Sales management is basically a specialized business discipline that is focused upon the rationalization of the efficient management of the daily sales activities of a company and its sales output. It is basically an important organizational role as net sales in terms of sales of products and services through the marketing of goods and services to consumers, and resulting profit motive drive most major commercial enterprise. It is actually the science of assessing potential of a sales transaction, its feasibility, as well as its profitability. And this evaluation is based on statistical analysis of sales figures, and their corresponding performance over a given period.
It is basically divided into two main parts; sales management and sales strategies. This part deals with planning and setting objectives or strategy for the sales process. The second part deals with the execution of the set objectives or strategy. Sales managers are responsible for the proper measurement of the actual sales performance and also for making sure that the objectives set by the planning team are met. The performance measures include the number of units sold, the average dollar value of each sale, and the number of sales made during the period.
The other part of the sales cycle management deals with the generation of leads. In simple words, the sales manager focuses on prospecting for leads. He does this by asking for contacts from existing and new qualified prospects. These contacts are then analyzed for the appropriate type of leads. The sales manager gathers these leads in a manner that the quality of leads is maximized, while the cost per lead is minimized.
As part of the strategy planning, the sales management team should also identify the target market or customers for a product or service. Once this is known, then the sales teams should create prospecting campaigns geared to reach out to the most appropriate customers. The best sales managers know how to choose the appropriate campaigns depending on the type of products or services of a particular company offers. Once this is decided, the sales managers create sales strategies by combining the best sales managers’ skills.
Although there are many factors that determine the success of the sales management process, the process itself is highly relevant. For instance, if the sales manager does not effectively implement the hiring process, then the sales team may achieve success for some time but eventually fail when the right people are hired. Therefore, it is necessary for a company to hire only the best sales managers.
The best sales management team should also have access to the right sales analytics software. This software helps the sales manager assess his sales activities before the end of the reporting period. The sales analytics software also helps the sales manager to determine the types of customers that are buying the products or services that the company has to offer. This allows the sales manager to effectively target the right groups of people and their needs.
Another important factor in the success of a company’s sales management process is the high degree of personal loyalty and trust among its sales managers. The best sales managers develop personal rapport with their prospects and customers. They build on this relationship by telling the prospect what they can expect from the relationship and they assure them that their needs will be properly met. By doing this, the sales managers are able to build a bond with the prospective client. The sales managers build on this bond by helping the individual to realize his goals. When this happens, the individual is more likely to trust the recommendations that will be made by the sales managers.
A key factor in the development of the best sales managers is the way that they communicate their messages to the sales teams. Effective sales managers must use all the tools at their disposal to communicate with their sales teams. These tools include written materials, telephonic conversations and face-to-face meetings. In addition, effective sales managers must understand the importance of employee motivation to the success of the sales process.