In short, sales management is a people-ori­ented profession. Sales management implements the marketing plan to generate sales performance. Successful sales management requires a commitment to sales force training. Which means concentrating on an increased sales volume and contribution toward the company’s overall revenue. Inventory management refers to the process of ordering, storing and using a company's inventory: raw materials, components and finished products. Sales is a special area on account of a number of factors-. Moreover, each territory has different potential and characteristics, making norms of performance more difficult to set up than in other activities of the business. The study presented salespeople in Korea, Japan, and the United States with written examples of “questionable” sales situ­ations. Spending the time one-on-one and in the field with your sales team will not only provide support but convey a sense of the importance of sales people in your organization. To accurately measure performance, checking revenue figures isn't enough. How to Define, Fill and Measure your Sales Pipeline: A comprehensive guide to pipeline management for sales professionals . Sales meetings are important and must be paid attention they deserve. In planning, sales executives provide estimates on market and sales potentials the capabilities of the sales force and middlemen. Sales to some regions may be more difficult (far fewer lakes) but necessary to maintain the company's total volume. 2. Their personal characteristics—in particular, leadership qualities— of the sales manager are probably the most important motivator. The only right plan is the plan that encourages the results you want. Information and translations of sales management in the most comprehensive dictionary definitions resource on the web. In many cases, the candidates are screened during a phone interview to verify that they qualify for the job opening. Compliments are equally important. To ensure a high level of plan acceptance, have the representative develop the plan and guide them toward the right objectives. At the bottom of the hierarchical pyramid, are the positions like sales trainees or sales representatives. Indeed, the role of sales management becomes more pervasive by finding its importance both within and outside the firm. A sales job description also represents the challenges of the job. The ideal system of compensation reaches a balance between the needs of the person (income, recognition, prestige, etc.) The follow up is a good source of feedback to the salesman. They are responsible for organizing the sales effort both within and outside companies. 9. When we have no Appropriate Sales Support: A common sales management faux pas is to hire a sales person without providing them with the level of support required to succeed. The sales department is solely responsible to bring in the money. Sales are the lifeblood of any organisation and managing the sales process is one of the most important functions of any business. Journal of Personal Selling & Sales Management. For instance, research indicates that training reduces employee turnover, thereby lowering the effective cost of hiring new workers. Second, the company also sets this tone by having nine salespeople each go to lunch with a marketing employee at least once a month. Calvin, Robert J. These are the basic various sales management tools used in sales activities: Each salesperson is supposed to have a formal written sales plan that details how much they are supposed to sell (and target margins) during the year. Sales management methods are conditioned by the nature of individual products or product lines, and by the channels through which selling moves. Of all the sales types, the consultative sale is probably the most professional and demands the highest compen­sation for the skills and abilities of the salespersons. By running reports on sales figures over a period of time, especially those produced by current members of the sales team, you’ll be able to calculate the most sensible and achievable target for individuals and the team as a whole. It is also necessary to co-ordinate with publicity, sales promotion and advertising of a new product. Sales planning skills, very precisely, refer to the ability of an individual to set sales targets and then define a set of steps that will be taken and the strategies that will be used to meet those targets. Tools 14. Alternatively, the manager may set broad, general goals that allow each salesperson to develop his or her own skills. This definition of management was given by Peter Drucker in his book "The Principles of Management". Defining the remuneration and reward system for the sales force, 7. Who’s the author? The solution must be adequate and it must create pleasant felling in the buyer’s mind. Management’s recognition of a performance gap: A performance gap exists when performance does not meet expectations. Overall sales goals must be met, of course, but balance must also be maintained. It gives emphasis on the buyer’s needs and buyer’s problems to be solved. Sales management interfaces with other marketing functions while policies of these functions are being formulated. In fact, sales managers set their personal selling objectives and formulate the personal selling policies and strategies. 5. When financial rewards are not acceptable, the company must rely more heav­ily on nonfinancial rewards, such as recognition, titles, and perquisites for moti­vation. Salary gives a sales manager added control over the salesperson's activities, while commission provides the salesperson with greater motivation to sell. Author's Publications on Amazon. i) A sales person should have all the knowledge about the product so that he may communicate with the customers. Good management involves knowing when your salespeople are screwing up and when there's nothing they could have done to close. Determinants of Sales Activity Management, Sales Positions at Various Levels of Organization. The major takeoff of the sales representatives will be to collect orders from the consumers or organisations. With Web sites, database marketing, and electronic data interchange (EDI) all becoming major parts of companies’ busi­ness processes, leads and sales are com­ing from many directions. The salesman must be able to attract the prospect’s attention and get him interested in the product. The committee of American Marketing Association has defined it as- “Selling is the personal or impersonal process of assisting and or persuading a prospective customer to buy a commodity or a service or to act favourably upon an idea that has commercial significance to the seller.”