance of human resources and efficient recruitment practices. Furthermore, it discusses the impact of motivation, remuneration, and training on sales performance, and details how sales management plans, executes, and monitors sales programs to achieve organizational objectives. The report emphasizes the importance of adapting to changing economic trends and interconnectedness with other departments, providing valuable insights into Ikea's sales management practices.

Sales Development

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Analyzing the role of sales teams within marketing strategy.............................................1
2. Explaining development of sales strategies in line with corporate objectives...................2
3. Explaining importance of recruitment and selection procedures.......................................3
4. Evaluating the role of motivation, remuneration and training in sales management.........4
5. Explaining how sales management organizes sales activity and control sales output.......5
6. Use of database in effective sales management.................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Ikea is one of the most prominent multinational groups providing wide range of home
furnishing products in UK market. It is the world's largest furniture retailer that designs and sells
ready-to-assemble furniture, appliances and home accessories. Company considers its sales
development activities with great importance to maximize its profit. This concept is becoming
very popular even vital in today's competitive market. It is considered as an art that specializes in
introducing products in the market and attracting potential customers to purchase it (Schulze-
Bonhage and et.al., 2010). Sales managers work hand-in-hand to increase the ratio of deals and
operations for the corporation. Earlier, it was also termed as business development team, lead
development representatives and sales associates plan.
1. Analyzing the role of sales teams within marketing strategy
Ikea is well-known for its modern architectural designs of different types of furniture and
appliances. Products are manufactured with vivacious interior designing along with prospective
eco-friendly materials. It is popular among UK clients and big business houses because the sales
mangers give proper attention to cost control, corporate attributes, operational details and
continuous sales development of the commodities. Sales management team is responsible for
setting sales goals and representatives quotas (Chen, 2010). They put in many efforts to achieve
the designed targets. Stated strategies are made to offer such pricing and distribution policies that
favor both the customer’s interest and company’s profit. Managerial teams make use of customer
surveys, historical data and industrial reports to develop and work upon a project. The three main
responsibilities of sales team are given as below:
1) To prepare sales plan for the company.
2) Make use of optimum resources to assist in implementing plan successfully.
3) Evaluating and monitoring the sales plan executed in order to make recommendations
according to current and future requirements.
As mentioned above, primarily sales team engrosses itself in setting and establishing
improvement targets and sales goals for a specific period (Sales and marketing: An introduction
to sales and marketing, 2011). Through sales organization strategies and operational planning
principle, it formulates key areas to be covered during planning. Direct and indirect channels of
information gathering help to understand the market scenario for Ikea. They study their targeted
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customer’s interest related to choice and preferences for product selection and value
propositions.
Now, the business development team of Ikea also plays crucial role in searching and
acquiring optimum resources that will be used in executing sales plan. It makes sure that the
sources and strategies executed comprise of basis for maximizing company's profit.
Here, finance plays an important role and sales team takes care of the fact that it has regular
interaction with this department. The transactions made to promote and advertise the home
furnishings products are accounted and managed on daily basis.
Another important role acted by sales team is to monitor sales process and their models
executed. The policies are dealt in the market to attract numerous customers for home appliances
and accessories. Sales team will focus on diagnosing the encountered problem, and then they
will offer corrective actions and coaching to them (Cummings and Worley, 2014.).
2. Explaining development of sales strategies in line with corporate objectives
There are mainly three types of business objectives of Ikea. They are namely; corporate,
functional and unit objective. Corporate objectives are related to the business as a whole. The top
management focuses on setting of detailed aim for its corporate needs. Sales team of
management also develops such strategies in line of achieving corporate goals of the company.
Some of them are discussed as below:
Company's profitability
Like other corporations, Ikea also follows the principle of profit maximization as its first
corporate objective. Profit helps to recover the cost incurred in production of commodities and
provide more investment opportunities to expand the business. Sales strategies ensure that the
produced furniture and appliances will be promoted and distributed in such targeted areas that
the company is benefited by easy returns.
Customer’s needs and satisfaction
Targeted group of customer are essential for the company. Keeping them happy by
satisfying their needs and demands is the key objective of the company. Ikea produces wider
range of products and services for the UK market (DeVellis, 2012). The sales department focuses
on retaining its clients and consumers to attain greater revenue along with customer satisfaction.
