Sales Management Analysis: Ford Motors' Strategies and Structures

This report provides a comprehensive analysis of sales management within Ford Motors, a leading multinational automaker. It begins by outlining the core principles of sales management, emphasizing the importance of sales planning, effective selling methods, and accurate sales reporting. The report then examines how these principles are applied within Ford Motors, highlighting the role of the sales manager and the significance of a well-trained sales team. A key focus is on understanding and adapting to both consumer and business buying behaviors. Furthermore, the report details the benefits of various sales structures and their organizational aspects, including geographic structures. It also explores the advantages of selling through others. The analysis incorporates organizational examples to critically assess different sales structure types. The report concludes with an evaluation of sales management, selling techniques, and organizational structures within the context of Ford Motors, offering insights into how the company can optimize its sales strategies and achieve its revenue goals.

SALES
MANAGAMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Key principles of sales management in relation to importance of sales planning, methods
of selling and sale reporting...................................................................................................1
M1. Analyse how the principles of sale management will be different in response to consumer
and business buying behaviour...............................................................................................4
P2. Benefits of sales structures and their organisation...........................................................5
P3. Importance and advantages of concept of 'selling through others'...................................7
M2 Critically analyse the implementation of different sale structure types using organisational
example...................................................................................................................................8
D1. Coherent and justified evaluation based on understanding of sales management, selling
techniques and structure within organisational context..........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Sales refer to the transaction taking place between two parties wherein purchaser buys the
article, service or asset in return of money or related consideration. Sales management can be
defined as the process of developing an effective sales force, facilitating coordination among
sales operations and executing the techniques related to this process (Johnson, 2015). This
facilitates a business to surpass the sales targets set by top management of an enterprise. It
includes management of activities such as advertising, marketing, promotion, pricing, physical
distribution and product merchandising. The present assignment is based upon Ford Motors
which is a multinational automaker which sells commercial vehicles and automobiles. This
enterprise is headquartered in Dearborn, Michigan, Detroit. This assignment takes into account
the key principles related to sales management in association with sales planning, reporting and
methods of selling. Also, benefits of sales structure are provided together with the way in which
they are organised. Lastly, importance and the advantages of selling through others are
highlighted in this assignment.
P1. Key principles of sales management in relation to importance of sales planning, methods of
selling and sale reporting
Sales management is one of the most essential core activities of a business as any
enterprise which is involved in sale of goods and services exist for two objectives, namely,
maximisation of revenues and increased profits. In this regard, Ford Motors is a leading name
within automotive industry and thus sales management holds prime significance for this entity.
In order to become the top company across the global market, Ford need to manage their sales in
an effective manner. The Revenue manager of this company is responsible for ensuring that the
enterprise earns huge amount through sales along with increased profitability. Sales management
is a process which provides a base for manager of this department to provide assistance to sales
force in order to make sure that the activities of this function are executed in a timely manner
(Wang and Miao, 2015).
Various programs are organised within Ford Motors to equip the sales team with
knowledge and skills associated with carrying out sales and building healthy relationship with
customers in order to retain them for a long duration of time. Sales report refers to the
information associated with the items sold along with the location which reflects that
1

management process also includes optimisation of product distribution. There are certain
principles of sales management which have to be abided by the manager of Ford Motors in order
to make sure that exchange takes place across the organisational premises in a desirable manner.
Such principles are described in detail below:-
Manager makes significant difference: The quantum of sales generated by an enterprise
clearly demonstrate the skills, capabilities and potential of Sales Manager of a company. Within
corporate world, it is generally observed that a skilled and efficient sales manager is able to
derive the desirable outcome out of the performance of employees, reduce workforce turnover
and enhance the quality of products and services (Johnson, 2015). This helps in retaining the
customers for a long period of time and ensuring the sustainability of company within
marketplace. The Sales manager of Ford Motors takes into account all this and maintains a
behaviour which ensures effective performance being delivered by sales workforce and
achievement of targets within the stipulated time.
Lead by setting example: An effective sales manager within any enterprise inculcate a
culture of discipline and rigidity where their own behaviour tends to act as an example for the
team to follow. In this regard, Sales manager of Ford Motors ensure that the team abide by all the
stated policies and procedures so as not to get involved in any undesirable activity or conduct
which may hamper the long term goodwill and position of company in global market. They
equip the sales workforce with the tactics and skills required for persuading people to make a
purchase.
Golden rule of Sales Management: Human resource is an important and inseparable part
of an organisation whose role and contribution towards the performance and position of
company in global market can not be ignored. This principles of sales management emphasize
upon this aspect only and consider treating the workforce as a valuable asset for an entity
(Laudon and Laudon, 2016). The Sales manager of Ford Motors gives due respect and care to all
the employees within the team so as to inculcate a culture where coordination and cooperation is
given immense importance. This helps the team in displaying the same behaviour towards
customers and this aid in enhancing the sales figures as well as the profits of company.
Be goal-oriented: It is essential for sales manager to state the desirable outputs, targets
and goals to employees within the team in order to ensure that sales force works in alignment
with such objectives and achieve them within the specified time. In this regard, revenue manager
2

