Sales Training: Sales Management Principles and Structure Analysis

This report provides a comprehensive analysis of sales training and management principles, referencing Costa Coffee as a case study. It explores key principles of sales management, including sales planning, reporting, and adapting to customer and business buying behaviors. The report evaluates different sales structures, highlighting the benefits of 'selling through others' and examines successful selling techniques for building customer relationships. Furthermore, it discusses strategies for maximizing profitability and the role of financial principles in sales management. The report concludes with recommendations for improving sales structures and approaches to enhance financial viability. Desklib offers a variety of past papers and solved assignments for students.

SALES TRAINING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key principles of sales management in relation to importance of sales planning, methods of
sales planning and sale reporting ................................................................................................3
Analysing the principles of sales management that are different in response to the customers
and business buying behaviour....................................................................................................4
Benefits of sale structure and how these sale structure are organised in McDonald's................4
Advantages and importance of the concept of “selling through others”.....................................5
Different types of sales structure-................................................................................................5
Principles and techniques of successful selling and they contribution towards building and
managing customer relationships.................................................................................................6
Importance of developing the strategy that yield the highest profitability..................................7
Finance principles and portfolio management leads to profitability-..........................................8
Recommendations over the ways under which the sales structure and approaches improves the
financial viability.........................................................................................................................8
CONCLUSION................................................................................................................................9

INTRODUCTION
Sales management is said to be the process of growing the force of sales, coordinating the
operations of sales and executing the technique of sales that permits a firm to hit consistently and
may even crosses the sale target. Sales training refers to the the process of enhancing the sellers
knowledge, skills and attributes to control the behavioural change of seller and maximization of
sale. This study is going to discuss about sales training management, principles of sales
management etc. in the reference to the company Costa coffee, it is an UK fast food & Coffee
chain that have it's store almost all over the world.
MAIN BODY
Key principles of sales management in relation to importance of sales planning, methods of sales
planning and sale reporting
Effective team members of sales :
sales person play a big role in achieving target, achievement of timely targets needs the
recruitment of best sales person for the firm, the team of sale department must involves the
members who are having a good knowledge about sales, market, consumer preference, products
and they must have different skills that are useful for the firm. For increasing the productivity of
the sales team member, the firm should provide effective training to the sales members so that
they can upgrade their ability, quality and capacity to tackle the consumers.
Creation of an reporting system that is effective :
The main essential part of the sales management is reporting. To increase the percentage
of dependability on performance of sales team there must have to be an effective process of
reporting, it can also be proved helpful in providing the performance of individual so that the
management can take strategic decision regarding that person, effective reporting system helps
the organisation in knowing the growth of sales in regard with past and future development or
predictions.
Accepting the situation of present and future :
To make sure the working of sales management effectively, the managers of the firm
must have to analyse and anticipate the upcoming condition of the merchandisers. Without the

good knowing about external and internal environment of the firm, the management of the firm
can never be able to create sales management rules or policies effectively.
Analysing the principles of sales management that are different in response to the
customers and business buying behaviour
Consumer behaviour refers to the aspects and parameter that provides the impact over the
purchasing power of the customers. The business buying behaviour is linked with the consumer
buying behaviour. As the business performs its operations in order to gain more consumers.
Therefore, the business buying behaviour is shaped by the consumer behaviour. The principles of
the sales management has been considered as different in relation to the consumer buying
behaviour and business buying behaviour. In case of consumer buying behaviour, the
organization focuses on the elements that are affecting the buying behaviour of the consumers
and on the basis of that, the policies has been formulated in order to meet the demand of the
customers. This is how, the principle of sales management has been performed in response of the
consumer buying behaviour. In case of business buying behaviour, the organization has to deal
with the B2B communication in order to ensure the buying and selling procedure of the business
(Guenzi, P.2020).
Benefits of sale structure and how these sale structure are organised in McDonald's
The sale structure of the U.K company, Costa coffee which is the largest food and coffee
chain in the world is having a geographical organizational structure. Costa coffee is operating
and controlling sales in almost each of the region of the country. Costa coffee is the first food
chain that has started it's own franchise model and they gives the franchise to people's based on
the regions , the sales department of Costa coffee head quarter is watching the sales occurring in
each region and investigate the sales shortfall and ensures to take some corrective actions. They
are currently working in 100+countries and every country is treated like the region and sub-
region occurring within the country. The franchise has the management model in which the top
one is president and middle one is vice president and lower one is staff (Islamgaleyev, 2022).
Advantages
Satisfaction of customer needs – Costa coffee is hard-working firm which is smoothly able
to expand their business in many regions by adding the taste of the particular region in the menu.