Growth perspective
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Corporation is always interested to grow and prosper in every aspect of business making
fewer compromises. In the initial stage, Ikea faced many challenges to establish itself in the
market. But later on, with the help of strong strategic plans, company's goodwill has poured both
monetary and growth benefits to it. Growth is an essential parameter for development of this
home furnishing company.
Competitive analysis
John Lewis Argos, Ashley furniture, ‘Rooms to Go’, etc are some crucial competitors of
Ikea. Sales executives make a comprehensive study of competitor’s sales and marketing
techniques. It helps them to understand where there products ranks in the market and what new
marketing and sales techniques are adopted by its rivalries.
Change management
Another corporate objective of Ikea is to form a flexible and dynamic environment in its
organizational structure. With changing trends and patterns in the market sales team,
organization is planning and formulating various strategies to achieve the corporate objectives.
Main objective of the sales executives is to create a dynamic institution which meets with the
upcoming challenges in the industry on regular basis (Barros and et.al., 2011).
3. Explaining importance of recruitment and selection procedures
Recruitment is a crucial activity that diversifies and explores emerging talents for the
company. They can be advantageous for the firm as it helps in manufacturing;
distributing, promoting and monitoring the services availed to the clients. It attracts
skilled and qualified candidates for the selection process of human resources.
While selection process has its own value for the organization. Through this process,
desired candidates are interviewed and evaluated for a specific post in Ikea. It is a
procedure of matching organizational requirements with the skills and qualifications of
every individual (Krishnamurti, 2010).
The recruitment and selection process are crucial for Ikea to source candidates, review
and tackle them, evaluate them by through various tests and interviews and finally select
them to work. Companies hire those qualified candidates that are adaptable,
knowledgeable, loyal and provide good output to the organization.
Human resources are essential factor of production for the success of this largest furniture
retailer. Employees should be dedicated and determined towards their respective field.
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The HR mangers consider this aspect of every candidate while recruiting and
interviewing them (Sales, Traver and García, 2011). They evaluate the strengths and
weaknesses of qualifying representatives so that they already get an idea about each ones
personality traits.
On the other hand, both these process incur expenditures that are crucial to undertake this
business activity. If a manager selects an unskilled or not so compatible candidate in
respect of the given post then his mistakes will hinder productivity of the firm. Along
with this it will desert the capital invested in recruiting him. Higher and good
productivity is the main objective of Ikea.
Proper recruitment and selection practices often result in low employee turnover.
Efficient and well equipped employee’s needs to be selected and retained by every
company as like Ikea. Selectors pay close attention to previous job span of the candidate
and scrutinize carefully references of an individual.
Yet another benefit of an efficient recruitment and selection committee of the enterprise
is they have good knowledge about legal issues related to employees of the company
(Ernst, Hoyer, and Rübsaamen, 2010). There is monitoring and check over discriminatory
hiring practices that hinder chances and efforts of qualified people.
4. Evaluating the role of motivation, remuneration and training in sales management
Role of motivation in sales management
Modern world management applies various motivational theories while performing
various business activities. Motivation enables human resources of sales department to make
productive use of produced products. They focus on preparing such sales and marketing
techniques that will attract the targeted customers towards company's various products. It
improves the performance level of individual as their ability and willingness to work increases
by motivational techniques. Some employees become demotivated or negative in attitude while
performing their roles and responsibilities (Gluck, 2016.). Motivation helps to transform the
negative attitude of the sales representatives into positive one. Another merit of this approach is
it helps to reduce the rate of employee turnover and absenteeism among the sales associates.
Motivated workforce sustain for a longer time in the organization.
Role of remuneration in sales management
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Employee remuneration refers to the compensation given to the employees for their work
performance. It built s attraction among the employees to perform tasks effectively and
efficiently. Productivity and quality-services are effected by good salaries I.e, when the sales
managers and his associates are provided good packages it ultimately boosts up their motivation
and dedication to perform the duties (Schwenzer, Hachem and Kee, 2012). The amount and
method of remuneration should be accessed effectively between management and employees of
Ikea. It increases the overall morale of the workforce and inspires them to accomplish the sales
targets within given time. Remuneration increases productivity level of the sales teams as the
sales managers increase existing account orders and opens new accounts of customers.
Role of training in sales management
Sales department is considered as a major root to generate revenue for the organization.
