HND Unit 32: Sales Management in Service Sector Report 2020-21

This report provides a comprehensive analysis of sales management within the service sector, specifically focusing on the hospitality industry. It begins by outlining the key principles of sales management, including the importance of sales planning, various selling methods such as SPIN and SNAP selling, and the significance of sales reporting. The report then evaluates the benefits of different sales structures, using TUI as an organizational example, and explores the concept of 'selling through others'. Furthermore, it delves into the key principles and techniques for successful selling, emphasizing their contribution to building and managing customer relationships. Finally, the report examines the importance of developing effective sales strategies that yield high profitability and incorporates account management within sales structures. The report highlights the application of these concepts within the context of TUI, a major player in the travel and tourism industry, providing practical examples and insights into real-world sales management practices.

Sales Management in
Service Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the key principles of sales management in relation to the importance of sales
planning, methods of selling and sales reporting...................................................................3
P2 Evaluate the benefits of sales structures and how they are organised using specific
organisational examples.........................................................................................................6
Benefits of sales structures.....................................................................................................6
TASK 2............................................................................................................................................6
P3 Explain the importance and advantages of the concept of ‘selling through others”........6
TASK 3............................................................................................................................................7
P4 Analyse the key principles and techniques for successful selling and how they contribute
to building and managing customer relationships in application to specific organisational
examples.................................................................................................................................7
TASK 4............................................................................................................................................9
P5 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures...................................................9
Importance of developing sales strategies..............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Sales management is a basic process of development of a sales force, coordination of
sales operations and further implementation of the process of sales management. Present report is
based on making analysis of the way travel and tourism industry is focusing in use of different
sales management techniques according to the methods of selling. Present report is based on
Thomson travel group plc that was formed by Thomson corporation of Canada and it was
renamed as TUI AG in the year 2002 (Syam and Sharma, 2018). There is analysis of key
principles of sales planning, benefits of sales structure, importance of the selling, analysing the
techniques of successful selling that can contribute towards managing of customer relationship.
Based on it further sales strategies are to be developed to yield higher profitability.
TASK 1
P1 Explain the key principles of sales management in relation to the importance of sales
planning, methods of selling and sales reporting
Fundamental principles of sales management: some of principles of sales management are
mentioned below:
Managing people individually: For being successful sales department of TUI is working towards
managing their customers as individual units and not as collective segment. In case of hospitality
and the service sector there is highly complex structure of the dynamic range of customer tastes
and preferences. So there is need to analyse the individual customer requirements so that further
marketing & sales strategies are to be customised accordance with such specific needs of
customers (Misra, 2019).
Leading by example: in the sales department employees have to work by following the principle
of leading by a positive example. In TUI there is adherence to all types of procedures, policies
and standards laid by the top management.
Managing of objective information: sales management involves to perform their job based on
the available objective information and not on the basis of personal opinion. Training, coaching
and discipline are some of the aspects that are part of sales management team in TUI where
decisions are taken based on performance metrics and objective information.

Importance of sales planning: Sales planning is very crucial for organisations for the purpose og
planning unforeseen risks that have to be overcome. In TUI sales planning process a benchmark
where the organisation has to reach so that their plan can be modified accordingly. It leads to
driving of creative thinking and enhancing focus for a better picture (Claro and Ramos, 2018) .
(Source: The Importance of Sales Planning, 2020)
Importance and types of selling methods:
Methods of selling: There are different types of selling methods as mentioned below:
SPIN selling: in this the sales person has to identify a situation, problem, implication and need
pay off. This method assist in making the prospect aware of the problems that has to be solved,
implication focusses on negative aspect and need pay off helps in grasping value (Stankic,
Sadricand Perovic, 2019).
SNAP selling: Buyers are general overloaded with information. SNAP selling focuses on way
customers are making decisions so that they can be positively influenced.

(Source: Sales techniques: 5 highly effective modern sales methods, 2021)
It helps in developing understanding the way touch points can be approached via e mail, phone.
Challenger sale: this method splits B2B sales in 5 personas that is hard workers, relationship
builders, reactive problem solvers & challengers.
Sandler sale method: it encourages sales people to act more reliable and as a trustworthy source.
It facilitates in depth heart to heart discussion that is beyond technical issues. In TUI being part
of tourism industry there is focus on using of sandler method as buyers are willing to make a in
depth conversation with the management to clear all their doubts and then move towards sales
(Devaganesh, Dilipan and Abirami, 2020).
Solution or consultative selling: In this technique sales person is acting as a expert by asking of
questions to determine the need of prospects. The goal is to form a long term bond by keeping
customer first. It is based on six principles as mentioned below:
(Source: Sales techniques: 5 highly effective modern sales methods, 2021)
Importance of Sales reporting:

Sales report provides a basic overview of the state of sales activities in a organisation. It depicts
the trends that are happening in sales volume at a definite time period to analyse the steps of
sales funnel & overall performance of sales executives. In TUI there is regular preparation of
sales report to find the new potential market opportunities that can lead to improve the results by
application of sales reporting software (Terada, Yamanaka and Oda, FANUC Corp, 2020).
Sales report are also necessarily required to be prepared in TUI as it helps the top management in
developing a understanding of the challenge associated with workforce and the way corrective
measures can be taken, it provide daily updates yo make informed decision by focusing on
available resources.
P2 Evaluate the benefits of sales structures and how they are organised using specific
organisational examples
Sales structure basically provides a systematic structure of inside and outside model in the way
sales are being organised by a organisation. There are different types of sales structure that are to
be adopted by organisation according to the types of products they are dealing, target market and
suitability at a particular point of time.
Different types of sales structure:
Geographic organisation structure: in these structure the organisation assigns each sales
according to geographic area. It leads to proper territory management and lower duplication of
efforts.
Product sales force structure: in this the responsibility of sales force is defined by product
groups and products by ignoring the biogeographical lines.
Market based structure: It is also known as customer sales force structure where the sale reps
are grouped by industry or customers.
Functional structure: in this responsibility are divided according to place hold by different
individuals that includes account managers, inside sales, product specialists.
In TUI there is use of geographical structure for selling operations as they have
grouped them in three regions that includes the northern region of UK and Ireland, Russia,
Canada. Another is central region which includes locations such as Austria, Germany, Poland
and Switzerland. Third region is western region that includes France, Netherlands and Belgium.
The major source markets of sales for TUI is UK, Germany, Nordics, Belgium, Switzerland,

Austria and France (BUSINESS OPERATIONS ARE GROUPED INTO THREE REGIONS,
2021).
Benefits of sales structures
In TUI sales structure leads to clarity of responsibility across sales as sales
representatives understand about their responsibility according to different service types that they
are offering. It is also offering them with high amount of communication which provides
mobility for the sales force and increase time for actual selling (Syahputra, 2018). It is leading to
selling activities taking place in assigned areas and branch sales managers are able to adjust
marketing plan according to the prospective customer needs.
TASK 2
P3 Explain the importance and advantages of the concept of ‘selling through others”
Selling through intermediaries or others is a cost effective way of reaching to end customers. If
business customers have to be targetted. So, there is need to manage the distributors. Networking
organisations are there for building up of meaningful and long lasting relationships in the
professional business circles.
Importance and advantages of the concept of ‘selling through others’.
Selling by use of various intermediaries is a cost effective way of reaching to the end
customers instead of selling them directly. Selling directly may not be a realistic option so there
is need to aim to supply wholesalers who posses lasting relationship with business (Peterson,
2020).
In context of tourism and the hospitality sector there has been a shifting focus towards use of the
concept of selling through others. This can be applied in case of outsourcing of their marketing
and selling activities to other organisations who posses required specialisation in such functions.
Such as with the changing trend there is more use of digital marketing strategies for he purpose
of attracting of customers. As it leads to higher customer engagement and better communication
channels with them.
Further, in TUI there is emphasis on develoepmnt of a suitable tourism distribution
channel that includes the network of intermediaries that can facilitate the delivery and selling of
product & services especially to their target segment of customers. Tourism distribution channels
can be distinguished from the tangible products that are conveyed to customers,. In case of

tourism industry the use of communication and information technology has transformed the way
there is evolution of additional layers & categories in emerging intermediaries that has Changed
the structure of tourism distribution channels in a high complex issue.
TASK 3
P4 Analyse the key principles and techniques for successful selling and how they contribute to
building and managing customer relationships in application to specific organisational
examples
There are some of the principle that are very crucial for the purpose of successful selling as
mentioned below:
Influencing drives product value:
Influencing is ability of sales person to persuade others. In case of TUI the sales representatives
are willing to use technique to create a appeal to customers by influencing their emotions to
increase their sales. It leads to building up of high credibility.
Selling yourself before selling of product:
There is need to successfully communicate the product value till the time it is difficult to actually
sell the product and services. In context of Tourism industry e mail marketing is one of the msot
effective lead generation strategy that is followed by content marketing and website/landing
pages. Learning the way of selling is critical for success of a organisation to build up a bets
communication of the core values of brand.
Building of interest with features and desire with benefits: Many organisations and people are
willing to sell products because of their best features. Selling with generation of benefits for
customers is important to be transparent for customers. As it is based on the cognitive function.
Selling the results by a clear picture: in present scenario there is a new generation of customer
segment that is the millennial generation. Who are unique set of people born in year 1982 – 200
that is 26 percent of whole population. To achieve success by satisfying this segment of
customers there is need to focus on solid research and collected information (Ružić, Benazić and
Tezzele, 2018).
Credibility depends on expertise and trust:
Selling more leads to higher profitability. There can be building up of credibility by many ways
that includes providing of top customer services. Customers are willing to reach agent that can

