Sales management

Sales Management
The Process of Planning, Organizing, controlling, and
evaluating, the activities of Sales Force.

What is Sales Management?
Sales management is simply management of an organization’s personal selling
function. Sales managers are involved in both the strategy (planning) and people
(implementation) aspects of personal selling, as well as in evaluating and
controlling personal selling activities. They must be able to deal effectively with
people in the personal selling function, with people in other functional areas in the
organization, and with people outside the organization, especially customers.

Other Definition of Sales Management.
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“.
B.R. 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.”

Sales Management
Planning/Direction/Control
Personal Selling Activities
Sales Force
Management
Other Sales Functions
Sales Effort
Sales Goals

Sales Management Process
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.

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Formulation
Of Strategic
Sales
Programme
Implementa
tion of
Sales
Programme
Evaluation
and
Control
Sales Management
Process

Formulation of Strategic Sales Programme
The strategic sales programme should consider the environmental factors
faced by the firm. 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.

Implementation of Sales Programme
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.

Evaluation and Control
The evaluation phase involves developing methods for monitoring and
evaluating the performance of the sales force.

Objectives of Sales Management

Sales management objectives are categorized into two types:
1. Quantitative Objectives (Short-term)
2. Qualitative Objectives (Long-term)

Quantitative Objective
(Short-Term)
Qualitative Objective
(Long-Term)

Quantitative Objective
1. To retain and capture market share.
2. To determine sales volume in ways that contribute to profitability.
3. To obtain new accounts of given types.
4. To keep personal expenses within specified limits.
5. To secure a targeted percentage of certain accounts of a business.

Qualitative Objective
1. To do the entire selling job.
2. To service existing accounts, (customers).
3. To search and maintain customer cooperation.
4. To assist the dealer in selling the product line.
5. To provide technical advice wherever necessary.
6. To assist in training of middleman’s sales personnel.
7. To provide advice and assist the middlemen.
8. To collect and report market information of interest and use to the
company management.

Sales Management Functions
Sales management is viewed as having a systematic relationship with each
other. All functions and activities are considered as a dynamic process,
composed of numerous interrelated parts, aiming to achieve the
organizational sales objectives.

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Sales
Management
Functions
Staff
Managerial
Advisory LIAISON

Different Sales Management Functions are:
1. Managerial functions
2. Staff functions
3. Advisory functions
4. Liaison Functions

Managerial Functions
● Planning
● Organizing
● Direction
● Control
● Coordination

Managerial
Functions
Planning
● Forecasting Demand
● Sales Territory Planning
● Personal Selling
● Promotional Efforts

Managerial
Functions
Organizing
● Structure
● Resource Collection
● Responsibility Assignment
● Delegation of Authority

Managerial
Functions
Direction
● Leadership
● Motivation
● Communication
● Promotional Steps Including
Personal Selling

Managerial
Functions
Control
● Delegation
● Quota Fixing
● Performance Evaluation
● Incentives
● Budget

Managerial
Functions
Coordination
● Liaison
● Integration of various
elements internally
● Public Relation
● Creating Goodwill

Sales Management
Functions
Staff Functions
1. Recruitment and Selection
2. Deployment and Evaluation
of Performance
3. Training and Development
4. Career Development
5. Compensation and Incentives
6. Motivation & Empowerment

Sales Management
Functions
Advisory Functions
1. Product attribute/quality
aspects
2. Pricing Policies
3. Promotional Steps
4. Personal selling Aspects
5. Distribution Policies &
Channel selection criteria
6. Advertisement Policies such
as Media Selection & Target
Audience
7. Transportation & Warehouse
Aspects.

Sales Management
Functions
LIAISON Functions
1. Production Department
2. Finance Department
3. Marketing Department
4. R & D Department
5. Distribution Network
6. After Sales Service
Department

Sales Management Cycle
● Analysis
● Planning
● Organization
● Direction
● Control

Sales Management Cycle
Analysis

Sales Management
Cycle
Analysis
This Involves probing into the
sales record of the company,
analysing the reports of sales
people, investigation of marketing
trends and other environmental
factors.

Sales Management
Cycle
Planning
It involves setting objectives of the
firm’s sales efforts, formulation of
sales strategies and policies in
order to achieve those objectives.

