25 Importance of Sales Management (With Examples) – Explained

It is important to consider why it is useful to the management of a Salesforce separately from the management of other classes of business persons. Sales management is vital to a company’s financial wellbeing. It is generally knowledged to be the backbone of the business.

Importance of Sales Management
Importance of Sales Management

Importance of Sales Management

The importance of sales management can be drawn from the following facts:

1. Backbone of Marketing

The sales management handles all tasks or functions of distribution.

It performs the task of recruiting, selecting, training, equipping, assigning, routing supervising, paying and motivating sales personnel. It also collects dues from customers.

In brief, sales management is the foundation upon which the marketing machinery keeps on functioning.

2. Achievement of Enterprise Goals

The sale is an important component of the business.

The functioning of the sales department is associated with sales and profits.

The success is largely related to the earning of profits which depends upon the effectiveness of sales management.

It formulates sound sales programs and implements them through suitable promotional tools.

3. Direction and Control of Salesforce

Efficient control on Salesforce helps in optimum utilization of their abilities and talents.

The sales manager guides and directs the salesperson by providing financial and non-financial incentives, good leadership and Able supervision.

Related: 14 Major Objectives of Sales Management (With Examples).

4. Sound Business Planning

The Sales Manager provides information, ideas, and Facts for business plans and policies formulated by top management.

He presents information relating to sales, product, competition, estimated profits, consumer behavior, dealer relations, etc. from time to time.

5. Integration of Business and Social goals

He integrates business objectives and social welfare by providing consumer satisfaction.

He establishes a proper balance between profits and social service.

He tries to raise larger profits on one hand and satisfies product needs. Raises the standard of living and serve the society on the other.

6. Life Blood

Sales are the avenues of revenue. Larger the extent of sales more would be the number of profits. Sales are a symbol of efficiency.

Just as circulating blood keep the body active, similarity sales being the lifeblood, keep the whole organization dynamic and efficient.

Sales are self-generating and salesperson sounds like veins in the body. To manage to sell is to keep the organization working enthusiastically.

Related: 13 Nature and Characteristics of Sales Management (Explained).

7. Nerve Centre

Sales function, being a part and parcel of marketing, had played a very creative and constructive role from the early dawn of human civilization and culture.

And it is still a nerve center of all economic activities.

8. Faster Economic Development

Sales management sets highly realistic sales and profit goals leading to sustained growth.

It keeps the consumer to the position of king, and it becomes the kingpin of faster economic development.

It serves as a source of energy to the growth of the national economy.

It improves the quality of products, brings innovations, searches new markets, creates new demand, and generates additional jobs in the country.

Thus, it provides dynamism to the economy.

Related: 16 Best Ways to Find Potential Customers for Your Business (Complete List).

9. Win Over the Competition

The sales management develops competent and efficient salesforce so as to better perform in the buyers market.

Over 80 years or so the availability of products and services has far surpassed the demand.

The real problem has been selling them. This requires good selling techniques and management to win over the competition.

The sales manager adopts product improvement and differentiation to motivate consumers.

10. Creation of Jobs

The selling occupation in creating more job opportunities in society.

There are more positions available in sales than in any other professional occupation.

As a result, there are also a lot of sales management jobs in today’s world. About 19% of the civilian working-age population is employed in sales occupations.

Related: Top 10 Things to Consider When Selecting Employee (Explained).

11. To Carry Out the Sales Plan

The Salesforce in the field must carry out the sales plan. No plan is of much value unless it is implemented properly.

If salespeople cannot sell successfully because they are improperly selected, trained, or compensated, then the efforts devoted to sales planning are of little value.

12. Largest Operating Expense

The cost of managing and operating a Salesforce is usually the largest single operating expense foremost firms.

Public attention and criticism often on the amounts a firm spends for the salesman and for television and magazine advertising.

Sales management can better plan the sales operating cost.

13. People Development

One field sales manager described the job as follows – “People development is my main mission in life – 50% people development, 30% sales, and product leadership, 10% Administration, and 10% compliance.”

14. Educating the Consumer

The salespeople educate the customers. They provide information about good habits of living, the use of products even about the things to be avoided, etc.

There is always going to be a place for face to face selling, particularly when it comes to educating the customer.”

Related: Top 21 Qualities and Characteristics of Creative Person.

15. Good Customer Relationship

With greater competitive pressures, the selling task will become increasingly difficult and complex.

importance of sales management system in business
importance of sales management system in business

Successful companies will distinguish themselves by the relationships they develop with their customers.

Thus, managing the Salesforce will become more important to the ongoing success of most companies.

The success of sales management depends largely on their ability to enable, support and assist salespeople in developing profitable relationships with their customers.

16. Provides Value-Added Solutions

The salespeople better understand the needs and problems of customers.

They have a long term relationship with their customers.

These relationships are built on cooperation, trust, commitment, and information.

Thus, sales management provides customers with a value-added solution to their problems.

Related: 21 Benefits and Limitations of E-Commerce Business.

17. Relationship Selling

Sales management has created a new concept of relationship selling.

It develops a feeling of trust with customers discards the one-time sale of the product. It manages customers for long term profit.

18. Key Function

Sales management is a key function in any kind of Enterprises or company.

Manufacturing and wholesaling Enterprises encounter a wide range of problems in sales management.

Retail institutions, small and large, sales management problems. These problems exist even companies not employing sales personal.

Thus, it is the ‘sales management skill’ and ability which present innovative solutions to the problems.

19. Charting Future Operations

Sales management is influential in charting the course of future operations.

It provides higher management with informed estimates and Facts for making marketing decisions and for setting and profit goals.

Largely on sales management’s appraisal of market opportunities, Targets are set for sales volume, gross margin and net profit in units products.

The achievement of these targets depends upon the performance of sales personnel.

Related: 12 Theories of Entrepreneurship (Explained with Examples).

20. Basis of Financial Results

Sales management and financial results are closely related.

Sales, gross margin and expenses are affected by the caliber and performance of sales management.

The sales prices are inclusive of the amount of profit, therefore, larger the extent of sales, more would be the number of profits.

Top management holds sales executives responsible for obtaining sales volume, handling the selling operations so as to make a contribution to profits.

21. To Supply “Socially Responsible” Products

Society looks to sales managers to assure the delivery products that final buyers want and can pay for.

Sales managers study the needs of society and supply the products which are “socially responsible.”

Thus, not only customer satisfaction but his welfare is carried by sales management.

22. Coordinating Link

The sales manager acts as a coordinator. He establishes a link and balance between various marketing mix elements and other marketing factors.

He also maintains coordination with distributors, the society, and the government in the interest promoting business.

Related: 21 Benefits and Limitations of Personal Selling (Explain with Examples).

23. Creation of Goodwill

Sales managers try to satisfy the customers, dealers, distributors, public, and other social and market groups.

He creates and develops a better image and goodwill of the firm.

24. Increase in Foreign Trade

Sales management direct trade aspects of foreign trade.

It has taken on international dimensions and markets in foreign countries depends on the capability and foresightedness of the sales managers.

This will ultimately increase foreign exchange earnings for the country.

25. Challenging Profession

Sales management is a challenging profession.

Today, it has assumed broader and more professional dimensions. Now sales managers are planning for the early decades of the 21st century.

They require expertise in customer relationship management, Salesforce diversity, and ethical behavior and social responsibility.

Thus, now you know the importance of sales management.

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