Sales Management in Tourism Sector: Principles and Strategies Report

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This report analyzes sales management principles within the context of the tourism sector, using Rosewoods as a case study. It begins by defining sales management and its key principles, including sales planning, selling methods (upselling, cross-selling, down-selling, B2B, and B2C), sales reporting, and customer relationship management. The report then examines sales structures, highlighting their benefits such as clarity in role distribution, clear direction, employee motivation, and improved coordination. It also explores 'selling through others,' focusing on distribution channels like online travel agents, global distribution systems, and social media. Furthermore, the report delves into key principles for successful selling, including lead generation (cold, warm, hot leads), sales pitches, and closing techniques (concession and assumptive closes). Finally, the report emphasizes the importance of sales strategies for achieving high profitability, covering goal setting and monitoring sales team performance. The report concludes by summarizing the key findings and emphasizing the significance of these principles for achieving efficient economic growth in the tourism sector.
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Unit 45: Sales Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1: Principles of sales management- ..........................................................................................3
P2: Sales structures-.....................................................................................................................4
P3: Selling through others- .........................................................................................................6
P4: Key principles for successful selling;....................................................................................7
P5: Sales strategies and increased profitability............................................................................8
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10
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INTRODUCTION
Rosewoods is the chosen organization for the evaluation in this report, the company tend
to provide luxury hotel services to its customers all across the globe at high pricing. Evaluation
of the key principles of sales planning is done in this report, with that identification of sales
benefits which are associated with the sales structure is also done in the report. Analysis of key
techniques and principles associated with the successful selling is evaluated in the report. With
that evaluation on importance of sales strategies for achieving high profitability is analysed in
report.
MAIN BODY
P1: Principles of sales management-
Sales management is the process for developing coordinating sales operations, developing sales
forces and also tend to implement several sales techniques and methods through which
organizational sales can be increased.
Planning- Sales planning is the process through which future work related operational working
is being develop on which basis company tend to develop its working strategies so that it is able
to achieve its desired target. Sales planning is important for organizations like Rosewoods
because company has to ensure that it is able to integrate all the factors within the working
process like which are able to affect the organizational working strategies (Peterson, Albaum and
Crittenden, 2020). This include factors like demand management and sales forecasting, through
which it can analyse the product's availability in the market and set pricing accordingly so the
high profit margin can be achieved. This is important for Rosewoods that it develop sales
planning for long terms and by integrating all the other factors through which it can make sure
that company is able to achieve an efficient economic growth.
Selling- Selling is the process in which products and services are being exchanged with the
customers in such a way that company is able to achieve a appropriate return in context to the
capital investments which it has done for achieving a desired revenue collection.
Up-selling- This is type of selling in which the organizational employee tend to showcase the
higher version of the products which they want to achieve and because of which is being able to
increase the revenue collection for the company (Anderson and et.al., 2020). This will be
effective for Rosewoods because company tend to provide luxury services to their customers
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because of which through up-selling employees can improve customer services and manages to
achieve high profit margin while achieving customer satisfaction.
Cross-selling- In this selling methods employees often tend to showcase additional products and
services to the customers with creative discount options through which it can increase the
purchasing of the customers and manages to increase the organizational sales of other products
as well. This can be integrated in Rosewoods by showcasing additional organizational services to
the customers so that organizational sales and profit margin can be increased.
Down-selling- This is an exact opposite of up-selling in which lower level of products and
services are being showcased to the customers through which company tend to influence
customers that it is being able to fulfil their requirements. This can be implemented by
Rosewoods for motivating customers that they can achieve organizational services at low pricing
as well which will increase their loyalty towards the company.
B2B and B2C- Business to Business is the different type of selling in which the process of
buying and selling is often limited within organization and similarly Business to customers is the
traditional method in which organizations tend to sell their products directly to the customers.
This can be seen in case of Rosewoods in which company tend to provide its services directly to
the customers.
Sales Reporting- Sales report is the process of recording organizational sales for a particular
period of time through which it can identify the factors which are contributing in increasing the
organizational revenue collection (Gammoh and et.al., 2018). Thus for identifying the prime
factors for achieving high sales organizations like Rosewoods have to monitor its performance
and then develop strategies on that basis so that profit margin can be increased. Customer
Relationship Management is the organizational approach in which it tend to improvise its
communication bridge with the customers so that their loyalty and organizational sales can be
increased simultaneously.
P2: Sales structures-
It is the type of segmentation which is being utilized by organizations to segregate the
organizational sales team into smaller specialized groups for achieving different sales related
objective through which company can achieve high level of work productivity. This is often used
by organization to reach a wide range of customers and achieve a high organizational sales.
