Importance of Sales Management
Sales Management plays a very Important role in the success of business, because sale is the single most important variable in appraising the performance of the company. Sales management has three fundamental objectives. These three objectives are closely inter related. These are maximization growth. In achieving these three major goals, the sales management has a key role to play.
- Sales maximization. It is not an easy task to get sales maximization. Sales Management helps the business in fulfill the objective of sales management. In the process of delegation, the top management fixes the sales volume more specifically on the basis of market, territory, customer or on any other basis which it want to achieve in a specific period. The sales executives, during the planning phase, precedes potential, capabilities of sales force and the middlemen and the like,. Once these goals are finalized, it is up to sales executives to guide and lead the sales personnel and middlemen to implement the selling plans and achieve the goals so finalized.
- Profit maximization. From the company point of view, profit maximization is the general objective of sales Management. Top management is accountable for maximum profit. But regarding profit maximization, it delegates powers and function to marketing management, which then delegates it, to sales management with sufficient authority to achieve this objective.
- Growth and Development.Sales management is influential in the charting course of future operations. It provides higher management with informed estimates. It provides facts for making Marketing Decisions and for setting sales and profit goals. It is on sales management’s appraisal of market opportunities that targets are set for sales volume, gross margin, and net profit in units of products and in rupees, with benchmarks of growth projected for sales and profits at specific future dates. achievement of these targets are reached depending upon the performance of sales and other marketing personnel.
- Strong planning. A plan is a blueprint for future action. The success of an action depends on suitable planning. The sales management formulates concrete, useful and effective plans, including objectives, forecasting, budgeting strategy, programming and controlling. The plans should be specific and property classified in relation to time, objectives and budget.
- Formation of Organization. The sales plan And its projections cannot be Realized unless they move ahead with sales organization. The term organization has two distinct meanings.
- Advise to Top Management. Planning of sales activities is not the responsibility of sales management. sales management is accountable for the actual happening in it’s department which are to be reported to the top management. sales management advises on opening and closing of branches. Opening of new branches involve the detailed study and sanction for branch location, layout, staff pattern and so on including the strength and weakness of competitors.
- Important for sales force management. sales management is very important for sale force management. sales force management is a specialized type of personnel management.
- Optimum Relationship. The company maximizes its net profits if it obtains an optimum relationship. Both in its planning and operating roles, sales management aims for an optimum relationship among the three factors it can directly effect: sales, gross margin and expenses. Sales Management works with the in charges of production and advertising to assure that sales volume is sufficient to attain targeted cost of sales the fourth factor.