. Selling is an art largely associated with the behavioural skills of the sales personnel of a sales organisation. For use in future goal-setting and planning efforts, the manager may also evaluate sales trends by different factors, such as product line, volume, territory, and market. As organizations grow in size, formal control is exercised. The customer should be satisfied on all his doubts. 3. It is the job of a sales manager to be clear about the overall sales objectives. The next level of sales management position is occupied by regional or zonal managers who are being reported to by territory managers. Both try to influence each other. Koreans, for example, are used to work­ing under conditions where compensation is not directly contingent on perform­ance, but rather on seniority. A sales accountability culture only accepts top performers; exactly what our business needs to survive in a competitive market. These sales are very much individual consumer oriented. The exhibit below gives an overview of the different sales positions at various levels of an organizational hierarchy (Exhibit-II.II). Proper implementation of the sales strategy allows the company to achieve the sales volume and customer satisfaction. Obtaining an interview, and the first contact. Sales, gross margin and expenses are influenced by the performance of sales management which go on to impact the net profit of a company. The direct salespeople receive the compensation in terms of commission on the volume of sales. Professional firms can be hired to tackle the project for you. ii) He should sell the products with persuasion and it is the responsibility of sales person to satisfy the customers while they are looking for the products. Sales management is a partnership between the sales representative and the sales manager. In many organizations, the sales manager is responsible for all marketing activities. In all types of manager, this particular manager is the best type of all. At the next level we find positions like branch managers, area managers or territory managers. A company that makes three different types of boats, for instance, of which the highest-priced model has the highest profit margins but the lowest-priced boat is easiest to sell, the goal will be structured to move as many of the highest-priced models as possible. I like the definition that your authors apply on page eight, which is... --Show slide In yet another case, the company may have decided to distribute some of its production through a "Big Box," thus creating ill-will among its servicing retailers—and in consequence has decided to offer the retailers a more attractive sales program, higher co-op advertising participation, and high discounts on four occasions if they hold seasonal sales. Electrolux’s 250-person-strong Mexican sales force is being switched from a pure commission system to a combined salary-commission plan as a result of the 45 percent decrease in sales resulting from the devaluation. In this context, therefore, the sales management role often requires an appreciation of the range of techniques. A CRM serves as a single resource will all client information. Though it is a part of the overall marketing task, it contributes significantly to the achievement of the overall marketing objectives. According to Zoltners, Sinha and Lorimar (Building a Winning Salesforce), the sales process is the most dynamic corporate undertaking. In truth, there are a lot of important functions of sales management. An under­standing of the ethical norms in a culture will help the company maintain a clean image and will also help the company create policies that keep salespeople out of tense and frustrating situations where they feel they are compromising their eth­ical standards. Strategic Management is a pervasive process seen in all levels of the business. There are managers that are called as dictators. Coming from a sales department myself, I believe that the main function of sales management is to produce growth and revenue. It includes the planning, implementation, and control of sales programs, as well as recruiting, training, motivating, and evaluating members of the sales force. The sales manager must know where we stand today and where we are headed to, say five or ten years hence. If feasible talk to your customers and sales staff to seek and update business information. There will be times when sales representatives regardless of the support and training they receive. (iii) It must remove competition by providing that the salesman’s product is definitely superior and is the only product that will satisfy the prospect’s want. The market is moving so fast that if marketing and sales organizations aren’t communicating, then a company could be in real trouble. To Sell Is Human: The Surprising Truth About Moving Others. Definition of Sales Management—What's Missing. Sales has to motivate the trade for joint promotional efforts. If you are depending on the survey to assist with a costly decision, you may want to consider hiring a professional marketing research firm. Salesman is to help the buyer to find solutions to his problems. Good sales managers recognize that salespeople have needs other than the basic ones satisfied by money. Sales management excellence involves reviewing the results against the plan to determine missed opportunities and areas for improvement. Art management (also referred to as art administration) applies business administration technics and processes to the art world. Compensating the Sales Force: A Practical Guide to Designing Winning Sales Compensation Plans. Objectives related to promotion are achieved through three supporting functions: 1) advertising, which includes direct mail, radio, television, and print advertisements, among other media; 2) sales promotion, which includes tools such as coupons, rebates, contests, and samples; and (3) personal selling, which is the domain of the sales manager. Every sales representative requires their own action plan to direct day-to-day activities and set up accountabilities. First, all sales meetings include every member of the company’s marketing department. Sales has to co-ordinate with market planning. DEFINITIONS OF SALES MANAGEMENT: 1. You need clear insight on how the team works, good metrics to evaluate them objectively and a sales improvement plan to boost performance. Since being a dictator means that you follow the guidelines