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Benefits of sales structure- Through segmenting the sales team company can make sure that it
is able to achieve high level of work productivity and simultaneously organizational sales is also
being through which efficient economic growth is being achieved. Following are the benefits
which are being achieved through sales structure.
1. Clarity in role distribution- Organizational teams are being developed and due to which
all the responsible employees are able to identify their roles and responsibilities, so that
they can self analyse their performance and make improvisations in working patterns
(Billups and Poddar, 2018).
2. Provide clear direction- Developing organizational structure will enable organization to
analyse its current working structure with different perspectives through which it can
ensure that it is able to company is able to analyse the required work rate and is working
according to the required work rate for achieving high sales.
3. Motivate employees- Organizational structure will enable organizational teams to
identify their working procedures through which they can make appropriate
improvisations in their working so that they can achieve better performance. This
motivates employees to implement appropriate changes, to achieve high work
productivity.
4. Improves coordination between employees- Organizational structure tend to influence
employees to collaborate their efforts through which it can achieve high work
productivity and therefore it increases inter coordination between employees. This is
collaborative integrated approach will increase the overall revenue collection of the
company will provide an efficient economic background, so that chances of goal
achievement can be increased.
Monitoring and leading the sales team- Organizations like Rosewoods has to make sure that it
is able to achieve high level of work productivity and high organizational sales and because of
which it has to continuously monitor the organizational working procedure (Vladimirovich,
2020). Therefore by segmenting the sales team into smaller groups evaluation of team
performance can be made simpler and pin point improvisations can be made accordingly.
managing sales forces
Goal setting- The organizational sales team tend to ensure that it is able to achieve a high level
of work productivity and because of which has to make concentrated efforts for setting
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organizational target. Through this it tend to develop organizational working strategies so that
desired sales target can be achieve at low expenditures and achieving high returns.
P3: Selling through others-
This is an effective way through which organizations tend to sell organizational products to the
intermediates and then selling of products is being done from the intermediates side. Due to
which is an efficient way through which organizational expenditures made on distributing
products is being reduced because company uses the distribution channels which are being
established by others.
Distribution channels is the way through which organizational products and services are being
reached to the wide range of customers for achieving organizational sales. It is important for
organizations that it tend to achieve different distribution channels because through which it can
make sure that it is able to reach customers are different locations as well by which it can achieve
high level of organizational sales and profit margin can also be increased (Vijaivargia and Garg,
2019). Distribution channels are of different types which are as following-
1. Online travel Agents (OTA)- This is an online platform which tend to provide
customers an ability to identify the type of services which it provided by the company
which in this case is Rosewoods. Thus on that basis customers can make contact with the
company.
Advantage- Customers are increasing their engagement in online activities because of which is
an efficient and trendy way to attract customers.
2. Global Distributions System- This is an computerised network facility through which
which tend to facilitates the transaction between travel service providers and travel agents
through which companies tend to attract different customers.
Advantage- This is an effective way through which brand awareness is increased and also
customer sales is also enhanced.
3. Social Media- Social media is playing a significant role in promoting and advertising
organizational products and services to the customers and because of which is being
utilized by several organizations to develop efficient communication bridge with the
customers.
Advantage- High organizations brand awareness is being achieved at low expenditures through
which company can increase customer loyalty with the organization.
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It is important for organization to implement integrated approach on employing various
distribution channels through which it can ensure that it is being able to achieve high
productivity and also at the same time is able to reach different customers at different location.
Global distribution channel will be highly beneficial for Rosewoods because company tend to
provide its luxury hospitality services to the customers and by increasing its appearance in other
geographic areas it can achieve high organizational sales and will achieve increased revenue
collection (Suvagondha, 2018). With that Online travel agents is also an important factor through
which company can achieve high customer base and also empower them to book the type of
service which they want to achieve.
P4: Key principles for successful selling;
Organizations have to ensure that they are being able to achieve high level of organizational
sales through which they can achieve an efficient economic growth. Due to this it has to
segregate customers on the basis of their engagement with the organization and this are
categorised into two different leads which are as following.
Cold lead: Customers having an casual level of engagement with the organization and because
of which company can utilize them as an appropriate candidate for the re-engagement through
which it can reduce the chances of brand switching for the customers.
Warm lead: This type of customers are having high level of interest in the organizational
activities however chances of brand switching is high for this type of employees.
Hot leads: Customers which are having high level of interest in the organizational activities and
are an good fit for achieving high organizational engagement are chosen in this type of lead.
their contribution in customer relationship (Shields, 2017).
