Unit 20 Sales Planning and Operations Assignment copy

Unit 20 Sales Planning and Operations Assignment copy

Unit 20 Sales Planning and Operations Assignment copy

Program

Diploma in Business

Unit Number and Title

Unit 20 Sales Planning and Operations

QFC Level

Level 5

Introduction

Sales planning and operations report has been developed over different concepts related to the sales operations and sales planning. The personal selling supports promotional mix in different ways which are defined within this document. Buyer behaviours and decision making processes in different situation has been discussed through this report. The sales team has wide roles on the  marketing strategy  success. The roles are illustrated in the discussion. The corporate objectives are considered while developing sales strategies. The ways to incorporate the corporate objectives in sales strategies are analysed. The importance of the recruitment and selection processes is discussed along with the role of motivation, training and remuneration in sales management. The role of database in sales management and the organisation of sales activities in controlling the sales output are also analysed. By choosing a product the sales plan has been developed. Further, opportunities of selling internationally and of using exhibitions and trade fairs are investigated.

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Explain how personal selling supports the promotion mix

Promotion is the marketing communication with the customers.Through the promotional activities the organisations tend to attract the potential customers. Promoting the products or services the organisation has to target a particular market or audience. Having a specific market or audience the organisation can have better understanding over the customer preferences and also making the marketing or promotional efficiently. The purpose of promotional mix:

  • To attract the attention of the customers
  • Building the interests of the customers
  • Convincing the customers that the products or services are able to satisfy their needs
  • Leading the customers towards purchasing the products or pulling the customers towards the products (Márcio, Felipe, Suclla and José, 2012)

There are different promotional tools within promotional mix:

  • Advertising
  • Sales promotion
  • Public relation
  • Personal selling
  • Direct marketing (Oliva, and Watson, 2011)

Personal selling has a significant role within the promotional mix. Through personal selling is considered as the direct selling through direct communication with the customers. Through the personal selling an organisation can communicate with the customers over products ability to satisfy their needs. Through personal selling the customers have better options over their requirements. Information over new products is provided through the personal selling. Personal selling is efficient in order to identifying proper requirements of the individual customers. By getting efficient information the organisation can increase the sales volume. Through the personal selling organisation such as Starbucks can be able to identify different requirements of new targeted market or customers. (Oliva, and Watson, 2011).

Personal selling has certain stages:

  • Prospecting: here the identification is done over the finding the potential customers or clients. Sales personnel find the potential clients.
  • Preapproach: By analysing the information of the potential customers the sales professionals analyse the sales personnel can identify the current trends and create a strategy over sales processes.
  • Approach: the sales personnel approach the prospect for building the relationship and also to place the product.
  • presentation: the sales presentation is presented by the sales personnel for communicating the workings of the products and benefits of it and to encourage the buyers.
  • Close: With good skill and courage, sales personnel can face close in the negotiation.
  • Follow up: this is the final step where the sales personnel ensure the delivery of promised products and quality.

Compare buyer behaviour and the decision making process in different situations.

There are different behaviours associated with the buyers. The buyers are the individuals, groups or organisations that tend to buy the products or purchase the services depending on their needs. Buyer’s behaviour refers to the behaviour of the buyers which are related to their buying. Different situations impact over the behaviour of buying.These behaviours and situations can be discussed by considering the different buyers like business and consumers.

