Sales Management in the 21st Century: Analysis and Strategies Report

This report examines sales management within the context of the Back Roads Touring Company, located in London, UK. It begins by outlining key principles of sales management, discussing how these principles may differ based on organizational and consumer behavior. The report then evaluates the...Read More

SALES MANAGEMENT IN
THE 21st CENTURY

TABLE OF CONTENTS
SCENARIO 1...................................................................................................................................3
P1. Key principles of sales management.....................................................................................3
P2. Benefits of sales structure and implementation of several types of sales structure..............4
P.3 Importance of having sales oriented staff and sales distribution channels...........................6
P4. Use of different sales distribution channels..........................................................................6
P5. Key principles and techniques of selling and its contribution in managing guest
relationships................................................................................................................................7
SCENARIO 2...................................................................................................................................8
P6. Importance of developing sales strategies............................................................................8
REFERENCES..............................................................................................................................15

SCENARIO 1
Sales management is the procedure of creating or developing a sales force, implementing
sales methods and coordinating sales operations that permit an organization to consistently
surpass and even hit their sales targets.
The current report is based on Back Roads Touring Company, is located in London, UK.
Principles of sales management will discussed in this study with how these principles may be
different in response to organization and consumer behaviour. Furthermore, this assignment
justified critical evaluation of benefits of sales structure and implementation of various kinds of
sales structure utilizing specific hospitality examples.
It also explains importance of having sales orientated staff & several sales distribution
channels within sector. Moreover, this study clarified key techniques and principles for
successful selling & their support to managing as well as building guest connections.
P1. Key principles of sales management
Manage people individually-
According to this principle, overall effectiveness of consumer or sales services firm is
directly linked to effectiveness of their managers. In order to increase, productivity manager
need to invest in training programs that will reduce turnover and build strong base of repeat &
satisfied consumers that will be leveraged into getting new services. To be successful sales
manager, person cannot manage people in teams (Malininas and et.al., 2017).
Lead by example-
Workers look to management to cater a positive example, in which manager play role as
role model for them. They must follow all processes, standards and policies of organization
effectively. In fact, a successful sales manager has good standards than firm requires, which is
beneficial for them (Sleep and et.al., 2020).
Instill discipline in company-
Manager must make discipline in organization and guide workers how to perform within
effective manner.
Follow golden rules of sales management-

Manager must treat workers equally, without making any differences; everyone needs
and wants to be treated with esteem. When management treats employees like valuable asset,
they will work for organization with full concentration.
Manage on objective information-
When employees despise their manager, it is typically because sales manager does their
job based on choices more than objective information. Everyone is entitled to right opinions, but
they have no place in sales management.
Be goal oriented-
Sales manager, have to establish aims and insist in achieving goals. In several cases, the
only think that manger have in common with their sales people in quest to gain goals. Through
talking about goals and numbers, they will be capable to maintain and instill a goal oriented
operation.
Get on floor-
In order to increase sales and profit margin, manager need to perform in front of people,
they cannot be effective from behind a desk. They need to be included in sales procedure, which
is one of the best ways to become an effective sales manager.
Be direct and to point-
When giving sales people training or coaching, it is important to be straightforward.
Manager must communicate with staff clearly and discuss topic which is essential for business in
term is increasing profit and sales. Employees need to know exactly where they stand and what
they need to do. Through direct, concise and clear conversations, people will get message that
manager can conveying to them.
Above principles of sales management is different in response to customer and firm
behavior. Purchasing behavior of clients is key catalyst for formulation of sales management
procedure and policies. The selling process of company can be distinguished into two modes
such as business to business and business to consumers.
P2. Benefits of sales structure and implementation of several types of sales structure
Sales department of Back Roads Touring Company usually follows a sales structure to
avoid the miscommunication and inappropriate coordination among workers (Sinha and Verma,
2020). Frankly speaking, most firm use some hybrid of sales structure, with sales force size &
market segmentation providing as prime considerations. Sales structure provide benefits to firm

