Sales Objective Meaning, Importance & Example

Published by MBA Skool Team, Last Updated: September 22, 2021

What is Sales Objective?

Sales objective can be defined as goals which are part of a company’s marketing plan where targets are identified by the company’s marketing team like revenue targets, distribution partners, profit margins, targeted demographics and advertising.

The plans are outlined through a discussion which happens in sales meetings insuring understanding between the sales teams and the members of marketing team of a company. Sales objectives can have multiple sales targets which can define the goals well in terms of numbers per quarter or per month.


Importance of Sales Objective

A business or a unit cannot work without a proper plan or a goal. Sales objective is the goal which a sales force can follow over a period of time and put efforts into the same for growth of the company and sales.

Sales forces of a company play a crucial role for the company by driving revenue for the company by seeking out and engaging customer prospects. Sales force is the most personal branch of the marketing function of a company as they work directly with the customers. Sales force strategies and sales objectives are generally concerned with boosting a company’s revenue, increase profitability and reducing marketing costs.

Common sales objective for a sales team is to increase the number of sales made to current customers in comparison to new customers because repeat customers are many times company’s most profitable customers.

To achieve this sales objective companies design customer relationship management for better customer retention. Upselling is also a common strategy adopted by sales team to increase number of transactions thereby increasing revenue as well.

Whenever the customers come to sales people they strategically suggest more items which are complementary to their purchase. This strategy not only help in increasing revenue but also help in reducing inventory holding costs and inventory cycle time.

Sometimes company also devices competitions among sales teams with rewards to motivate them to try harder for making a sale.


Example of Sales Objective

The most common sales objective of a sales force is increasing total sales in each period be it a week, month or even a year.

Assuming an automobile company, a common example of sales objective can be increasing monthly sales of Cars in North America by 20% for next 1 year through a ABC Dealership. Also it can have a profit objective as well. All these cars should be sold at a margin of at least 15% with a sales promotion budget at 100000$.

Many times companies devise a commission compensation program for its sales force achieve increase in sales and in turn revenue growth to accelerate the sales objective.

Hence, this concludes the definition of Sales Objective 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.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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