Ikea faces tough competition from its rivalries which demands to prepare such sales strategies
that increases its flow of revenue generation. Training and development of sales representatives
ensures that not much time is wasted in trial and error methods rather appropriate decisions
should be taken by the sales executives. During introduction of new furniture and accessories by
Ikea the sales persons are trained to understand and study its features in detail ( Ingram and et.al.,
2012.). This will result in attractive interaction with potential customers. Soft communication
skills are developed among the employees to showcase Ikea commodities in the best presented
manner. Lastly, training also enhances business values and ethics among the sales
representatives.
5. Explaining how sales management organizes sales activity and control sales output
Sales management refers to planning, executing and monitoring sales programs of the
company. It also involves the process of reciting, training, motivating and retaining skilled
salesperson for the organization. Ikea sales management team develops and operates selling
program in such a manner that it effectively achieves its sales targets along with organizational
objectives. The primary responsibility of sales mangers is to set goals for the team and plan,
organize, budget these procedures accordingly. When these plans are implemented the
executives evaluate and monitor the outcomes periodically (Bathelt, Kogler and Munro, 2010).
 Changing trends and patterns in the economy effects the sales plans and procedures of the
company. The sales teams then estimates the market potential and then prepares plans of
different segments of Ikea functioning. This branch of management is interconnected
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with other departments of the retail company such as production, marketing and
distribution. Numerous sales forecasting tools and techniques are determined by the sales
representatives of Ikea to attain its objectives. Further, the sales associates prepares
budget for different business activities considering previous years planned records with
respect to present needs of the market. Along with setting up goals and preparing budgets
the sales team of Ikea also focuses on staffing, designing territories and allocating sales
efforts. Plans can be implemented effectively in presence of skilled and dedicated
workforce. Moreover, these sales activities are monitored and evaluated by analyzing
expenses and taking initiatives to formulate long term contracts with the customers.
 As mentioned earlier sales management have the responsibility to monitor and control the
sales output. They keep an eagle eye on demand and supply forces of Ikea products and
services. Though it is considered as the last step of sales management but it has equal
significance in determining sales policies. The sales mangers make use of different sales
and marketing techniques to control the sales output (Baruselli and et.al., 2012.). The
basic principle is followed by executives that products produced should be availed in the
market in such a manner that it generates higher revenue for the mentioned furniture
retail company. Consumer’s purchasing power to buy ready-to-assemble furniture s and
home accessories are studied in detail. This generates an estimate about the current trends
and requirements of the clients. Big business houses and international market are its
potential customers therefore the sales output needs to be in systematic manner and in
bulk.
6. Use of database in effective sales management
With the change in time, technology is one of the key elements that help company in
managing the business operation in effectual manner. In this regard, database is been used by
company in every department especially in sales team so that necessary information can be
stored in it. Here, sales personnel are able to store feedback of differed customers in virtual
manner so that it can be present to higher authority at the time of planning sales strategy.
Another significance of this concept is that information can be attained through it at any time and
from any place which offers high amount of convenience. Beside this, sales personnel of IKEA
are able to share information regarding varied sales region so that appropriate strategies can be
developed to influence large pool of customers (Wheelwright, 2010). From this, overall sales can
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be increased. Apart from it, database even aids in recording information for existing and future
target so that same can be achieved in desired manner.
Apart from it, database aids in conducting CRM (Customer Relationship Management)
practices in cost effective manner that certainly helps in boosting the customer loyalty.
Furthermore, database helps in storing the query of customer along with other issues that been
face by them so that it can be handle in desired manner. Through this, better management of
information can be done that supports in taking crucial decision and also to ascertain the buyer
behaviour of IKEA. However, there is certain concern while using database in sales
management. It can be hacked from which crucial information of the client can be thieved. This
will certainly affect the image of IKEA and also affect the interest of customers. Also, threat of
virus and corruption of data are another concern which lies in the negative side of database.
However, such issues can be managed through implementing effective security system.
CONCLUSION
Sales development activities are considered essential to perform marketing and sales
function for a company. This reports makes analysis of sales development plans in world's
leading furniture and home ware company Ikea. It describes significance of sales teams and
executives in implementing marketing strategies and accomplishing organizational goals. The
sales mangers of corporation understand importance of its reliable human resources. Assignment
further elucidates the impact of motivation, remuneration and training techniques in productivity
and performance of the employees enrolled in sale process. It signifies sales management as
crucial tool to organize sales activities and sales output. At the end of report use of database in
effective sales management of Ikea is sustained.
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