Sales Management
Cycle
Organisation
It involves the determination of
the structure of the sales force
and delegation of authority which
is supposed to be necessary to
achieve the organization’s
objective.

Sales Management
Cycle
Direction
It involves proper supervision and
implementation of the plans with
the help of proper
communication, motivation and
leadership.

Sales Management
Cycle
Control
It involves the comparison of the
actual with the desired results,
finding out reasons for the
deviation and taking corrective
actions accordingly.

Importance of Sales Management

Society
Business
Firms
Consumers

Importance of Sales Management (Society)
Society:
To the Society: If jobs are to be made available for all those, who want and
expect them, the economy must continuously expand its production of goods
and services.
Equally important here is the fact, that an economy needs individuals, to
sell what is produced. Through their persistent efforts to create and
stimulate demand, salespeople could be said to be the life and blood of a
productive economic system.

Importance of Sales Management (Consumers)
Consumers:
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.
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.
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.

Importance of Sales Management (Business Firms)
Business Firms:
To Business Firms: A business firm can be profitable only if its revenues
exceed its costs. The prime responsibility of the salespersons is to sell the
goods, produced by the organization, at a profit. Companies, salespeople and
customers are different levels in the marketing chain; and these stand to
benefit by sales activities.

Business Firms
The salesperson becomes an important source of field-intelligence by
providing important (and sometimes very crucial) information, about the
nature of competitive-activities, and also about the changing needs of
customers.
The financial results of a firm depend on the performance of the sales
department. Many salespeople are among the best-paid people in the
business. It is one of the fastest and surest routes to enter into the top
management bracket.

Difference between Sales and Marketing
Comparison Sales Marketing
Meaning Sales refers to the process of selling, whereby
product is offered for sale to the customer at a
certain prices and at a given period of time
Marketing is the understanding the
requirement of the customers in such a
way that whenever new product is
introduced, it sells itself.
Orientation Product-Oriented Customer-Oriented
Approach Fragmented Approach Integrated Approach
Focus Company Needs Market Needs
Related to Related to flow of goods to Customers Related to all of the activities which
facilitate flow of goods to customer
Duration Short-Term Long-Term
Relationship One-to-One One-to-Many
Aims at Profit maximization through sales
maximization
Profit maximization through increased
customer satisfaction and market share.

What is a Sales Manager?
Before you start thinking about the sales team as a whole, start with a great
sales manager. A sales manager is the person who guides your salespeople
and is responsible for setting their sales quotas and goals, as well as leading
them in the right direction.

Responsibilities of Sales Manager

Responsibilities of Sales Manager
Sales management involves a number of responsibilities. It is the income-producing
division of a business.
The sales manager is responsible for:
1. Providing profit contribution.
2. Creating a proper image for the company and its products/services.
3. Achieving the sales targets of the organisation.
4. Satisfying customers and participating in marketing activities.
5. He/she is responsible to the customer and society for the continuing growth of
the organisation.

Sales Operation: Building the Team

After you’ve acquired a great sales manager, it’s time to start thinking about
expanding the team. This may not be a total shocker, but the sales team is the
backbone of the company; they are the direct connection between the
product and the customer.
In other words, they matter – a lot.
All in all, the sales team should feel like they are a part of the company and be
equipped with the resources to progress rather than be viewed as money-
making machines. When selecting and onboarding new talent, you should
take your time to be thorough in training them and developing their skills,
regardless of their experience.
Sales Operation: Building the Team?

Building the Team
Why?
Salespeople shouldn’t just be great sellers, but need to be great at selling your
product, and be a representative of your organization that customers want to
work with.
Once you have a few more hands, the sales team should all be on the same
page, working as individuals within a single, collaborative unit. A more
systematic approach will result in fewer errors and greater achievements for
the sales force and company as a whole.

Building the Team
Then this is where the fun really begins:
You can set your team up for success by giving them high yet realistic targets,
which you’ll be able to track to measure future success (you’ll learn more
about this in the “Reporting” section). To do this you would need to:
● Set Targets
● Assign Territories
● Establish Goals and Quotas

Building the Team
But the sales sales manager’s job isn’t done there. It’s also their duty to
counsel the team throughout the process, make sure they are still on track,
and motivate them when needed.
Think about what experiences motivate you throughout your career, and use
them to inspire and motivate your own sales team. On the flip side don’t
forget to share your disappointments and failures, how you overcame them,
and offer support during difficult periods.

