Sales Management: Functions and Importance of Sales Management – Explained! 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. To service existing accounts, (customers). 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. The management must make sure sales managers follow a proper channel to reach out to the customers. He is the one who plays a pivotal role in achieving the sales targets and eventually generates revenue for the organization. It includes but is not limited to Customers’ personal details, past contacts, nature of the discussion, orders and order status, etc. Goal-Oriented: Similar to other management activities, sales management also have a specific purpose and intended for the achievement of specified goals or objectives. Image Guidelines 5. 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. Marketing Management: Meaning and Importance of Marketing Management – Explained! Promotional steps including personal selling, Integration of various elements internally. 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. To change this, the company adjusted its sales support functions and manager oversight to the ideal ratios we’ve outlined. The general functions of sales management or marketing management are as follows: 1. (iii) Reducing cost of sales and distribution. Try Zoho CRM's Sales management software for free. Profit maximization through increased consumer satisfaction and market share. 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. Related to all the activities which facilitates flow of goods to customers. 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 What is Sales Management? To understand the functions of management, you must first examine what management is about. To secure a targeted percentage of certain accounts of a business. Advisory functions 4. 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.. What is Sales Management? The objective of sales management is to sell the product at the optimum price. Content Filtrations 6. Further their sales plans to a greater extent rest upon the requirements and motives of the consumers in the market aimed at. 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 provide advice and assist the middlemen. Many salespeople are among the best-paid people in the business. Consumers 3. Business Firms, Read Complete: Importance of Sales Management, Sales management process has three stages:1. Sales management is the process of handling all aspects of a sales team's activities to ensure that company goals are met. It involves planning, implementation and control of marketing programmes or campaigns. Additionally, there was no common sales support and management structure. Sales Management – 20 General Functions . We need to understand the functions of operations management clearly. 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. An important function that takes much time of a sales manager is the management of the sales force. To collect and report market information of interest and use to the company management. Sales management process have three stages: The strategic sales programme should consider the environmental factors faced by the firm. Updated on: November 16, 2019 Leave a Comment The objectives of sales management are decided in light of Corporate objectives. It is the income-producing division of a business. Control of sales force 5. Equally important here is the fact, that an economy needs individuals, to sell what is produced. All functions and activities are considered as a dynamic process, composed of numerous interrelated parts, aiming to achieve the organizational sales objectives. Disclaimer 9. But there is one more aspect to the contribution of profit by sales. In simple terms, a sales manager’s main goal is to create and maintain a high performing sales team. Two sales management definition are mentioned below: American Marketing Association (AMA) define sales management as: “The planning, direction and control of personal selling, including recruiting, selecting, equipping, assigning, routing, supervising, paying and motivating as these tasks, apply to the personal sales force“. Sales management system is a software that automates and manages the sales processes (such as creating sales force, implementing sales strategies) to increase sales. It involves setting objectives of the firm’s sales efforts, formulation of sales strategies and policies in order to achieve those objectives. The business, is now society-oriented, on human-welfare aspects. The sales management process can include goals for individual staff members, departments, and the entire company. Marketing and Sales Management in Sales Organizations. Advertising 3. 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. If you are a sales manager, then you would relate to every word. Though all the departments of any organization are indirectly focused on driving sales, sales management as a term applies to that section of the business that directly interacts with lead or prospect and tries to get them to make a purchase. Profit maximization through sales maximization. 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 … The various functions of sales department are: 1. It involves responsibility to achieve the objectives and to fulfill specific organizational purposes through economical and effective planning and regulation. Sales-management differs from other fields of management, mainly in different aspects: the selling operation of a business firm does not exist in isolation. Achieving the sales targets of the organisation. 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. Before publishing your articles on this site, please read the following pages: 1. To assist the dealer in selling the product line. Along with this, there may be other department s also like Finance, HR, Sales and Marketing departments etc. The sales management formulates the objectives for the sales department, which is subordinate to the top management. Naturally, sales has a major contribution to profit and it is categorized as a profit functionin several organizations. Businesses that thrive execute one thing very well: sales management. Report a Violation. Liaison Functions, Read Complete: Sales Management Functions, The importance of sales management are:1. This tutorial also throws light on the strategies applied in distributing tasks to the sales personnel and their performance. Effective sales management helps you get the most out of your salesforce. 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. Society 2. Importance of Sales Management; Image Source: pixabay.com. How do you define management?Management is a process with a social element. Sales management is a business discipline which is management of a firm’s sales operations and focused on practical applications of techniques used in sales. Tell us what you think about our post on What is Sales Management in the comments section and Share this post with your friends. 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. (vi) Rise in per capita income and demand for more goods by the consumers. 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.”. TOS 7. Advertisement policies such as media selection and target audience. Of course, previous performance does not always indicate how anyon… It includes the planning, implementation, and control of sales programs, as well as recruiting, training, motivating, and evaluating members of the sales force. 4. 2. He is responsible to the customer and society for the continuing growth of the organisation. But if the sales team drops the price, then the objectives are not being met and t… Executing the marketing strategy successfully requires efficient and well-trained Sale Representatives. Sales management refers to the administration of the personal selling component of a company’s marketing program. Come on! It involves proper supervision and implementation of the plans with the help of proper communication, motivation and leadership. Setting sales targets and sitting back is not a winning approach. Implementation of the Sales Programme 3. The following are the other factors showing importance of the sales management: (i) Introduction of new products in the market. 