within Ford Motors establish such targets which are sufficient to raise the position and stature of
company across the globe and ensure that the sales team attain these within the desirable time.
When sales goals are accomplished by workforce, it consequently inflates the probability of
realisation of overall organisational goals and objectives.
Relation of sales management with sales planning, methods of selling and sale reporting
In any business enterprise, sales management is a key activity which is closely related
with a number of other processes such as sales planning, methods of selling and sales reporting.
The success as well as sustainability of a company is largely dependent upon this interrelation
and it is of prime significance to the sales manager of the entity. Effective sales management
across the organisational premises assists the enterprise in achieving the sales targets in a timely
manner (Miao and Evans, 2012). Besides this, effective sales planning and its optimum
implementation aids the sales force to enhance their performance in order to deliver increased
output. Efficient planning, organisation, controlling as well as monitoring are some of the most
crucial factors which shape the basis upon which performance of sales team is dependent. Thus,
the interrelation between principles of sales management with methods of selling, sales planning
and reporting in the context of Ford Motors is given below:-
Effective Sales force: It is essential that an entity recruits only such employees which
possess the calibre as well as the potential to grab the attention of people towards the products
and services being sold by organisation. The attainment of sales targets is largely dependent
upon presence of qualified, tactical and competent employees within the team who have in-depth
knowledge about company's products, market and customer needs and preferences. In this
regard, the sales workforce within Ford Motors is given adequate training in order to equip them
with the required skills and potential to deal with customers even in complex situations. Also,
this assists in enhancing the capacity of sales team to deliver desirable performance.
Development of an effective reporting system: Reporting is an internal part of sales
management. Effective reporting procedure within an entity enhances the extent of validity and
reliability of performance of employees within a sales team (Johnson, 2015). Within Ford
Motors, the manager of this department devise and develop an optimal reporting process which
assists in determining the individual performance of sales force and also aid the management in
taking strategic decisions. This renders a competitive edge to enterprise over their rivals. Besides
this, by enforcing efficient reporting system, Ford Motors gains an insight into the sales growth
3

and other future prospects. Further, when along with sales reporting structure, sales management
is carried out by complying with all the principles, it assists the top management in monitoring
the overall organisational performance. Also, it aids in formulation of such policies and
strategies through which the existing level of revenues can be significantly increased.
Acknowledgement of present and future situation through sales planning: For
effectively carrying out sales management within an entity, the managers need to analyse and
evaluate the future conditions of the marketplace along with the choices and preferences of
customers. Without gaining proper knowledge of internal and external business environment,
sales management policies can not be formulated (Smith and Zook, 2012). It is here that the
importance of link between sales management, sales forecast and sales planning gains relevance.
In this regard, Ford Motors ensure that effective sales planning and forecasting is done by the
team so that targets can be achieved in a timely manner.
Looking for creative ways of selling: Uniqueness has a prime significance in sale. Opting
creative and unique methods of selling can help the sales team of an enterprise in luring the focus
of customers towards the products and services of company. In this regard, Sales manager of
Ford Motors encourage the members of team to make use of innovative ways to enhance the
revenues and profits of entity. Exceptional ways of targeting and influencing customers helps the
enterprise in achieving organisational goals and objectives.
M1. Analyse how the principles of sale management will be different in response to consumer
and business buying behaviour
Buying behaviour of consumer is the key catalyst for formulation of sales management
policies and procedures. The selling system of enterprise can be classified into two modes:-
(A) Business to business (B2B)
(B) Business to customer (B2C)
Consumer Buying behaviour process
Consumer behaviour is the study of needs, wants, choice, attitudes and reaction of
customers in response to a specific good or service (Goebel, Deeter-Schmelz and Kennedy,
2013). In modern world, tastes and preferences of customers are changing with passage of time.
Customers have become much more sensitive towards price, quality and features of the product.
The key focus of Ford Motors while dealing with customer buying behaviour is emphasizing
upon the quality quotient and pricing of the products being provided by entity in marketplace.
4