Regularization of income - Costa coffee collects the regular income through the actions of
franchise with no excessive cost, what they get is the payment of the franchise only and some
percentage of profit at the end of financial year (Hartmann, 2020.).
Advantages and importance of the concept of “selling through others”
Selling through others usually takes more cost than selling the product to the consumers directly,
selling through others include wholesalers, retailers and sales agents . Some importance
advantages of selling through them are as follows :-
QUICKENESS :
They are quick if the organization is not making any luxuries' product than this concept is best
for you for the speedy sale of products, in which after developing product the next step that
comes is providing the goods to wholesaler, retailer, sale agent. As they know everything about
their particular location and have contacts with the super mart and shops in the area, which made
them reach their fast.
BIGGER CUSTOMER BASE :
The main part about these distributors are is their wide customer base which make them sell the
firm's product without any hustle.
MOTIVATED
One bigger thing about them is that they are well motivated when it comes to the sell of product
they can reach at any level for the completion of sales target.
Different types of sales structure-
Sales organization structure refers to as the dividing the sales team into segementation of
specialized groups. The sales team is determine by the regions the company is serving, quantity
of the products and services the the company is offering, the sales team's size and the size of the
industry as well. It is very important to manage the sales structure as it is reposnsible for the
geenration of the revenue from evevry region. Successful sales structure generally focuses on the
tools, technology, strategy and the environment. There are diffrent types of sales structure of the
company but costa coffee's company has geographic organizational structure.
Geographic organizational structure is the structure in which the company track the profits in
different regions of the country. The company having this structure monitores the sales in many
regions of the country. They have given franchise to many countruies for the sales and the
franchise has been given according to the regions. The sales department of costa coffee ensurs

that all the duties fo sales and tasks are properly working and controlled. Every country or region
has different sales head and differnt sales employees for ensuring the smooth running of the sales
in evevry country. Costa coffee is the has around 3,882 branches in the world whcih includes
russia, ireland, portugal, germany, UAE and many more.
Principles and techniques of successful selling and they contribution towards building and
managing customer relationships
Costa coffee is following some main principles and techniques for the successful selling of the
product in the menu and all these are aiming to establish an customer relationship (Syam, 2018) .
Retention of consumers – Customer retention is an important principle of selling
successfully in present new firm landscape. Costa coffee has taken the customer's loyalty as it's
frst priority also for maintaining good customer relationships and support the organization is
giving variety of deals, offers and discount on the products as well as they are providing special
discounts on the particular region festivals so that the customer remain engaged with them
(Cueva 2018).
Effecient and effective use of the technology – In the present digital world the
technology have enhanced itself in each and every sector, there is not any sector that doesn't
include technology in it. And if some organization doesn't use the new technology there is 99%
chances of them to fail in the market. That's why costa coffee maintains a great relationship with
the delivery partners for the sale of their products and costa coffee have their personal
application too as well as they team up with others to offer delivery (Quesenberry, K.A., 2020).
Sales Culture – Welcoming the customers, giving them proper response, respecting them
meeting them with smile, taking their orders accurately and nicely, serving there order as much
faster as the organisation can, keeping proper hygiene facility, maintaining social distance are
some parts of the positive culture of sale and the firm is nicely following this which is helping
them in building good relationships with the customer (Coller, 2018.
Data maintenance – Keeping the full information of sales, customers, data are very important in
an organisation, these data's are used as a crucial tool while promoting someone or while
informing some important message to it's customer
Social media – Some popular social networking sites like Facebook, Instagram, you tube,
whatsapp, Skype, we chat, snap chat, IMO etc can be used for the promotion purpose by creation
of an official page and can also be used as selling of products (Plouffe, C.R., 2018).

