Sales Management: Principles, Structures, and Techniques Report

This report provides a comprehensive analysis of sales management principles, structures, and techniques, using Ford Motor Company as a case study. It begins by explaining the key principles of sales management, including the importance of sales planning, methods of selling, and sales reporting. The report then evaluates how these principles differ in response to consumer and business buying behavior. It explores the benefits of sales structures, offering organizational examples like Ford's horizontal structure, and explains the advantages of 'selling through' others, such as distributors. The report critically evaluates the implementation of different sales structures and analyzes successful selling principles and techniques for building and managing customer relationships. Furthermore, it examines the development of sales strategies for profitability, incorporating account management. The report culminates in a critical evaluation of sales management within an organizational context and makes recommendations on how sales structure and approaches could improve financial viability, ultimately contributing to a deeper understanding of effective sales management practices.

Sales Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Explain the key principles of sales management in relation to the importance of sales
planning, methods of selling and sale reporting.....................................................................1
M1 Evaluate how principles of sales management will be different in response to consumer
and business buying behaviour...............................................................................................3
P2 Evaluate the benefits of sales structures and how they are organised using specific
organisational examples.........................................................................................................4
P3 Explain the importance and the advantages of the concept of ‘selling through’ others....5
M2 Critically evaluate the implementation of different types of sales structures using specific
organisational examples (e.g. geographic, marketing, product sales)....................................6
P4 Analyse the key principles and techniques for successful selling and how they contribute
to building and managing customer relationships in application to specific organisational
examples.................................................................................................................................7
M3 Critically analyse the application of successful selling principles and techniques in
application to specific organisational examples.....................................................................8
P5 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management with in structures...........................................................9
M4 Evaluate how core finance principles and successful portfolio management can lead to
increased profitability and a competitive edge.....................................................................10
D1 Produce a coherent, fully justified critical evaluation based upon a comprehensive
understanding of sales management, structure and selling techniques within an organisational
context..................................................................................................................................11
D2 Critically Evaluate and make recommendations on how sales structure and approaches
could improve financial viability. ........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Sales is basically defined as the transactions which takes place in between the two
consecutive parties when it comes to selling and buying of services and goods in exchange of the
money or related considerations. In relation to sales management, it is basically the process in
which the development of effective sales and coordination eventually takes place. The activities
related to sales management generally comprises of advertising, pricing, marketing, product
merchandising, distribution and much more. The organization chosen for this report is Ford
Motor Company which is basically a multinational auto maker which was founded by Henry
Ford established in the year 1903. The organization is engaged in process of providing
Commercial vehicles, Automotive Parts, Pickup trucks, SUVs, Luxury Vehicles etc. The current
report basically involves the key principles of sales management which is related to planning,
reporting and also other selling methods associated with it. Moreover, the report involves the
advantages of sales structure along with formative and importance benefit of selling through
others.
MAIN BODY
P1 Explain the key principles of sales management in relation to the importance of sales
planning, methods of selling and sale reporting
Sales Management basically involves the control of resources or people and is the
coordination in the company to efficiently and effectively attaining the desired objective. The
major reason behind sales management of the company is to boost revenues and improve the
sales through increasing in their profits. In reference to Organization, Ford is considered to be
one of the biggest car selling company in the globe which has a effective and efficient sales
management in their operations. In context to Planning Process, it can be basically defined as the
method of sales management process. In reference to marketing plan and successful sales, both
of them could help in increasing the sales as well. It is considered to be the major responsibility
of the sales manager to develop more effective plan for the company (Groza, Zmich and Rajabi,
2021).
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It helps the organization in managing their revenues and sales. In addition to that, there are
various development and training sessions which Ford uses in order to offer to their employees
so that their knowledge and skills. The main objective of the company comprises of contribution
to profits, increased sales volume and continuous growth. In reference to sales management, it
basically comprises of important elements such as :
For a Ford Manager, it is very important for the company to follow few principles of sales
management as mentioned below
Sales Planning: It basically means setting the strategies, overall sales targets and quotas. In
context to sales planning, it is basically defined as the set of strategies which is generally
designed for the objective to help the organization to reach its overall sales goals and helping the
sales teams reaching their target sales quotas. With the support of sales planning, it helps a lot in
forecasting the level of sales an organization wants to achieve and also involves outlining a plan
which supports in accomplishment of objectives (Jobber, Lancaster and Le Meunier-FitzHugh,
2019).
