Sales management is basically the process of setting parameters to ensure maximum sales of a product by a company. It involves acquiring and development of a sales force and the use of various sales techniques in coordinating the sales operation.
Sales management is concerned with managing a company’s sales operations so as to reach; and if possible surpass a company’s sales goals. Such goals include increased sales units leading to increased profits and consequently the company’s growth.
Many companies have a sales management team that is headed by a sales manager. The sales manager is tasked with setting his team to achieve the said company’s goals. He acts as a leader showing the way to the rest of the staff and also undertakes talent development. Other tasks include:
Recruitment and training
Forecast of sales and demand
Quota and objective development
Sales performance evaluation
Important elements of sales management
The three most vital elements of sales management are:
#1. Sales planning
Sales planning is the section of sales management that concerns setting sales goals. It also involves:
Setting target sales units
Demand and supply forecasting
The process involves setting a sales plan that should be followed and executed en-route to realizing sales goals. A sales plan is drawn by the sales manager and it shows among other things the sales targets and strategy, the available resources and the sales activities. A sales plan can be viewed as an extension of the business plan, strategic plan and marketing plan only that it shows more details on how sales will help the company achieve its goals.
#2. Staff recruitment
Recruitment is a three-step process which involves job analysis- used to derive the job description and finally the determination of job qualifications.
A job analysis is usually conducted to determine the tasks that the employee to be, will be undertaking daily. A completed job analysis aids in forming a job description which explains in deep detail the particulars of the post.
The required job qualifications are then determined from the job description. This process ensures that a company acquires staff suited for the jobs.
#3. Sales reporting
Key performance indicators are used in determining the effectiveness of the workforce. A sales report is usually drawn and the sales manager is judged by his/her superiors on it. A sales report has other varied functions in an organization such as for convincing investors and legal purposes.