Sales Management Report: Principles, Strategies, and Microsoft

This report provides a comprehensive analysis of sales management, focusing on principles, strategies, and their practical application. It begins by defining sales management and its importance in driving profitability, and then explores key principles such as planning, coordination, controlling, motiv...Read More

SALES MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
P1 Principle of Sales management...............................................................................................3
P2 Benefits of sales structure ......................................................................................................4
P3 Explain the importance and the advantages of the concept of ‘selling through’ others.........6
P4 Analysing the key principles and techniques for successful selling.......................................7
P5. Importance of developing sales strategies that yield highest profitability and incorporating
account management .................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Sales management is a discipline of business which focused on the application of the
practical sales techniques and management of the organisations operations of sales. It is
necessary function of the organisation for identifying the net sales through the sales of the goods
and services and drive the profit for commercial business. This report will study the key
principles of sales management in relation to importance of sales planning, methods of selling
and reporting sales and evaluate the benefits and structure and organised for using the specific
organisational examples. It highlighted the importance and advantages of the concept of selling
through others and analyses the key principles and techniques for successful selling and
contribution to build and managing the relationship in application with the specific organisation
examples. This study describes the importance of developing the strategies of the sales that yield
the highest profitability and incorporating account management within the structures of the sale.
P1 Principle of Sales management
Sales management can be referred to as business discipline which emphasizes on practical
application of different techniques in order to increase sales and profitability. It can also be
defined as the coordination of resources as well as people in order to accomplish desired sales
objectives. Sales management is considered to be as crucial business function. It assists an
enterprise in achieving the sales target in effective manner. In context of Microsoft, sales
management has assisted an enterprise in accomplishing the desired sales target and supported
business entity in maintaining profitability. The important elements of sales management are;
Planning : It is considered to be as an important element of sales management. In context
of Microsoft, marketing manager in an enterprise has formulated the plan on the basis of
information accumulated by executing market research.
Coordination:In context of Microsoft, an effective sales management has been possible
through the proper coordination among the different departments in an organisation. Business
entity has able to achieve its desired sales target with the support of different functional units.
An effective coordination between the different departments in Microsoft has assisted
management in ensuring an effective as well as proper utilisation of resources. In context of

Microsoft, leaders or manager in firm need to promote direct personal contact among workers.
Open communication platform or channel can be provided to employees, as it is the tactics which
will help in ensuring an effective coordination among workers.
Controlling : Monitoring is the best techniques which can be utilised for controlling the
activities related to sales of goods or services. In relation of Microsoft., manager in an
organisation is required to provide regular instruction, guidance and feedback to employees as it
will assist them in managing sales in systematic manner. Recording of the daily sales
transactions is considered to be as one of an effective strategy which can be helpful in order to
manage sales. It is the strategy which will provide manager an ease in identifying the variations
in sales. Recording the sales transactions on the routine basis will also help sales manager in
analysing the performance gap and will assist them in identification of the reason for variations.
Motivation : In context of Microsoft, manager or leaders in an enterprise is required to
motivate people to make their significant contribution in accomplishment of desired sales
objective. Reward system can be establish in order to positively influence workers to put their
initiatives for accomplishing desired sales target.
Some principles are discussed which is followed by Microsoft and these help the
company to achieve sales target.
Manage workforce individually - Microsoft manages its training and development programs
individually. They maintain discipline and provide coaching to employees working in the
company. The company manages their workforce by making a group which helps them to
provide learning effectively. Also, this improves sales of Microsoft. The employees feel
confident after training and makes plan regarding sales. They attempt various methods such as
personal selling, online websites etc, for efficient results. It is the principle of sales management
which states that controlling as well as supervision and monitoring is very much essential for
managing sales. In relation to the Microsoft, leaders in an enterprise are required to provide
proper training to employees.
Lead by example - Management personnel of Microsoft follows all the standard policies and
procedures of the company. This helps manager to build a positive image among employees
which builds respect in their mind. The managers are also self-discipline which help them to
maintain the dignity of the company. By this principle, Microsoft achieves their sales target

