Sales Management Report: Principles, Structure, and Customer Relations

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This report provides a comprehensive overview of sales management, focusing on key principles, sales planning, and sales structures, with a specific case study of Dixons Carphone Warehouse. The report delves into the core principles of sales administration, including the importance of effective sales planning, various selling methods, and sales reporting techniques. It examines how these principles influence user and business purchasing behavior. The analysis extends to the evaluation of sales structures and how they are organized, supported by organizational examples. The report also highlights the significance of 'selling through' others and critically assesses the execution of different sales structures. Furthermore, it explores successful selling methods, the development and management of customer relationships, and the value of sales schemes for increased profitability, incorporating account administration within sales structures. Core financial principles and portfolio management are also examined in relation to profitability and competitive advantage. The report concludes with recommendations on how sales structure and formulation can improve financial outcomes.
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SALES
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key generalisation of sales administration in relation to value of sales planning, methods
of selling and sale reporting...................................................................................................1
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.........................................................................................................8
TASK 2............................................................................................................................................9
P4 Key generalisation and method for successful selling and how they bring to developing
and managing customer relationships....................................................................................9
M3 Critically examine the utilization of prosperous selling generalisation and method in
application to particular organisational examples................................................................11
P5 Explain the value of processing sales scheme that yield advanced profitability and
incorporated account administration within sales structures................................................12
M4 Measure how core finance principles and prospering portfolio administration can lead to
accumulated profitability and a competitory bound.............................................................14
D2 Critically assess and form recommendations on how sales construction and formulation
can better financial property.................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Sales management is the procedure of developing sales unit, coordination the sales
dealings and executing sales methods and method which help enterprise in gaining target goals
and objectives. Such long term goals can be wide ranging so they are enhancing its sales volume,
contribute growth and contributing in the profitability. For attaining desired objectives, sales
manager has various responsibility such as conduct sales prediction, developing accurate
objectives, recruitment, training and development, compensation and sales performance
evaluation (Agnihotri and et. al., 2016). Sales management involves setting of major goals which
has to be achieved by organization employees. In an organization, the main role of sales
management is not to manage and maintain sales but also manage people who help in developing
sales volume.
The report is based on Dixons Carphone Warehouse which is multinational electrical and
telecommunication retailer and service firm and its headquarter is located in London. The
company is regulate and operate its variety of brands in the United Kingdom, Ireland and
Europe. The firm mainly deals in consumer electrical and mobile phones under the Carphone
warehouse and CurrysPCWorld Carphone Warehouse brands. The main purpose of this
assignment is to describe the key principle of sales administration in relation to value of sales
designing and sales reporting. Also analyze the benefit of sales structure and how they are
organized and managed by using accurate example of organization. The report help in
understanding the significance and benefit of conception of merchandising through others in
better manner. In addition to this, company require to evaluate the key principle and method for
prospering merchandising and how they are change these developing and managing consumer
relationship effectively.
TASK 1
P1 Key generalisation of sales administration in relation to value of sales planning, methods of
selling and sale reporting
Sales management is the concern procedure which is mainly concentrate on applicable
technology and utilization of sales method and manage the organisation sales dealing effectively.
It is essential business operation and function which help in increasing net sales with the help of
sales products and services for gaining high profitability and income. Sales management is
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important for Dixons Carphone is to reach with enhancing competition and required to improved
various techniques or methods of distribution to reduces cost and increasing income (Agnihotri
and et. al., 2012). The sales management is play an important role in commercial and business
organization. There are several key principle of sales management in relation to sales planning
that are described as under:
Manager make a differences – The whole effectiveness of sales or customer service
organization is directly associated with effectiveness of their front line manager and supervisor.
The time which is invested for providing training to their people that will reduces the turnover,
enhancing productivity and developing strong base of satisfied customers. It will assist in
producing higher income and profitability. If company manager are develop effective sales
planning so this will reduces the differences in opinion and thoughts among managers.
Manage the people individually – It is the another principle of sales management which
help in managing people on individual basis. For being successful sales manager, they can not
manage their people in a groups. It is necessary for Dixons Carphone is to providing praise in
group environment and encourage them for gaining desired goals and targets. By managing
people on individual basis so they are performing work in gaining higher income by selling
various services and products to the customers.
Contribute discipline in an organization – Most of the people seek to live and work in
sound environment where they are follows all rules and regulations in proper manner. Dixons
Carphone always require to manage and maintain all norms and rules which help in smoothly
running of business operations and functions. If company developing sales planning so this is
easy for their employees that how to response on their customer questions and how to react in a
proper discipline manner (Andzulis, Panagopoulos and Rapp, 2012). The firm are conducting
sales planning for enhancing their sales volume in order to distribute discipline among their
employees. Sales reporting help in identify total sales volume which are gained by organization
employees in disciplined manner.
