INTRODUCTION TO SALES PLANNING AND OPERATIONS
Selling is an important component of marketing. It is the process of communicating with the benefits of products and services through using methods of promotions in order to manage the ongoing exchange of value to the targeted market. Effective sales planning and skilled sales force is also required to make a business, successful. The aim of the following report is to understand the concept of personal selling, sale practice, and sales planning which create opportunity to the readers to put their personal selling skills into practice. In the report the major areas of selling like role and objectives of sales management, the selling process and the planning of proper marketing strategies for a business is
LO1. Understand the role of personal selling within the overall marketing strategy
1.1Explain how personal selling supports other promotional activities
Personal selling play the important role in the promotion process of product and services. Personal selling is the process in which through a personal communication the consumer can be informed and persuaded to purchase products in an exchange situation. The personal selling and the promotional activities could be the post effective for the firm .If Personal selling combines with the advertising so it will useful in order to attract the consumer in better way with having a face to face communication between the sales person and the customer. The personal selling is the best source of public relation. A skilled sales person not only influences the potential customer but also reflects the organization culture for which they are working. Personal selling supports direct marketing in the way to reduce the cost of calling the sale and cost of closing the sales by combining the telemarketing and sales efforts. The element of sales promotion and the personal selling support the activities of each other as in many sales promotion activities the resellers are targeted who are generally presented by the members of sales force (Thomas, 2011).
1.2 Compare how buyer behaviour of Individuals differs from Organisations
The buying behaviour of individuals is related to their attitude and personal traits on the other hands the behaviour of organization relates to its objectives. The buyer also focus to the personal needs and wants but the organisation has to focus on both the company’s objectives and the buyer needs .The major difference between consumer buyer behaviour and organisational buyer behaviour is that customer purchasing product and services ,includes the activates which is related to the buying particular products and services for their personal and household use, where organisation buyers purchases the goods and services for their own use or for resale. To understand the buyer behaviour is difficult for Johnson Brothers but they can understand the organizational behaviour that can help the company to design an effective sales planning (Mullin,2010).company has to focus the behaviour of individual in order to offer them the product as per their need and satisfy them than the competitors. In the industry where Johnson Brothers Ltd is operating it is very important to satisfy the customer to maintain long term profession relationship, for that the company require the skilled sales force. The personal selling skills of is needed to attract the customer and provide them the services which can fulfil their needs (Bolundu, 2013).
1.3 Analyse the role of the sales teams in the overall marketing strategy for the Johnson Brothers Ltd
The sales teams of Johnson Brothers Ltd extensively influence the profitability of the business. The sales team play major roles in order to give the strength the product for achieving the sales performance required by the company. Firstly the task of sales team is to segment the market from which they can chose a target market .The members of sales and marketing team can develop the products as per the needs and wants of existing and potential consumer and offer the product in a attractive way by explaining the feature of product to that can provide the benefits to them (Jonsson, 2010). As the company has garage with a showroom and workshop for servicing and maintenance of customer vehicles in every Borough of London so it is the responsibility of every member of team to facilitate the sales while following the common strategy. Once the team has prepared with the overall marketing strategy, each member of sales team is responsible for implementing a related marketing plan in his area of responsibility. So the each member of Johnson sales team has to take responsibility for achieving the targets for his market segment (Boughton2001).
LO2. Understand the role and objectives of sales management
2.1 Explain how sales strategies are developed in line with corporate objectives
A major cause of success of any organization is its strategies planned according to its objectives .In is needed to develop the sales strategies in order to the organizations goal. If the sales strategies are not in line with the corporate goals the organization can become cause to failure. If the company has the objective to capture the market share its sales strategy will become sales oriented in which the sales team will only focus to sell the product anyhow on the other hand if company wants to create the market image strategy will relate to the customer oriented in which company focus towards the needs of customer and offer them the quality product (Ross, 2004). As per in the case of Plastic Products Ltd company wants to create the product market image it is consider as the objective of the company, so the company will go for product oriented promotion and can aware the target market with the features of product and relate the product features with the benefits .in this way the company can develop the sales strategy in line with its corporate goals (Jagersma, 2010).
2.2 Explain the role of an Organisation’s recruitment and selection procedure
An organisation may have all of the resources from technology to money, but if it does not have the skilled manpower it will struggle to achieve the results it needs.
To Acquire and retain the high-quality, talented and skilled employees is critical to an organisation. The Organisation’s recruitment and selection process plays an important role in the success of any organization (Grimson, 2007). While recruiting the human resource in the company it is needed to determine the current and future human resource needs and there has to be proper job analysis and job evaluation to identify the individual aspects of each job in order to know relative worth. There should be a proper identification and documentation of the process of recruitment and selection by giving the equal opportunity to everyone. As the general manager of Plastic Products wants that the new recruits should be familiar with plastic products and should have experience of selling fast-moving consumer goods. The company would recruit the experiences persons and the one who already aware with the supply, production and properties of plastic and could talk in the same language as other people working at the firm. By this way the aim of company is to include the experienced person while reducing the time of training them. Having all the requirements the company can plan its recruitment and selection procedure and can get the desire sales force (Williams,2011).
