Sales Management Report: Analysis of UPS Sales Structure and Strategy

This report provides a comprehensive analysis of sales management principles applied to United Parcel Service (UPS). It begins with an overview of UPS, highlighting its global presence and competitive landscape. The report delves into the core principles of sales management, such as building customer relationships, understanding the value proposition, pricing strategies, and the importance of closing sales. It then examines UPS's sales process and structure, including its supply chain system, indirect selling methods, and online transaction capabilities. A detailed sales strategy is devised for UPS, incorporating recommendations for improvement. The report concludes with actionable recommendations to enhance UPS's sales operations, focusing on customer relationship management and overall sales effectiveness. The assignment provides a strong understanding of sales management principles and their practical application within a major international company.

Running head: SALES MANAGEMENT
Sales Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
1. Company Overview – United Parcel Service...........................................................................2
1. Understanding how the Principles of Sales Management can be applied to United Parcel
Service.............................................................................................................................................3
2. Sales Process and Sales Structure of UPS................................................................................6
3. Devising a Sales Strategy for UPS.........................................................................................12
4. Recommendations..................................................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

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Introduction
Sales management refers to the process by which a sales force is developed, sales
operations are coordinated and sales techniques are implemented. Sales management is
something that every business needs to engage in, if it wants to hit its business target in a
consistent fashion and if it wants to surpass its sales target in each and every business quarter
(Ingram et al. 2015). This assignment will prepare a sales management report for United Parcel
Service, which is an internationally renowned packaging service that is headquartered in the
USA and which runs operations in each and every part of the globe. Based on the scenario
provided, the report will be written from the perspective of a sales manager of UP and will
discuss the key principles of sales management, the sales structure of UPS, how the company
engages in customer relationship management and will also outline a good sales strategy for the
company to implement. The report will conclude by providing a list of recommendations on how
the company can bring about an improvement in the way by which it runs its sales operations
and this will be done after evaluating the customer portfolio of the company.
1. Company Overview – United Parcel Service
United Parcel Service is a multinational supply chain management and package delivery
company which runs operations from the USA. It runs a number of cargo airline and drone
airline delivery operations in order to ensure that its packaging and delivery services are
executed with finesse not just in the USA but in other parts of the world as well. United Parcel
Service has made a name for itself over the years because of the professionalism that it accords
to its delivery services. Packages are delivered in a timely manner as are other types of supplies,

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with customers finding little or no reason to complain about the way by which services are
rendered by the company. Of course the company has quite a few competitors and rivals
worldwide such as Fed Ex and United States Postal Service but the efficiency that United Parcel
Service is seen to accord to its delivery service makes it stand out amongst its competitors both
in the USA as well as in other parts of the world, with its main competitors at the international
level being Deutsche Post and DHL.
The following sections will discuss in detail, how the sales services of United Parcel Service can
be improved upon.
1. Understanding how the Principles of Sales Management can be applied
to United Parcel Service
One of the most important or key principles of sales management is that selling a product
demands entering into positive and long term relationships with customers. When a product is
sold, an effort needs to be made on the part of the seller to create a positive impression about
both the product and the seller before the customer. By doing so, the seller is going to do a
successful job of influencing the customer to make a purchase from the seller again in the future,
and which is something that the customer is likely to do again if the product turns out to be of a
superior quality (Malek et al. 2018). Customer relationships always have to be maintained by
businesses if they wish to create a client base that is extensive and which is likely to remain
extensive for a long time to come. Customers need to know that they are getting value for the
money that they pay for the goods and services that they buy and sellers who maintain strong,
positive and long term relationships with their customers are always able to at least meet their
sales targets in every business quarter if not overshoot this sales target. Another important

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principle of sales management is that sale value is not really concerned with the product or
service that is being offered as such but how effectively this product or service is able to resolve
the problems of customers (Malek et al. 2018). A product or service is something that is likely to
do well in the market, that is, sell well, if it is capable of meeting the needs and requirements of
customers and resolve problems that they may face in the everyday. For instance, a makeup
product helps a customer who is not naturally beautiful to look good in public, a skin care
product can help a customer who is faced with acne problems to cure the acne and have skin that
is free from blemishes once again. Sale value is therefore directly related to how effectively the
product resolves problems for customers. The product or service is going to sell if it
conveniences the life of the customer in some way or the other, if it improves the quality of their
life on a day to day basis (Cummins et al. 2016).
A third important principle of sales management that is worth keeping in mind, given the
scenario that is to be analyzed is that value and price are two things that go hand in hand. The
price of the product or the service that is being offered should be directly related to the value of
the product (Agnihotri et al., 2016). The price can never be lower than the product value because
if it is, it is not only going to result in huge losses for the business owner but it will also
destabilize the entire market or industry that exists for that particular product. The price of the
product should be designed or created in a way that it reflects the actual market value of the
product that is being sold, and the same principle of sales management is one that applies for
services as well. The fourth vital principle of sales management is that a sale cannot occur until
and unless the sale is closed. In other words, the sale has to go through and the product or service
that is being sold has to be marketed, the transaction has to take place and profit has to accrue
from the sales process (Albers et al. 2015). A business owner cannot be content with marketing

