Sales Management Applied to Dell

Submission Front Sheet

Programme	BTEC Higher National Diploma (HND) in Business (RQF).
Unit Title and Number:	Sales Management(Unit 39)
Assignment Title	Sales Management Assignment
Unit Level /Code	05/ (R/508/0598)	Module Tutor Name /Email	Francis Marfo f.marfo@mrcollege.ac.uk
Credit Value	15	Assignment Code	RQFBM-SM390102-V2
Cohort Name	April 19 B	Assignment Date Set	10th September 2020
Student’s Name	Stefan Alexis Butnarescu	Student’sRegistration Number	24667
Submission Date	13-12-20	Distribution Date	14-09-20

Learner’s statement of authenticity

I certify that the work submitted for this assignment is my own. Where the work of others has been used to support my work then credit has been acknowledged.I have identified and acknowledged all sources used in this assignment and have referenced according to the Harvard referencing system. I have read and understood the Plagiarism and Collusion section provided with the assignment brief and understood the consequences of plagiarising.

Signature: Stefan Alexis Butnarescu Date: 13/12/2020

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s this a First Submission Referral Submission

5695words

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Executive Summary

This study has explained the important principles related to sales management with greater concern of sale planning and selling methods as well as sales' reporting. The benefits of the structures of sales have been evaluated as well as this study has even included various ways they are organised with specific examples of organisation. Further, the advantages, as well as importance of “selling through” concept, have been explained. The various principles, as well as techniques related with successful sales, has been analysed and this study has even included ways they help in managing as well as building consumer relationships. Moreover, the value for developing strategies of sales has been explained so that ways higher profits can be yield has been understood.

Introduction

Sales Management is the discipline of business that has focused over practically applying selling techniques and managing the operations of the sales department. This helps a business in selling their products as well as services which resulting in profits, assisting a company in driving commercial businesses. This study will be explaining the important principles related with sales management with greater concern of sale planning and selling methods as well as sales' reporting. The benefits of the structures of sales will be evaluated as well as this study will even include various ways they are organised with specific examples of organisation. Further, the advantages, as well as the importance of "selling through" concept, will be explained. The various principles, as well as techniques related to successful sales, will be analysed and this study will even include ways they help in managing as well as building consumer relationships. Moreover, the value for developing strategies of sales will be explained so that ways higher profits can be yield will be understood.

Michael S. Dell founded the business Dell in the year 1984 as a technology company and has headquartered in Texas, United States. The chief executive officer of the company is Michael S. Dell itself and he had made the business earn annual revenue of £71.39 billion (investors.delltechnologies.com, 2020).

Sales management, planning, methods of selling and sale reporting applied toDell

Sales Management refers to the procedure to develop sale force along with coordination of the selling operations as well as to implement sale's techniques which allows a business to surpass the trading target which comprises of sales planning, method of selling and sales reporting.

Sales Principles

• Defining Value

The value specification can be only defined through consumers and it is based over the needs of the customers. It is important for a sales representative at Dell understand the unique selling point (USP) of the company so that value can be provided to the consumers. The manager of product needs to work harder on offering consumers with innovative products so that it can be differentiated from others in the market. This can help in gain edge over competitors. It is worth noting that values can be derived when a consumer used the products. Moreover, through the process sales value, which are the conversation in-between sales representative and consumer while explaining the proposition of value (leansalesmethod.com, 2018). This helps them in leaning about the needs of the consumers and helping them in structuring as well as prioritising their issues.

• Establishing value streams

Interaction along with a conversation with potential consumer evolves with the buyer getting interested in the various aspects of the procedure. It is important that the procedure of sales can identify the place of the consumer in the process for supporting those (Strandhagenet al., 2018). This helps in optimally creating value across various channels. Sales representatives of Dell need to understand that each consumer has personal priorities and they need to identify them for coming to common terms.

• Flow

The specific segment gets mapped through the establishment of a value stream and the process of sales at Dell should look ahead for matching ways consumers make purchase decisions. Wasteful activities must be identified and be eliminated. The hit rate of sales should be higher so that maximum waste is eliminated.

• Pull

Pull helps in creating flow and it means that sales can only take place when there is production. Therefore, the mechanism of pull needs to ensure that overproduction is not happening in Dell. The business needs to have a clear definition of the inputs of that sales representative does not react toward everything

• Continuous Improvement

The process of sales in Dell should be indefinitely improved for making faster flow as well as seamless. It is required that more data about the requirements of the consumer be collected as well as the way they make purchase decisions. This can help in making the process of buying easier for consumers and there can be difficulties in creating cultures that can foster constant fact-based improvements (Dombrowski and Malorny, 2017).