2.3 Evaluate the role of motivation, remuneration and training in sales management
The financial performance of the company is depends upon the achievement of sales volume objective and the motivate and trained sales force can easily achieve the sales volume objectives of the firm. In order to motivate the sales persons it is necessary to understand the specific needs of each sales person. The sales person can be motivated financial and non-financial tools. In the financial method salary, commission, incentives bonus and fringe benefits are involved whereas non financial tools are promotion, personal growth job security sales meetings and sales training programme are involved (Scavarda,2012). The main objective of remuneration programme is to attract capable, trained human resource in the company and also to retain workforce, to motivate employees to deliver higher accomplishments in line with the company’s objectives. Sales training can help in developing the skill in the sales force and increasing their confidence level. Suitable sales training is important as the training can increase the employee’s communication skills, help them to learn sales methodology and may help them developing administrative Skills .Training can be given by two ways on the job training and off the job training. For the Plastic Products Ltd employees the motivation is very important to achieve the company’s objectives (Mattiske, 2012).
2.4 Explain how sales management organise sales activity and control sales output
To organize a sales activity and to control over the sales output are the important parts of sales management. The aim of every organization is to achieve the desired profits while increase in the sales volume. The sales management prepare the sales activity according to sales volume of last year. However, it is difficult to predict the sales volume. It is the role of sales manager to create the budget for future sales volume. While organizing the sales activity the sale manager has to coordinate with the production department to know about the past and the future production of the company (Carmo, 2014). The market demand of the product is helpful for the sales department in order to create the sales activity. After going through the past sales position and the future demand the sales manager decide the target for each area of business operation. The every member of sales team is to given the target sales. After finishing the task of organizing the sales force the sales manager's responsibility becomes controlling and evaluating the sales activities. To control over the sales activities the sales manager needs a proper structure of each target market, the demand and the supply of the product in each area is also needed. To maintain the sales volume sales force has to aware with all the information from each sales territory (Zoltners,A.,2004).
2.5 Explain the use of databases in effective sales management
Sales management includes the planning, implementation, and control over sales programs, in addition to recruiting, training, motivating, and evaluating members of the sales force. The effectiveness of sales management is relay on the information from each sales territory. The status of present and past sales should be there in a structured and well maintained way. There should be the proper communication between the sales managers of each sales territory. The information of the needs and wants of consumer helps to produce the products and services in order to satisfy the (Phusavat,2008). For the effective sales management there should be a proper coordination between the sales departments. In Plastic Products Ltd need to have four regional representatives in each sales territory in the palace to two which is at present in the company. To have the quality and skilled sales force the company requires the proper job description and the member who will fulfil the all requirements of the vacant post. In the way to have effective sales management the company has all the information which will help to attain the organizational objectives. The information could help to organize plan and control over the sales managements activities. By having the need of individual sales person, sales manager can easily motivate him /her to achieve the higher performance (Henry, 2011).
LO3 Be able to plan a sales activity for a product or service
3.1 Develop a sales plan for a product or a service
Value of the product - U.K. based company Toys R Us Ltd want to sell it's products then company have to first define the value of the product. Company need to tell customers that the toys help their children to learn new things and make them innovative.
Market position - Before entering into the market Toys R Us Toys R Us Ltd have to find the market position that where they stand. Company product may be an innovative tool for solving a common problem.
Structure of price - Writing a sales plan is an opportunity to establish a pricing strategy. They need to look in the market and find their position and according to that they can establish their prices.
Goals of the company - Toys R Us Toys R Us Ltd have to establish a realistic goals of the company. Outline long and short term plan for the company and work according to that.
Availability of products - Selling of any product have to explain their accessibility. This Toy Ltd company have to make their products available to all over the U. k. For selling of the products in the U.K. Company have to make sure about their supply system.
Advertising approach - Advertising options for the company is television, websites, banners etc. Pick (Kaipia.2007).
Strategy making - After knowing all the factors about the sales plan for the Toys R. Us. can select the strategy and apply it to the sales plan.
3.2 Investigate opportunities for selling internationally
Company have to sell the products at the national levels and then if it is getting good market share then it have to expend it's market internationally. Capturing of the good market share and the customers motivates the customers to go internationally. Company can sell it's products at the internationally level and they can use the advertising techniques for the selling of products. This is also a challenged for the company to go internationally they have to go with the Foreign export and import and their rules and regulations etc. Customers of the foreign countries have their own test and preferences in terms of the chosen of product. Culture also affects the selling at the international (Kazmi,2010). If Toys Ltd companies product are liking by the foreign customers then they should advertising about that products. Another opportunity for selling outside is that if company is full with the financial resources and it want to further invest or company want to expend it's present business. Any company if at the national level making profits and going good then it have to go internationally and expend its business.
3.3 Investigate opportunities for using exhibitions or trade fairs
Exhibitions and trade fairs is just a way to promote any business or their services.
Exhibitions are chance to demonstrate companies products in front of the customers. Customers can easily look at the products advantages and disadvantages. This is a way to test new market or to know about the launch of new product and services. So that Toys Ltd Company can know about what a customer expecting with the products. Trade fairs and the exhibitions is a good opportunity of building a network at the internationally level. These all are the opportunity for Toys Ltd Company to go internationally (Richardson, 2000).
Choosing a right trade fairs and the exhibitions is very necessary for company. If any company is exhibiting then should start by making a profile of the customer which company want to reach. Finding an interest area of the customer is requires and then according to their interest areas trade fairs and the exhibition should be arranged. Giving the good impression on the customers is very important. Company representatives can meet the lots of customers in only one day and they can show their products. Exhibition is also attracting way to show customers what products they have and they can show it by demonstrate it lively. So trade fairs and exhibitions are nationally or internationally create customers.
In the above report the activities involved in the process of Sales management are explained through different business situation. By going through the report the on can know about the selling process. The reader can also understand the planning and controlling of proper marketing strategies for a business and can be able to plan sales strategies in line with corporate objectives.
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