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and sales operations until and unless the deals are actually seen to go through. Customers have to
be convinced about the fact that the product or service that is being sold to them is good for
them, that they should consider buying the product and that if they do, they will be certain not to
get disappointed. Customers have to be persuaded by the sales authorities that what it is that they
are about to buy is something that is worth buying and all efforts have to be concentrated on
getting the product or service sold, and the deal closed. Once this is done and the customer has
actually ended up buying the product or service that was being marketed, a conclusion can be
drawn that the sale process has actually taken place and that it was concluded with success
(Avdin and Kava 2016).
The final important principle of sales management is that those who listen with care are
the people who win. Listening with care is something that involves being responsive to the
market situation and market realities when doing business and when engaging in the sales
process. The principles of sales management are those that need to be effectively applied to
important processes such as sales planning, sales methods and the reporting of sales. How the
products and services are going to be sold is something that needs to be well planned and
organized in order for the products and services to catch the attention of customers as soon as
these are launched in the market (Brashear et al. 2015. )The businesses have to decide whether
they are going to be directly selling from their own stores or websites or whether they are going
to be selling through third parties such as through the medium of a super market. The manner by
which the sales are going to be carried out and how planned and organized the sales process is
going to be has to be paid attention to as well. The sales process has to be planned out with care
and with precision prior to being executed. The methods of sale have to be determined at the
time of planning sales and the type of sales figures that the business is looking to reach through

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the sales process is something that has to be determined at the planning stage itself. Tentative
sales targets have to be set by the business owners and the actual sales figures will then have to
be compared to these targets to arrive at an understanding of whether or not the sales process was
successful. Once the sales process has been thoroughly planned and the methods of sale, that is
direct or indirect selling have been decided upon, the final phase of the sales management
process will be to report on the sales that have taken place. The reporting of sales is something
that has to be done with a great deal of precision and accuracy as inaccuracy in this respect can
influence the outcome of business operations and the growth and development of a business
(Avdin and Kava 2016).
2. Sales Process and Sales Structure of UPS
As mentioned above, UPS is one of the largest international package delivery service
businesses in the world, and it runs operations not only all over the United States of America but
also in Canada and in West Germany. The sales structure of UPS is an elaborate supply chain
system and the company has a reliable and extensive network of suppliers and distributors that it
can count on for the running of its business. The suppliers provide UPS with all the essential raw
materials that it needs to perform packaging related with success that includes even the delivery
of letters in sealed cases or envelopes. The distributors then assist with the delivery of the
packaged goods in the different parts of the world that the UPS runs its operations in, such as in
the United States of America, in Canada and in the western part of Germany. UPS engages in
indirect selling for the most part as its primary business involves delivering packaged goods and
facilities to customers in various parts of the globe. The sales process is thoroughly planned and
organized, and strategies are drawn up prior to implementation of the sales process. The sales

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that are carried out are also appointed in a timely manner by sales teams or sales personnel who
are recruited by the company solely for this purpose. Majority of the sales are carried out through
the medium of online transactions and the company has its own website that customers can use
in order to place a booking for the delivery of goods. UPS is serviced by its own cargo airline
and a drone airline that it utilizes to render efficient packaging and delivery services across
continents, be it Europe or North America (Gotoh et al. 2018).
Since UPS is a company that is mostly involved in the shipping of packaged goods from
one part of the world to another, the geographic area over which products and services are
distributed is quite wide. UPS is a company that not only caters to clients in USA but also in
Canada and in Germany. It supplies services over an extensive geographic area, and its products
involve packaging of goods into sealed containers or sealed structures in which these are not
likely to get destroyed when being delivered to the required destinations. The type of clientele
that UPS is seen to cater to primary involves companies around the world that require goods and
services to be delivered to their customers in a smooth, hassle free and efficient manner. UPS is a
company that takes the responsibility for such a delivery process. It takes responsibility for
making sure that goods are delivered to the doorstep of the customer in a safe and secure manner,
that there is no breakage that takes place while the delivery process is in progress and that no
time is lost in getting the delivery underway either. The delivery services that are offered by the
UPS are those that are conducted on a very large scale. The company has its own airline systems
to get goods delivered to warehouses and distribution centers on time, from where the goods are
then again sent out to the homes or the workplaces of customers (Wakako et al. 2018).
What is clear from the sales process that is deployed by United Parcel Service is that the
wide scale and extent of delivery services implies that this is an organized process and that a lot

