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