Introduction
The term ‘sales management’ originally related to the supervision of salespeople. However, in today’s society, it has taken on a vital role.
Now, sales management included all marketing operations such as advertising, sales promotion, marketing research, physical distribution, pricing, and product merchandising, among others.
A layperson engages with a variety of transactions in terms of selling and acquiring products and services on a regular basis. The second individual persuades the first in these encounters.
As a result, selling can be defined as persuading people to fulfil their desire for the first one.
The person who does this act is known as a salesperson, and the consequence of this activity is known as sales, while sales-management supervises and controls the person’s operations.
Sales executives are professionals in today’s world. They create and implement efficient control methods as well as organise, construct, and sustain successful organisations.
A detailed study and a market-efficient qualitative and quantitative personal-selling plan are required by the experts’ approach. It necessitates the effective application of organisational concepts to sales activities.
Furthermore, the professional approach necessitates the capacity to install, run, and employ control methods that are appropriate for the firm’s position and goals.
Today, sales executives who can use a professional approach to sales management are in high demand. Salesmanship is a term used to describe a person’s ability to sell.
In other words, the terms “management” and “leadership” are interchangeable. Managers in industry must plan, forecast, lead, and control their staff in the same way as ministers do in states and at the federal level.
Running together, hand in hand, is the key to success here. Managers are the generals in charge of their followers’ armies.
Definition
A number of these perspectives are taken into account by the American marketers association’s (AMA) definition. Its definitions include: personnel planning, direction, and control, selling operations of a business unit, such as recruiting, choosing, training, assigning, grading, supervising, paying, and motivating, since all of these duties pertain to the sales force.
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Benefits of selling activities
The following are some of the advantages of selling activities:
(1) Societal benefits: Economic growth and full employment are essential for national development. The success of both of these objectives results in jobs and money for a country’s workforce.
Because of the arrival of computers and the elimination of outmoded technology, the number of people in need of work continues to grow, while some occupations are being removed.
If all individuals who want and expect work to get them, the economy must continue to grow its output of goods and services, which can only be done by strong government policies and efficient human resource management.
Equally crucial is the reality that an economy need individuals to sell the goods and services it produces.
Salespeople may be considered to be the lifeblood of a healthy economic system because of their tireless efforts to develop and increase demand.
If no one was selling their products, the vast number of people in factories and offices would be unnecessary.
(2) Consumer benefits: Professionals may not know every detail of a product, but they do know its main applications, limits, and advantages, allowing them to efficiently serve their customers.
An insurance agent, for example, can assess the dangers and risks that face a client’s company or home, analyse current coverage, and provide useful recommendations in order to remove coverage gaps or overlaps while also saving the customer money.
Sales engineers are competent to analyse technological challenges that may be faced by a company and provide appropriate solutions for building more effective operations.
Medical representatives may also assist the busy doctor by keeping him informed about new drugs on the market. There is practically no end to the number of salespeople who can assist customers.
(3) Advantages for businesses, salespeople, and customers: Customers are the end-users of the company’s product(s) and/or services, and all of these people in the marketing chain stand to gain from sales operations.
Only when a company’s sales exceed its costs can it be profitable.
The primary job of salespeople is to make a profit on the commodities produced by the company.
The creative salesperson seeks to infiltrate his region and uses appropriate means and tactics to sell products and/or services profitably. Non-selling actions of salespeople provide a variety of other benefits to businesses.
The field salesman is the appropriate individual to keep the organisation current or ahead of the competition.
As a result, he becomes a valuable source of field-intelligence by giving vital (and occasionally life-saving) information regarding the nature of rival activity as well as changing client wants.
The sales staff is also responsible for meeting the demands of clients who purchase the film’s product (s).
Most businesses cannot thrive just on one-time sales; they require recurring business. This is only achievable if the clients are treated with respect.
Elements of sales management
The following are the four essential principles of sales management:
(1) Planning: Starting a business is not something that can be done on the spur of the moment. Every salesperson or person responsible must prepare for the future and identify what has to be done.
And who will be the one to do it? The strategy must be founded on substantial market research, with all data double-checked at each level. After researching the overall market, the strategy should be examined for a specific sort of product.
Establishing a specialised manufacturing line to allow for diversity in production will give flexibility. The strategy should also be reviewed on a regular basis.
The plan’s specifics should be addressed with all of the department heads involved, as well as their subordinates who are responsible for carrying out their sections 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, organizing starts by co-ordination wholly, partially inter-departmental and inter-personnel matters.
Co-ordination also helps in maximum utilization 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 must review on a frequent basis to see if the sales operations are on track. He directs, leads, and inspires his subordinates in order to fulfil the business’s objectives.
He must take efforts to guarantee that people’s actions are in line with the organization’s aims and objectives.
The controlling system should allow for the analysis of the past, the identification of hazards, and the implementation of remedial actions so that similar issues do not arise in the future.
The controller’s job is to make sure that the stated goals, budgets, and timetables are met or followed to the letter. Procedures must be in place to bring failure to meet a goal to light.