  • Product: in B2B market the organisation buys the product or services over the beneficial perspectives of the services and the products. By matching the specification of the services and products with the requirements the organisation can purchase the services or products. Business considers the costs and their benefits over investing the costs. Though the customer in consumer market tends to consider the products over the quality and costs they tend to prefer flexible products. (Márcio, Felipe, Suclla and José, 2012)
  • Need: specific needs are associated with both the business buyers and consumer buyers. Depending on the needs and requirements the business buyers purchase services and products. As per the requirements the business buyers purchase with different amounts and sizes. In consumer market the organisation has to make approaches through promotion to increase the needs within the customers in purchasing the products. The customers in consumer markets purchase in influenced through the advertising and made their decisions on purchasing.
  • Post purchase: in the business market the purchasers are approached with better measures through business meeting and efficient deals as they are considered as the long termed buyers. Through proper discounts and different approaches the buyers in the consumer market are approached. (Thomé, Scavarda, Fernandez, and Scavarda, 2012)
  • Problem recognition: in business market while recognising any problems or any needs the business organisation tends to purchase the products. The problem can be act as internal or external stimuli over purchasing behaviours. In consumer market the buyers purchase also in recognising the needs. (Oliva, and Watson, 2011)
  • Supplier search: in business market the organisation purchase over the search of qualified suppliers. The suppliers with most durable products as well as flexible price are chosen for the purchase.

Analyse the role of sales teams within the marketing strategy

Within the marketing strategy the role of the sales team is significant. Sales team is the group of ales professionals who are responsible for selling the products and services and increase the sales volume of the organisation. (Márcio, Felipe, Suclla and José, 2012) The sales activities are linked with the customers and their demands. On the other hand the marketing activities are developed to build awareness among the customers and to develop such conditions where sales can take place.

Sales team has the role in the market segmentation within an organisation. In order to make efficient sales activities the sales team play a significant role while the wide market of the organisation has been segmented as they have specific responsibilities over their respective regions. The sales members also are related to the marketing plans. The sales team has the responsibilities to place the promotional activities efficiently for representing the image of the organisation. The sales team must concern over the marketing strategy. (Oliva, and Watson, 2011) They prepare the sales plan for the organisation and also use the resources which are available to implement the plan. They implement the plan by connecting the sales plan with the marketing strategy.

The sales team is also involved within the product life cycle- introduction of the product, growth, maturity and decline of the product. In the product introduction the products is introduced in the market where the sales personnel has the main role in promoting the product to gain customer attention. The usages of the products and the benefits by using the products are explained by the sales personnel to the users of customers. (Thomé, Scavarda, Fernandez, and Scavarda, 2012) Within the growth stage, the product and the sales face fast growth. Within this stage, the sales team uses different strategies to sustain the rapid growth within the market. in the maturity stage the sales personnel and sales team has greater duties and roles as the market competition is higher. The sales personnel have to face different challenges while promoting the products. They have to use innovative approaches while promoting the products and having competitive edge in market. At the final stage decline, the sales face continuous in decline. In this stage the new products appear in the market and the company make new product development for approaching the market trend.

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Task 3

3.1 explain how sales strategies are developed in line with corporate objectives

  • Corporate objectives: these objectives are the accurate and sensible goals which are set by the organisation. Within any organisation the direction to the activities are provided by the corporate objectives. These objectives are related to the business activities and linked with the corporate needs. The top management has the responsibilities to set the aim of the corporate needs within the strategy and the sales term has the role in developing such strategies for achieving those aims. (Kotler,  2013)
  • Customer needs and satisfaction: the targeted group of the customers are measured while developing the corporate strategy. For achieving the aims of the corporate needs of the organisation the customers are needed to be satisfied. The sales strategies are developed on retaining the customers by satisfying their needs and the gaining greater amount of revenues for achieving the corporate objectives.
  • Company profitability: profit maximization is the main aspects of every organisation. Through maximizing the profits the organisations such as Starbucks can recover the cost which are acquired in the production of commodities or can invest more in adapting the future opportunities and expansion of business. The sales team has the responsibilities to sale those products in such manner that the organisation can have benefited returns. (Kjellsdotter and Jonsson, 2010)
  • Growth perspectives: strong strategic planning is required for growth perspectives as growth can bring good will of the brand within the market. Through reputation the organisation can also have monetary profits. In this respect proper sales strategies are helpful in obtaining brand reputation among the customers.
  • Competitive analysis: through marketing techniques sales team make competitive analysis which are essential for the new market strategies. (Kotler,  2013)