Sales pitch: Sales pitch is the effective way through organizational employee is able to showcase
the organizational products and services which are being provided to the customers and on the
basis customers tend to identify the level of services which they achieve by developing their
direct contact with Marriott. Therefore it is important for organization that it is able to provide
efficient training to its employees, so that it can establish uniformity in the services.
Technique of successful selling:
Organizations like Marriott have to develop organizational structure in such a way that it is able
to develop an efficient relationship with the customers such that it is able to identify their
requirements through which it can develop a efficient communication bridge with them. This is
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important because organizations like Marriott’s has to maintain its efficient level of engagement
with the customers such that it is able to maintain its economical growth.
Concession close- This is a closing method in which the salesperson tend to utilize its sales
experience as an closing option through which it tend to make sure that customers' experience
with the company is not being affected.
Assumptive close- This is a closing method in which organizations tend analyse the reduced
level of engagement with the customers and understand the closing of the deal through which it
tend to stop the organizational activities with the customers.
Take away close- This is a closing deal which is often being utilized by organizations when the
customer is not being able to continue the deal which it has made and tend to provide an ability
to take away the proposal as an closing statement (Childs and et.al., 2019).
P5: Sales strategies and increased profitability
Organizations like Rosewoods have to ensure that it is able to achieve high level of
organizational sales through which it can achieve high profitability which will provide company
an efficient economic growth. Following are the different ways through which company can
achieve increased profitability.
1. Growth of the business- Company can achieve high organizational sales by increasing
company's market share and through which it can make sure that company is able to
reach wide range of customers. Through this it can ensure that organizational sales will
increase organizational efficient economic growth and through which it can achieve high
profitability.
2. Financial planning- Rosewoods can also tend to do financial planning through which it
can make sure that it is able to integrate all the responsible stakeholders which are able to
increase the organizational expenditures (Ahya and Ridwan, 2020). This financial
planning will also be useful for reducing organizational expenditures which will provide
company an efficient economical background.
3. Diversification- Company can also tend to make sure that it is able to implement diversity
at its work area and product placement through which it can make sure that it is able to
implement customer diversity which will increase the chances of goal achievement for
the organization.
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4. Invest in the long term- Organizations like Rosewoods have to invest its capital
economical growth in different long term planning so that it can make sure that it is
having a efficient cash flow within the organization to maintain its sustanibility in the
changing market (Thaichon and et.al., 2018). Therefore through investing capital amount
in other long term plans organizations can ensure that it is able to achieve a proper
amount of return through which its requirements for implementing change can be
fulfilled.
5. Maintaining liquidity- In order to minimize the organizational expenditures company
have to closely monitor its assets and often tend to implement liquidity. Through which it
can make sure that it is able to develop a additional source of revenue generation through
which company's sustanibility can be increased (Byun, 2018).
CONCLUSION
From the evaluation in the report it can be evaluated that organizations have to implement
several creative ways through which it can achieve high level of work productivity and high
economic growth. Thus with that it also has to ensure that capital investments have to be done by
evaluating the type of work requirements which is required to achieve a desired target for
ensuring the company is able to achieve its desired target. Thus with that it also tend to ensure
that company is able to develop efficient work related planning through which appropriate target
can be identified and work improvisations can be made accordingly. With that company also has
to analyse the different distribution channels through which it can achieve high reach to
customers and that too at an reduced organizational expenditure.
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REFERENCE
Books & Journals
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Ahya, B.B. and Ridwan, A.Y., 2020. BUILDING GREEN ENTERPRISE RESOURCE
PLANNING SYSTEM ON SALES MANAGEMENT MODULE FOR THE
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Anderson, R.E and et.al., 2020. Provenance, evolution, and transition of personal selling and
sales management to strategic marketing channel management. Journal of Marketing
Channels. 26(1). pp.28-42.
Billups, M.J. and Poddar, A., 2018. Entry-level Salesperson Selection: An Engaging Experiential
Exercise for Sales Management Students. Journal for Advancement of Marketing
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Byun, D.H., 2018. Development of a Sales Support Application Based on E-Business Cards. The
Journal of the Korea Contents Association. 18(5). pp.464-471.
Childs, D.R and et.al., 2019. A within-person theoretical perspective in sales research: outlining
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Gammoh, B.S and et.al., 2018. The role of salesperson brand selling confidence in enhancing
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Shields, J., 2017. Personal Selling and Sales Management.
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Thaichon, P and et.al., 2018. Hybrid sales structures in the age of e-commerce. Journal of
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Vijaivargia, S. and Garg, H.K., 2019. A Framework of Lean ERP Focusing MSMEs for Sales
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Vladimirovich, K.M., 2020. Future Marketing in B2B Segment: Integrating Artificial
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