Importance of developing the strategy that yield the highest profitability
Costa coffee looks openly for mainly four sales strategy that gives the high number of
profitability and which helps in maintaining the account management in the framework of sales
are as follows;-
Reducing the cost of business : Reducing cost is the best strategy of an organisation that can be
done using the optimum utilization of resources effectively and efficiently, direct costs that occur
in the Costa Coffee have the importance that can be directly decreased by the help of dropping
down the number of workers, staff and employees working part-time than the full time worker
who are doing the work efficiently, cost of operation can must have to be reduced or drop drown
by decreasing the wastage that occurs in the operation, or by the help of using modern
technology rather than getting reliable on traditional working methods, usage of latest
technology ovens, refrigerator, cooking system etc. can decrease the consumption of electricity
and other useful energies. It includes four components including supplier, finance, production
and premises. Let's understand something in brief about them:-
 Suppliers – The organization must have to put all it's efforts and try at it's best to get the
deal which can help in increasing the profit of the company, Costa coffee must try to
negotiate with their present suppliers or put efforts in finding a new supplier and buying
anything just at the time of need can be seen as the quality usage of the working capital.
 Finance – Reviewing the deal that the Costa coffee is getting in the market or the services
of finance that costa coffee use, by making sure that the deals that Costa coffee is
receiving must be competitive, positively ensuring that the organization is having a bank
loan or overdraft.
 Premises – deciding that the Costa coffee is using it's space according to uses, they have
to be able to use the unused space for better functioning (.Stubbs, W., 2019).
 Production – This is one of the major component here, Costa coffee must have to be able
to decrease it's business waste and make it possible to cut the material costs, for this
purpose they can create an inventory of less space or decrease the hours in which the staff
work to lower down the cost.
New market entry : One of the most impressive story about the Costa Coffee is that they are
regularly expanding themselves whenever the opportunity approaches (Sakao2020).

Developing new products : The scope of menu creative is best, creativity in menu can increase
the sales.
Strategies usage increasesthe revenue of sales : Sales revenue can be seen as the fuel to no fuel
car in Costa coffee (Ojasalo, 2018).
Finance principles and portfolio management leads to profitability-
Finance principles are the foundational principles which are used to study the finance such as
money has a time value, the higher the reward and many more. Cash flow is the most important
principle of finance which helps to increase the profitability of the business. Portfolio
management is the selection, control of organisation's programmes and prioritisation for the
strategic objectives and the capacity to deliver. Costa coffee uses effective portfolio management
as well as principles of finance which helps them to evaluate the performance of the business by
which, the improvements can be done. It helps to manage the costs effectively, boosts the
productivity and helps in expanding the market. These all leads to increase in profitability of the
business. Effective portfolio management means the projects and portfolio are aligned with the
overall goals of the business as planning helps in successful execution which leads to successful
business. Good portfolio management provides with high level of visibility from strategic as well
as from tactical perspective (Li, N., 2022).
Planning the portfolio of the company which has direct impact on the organisational results.
Implementing effective portfolio in the organisation has many advantages to the organisation. It
provides right direction of the goals which leads to overall positive result to the organisation.
Costa coffee has powerful portfolio management which makes them top coffee brand around the
world because good portfolio management increases the value of the business. Increasing the
reputation of the company also affects the profitability of the company as the effective portfolio
management is considered as the best and suitable way of increasing the profit or growth of the
business (.Nakata. 2020).
Recommendations over the ways under which the sales structure and approaches improves the
financial viability
Sales structure refers to the segmentation of the sales group under the specialized groups.
Thus, the sales structure and approaches of the organization must be designed in such manner
that assures the delivery of the goods and services to the customers within the selected time-
frame. Furthermore, the sales structure and approaches must assure the delivery of the products

and services in the all parts where the customers are scattered. As a result, the business performs
the large number of sales that ensures the higher profit to the business. Earning of higher profit
leads ensures the financial stability to the organization. As a result the financial viability of the
business gets improves (Spychalska-Wojtkiewicz, 2020.).
CONCLUSION
This study has taught about the sales management and it's principle and the ways to increase
sales, revenue in Costa coffee (Chen. 2019).
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