Manage on objective information – When sales person hate their sales managers, so it
is the main duty of sales manager is to develop accurate objective information. The business
provide training, coaching and discipline that are based on fact and performance statistics that
should be an objective. Dixons Carphone Warehouse require to manage their objectives which
are set by them in acquiring higher growth and development. Sales planning assist in developing
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set objectives which has to be achieved by company in given time period. Also they need to
protect and prevent important information which are necessary for an organization. Before
planning sales, the company required to develop objectives information that are required to
reached by employee in proper manner. This will help in preparing appropriate sales reporting
regarding current trends of company sales volume.
To be goal oriented – It is one of the major principle of sales management which analyse
about objectives that set by company. In Dixons Carphone firm, the sales manager are
establishing goals and insist on reaching them by using telecommunication. The staff member
are always communicate about goals and numbers which are able to bring and manage a
objectives oriented operation and most of the people will identify that striking of goals and
objectives is the main leading aim of developing enterprise (Attia and Honeycutt Jr, 2012). If
company conduct sales planning before reaching with desired goals so they need to gaining
higher income and profitability in better manner.
Be direct and to the point – The Dixons Carphone sales manager should be straight
forward while giving training or coaching to their employees to interact with their customers or
clients. It is necessary for sales person is to communicate with their customers in direct manner
and also solve their issues without interference of other person. With the help of direct, clear,
concise conversation they will get the accurate messages which are transfer to them. While
conducting sales planning within an organization so the manager are teach their employees that
they should communicate with their customer at point to point. It is helpful for interacting with
their buyers in direct manner for giving them information about their retailing services.
Methods of selling and sales reporting :
There are various types of selling method which are help company in promoting their
services and facilities among customers. These are described as follows:
Transactional selling – It is one of the common method or technique of sales in which
sales representative are desire out prospects, building relationship and then try to close the sale.
With the help of this, firm analyses that what is the need of customers and how it can be fulfilled
in proper manner (Baldauf and Lee, 2011). It is mainly concerned with promoting and selling
products with little emphasis on customer needs and demands. Dixons Carphone can used this
method for promoting their telecommunication and retailer services among people.
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Consultative selling – It is that method and techniques which all about communication
between the salesperson and customer. This concept is mainly used for strategic questioning
skills and abilities to engage in dialogue with customers or desired clients. Dixons Carphone
Warehouse can also used this method for getting accurate feedback or response of their
customers towards their services or facilities.
Sales reporting - The sales reporting describe that trends which are occurs in company's
sales volume in given time period. It is one of the common form which shows the trends that
arise in organization's sales volume in given time period. Sales reporting shows the increasing
and decreasing trends of company services and facilities (Boles and et. al., 2012). The Dixons
Carphone sales manager can analyze the trends in order to determine 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 different key principles of sales administration that help company in smoothly
running of business operations and its functions. The principle which are applied in the
organisation so this will assist in attaining their desired sales target in successful manner. There
are mainly three aspects which are reasoned as essential sales management procedure that
consider sales strategies, sales operations, sales investigation. All such factors are utilised by
sales team which is helpful in operations and preparation.
D1 Critical evaluation supported upon a encompassing understanding of sales management,
construction and merchandising method within an organisation
Sales management is the process which are mainly focus on practical techniques and
methods of sales tools and maintain the firm sales operations effectively. This is essential
business function as net sales with the help of sales facilities and services and its outcome
provide accurate profitability in the form of commercial business (Borg and Johnston, 2013).
The evaluation of sales techniques assist in dealing and communicating with new customer who
are try to involved with the company. Dixons Carphone use best selling techniques such as
transactional and consultative which assist in attracting large number of clients towards company
services. The company used appropriate sales management structure which help in providing
each level of information in proper flow.
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P2 Measure the welfare of sales construction and how they are organized using specific
organisational examples
In sometime, when sales staff does not perform good in the firm so this will affect the
productivity and profitability of an organisation. In such situation, various figures are pointed
towards common strategies and policy of the company. Most of the time, the problem and issues
of sale structure are occurs in the firm. It is essential for the enterprise is to select appropriate
sales structure for them because they will be capable for carry out higher growth and
development of the company (Cravens, Le Meunier-FitzHugh and Piercy, 2011).
There are different kind of sales structure which can be practical by firm but it mainly
depend on sales unit size and divide as per the industry division of the organisation. In this, if the
firm is selected accurate sales structure so this will assist in reducing cost, improving efficiency
and maintaining the loyalty among customers.
There are different kind of sales structure which are applied in Dixons Carphone Warehouse :
Geography based structure Most of the organization are using such type of
construction so they are easily increase more income and profitability. If sales of the firm
is based on geography so this will permit the sales individual is to identify their market
and it help in processing suitable approaches to the location. Along with this, it will assist
in reduction disorder among sales person regarding area where they are serving.