Sales Planning Process comprises of the following

• Analyse

Dell needs to determine where they would like to by understanding where they were and thy need to analyse their business. Therefore, they need to understand that they are a technology company and their offer their products to consumers as well as businesses that require machinery. Moreover, the business need to understand where the majority of their revenue does comes from and where do they want it to come from (Hulthénet al., 2016). It is worth noting that the business needs to analyses the internal and external business environment which can impact their sales.

• Setting goals

Dell can utilise the framework of SMART so that they can define specific objective with measurement and attainable criteria which can be relevant and time-bound. As for example, Dell might want to achieve £100.39 billion by the end of their last quarter of this year with a greater focus on selling growing their network of distributors by 30%.

• Developing plan of sales

This step can be considered as very crucial for Dell as it can help them in goal achievement. The business needs to outline all their tactics and strategies which they might use and that can help them in overcoming obstacles which they can face while meeting goals. The business needs to write their obstacles as well as risk that they think can potentially occur while sales goal achievement. This can help them in developing ideas that can help in overcoming those obstacles and therefore short-term action needs to be made in order for executing strategies (Nabil et al., 2018).

Figure 1: Sales Planning Process

(Source: marketerstouchpoint.com, 2020)

• Execute

Action is vital for executive the strategies and sales representatives have greater control on it. It is worth noting that sales representative of Dell can plan in ways that helps in taking away various decisions, assisting in usage of creativity for ensuring sales target goals.

Further elaboration needed on this

• Evaluate

The market of technology keeps evolving and Dell needs to make sure that they constantly review their plan every quarter in every meeting. There should be greater focus over things that went well along with the ones that caused issues or any kind of difficulties and step should be taken for making adjustments (Petro et al., 2019). Dell needs to have a scorecard in which they should set benchmarks as well as measure them regularly. Discuss this in terms of the organisation’s sales.

Selling Techniques

• Consultative

Dell can use the technique of consultative by prioritising relationship as well as open dialogues for identifying needs so that solutions can be provided. The business needs to be hyper-focused over their consumers and this can help their professionals in sales to have a better understanding about the challenges that consumers face (Dugan et al., 2020). This can help in position the solutions provided by Dell to the consumers in ways that can be considered as effective and compelling. It is important to understand that planning plays a vital role in this technique and it helps the professional of sales to be prepared towards converting the leads effectively. Moreover, the technique emphasises over connecting with consumers through meeting and creating an impression as well as setting tone. Willingness and openness for engaging in dialogues as well as questioning is vital for understanding consumers and connecting with them. This helps in recommending solutions by describing the capabilities of Dell in a clearer and consider manner through compelling messages which links value with consumer needs. Closing the sales need to be understood as a process which increases likelihood for gaining the commitment of consumers. Follow-up helps in building credibility and differentiating themselves helps in leveraging an effective plan to win the consumer (Dean et al., 2017).

• Creative or Octane

This method follows systematic procedure and stresses on the optimum level of performance by making creative ways of impressing consumers and challenging the prospect for making purchase. Professionals of sales in Dell need to have newer ideas that can impress prospective buyers so that they can remember sale message for a longer period. It is worth noting that the professional of sales at Dell prepares themselves by absorbing information for making up ideas. Further incubation can help them in storing the idea in their subconscious mind for brewing them and illumination can help them in popping out answers in unexpected movements (Jack et al., 2017). Ideas must be evaluated and any required transformation can be made. Furthermore, implementation is required for converting the ideas in to a method so the competitive edge can be gained.

B2C and B2B Concept

B2B consumers make purchases by involving various participants such as the executives and line manager along with technical staffs including the user. Moreover, on the selling side, salespeople with consumer support representative and accounting manager inducing legal as well as manufacturing gets involved

.

Figure 2: B2C and B2B Consumer Journey Map

(Source: getfeedback.com, 2020)

The buying cycle of B2B consumers at Dell can last for more than a month and up to three months which means they have longer sale cycle. Therefore, B2B is considered as high involvement due to the extensive complex process of thinking before purchasing. Whereas, the B2Ccycle is concerned it has lower involvement then that of B2B as there is one consumer who is the buyer and their journey take few minutes to fewer days with a shorter sale cycle (Iqbal, 2017). Dell’s B2B and B2C targeted consumer is small and larger respectively and the business needs to rethink as well as evolve their selling programs and tactics as well as strategies. Moreover, the business needs to keep in mind about the emerging customers so theta they can plan their branding along with generation of lead as well as after sales engagement (Peltier et al., 2020). It is important to understand that Dell have to deal with single purchases in the B2C market scenario where there aremultiple buyers in B2B. Further, the buying process for B2B and B2C is multiple and single respectively.

