SALES MANAGEMENT: FUNCTIONS, PROCESS AND OBJECTIVES - DUDAS - 2024

The sales management is a corporate specialty that focuses on the practical use of sales techniques and management of sales procedures of an organization. As a term, it is applied to that section of the business that interacts directly with the potential customer and tries to get them to make a purchase.

It is the process of planning, execution and analysis of the sales team, its objectives and also results. If a business generates any income, it is an absolute necessity to have a sales management strategy.

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When it comes to increasing sales performance for any size of operation, regardless of the industry, the secret to success will always be having accurate sales management processes.

In addition to helping your business meet its sales goals, sales management allows you to stay in tune with your industry as it grows, and it can be the difference between surviving or flourishing in an increasingly competitive market.

Origin

Period of the pre-industrial revolution

There were only small artisan industries. The craftsman dealt with all areas of administration (design, production and finance).

Sales were not a problem, because demand far exceeded supply. Selling was not a priority, it was mainly limited to exhibiting crafts.

Production-oriented period

It began with the Industrial Revolution in the 18th century. The mass production technique introduced during this period increased the level of production. The characteristics are:

- It prevailed in the developed countries of the West until the 1930s.

- Emphasis is placed on the production process to produce volumes.

- Marketing means selling what is produced.

- The environment is a sellers market.

Sales-oriented period

The economic recession of the 1930s caused demand to decline. The characteristics are:

- The focus is on promoting sales, emphasizing sales volume.

- Marketing means that the product does not sell itself, it has to be pushed.

- The environment is highly competitive and the offer is excessive.

Customer oriented period

- It started in developed nations after the 1960s.

- The emphasis is on serving the customer's needs and achieving their loyalty.

- Marketing means customer satisfaction before, during and after the sale.

- The environment is a buyer's market, with strong competition.

Features

Sales management is an important business function. Through the sale of products, with the resulting profitability, it drives business. There are the following parties involved in sales management functions:

Sales Manager

He is someone who leads an organization's sales team, oversees its processes, and is generally in charge of developing talent and leadership.

Clarity and scope are essential to sales management, as you typically need to monitor the planning and execution of business goals.

Having effective sales management will help drive the business forward. In addition, the manager must have a clear vision of where he stands among the competitors and how to stay ahead of the competition.

Seller

He represents the company and is in direct contact with potential clients, either in person, by phone or online. Sales are difficult, to be successful you must participate with the current base and, at the same time, expand the reach.

Like the sales manager, the scope and clarity of effective sales management increases confidence and will give the salesperson better visibility into their work.

Client

With an effective sales management process, the customer will therefore have a better experience and will be more inclined to go to the company to buy your products.

Process

Sales operations

The sales team is the backbone of the company. It is the direct connection between the product and the customer. You must feel like part of the company and be provided with the resources to progress.

Salespeople need to be excellent at selling the product and also become a representative of the organization that clients want to work with.

Sales strategy

Each business has a sales cycle, which are the tasks that help the product reach customers. Having a sales channel makes it easier to manage these deals to completion.

A channel is important to the salesperson, because it helps them stay organized and take control of their work. If a salesperson can see the progress of their activities, they will be motivated to work harder and overcome more challenges.

Sales Analysis

Reporting is what allows you to understand how the current effort affects the success of the company, thus giving an idea about what can be done to increase that effort.

Successful reporting involves the use of measurable metrics, showing how each aspect of sales operations is performing and whether targets are being achieved.

Data collection will make it possible to find the ideal customer faster and, as a result, serve them faster. A CRM tool will help streamline the sales management process.

goals

Sales objectives are decided based on where the organization is located and where it wants to go.

Reach a sales volume

The word "volume" is critical, because every time you start selling a product, the market is assumed to be a virgin market.

Therefore, there must be an optimal penetration so that the product reaches all corners of the selected region.

Contribute to profitability

Sales entail a turnover for the company and this turnover generates a profit. Sales have a significant contribution to earnings and are listed as a function of profitability.

The goal of sales management is to sell the product at the optimal price. Top management must keep this in check, as price drops directly affect the profitability of the product.

Continuous growth

A company cannot remain stagnant. There are salaries to pay, costs are incurred, and there are shareholders to whom you must answer. So a company cannot survive without continued growth.

Financial results

Financial results are closely related to sales management. Therefore, sales management also has financial implications.

- Sales-Cost of sales = Gross profit.

- Gross profit-Expenses = Net profit.

The variation in sales will directly affect the net profit of a company. Therefore, managing sales is important for the organization to be financially viable.

References

1. Pipedrive Blog (2019). Sales Management Definition, Process, Strategies and Resources. Taken from: pipedrive.com.
2. From Wikipedia, the free encyclopedia (2019). Sales management. Taken from: en.wikipedia.org.
3. Lead Squared (2019). What is Sales Management and Why is it Important? Taken from: leadsquared.com.
4. Hitesh Bhasin (2017). Objectives of Sales Management. Marketing91. Taken from: marketing91.com.
5. Apoorv Bhatnagar (2019). The Four Phases in Sales Management Evolution. Soar Collective. Taken from: soarcollective.com.