Sales Operation: Define the Sales Process

Sales Strategy: Defining the Sales Process
Once you have a sales team and know your targets, you might be wondering:
How do you actually carry out the sales?
There are many definitions of sales, but essentially, you’re facilitating a
transaction between your company and its customers, moving them through
a process which leads to an exchange. Every business has a sales cycle, which
is a series of tasks that helps a company’s product reach its users. Therefore,
having a sales pipeline, or sales funnel, will make that easier to maneuver
these deals to completion.

Sales Strategy: Defining the Sales Process
What is a sales pipeline?
A sales pipeline is a visual sequence of activities to achieve with each prospect,
from the initial lead to the closing of the deal.
Simply put, a pipeline is a salesperson’s right-hand man, as it helps them stay
organized and take control of their work. After all, there are some things you
cannot control – results.
That’s where managing activities comes into play. If a salesperson can see
their progress, or their activities, they will be motivated to do more work and
conquer more challenges.

Defining the Sales Process
“There are some things you cannot control – results. That’s where
managing activities comes into play.”
Keeping salespeople accountable for performance is also an important aspect
of the sales manager’s job.

Sales Operation: Reporting
Reporting is what allows you to understand how your current efforts affect
your company’s success and gives you insight into what you can do to
increase your efforts whether it’s hiring more salespeople or redistributing
tasks.
Successful reporting involves using sales metrics, or quantifiable indicators,
that tell you how each aspect of your sales operations is performing and
whether you are achieving your targets.

Sales Operation: Reporting
With the standard sales funnel, you should be able to measure the following
four metrics:
1. Number of deals in your funnel
2. Average size of a deal in your funnel
3. Close ratio, or average percentage of deals that get won
4. Sales velocity, or average deal lifetime before it is won
Collecting data will allow you to find your ideal customer quicker and, as a
result, serve them faster. A CRM tool, which you’ll learn more about in the
section on technology below, will help you streamline your sales management
process.

Sales management in practice positively affects everyone involved in the sales
cycle.
The more mature your sales process is and the more the sales manager
adapts and improves it over time, the more likely your team will achieve top
performance.
In the same way that we've outlined the three aspects of sales management,
there are three key stakeholders involved with the sales management
process: the sales manager, salesperson, and customer.
Who benefits from Sales Management?

Who benefits from Sales Management?
● Sales Manager
● Salesperson
● Customer

Sales Manager
A sales manager is someone who directs an organization’s sales team,
oversees its processes, and is typically in charge of talent development and
leadership.
Clarity and scope is essential to sales managers, as they typically need to
oversee planning and execution of company wide targets. Having an effective
management process will allow them to drive their company forward. They’ll
have a clearer vision of where they stand amongst their competition and
know how to stay ahead of the competition.

Sales Person
A salesperson represents their company and is in direct contact with potential
customers whether in person or over the phone or solely online. Salespeople
typically report to and work closely with their sales managers on performance
goals.
Sales is tough; to succeed you need to be able to engage your current base
while also expanding your reach. Like the sales manager, scope and clarity via
effective sales management boosts confidence and will give the salesperson
better visibility of their work. If you’re a business owner, consider investing in
sales training for every member of your sales team; it’ll pay off in the long run

Customer
The customer will inevitably have a better experience and be more inclined to
benefit from your company and purchase your product or services with an
effective sales management process. They may even spread the word, which
means more business for you and more social proof for future prospects.
With all of these parts working well together, a company can set themselves
up for success, especially against their competitors.

Nature of Sales Management
Goal Oriented
Continuous Process
Systematic Approach
Relationship Selling
Market Management Integration
Different Sales or Job Position
Pervasive Function

Goal oriented:
Similar to other management activities, sales management also have a specific
purpose and intended for the achievement of specified goals or objectives.
Continuous Process:
The sales manager needs to perform sales management functions regularly,
and this process is never-ending.

Systematic Approach: It is an organized way of handling the sales function of the
company where every problem has a defined and proven solution.
Relationship Selling: The salespeople make efforts to build a strong customer
relationship to sell the products or services effectively.
Marketing Management Integration: Marketing is a broader concept; marketing
management includes all the activities related to sales management.

Different Sales or Job Position: It is the combined efforts of the whole sales
team, including salesperson, sales executive, sales head, sales manager and
after-sales service personnel.
Pervasive Function: It is a universally applicable concept which has been
adopted and tested by every kind of business organizations.