Sales planning help the organisations to reach their target market easily and increase profit. Moreover, it is important for the organisations to choose a particular method of selling so that their buyer can purchase the products.

Sales Reportingis an important part of sales planning thatcan help Dell in analysing about their team performance and make any required improvements by understanding weaknesses and strength of the department and consumers along with selling process. It is important to write the summary and the business should include the previous quarter’s numbers and emphasise over the achievements made. Dell needs to number the deals being made at every stages of their pipeline and average their size with the value of every closed deal including closing rate and sale cycle’s length. The business can use a chart in order for visualising the previous and current sale numbers and various factors which impacted and fostered their volume (Sinurayaet al., 2020). It is worth noting that the reporting should have a goal and a schedule including standardised metrics with data submissions and should be enlisted through the assistance of CRM.

Benefits of sales structures applied to Dell

Sales Structure means segmenting the selling team into various specialised group by organising them, keeping in mind consumer demographics along with products numbers and team size. Moreover, the industry size of Dell’s consumers’ needs to be determined as well so that right representative would be able to target correct consumers.

• Geographical structure

The geographical structure also called territorial sale force and it assist the business in assigning each representative of sales to specific area of geography. This helps the Dell in properly managing leads as per territory which assists in lowering the effort of geographical and consumer duplication. Moreover, this structure results in lower cost for a business (Bharadwaj and Shipley, 2020). However, it is worth noting that the professional of sales might have a harder time in developing market or product specialisation. The sizing of territory could be a challenge which can result in uneven opportunities across the geographies.

• Market-based

The market-based structure of sale is even called the consumers sale force and it assists in grouping the professionals of sales by their industry or customers. The professionals of sales at Dell under this structure understand the requirements of their consumers and stronger relationship is build and the control of management is strategically allocated as per various markets. However, it is worth noting that the business might have to incur higher cost under this structure and there are greater chances of geographical duplication.

• Functional

The sales structure named as functional divided responsibilities as per the place of every member in the process of the sale (Micevskiet al., 2019). This can include inside sale along with account manager and a specialist of the product. It is important to understand that this structure can help Dell in having highly efficient activities of selling. However, the business might have geographical and consumers duplications and there can be greater requirements for collaboration.

Benefits to Dell

The geographical structure of sales can help the professional of sales at Dell to have closer conversation with the local consumers by decreasing their travelling time and enhancing their sales hours. Dell can save good amount of expenditure on travelling. It is worth noting that this structure of sales can help the business in reducing any kind of conflicts that happen in the sales group. Moreover, the knowledge of the team regarding the locals of their geography can be enhanced and they will have better understand about the various cultures as well the local cause. Dell can have a safe and concrete structure for organising their sales with the geographical ways of structuring.

The market-based sale structure can provide the professional of sales at Dell with the sufficient required attention to each category of their consumers. This can help the business in maximisation of their services to their consumers with upmost level of satisfaction. It is worth noting that such a structure can provide the business with better planning of their sales and their policies by focusing on every consumer category. Moreover, Dell can even appoint professionals of sales by focusing on the special characteristics of their consumers in each of the category.

The functional sale structure can help Dell in gaining specialisation in every process of the sales due to the expertise each member will have as per their area. This can help the subordinates to perform in a better way which helps in better development of executives in each of the sales area which can provide greater scope of better consumer service (Claro and Ramos, 2018). It is worth noting that each unit of the specialised sales function can have higher efficiency degree. This is because of the group of member in each unit such as inside sale along with account manager and a specialist of the product can perform specialised and limited operations.

Explain the importance and the advantages of the concept of ‘selling through’ others.

Selling-Through refers to the activities of sales that take place when business tries to sell their products to their consumers by other means instead of making a sale directly. The retailer buys as well as stocks the products by getting it form the manufacturer or distributor. It is worth noting that the retailer can have the right to return the units back to the supplier that might be unsold and have credit refund.

Importance and advantages

• Provides route into the market

Dell can reach to various markets by utilising the selling-through option of sale and it can assist them in making their product reach to the farthest corner of a country. The time that would be taken would be very less and the market coverage can be stronger. This can provide Dell with the advantage of better consumer awareness by extending the geographic reach of their business. It is worth noting that if the business sets up their own operations at various corners then it might result in enormous effort and investment (Hullovaet al., 2019). This can be saved through the selling-through concept and Dell can make utilise various distributors as well as e-commerce (Amazon and Alibaba including Jumia) for greater geographical expansion. The distributors such as PC World or Argos as well e-commerce businesses can hold their stocks at the personal sites which can provide the advantage of reduced cost of distribution personal stock of Dell.

