Gross profit minus expenses gives the net income. The recruitment and selection of a sales force often is the key to success for an organization. A knowledge of various types of customers, their attitudes and/behaviour and ability to recognise and handle the different types of customers is a basic requirement for success in selling. It is necessary to introduce changes. In many organizations, the sales manager is responsible for all marketing activities. Applications received from candidates interested in the opportunity are reviewed carefully. Definition of Sales Management—What's Missing. If the prospect knows the problem or need and is also aware of the product which can satisfy his need, the salesman will have to emphasise the brand name and convince the buyer that his brand is the solution to the problem. From the sales process definition to measurement, lead generation, and proven sales … Another task that is equally important is that of communications. If feasible talk to your customers and sales staff to seek and update business information. Sales Management and Control 13. To do so, it creates a suitable organisational structure, with appropriate communication system. 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. It is the job of a sales manager to be clear about the overall sales objectives. Generalizations are dangerous because experienced people in this business know that often the outwardly least likely people turn out to be great producers whereas those who seem ideal miserably fail. 2. Typically, the top few territories produce a disproportionately high sales volume. Higher executives are concerned with the overall policy; or control just by exception. Review your notes from recent joint calls and focus on an area of weakness. Implementation of the plan will have different emphases depending on whether the operation is up and running or required to be built or rebuilt. It requires a comprehensive knowledge of the product or services and the user orientation. Common training methods include lectures, cases studies, role playing, demonstrations, on-the-job training, and self-study courses. Reciprocal dealing is considered anti-competitive because large buyers and sellers tend to have an unfair advantage over their smaller competitors. The product or service and the brand must be considered adequate by the buyer. This particular manager loves to work most of them time on their own without the need to work with others. It will check buyer’s satisfaction and reduce his dissonance (after purchase anxieties and doubts) if any. Volume of sales in your national currency/US dollars. 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 He uses comparisons and test to prove the superiority of his product. Additionally, the successful sales manager must be a good organizer. Conflict management is the practice of being able to identify and handle conflicts sensibly, fairly, and efficiently. In many cases, the assessment is administered online. Self-development is natural. Sales managers are not just in charge of personal selling activity but also managing large and often diverse set of sales people. Koreans, for example, are used to work­ing under conditions where compensation is not directly contingent on perform­ance, but rather on seniority. iv) Sales person is also responsible to greet the customers, to help the customers in identifying their requirements, to promote products, to answer the customers’ questions regarding the products, to negotiate the price on the spot, to arrange the merchandise properly and to supervise the ordering the supplies. The goals and plans adopted by the sales manager will be greatly influenced by the company's industry orientation, competitive position, and market strategy. Without one, a sales team will most likely become dead in the water. Amount spent in entertaining customers. Sales presentation or sales interview, and. Management Functions. Apart from the rather idiosyncratic emphasis on the last item, this list is fairly typical of what many sales management writers also recommend. However, successful sales programs make use of a wide variety of motiva­tors. One of the functions of sales management is to ensure that targets are reached, but targets that are set too high will never be reached. In the usual case, past history will be a guide and goals will be set in light of the history—and desires to change past performance—by lifting all sales, high-margin sales, creating sales for new products, etc. “It is the transfer of emotion.”. Integration and coordination of all functions. So it is important to remember the difference between market penetration and account development through the effective deployment of sales force and implementation of the concepts of time, target and territory (3Ts). Extent to which sales representative sells the company. 8. As can be observed from the exhibit, there are sales positions at various levels within an organization and each position is created keeping in mind certain definite set of objectives. So, in simpler terms, sales management is the managerial process of utilizing people and other resources optimally to achieve the goals of an organi­zation in a cost-effective way. Following are sound criteria for measuring the performance of sales representatives: 1. These are also typically the goals and performance indicators of sales management. If your only tracking mechanism is quotes, you are getting a late look at the pipeline. Market Leadership – With increased sales volumes and profits, ‘sales management’ enables an organization to become the market leader. A sale is made not in the mind of the salesman, nor over the counter, but in the mind of the buyer. 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. ), so that a salesperson may achieve both through the same means. Surveys and focus groups represent more formal ways of getting insight from your customers. On the other hand, it is even more significant for its emphasis on peo­ple management, which accounts for five out of the six main categories. The objective behind these positions is to have a first level of control on the sales representatives. During this stage, the sales manager compares the original goals and objectives with the actual accomplishments of the sales force. In performing the direct sales, the rep­resentatives attempt to generate an emotional appeal and motivate the buyer. Task – Selling skills are operative in a social setting. 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. 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