Post the analysis of buying behaviour of consumers, effective policies and strategies can be
devised which can assist the enterprise in fulfilling the needs of customer for meeting the targets
in the given period of time.
Business Buying behaviour process
Business buying behaviour is largely shaped by the structure of consumer behaviour
model only. While dealing with business buying behaviour, organisations have to take into
account the component of effective communication in order to optimally communicate the
features and specifications of products and services of enterprise to the client. In this regard,
Ford Motors employs an effective communication system to conduct business to business sales
in the best manner.
P2. Benefits of sales structures and their organisation
Sales department of a company generally follows a sales structure to avoid the
miscommunication and encourage coordination among the employees of the enterprise. To carry
out the sales process smoothly and effectively, sales structure is used by the company (Johnson,
2015). This involves cold calling, business development and handling of inbound sales. The
overall sales process will become messy in the absence of sales structure which can directly
affect the sales and product requirements of Ford Motors. Sales structure within a company helps
to assess the way in which organisation of sales department is done and the manner in sales
growth can be attained. In order to maintain and increase the high conversion rates, well
organised sales structure is used by Ford Motors. There are different types of sales structures
whose description and benefits are stated briefly below:-
Geographic structure: This is the least specialised and most generalised form of sales
force wherein the management and sales responsibilities are divided on the basis of geographical
area. Also known as the territorial sales force structure, employees here are brought together
within any geographical division which are formed as per the needs of a product within any
region (Laudon and Laudon, 2016). With reference to Ford, these divisions act as individual
organisations which carry out their organisational functions as per the requirements of company.
This structure has certain benefits which are briefly mentioned below:-
 Fulfilment of needs and demands of consumers become an easier process as a result of
presence of different divisions for various regions which assist in providing facilities as
per the requirements.
5

 The close geographical proximity helps Ford Motors in fostering the building of healthy
relationship with clients which further assists in sales effectiveness and enhancing the
revenues and profits of enterprise.
Product sales structure: It refers to that sales force firm where the salesperson is expert
at selling certain products, services or ideas of company. This salesperson is just acquainted with
some items of entity and possesses no knowledge of the other products of the firm (Miao and
Evans, 2012). Ford Motors offer a number of products to their customers over a vast
geographical range. For this purpose, various sales force structures are united which are created
through territory, customers and products. This structure possesses certain benefits which are
given beneath:
 Salesperson become an expert at sales of a particular item and leads to product leading.
 Selling efforts which are required to carry out sales are easily guided by the management
of enterprise.
Market based structure: Also known as customer sales force structure, here sales
representatives are grouped together on the basis of customer or industry (Goebel, Deeter-
Schmelz and Kennedy, 2013). The role and responsibility of various salespersons within Ford
Motors is to offer varied products to customers in order to gain maximum satisfaction from them.
For instance: Ford Motors is a leader in automotive industry which reflects that salesperson of
this enterprise is required to have adequate and relevant knowledge about vehicles and its parts
along with various general merchandise. In case the sales team of Ford is not appropriately
acquainted with the products within these segments, then they will be unable to sell these articles
in bulk volumes. The large scale benefits of market based structure are clearly stated as follows:-
 Salesperson identify and respond to the requirements of customers in an adequate and
appropriate manner which helps in maintaining a strong and healthy relationship with
them in order to retain them for a long time.
 Yet another benefit of market based structure is that here, management control is
assigned to different markets in a strategic manner in order to gain advantage in
marketplace.
P3. Importance and advantages of concept of 'selling through others'
Selling through others is termed as a quantum of percentage at which a product or a
service sold by a retailer (Drucker, 2012). This is evaluated for a particular period of time span
6

that is mainly for a month. In context with this, Ford Motors is required to replenished their
inventories in a proper given time manner to their consumers on continuous basis. Ford Motors
can effectively sell their products and services by taking advantage of various distribution
channels which exist as a part of the large corporate world. These include manufacturer-
wholesaler-retailer-customer, manufacturer-customer, manufacturer-retailer-customer (Evans,
Stonehouse and Campbell, 2012).
Importance of selling through others
Taps into existing consumer base: Most important factor that is required to build
effective consumer base is time and efforts. Ford Motors will effectively able to build strong
relationship with their customers while performing their work with different retailers,
wholesalers etc., therefore, sell through others provide formative benefits to customers as with
this they can reach to maximum consumers which will help them to increase their brand image.
Increase level of market growth: This is most effective process as working with more
channel of distribution benefits Marks and Spencer to maximise their growth of product in a
marketplace. As Ford Motors offer wide range of cars and other automobiles, working with large
number of distributors helps them to enjoy more recognition in market.
Cost effective: Wholesalers and retailers perform their functions with their own sales and
marketing team which will benefit them to perform their sales procedures in more effective
manner (Hitomi, 2017). Ford Motors by taking advantage of various distribution measures such
as logistics and already framed processes and systematic can effectively save their time and cost
which will further help them to expand their business operations.
Advantages of selling through others
Furnish logistic assistance: Selling via other means refers to selling of products with
assistance of intermediates. They render logistic support for firm which assures smooth and
effective distribution of products and commodities (Shaw, 2016). Intermediates of Ford Motors
hold back shortage and storage of supplies to customers by which they can easily access goods.
By this customers will have their products within stipulated duration and their sales will be
enhanced.
Provide transactional functions: Intermediaries uses their contacts by which they serve
in entire market in effective way. This will aid manufacturers and customers as organisational
goals and objectives can be accomplished. In case of Ford Motors customers feel more easy to
7