Recruitment of Sales Staff: In reference to sales management, it is considered to be an integral
portion of sales management. For a Sales Manager, it is very important to understand the
positions for placing the right individual in the right job. In case of Sales Recruiters, it basically
involves recruiting the specialists who supports in assisting the company with the hiring of the
skilled sales staff. The major duties generally comprises of screening candidates, designing job
descriptions, scheduling interviews, advertising positions and much more (Misra, 2019).
Sales Reporting: In context to sales reporting, it is basically defined as the process of keeping a
systematic record of sales activities over a particular period. It generally comprises of sales
analysis, sales operations and sales strategy. Moreover, the sales reports includes customer
acquisition costs, sales volume and revenue generation. In reference to Ford, the major duty of
the sales management team to basically identify and analyse the Key Performance Indicators
(KPIs) of the sales Team. With the support of identifying these indicators, the manager of the
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company can have a better understanding of the different deviations in order to improve the
overall productivity.
Sales Force: With reference to Sales Management, it is basically the function of establishing a
sales force through building a effective team and implementation of sales strategies that helps in
defining the sales process which allows a business to grow its heights. The process of sales
forces are connected with a MIS, as it is considered to be a important part of information system
that can be used by customer relationship management. Through offering compensation package
and effective training, a organization can acquire a dynamic sales force (Adriansyah and Ridwan,
2020).
Personal Sales: The concept of personal selling generally comprises of face to face selling in
which one individual who is basically the sales man tries to convince the consumer in buying a
product. It is generally considered to be a promotional method where the sales person uses her or
his skills and capabilities in order to make a sale. In case of personal selling, it basically
involves a sales person who tries to explain the benefit and need of commodities. It is a
promotional technique which is adopted by Ford in sales management for seeking growth.
M1 Evaluate how principles of sales management will be different in response to consumer and
business buying behaviour.
The concept of sales management helps in systematic functioning of the activities of the
company and also carrying out a sustainable business in a market environment which is highly
competitive.
Strictly Disciplined Responsibilities: It is very important to spot the customers in need of
constant attention from their business. Through effective identification of target market, the job
could be easily done (Hinson, Adeola and Amartey, 2018).
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Anticipating Apparatus: It is very important for the companies to keep up with the current trends
and its generally requires evaluation and deep analysis of behaviours and trends of customers on
the right products at affordable prices.
P2 Evaluate the benefits of sales structures and how they are organised using specific
organisational examples.
A Good Sales Structure basically helps a lot in establishing clear responsibilities about the role of
an individual and also helps a lot in incorporating strong communication and coordination and
also helps a lot in cultivating a more knowledgeable sales force. This basically leads to increased
engagement and reduced conflict among the team members (Gammoh, Mallin, Pullins and
Johnson, 2018).
In context to Ford, the company uses Horizontal structure for the sales management which offers
employers more power in the decision making process.
Recruiting: In context to recruitment, it is basically defined as the activity of hiring, seeking out
and finding candidates for a specific job or specific position. The process of recruitment
generally comprises of entire hiring process. The sales manager basically recruits applicants who
are suitable for the organization’s particular job profile. In case of Ford, the company has
employment agencies for their jobs. With the support of recruitment, it helps in dividing
applications into categories of over qualified and under qualified. The entire process of helps a
lot in streamlining the process and also making it easier to shortlist the individuals who would be
suitable for the job and also allows the organization to grow (Spiller, 2021).
Training and Development: The concept of training and development basically refers to the
educational activities within the organization which are basically created for the objective to
enhance the skills and knowledge of the employees while providing instruction and information
on how to better perform specific tasks. The concept of training and development helps a lot in
retaining and gaining top talent, earning more profits, improving productivity and increasing
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morale and job satisfaction. With the support of training, it helps a lot in representing a good
opportunity for the employees to grow their knowledge base and also focusing on improving
their job skills in order to become more effective in the workplace. With right type of training
and development program, it allows the staff and employees to acquire new skills, increase
productivity, performing better and becoming leaders. In case of Ford, the company offers on
and off site duty training for the employees to improve their knowledge and experience to work
in the changing surroundings. The company always focuses on conduction of how employees
benefits with the support of training (Tallón-Ballesteros, 2020).
