Sales Control - Definition, Importance & Types
What is Sales Control?
Sales control is one of the functions of sales management which ensures the sales achievement and profit objectives of the company by coordinating effectively and efficiently the different sales functions.
Goals of Sales control
• Optimize number of sales
• Maximize profit
• Control revenue
Importance of Sales Control
Every business function needs a control mechanism. Sales management is a broad field and consists of various aspects and functions. Like all other process control set of procedures need to be established, performance should be evaluated periodically and digression from the standards should be addressed swiftly.
Sales control process can be executed either through Behavioral aspects like sales efforts or by allocation of selling time or through cost aspects like performance expenses and sales-function administration. Sales personnel need to be trained sufficiently to maintain a consistent effort in sales and also productivity of the sales person should be maintained.
Sales control doesn’t focus only on managerial action related to sales, it also encompasses all activities which ensure the even flow of products or services from the producer to the consumer.
Types of Sales Control
Sales budget and sales programs are the basic available tools to control the efforts. Other available tools are
1. Sales Budget
2. Sales Programs
3. Sales Audit
4. Sales Analysis
The above tools can be used in identifying the strength and weakness of the internal processes and opportunities and threats from the external environment. Further it will help the management in locating the defect in the functioning of the sales department and take corrective measures.
Sales Budget
Sales budget creates a overall constraint for the sales team to operate within. Budget in terms of expenses and efforts spent can control the sales activities well and align them with company's sales objectives and profit targets. A sales team may be able to perform well and meet sales target but if the cost spent to achieve the same is very high then the profit would be less. Hence companies assign a sales budget for the sales activities.
Sales Programs
Sales program are a set of activities, training and best practices which a company follows for performing sales activities. A sales program can train the sales force well on the companies values so that the sales team follows them when they go on field to sell the products and services. Through a program it can be ensured that all the sales team members follow similar approach and system to achieve it.
Sales Audit
Sales audit is the systematic and unbiased review of the basic objective and policy of the selling function of an organization. Sales audits help in improving the effectiveness of the sales arm of the organization. Audits normally examine six aspects such as
• Objective of the company
• Internal policies
• Structure of the organization
• Sales methods
• Procedures
• Sales personnel
Sales Analysis
Sales analysis is the study of sales volume operations to find the sales and profit trend. It helps in achieving better sales performance. It also provides insights on the sales territories, type of customers and products.
Hence, this concludes the definition of Sales Control along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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