access their resources without being in central location and getting out of their central zone, this
has significant impact on sales of their products which leads to enhanced profit and revenue.
Burden mutuality, time and cost saving: Wholesalers, retailers are intermediators who
share responsibilities of manufacturing organisation by taking into account storage, setting up
sales, stock management, etc. (Homburg, Schäfer and Schneider, 2012). These intermediators
within Ford Motors shares cost which have been occurred in promotion and advertisements of
services and products. By this encumbrance on organisation can be trimmed down to definite
level.
M2 Critically analyse the implementation of different sale structure types using organisational
example
It is essential for sales manager of an enterprise to opt for a desirable sales structure in
order to earn the revenues and profits as per the desirable outcomes and set targets. The various
sales structures have their own advantages and disadvantages which reflects the extent to which
they can be effective within Ford Motors. With regards to geographical sales structure, benefit is
that adequate and relevant territorial management consequently results in lesser duplication of
efforts in terms of same customers. The demerit associated with this structure is that sizing
different territories may become a tough challenge and even lead to uneven opportunities or
sales. In context of product sales structure, merit is that sales representative attains product
expertise while demerit is that duplication of efforts further leads to rise in costs as well as
expenses of Ford Motors. In regards to market-based structure, benefit is that it leads to a healthy
and strong relationship with customers which further enhance loyalty of consumers. The
disadvantage is that this process is vast and time consuming and further requires investment of
high funds in order to maintain it (Havaldar and Cavale, 2017).
D1. Coherent and justified evaluation based on understanding of sales management, selling
techniques and structure within organisational context
It is analysed that sales management, selling techniques and the various types of sales
structures have their own merits and demerits as already been mentioned before. Thus, it is
necessary for Sales manager of Ford Motors to devise policies taking into account this aspect and
undertaking steps that can significantly reduce the drawbacks and enhance the benefits.
8

CONCLUSION
From the above report, it can be concluded that sales management is an essential process
for an enterprise which helps in maintaining as well as enhancing the revenue and shares of a
company. Besides this, it has been evaluated that sales planning, reporting and forecasting are
closely linked with the process of sales management and are imperative to ensure that the sales
targets of a company are achieved in a timely manner. Further, it has been assessed that there are
various types of sales structures which can be opted by a company and possess their own merits
and demerits. In addition to this, the importance of concept of selling through others is analysed
for an entity.
9

REFERENCES
Books and Journals
Drucker, P., 2012. Management. Routledge.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Goebel, D. J., Deeter-Schmelz, D. R. and Kennedy, K. N., 2013. Effective Sales Management:
What Do Sales People Think?. Journal of Marketing Development and Competitiveness.
7(2). pp.11-22.
Havaldar, K. K. and Cavale, V. M., 2017. Sales and Distribution Management, 3/e: Text &
Cases. McGraw-Hill Education.
Hitomi, K., 2017. Manufacturing systems engineering: A unified approach to manufacturing
technology, production management and industrial economics. Routledge.
Homburg, C., Schäfer, H. and Schneider, J., 2012. Sales excellence: systematic sales
management. Springer Science & Business Media.
Johnson, J. S., 2015. Broadening the application of mixed methods in sales research. Journal of
Personal Selling & Sales Management. 35(4). pp.334-345.
Johnson, J. S., 2015. Qualitative sales research: An exposition of grounded theory. Journal of
Personal Selling & Sales Management. 35(3). pp.262-273.
Laudon, K. C. and Laudon, J. P., 2016. Management information system. Pearson Education
India.
Miao, C. F. and Evans, K. R., 2012. Effects of formal sales control systems: A combinatory
perspective. International Journal of Research in Marketing. 29(2). pp.181-191.
Shaw, S., 2016. Airline marketing and management. Routledge.
Smith, P. R. and Zook, Z., 2012. Marketing communications: integrating offline and online with
social media/PR Smith & Ze Zook. Philadelphia, PA: Kogan Page,.
Wang, G. and Miao, C. F., 2015. Effects of sales force market orientation on creativity,
innovation implementation, and sales performance. Journal of Business Research. 68(11).
pp.2374-2382.
10