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. (v) Development in the means and communication of transportation within and outside the country. Sales planning and policies 2. 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. Contact Management … Planning and control of sales 7. This involves probing into the sales records of the company, analysing the reports of salespeople, investigation of marketing trends and other environmental factors. 5. But what about the functions of Operation Management. Copyright 10. Sales force management functions perform the following are. Do not ignore any step. Functions of Sales Force Automation. Most sales support activities were performed independently and inconsistently for each country, resulting in a lack of standardization and repeated bid and proposal activities. Save my name, email, and website in this browser for the next time I comment. Top 6 Qualities that makes a Successful Salesman – Explained. Learn Human Resources Skills . Formulation of a Strategic Sales Programme 2. Sales Correspondence 4. These are my Top 10 Sales Management Competencies. 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: Functions and Importance of Sales Management – Explained! So sales management is a balancing act between providing guidance and direction without taking this to extremes. Once goals have been established, the process continues by providing tools and training to reach … And in response, sales management systems have become more technologically sophisticated. 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. Posted by Dave Kurlan on Tue, Nov 10, 2009 @ 09:11 AM Tweet . A sales manager plays a key role in the success and failure of an organization. Sales management has gained importance to meet increasing competition and the need for improved methods of distribution to reduce cost and to increase profits. The list, in no particular order is probably different, in many ways, as much for what's not on it as for what is: COACHING; ACCOUNTABILITY; MOTIVATION; RECRUITING; DEVELOPMENT; LEADERSHIP; RELATIONSHIPS; TACTICS; STRATEGY; … To assist in training of middleman’s sales personnel. Sales management today is the most important function in a commercial and business enterprise. Sales Management Cycle Analysis. The prime responsibility of the salespersons is to sell the goods, produced by the organization, at a profit. 3. A sales manager is … To Business Firms: A business firm can be profitable only if its revenues exceed its costs. Recruitment: An essential part of the effective sales force management is recruitment. It relies heavily on designing the organisations’ offering in terms of the target markets needs and desires and using effective pricing, communication and distribution to inform, motivate and service the market.”. Sales management involves a number of responsibilities. Different sales management functions are: 1. To understand the concept of sales management clearly, we must go through its following characteristics: 1. He should know what he is supposed to do at the workplace. Managerial functions 2. Sales are the lifeblood of any organisation and managing the sales process is one of the most important functions of any business. It involves a comparison of the actual with the desired results, finding out reasons for the deviation and taking corrective actions accordingly. Sales or marketing management is concerned with the chalking out of a definite programme, after careful analysis and forecasting of the market situations and the ultimate execution of these plans to achieve the objectives of the organisation. To provide technical advice wherever necessary. Different sales management functions are: A sales manager looks after and manages a firm’s personal selling functions. Continuous Process: The sales manager needs to perform sales management functions regularly, and this process is never-ending. Plagiarism Prevention 4. Systematic Approach: It is an organized way of handling the sales function of the comp… 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. Function, Objective, Process, Definition, Formulation of a Strategic Sales Programme. Through their persistent efforts to create and stimulate demand, salespeople could be said to be the life and blood of a productive economic system. Some companies might target a premium pricingfor a product to make it premium in the market. Sales management objectives are categorized into two types: Sales management is viewed as having a systematic relationship with each other. The evaluation phase involves developing methods for monitoring and evaluating the performance of the sales force. It involves setting objectives of the firm’s sales efforts, formulation of sales strategies and policies in... Organisation. The general functions of sales management are as follows: 1. Sales Force Management Functions play a vital role in the success of the marketing plan. This is a brief introductory tutorial that explains the functions in sales and distribution management. It is indirectly responsible for the fulfillment of the objectives of top management. It is one of the fastest and surest routes to enter into the top management bracket. To sum up, marketing management may be defined as the process of management of marketing programmes for accomplishing organisational goals and objectives. 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. 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. 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. Recruiting the right people to execute the sales plan . Pricing policies and price fixing 3. This includes communicating updated goals based on performance, the economy, and the competitive environment. Sales manager is hired to look after the sales and to manage them. These standards must be discussed with staff. Privacy Policy 8. Marketing is understanding the requirements of the customers in such a way that whenever any new product is introduced, it sells itself. 2. Types of Sales Manager. Insights he shares include: Defining the sales territories . (ii) Increasing the production of existing products. Content Guidelines 2. The financial results of a firm depend on the performance of the sales department. Prohibited Content 3. Sales management facilitates the directions of activities and functions which are involved in the distribution of goods and services. On the basis of the functions performed by the sales manager, he may be classified into … A sales manager must be very clear about his role in the organization. Sales professionals should follow the below mentioned steps for maximum sales and better output. Marketing research 6. Evaluation and Control. Sales management facilitates the directions of activities and functions which are involved in the distribution of goods and services. 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. The salesperson becomes an important source of field-intelligence by providing important (and sometimes very crucial) information, about the nature of competitive-activities, and also about the changing needs of customers. 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. Distribution policies and channel selection criteria. This is a crucial aspect of the business as net sales of products and services draw profit of the business. Top 10 Sales Management Functions. Satisfying customers and participating in marketing activities. Companies, salespeople and customers are different levels in the marketing chain; and these stand to benefit by sales activities. These functions differ from company to company according to their size and the nature of their products. Revenue, sales, … 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. This involves probing into the sales records of the company, analysing the reports of salespeople,... Planning. Strategy and sales management . Did we miss something or You want something More? Market Research 2. 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