What is Sales Management? To understand the functions of management, you must first examine what management is about. The general functions of sales management or marketing management are as follows: 1. Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations.It is an important business function as net sales through the sale of products and services and resulting profit drive most commercial business. Sales-management differs from other fields of management, mainly in different aspects: the selling operation of a business firm does not exist in isolation. A sales manager must be very clear about his role in the organization. The management must make sure sales managers follow a proper channel to reach out to the customers. The financial results of a firm depend on the performance of the sales department. The sales-engineers are qualified to analyze technical-problems, which may be confronting a particular organization and they can give the right recommendations for developing efficient operations. Sales management refers to the administration of the personal selling component of a company’s marketing program. 2. Sales professionals should follow the below mentioned steps for maximum sales and better output. Recruiting the right people to execute the sales plan . Sales planning and policies 2. By running reports on sales figures over a period of time, especially those produced by current members of the sales team, you’ll be able to calculate the most sensible and achievable target for individuals and the team as a whole. This includes communicating updated goals based on performance, the economy, and the competitive environment. This is a crucial aspect of the business as net sales of products and services draw profit of the business. Marketing research 6. The sales management formulates the objectives for the sales department, which is subordinate to the top management. Liaison Functions, Read Complete: Sales Management Functions, The importance of sales management are:1. It pays to adopt a step by step approach. Pricing policies and price fixing 3. Promotional steps including personal selling, Integration of various elements internally. Functions of Sales Force Automation. It involves responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation. Sales Management: Functions and Importance of Sales Management – Explained! To service existing accounts, (customers). The implementation phase involves selecting appropriate sales personnel as well as designing and implementing policies and procedures that will direct their efforts towards the desired objectives. It is the income-producing division of a business. Companies, salespeople and customers are different levels in the marketing chain; and these stand to benefit by sales activities. Sales manager is hired to look after the sales and to manage them. Through their persistent efforts to create and stimulate demand, salespeople could be said to be the life and blood of a productive economic system. 3. Sales ManagementSales Management Sales management is attainment of an organization'sSales management is attainment of an organization's sales goals in an effective & efficient manner throughsales goals in an effective & efficient manner through planning, staffing, training, leading & controllingplanning, staffing, training, leading & controlling organizational resources. Specifying the sales quota to be achieved for each … Sales are the lifeblood of any organisation and managing the sales process is one of the most important functions of any business. This is a brief introductory tutorial that explains the functions in sales and distribution management. Sales management has gained importance to meet increasing competition and the need for improved methods of distribution to reduce cost and to increase profits. Contact Management … Do not ignore any step. All functions and activities are considered as a dynamic process, composed of numerous interrelated parts, aiming to achieve the organizational sales objectives. Report a Violation. He should know what he is supposed to do at the workplace. Save my name, email, and website in this browser for the next time I comment. Related to all the activities which facilitates flow of goods to customers. Along with this, there may be other department s also like Finance, HR, Sales and Marketing departments etc. Sales management refers to the administration of the personal selling component of a company’s marketing program. The top 10 Sales Management functions: COACHING ACCOUNTABILITY MOTIVATION RECRUITING DEVELOPMENT LEADERSHIP RELATIONSHIPS TACTICS STRATEGY SYSTEMS AND PROCESSES Other sales management functions: Territory Management Paperwork Meetings Travel Joint calls We know well what these departments do and how they help the business to reach success. To the Consumers: Professional people know their product or service, its major uses, limitations and benefits; which helps them to serve their customers, quite effectively. Account Management: With the help of SalesForce automation software, managers, as well as salespeople, can get a snapshot of the complete business scenario, especially the part of Customer Relationship. Advertisement policies such as media selection and target audience. It is indirectly responsible for the fulfillment of the objectives of top management. Sales management today is the most important function in a commercial and business enterprise. Posted by Dave Kurlan on Tue, Nov 10, 2009 @ 09:11 AM Tweet . Image Guidelines 5. To sum up, marketing management may be defined as the process of management of marketing programmes for accomplishing organisational goals and objectives. A sales manager is … Setting sales targets and sitting back is not a winning approach. What is Sales Management? Satisfying customers and participating in marketing activities. The various functions of sales department are: 1. And in response, sales management systems have become more technologically sophisticated. Different sales management functions are: 1. However, a sales manager would know that any sales-based organization is dependent on their revenue, profits and the public image of their sales people. Advertising 3. To secure a targeted percentage of certain accounts of a business. Sales Management – 20 General Functions . But what about the functions of Operation Management. To keep personal expenses within specified limits. Goal-Oriented: Similar to other management activities, sales management also have a specific purpose and intended for the achievement of specified goals