• Marketing and sales

Distributors as well as the ecommerce businesses have greater understanding about the markets and are aware of the potential consumers that they might reach and can make sales. Moreover, they have better understating about ways consumers can be made interested. Dell can have the advantage of gain knowledge about market that they might not be aware of and their product can get into those markets. The distributors as well as ecommerce business can become their sale team and Dell can boost their budget of marketing by building joint promotional campaigns with them. This can help in driving more business and the company can increase their revenue which can drive up the profits.

• Wider base of consumer

Distributors as well as the ecommerce businesses have wider base of consumers and they have various markets that has been constructed by them. Moreover, they are aware of various ways they can reach those consumers. Dell can make use of that information by getting in touch with them through the selling through concept and utilise their hard work that has helped them in gaining valuable data. The advantages that Dell can enjoy are additional base of consumers without any investments into marketing and sales program for capturing newer businesses. Selling-through can provide the businesses with instant access of varieties of consumers as well as prospects that are already attracted to the retailers.

Principles and techniques for successful selling applied to Dell

Successful selling is regarded as the process of taking right steps at every stage of sales process. Based on the product and service being sold by the company, the sales process needs to be changed and applied accordingly (Suchánek and Králová, 2018). However, irrespective of the sector or business background the primary key for successful selling is identifying the sales process

Define or explain what is meant by Customer Relationship Management

Customer Relationship Management can be illustrated as the collection of all strategies and practices through which customer analysis is performed in order to help improve consumer lifecycle (Raab et al., 2016). This process helps in enabling higher consumer retention and propels sales growth. In the case of Dell, this concept will be implemented.

Analyse each of the selling approaches below as a means of engaging in successful selling by chosen organization sales reps

Lead-cold, warm or hot: Colds leads are prospective clients that have never contacted the business or displayed any interest towards business products or services (McMurtry2017) (these are clients that customer agents of dell contact randomly).

Warm leads are clients who have at least showed some interest towards the business at least once through social media networks or other means (these can be seen on the digital pages of Dell).

Hot leads are direct clients contacts that come to the business on their own and showcase a high level of interest in the activities of the business (these are people that come to Dell directly).

In the case of Dell, the business relies upon warm and hot leads primarily.

Prospecting: This method allows through which Dell salespersons conduct outreach activities to different sources through which new leads can be generated. This method takes advantages of different types of platforms such as email, social media and others and considers social selling, event networking and email outreach.

Pre-approach: This strategy allows a preliminary marketing strategy to be created through which social media posts; TV marketing can be used to weed out consumers that are relevant for the business (Malhotra et al., 2017).

Approach: Through this strategy, the salesperson meets the prospective clients of Dell and tries to determine the needs and desires. This helps in understanding what type electronic devices consumers are seeking.

Presentation: An effective presentation focuses on the way in which as per the desires showcased customised promotion or pitch is made to them so chances of sales are elevated.

Handling objections: Consumers might have objections relating to pricing, quality, weight of Dell devices or other issues. It is important for the sales person to be able to use observation and listening skills to formulate a strategy to combat the issues.

Close: In order to close the sales, propositions and benefits such as warranty, low prices, quality assurance and other advantages are proposed through which faith of the consumers are attempted to be raised (Olariu, 2016).

Follow up: Once the Dell purchase is made and a reasonable time has passed, follow up calls can be made in order to understand the way through which services can be enhanced and product issues can be removed.

Critically analyse how the key principles of successful selling can contribute to developing a successful Customer Relationship Management (CRM) in your chosen organization

As presented earlier, the principles of selling focuses upon value creation, creating flow, creating continuous improvement streams and others. The contribution of these on CRM will be presented here:

Follow up: As highlighted by Diffley and McCole (2015), following makes customers agents enquire about what issues and complaints that consumers might have. Strategies through which Dell customer agents can achieve this are through targeted questioning, email surveys and other strategies

After sales service: As postulated by Bhakane (2015), once purchases is made, it is important warranty services such as repairs, replacement and other aspects are provided. These are important as these enable the scope of Dell to ensure customer retention for the future.

Handling conflicts: As proposed by Hassan et al. (2015), conflicting amongst consumers and employees might arise due to limited clarity in polices, rules and other aspects. In the case of Dell, issues related to these are resolved through managerial inventions and other supervisors in the stores.

Attending network events: As presented by Migdadi (2020), networking events helps in meeting suppliers, other prospective businesses and more. This enables Dell the scope of enhancing its reach and expanding its operations with new suppliers that helps in better commodities to be made.

