Sales management is a systematic process. When managers fail to follow a defined sales management process, chaos reigns and field sales force merely react to customer requests rather than help them solve problems.
The sequence of activities that guides managers in the creation and administration of sales programmes for a firm is known as to the sales management process.
Sales Management Process
Each step in the sales Management process is described below:
1. Strategic Sales Planning
Sales Management is concerned with strategic decision making, as well as implementing marketing plans.
For example, sales managers often become involved in the formulation of marketing programmes. They contribute to changes in the product line, the pricing of products, and the selection of advertising campaigns.
Sales managers are involved in developing Strategies for assessing different Markets and building customer relationships.
Sales managers can easily obtain information about customer needs, product demand and market conditions.
With this information, search managers can contribute to corporate decision making. Sales management is also responsible for developing budgets for implementing the firm’s marketing plans.
Thus, they determine a target sales level and the amount that will be spent on the sales function.
2. Understanding the Selling Function
Sales management is responsible for developing and achieving results through salespeople.
Hence, sales managers should understand the role and responsibilities of Salesforce.
They should motivate sales persons to convert prospects in to repeat buyers.
They should also encourage salespeople to develop long-term customer relationships.
3. Sales Goals and Structure
Sales managers need to know where potential customers are located and how much they can be expected to buy.
They are also projects sales for existing accounts. They estimate potentials and forecast sales.
They also design service organisational structures. The next step in Sales Management process is to assign a salesman to individual territories to minimize travel and contact costs.
4. Building Sales Competencies
Sales managers hire salespeople with appropriate skills to implement the sales strategy.
After hiring, they should be trained before they are sent into the field. Training is given to familiarize salespeople with the company’s products, operating procedures, customer nature etc.
Sales manager uses the most cost-effective method of training.
5. Managing the Salesforce
The last phase of the process focuses on managing the Salesforce, including leading, motivating, compensating, and evaluating performance.
Effective sales managers know how to supervise and lead their salespeople.
They inspire people to grow and develop professionally. Good sales managers provide models of behaviour for salesmen to emulate. They develop strong mutual trust and rapport with subordinates.
They motivate employees by setting goals, enforcing rules and by defining Expectations.
Sales manager use a variety of tools to motivate salespeople to work efficiently and effectively. They create a goal-directed effort. They have well-designed compensation package. They devise an effective mix of salary, bonuses, commission’s, expenses and benefits.
Finally, they evaluate the performance of the Salesforce. They also review selling costs and measure the impact of Salesforce activities on Profits.
Thus, you know the all-important steps of Sales Management Process.