effectively. In context of Microsoft, manager in an organization is required to enforce strict rules
and regulation. In addition to this, manager in an enterprise should set some quality standards as
well as other benchmark, as it will assist them in managing the sales in effective manner.
Follow the golden rule of sales management:- its important for each and everyone treat others
as wanted to treated, if sales leader treat the individuals as the children, then you have the
children working for you. It treated peoples as adults then the work for you as adults. It needs so
much mature and professional staff to run the sales team and also the business. So, it is important
to follow the rules and regulation which has been make by the company and which is better for
everyone for working n the business.
Respect every individual - In Microsoft, subordinates and superiors are treated equally which
help them to boost their morale. They feel equality in the company and therefore motivates them
to work for the company. The employees formulate planning for sales and also adopt methods to
perform their best. Hence, such a large company like Microsoft achieves its sales target with an
ease. For being a successful sales manager its necessary to manage and respect people and giving
them appreciation and rewards.
Be goal oriented - Management personnel of Microsoft inspire employees towards achievement
of goals. The company sets various short term and long-term sales target which is to be achieved
by employees. Microsoft provides training to employees which help them in achieving target and
hence, the company formulate various plans for successful achievement of sales target. Its
important to maintain the goal oriented operation which is helpful for achieving the task and
success in the business and company.
Get on the actual work floor - Management personnel of Microsoft are very efficient and
effective. They did not spend too much time in their personal offices, instead of this they come to
the work floor and evaluate work of employees. Employees work with attentiveness and also
employer-employee relationship in Microsoft is very positive and friendly. Employees help
management personnel in planning and decision making. They contribute their effective
suggestion to them. This improves sales in Microsoft and therefore, they able to settle their
target.

Be direct and to the point - Management personnel is always conveying clear and direct
information to employees. The employees are clear about their roles in the task and company
also expect them to do the same. Managers provide them full information and proper guidance
that helps them to achieve sales target. Managers make effective plans to achieve sales target and
follow methods to optimize the sales.
Manages on objective information - In sales management, Information’s are evaluated on
objective basis. Like in Microsoft, Employees effectiveness is measured on the basis of number
of sales targets. The sales department focuses on efficiency of employees which helps them to
achieve target of sales with an ease. The department plans goals of sales and suggest measures to
achieve them in time.
P2 Benefits of sales structure.
Sales structure refers to, a unit of organisation that clearly defines the roles and
responsibilities of sales force in respect of different markets and products. Company needs the
right structure for sales and clear the responsibility across the roles, where it can be defined as
the different types of responsibility which have the different line of the products and markets.
When we analyse the structure of any organisation, we focus on the four important components-
Sales Force Structure- Microsoft will decide what should be the structure of sales force
in the organization so that, employees will generate maximum sales and revenue. Employer also
need to decide the roles that are to be performed by sales force. Sales force of Microsoft plays an
important role in generating revenue for the company. Sales team has responsibility of creating
brand awareness among potential customers. Other than this, sales force also helps the company
in maintaining relationship with the customers. They interact with customers and explain them
the features and benefits of new products. And influence the customers to buy the product.
Example: offering discounts, gifts etc. They play an important role in building trust among the
customers towards the company.
Microsoft can use different types of sales team or their combination. First is B2C sales team and
second is outside sales team. B2C sales force includes, telemarketers who are responsible for
communicating with potential customers on telephone. And arranges meeting with customers to