strictly, then you can be ensured that your subordinates will also learn the rules themselves. Sales volume, contribution to profits and growth are the three major objectives the sales function is expected to achieve. The study also disproved the assumption that Japanese gift giving would extend into the sales realm. A salesman must always welcome objections. Sales function, therefore, must be professionalized. What does sales management mean? Sales management originally referred exclusively to … We may think that Koreans would be accustomed to the same bottom-up consensual decision-making approach the Japanese are known for. This is a good thing. The results indicated that, in general, American sales­people felt the situations posed fewer ethical problems than did the salespeople from Japan and Korea. As a member, you'll also get unlimited access to over 83,000 lessons in math, English, science, history, and more. Prospecting relates to locating of prospects. One or several candidates are then selected to proceed to the next phase of the recruitment and selection process. The salesman of aluminium siding calling on homeowners is much more of an order-getter, and his main goal is demand stimulation. Simplified. During this stage, the sales manager compares the original goals and objectives with the actual accomplishments of the sales force. This gives them a chance to exchange ideas. Features of Management. He must identify a customer’s problem, solve that problem and prescribe a solution to the customer according. Communication must be clear, understandable, and persuasive. It also gives the salespeople a chance to take a leadership role. Corporate objectives are communicated to the marketing department who in turn passes on the responsibility to the sales department. Sales management interfaces with the distribution channels, and external publics. Some firms (such as those selling technical products) have sophis­ticated sales personnel requiring less supervision than do less sophisticated representatives (such as route salesmen). The Selling and Sales Management SIG serves members by providing programs designed to enhance selling and sales management scholarship, teaching, and practice in an inclusive and collegial environment. Share Your PDF File This is a crucial aspect of the business as net sales of products and services draw profit of the business. Sales budgets extend control over sales volume to exercise control over margins and expenses. The sales policies are put in black and white. Sales planning are the process of determining the number of sales persons or sales force required the sales targets to be achieved, the expenditures to be incurred and everything required for an effective sales organization in the firm. Market Leadership – With increased sales volumes and profits, ‘sales management’ enables an organization to become the market leader. After all what is sales? 5. Any time a change is made to its Web site or a promo piece is mailed out, a memo is put up on the intranet so sales­people have access to the information. Salespeople need to stay within the law, of course. The manager creates expectations for the goals employees need to make. To collect information from markets, customers, suppliers, distribution channel members and consultants for use by company management. Marketers must plan things well in advance for the best results. Even brand managers come closer to salesmen in respect of credibility. Sales manager is hired to look after the sales and to manage them. There should be contact with the environment – product development, technological change and competitive organizations. The third step is the stage where the salesman comes face-to-face with the prospect. Sales performance management involves monitoring your team's performance, evaluating KPI and finding ways to increase sales. According to Seth Godin, real growth comes from doing what you believe in, what make sense, and what is right. Even in those where there is a parallel marketing structure, he or she is usually responsible for a range of marketing activities beyond those of simply managing the sales force. Once a prospect is located and qualified, salesman should find out his needs, problems to be solved, his preferences, personal habits, nature, behaviour, etc. Process of … The salesman should contact the customer frequently to maintain his goodwill and smoothen over any post-purchase problems. Sales co-ordinate with distribution channels on introduction of products and later on the buyers must be made aware where the products are available. Journal of Personal Selling & Sales Management. paying and motivating, as these tasks apply to the per sonal sales-force. This is because a sales manager is not only entrusted with managing the sales force to derive target-based sales outcomes but also perform managerial functions comprising planning the sales efforts and organiz­ing, directing, motivating, coordinating, and controlling the sales force to achieve sales goals. These managers have a lot of things to do and are often out from the office most of the time. Both function as sender and receiver of messages. Sales objectives may have to be revised in the light of the feedback received. The process of selling involves a number of steps such as: 4. Sales contribute a great deal to achieve optimum relationship amongst three factors – sales, gross profit and expenses. The dominant industries in this field are electronics, engineering products of all branches, medical equipments and the like. Such interface with the customer contributes a great deal to success. In another operation, the goal may simply require adding four new sales people and training them. This is a personnel-type function. Weinberg has made a living out of stepping in and helping companies that are struggling to manage their sales teams.. As an example of differences in ethical perceptions, consider the results of a study by Dubinsky and associates. Many organizations have some sort of sales pipeline report. Selling is a very stressful task, achieving sales targets can become very challenging. He is particular about post-sale service. Sales management majorly focuses on the company’s continuous growth. On the other hand controlling is any common activity to achieve a per determined goal. Co-Ordination of Sales with other Departments: Sales has to co-ordinate with the marketing department. Before joining the faculty at the School of Management, he worked in sales and marketing for the TI Group and was Senior Lecturer in Marketing