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ver the years, substantial changes have taken place in the selling environment, sparking achange in the sales function too. The various trends that have shaped the sales function includeshorter product life cycle, longer, more complex sales cycle, reduced customer loyalty, intensecompetition among manufacturing firms, rising customer expectations, increasing buyer expertise, electronic revolution in communications, and the entry of women into the sales force.http://www.icmrindia.org/courseware/Sales%20and%20Distribution%20Management1/SDMC03.htm
Importance of Sales Management
Sales management is one of the key components that every
which relies on sales mustpractice. Sales management is the training and management of a sales staff, and the tracking andreporting of the company's sales. It is important to a business because if the principles of salesmanagement are practiced correctly, it can increase your company's sales.
To achieve sales goals, your company needs to set sales numbers or goals for the staff. One wayfor a company to achieve and maintain growth is to increase its sales numbers. Sales managers canset sales goals that will promote growth and are attainable by the sales staff. Many sales managersuse cash bonuses or other incentives to motivate staff to achieve the goals. Sales goals for staff canalso be set to match the strengths of each staff member.
Sales management enables management to track the overall sales of the company as well as theindividual sales of each employee. Using sales tracking, management is able to tell if the company ison track to meet its goals or if individual members of the sales team are not producing enough sales.By keeping the sales force constantly up to date on the status of their sales, you can help them toadjust their sales techniques and productivity to achieve the company's sales goals.
Using sales management, a company can produce sales reports that can be used to track theperformance of its sales force over different periods. For example, you can use sales reports tocompare the sales of the company on different years over the same period. The sales reports candetermine the direction your company must take based on the results. For example, if the salesreports determine that your company is experiencing substantial growth year after year, it mayindicate that expansion is a possible direction for the company.
As a company grows, it can become more difficult to track and manage the sales process without asystem in place. Sales management provides companies with a system to train and manageemployees while streamlining the sales process from the individual sales employee to the customer.This is beneficial because if there is a problem at any point of the sales process that may affect thecompany's bottom line, it can be quickly identified and corrected.