The Sales administration is a corporate specialty that focuses on the practical use of sales techniques and the management of an organization's sales procedures. As a term it is applied to that section of the business that interacts directly with the potential customer and tries to make a purchase..
It is the process of planning, execution and analysis of the sales team, its objectives and also results. If a business generates any income, it is an absolute necessity to have a sales management strategy.
When it comes to increasing sales performance for any size of operation, regardless of the industry, the secret to success will always be having accurate sales management processes..
In addition to helping the business achieve its sales goals, sales management enables it to stay in tune with its industry as it grows, and can be the difference between surviving or flourishing in an increasingly competitive market..
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Only small artisan industries existed. The craftsman dealt with all areas of administration (design, production and finance).
Sales were not a problem, because demand far outstripped supply. Selling was not a priority, it was mainly limited to exhibiting the crafts.
It started with the Industrial Revolution in the 18th century. The mass production technique introduced during this period increased the level of production. The characteristics are:
- It prevailed in the developed countries of the West until the 1930s.
- Emphasis is placed on the production process to produce volumes.
- Marketing means selling what is produced.
- The environment is a sellers market.
The economic recession of the 1930s caused demand to decline. The characteristics are:
- The focus is on promoting sales, emphasizing sales volume.
- Marketing means that the product does not sell itself, it has to be pushed.
- The environment is highly competitive and the supply is excessive.
- It started in developed nations after the 1960s.
- The emphasis is on serving the customer's needs and achieving their loyalty.
- Marketing means customer satisfaction before, during and after the sale.
- The environment is a buyer's market, with strong competition.
Sales management is an important business function. Through the sale of products, with the resulting profitability, it drives business. There are the following parties involved in sales management functions:
He is someone who leads an organization's sales team, oversees its processes, and is generally in charge of developing talent and leadership..
Clarity and scope are essential for sales management, as you typically need to monitor the planning and execution of business goals.
Having effective sales management will help drive the business forward. In addition, the manager must have a clear vision of where he stands among the competitors and how to stay ahead of the competition..
He represents the company and is in direct contact with potential clients, either in person, by phone or online. Sales are difficult, to be successful you must participate with the current base and, at the same time, expand the reach.
Like the sales manager, the scope and clarity of effective sales management increases confidence and gives the salesperson better visibility into their work..
With an effective sales management process, the customer will therefore have a better experience and will be more inclined to go to the company to buy their products..
The sales team is the backbone of the company. It is the direct connection between the product and the customer. Must feel like part of the company and be provided with the resources to progress.
Salespeople must be excellent at selling the product and also become a representative of the organization that customers want to work with..
Each business has a sales cycle, which are the tasks that help the product reach customers. Having a sales channel makes it easier to manage these deals to completion..
A channel is important to the salesperson, because it helps them stay organized and take control of their work. If a salesperson can see the progress of their activities, they will be motivated to work harder and overcome more challenges..
Reporting is what allows us to understand how the current effort affects the success of the company, thus giving an idea about what can be done to increase that effort.
Successful reporting involves the use of measurable metrics, showing how each aspect of sales operations is performing and whether targets are being achieved..
Data collection will allow you to find your ideal customer faster and, as a result, serve them faster. A CRM tool will help streamline the sales management process.
Sales objectives are decided based on where the organization is located and where it wants to go.
The word “volume” is critical, because every time a product is sold, the market is assumed to be a virgin market..
Therefore, there must be an optimal penetration so that the product reaches all corners of the selected region..
Sales bring a turnover for the company and this turnover generates a profit. Sales have a significant contribution to earnings and are listed as a function of profitability.
The goal of sales management is to sell the product at the optimal price. Top management must keep this in check, as price declines directly affect the profitability of the product..
A company cannot remain stagnant. There are salaries to pay, costs are incurred, and there are shareholders to whom you must answer. So a company cannot survive without continuous growth..
Financial results are closely related to sales management. Therefore, sales management also has financial implications..
- Sales-Cost of Sales = Gross Profit.
- Gross Profit-Expenses = Net Profit.
The variation in sales will directly affect the net profit of a company. Therefore, managing sales is important for the organization to be financially viable..
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