Sales Management Report: Sales Strategies, Structures, and Techniques

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This report offers a comprehensive overview of sales management, exploring its key principles, methodologies, and organizational structures. It delves into sales planning, selling methods, and sales reporting, highlighting the importance of each in achieving sales objectives. The report examines consumer and business buying behavior, analyzing how these concepts relate to successful sales management practices. It also evaluates different sales structures, emphasizing the significance of 'selling through' others and critically assessing the implementation of various sales approaches. Furthermore, the report discusses successful selling techniques, their contribution to CRM, and their application to a case study of Marks & Spencer. It emphasizes the development of sales strategies for maximizing profitability, incorporating account management, and leveraging financial principles for competitive advantage, concluding with recommendations for enhancing sales structures and approaches to improve financial viability. The report aims to provide insights into improving overall sales, development, and profitability.
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Sales Management
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Table of Contents
Executive summary..........................................................................................................................3
INTRODUCTION...........................................................................................................................4
Overview of the company................................................................................................................4
Key principles of Sales Management..............................................................................................4
Concept of consumer and business buying behaviour to the key principles of sales
management and differences..................................................................................................5
Benefits of sales structures and how they are organised..................................................................9
The importance and the advantages of the concept of ‘selling through’ others............................11
Critically evaluate the implementation of different types of sales structures......................12
Principles and techniques of successful selling and analyse the contribution of these techniques
to CRM of company.......................................................................................................................13
Critically analyse the successful selling techniques in application to Mark and Spencer....14
Critical evaluation based upon a comprehensive understanding of sales management, structure
and selling techniques...........................................................................................................15
Importance of developing sales strategies that yield highest profitability and incorporating
account management within sales structures.................................................................................16
Finance principles and successful portfolio management can lead to increased profitability
and a competitive edge.........................................................................................................17
Recommendations on how sales structures and approaches can improve financial viability18
CONCLUSION..............................................................................................................................19
REFERENCE.................................................................................................................................20
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Executive summary
The aim of this report is to provide with a comprehensive overview of sales management,
the methodology and structures. This report includes the understanding of the principles of sales
management depicting the relation among planning, selling methods and sales reporting with the
relative merits of how sales structures are organised and the importance of selling through others.
Along with this, it also explains the different principles of successful selling with an
understanding of the finance of selling demonstrating how well the company may get a
competitive advantage, therefore facilitating productivity and profitability. The report concludes
with a suggestion to Marks & Spencer, indicating what may be done to enhance overall sales,
development and profitability.
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INTRODUCTION
Sales management is the act of creating a sales staff, integrating sales procedures and
adopting sales strategies which enables a company to regularly meet, if not exceed, its sales
objectives. It helps a company's business goals to be accomplished. Personal selling objectives
are defined by sales managers who also develop personal selling practices and tactics. It is
significant for leaders and also personnel to recognize management since it contributes in
increasing the awareness of various products and resources in producing requirements. Marks &
Spencer is taken as the base company. Marks & Spencer is a multinational retailer which was
established in 1884 by Michael Marks and Thomas Spencer in the United Kingdom. In this
report, it covers the several areas of sales management, tactics and techniques used by the firm to
approach an international market. The emphasis will also be on how the company can contact
multiple sorts of customers and handle concerns in order to maintain positive relationships. In
addition, several sorts of proposals that could assist the company progress for the next years
would be provided.
Overview of the company
Marks & Spencer is specialized in selling of cloths, food products and home products.
Along with this, they are also listed on the London Stock Exchange list. The firm is catering their
services across the globe with 1463 locations. The number of employees working under this
organisation is 78,000 and its revenue is generated £10,181.9 million in 20202 with its operating
income of £ 254.8 million in the same year.
Key principles of Sales Management
Sales planning: Sales planning is a forecasting approach used to investigate company
requirements sales targets as well as other aspects in attempt to sell items. Optimised sales
planning includes a number of elements or qualities, such as establishing objectives,
contemplating continual improvement, incorporating group decision-making and others
(Kerzner, 2018). A sale planning is necessary in context to Marks & Spencer because the
company has several product subgroups. With a variety of goods, Marks & Spencer's business
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planning is considerably more difficult as much more investigation, decision-making and
execution is necessary.
Methods of selling: There are several selling methods available, including tactics such as
One-Off, Relationship, System Selling and others. One off selling is a way by which sellers may
offer items to clients individually. Relationship selling is a technique of purchasing and selling
goods between two firms (Cummins and et. al., 2020). System selling is a technique whereby a
variety of actions are used to promote products to the market. For illustration, M&M employs
this approach as the company seeks to offer goods both online and offline and it also has the
power to provide offerings including both regional and worldwide markets.
