What is Sales Management and Sales Management System?

All successful sales companies are good at one thing - they manage sales, and the effectiveness of that management directly affects their success. It is important to understand that the work of any organization relies on many components that are constantly in motion and in motion.

 

This is why it is necessary to have a thorough understanding of the sales management process - which will allow all elements of the mechanism to function properly, resulting in the maximum profit for the company and at the same time the maximum benefit and the best results for the company. client.

In this lesson, we'll discuss the major nuances of sales management and try to point out the most important components of the process.

Sales Management and System

The term "sales management" is multifaceted, and there is currently no single universal approach. Some experts consider it in terms of managing the people directly involved in sales (this includes recruiting, motivating, training, etc.). Others refer to sales management as channel management. Still, others focus on automating the process of interacting with their customer base.

Generally speaking, sales management can be described as coordinating sales operations, building a sales force, and implementing innovative approaches that enable an organization to achieve or even exceed its business goals.

When it comes to sales data management, we will start with human resource management and sales process management. In other words, sales management is a special system that includes elements of marketing, management, and of course, trade. Therefore, the system should consist of a series of components:

·         Definition of target customers. This includes the definition of target segments (buyers' needs and price categories), the definition of strategic and "supporting" niches, and the development of strategies and tactics for entering new niches.
Establish distribution channels. Determine the type of distribution channel, gather information on dealers, distributors, and other channel participants; determine their needs, requirements, and conditions for preparing to cooperate.

·         Distribution channel management. This category includes planning sales by channel and among the participants of a channel, setting conditions for each channel, and creating systems to incentivize distributors (using promotions, bonuses, holding training events, etc.). This category also includes communication management (meaning the systematic collection and exchange of data with channel members), distributor control (monitoring the cost and quality of services, and payments), evaluating and adjusting the work of channel members, customer base, conditions, etc.

·         Organization and strategy development of the sales department. Define the department's tasks and functions, structure and personnel, functional distribution among employees (by product category, customer group, region, etc.), and technical support for the sales department.

·         Sales department management. This category includes the planning and control of the work of the sales department and its members, the selection, hiring, and adaptation of new employees, their motivation, and training. It should also pay attention to the exchange of experience with other departments, the work evaluation of the entire department and individual employees, the calculation of sales costs, and cost control. 

·         Develop personal selling and relationship management skills. Here we can single out the creation and application of new customer search systems, the development of effective sales skills (for all cycles of the sales process), improving customer service levels and after-sales management, and the recording and analyzing of personal sales data management.

·         Adjust the sales system. At least annually, analyse and adjust the work of the entire system.

Goals and tools of sales management 

Sales management can only be effective if goals are properly defined. In order to not invent the bicycle, you can refer to a ready-made list of goals you need to focus on. This list includes:

·         Sales increase 

·         Positive impact on the productivity of the company, sales teams, and managers to avoid difficult situations. 

·         Select the appropriate management style and determine the control method. 

·         Prioritize product sales

·         Definition of a specific target audience 

·         Adapt your strategy to the current market demand.