(i) Prepare sales and market predictions;
(ii) Determine the amount of sales budget;
(iii) Determine the sales quotas for each salesperson;
(iv) Determine, review, and choose distribution channels;
(v) Organize an efficient sales force
(vi) Establish a sales-reporting system;
(vii) Establish a statistical sales-credit system;
(viii) Establish stock control system(s);
(ix) Review sales force performance
(x) Establish testing schedules on a regular basis.
Each salesperson in a large corporation is allocated a territory (not so big that it cannot be adequately covered). Each salesperson has a goal that is defined for a specified time period.
The control system is built based on the weekly and monthly sales data, which will generate records indicating whether a specific salesman is operating efficiently or not
(4) Motivating employees: Motivation is primarily a human resource topic. Its goal is to bring together diverse personalities into a cohesive one.
Knowledge of human psychology is required for this, as well as a grasp of behaviour patterns. This is especially true when it comes to salespeople. Only motivated salespeople can help the organisation reach its objectives.
Need and Importance of sales management
(i) To allow senior management to dedicate more time to policymaking for corporate growth and expansion.
(ii) To divide and assign authority to subordinates so that they can avoid doing their jobs.
(iii) To eliminate duplication of responsibilities and functions in order to avoid misunderstanding.
(iv) Assigning duty to each and every employee so that they may finish the entire task within the allotted time; if not, the individual must be held accountable.
(v) In the business unit, build a sales regimen.
(vi) To boost sales efforts.
(vii) To ensure that the sales staff is properly supervised.
(viii) The individual’s integration into the organisation.
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DEVELOPING SALES FORCE DECISION
1. Identifying the Ideal Client
Every time the company’s sales staff must do the work of personal selling. The salesperson makes a hasty call to potential consumers in the hopes of converting them into clients.
One of the disadvantages of requiring salespeople to make a certain number of calls every month is the risk of focusing on the quantity rather than the quality of the calls.
It is, however, more prudent to concentrate one’s efforts on a smaller number of superior calls.
They may now better arrange their day by focusing more of their time and effort on A=Excellent or B=Good Customers, with some time spent on the C=Fair and none on the D=Poor.
As a consequence, the ‘Call-rate’ may be better targeted on prospective prospects, with less time lost on interactions that are less likely to result in sales.
The creation of a hit-list that designates levels of attraction to potential clients may thus be a significant instrument for increasing sales productivity.
In the case of industrial items, standard industrial categories (SICs) can be used as the basis for consumer categorization.
This is especially useful if market research has shown which group/class in the categorization offers the best opportunities.
The corporation, on the other hand, may choose its own foundation to fit its own goals, objectives, and requirements. However, in order to maintain a tight and productive sales force, some level of selectivity is required.
There is no necessity for two bases to be identical. However, keep in mind that you should avoid targeting clients who your rivals are in a much better position to penetrate.
The following points must be regarded as a guide/salesperson for this base of categories:
I The firm’s size and/or consumption level (sales-volume).
(ii) Segments that cater to potential clients.
(iii) The goods, techniques, and manufacturing processes used by the company.
(iv) The buying-decision-makers’ personalities and/or motivating impulses (e.g., willing to purchase from large firms or from small firms only).
(v) The clients’ geographical location.
2. Recognize the Decision-Making Unit of the Customer (DMU)
A salesperson often works with a large number of consumers. Deciders, purchasers, influencers, users, and gatekeepers are among the primary actors in the selling process.
Each of them has a function to play, which is sometimes beneficial and other times might be a hindrance.
A successful seller must grasp how this unit works as a whole, as well as the duties that each member plays.
The problem becomes much more convoluted in large companies, because this decision-making body has a significant number of members (DMU).
Every single one of them must be communicated in some way. It is, however, impracticable, inefficient, and often just foolish for salespeople to call all of them.
It is advised that he reach the unit’s less important or accessible members through corporate literature, direct mailing, exhibits, and other means.
However, it is necessary to guarantee that: In each DMU member receives the appropriate quantity of information, neither too much nor too little.
(ii) He must concentrate on the buyer’s DMU’s most crucial and decisive members (customer).
(iii) The sales manager may keep a file on each of the company’s more potential clients, which should include yearly reports and published accounts, a scrapbook of published material about the company, corporate literature, and product specifications.
Details on the company’s structure; a “who’s who” of the company’s employees; and, ideally, a comparison of the firm’s performance to that of its competitors.
If the database is thorough and up-to-date, the salesperson will be dealing with a client with whom he or she has such a high degree of information that a real connection will be easy to form.
(iv) The sales manager, in collaboration with the other marketing, design, and integrated communication programme’ sub-departments, may compile a full list of DMU members.
Whatever sales method the salesperson uses, the goal should be to target each DMU member specifically those on whom they may have the most impact, in the most productive and cost-effective way possible.
We can also design an integrated communication campaign with DMU-members of these Companies if the sales department has a relatively limited number of major potential (key) clients.