3.2 explain the importance of recruitment and selection procedures

The recruitment and selection can be referred as the progression of searching and attracting capable candidates for employment. Through different layers and stages of recruitment and selection processes organisations like Starbucks can enhance their current human resource capabilities. These processes are significant for any organisation as through these processes the organisation can make proper evaluation of the skills before recruiting them. (Kaplan, and Atkinson, 2015)

The activities of recruitment and selection processes explore emerging talents and by attracting them in proper ways include them within the workforce. Skilled and qualified talents are attracted through the recruitment processes, who are helpful in achieving the goals of the organisation. Within the selection processes the candidates are evaluated based on their skills and company’s requirement for specific position. Through this process the manager of organisation compare the skills and qualification with the requirements of the organisation.

As  human resources  are essential in achieving the organisational goals organisation should have efficient workforce along with dedication and engagement towards the respective working areas. Proper recruitment and selection processes are resulted in low employee turnovers. (Kjellsdotter and Jonsson, 2010)

The main aims behind the recruitment and selection processes are to employ responsible and reliable organisation. By evaluating the experiences of the candidates the managers of the organisation can employ the new candidates. There different legal framework which are associated with these processes. By following those legal acts the organisation can ensure proper methods of selection and recruitment and also avoid legal consequences. On the other hand these processes are also helpful for the organisation to ensure legal issues which are related with the candidates. (Kaplan, and Atkinson, 2015)

3.3 evaluate the role of motivation, remuneration and training in sales management

  • Role of motivation in sales: through proper motivational measures the management can improve the capabilities of the sales team members and lead them towards attaining the corporate goals of the organisation. The motivational practices are helpful for the sales management to increase the belongingness among the sales team. Through the motivation the sales management can increase the efficiency in the sales personnel and also increase the revenue generation. Motivational practices are the key components within the sales strategies as the management use the motivational practices to increase self esteem within the sales team members. (Kjellsdotter and Jonsson, 2010)
  • Role of remuneration: in the field of sales the remuneration is essential as these are the payments against the performances. As the sales field has been a complex area and is full of competition proper reward is necessary to motivate the sales personnel. By providing monetary reward against the performances the sales team members can be encouraged to improve their performances and achieve the desired goals of the organisation. Having the remuneration in forms of compensation or payment the sales people will be motivated to produce more enhanced performance. (Kjellsdotter and Jonsson, 2010)
  • Role of training: training is essential in every workforce. In the sales management training is playing a vital role. In the field of sales the personnel have to encounter different challenges and competition with the changes in the market and trends. By giving the sales people proper training the sale management improve their skills and also motivate them to obtain proper skills to ensure efficient performances with enhanced communicational skills, interaction abilities, application of sales techniques etc. (Kaplan, and Atkinson, 2015)

3.4 explain how sales management organise sales activity and control sales output

Sales management has the responsibilities in organising the sales activities and controlling the sales output. The sale management execute the sales plan, monitor the performances and sales programmes. Within the management of sales the processes of recruitment and selection, motivating and retaining the sales team are also included. The main objectives of the sales management and operations of sales are

  • Increase the volume of sales,
  • Maximising the profits
  • Continuous growth (Johnston, and Marshall, 2016)

The sales activities are designed within two categories:

  • Sales territory: it is referred as the grouping the customers over the geographical locations and assigning them to individual sales personnel or team. Through proper sales territory design the sale people can approach to the customers with efficient manner it also places easy administration over sales volume with optimised time and cost. This activity of sales is helpful as these can place proper market coverage. (Jacobs, Chase, and Chase, 2010)
  • Organisational structure of sales: through this organisation of sales the proper positions are provided to the sales personnel, conflicts within sales efforts are minimised as well as cooperation can be maximised. Sales organisation is referred as the performance of the sales task. there are certain structures within the sales
  1. functional sales organisation
  2. geographical sales structures
  3. products sales organisation

The sales management has been interconnected with the departments of retail including production, marketing and distribution. There are different tools and techniques used for the sales forecasting and these are used by sales representatives.