Product based structure If organisation is having people who has relevant information
and knowledge regarding products and services and it will be easy for the company is to
make good image in the market place (Smith and Zook, 2011). This type of structure will
be used by firm who are promoting their services which are related to retails and
telecommunication. If Dixons Carphone is selling some electrical and telecommunication
products in their stores so that they can use this in type of structure.
Market based structure – It is supported on customers which are existing in the
marketplace and it is also called as customer based construction. The customer have
various necessarily and it is the main role of firm is to fulfill their needs and wants for
being satisfied (DeConinck, 2011). If sale person became expert in dealing with various
types of buyers so they are capable for developing different sales techniques in better
manner.
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Functional based structure This type of structure is based on defining sales
procedure. The structure of the firm is developed by the functions which are perform by
company employees. It is widely used sales structure as a selling activities which are
assist them in performing more effectively in this structure.
There are different benefits for the company if they are using accurate sales structure within an
organization. Such benefits of different sales structure are described as follows:
Geographical structure indicate the clarity of obligation in the merchandising duty that
means what are the major roles which are performed by sales team of the firm. It qualify
that which type of merchandise line and market they are actually handling with.
Product based structure assist in taking benefits of product line within an organization.
Each section of structure can mainly concentrate as an individual in the firm. This will
allow company to have particular focus on specific items in their business operations
(Erevelles and Fukawa, 2013).
Functional based structure will make sure that there is certain strong coordination and
communication in their function which are to be performed by sales team members in an
organization. It includes quality of sales forces and enhancing times for existent sale.
Also maintaining functions and operations for gaining higher profitability in the firm. It
assist in improving transparency in making appropriate decision where an individual
managing its sales in the firm for sharing accurate data and information on regular basis.
Market based structure is important because this is will affects market actual outcomes
which impact on opportunities, motivations and decision of economics who are
participate in the market.
P3 Significance and the benefit of the concept of ‘selling through’ others
There are different types of concept which are used in the company for selling or
promoting effective services in the market place. For doing selling, Dixons Carphone will need
various people which assist firm in developing those products through this they can easily reach
with desired customers. One of the main concept is selling through. The concept understand
about customers, individual and organization are not capable to acquire the products unless they
are made accessible products at specific place. The firm can convince the customers to purchase
such goods if such are provided in the large market place (Ford, Honeycutt and Joseph, 2015).
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Selling through is referred as the proportion of merchandise which is sold by a
merchandiser after being shipped by it's supplier. It is expressed in percentage. Net sales
essentially refers to the same thing, in appropriate numbers. Sell through is calculated during a
period. ( usually 1 month) It refers when sales made directly on the other side it refers to sales
made through a channel.
Importance of selling through:
Selling through is an essential appliance basically for small business, specially for those
who sell tangled or high value product and work to other enterprise, instead of consumers.
Dixons Carphone can manage personalized merchandising by hiring sales representative who
visits customised or by contacting them through telephone. It has been very difficult for the
company to dealing with single customised, unless they sell face to face in mall (Gabler, Nagy
and Hill, 2014). “Selling through” others includes selling which is done with the help of retailers,
wholesalers and other distributors. It is because selling through is play a role as a intermediary
which can be more cost effective for the firm in order to reaching with desired customers rather
than selling them directly. In Dixons Carphone, it is the largest consumer electronics retailers
and they are operated Currys digital, PC world and various well known brands. Then they are
providing services directly to their potential clients in better manner.
The selling through relies on four factor, they are -
Persuading prospects Personal selling skills is very important as the sales
representative uses their ability to gain the chances of a prospering sale in their business. The
firm used their selling skills while understanding the potential demand and offering of a solution
to those who necessarily in the form of a product or services that provides a strong advantages
and represent worth of money.
Selling complex products – Most of the companies who are in sells of complex products
they must be able to reveal products to potential customers and deal with their approaches and
problems (Rutherford, Park and Han, 2011). In Dixons Carphone, sales representative are as skill
full so that they present the product focusing on the benefits which will be related to various
judgement makers, such as specialised managers, buying officers or finance executives.
Managing the sales cycles Personal selling is as essential to organisation as
merchandising commodity that needs a long sales revolution. It is very important in business to
business marketing, anticipation goes through a purchasing procedure that includes a number of
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phase like determination of a demand, improvement of a description, choice of possible
suppliers, assessment of provider, offerings and concluding buying determination. Dixons
Carphone also used this sales cycle which help in controlling and smoothly running of business
operation and its functions (Guenzi and Geiger, 2011).
Developing customers relationships – It is very important part of business as to build a
long term income for the future, a representative should use their individualised selling skills to
conquer a strong relationships with their customers. A company representative should contact
customers after their purchase for just to stable good and healthy relationship.