Key Aspects of Sales Management

Key Aspects of Sales Management
A sales manager needs to concentrate on the three crucial elements of sales management. Getting
these three right can bring optimization of the sales management.
Let us now discuss each one of these in detail below:
Sales
Analysis
Sales
Strategy
Sales
Operations
Key Aspects of Sales
Management

Sales Management Scope
Sales management is a field which has emerged from marketing
management; however, the latter is a broader concept.
Let us now learn about the extent to which sales management is applicable in
business organizations:

Sales Planning or Forecasting Managing Distribution Channel
Hiring Sales Personnel
Determining Structure and size of Sales Organization
After Sales Service
Sales Budgeting
Training and development of Salesforce
Determining Sales Territories
Compensation and Remuneration of salespeople
Brand Labelling and Packaging Controlling Salesforce
Human Resource Planning
Developing salesperson objectives
Sales Promotion
Fixing Sales Quotas
Motivating Sales Perosonnel
Organizing and Support Service
Sales Management
Scope

Sales Planning or Forecasting: The sales-related activities need to be
planned well in advance through anticipation of future sales prospectives.
Sales Budgeting: The sales manager needs to determine or estimate the
sales budget, i.e., the expenses which will be incurred in carrying out the sales
activities.

Determining Structure and Size of Sales Organization: The department of
a company which is solely responsible for all the sales-related functions is
termed as a sales organization.
Sales management provides for determining the size, composition and
structure of a sales organization.
Human Resource Planning: The sales management ensures a proper
estimation of sales personnel requirement in the organization.

Hiring Sales Personnel: It initiates the recruitment and selection of efficient
and suitable candidates for various vacant sales positions.
Training and Development of Salespeople: It also includes providing
training and orientation to the selected candidates to develop their skills and
knowledge to match those required for the job position.
Developing Salesperson’s Objectives: The sales manager set up achievable
objectives or goals for the salespeople appointed under him/her.

Fixing Sales Quotas: Also, the sales quota (monthly, quarterly or yearly) is
fixed, either in terms of volume or value of sales to set targets for the sales
team.
Determining Sales Territories: Every sales team or salesperson is given a
particular region or area as a target market, where they need to penetrate for
selling products or services.
Motivating Sales Personnel: It also emphasizes on reviewing the work of
salespeople and driving them frequently to perform better.

Compensation and Remuneration of Salespeople: It ascertains appropriate
salary, remuneration, allowance, commission and other benefits to the
salespeople.
Controlling Salesforce: Exercising sufficient control by monitoring the
performance of the sales personnel is also a crucial function of sales
management.
Branding, Labelling and Packaging: The sales personnel gathers customer
feedback on the acceptability of the product packaging, presentation,
branding and labelling.

Managing Distribution Channel: It also ensures keeping track of the marketing
channels and filling the loopholes if any.
Sales Promotion: The product advertisements and other promotional tactics are also
determined through sales management functions.
Organizing and Support Service: It includes handling of queries and solving problems
of the sales personnel through proper guidance and support service.
After-Sale Services: The customer recognizes a company mostly through the
effectiveness and efficiency of the after-sale services it provides, which is the concern of
sales management.

Why is sales management considered to be an inevitable part of business
organizations?
The following benefits of sales management will enlighten you over the above
question:

Manges salesforce
Realizes organizational objectives
Better planning Sales maximization
Improves profitability
Aids Top management decision making
Optimizes distribution
Builds strong relationship Develops Personnel
Product Development

Realizes Organizational Objectives: Sales management is practised to attain
the pre-defined organizational goals or objectives which can be increasing
profitability, customer satisfaction, market acquisition, and so on.
Manages Sales Force: The sales team includes personnel performing various
sales-related tasks; the activities of the sales force are hence monitored and
regulated through sales management.
Better Planning: Planning is an essential function of sales management; it
includes the formulation of goals, strategies, programmes and budget.

Sales Maximization: It also helps the management in setting sales target,
which are though higher than the previous goals but are possibly attainable.
Builds Strong Relationship: The sales personnel emphasizes on building up
strong interpersonal relations with the customers, as their primary motive.
Since it ultimately drives the sales and profit maximization.
Optimizes Distribution: It provides for maximum utilization of the marketing
channels by identifying the key problem areas and finding a solution to these
issues.

