Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations. It is an important business function as net sales through the sale of products and services and resulting profit drive most commercial business.
Elements in Sales Management:
There are the four basic elements of sales management, discussed
below:
1.Planning:
a business cannot be taken as a chance. Every
salespeople or person concerned have to see for the future, in
a planned way like what must be done? And who will do it?
The plan must be based on extensive market research, and
the facts must be verified at every stage. The plan should
also be evaluated, after investigating the total-market, for a
particular type of product. Flexibility must be provided by
establishing a specialists production line, to allow for
variation in production. The plan should also be subject to
continued review. The details of the plan should be
discussed, with all the departmental heads, concerned, and
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their sub-ordinates, who bear responsibility for fulfilling their
parts of the plan.
2.Co-ordination:
Co-ordination is all pervasive and permeates
every function of the management-process. For example, ill
planning, departmental-plans are integrated into a master.
Plan, ensuring adequate co-ordination. Similarly, organising
starts by co-ordination wholly, partially inter-departmental
and inter-personnel matters. Co-ordination also helps in
maximum utilisation of human-effort by the exercise of
effective leadership, guidance, motivation, supervision,
communication etc. The control-system also needs coordination.
Co-ordination does not have any special
techniques. Nevertheless, there are sound principles, on
which to develop skills. It has a special need to help the staff,
to see the total picture and co-ordinate their activities, with
the rest of the team. The sales manager has to encourage
direct personal-contact, within the organisation, particularly
where there is lateral-leadership. Harmony, and not discord,
should be the guiding mantra. In addition, one has to ensure
free flow of information that is selective to the objectives of
the business. No personal problems, arising from business operations are to be ignored, but solved through a free exchange of ideas. This is especially true in the case of the
sales-force of any organisation.
3.Controlling:
the sales manager has to check regularly, that
the sales activities are moving in the right direction or not.
He guides, leads, and motivates the subordinates, so as to
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achieve the goals planned for the business. He has to take
steps to ensure that the activities of the people conform to
the plans and objectives of the organisation. The controlling
system should be such that one can study the past, note the
pitfalls and take corrective measures, so that similar
problems may not occur in the future. The controller has to
ensure that the set targets, budgets and schedules are
attained or followed in letter and spirit. There must be
procedures to bring to light the failure to attain a target. The
control-system has to (i) prepare sales and market forecasts;
(ii) determine the level of sales-budget; (iii) determine the
sales-quotas for each salesman; (iv) determine, review and
select distribution-channels; (v) organise an efficient sales
force; (vi) establish a system of sales-reporting; (vii) establish
a system of statistical sales-credit; (viii) establish stock control
system(s); (ix) review of performance of the salesforce;
and (x) establish periodical testing programmed. In a
big organisation, each salesman is assigned a territory (not
so big that it cannot be adequately covered). Each salesman
has a target, set for specific ‘period. From the weekly and
monthly sales-reports, the control system is established, that
will prepare records whether a particular salesman is
working efficiently or not.
4.Motivating:
Motivation is essentially a human resource
concept. It aims to weld together distinctive personalities into
an efficient team. For this, knowledge of human psychology
is needed, as a means of understanding behavior patterns.
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This is especially important in the case of the sales-force.
Only motivated sales-persons can achieve company’s goals.
Objective of Sales Management:
Every business firm has certain objectives to achieve. These
objectives may be very explicit and definitive, or they may be implicit or
general. Although, firms have different mixes of objectives, and they do
place differing emphasis, on individual ones, the typical objectives
include (i) profitability, (ii) sales-volume, (iii) market share, (iv) growth,
and (v) corporate-image. While all these objectives are important to a
business firm, the objectives, relating to sales-volume, market share and
profitability, are greatly affected by the effectiveness and efficiency, with
which the sales-function is managed.
Business firms, have, in fact, found that it is the most effective
management objective of the firm; that must emanate out of its overall
business or corporate objectives. The sales-management objectives of a
business firm, generally relate to the areas of (i) achieving sufficient
sales-volume, (ii) providing sufficient profit, and (iii) experiencing
continuing growth.
Generally, objectives of sales-management have to cover various
sales-functions, in an integrated manner. These objectives are to be
expressed, as far as possible, in measurable and quantitative terms, and
should also be realistic and achievable. Since, there are more than one
objective, these should be put, on a hierarchical manner (most important,
down to the least important). To ensure their flawless
realization, they must be congruent, i.e., they must fit together, and not
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be in conflict with each other. For example, suppose you ask a salesman
to cut his travelling expenses, and ask him to spend more time, in the
field. To make these two requirements, more meaningful, they must be
linked with specific time-element.
The setting of objectives should not be based only on the judgment
of the top-management. Rather, it should be formulated and finalised,
with the involvement of the sales-force, at the grass-roots level. In
addition, the process of setting of sales-objectives should begin, only after
the company has conducted benchmark studies, to find out, as to where
it stands in terms of product, brand and market-sales and market share
trends (all in measurable terms).