explain them benefits of products of company. Outside sales force includes, self starters. They go
to targeted locations and demonstrates the products to customers. They use social media like,
Facebook etc. to attract customers.
Territory Design- Territory design for sale of products is very important for the company
because it affects the level of sales and sales team's morale. Specific Geographic area is assigned
to individual sales person or to a team of sales-force. Sales territory must be balanced. It means
territory should not be under serviced nor over serviced. Ex. If, the area is under serviced by
sales-force of Microsoft then customers will move towards competitors’ products. If it is over
serviced then, cost of servicing the area for Microsoft will be very high and it will reduce the
profits of the company. So, before selling the products, company should forecast the demand of
potential customers. It will help the sales-force in setting the sales targets and they can easily
identify the areas in which fund has to invested. Before establishing territory, Microsoft should
decide the channel of distribution it will use and demand of customers in that area.
Territory, account and lead assignment- Company have to assign the right sales force
to sell the products in particular territory. So that, right person can deliver valuable product.
From assigning the right people for the right territories, accounts and also for the leading which
can easily deliver the most valuable and greatest success and growth for Microsoft. It seems so
much simple but it is one of the most challenging process and task for the sales leaders.
Geographic sales structure: There are few level of management in the geographic sales
structure. It brings all the employees together in geographical divisions. All the divisions
performs their function within an organization itself. It is the organizational sales structure which
can be adopted by the Microsoft. In Geographic sales structure, management in enterprise assign
every employees in sales team with certain geographical area.
The main advantages of Geographic sales structure is that it supports business entity in
eliminating the chances of duplication of customers. It also provides management an ease in
managing the sales in systematic manner. In context of Microsoft, Geographic sales structure
will prove management an ease in making quick business decisions based on the sales
performance of an enterprise.

Functional sales structure : It is basically hierarchical business structure. In such types
of organizational structure employees are grouped based on the area of specialization. It is the
organizational sales structure is used by Microsoft. Manager in an organization has categorized
the employees on the basis of their knowledge as well as skills. It is the sales structure which is
most suitable for enterprise creating the standardized goods or services.
The biggest benefit or advantage of utilizing the functional sales structure is that it helps
in achieving greater operational efficiencies. In addition to this, other important benefit of
functional sales structure is that it enables management to retain their control on sales activities.
Product sales structure : It is the Product sales structure which is appropriate for the
firms those who had complex or broad product portfolio. Product sales structure enables an
organization in differentiate its product line from that of its competitors. In context of Microsoft,
an enterprise can utilize product sales structure for gaining the competitive advantage. It is the
product sales structure that helps management in an organization in alignment and coordination
of sales metrics. In product sales structure, complete organization is organized in separate
divisions and each sections focuses on selling the specific products or services.
The main benefit of Product sales structure is that employees get experience in selling the
particular type of products or services. In addition to this, other major advantage of this type of
sales structure is that it enables management to analyses and retain the control on the efforts or
technique used by an individual for selling specific good or services.
Benefits by product/ Service line – Sales structure assist to differentiate and position
competing lines, and generally easier for coordinating & aligning sales metrics with the selling
organization’s product groups. It is an advantage for extending the new product line in Microsoft
which is likely increase the sales and demand of the market share. Form the extension of the
product line it raises the amount of different products which has been available to the consumers
and through adding more things in the products for keeping the interest of the customers' in the
market.
Benefits by Industry – Creates credibility and expertise of sales people regarding vertical or
industry issues, Eco-systems and trends. From the utilizing sectors, it involves the power
distribution and generation and also provide the benefits of the products and services for

