Sales management is linked to sales, which are considered to be the lifeblood of a business, since they ensure an inflow of revenue by selling what is produced. It incorporates all the sales processes and procedures adopted by a business and include the planning and implementation of strategies to promote sales. Recruitment of sales personnel, training and leading them, and through them achieving the sales targets set to sustain the company, all form part of sales management. It begins where the production and manufacturing process ends and the goods and services that form the core of the business have to reach the consumer, directly or indirectly.
Sales management is critical for every business since it defines the scope of expansion, higher profitability and its potential to become a leader in its field.
What does Sales Management include
- Recruiting a sales force to build a team- The actual sales of products are carried out by sales personnel. Ranging from a sales representative at the bottom rung to the sales manager or director, there is a hierarchy of people who form the sales team and have varying degrees of responsibility for selling. These are the people who directly deal with customers, are the public face of the business and have in-depth knowledge about the market, customer preferences, trends and competition.
- Training the sales team- The sales team is responsible for generating revenue for the business through sales. They can help the marketing effort bear fruit or come to nothing. Hence they play a crucial role, which has to be taught to them. Though they may come with the requisite expertise, they need to be trained according to the company’s requirements, its code of ethics and familiarize them with their tenets of selling. Above all, they have to learn to sell as part of the team that has been put in place. Lack of cohesive, coordinated effort will lead to wastage of market opportunities. They need to be taught how to drive sales, achieve targets and aspire for higher sales volumes.
- Formulating sales strategies and goals- Sales strategies have to be formulated not in isolation, but in coordination with other division of the business. The sales division has to primarily implement the marketing initiatives. The sales goals are defined by the marketing mix, which determine the objectives, promotions, advertisements and discounts. Keeping mind the sales force, the sales strategy involves making a budget and planning expenses for achieving the sales targets. The sales force is organized and assigned tasks accordingly, besides defining the geographical boundaries to them.
- Achieving the sales goals- Sales goals need to be formulated keeping in mind the sales potential. The arduous task is to achieve these goals, and the achievements of each of the sales personnel have to be closely monitored. Each person in the team is assigned specific territories and customers, and senior managers often keep high volume customers for themselves. The primary task of the senior sales managers to provide an environment conducive to selling, by motivating and rewarding their staff.
- Assessing sales performance and targets- This is critical since this is the only way sales goals can be reached and additional efforts put in, before it is too late. Evaluation of sales efforts can be done through the personnel’s daily efforts like number of sales calls made, number of enquiries followed up, number of orders booked and number of hours spent on pursuing new customers.
- Managing and motivating the sales force- The sales force comprises of professionals who form the front line of the company. Their high stress tasks and efforts put in need to be recognized and rewarded adequately to prevent attrition. The remuneration package, promotions and incentives also have to be designed accordingly.
Sales management encompasses all these essential aspects of a business and therefore holds the key to its survival, success and growth.