Sales reporting: A Sales Report depicts a digital and physical documentation of many sorts
of events, payments and other data relevant to an organization and its products. The sales
management team is responsible for analysing the sales team's key performance indicators. The
managers could identify the causes of variations and make required modifications to enhance
performance by evaluating these data. Sales reports are routinely forwarded to upper
management in order for them to evaluate the entire effectiveness of the sales team and
salespersons separately.
The selected organisation's sales strategy is largely focused on the company's ability to
bring innovative approach and enhance its products and services for diverse consumers.
Furthermore, the organization's emphasis is on progressive expansion that means adding new
goods to its product range on a consistent basis. Its approach further emphasizes on industry
analysis in terms of learning what sort of price, performance and goods others provide in attempt
to separate itself more (Feng, Patel and Sivakumar, 2020). The selected firm also proposes
restricting commodity output in effort to generate shortages by restricted resources.
Concept of consumer and business buying behaviour to the key principles of sales management
and differences
Sales planning: The idea of sales planning differs in the framework of huge enterprises
and particular customers as of the size in changes too. Continuing in the path of major
corporations Marks and Spencer serves as a facilitator for the explanation of commodities,
machinery and some other resources. It is a large-scale transaction in which massive purchasing
and transactions are made. In the context to particular users, although the selected firm must
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engage with intermediate individuals who assist in offering goods at a greater rate but in lesser
numbers (Wang and et. al., 2021). The primary distinction among corporate and customer sales
strategy is that in the former, number and income play a significant role, but in the latter, content
is much more essential. Sales planning process is often performed in the second phase of plan
which is only possible when the firm has a strategic marketing. Firstly, the setting of sales
process objectives wll takes place where the objective will be well defined for the sales team.
Then all the necessary action will be determined and forecasted and then organised them. After
this, the actions are now planned and organised and ready to implement and then measuring all
the results and outcomes from the sales plan whether the plan is successful or not. Revaluating
plan will examine the outcomes and tells where the plan went wrong.
Stages of sales planning
Sales planning assist in the planning of unexpected hazards so that they may be overcome. It
provides a standard as to where they need to go, how one can get there, and enables them to alter
the plan as needed. Also, it stimulates creative thinking and assists in focusing on the broader
vision. The stages of planning in context to the selected organisation are mentioned below:
Analyze: The selected organisation will first analyse all the marketing conditions, its
competitors, number of suppliers and many more. This will assists them to evaluate the current
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situation and also see the opportunities for them in which they are planning to sell their products
and services.
Set goals: In this stage, the selected firm will set goal for themselves which are achievable and
eventually increases in which the goals will be out of their comfort zone and tries to attain them
in possible manner with the help of SMART objectives.
Develop plan: The selected organisation will now develop a plan to achieve their goals. They try
to identify all the obstacles which are harmful to them. They will also make sure to establish all
the strategies and tactics regarding their sales process.
Execute: As the plan has been developed, it will now ready to execute. In this stage, the firm will
monitor all their actions in effort of sales process.
Evaluate: Here, the organisation will evaluate all the outcomes with the execution of the sales
process. They will evaluate on a regular basis such as on quarterly basis which gives them a brief
understanding about its sales process.
Methods of selling: The chosen corporation employs a number of techniques in attempt to
emphasis on major corporations and particular customers on a broad level. For large
corporations, word-of-mouth marketing is largely used to offer and place their products on the
market (Dalla Pozza, Goetz and Sahut, 2018). The corporation has been in operation for
multiple years and has earned the trust of several other firms. The confidence stems from the
excellent service that the company has previously provided to specific customers. For certain
clients that firm has employed broadcast marketing, billboards, social networking tactics and
many others.
The organisation can also use SNAP selling which means to keep it simple, remain
invaluable, constantly align with customers and raise their priorities. SNAP Selling is a strategy
for selling that takes into account the contemporary buyer. There are four components, including
keep it simple. The contemporary customer is too preoccupied to examine complexities.
Prospects must find it quite simple to modify their present behaviours and accept what
company's offering. Be invaluable which means that sales people must be distinct experts who
stand out and provide value. Always align means than selling entails connecting business
arguments with fundamental convictions and it is all about persuading others to cooperate with
business. Raise priorities means for winning transactions, sellers must focus on what the prospect
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is concentrating on. This approach enables business to connect to consumers more successfully
by learning regarding its organization and deciding what is most essential to them. It could
include exceeding sales targets, distinguishing themselves from the competitors, or expanding
their organisational structure. Also, The Sandler sales technique pushes marketers to behave as a
trusted source. The customer genuinely tries to persuade the salesperson to sale and buys the
product and services.
