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