Sales Management

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Definition: Sales Management

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. This is a crucial aspect of the business as net sales of products and services draw profit of the business. Sales manager is hired to look after the sales and to manage them.

Sales Management is about coordinating across all the sales efforts in the company to make sure to achieve sales targets, sales promotion activities etc. 

Sales Management seems am abstract concept but it can be defined very objectively using proper strategy. Sales management should be well integrated with marketing strategy as well as distribution strategy of the company.


Importance of Sales Management

Sales Management is the most crucial and determining factor in any business enterprise along with marketing. It is important to meet competition and to make efficient and economic distribution system to reduce costs. It is also important when new product to be launched and when distribution costs to be reduced. It is attainment of sales in an efficient and effective manner and all the activities involved in sales are managed. Sales Management’s ultimate goal is to attain sales objectives of company.

Sales department of a company is part of the main business value chain and makes sure that the product/service made by the company is sold and convert to revenue. Now for a big company, sales offices can be spread across different cities along with sales personnel. Sales management proves to be very beneficial is such cases as it leads to accountability of the sales across geographies.


Process of Sales Management

Sales Management process consists of all the steps required to manage sales and related activities effectively in a company or an organization.

The process steps would be:

1. Hiring and Managing sales personnel

2. Setting targets for each sales professional

3. Evaluating the targets achieved by the sales force

4. Reporting the sales achieved back to the company

5. Forecasting future sales targets for dollar value and sales force for next sales cycle

Sales Management

Sales Management Activities

Sales Management involves various activities like-

1. Formulation of sales strategies like account management policies, sales force compensation policies, sales revenue forecasts, and sales plan

2. Implementation of those strategies

3. Sales Research, Price fixation, Establishing sales territories and co-ordination of sales

4. Sales techniques required

5. Hiring staff, setting goals, regular monitoring

Hence, this concludes the definition of Sales Management along with its overview.

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