or objectives. Further their sales plans to a greater extent rest upon the requirements and motives of the consumers in the market aimed at. It involves a comparison of the actual with the desired results, finding out reasons for the deviation and taking corrective actions accordingly. Geektonight is a vision to provide free and easy education to anyone on the Internet who wants to learn about marketing, business and technology etc. Initial Contact/Lead In recent years, that process has changed dramatically as the vast majority of sales take place online or over the phone instead of in person. Sales Force Management Functions play a vital role in the success of the marketing plan. Effective sales management helps you get the most out of your salesforce. Revenue, sales, … Sales management programme is formulated to respond effectively to an organization’s environmental circumstances, and these must be consistent with the businesses competitive and marketing strategies. Because there are so many moving parts within an organization, the sales management process needs to be fully grasped to ensure each “aspect” of the collective sales effort is operating efficiently.. These functions differ from company to company according to their size and the nature of their products. Evaluation and Control. Control of sales force 5. Updated on: November 16, 2019 Leave a Comment The objectives of sales management are decided in light of Corporate objectives. These are also typically the goals and performance indicators of sales management. Come on! It involves proper supervision and implementation of the plans with the help of proper communication, motivation and leadership. The following are the other factors showing importance of the sales management: (i) Introduction of new products in the market. Top 10 Sales Management Functions. To provide technical advice wherever necessary. The apportioning of time between the planning and operating functions depends upon the nature of the products, the size of the company and the supervisory structure created. To determine sales volume in ways that contribute to profitability. Before publishing your articles on this site, please read the following pages: 1. He is responsible to the customer and society for the continuing growth of the organisation. This involves probing into the sales records of the company, analysing the reports of salespeople, investigation of marketing trends and other environmental factors. (ii) Increasing the production of existing products. Creating a proper image for the company and its products/services. Canfield define Sales Management involves the direction and control of salesmen, sales planning, budgeting, policymaking, coordination of marketing research, advertising, sales promotion and merchandising and the integration in the marketing programme of all business activities that contribute to the increased sales and profits.”. It includes but is not limited to Customers’ personal details, past contacts, nature of the discussion, orders and order status, etc. Sales management involves a number of responsibilities. Formulation of a Strategic Sales Programme 2. TOS 7. Consumers 3. Business Firms, Read Complete: Importance of Sales Management, Sales management process has three stages:1. Managerial functions 2. Sales Management: Functions and Importance of Sales Management – Explained! Defining the sales territories . Prohibited Content 3. Sales Correspondence 4. Did we miss something or You want something More? The business, is now society-oriented, on human-welfare aspects. Sales refers to the process of selling, whereby product is offered for sale to the customer at a certain price and at a given period of time. Content Filtrations 6. It requires the efficient use of resources combined with the guidance of people in order to reach a specific organizational objective. Some companies might target a premium pricingfor a product to make it premium in the market. If you are a sales manager, then you would relate to every word. On the basis of the functions performed by the sales manager, he may be classified into … But there is one more aspect to the contribution of profit by sales. An important function that takes much time of a sales manager is the management of the sales force. Systematic Approach: It is an organized way of handling the sales function of the comp… Most sales support activities were performed independently and inconsistently for each country, resulting in a lack of standardization and repeated bid and proposal activities. To understand the concept of sales management clearly, we must go through its following characteristics: 1. Sales management facilitates the directions of activities and functions which are involved in the distribution of goods and services. Sales brings turnover for the company and this turnover results in profits. These are my Top 10 Sales Management Competencies. Perhaps more than in any other business area, sales people need hands-on support and guidance to help them succeed in a particularly challenging role. Executing the marketing strategy successfully requires efficient and well-trained Sale Representatives. 4. Additionally, there was no common sales support and management structure. Of course, previous performance does not always indicate how anyon… (vi) Rise in per capita income and demand for more goods by the consumers. It involves planning, implementation and control of marketing programmes or campaigns. Plagiarism Prevention 4. Sales management system is a software that automates and manages the sales processes (such as creating sales force, implementing sales strategies) to increase sales. To assist the dealer in selling the product line. Achieving the sales targets of the organisation. Recruitment: An essential part of the effective sales force management is recruitment. Naturally, sales has a major contribution to profit and it is categorized as a profit functionin several organizations. Distribution policies and channel selection criteria. Tell us what you think about our post on What is Sales Management in the comments section and Share this post with your friends. 3. Importance of Sales Management; Image Source: pixabay.com. Strategy and sales management . To achieve this objective the organisation has to give heed to the right pricing, effective advertising and sales promotion, discerning distribution and stimulating the consumer’s through the best services. It involves the determination of the structure of the sales force and delegation of authority which is supposed to be necessary to achieve the organisation’s objectives. In this episode, Jeff Bajorek, a proven sales expert, and trainer as well as the author of "The Five Forgotten Fundamentals of Prospecting" shares his perspectives and experiences of the critical functions of sales management that drive business growth. 