In any business, sales management is an important thing that must be considered if the business is to survive and make a profit.
Sales management originally referred exclusively to the sales force. Later the term had a broader meaning besides personal sales management.
Sales management specifically contributes to achieving the marketing objectives of a company. In fact, sales managers set their personal sales goals and formulate personal selling policies and strategies.
Want to know what sales management is all about? Keep reading this article until the end.
Table Of Content
1 What is Sales Management?
1.1 Sales management according to some experts:
1.2 Sales Management Process
1.3 1. Formulation of Strategic Sales Program
1.4 2. Implementation of Sales Sales Program
1.5 3. Evaluation and Control
2 Goals of Sales Management
2.1 1. Quantitative Goals (Short-Term)
2.2 2. Qualitative (Long-Term) Goals
3 Sales Management Functions
3.1 Managerial functions
3.1.1 Planning
3.1.2 Organizing
3.1.3 Briefing
3.1.4 Control
3.1.5 Coordination
3.2 Staff functions
3.3 Advisory function
3.4 Connecting Function
4 Sales Management Cycle
4.1 Analisis
4.2 Planning
4.3 Organizing
4.4 Briefing
4.5 Control
5 Benefits of Sales Management
5.1 For Society
5.2 For Consumers
5.3 For Companies or Business
What is Sales Management?
Sales management refers to the administration of the personal sales component of a company’s marketing program. This includes planning, executing, and controlling sales programs, as well as recruiting, training, motivating, and evaluating members of the sales force.
Sales management, apart from personal selling management or personal selling, includes marketing activities such as advertising, sales promotion, marketing research, physical distribution, pricing, merchandising, and so on.
Three Main Aspects of Sales Management
- Sales Operation
- Sales strategy
- Sales Analysis
The American Marketing Association (AMA) defines sales management as: “Planning, directing, and controlling personal sales, including recruiting, selecting, equipping, assigning, directing, supervising, paying, and motivating as these tasks, apply to the personal sales force”.
BR Canfield defines Sales Management as involving the direction and control of salesmen, sales planning, budgeting, policy making, coordination of marketing research, advertising, sales promotion and merchandising and integration in the marketing program of all business activities that contribute to increased sales and profits. ”
Sales Management Process
The sales management program is formulated to respond effectively to the state of the organization’s environment, and it must be consistent with business competition and marketing strategies.
The sales management process has three stages:
1. Formulation of Strategic Sales Program
A strategic sales program must take into account the environmental factors facing the company. It should organize and plan the company’s overall personal selling effort and integrate it with other elements of the company’s marketing strategy.
2. Implementation of Sales Sales Program
The implementation phase involves selecting the right sales force and designing and implementing policies and procedures that will direct their efforts towards the desired goals.
3. Evaluation and Control
The evaluation phase involves developing methods for monitoring and evaluating sales force performance.
Sales Management Goals
Sales management objectives are categorized into two types:
1. Quantitative Goals (Short-Term)
- To maintain and seize market share.
- To determine sales volume in a way that contributes to profitability.
- To get a new account of a given type.
- To keep personal expenses within prescribed limits.
- To secure a targeted percentage of a specific business account.
2. Qualitative (Long-Term) Goals
- To do all sales work.
- To serve existing accounts, (customers).
- To seek and maintain customer cooperation.
- To assist dealers in selling product lines.
- To provide technical advice wherever needed.
- To assist in the training of intermediary/distributor sales personnel.
- To advise and assist intermediaries/distributors.
- Collect and report market information of interest and use to company management.
Sales Management Function
Sales management is seen as having a systematic relationship with one another. All functions and activities are considered as dynamic processes, consisting of many interrelated parts, which aim to achieve the organization’s sales goals.
Managerial function
Planning
- Forecasting requests
- Sales area planning
- Private sale
- Promotional efforts.
Organizing
- Structure
- Resource allocation
- The assignment of responsibilities
- Delegation of authority
Briefing
- Leadership
- Motivation
- Communication
- Promotion measures including personal selling
Control
- Delegation
- quota setting
- Performance evaluation
- Incentives
- Budget
Coordination
- Connection
- Integration of various elements internally
- Public relations
- Creating good intentions
Staff function
- Recruitment and selection.
- Implementation and performance evaluation
- Training and development.
- Career development.
- Compensation and incentives.
- Motivation and empowerment.
Advisory function
- Product attributes/quality aspects.
- Pricing policy.
- Promotional measures
- Personal selling aspect.
- Distribution policy and channel selection criteria.
- Advertising policies such as media selection and target audience.
- Aspects of transportation and warehousing.
Connecting Function
- Production department.
- Finance Department.
- Marketing department.
- R&D (Development) Department
- Distribution network
- After-Sales Service Department
Sales Management Cycle
A sales manager looks after and manages the company’s personal sales function.
The Sales Management Cycle is shown below:
Analysis
This involves investigating into the company’s sales records, analyzing sales force reports, investigating marketing trends and other environmental factors.
Planning
It involves setting the goals of the company’s sales efforts, formulating sales strategies and policies to achieve those goals.
Organizing
This involves determining the structure of the sales force and delegating the authority deemed necessary to achieve organizational goals.
Briefing
It involves proper supervision and execution of plans with the help of proper communication, motivation and leadership.
Control
This involves comparing the actual with the desired results, finding out the reasons for deviations and taking corrective action accordingly.
Sales Management Benefits
For Society
To Society: If jobs are to be available to everyone, who wants and expects them, the economy must continue to expand its production of goods and services.
The usual fact is, that the economy needs individuals, to sell what it produces. Through their persistent efforts to create and stimulate demand, salespeople can be said to be the life and blood of a productive economic system.
For Consumers
To Consumers: Professionals are aware of their products or services, their uses, limitations and key benefits; which helps them to serve their customers, quite effectively.
For example, an insurance agent can analyze the hazards and risks facing a client’s business or home situation, examine existing coverage and offer helpful advice, to eliminate gaps or overlaps in coverage, in addition to saving the client money.
Experts in sales are qualified to analyze technical problems, which a particular organization may face and they can provide appropriate recommendations to develop efficient operations.
For Companies or Business
For Business Firms: A business enterprise can be profitable only if its revenues exceed its costs. The salesperson’s primary responsibility is to sell the goods, produced by the organization, at a profit. The company, sales force, and customer are different levels in the marketing chain; and this will benefit from sales activity.
Salespeople are an important source of field intelligence by providing critical (and sometimes crucial) information about the nature of competitive activity, as well as about changing customer needs.
The financial results of a company depend on the performance of the sales department. Many salespeople are among the best-paid people in the business. This is one of the fastest and surest routes to getting into the top management bracket.