Aids Top Management Decision Making: It comprises of the comparison
between the desired and actual result and thus, supports the top-level
management or directors to make crucial decisions (such as business
expansion and closure).
Improves Profitability: The most critical concerns of top-level management
is profit maximization, which is, therefore, passed on as a primary objective of
the sales management.

Develops Personnel: In the process of sales management, the sales
personnel is provided sufficient training, growth opportunities and support to
ensure their overall development.
Product Development: The sales team are in constant touch with the clients
or customers, which helps the management to know about their preference
and taste.
Thus, leading to new product development or improving the existing products
or services.

Conclusion:
Sales management is a vital part of any business organization. It not only
makes the products or services available to the customers but also
supports the organization to sustain competition in the long run.

Key Principles of Sales Management

Sales managers act according to the targets entrepreneurs set. To
achieve the goals, the sales team should comply with the following
principles.
● Consistency
● A degree of Independence
● Equality among the members of the team
● Conviction

Consistency:
The success of the sales process relies on several factors and one of the most
important is consistency. Although it’s difficult to achieve, it’s worth your time
and effort. Consistency allows you to close the deals faster, build better
relationships with customers, and improve sales. Make sure to provide your
salespeople with clear instructions about each stage of the sales funnel, teach
them how to behave with consumers, and ask for reports to monitor the
progress

A degree of independence:
For sure, a sales manager can’t do everything alone. Give your team a chance
to do some tasks independently and track the results. As an option, consider
giving some extra tasks to your top performers and reward them for closing
the deals. This way, you will show trust in their work and encourage your team
to bring good results.

Equality among members of the team:
Remember to treat every member of your team equally and show respect.
There is no need to put some salespeople above others or give preferential
treatment. You rather adjust the sales targets and the expected standards.

Conviction:
The most important principle is conviction. Being a sales representative isn't
easy. It implies understanding people from the way they communicate and
finding arguments to make people buy products. Salespeople often face
criticism, counter arguments, and some negative feedback. To better handle
objections, improve communication skills and customer retention as well as
be confident, they need to have good product knowledge.

There’s 5 Sales Management Strategies
1. Sell Realistic Targets
2. Find the Right people for your team
3. Educate your salespeople and give feedback
4. Reward your top performers
5. Measure the progress of your team

Sales Management Strategies
Set realistic targets:
Sometimes sales managers focus on the numbers a company strives to
achieve without considering the capabilities of salespeople. After trying to
reach the goal, sales teams fail because of unrealistic objectives. As a result,
you run the risk of demotivating salespeople and missing your projections.
Use average sales reps’ performance to set achievable goals.

Find the right people for your team:
To continue to scale, you need to attract the right talents to join your sales
team. With the right candidates, you can build a successful sales team that will
support your company’s growth. First of all, before creating a job description
and interviewing your candidates, define the specific needs of your company.
Different categories of salespeople are needed for different purposes. Explore
the reasons behind your new hire. Secondly, create a step-by-step interview
process to see the appropriate applicants. Thirdly, consider involving your
colleagues in the process to identify the kind of person they need.

Educate your salespeople and give feedback:
As a sales manager, you need to always be in touch with your sales team.
Your new hire should work under your guidance to absorb the sales process,
learn how to handle objections, and where to find prospective customers.
With time, new employees will be able to handle the necessary tools, obtain
experience and knowledge in sales, sales tricks, and strategies. Ensure to
provide an effective training process to turn people with potential into top
performers. Remember to give feedback after your salespeople complete
certain tasks.

Reward your top performers:
Salespeople who do their job perfectly, want to receive cash incentives from
the company and get praise. That’s why it’s worth creating a plan that involves
targets and monetary compensations for them. Make sure that you, as a sales
manager, do everything possible to retain customers and lure new ones.

Measure the progress of your team:
It’s critical to monitor and evaluate the progress of your team. You need to
find whether a company succeeds in growing or there is something that slows
down this process. Identify the reasons and try to eliminate them by reviewing
the work of your sales team and improving your strategies. Besides, you
should ask your sales representatives to create manual lists and reports.
Design a reporting process in your CRM to simplify your work. With SendPulse,
you can guide your sales process in one CRM.

Thanks for Your Attention!
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Sales management

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