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of planning goes into place before the sales activities are actually carried out. Orders are booked
in bulk by customers either over the medium of the internet or at the UPS offices that are located
in the different countries where this company is seen to operate, such as in the USA, in Germany
and in Canada. The company is serviced by extensive teams of personnel who are responsible for
undertaking operations with respect to sales management. The sales teams of the company are
well versed with the goals and objectives of the company and carry out their duties and
responsibilities in the manner that is expected of them, all through the year. Along with the
proper planning of the sales process and also proper implementation of sales methods, which is
mostly indirect, the sales reporting that is carried out by the UPS is also quite organized and
there are sales reports that are generated at the end of each and every month and towards the end
of each and every business quarter. The quarterly sales reports that are produced by the company
put the business owners in a position to understand whether or not the sales figures for that
particular business quarter have been achieved or whether there is more work that needs to be
done in this respect (Johnston et al. 2016).
It is clear from the description of sales at UPS that has been provided above that the sales
management and sales process that is followed by UPS is quite elaborate, largely because this is
a business that runs operations internationally, and which operates through indirect mechanisms
such as suppliers and distributors for the most part. The efficiency with which the packaged
delivery services are offered by UPS as a company internationally is something that is a result of
the planning and coordination that is put into the whole sales process in the first place. Once the
sales methods are implemented and the sales deals are closed with the buyers, there are sales
reports that are produced by teams of efficient personnel who have been recruited solely for this
purpose. The sales management of the UPS is therefore organized and detailed and is one of the

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main reasons why the company has been able to run its business operations with success until
date. It is one of the most well-known names in packaged delivery services in the world by virtue
of the organization that it puts into in its sales management processes. Most importantly, the fact
that this is a company that engages in indirect selling or it sells through others implies that the
accountability for the rendition of services is shared. It is not only UPS which is accountable or
liable for the delivery of the packaged goods but also the company whose goods are being
packaged and delivered by UPS. The fact that the accountability is shared and the liabilities are
shared implies that the stress and strain that is associated with the running of the business is
something that is considerably reduced for a company like UPS which engages in the rendition
of large scale delivery services over an extensive geographic region (Katsikea and Skarmeas
2015).
Customer retention as discussed earlier is one of the key aspects of sales management and
it is something that a company like UPS is seen to engage in quite extensively. UPS values its
customers and it takes pride in the fact that its services are now widely available in different
corners of the world such as in the continent of Europe, in the country of Canada and also all
over the country of America. In order to retain its customers over the long term and ensure
regular sales and business. UPS is a company that has focused first and foremost on the
provision of quality services. The delivery services are carried out on time and no time is lost
when delivering goods from one place to another no matter how far or how wide the geographic
distance is (Rodriguez et al. 2017). The company has its own drone airline and cargo airline that
it makes use of in order to get goods delivered on time and there are absolutely no delays that are
associated with the packaged delivery services which are provided by UPS. The company is also
quick to make sure that customers are allowed to provide feedback about the services that they

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avail from the UPS regarding the delivery of packaged goods. For instance, UPS is a company
that is quite active on social media platforms like Facebook and which are also platforms that
customers can make use of in order to let the company know about various areas where it could
improve upon the rendition of its services. UPS is a company that operates internationally and it
is aware of the fact that knowledge dissemination through social media is far quicker than what it
is on any other platform. It therefore makes use of Facebook in addition to other forms of social
media in order to reach out to its customers worldwide and arrive at an understanding how of its
services are received by customers. It is mostly a corporate clientele that a company like UPS is
known to deal with and it wastes no time at all in seeking customer feedback. Facebook is an
important medium through which UPS is able to understand how well its services are doing in
the market, not just in the USA but also in Canada and in the country of Germany (Rodriguez et
al. 2017).
Promotion of services and customer retention through offering regular deals and
discounts and rebates is also one of the ways by which UPS engages in customer retention and
maintains a long standing relationship with each and every one of its customers. Those who opt
for the services that are offered by UPS is bulk are known to be provided with deals and
discounts on the delivery services using which they can make more extensive use of such
services and that too, over the long term, provided they are happy with the way by which the
services have been rendered (Reid et al. 2017). It is important to note in this respect that UPS
understands that long term sales is something that can be ensured by the company only if it looks
into the needs and the requirements of its customers and only if it offers its services at a price
that is equivalent to the value of the services that are being offered. In other words, the services
which are offered by UPS are not over priced at all and are well within the budgetary means of

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companies that make use of freight services and supply chain and distribution services at the
national and the international levels. The problems of customers and the requirements of
customers are always met by a company like UPS regardless of the extensive geographic region
over which it is seen to operate both in Europe as well as in the America’s. Customers more
often than not get full value for the money that they spend on the services that they avail from
UPS. The services of UPS are trusted by clients, and the company takes responsibility fully for
the goods and the services that are delivered by UPS, with compensation being provided to
customers in the event of breakage or damage to items in the course of delivery (Schrock et al.
2018). The packaged delivery of goods is in essence the market or the industry in which UPS is
seen to operate and the company is one that is entirely aware of the competition that exists in this
industry. It competes with important names in the business such as DHL and Deutsche Post in
Europe and with the United States Postal Delivery Service in the USA and it is able to go up
against such competitors by virtue of the fact that it offers quality and efficient delivery services
all around the year. The customer relationships are valued and maintained by UPS by ensuring
the timely rendition of services, by ensuring that transactions are carried out in a safe and secure
manner and by ensuring that customers can avail deals and discounts when using UPS delivery
services over the long term rather than in the immediate present. Customer relationships are also
fostered by engaging with existing, past and prospective clients over social media platforms like
Facebook and deriving an understanding of customer feedback with regard to the packaged
delivery services that it offers, using which it is further able to improve upon its sales services
and sales management (Reid et al. 2017).