expressing in the terms of the customers expectations, needs and requirements. There are so
many benefits which has been profitable for the company, customers and environment as well
because it improves the productivity and efficiency. It also increases the sharing of knowledge
and collaborative working. It gives better experience of the customers.
P3 Explain the importance and the advantages of the concept of ‘selling through’ others
Selling is the important concept for reaching the customers prospects efficiently. It
depends on the range of customers with company deals. Sales is the process in which
representatives uses their skills and knowledge to increases the chances of a successful sale. It
helps to enhance the value for the company and increases the other benefits for the company
goals. The concept of the selling refers to the proposes of the customers of organisation and
individuals which will not buy the enough products unless it persuaded the selling efforts.
Organisation should undertake the promotion and selling for their products and success in the
market.
Selling through the others is considered to be as cost effective way of reaching to the
target customer group and delivering them goods or services. In context of Microsoft, an
enterprise has built strategic partnership with other companies. Strategic partnership strategy has
provided business entity an ease in selling its goods or services. It has also helped firm in
increasing sales and profitability. By forming the strategic partnership with other enterprise,
Microsoft has developed the potential to make quick delivery of products or services. Selling
through other tactics has helped Microsoft in increasing customer base. In context of Microsoft,
an enterprise has planned to sell their products or services with the support of retailers,
distributors and online companies. Company has made plan to sell their gods or services through
online companies and distributor, as these are those stakeholders who have depth knowledge
about the market. In addition, this, distributors and online firm have knowledge about the
techniques which can be used for motivating customer to make purchase of particular products or
services. Selling through other strategy could enable firm to save money which can be utilized
for the further development of business. By adopting the strategy of selling through others an
enterprise can sell its products or services to wide number of customers. It is the strategy which
will support business entity in eliminating the barriers such as transportation strikes, political
insatiability, etc. which might lead to the delay in delivery of goods or services to customers. In
addition to this, One of the major advantage of selling products or services through distributor is

that firm can easily promote products directly to end-customers. Sell through is the concept
which refers to the percentage of a product that is sold by a retailer after being shipped by its
suppliers, typically expressed as a percentage. In the companies’ sales through is calculated
during a period of one month.
Advantage of Selling through Wholesellers
It is Quick in nature: this concept helps company to maintained their sustainability in
the market. This process is fast to go about this is to make use of distributors. Due to having
number of stores reach customer can easily purchase the services or products. selling through
distributors increases the chances of sales and customer reach. From making the luxury products
and services it has to maintain the air of exclusivity which need faster move of the products.
There are so many fastest way to go out which has been used by the distributors. They know all
the locations f supermarkets, stores and other outlets and also there are so many fastest way to
reaching the customers. If customers are efficiently and quickly moving then distributors are
much faster than they do.
Wide customer base: it is another advantage of selling through concept in which
distributor is their wide customer base. That helps to make company more popular and
advancing. Distributors can easily increase the sales of Microsoft. It is also adjusted worth the
time and effort to start from scratch and attempt to establish this base by yourself. Its important
that distributors has wide range of the customers base in the market from building the huge
variety of products and valuable products which something has been build by themselves. It is
not just worth the time but also establish the base which has been made by themselves. It's a
heavy lifting for the distributors for making the strong base of the customers.
Understanding of the market: it is the long lasting and best effective productive
method for the company to understand the leading challenging goals to make the good effect on
the company goals. Selling through distributor can help Microsoft to understand the need and
wants of the customer or of the market. Distributors are more connected with the market and
very well understand the needs and wants. It is one most important advantage to understand the
market for selling the products and services. Its important for distributors for understanding the
prospectives of buyers and also the market where the products are easily sale, it totally justifies

the understanding of the market. Distributors need to know the maximum impact and also the
information available for the convenience store distribution.
Advantage of selling through retailers
Sales and marketing: it is known that distributors are the champion sellers who well
known from the certainty or uncertainties. It helps to collect the huge process of making new
working ideas and goals. Their main job is to keep convenience stores and other like customer
facing centres stocked with quality goods. Sales and marketing means the champion seller of its
products and services. It's all depend on the ideas and innovation of selling the products and
services that the products are reaching to customers or not and also the quality of goods and
assurance of delivery of the products and also it takes year to build the reputation in the market.
Motivated: this is the best reason why distributors can be more productive and
enthusiastic towards selling services or products because they will sell the products as though
they were their own. This one of the biggest reasons why distributors are able to sale the
products quickly because they sale the products as it's their own. The main and important thing is
that the convenience store of suppliers have to make the profits and revenue from reselling the
stocks. The motive of the profit is to driving the factors and also the main goal and objective is to
indicator the selling way of the products and also it wants the ride of the profits which wants the
products over again.
Logistics: distributors have many equipment’s and tools through they can easily transfer
the product to the end of the customers. It helps Microsoft to easily deal with the customers in
indirect manner. It is one of the most important thing for delivering and transporting the products
and services because its important top have the trucks and manpower which is necessary for
transporting and supplying the goods wherever to needs to go. Unless it creates major forces for
market and also big enough for handling the distribution countrywide. The experts of the
company knows what had to do with the products for selling in the market.
Advantage of selling through franchisers
Growth in business: Franchising the business can be a cost-effective method to sell the
product to the end consumers. This also helps to expand the scope of the salary into more expand
manner and growth in developing areas. In other words, it helps to define the leading and