Even though the overall catchments market consists of only a few dozen organisations, it is remarkable to see that a big percentage of enterprises do not care to obtain the most basic information about the client-company.
3.Observing the Top Performers
The Sales Force is a diverse group with many different characteristics. As a result, comprehensive uniformity in behaviour, attitude, and performance is nearly difficult to accomplish.
At one extreme, there are high-flyers, and at the other, sloggers; the former are energetic, creative, and effective; the latter may work hard, but results are not easy to come by.
However, by analysing individual salespeople’s performance, it is simple to label the top ten percent as stars, the next twenty percent as good, the next thirty as competent, and the remaining forty percent as ‘problem children.’
4. Sales Meetings(Conferences)
This is another another key route for sales force growth.
1)The “objectives” of such sales meetings are
2)To teach and develop individuals,
3)To inform and receive feedback,
4) To inspire and encourage, and
5) To give a shared platform for sharing experiences.
To be successful, a sales meeting should include the following elements:
(a) Venue: It should be held at a location where any extra information may be quickly obtained. The headquarters of the company, the Sales Manager’s head office, or the Regional Manager’s head office are all good locations.
The seating of the participants should be properly arranged, and an appropriate and “business-like ambiance” should be produced.
(b) Audience: The participants’ intellect level should be considered. This will aid in the selection and assignment of discussion topics to appropriate individuals.
(c) Timetable: A suitable agenda should be created with the needs of the meeting in mind. Participants should be informed about the agenda ahead of time.
(d) Regularity: The sales meeting should be held on a regular basis. National sales meetings and conferences are normally held once a year. As a result, the participants will be well-prepared.
(e) Activities: Work should be properly distributed so that everyone understands what to anticipate from whom.
The Convener should do a good job of ensuring that the Meeting has a “participative environment.” A little ‘Creativity’ on his side will go a long way toward assuring the meeting’s success.
5. Kerb-Side Meetings
These meetings attempt to provide a random assessment of a salesperson’s performance and are normally held once a month, taking into account a day’s work.
It should be assured that I the salesman will not be calling on his friendly clients on that day, and the appraiser’s presence will not affect the salesperson’s job schedule.
During the day, the appraiser must observe the salesman and make mental notes of his strong and weak points.
The appraiser and the salesperson deferred to a quiet area after the call(s) were completed for the day, where the work was methodically assessed; and correctly recorded and scored, on an appraisal-form.
It is critical to secure the salesman’s assent to such an appraisal-form. This will put him in the right frame of mind, and he’ll be more open to recommendations as a result. The following is a possible sequence for this evaluation:
(i) The appraiser commends the salesman’s skills;
(ii) The salesman is now asked to analyse the call(s), identify the problems that were not properly addressed and the reasons for this;
(iii) If the salesman fails to identify his weak areas, even after questioning, the appraiser tells him about them in very clear terms;
(iv) If the salesman fails to identify his weak areas, even after questioning, the appraiser tells him about them in very clear terms
(iv) Once the flaws have been identified, the appraiser obtains the salesman’s agreement on his flaws;
(v) The assessor next offers suggestions on how to overcome these flaws.
(vi) Any follow-up activity is then clearly called out;
(vii) Before parting, the appraiser gives a few encouraging words and ends on a positive note.
Such kerb-side sessions are quite beneficial for enhancing employee productivity, but they rely primarily on the appraiser’s aptitude and talents to spot problems and propose remedial solutions. However, because the process is costly, generalisations should be avoided.
6. Refresher Training
The refresher courses are normally offered once a year at the company’s headquarters.
The substance of the course is often based on input from I corporate activities; (ii) sales executives; (iii) market intelligence; (iv) sales meetings/conferences, etc., (v) product development, (vi) technical areas impacting the firm, etc. (since the last conference/meeting).
Such courses ensure that salespeople are appropriately equipped to meet competing issues with confidence on a regular basis.
7.Bulletins on Sales
Last but not least, sales bulletins are used to maintain training and growth. It’s an effective way to keep salespeople informed about current events and trends. While the salesmen are at work, the information reaches him via bulletins, as well as when it is urgently necessary.
There is no time wasted waiting for the next sales meeting or conference. The wording used in the bulletins, on the other hand, should be concise and to the point in order to pique the salesman’s attention while also being easily understood by the receiver.
Other Related Topics
- Sales Presentation
- Sales Forecasting
- Sales Quota
- Sales Management
- Sales Territories
- Salesman – Types & Functions
- Buying Motives – Types & Stages
- Market Research
- What is Salesmanship? – Full Concept
- To Sell Is Human: Review & Summary – Quick Read
- The Psychology of Selling – Quick Read
- Book Insights & Review: “How to Win Friends and Influence People”
- World Most Selling Salesmanship Books| You Must Buy
- The Most Essential Knowledge for a Salesman
- Personal Selling: Full Concept In Detail
- The Essential Qualities & Skills for a Successful Salesman