lead to resolving of problems. There is interaction with real problems, access of information to
resolve issues. Trust + expertise = credibility. Customers cognitive functions are related to
developing trust for the product.
Producing valuable content regularly: In case of hospitality and service industry it becomes
more crucial to create content regularly so that it can lead to enhancement of creation of custom
content. In TUI this technique assist in solving of relevant problems as when the sales
management team posses unique set of skills then it leads to solving of relevant problems for the
target segment of customers.
Contribution towards managing of customer relationships:
Effective sales techniques are very crucial for the purpose of developing and managing
of customer relationship for a longer time period. In TUI when there is development of sales
strategies by application of principles that includes trust, expertise valuable content all this leads
to enhancement in the present loyal base off customers as it is a part of indirect positive
marketing for a organisation. Such acts lead to building up of trust between the customers which
prevents them for switching to any other competitive brand in TUI it can be Travelodge that is
offering similar services as there is building up of a trustworthy relationship with the
organisation that is because of the importance that is laid on customer demands and expectation
from TUI.
TASK 4
P5 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management within sales structures
Importance of developing sales strategies
A sales strategy allows to agree the customer needs at each stage. Assisting new customers
required a different approach as Compared to helping present base of customers. New target
segment of customers have to be made aware about the features and functionality of the different
types of characteristics associated with a services.
The defining differences between successful sales leaders and unsuccessful sales leader is the
ability to drive sales strategy execution. The large portion of the success is attributed towards
managing of account abilities. Sales strategy is focusing on plan to meet annual business
objectives and ensure long run viability to drive future shareholder value.

Improvement of return on investment: A suitable sales strategy provides a big picture of the
present sales structure of organisation. It provides answers to many questions that includes
obtaining of new customer, fetching result for making new efforts in required direction, the areas
better than cost. All this leads to development of a specific sales tactics.
Sales strategy assist in hiring of right people: In TUI, Hiring right employees is very necessary
for achievement of higher growth in a organisation. This clarity leads to hiring People who
posses the required level of expertise and skills for achievement of the laid objectives.
Setting of future sales goal: with the help of analysing the past sales and sales strategies future
goals can be easily set in a organisation. So, sales funnel analysis is a technique that can be
adopted for the purpose of setting of future marketing and sales goals that is required to attract
right customers.
Incorporating account management within sales structures
Financial or account managers are expected to provide services and deal with issues so
that there can be maximisation of ROI. This can be developed by additional selling of products
or services. Accounting managers are also focusing on achievement of higher growth by
connection of multiple products together to deal with complex situations.
In context of TUI, the account management is mainly focusing on not towards
encouraging of higher growth but also dealing with the losses that has been faced by business.
Especial because of the fast changing external environment in the COVID pandemic the major
focus has been Shift to allow account managers to prioritize the retention of existing customers
to expand their account based on a anti shrinkage system.
The challenge is to deal with the prevailing mindset of account management organization
to provide exceptional services that can drive growth by exceeding customer expectations. So
when there are two choices that is service oriented activities and explicit growth strategies the
financial managers are generally focusing towards service oriented activities that can eventually
lead to higher growth.
successful portfolio management
Customer portfolio is a tool that is used by organisations for the purpose of developing
communication relationship with other customers. It is related with application of technology
such as ERP, CRM or other database that can store the information.

Portfolio management is a tool that helps business to develop a detail understand about the
customer needs, demands and further it can assist in making the required categorisation. When
there is proper segmentation then it leads to better understanding of the revelation understand of
each factor affecting customer demand. Each customer represents the relative to total
profitability and sales. In TUI such portfolio management of customers is leading towards future
sales marketing strategy such as there is development of special offers for loyal customer base.
There is timely communication of such offers, discount vouchers to such loyal customer Base.

CONCLUSION
It can be concluded from the above mentioned information that there are different
associated aspects of a suitable sales management strategy that is required to be formulated
properly in order to achieve higher sales & profitability in long run. There is need to focus on
developing a suitable sales structure that can contribute according to the customer expectations.
All this efforts leads towards effective customer relationship management system that can help in
increasing the brand relationship with their customers.