generating goal will help to refine the management effective results. Its important for each and
every business to grow and achieve the success in the market and there are so many ways to
grow the business such as innovation and get new ideas for making new products which easily
attract the customers and make a strong market base. It doesn’t mean to cover the costing and
also investing in the new premises and staff. Additional sales, which lead to the profits and also
retain the business with new customers.
Easier management: Sell the products through franchisees also helps to run business in
smoother manner. In other words, it would help business to reduce the management demands
placed on the management. The beast franchisees is highly motivated and also have the local
expertise for making the life much easier. Its important for franchiser to run the business in
proper manner for maintain the image of the brand and also providing the best quality of goods
and services.
Develop the brand value: the most advantage or benefit that company adopts is to
expand the business value and brand value of the business growth by the help of introducing
company into new country or place. From masking more franchises it gives benefits to the
company because it knows better for becoming the brand. It gives so many benefits to the brand
in the form of capital and also build the string customers base from providing the best quality of
products and services.
Motivated franchisees:- its important for the franchise to get motivated and also manage
the vested interest in the growth and success of the brand. After the planing, training and
introduction of the brand its important to motivate the franchisees for increasing the sales and
productivity. It emphasises the key stage's growth of the business. There are really a good idea
for suggesting the self-employed system where it significantly more satisfied with the customers
and with their work than the corporate employees. Franchise wants to make money rather than
taking the interest in the customers because it indeed and build the greater personnel wealth
which is most popular reasons for buying the franchisees.
Purchasing power:- for securing the business its important that from the additional
turnover and profit can provide the access to the better deals and for the equipments of the office
such as vehicle and so many other purchases of the business. It's all depend on the customers
which has been measured by the power of purchasing which value for the money and also

customers purchase goods and services. It tied the index of purchasing price, cost of living index.
It is a value of currency expressed in the terms of the amount of goods and services that one unit
of money can buy.
Ideas for future success:- there are so many contribution need by the franchiser for
growing the business such as new fresh ideas for the future success of the brand and also outline
the opportunities which might be find out for the success. There are so many ideas which has
been put for the success of the business and company such as accepting new technology and new
dimensions for the business whereas from new and innovative ideas it helps in attracting new
costumers and also make happy to the existing customers. It's all depend on the demands and
needs of the customers which has been satisfied by the company and give them satisfaction.
Support from other:- from being a business owner its important to know the isolating of
the business for having the franchise network which can offer the advice and support to the buyer
and seller both as well. Its important to take support from others to stand in the market because
its important to have the back support and taking advantages from other business which is very
helpful in making the structure of the business.
P4 Analysing the key principles and techniques for successful selling.
Covered in ppt
P5. Importance of developing sales strategies that yield highest profitability and incorporating
account management
Covered in ppt
CONCLUSION
The above report concluded that Sales management is an effective approach and method
that helps organisations to build customer relationship and increase profit. The study described
various principles of sales management such as Manage workforce individually, Lead by
example, Respect every individual etc. The report also defined benefits of sales structure along
with the advantages of selling through others such as Quick in nature, Wide customer base,
Understanding of the market etc. Furthermore, the above report also examined the key methods
and principles of successful sales strategy.

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