as it help to increase productivity and profitability by managing day to day practices in effective
and systematic manner. It can be said that by choosing right and appropriate sales structure firms
can take gives workers more power in decision making.
Different types of sales structures-
Geographic organizational structure-
It is also called as territorial sales force structure, which means that companies assign
each sales rep to some geographic areas. This kind of sale structure can be implemented in travel
company effectively where the chance of duplication of efforts with consumers are low (Kodama
and et.al., 2017).
Produce sales force structure-
In this structure, sales forces field of accountability is defined by goods or product
groups, avoiding geographical lines. It refer to sales force firm in which salespeople responsible
and specialize in selling only area of organization services are numerous and difficult. In this
structure, sales people know their services especially when it is complex. It need together with
progress of sales management, has led many organizations to adopt product sales force structure,
in which sales force sells along goods lines. This structure deals with simple services or things
that are distributed intensively.
Market bases structure-
This structure is also known as consumers sales force structure, it means that sales reps
are grouped by industry or consumers. It is where Back road touring firm accountability based on
markets they serve. These consumers can come in form of commercial, non-profit and
government or it can be distinguish based on different sectors. Advantage of this structure is
sales reps comprehend needs of their target consumers and build strong relationship with clients.
Functional structure-
In this type of structure, accountabilities are divided up accordant to every worker place
and position in sales procedures, account manager, inside sales and product specialists (Claro
and Ramos, 2018). It is one of the most effective organizational or sales structures which apply
or implement in Back Roads Touring Company where employees according to their specialized
or set roles work towards achieving common goals. It helps organization to organize their staff in
systematic manner which increase productivity level rather than before. It considered as

vertically structures where each section with roles from owner to finance and sales departments
to consumers’ services to workers assigned to one service perform efficiently.
P.3 Importance of having sales oriented staff and sales distribution channels
After the above discussion it is clear that the sales management is very necessary for the
Back Roads Touring Company. This is majorly because of the fact that if the consumer and sales
will not be managed in effective manner then the consumer will not be happy and satisfied.
Hence, for this it is very important for the Back Roads Touring Company to take care of the need
of the consumers (Chapman and Wahlers, 2019). For this the major essential thing is that the
staff of Back Roads Touring Company must be sales oriented. The major reason underlying this
fact is that if the staff of company will be cordial and good with the consumer then the
consumers will like the services of the company.
Hence, the consumers will be more attracted towards the company and will frequently
use the services of the company. For better understanding of the goods and services being
provided by the company it is very necessary for the company to have well versed staff so that
they can interact with the consumers in much better manner.
P4. Use of different sales distribution channels
Also, for this there are many different sales distribution channels which Back Roads
Touring Company can use. These are as follows-
The first and foremost channel of distribution is the official website of the company. This
is a website which is created over internet and here all the details of the company and its goods
and services are listed. This can be checked out by the consumers and accordingly try to
consume the services of the company. Hence, this is a hood medium for company to exchange all
the information with the consumers.
CRM and email marketing- this is another major important technique which is being used
by Back Roads Touring Company in managing the distribution system of company. This is
majorly because of this technique the company is able to manage the consumers and tell them if
there are any new updates in the packages being provided to the consumers.
Meta search ads- this is another important channel for the sales distribution. This is
majorly because of the reason that meta search engines plays a crucial role within the booking of
journey of consumers (Cummins, Peltier and Dixon, 2016). The use of high quality meta search
platform helps the company in assessing proper requirement of the consumers. This includes use

of different property management services (PMS) and the central reservation system (CRS)
which connects the whole company with single software.
P5. Key principles and techniques of selling and its contribution in managing guest relationships
For having good and effective sales it is very important for Back Roads Touring
Company to make use of good principles and techniques which will assist the company in
managing sales. This is necessary because if the sales will be low then the company will not be
able to earn good amount of profits.
The first principle which must be taken care of is that the reputation of the company first
precedes the seller. This principle states that before the company reaches to the consumer its
goodwill or the market value reaches to the consumers. Hence, it is very important for Back
Roads Touring Company to maintain a nice goodwill within the market. This is necessary as if
the goodwill of company will not be good then the consumers will not get attracted towards the
product and services of company. Hence, for increasing the sales of the company it is very
crucial for the company to maintain good market value and condition.
Another major principle is that the selling is more about building relationship with the
consumers. This is majorly pertaining to the fact that if the consumer will not have cordial
relation with the company or the sales person of company will not have effective relation with
the company. Then the sales of the company will reduce as the consumer will not try to deal with
the company as the sales person are not supporting and cordial with others.
With these principles there are also some of the techniques which are essential for the
company to work in effective manner. The techniques used by Back Roads Touring Company
are as follows-
The first and most important technique is the use of social media platform in order to
increase the sales of the company. This is majorly pertaining to the fact that most of the people
are much connected towards the use of social media so if Back Roads Touring company will
advertise with help of social media then more consumers will get attract towards the product and
services of the company.
Another technique for selling is that attach all the features and benefits of the goods and
services along with the advertisement of the goods only (Malek, Sarin and Jaworski, 2018). This
is necessary as this will attract more of the consumers as with the advertisement only they will
come to know about the benefits of the use of goods and services.

