Sales management is an essential aspect of implementing a company’s marketing strategy. The existence of good management makes the product marketing process more organized. That way, the product sales process can run more efficiently and generate higher profits.
Regarding profit-driving benefits, sales management is the knowledge that is not only needed by prominent entrepreneurs. However, small and medium enterprises (SMEs) also need to implement it. That way, you can compete better even if you have to deal with a more prominent company.
Definition of Sales Management
Sales management is the process of developing a sales team, coordinating the implementation of sales strategies, and at the same time implementing sales techniques in the business. This application can help companies achieve predetermined targets and even exceed them.
Sales management practices can encourage the cooperation of everyone on the sales team. In its application, The Investor Book mentions three critical aspects of sales management, namely:
1. Sales Operations
This aspect is the sales manager’s effort in assembling a team that can work effectively. For this reason, sales managers are not only tasked with selecting the right Human Resources (HR). However, you also need to be equipped with the appropriate knowledge to make the right sales.
2. Sales Strategy
Sales management application must also pay attention to strategy. You can’t immediately hold merchandise in a crowded place and expect buyers to come and make transactions. Instead, you need to build a sales funnel that can provide continuous conversions.
3. Sales Analysis
The third aspect is analysis. It would help if you made sure that your existing sales and team strategy can show optimal performance. With the sales analysis process, you can find out which parts need repair.
Sales Management Function
A sales management application can help companies to get bigger profits. They can find this achievement thanks to the four main functions of sales management, namely:
1. Sales Target
The first function is to help determine sales targets. Setting sales targets is not only related to the number of products sold. However, you also need to ensure a balance, especially when the company has several products for different segments.
2. Planning, Budgeting and Organizing
When sales targets have been set, the following sales management function is to plan, budget, and organize. Companies can choose to use existing strategies or modify them as needed. Fundamental aspects such as the use of resources, distribution channels, or programs are discussions that it should not miss.
The implementation of sales management also serves to ensure that they can implement the sales strategy properly. It can make implementation efforts by recruiting new employees, providing training, or setting sales compensation.
4. Control and Evaluation
The last function, sales management, can help managers control and evaluate the program that is being executed. You can compare the initial goals set by the sales team’s achievement results. Apart from that, you can also pay attention to individual sales team members’ performance by looking at essential aspects such as customer satisfaction, cash flow, number of sales, and costs.
Sales Management Purpose
In addition, the implementation of sales management in this business has five objectives, namely:
1. Earn income
The primary responsibility of everyone in the sales division is to provide income to the company.
2. Increase sales figures
Through efficient sales management, the company hopes to get an increase in product sales figures. If sales activities go well, the production team can work optimally.
3. Reaping the benefits
The implementation of company sales management aims to be able to get more profit. Therefore, the sales team needs to implement effective planning, coordination and control.
4. Business development
If a company can sell a large number of products, it can thrive. It does not rule out that the company may become a market leader.
5. Consumer Conversions
Turning prospects into loyal consumers requires careful planning. You can achieve this through implementing sales management.
It is a comprehensive knowledge of the importance of implementing sales management in business. To support the activities of the sales force, you also need to equip it with supporting equipment. One of them is a reliable sales software such as SAP Business One.