Advantage of Selling through :
Selling through is considered as more cost effectual manner of movement with customers
rather than merchandising directly to them. If Dixons Carphone are willing to target business
customers who gives priority to dealings with large suppliers, but selling them immediately
may not be a realistic option. This will help in developing those services which are easily
reachable to customers by extending geographical area of the business. If firm distributing
various services regarding through different channels then entire obligation of selling products
comes on the selling team and for this sales team should provide correct education. Company
sales manager are deal with clients in easy manner and they are know very well that how they are
able to carry out large number of customers in the market and negotiate which is possible in such
cases (Homburg, Schäfer and Schneider, 2012).
M2 Critically measure the execution of various kind of sales structures using specific
organisational examples
There are four types of sales structure which can be implemented in an organisation. By
using sales structure, it is very essential for firm which help in reduces the stress of their
employees and eliminate confusion. Dixons Carphone can used geographical structure which can
lead towards lower the geographical duplication of efforts. Organization mainly follow formal
structure which make discipline among employees as well as managers. This type of
organizational structure usually depend on company size, operation and function.
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TASK 2
P4 Key generalisation and method for successful selling and how they bring to developing and
managing customer relationships
Key principle refers to the fundamental norms, rules, values and regulation that represent
that desirable and positive ways for an individual, group, society and community that can help in
determining the right actions. Principles are more effective than policy and objectives that are
regulate and governed the firm operations (Ingram and et. al., 2012). There are a lot of variations
in sales such as whether it's sell assorted merchandise to various business that have contrasting
type of customised and types of processes for each.
There are five basic principals of selling :
Selling is all about relationships - In corporate world, building a relationship is very
important. It doesn't matter what sale but ultimately the capacity to win that sale comes in the
form of ability to form a relationship with buyer that are connected by company sellers. There
are huge competition in market so as firm need to develop loyal customer and making good
relationship with them. For maintaining good relationships, Dixons Carphone have to maintain a
relationship which includes building rapport, identifying needs, showing genuine interests,
building trust and putting values. They are providing best services and products to their
customers on time so this will help in building and managing customer relationship in proper
manner.
Sale is not about product, but their problem- For an organisation, it is necessary to
promote their company image, products and services and other facilities and in this way various
issues occurs while doing sales. This is required for firm is to keeping their need prior then they
can summarize the value and need of firm services is the way of convince. Dixons Carphone has
important to occurrence in sales and principle is to count the different forms of demand to
determine the feeling behind the purchasing conclusion. People can generally take the decision to
take various services related to telecommunication which they then back up and confirm with
logic (Jaramillo, Mulki and Boles, 2013). This would be the key points in selling is to judge the
difficulty and let it into the affectional portion of the buying decision, then justify it with the
value, features, benefits etc. If company solve various issues of their customer regarding
products and others so this will assist in developing and managing good customer relationship in
better manner.
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Price and value go hand in hand - The services are selling in which the company
facilities such as retailer services could be in competition whose features may rarely change but
the prices does not. The price of the facilities which are provided by firm can be defines the
value of the services which can be offer to it's potential buyers. If buyer thinks that company
product is expensive it's because they haven't created such value of it. Suppose a salesman get
really hung up all around price and came up with result that this could be the main reason of
failure in selling but in reality they came to know that price is irrelevant if they can build up the
value of product than they didn't feel too expensive (Rogers, 2011). On the other hand,
compliments is the one of the best way to develop good relation between a company and the
prospective.
There is no sale unless close it- If company have a big grapevine, they love to bragging
about the impressive possibility that they are working and those customised which are targeted,
everywhere the handwork putted. There is one of the key principals of selling is the reality that
there is No sale unless close it (Johnson, 2015). Success in selling doesn't come from the pipeline
so they require to use or how much hard work were put by them, all it comes from actual selling.
The ability to succeeded in sales comes from how they close the deals and actually sell. For
developing and managing appropriate relationship with their customers so they need to provide
care to them. Caring is the best way shower love to someone and if the firm shower some love to
their prospective then the probability of response from other side increased into double. This is
often achieved by show to outlook that the firm like to be advised. A firm can get the response
from the prospect by asking them about their persuasion, as enhancing cognition of their position
allows them to have a more bearing sales communicating with them.
Those who listen, win- This is very important to be success in selling that company must
understand the needs, pain and desire of their customers to build a strong and healthy
relationships. For Dixons Carphone, it is the only healthy way to feel and understand buyers
pains , it can only happen by listening that they can find buying signals and then close the deal.
Techniques used in selling :
Finding the value wedge - It is very important to know that how much overlap is there
between what are providing as compared to their competitors (Ketter and et. al., 2012). There are
around 70 percentage of overlap has been confessed by the B2B salesperson. So it has been said
that Dixons Carphone are focussing on 'parity area' so they should centering on what they can do
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