Explain two advantages and disadvantages of CRM to your chosen organisation

Advantages:

• For Dell CRM helps in understanding consumers and facilitates in performing better segmentation

• CRM helps Dell to increase its business growth rate facilitates in controlling customer defection rate

Disadvantages:

• Dell is a costly process to implement as it requires many employees to be able to observe and interact with consumers

• Automation CRM online eliminates human element and creates reliability on machines and algorithm

Sales strategies, profitability and account management within sales structures applied toDell

A sales strategy is critically defined as the documented plan for selling and positioning the services or products of the company to the buyers in a way that differentiates the selling strategy of the company from the other substitute providing companies in the marketplace (Jiang and Ma, 2018). The prime necessity for the companies to opt for sales strategy is that it helps the executives and the employees to provide with clear guidance and objectives for selling the products or services to the desired customers. In the present era of globalization, the selling strategies of the companies are also changing vigorously. The companies that include more innovation in selling the products are considered to be more liked by the customers. As the companies stand out in the crowd, the extent of innovation and customer appreciation is also determined (Moore et al., 2019). Effective sales strategy includes various examples such as hiring the right people according to the repeatable evaluation criteria of the company. Also, training the sales team by making them understand and think as per the customer’s demand is also an effective example for successful sales strategy.

The terms of payment can be effectively used to provide the customers with every detail of expected payments to be made on sales (Claro and Ramos, 2018). Dell can effectively use the payment terms by including the details in the invoice of the products and specify the customers with the time that will be needed to make the payment on any particular purchase. In the invoices of the products, the additional information about the purchase such as expected payment modes, timing, discount available, future offers and special terms can be specified. Moreover, for immediate offers available on different products and services, Dell can choose not to provide the customers with due date for paying for the product, instead request for paying the charges by cash on delivery method or even up the front payment process (Elliott et al., 2019). In the UK market, the standard or default payment term is 30 days. In order to make the payment process easier for the customers, the business can choose to set out different payment modes, or special payment offers and terms for selected customers. Availability of services like EMI and paying quarterly for the products can also be effectively implemented by the use of terms of payment methods (Charoensukmongkol, 2020).

Define and explain what is meant by sales account management

Sales account management is the method through which clients are attempted to be retained through creating long term relations that enables the scope of growing opportunities business opportunities are attempted to be obtained (Ingram et al., 2015).

Dell can opt for product sales structure, where the various other products can be increased in the product lines of the company.

Explain how sales account management can be incorporated into the sales structures of your chosen organization (Product sales structure) to enhance the profitability of the chosen organisation

Different types of sales structures are present for businesses however in the case of Dell, the business follows a product sales structure through which offline, online and other teams are created through which sales of various products is facilitated. The sales account management of loyal consumers are an effective can be enhanced through implementation of communication strategies. These can help learn about the different types of complaints of consumers and help in providing refunds, repairs or provide quality supplements through Dell. This can help reach profitability for the business effective since future purchases business is effective reached through these methods.

Discuss the importance of sales account management to your organisation (selling organisation) and how it can be applied it to your chosen organization to enhance profitability. Also discuss its benefits to the customer (buying organization).

The importance of sales account management can be explored here through boosting the revenue of the business as retained consumers can help in generating higher revenue and profitability rate (Cuevas et al., 2015). Another benefit to the business is that it helps in elevating account control helps in projecting sale. In the context of consumers, it can help in improving customer satisfaction as this will help in creating a consumer journey that is optimised for Dell buyers.

Conclusion

It can be understood that sales management helps in attaining the objectives of the organisation which helps in increasing the profits of the company. Business increases the satisfaction level of their consumers through sales management and can acquire greater share in the market. It is worth noting that sales management help in managing team with greater emphasises over professionals perfuming various activities of selling. Planning is the vital part of sales management as it helps strategies and goals formulation as well as budgets which assist in maximisation of revenue. Sales management helps in setting specific and attainable goals by setting realistic targets and it helps in building stronger relationship with consumers which can be considered as the prime motive. Further, from the above discussion, it can also be concluded that maintaining a standard sales strategy is tremendously important for a company to remain competitive in the business environment.

It can assess the ability of the company to achieve the customers demand and needs along with underrating the changing business environment. In order to determine and establish a standard sales strategy in Dell, the customer based structure has been recommend to enhance the sales management account. Further, the strategies that are presently being used by the company to maintain a smooth payment process and sales management account have also been provided special focus. In order to determine the needs and demands of the customers, the objectives of the company are also to be reframed by increasing the frequency of the customer transactions and fluctuating the prices of the products according to the market demand.

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