Sales reporting: The company generates face reports for both specific customers and major
corporations. It is due to the fact that Marks and Spencer concept functions as a doorway by
which an awareness of how far the corporation has really been willing to market could be
obtained. It encourages both small and major stakeholders to be engaged in the company by
providing financial support. Several portions of the complete assistance are tailored to several
persons, the more the company is willing to incorporate company and also every investors the
greater the possibility of building reserves. This opens up the possibility of establishing and
engaging in higher-level company operations, earning a competitive edge (Sales, Pinto and
Fernández-Ramos, 2018).
Despite the fact that Marks & Spencer serves companies and individuals, the company's
major goal is to increase sales by concentrating on customers Marks & Spencer has expanded its
global market share by selling various sorts of goods such as clothing, food products and home
products. The business's continual attention on client relationships and seeking to give premium
goods that can last for long in the region as a result of that it is continuously well will available
in the marketplace.
Importance of sales management
Sales management is essential to an organization's growth. It enables businesses to maximise the
capabilities of the sales staff. When companies eliminate asset duplicates, companies save
money, which leads to increased sales efficiency. Making the proper selections contributes to
increased revenue. Organizations can get rid of items that no longer engage with its clients and
redirect the funds to better-performing commodities.
A sales plan is an important tool in assisting us to success in sales. Putting it down makes it an
actuality and assists us in identifying threats and developing a defence plan. It assists companies
in benchmarking where currently are and where business want to go so that they can make
modifications to attain their objectives. Selling methods are important in companies that relies on
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regular purchases from consumers. At the foundation of selling is the capacity to form
connections with consumers, persuade customers to make transactions, and produce recurring
business. Sales reports are essential for sales leaders as they're the principal resource for tracking
sales income, opportunity progress, network wellness, and any number of indicators that pick
while creating a sales report.
Benefits of sales structures and how they are organised
Sales structure is the framework which is opted by the companies to decide that how they
are going to increase their sells, which method they will adopt which provide maximum benefits
and many others. In simple words, sales structure a design of selling techniques and process of a
company (Ingram and et. al., 2019). There are few types of sales structure which is used by many
companies in many ways and they are mentioned below-
Functional sales structure- Here employees work according to their specialization and they
are grouped under team or a department. Organisations made a sales team for their organisation
and give them the task to increase the sales. Here, specialization plays a major role. Having
specialization in this segment is also disadvantageous because specialists are limited to do a
single kind of work which is related to their specialization only but in case if company provide
them another work linked to sales but not properly to sales activity then they are unable to
perform that task. For example sales manages may find issues to communicate with those
customers who have some different language and many other reasons. It is also beneficial to sale
sales department within organisation (Pyanikova and et. al., 2018). In context of Marks and
Spencer, they have sales department specifically and they hire specialist who have good
knowledge about this field and who is experienced so that they communicate more to customers
and contributed to increase in overall company sales. Sales department of Marks and Spenser
also help senior authority who takes decisions in suggesting some powerful strategies which will
adopt for organisational benefit.
Geographical sales structure- This is the sales structure where an organisation divide its
sales team according to various locations (Corboş, Popescu and Bunea, 2019). For example in
Marks and Spenser they have their stores in different locations and it is compulsory for them to
communicate with each customer of different. Hence, they appoint different sales person or a
sales team for different locations. They try to appoint sales team from that geographical area so
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that they will communicate customers in their local language and understand what customers
want to convey. There are three types of teams in this geographical structure. First one is that
team who determine the customer needs and wants, second team if responsible for growth of
overall sales in that location and last one is who help the company to provide more opportunities
to sell more products by recognizing their customers without communicating them, they just
observe them and analyse their need and wants.
Market based sales structure- Here; companies send their sales person or team for training
for specific industry or market. In other words companies train the skills and talents of a team to
target a market segment (Cron and Baldauf, 2021). Here, first they select their targeted
customers and targeted market then they communicate their team to focus and increase the sales
in this particular market. Hence, the team which is getting trained first that how they perform
their work in different industries. The most common and useful techniques in this structure is
that companies send their sales rep to different industries so that they will recognize the need and
wants of different industry which further help the company to expand their business in those
industries which has more scope. It further helps to attract more customers and build strong bond
with new and existing customers. On the other hand it is disadvantageous because it is costly and
time consuming process. In context of Marks and Spencer, they did not follow this structure as
they found it less beneficial for them. Therefore, they found other sales structure for their
business.