P3 Explain the importance and the advantages of the concept of ‘selling through’ others.
The concept of selling basically involves any transaction in which the money is
exchanged for a service or good. When it comes to selling through others, it offers variety of
advantages. With the help of selling through other or through a retail distribution channel it is
considered to be a important element for reaching prospects and customers in a effective and
efficient manner (Holmes, McDonald and Taylor, 2019). Selling through others is considered to
be a more cost effective manner of reaching the end consumers than selling to them directly. In
context to organization, the concept of selling helps in creating a demand which could lead to
expansion of the business. In case of selling, it is basically considered to be a powerful force that
expands the markets.
Advantages of Selling Through Others
Speedy and Quick Process: When the selling is done through others, it helps in making the
products reach out to customers in a quick manner. When selling through distributors, they are
considered to be literally the fastest method (Harrington, 2020).
Wider Customer Base: When selling through others, an organization enjoys wider customer base.
As these retailers and distributors have built a variety of markets and know exactly how to reach
the end consumer in a effective manner. The data and information that these retailers have is
highly useful and valuable which gives them a effective advantage. In relation to wider customer
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base, it can be defined as the organization that has various consumers that make several small
purchases. In context to Ford, the customer base is considered to be the important element in the
success of the brand and is also considered to be the major reason of making sales in order to
boost up the revenue (Wei and Jiang, 2022).
Understanding of the Market: When it comes to Intermediaries, they have a better and deeper
knowledge and understanding about the market. They have the understanding regarding how to
reach the prospective buyers and customers. For Every organization, it is very important for the
companies to effectively collect data and market research on the market environment which also
comprises of competitors and customers to expand their understanding of the market. For the
objective of having deep understanding, it is very important to collect lot of data and also paying
emphasis on finding insightful information regarding the customers and market.
M2 Critically evaluate the implementation of different types of sales structures using specific
organisational examples (e.g. geographic, marketing, product sales).
The organisation is basically organized as per the skills and roles into small departments and
groups. On the basis of Sales, the company has been classified as the sales structure. It generally
comprises of different types of sales structures such as:
Geological: In case of natural Resources, it is very important to maintain and develop sustainable
business. In context to Ford, it is very important to work in a effective manner with different
organizations in order to draw maximum advantages from the natural resources (Campbell and
Fransi, 2021).
Marketing: In case of Ford, the company is working with different marketing specialists and
research agencies for the objective to predict the demands and needs of the competitors and
individuals. The organization has a very good advantage of having a brand image and it also
faces competition from other known Car manufacturer such as VW and Vauxhall. In reference to
Ford, because of high competition in the auto mobile market, the company has adopted various
strategies that could support them in promoting their products through various different
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platforms. Also they uses different promotional methods such as sponsorships, sales promotion,
advertising, public relations and personal selling (Dixon, LeBon and Wieseke, 2019).
Product Sales: In case of Ford, the organization sells its products primarily through independent
dealerships that help the organization in offering different support services, establishing better
relationships and also consulting with these consumers. With reference to consumers, they are
able to purchase Ford Vehicles through dealerships and also receive personalised services
(Fornari, 2018).
P4 Analyse the key principles and techniques for successful selling and how they contribute to
building and managing customer relationships in application to specific organisational
examples.
The concept of successful selling basically involves taking the right steps at each and every stage
of the selling process. There are various key elements which are important in selling successfully
which comprises of presenting solutions, establishing rapport, prospecting and much more.
In context to successful selling, it generally comprises of key techniques and different principles:
 Active and Efficient: When it comes to good sales, it is very important to reach out to the
distributors. With the help of distributors could spot the potential threats and local areas
that could hinder the company and providing solutions for them thereby making a better
company (Darma, Asnawati and Sapri, 2021).
 Extensive range of customers: In case of Distributors, they are skilled in acquiring a wide
range of consumers. When it comes to starting a company in a new area would pose a
major issue with zooming into the customer population. In such type of scenario,
distributors play a significant importance.
 Knowledge of the Market: When it comes to distributors, they are well versed with
understanding and knowledge regarding the market which allows them to connect with
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individuals with potential buyers and similar interests. Their opinions and advice are
inevitable for the development of business.
 Transaction plus Retailing: In reference to Deliverers, they are experienced retailers
whose prime intention and motive is to sell the stored products and also to promote
themselves as a good seller of products (Chkalova and Efremova, 2019).