at Huddersfield In time, it became more popularly known as marketing management which described the broader concept. Additionally, the Federal Trade Commission (FTC) requires door-to-door sellers who work for companies engaged in interstate trade to clearly announce their purpose when calling on prospects. Operations Management Definition. The objective behind this position is to offer general guidelines to the managers reporting to him or her apart from formulating strategies and targets for the national market. The word “strategy” is derived from the Greek word “stratçgos”; stratus (meaning army) and “ago” (meaning leading/moving). A drawback of that strategy, however, is that it becomes difficult to compare performance across territories. Prospecting is similar to the seeking function of the total marketing activities. Product or sample can be shown. Too often, however, compensation plans are in place because they are easy to administer or because this is what you have always used. Or, should the MNC implement seemingly less optimal host coun­try standards? When a salesman presents a rival brand to a customer, he shall give more emphasis on the adequacy of his brand and the peasant feelings it is capable to create. Most of us tend to think that their cultures are very similar. When you look at a call report, there is nothing you can do about it but when you look at an itinerary, you can make changes. The salesman may use various means of obtaining an interview. Although this is good, sometimes the manager does not give his or her subordinates a chance to work for themselves. As found out, this type of manager can be very frustrating since they are nowhere around when their representatives need them. Buying motives enable the salesman to know why a person buys his products. In addition to recruiting, training, and motivating a sales force to achieve the company's goals, sales managers at most small businesses must decide how to designate sales territories and allocate the efforts of the sales team. This is a particularly difficult process where sales personnel are concerned because quality sales skills are all-important. Sales management efforts related to consumer nondurables and consumer services will generally emphasize volume sales, a comparatively low-caliber sales force, and an emphasis on high-volume customers. It serves as a standard. It includes the planning, implementation, … More important, in order to maintain the respect of cus­tomers, salespeople must know what is ethically acceptable in a culture. The manager must dig deeper by analyzing expenses, price-cutting initiatives, and long-term contracts with customers that will impact future income. Sales managers are not just in charge of personal selling activity but also managing large and often diverse set of sales people. Selection is the key to success in the sales function. A prominent example of sales and marketing technology is the customer relationship management (CRM) system. 8. These positions are meant to represent a company or in other words the sales representatives or executives are the face of an organization and the reputation of any selling organization depends a lot on their actions and behavior. The system also helped Konica track the success of the program. For example, D. A. Stuart Company uses an intranet to keep salespeople up to date in promotional material or other projects that marketing is developing. How to Make Sales Management Effective? A prospect means a probable buyer-the one who brings prospects to the seller’s business. Prospects will always try to resist sale by raising arguments for not buying the product. Salesman alone can assure such completion of sale. Thus the way in which the sales management function is organ­ized differs from industry to industry, and even among firms selling the same type of product. Most organizations that hire sales professionals use a very detailed, well-orchestrated process to ensure that the candidates selected will meet or exceed targeted sales goals. On the basis of adequate information of the customer wants and desires, salesman can prepare his plan of sales presentation or interview. After goals are set, the sales manager may accept, or be required to modify, the general approach to sales in the current year. The process usually allows the participants to provide their opinions, come up with new ideas and brainstorm. This is your moment to shine. An in-depth analysis of these and related influences will help the manager to determine true performance based on profits. The communication view of the selling process is a much richer and comprehensive view of salesmanship. … He just assists the sale. He helps us to take the buying decision. Sales management by being effective is in a position to affect sales, gross margin and expenses; and thereby net income. Apart from the rather idiosyncratic emphasis on the last item, this list is fairly typical of what many sales management writers also recommend. The ideal approach is to concentrate on hiring the best possible sales people, to bring them on board as rapidly as possible, and then using them to help with the process. Both ongoing patterns and new ones require budgeting and, occasionally, changes to the organization. A salesman pushes too hard. Therefore, the sales management task is to ensure that the sales force is continuously motivated through proper incentives and reward systems. The efficiency of sales depends upon the type of sales person and the techniques used in selling goods or services. Addi­tionally, there are differences in compensation (Australians preferring greater security in the form of larger salaries) and special incentives (New Zealanders having a much higher preference for travel with other sales contest winners and supervisory staff). However, the comprehensive broad function later got labelled as “Marketing Management.”. He has lost his credibility. These objections or doubts should be welcome and they should be answered with confidence. Marketing is the process used to determine what products or services may be of interest to customers and the strategy to use in sales, communications and business development (Kotler et al. Involves both innovation and marketing representa­tives system of compensation reaches a balance between the needs the! To tell you some specifics about sales performance in a healthy state of having a! Service business is good, sometimes the manager thus they perform well with their jobs collect from! 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