Through selecting the proper sales activities the sales output can be controlled. By selecting proper strategies over the objectives the size and the sales volume can be controlled. By collecting proper information of the market situation and the different activities of sales the desired output can be achieved. (Johnston, and Marshall, 2016)

3.5 explain the use of databases in effective sales management

With the changes in the technologies the operations of the organisation in the business, management and sales are also changing. In the current operations of organisation database has been playing a large part. (Jacobs, Chase, and Chase, 2010) Database is the collection of data, which has been used by the organisation to keep the data of different important information. In management of sales the database is necessary for keeping the data about different customers, their demands and requirements, their buying patterns, previous sales practices and their effectiveness, details of the performances of the sales teams and increased sales volumes etc. through the use of the database the sales management can make efficient approaches in the sales area and enhance the relationship between the organisation and the customers.

  • Optimisation of sales: the easy access of the information of previous sales is helpful to optimise the current sales approaches. By making use of the database the sales team can approach the previous customers with more efficient services. On having proper details of the customers the sales personnel can use effect sales techniques to approach the customers. (Jacobs, Chase, and Chase, 2010)
  • Retaining customers: the sales team can retain the customers with efficient manner by using the details of the customers. The details of the customers are useful for communicating with them. These details provide the previous consumption and the manner of consumption of the customers. By use of these details the sales people make efficient approaches to the existing customers in retaining them. (Johnston, and Marshall, 2016) Within the database management the CRM strategy is also included. With the CRM strategy the business can maintain and manage the customer relationship with the organisation. It helps the organisation to boost the customer loyalty. Better management information can be gathered which will helpful and support in decision making phases while targeting a certain buyers depending on their behaviours.

Task 4

4.1 develop a sales plan for a product or service

The sales plan has been developed on the brand of Starbucks. Sales plans are essential for all organisations for outlining the sales targets and developing proper tactics for achieving these targets.

Starbucks is the American coffee company which consist of mane coffeehouse chains. It has been operating in 23,768 locations within different countries. The organisation has been operating by placing different products in its offering. This is also efficient for placing itself in the highest position in the competitive coffee industry. (Chen-Ritzo, Ervolina, Harrison, and Gupta, 2010)

This year the organisation has added a new flavour within its menu. Citrus Green Tea Latte is the new product. It is the mixture of creamy latte, mildly bitter green tea flavour and sweet citrus lemon.

The sales plan for this product:

  • Sales target: by considering previous sales figures of Teavana, the increase of sales 20% on the product has been decided.
  • Sales strategies: the product has been developed by analysing the increasing demands over the tea and the health aspects in the current trends of customers. By adding high quality components and placing higher prices the organisation has been targeting the upper middle class and upper class income customers for the product. The target market consists of 25+ to 50 years old women and men for this product. In this regard the sales strategies include promotions through online measures, selling through stores etc. the organisation is also developing mobile order and pay system for continuing the string growth in market. The staffs should be trained to convince the customers through proper sales techniques. (Chen-Ritzo, Ervolina, Harrison, and Gupta, 2010)
  • Observing demands: for having proper placement of the product the organisation has to observe the demands of similar products in different regions.
  • Distribution channels: the organisation is distributing their products through stores. Apart from this online delivery is also needed to be added in the distribution channel. The websites and social media should be approached for promotions and advertyi8sing of the products.
  • Budget: budget over the promotional activities and sales strategies should be set. The sales activities should be considered within the budget for increasing the efforts of sales. The costs sales training must be included within the budget. (Hahn, and Kuhn, 2011)
  • Monitoring: the sales plan should be monitored on monthly measures over the sales volume to analyse the success of the sales plan and strategies.

4.2 investigate opportunities for selling internationally

There are different opportunities which are associated with selling internationally. International business operations are important for expanding the business and increasing the opportunities for growth and profit margin. The international selling is also beneficial for organisation as facing loss in one region will not impact over the whole business.