Product sales force structure- Here; companies use their product as a base for sales
department to pursue their task. Here, the sales person focuses on products that client makes.
Sales person choose their location according to their product like one product is popular at one
location and another product is popular at another location (Harrington, 2020). Hence, sales
person choose their selling areas according to product and develop the skills and knowledge
which is required to sell a particular product for the company. In context of Marks and Spencer,
their sales person were given a product and ask to increase the sales for that particular product
than they find that which customers use that product and reach at that location and promote the
product by telling its features to influence them to purchase.
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The importance and the advantages of the concept of ‘selling through’ others
Selling through others is the process of selecting certain carriers to present the commodities
of a given enterprise. Selling through others is the middleman will be a more cost-effective
approach to engage their customers than offering straight to them. With this, the resellers receive
a lot of value for their investment. Businesses gain new prospects and consumers and
also revenues increases gradually. These intermediates may represent a single brand or a range of
items. The main benefit of this technique is that the corporation does not have to interact with
customers directly and it has the chance to create items while focusing on reliability. However,
the profitability is lower in this manner since middlemen take a significantly larger portion of the
organization's revenues. By this technique, the client pays less for a single item but as they are
purchasing in bulk, they are given credits or financial report spread out throughout a few months.
In the context to the selected organisation, they often use the selling through others approach to
promote its goods by numerous stores, merchants, distributors and many others. Some of these
smaller shops and also major distributors for the disabled individuals of Marks and Spencer that
assists in boosting brand recognition and sharing information about different products. Marks
and Spencer's aim using the technique is that it could handle many users in various areas without
truly growing. It assists in minimise the company's expanding expenses, but it reduces the
number of income the company could earn (Schaufelberger and Holm, 2017). On the other side,
because the corporation is global in scope, the collective impacts of this method are massive. As
the company engages in the market with many various sorts of competitors, the dependency of
the corporation on their quality and characteristics is the differentiating element. When buyers
visit these intermediary stores, customers could analyze and compare many aspects of the stated
items and gather data to reach an informed purchasing conclusion.
The advantages of selling through other people in context of Marks and Spencer is
mentioned below :
It contributes in the reduction of Marks and Spencer's growth expenses and eliminates the
need for the company to build additional locations of its existing franchise in attempt to
check out fresh customer segments.
Selling through others is a technique for the corporation to identify where there has been
a greater margin of request for the selected organisation commodities (Hinterhuber,
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2017). This allows the company to learn about potential sites where it may be profitable
to open their store.
Selling through others allows Marks and Spencer's senior executives and current workers
to rest and trust on other middlemen to support sales in faraway places.
Critically evaluate the implementation of different types of sales structures
Sales by geographic: The approach through how a corporation seeks to build
synchronization amongst the much geography upon that it functions is known as sales by
geography. It means that whenever a global corporation has a presence in several areas across the
world, that has a better possibility of generating a greater margin of profit since the potential
customers is increased too (Hochstein, Lilly and Stanley, 2017). Furthermore, a geographically
greater range of cooperation of assets is necessary in attempt to generate what goods would
permit better sales. The chosen sales organisation aims to provide quality standards that result in
higher-level sales personnel who are capable of dealing with a variety of customers. Diversity
induction and some other essential aspects of an organization were necessary as part of the
training and development method that was required to be applied worldwide.
Sales people struggle to establish product or market specialisation. Territory sizing may be
difficult, leading in disparities in revenue and potential between locations.
Sales by marketing: Marks & Spencer is collaborating with researching organisations and
business professionals to forecast its present needs and desires from customers and rivals. M&S's
USP is that it provides high-quality items that have led to the acquisition of around 32 million
consumers. The main drawback of how M&S now works is that company face fierce
competitiveness both locally and internationally. This is due to M&S's competitiveness from
retailers such as Aldi, Tesco, Asda and Lidl. They are also in a conflict with international firms
as a result of their international operations (Holweg and et. al., 2018). However, if Marks and
Spencer define their goals and purposes appropriately, they will be able to surpass such
challenges. Staff members are capable to handle technology more readily when the firm grows as
a result of ongoing training. For consumer encouragement to purchase from M&S, excellent
products are provided and a middle-class consumer could obtain the best quality. M&S goods are
available both in-store and online. The disadvantage will be that, it will be costlier and also there
is chances of geographical duplications.
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