5. Equally important here is the fact, that an economy needs individuals, to sell what is produced. Advisory functions 4. Implementation of the Sales Programme 3. Types of Sales Manager. Training the people selected to build competency in achieving the targets set and fulfilling the organization’s objectives. To provide advice and assist the middlemen. This involves probing into the sales records of the company, analysing the reports of salespeople,... Planning. Try Zoho CRM's Sales management software for free. To the Society: If jobs are to be made available for all those, who want and expect them, the economy must continuously expand its production of goods and services. Profit maximization through sales maximization. (iii) Reducing cost of sales and distribution. Sales management process have three stages: The strategic sales programme should consider the environmental factors faced by the firm. Marketing Management: Meaning and Importance of Marketing Management – Explained! In simple terms, a sales manager’s main goal is to create and maintain a high performing sales team. Many salespeople are among the best-paid people in the business. Disclaimer 9. Sales management is the process of handling all aspects of a sales team's activities to ensure that company goals are met. It involves setting objectives of the firm’s sales efforts, formulation of sales strategies and policies in... Organisation. This tutorial also throws light on the strategies applied in distributing tasks to the sales personnel and their performance. Copyright 10. The objective of sales management is to sell the product at the optimum price. 2. Sales managers who are responsible for hiring and firing members of their sales team must learn some human resources skills. Society 2. These standards must be discussed with staff. Content Guidelines 2. It involves setting objectives of the firm’s sales efforts, formulation of sales strategies and policies in order to achieve those objectives. Once goals have been established, the process continues by providing tools and training to reach … It includes the planning, implementation, and control of sales programs, as well as recruiting, training, motivating, and evaluating members of the sales force. One of the functions of sales management is to ensure that targets are reached, but targets that are set too high will never be reached. To assist in training of middleman’s sales personnel. B.R. A sales manager plays a key role in the success and failure of an organization. National income is the seventh importance of sales department/management and it means that selling results improve the production and marketing policies which results in better quality of products and services that results in a better standard of living and more employment opportunities are generated due to sales management. Marketing is understanding the requirements of the customers in such a way that whenever any new product is introduced, it sells itself. To change this, the company adjusted its sales support functions and manager oversight to the ideal ratios we’ve outlined. The prime responsibility of the salespersons is to sell the goods, produced by the organization, at a profit. The sales management process can include goals for individual staff members, departments, and the entire company. Function, Objective, Process, Definition, Formulation of a Strategic Sales Programme. For example, an insurance agent can analyze the hazards and risks that confront a client’s business or home-situation, examine existing coverage and offer helpful advice, in order to eliminate the gaps or overlaps in coverage, in addition to saving the client’s money. Continuous Process: The sales manager needs to perform sales management functions regularly, and this process is never-ending. Top 6 Qualities that makes a Successful Salesman – Explained. According to Philip Kotler, “Marketing management is the analysis, planning implementation and control of programmes designed to bring about desired exchanges with target markets for the purpose of achieving organisational objectives. But if the sales team drops the price, then the objectives are not being met and t… Sales management refers to the administration of the personal selling a company's product line(s). Sales management, apart, from the management of personal selling, encompasses marketing activities like advertising, sales promotion, marketing research, physical distribution, pricing, merchandising and so on. (v) Development in the means and communication of transportation within and outside the country. He is the one who plays a pivotal role in achieving the sales targets and eventually generates revenue for the organization. According to Philip Kotler, “Marketing management is the analysis, planning implementation and control of programmes designed to bring about desired exchanges with target markets for the … Advertising and promotions 4. To search and maintain customer cooperation. So sales management is a balancing act between providing guidance and direction without taking this to extremes. Sales force management functions perform the following are. How do you define management?Management is a process with a social element. It should organize and plan the company’s overall personal-selling efforts and integrate these with the other elements of the firm’s marketing strategy. Preparing the Sales Plan . Sales Management Cycle Analysis. The general functions of sales management are as follows: 1. Different sales management functions are: A sales manager looks after and manages a firm’s personal selling functions. The evaluation phase involves developing methods for monitoring and evaluating the performance of the sales force. It is one of the fastest and surest routes to enter into the top management bracket. Thus, simultaneous with the changes taking place in the business, as well as marketing-orientation, anew concept of sales management has evolved. Marketing and Sales Management in Sales Organizations. We need to understand the functions of operations management clearly. Place in the comments section and Share this post with your friends other factors showing Importance of management... 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