There are different opportunities associated with the selling internationally:

  • Expansion of business: selling in international market is related to the approaching different diverse market with different kinds of customers and demands. Starbucks optimises the promotional activities for approaching different markets. (Ingram, LaForge, Avila, Schwepker Jr, and Williams, 2012)
  • Increasing future opportunities: through approaching international markets the organisation can increase the opportunities as well as scopes over the business operations. By selling internationally the organisation like Starbucks can approach the wider market and also approach new customers.
  • Fewer barriers: conducting the sales within the  international market  also lowers the barriers within the trade. In the local business markets selling the products have different constraints and produce limitations in expansion. (Ingram, LaForge, Avila, Schwepker Jr, and Williams, 2012)
  • Reduction of administrative burden: by selling the products on international measures also reduces the administrative barriers.
  • Global network: by approaching in the international market the organisation can enhance its network through global measures. The business can also have better partnership deals and can make profitable mergers. (Hahn, and Kuhn, 2011)
  • Brand image: by selling internationally business can have better profits through increasing the brand reputation. The customers will be attracted to the brands in greater measures if the brand is selling or doing business in diverse markets.

4.3 investigate opportunities for using exhibitions or trade fairs

Trade fairs and exhibitions are the events where differ organisations over different industry or similar industry present their services and products and also attract customers and other organisations in making mergers or collaboration. Through these exhibitions and the trade fairs the organisations can place their products to a wide number of customers. These are also effective in researching over the current market situation and also analysing different strategies of competitors. (Chen-Ritzo, Ervolina, Harrison, and Gupta, 2010) Through the trade fairs and exhibition the organisations can optimise their PR activities by studying the current market trends.

There are certain opportunities provided by these trade fairs and exhibitions:

  • Enhancing communication: through the trade fairs the organisation or the representatives of the organisations can make face to face communication with the customers. This communication is helpful to place direct sales and also in understanding the accurate requirements of the customers. The representatives can also increase the scope of customer relationships.
  • Brand image: the trade fairs and the exhibitions have the main aim to make positive impression over the customers. Through proper interactions and diverse products and services the customers are attracted. These products and interactions also increase the brand reputations. (Hahn, and Kuhn, 2011)
  • Direct sales opportunities: through the trade fairs and exhibitions the sales representatives can gather proper contact information of the potential customers. This information is helpful for making direct sales approaches. Different suppliers and prospective business partners are also approached through these fares and exhibitions. (Hahn, and Kuhn, 2011)

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Conclusion

Developing sales activities are essential for the  decision making  proper approaches in the market and having profits over business operations. The sales teams and sales management are associated with the sales strategies. Co-operations with the sales managers and sales personnel are essential for executing the sales plan. Linking the sales plan with the marketing strategies business can have profits. As the field of sales has been incorporated with diverse demands and changing trends and also huge competition, the sales team members should be motivated through different motivational approaches, remunerations and training. The training and the motivational aspects are helpful for the management to encourage the sales team in increasing their performances. Sales management has been a vital tool for organising the sales activities and controlling the sales outcomes. 

Reference

Chen-Ritzo, C.H., Ervolina, T., Harrison, T.P. and Gupta, B., 2010. Sales and operations planning in systems with order configuration uncertainty. European journal of operational research205(3), pp.604-614.
Hahn, G.J. and Kuhn, H., 2011. Optimising a value-based performance indicator in mid-term sales and operations planning. Journal of the Operational Research Society62(3), pp.515-525.
Ingram, T.N., LaForge, R.W., Avila, R.A., Schwepker Jr, C.H. and Williams, M.R., 2012. Sales management: Analysis and decision making. ME Sharpe.
Jacobs, F.R., Chase, R.B. and Chase, R., 2010. Operations and supply chain management. McGraw-Hill/Irwin.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation, technology. Routledge.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Kjellsdotter Ivert, L. and Jonsson, P., 2010. The potential benefits of advanced planning and scheduling systems in sales and operations planning. Industrial Management & Data Systems110(5), pp.659-681.
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