 Inspired: In context to deliverers, they sell the stored commodities by themselves.
 Strategy: When it comes to Distributors, they uses big trucks for the objective to transport
the goods.
 Storehouse: In reference to storing of goods, it is very important to be done in a strategic
way. Once the goods are manufactured, it is essential to be preserved well until sold off.
Therefore, distributors could store the commodities in a effective way.
M3 Critically analyse the application of successful selling principles and techniques in
application to specific organisational examples.
In case of Ford, it is considered to be a perfect example when it comes to application of
successful selling techniques and principles. In reference to Ford, the company’s keys to his
future success involve the ability to convince others or articulate a vision to sign on and support
him achieves a vision (Cook, 2020).
In case of Organizations such as Unilever, converting first time customers into the regular
customer is considered to be one of the selling principles used by the consumers when it comes
to successful selling management. The organization successfully positioned their product in the
mind of the consumers. Also the concept of closing sale is effectively used by the company.
Selling Principles are considered to be the fundamental concepts that basically ring true in every
process of sales. In context to Ford, Below are few of the basic sales principles used by the
company:
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Customers buy things that bring them value: In relation to customers, they see value in different
methods. A commodity can be a money maker, a time saver or a result booster. But eventually, a
consumer will buy the product that they think will offer advantage to them. Better sales could be
made with the help of value based sales. The concept of value based selling basically focuses on
bringing up the benefits of the customers (Zmich, Groza and Groza, 2022).
Establishing effective relationships: In context to selling techniques, it is very important to
establish effective relationships and also being nice to people when ever involved in the selling
process. In case of Ford, building a strong relationship with clients is considered to be very
crucial for the purpose to maintain constant sales. It is very important to take a proactive
approach in taking notes and meetings with clients with a proactive approach.
P5 Explain the importance of developing sales strategies that yield highest profitability and
incorporating account management with in structures.
For every organization, attaining huge profitability and preserving the existing sales
structure is considered to be a dream for the company. One of the important techniques used
involves increasing the individual sales. In addition to that following present trends and also
attracting frequent buyers are considered to be major tools and techniques which help in yielding
profitability. For organization, there are various sales strategies which are experimented by
different companies in order to get maximum advantage or benefit using structure. In addition to
that seasonal pricing is also considered to be an effective strategy for the objective to yield high
profits. In context to organization, an effective sales strategy basically plays a very crucial part of
business growth. It is very for organizations to have a clearly defined strategy which could
enable the firm to manage different approaches, assessing problems and planning for the future.
The structure of the sales totally depends upon the organization which you are building and also
the sector in which you reside (Syam and Sharma, 2018).
In reference to sales structure, it basically comprises of different aspects such as
development of strategic partnerships with other companies and selling across multiple platforms
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with other companies. In case of organizations, the companies who have a manageable and direct
sales strategy could easily lead to increasing the chances of elevating their employer brand and
also increasing revenue. One of the most important aspect of the sales strategy is basically to
focus in the company (Stankic, Sadric and Perovic, 2019). Being a sales leader, it is highly
crucial to ensure that the team understands the sales strategy. In addition to that, it involves
creation of a strategy that requires understanding and team work which particular tactics could
help in obtaining new consumers. With the support of a developed action plan and defining
strategy, it will really help a lot in targeting the right demographic for the company. Setting up of
proper sales strategy helps in building broad image of the ideal consume and creating target
consumer profiles. With the support of effective sales strategy, it helps a lot in critically
analysing the existing tactics and also addressing the need of the consumer at each stage of the
sales funnel.
M4 Evaluate how core finance principles and successful portfolio management can lead to
increased profitability and a competitive edge.
In context to Financial Principles, they basically means the management of finances both outside
and inside the annual budget. The Principles of Finance usually focuses on the government
agencies, investors and managers to do with the information of financial for enhancement of the
returns. Below are few of core finance principles which could lead to competitive edge and
increased profitability in company Like Ford.
Diversify: In Ford, the diversification is basically the method to minimize the risk which is
included in the company. Instead of investing in one sector, it is very important to consider more
sectors is a better choice (Eggeling, 2021).
Averaging Plan: Constant savings must be invested in a regular manner during markets. It really
makes sense when investing in an average way irrespective of the market fluctuation.
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