Sales Management

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What is Sales Management? Meaning.

Sales management is the business function focused on selling a firm's products and services by applying various sales tactics and techniques and by managing a firm's sales operations. It is an important business function, because accomplished sales transactions have a direct impact on the profits of any commercial business.

Sales Manager is the typical job title of someone whose role is sales management. He or she is responsible for selling products and services and leads a team of sales representatives, account managers and business development managers. He cooperates closely with the marketing and operations departments.

Activities of a Sales Manager

1. Drawing up a sales plan, monitor it and report on the results. In consultation with your supervisor you develop a sales plan, based on the sales results the company wants to achieve over the coming period. The sales plan distinguishes sales 'targets', and indicates how much turnover must be achieved in the planning period (year, quarter) in total, per distributor, per customer and per sales person. You monitor the extent to which these objectives are actually being met and intervene if the results of one of your segments are below expectations. You report regularly to the management board.
2. Leading your sales team. You manage a team of representatives who visit customers to close sales orders. You check whether they meet their personal sales targets and guide them in their personal development within the company.

3. Establishing and maintaining customer relationships. You maintain relationships with major existing clients and create new ones. For larger companies this is mostly done by the sales team or by the account managers and you focus on drawing up an acquisition plan, which states which customers should be approached in what way. You work with marketing to determine the focus of the sales efforts, bringing in your knowledge of clients' needs.
4. Consulting with operations departments within the company to streamline operations and sales. You work with the logistics department to ensure a timely delivery of sold products that were sold. And you discuss with manufacturing the quantity and quality that has to be produced and by what time.
5. Analyzing customer and markets demands, identifying trends and mapping them out. For this, you work with the marketing department.
6. Advising intermediaries (if any). You help dealers, distributors or wholesalers to achieve more sales of your products.

Competencies of a Sales Manager

• Results orientation. You need a good numerical insight, because you are responsible for the sales figures per customer, per distributor and per seller. Most importantly, you are result-oriented and have commercial insight. You compare the current turnover with last year's results and see if you are on schedule. If sales (growth) is below your plan you take action, for example by requesting additional promotional activities from marketing. You are realistic and spend most of your time on the most important customers.
• Communication skills. In conversations with customers you listen carefully and actively, and you can clearly answer their questions and persuade other people. You are able to transfer your knowledge of products, their applications, and their value proposition in conversations with clients, presentations and demonstrations. You send specialist questions to the relevant department and monitor the customer actually gets his answer. In conversations with your sales people you are clear and open for suggestions.
• Customer orientation. Not only do you have a thorough knowledge of the market, you are also responsible for good relationships with the customers. You show that you are not only guided by the desire to sell, but can also think from the view point and needs of the customer. You are empathetic and not afraid to give advice.
• Negotiate. You are obviously good at negotiating. If you are working with a new client or enter into a new contract with an existing relationship, you discuss the terms of the agreement. In this, you are balancing short and long term and aim for win-win negotiation results.
• Motivate. You motivate your employees and help them set their sales targets. You monitor their progress and whether they function well. You know their strengths and use them and if you identify skills they need to develop, you arrange training or mentoring. You also give them the opportunity to come up with ideas.
• Perseverance and stress resistance. For this kind of work you have to be strong in Time Management and Multitasking, because you must deal with a lot of things and competing demands in a limited time. You are flexible and can deal with work pressure and stress well.
• Empathy. You can empathize with the needs and wishes of your customers. You are a friendly, open person and think along with customers about their needs, issues and how your products or services can help them.

Forum Forum about Sales Management. Below you can ask a question about this topic, share your experiences, report a new development, or explain something. Start a new topic about Sales Management Share your knowledge here (or ask a question)   Sales versus Business Development What exactly is the difference between a sales executive and a business development executive? Any suggestions welcome...... 19   27 comments 🔥 NEW The Sales Tightrope: Common Errors in Selling The sales process can be likened with walking along a tightrope. Clearly, a tightrope is a metaphor for the selling process. What is a tightrope? A tightrope is a thin, tightly stretched rope or w... 15   4 comments 7 Steps of the Selling Process B2B firms often use sales representatives (sales reps) (collectively referred to as "the Salesforce") to meet face-to-face with new or existing customers in order to sell their products/services. Typi... 10   7 comments Key Account Management Key accounts of an organization typically require a large, long-term commitment and the involvement of several specialized people due to their buying power and complexity. Delivery systems, terms and ... 9   11 comments Involvement of Executives in B2B Sales As a B2B supplier, is it recommendable to involve your CEO (senior leaders) at strategic or key accounts? Professors Capon and Senn argue it is, provided it is the right type of involvement. In a rec... 7   1 comments 5Cs of Sales Management Marketing could be defined as getting the right product to the customer at the right time and in the right place. Whether this happens or not would, especially in B2B Marketing, depend to a large exte... 7   Virtual Selling Process Due to Internet and Covid How will companies adapt their approach now that personal selling, especially in B2B, is being disrupted due to the COVID-19 pandemic. Does this influence the standard 7 steps of the selling process?... 5   3 comments Selling is Transforming a LEAD Into a DEAL Sales is basically about identifying a LEAD and converting it into a DEAL. A LEAD can be converted into a DEAL as follows: L - Locate the Prospect E - Educate him A - Answer his questions D - Dec... 4   1 comments Integrating Sales and Marketing Integrate and aligning the sales and marketing efforts in an organization is important to make the overall marketing and sales effort more effective and efficient. What are the best practices you are... 2   Approaches for Sales Pipeline Management / Sales Funnel Management What approaches do you know of aimed at managing the sales pipeline (funnel) of sales reps? What are the strengths and weaknesses of each one? Thanks for sharing your tips...... 1   How to Align Sales Strategies with Corporate Revenue Targets? Being a sales manager, what are best practices of aligning the sales strategies of your team with the corporate revenue targets? Please share your ideas on adjusting the sales tactics to the demands ... 1   Metrics for Tracking Sales Performance What metrics and methods do you know of to track sales performance of your sales people? What are the strengths and weaknesses of each measurement?... 1   Understanding the Buying Process in Major Accounts Understanding the buying process in large accounts is obviously very important in sales cycles since they are consuming considerable resources and money. In what ways can one improve the understandin... 1

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Information Sources Various sources of information regarding Sales Management. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. The 2 Worlds of Marketing and Sales Making Sales and Marketing Work Together, Understanding the Differences Funny explanation of Marketing and Sales by contrasting and comparing them with short sketches....

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Compare with: Relational Work  |  B2B Marketing  |  7 P's  |  Emotional Intelligence  |  Coaching  |  Customer Relationship Management  |  Cross Selling  |  Customer Loyalty  |  Incentives  |  Market Segmentation  |  Public Relations  |  Relational Capital

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