Another major technique of increasing the sales for Back Roads Touring Company is to
go for online booking software. This is majorly because of the fact that if the consumer will get
the option of booking their order and packages in advance. This will save the time of consumer
as they will not have to go to the office and search for their package and then order it (Johnston
and Marshall, 2016). Rather the consumer can go over the website of the company and search for
all the options of the company and then book it online only.
In the end it is concluded that managing sales is the most important task in the current
competitive world. This is because if sales will not be managed in proper manner then the
company may face losses. The report stated that key principles of sales management are like
manage people individually, lead by example and many others.
The report also discussed that there are different structures of sales like product sales
force structure, functional structure and many others. Further the importance of sales and
different techniques of sales distribution like CRM and email marketing was discussed. In the
end the principles and techniques of selling was highlighted like use of online booking software,
use of social media and many other technique was discussed.
SCENARIO 2
Sales management is referred to as the process through which the company is able to
manage the sales of the company. This is very important because of the fact that if the
organization will not be able to manage the sales in effective manner then it is possible that the
company will suffer losses. Hence, the current report is based on the company Back Road
Touring Company which is headquartered in London and was founded in the year 1985. The
major speciality of the company is that it is good in organizing small tour, group tours and beaten
track travel and many other travelling services. The current report will evaluate the importance
of developing sales strategy for increasing the profitability of company. Further it will discuss
about the core finance principle which are used to increase the profitability of the company.
P6. Importance of developing sales strategies
By preserving the current sales structure of Back Road Touring Company which is the
functional sales organizational structure and attaining the high profitability is the dream of every
organization. There are different types of techniques that can be used to increase the profitability.
Some of them are stated below.

Increasing penetration in the existing market
The company should focus on what they are good at and selling that thing in the market.
This will be much easier and one of the best techniques to be used to achieve the purpose. It will
be easy and simple because the system is already set and the team knows what and how to do it
(Altin, 2017). The company should stick to its current market and try to grow its market share by
doing what it is good at. It can use its good reputation to exploit the market and increase sales
which will lead to increase in profitability.
Cross promotional sales strategy
In this, the hotel manager is required to identify and evaluate different types of events
taking place throughout the year. Then, the manager should come up with the promotional
strategy that coincide with the event (Martin-Rios and Ciobanu, 2019). Opportunities that the
company can grab and ideal for cross sales promotion strategy includes business conferences,
sports events, concerts, meetings etc.
Seasonal pricing
Under this strategy, the year is divided into blocks based on which price is charged such
as high season, shoulder and low season. This approach results into dropping the room rates in
order to maximize the room occupancy at the last moment (Huynh, 2018). This strategy will help
the company in attracting customers during the off season by giving offers and discounts to the
customers which will consequently led to increase in revenue and profitability of the business.
Guest reward sales strategy
Nowadays, people are particularly interested in getting the rewards which is very much
powerful in millennial generation.Travellers always look for the opportunity to earn rewards and
hotels are having great success with this rewards programs (Basil and Hopper, 2018). Thus, the
company manager should develop the system which will reward the tourist or the travellers who
are their frequent customers and also for referring to the friends and family the about the
company. This strategy will help in increasing the customer base and generating repeat bookings.
From the above described strategies, the most widely used strategy is the seasonal pricing
strategy which helps the businesses in retaining the existing customers and also attracting the
new ones. This strategy is very advantageous and can be used in increasing the revenue and
profitability of the business.
Evaluating finance principles and portfolio management for increasing profitability

In order to effectively navigate the investment plan and the changing financial market
there are few principles which should be kept in mind while investing.The finance principles
mainly focus on the managers, government agencies, employees and investors to do with
financial information which helps in enhancing the return. Few but some crucial principles are
stated below.
Diversify
Diversification is the basic principle for finance and portfolio management which aims at
minimizing the risk associated with the business. It means that business should focus on
investing in different sectors rather than on single sector which help it in the time of down fall in
prices as price of one or two can fall but not of every sector (Chandra, 2017). As a result, it will
help in maintaining the proper balance and reducing the risk level. Thus, Back Road Touring
Company, should make sure that its investments are diversified as it will potentially offset the
impact of poor performing asset in the portfolio. It will not guarantee any gains but is very
effective in managing the risk.
Averaging plan
In this, the consistent amount of savings must be invested in the market irrespective of
good or bad market regularly. It helps in dealing with the market fluctuations easily. Maintain
the written investment statement and saving discipline in order to invest regularly during both
good and bad market (7 Principles of Investing in a Volatile Market. 2018). It is very difficult to
execute as investors always chase towards higher returns by investing in high risk investments.
In other words, it also means that buying at high and selling the investment at the lower price.
The written discipline helps in keeping on track and also sticking to the plan to accomplish better
results and achieve goals of higher profitability.
Investing for the long term
The growth of wealth totally depends upon the time and return which is a powerful
combination. It is always better and advisable to invest in long term investment plan because of
the benefits associated with it (Oliinykand Kozmenko, 2019). The market is very volatile which
led to fluctuation in the prices. The security can be volatile on daily basis. Thus, investments
held for long term will tend to show low volatility as compared to the short-term investments.
Also, it provides tax advantage on capital gains. Thus, it is beneficial for the company to invest
more in the long-term investment plans.

Focus on what can be controlled
The investor should try to exercise control over the portfolio. As the investment is based
on certain goals or objectives and according to which level of risk and security is selected. As
and when it is seemed that the market is not going good and will affect the investment then in
that case proper steps should be taken or strategies need to be formulated in order to achieve the
required objectives and avoid the risk of losing money. Therefore, this principle is very essential
for effective management of the portfolio.
Rebalance on a timely basis
In this principle, the investor is required to actively look after the investment policy and
portfolio by buying low and selling at high. The investor is also required to reallocate its
portfolio to maintain the proper balance of investment mix. Asset allocation is the process in
which investments made in different asset classes are reallocated. It is basically the investment
strategy the main objective of which is to systematically placing the money in order to achieve
higher return. It involves stocks, bonds and cash equivalents.Another benefit of asset allocation
is that it helps in minimizing the risk level and maintain the average return on investment.
Maintain liquidity
According to this principle, it is essential for the businesses to maintain a minimum level
of liquidity which can be used at the hard times. It refers to converting assets into cash as quickly
as possible (Horlachand et.al, 2018).Managing the liquidity helps in meeting up with the daily
business needs. If the company is having adequate amount of cash or cash equivalent it is good
sign and is mostly preferred by the investors and other users of financial statement.
Normal market volatility
Market fluctuation is normal and it is the part of the game.The investor should not get
hyper or tense over the changing market condition son the daily basis. Mostly, the short-term
impact is more adverse in comparison to the long term.Thus, it is not advisable to take decisions
based on the market volatility for shorter period (Boyle, 2016). The market decline and
fluctuations are very normal and is very much expected in investment for potential future
growth.Short term volatility has a connection with the long-term investor as it creates develops
opportunity by lowering the price of the asset for making purchase.
Emotional balance

Investor is required to balance the behaviour and emotions all together. This is because
expecting more return in a shorter period does not make sense and is also termed as doing a
wrong business.Also, the investor needs to monitor the behaviour as well as make adjustment to
the asset allocation which drives potential investment returns which in turn impact the ability to
achieve the goals.
Thus, all the above discussed principles need to be taken care off for effective portfolio
management which helps in achieving the desired results in terms of increased profitability and
competitive edge to the business. There are different investment types but choosing the right one
is very crucial. Also, the investment type selected is also influenced by various factors. There are
various models that can be used in order to monitor and measure the performance of portfolio
management.
Critical evaluation of recommendations on sales structure to improve financial viability of the
business
The functional organizational structure plays an important role in enhancing and
upgrading the financial viability of the business. It has a major impact on the revenue of the Back
Road Touring Company. In this type of sales organizational structure, the sales activities are
divided as per the functions to be carried out. It includes sales planning, sales and distribution
function, managing the sales personnel, market research, advertising and sales promotion etc. In
this special attention is given to each and every activity which helps in increasing the profit.
The major advantage of this system is that it helps in achieving specialization at different
levels, number of departments can be either increased or decreased as per the requirement
(Shital, 2020). It also helps in quick decision making and also establishes proper and structured
coordination with the sub-functions along with certain exceptions. All this will lead to more
effective selling activities.
In contrast to the advantages, there are certain demerits that are required to be taken into
account. First is, individual attention cannot be given to a particular product as focus is made on
individual activities. Next is, it may sometimes lead to delay in the functioning of sub-
departments just because they are dependent on the other departments (Moser and et.al, 2019).
With the increased responsibility of sales manager, may arise the situation of improper
coordination. Along with that, the problems relating to non-cooperation and difference in opinion

may arise among the departments. Last but the major drawback is that any malfunctioning of the
department will adversely affect the overall efficiency of the organization as a whole.
Thus, implementing the good organizational structure is very beneficial in different
aspect which all together leads to the common objective of increasing revenue and
profitability.Following are the requirements of the effective sales organizational structure that
can lead to improving the financial viability of the business.
 Identifying the sales talent
 Defining the proper reporting structure
 Defining the each and every employees job responsibility
 Creating framework for replacement in the department
 Analysing the top performers
 Providing extra room for talent development
 Putting right person at the right place
In the end it is concluded that the managing the sales is very important for the working
and operating the business in the highly competitive world. This is because of the fact that if the
company will not be able to manage its sales then it might be in a losing position as the company
will not have many consumers. Hence, for this the report analysed some of the sales strategies
which will help company in managing its sales. For this the importance of using sales strategies
like increase in profit, goodwill etc was discussed. In the end the discussion took place over the
different finance principles which can help company in increasing its profitability. These
principles were like diversify, long term investment etc. and the use of these principle results in
increasing the competitive advantage over other competitors.

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