Introduction to sales management

Concept
Sales Management has two schools of thought: Sales as an ART and Sales as SCIENCE. But this
argument is invalid since sales personnel can be trained /groomed for selling. Hence, it is strategic
function.
In mature industries, salespeople face more objections on the issues related pricing; in emerging sector
like IT customer’s complaints are related to adaptability of technology. In retail selling, demonstration
efforts are less significant, whereas in business to business the seller has to demonstrate the product and
its function. In hi-tech consumer product consumer education is very important.
This indicates that sales people must work strategically in different situation and different conditions etc.
They are like market intelligence team, which works closely with customer and posse’s information
about customer and their behavioural pattern. It helps the organization in demand forecasting, territorial
redesign and collecting competitor’s information
“Sales management” is originally referred as systematic management tool used for directing sales force
personnel. As per American Marketing Association’s sales management means “the planning, directing
and control of personal selling, including recruiting, selecting, equipping, assigning, routing,
supervising, paying, and motivating as these tasks apply to the personal salseforce.”
Although in modern times the concept of sales management has broaden, sales managers are in charge
of personal selling activity .Sales managers are responsible for organizing the sales effort, both within
and outside their companies.
Within the companies sales managers build formal and informal organizational structure that ensures
effective communication with sales and other departments.

Functions & Responsibilities of Sales Manager

The functions/ duties of a sales manager are many and varied. They may be classified under the following
three heads:
1. Managerial /executive duties or functions
2. Administrative duties or functions
3. Miscellaneous duties or functions

1) MANAGERIAL / EXECUTIVE DUTIES OR FUNCTIONS

The main function of the sales manager is the management of sales operations including sales programmes
and sales personnel. The management of sales programmes includes establishment and developing short-
term and long-term sales policies and sales objectives, in consultation with other heads of related
departments. He develops detailed sales programmes for his department designed to improve competitive
positions, to minimize re-distribution costs and to achieve pre-determined sales goals in terms of amount
and quantity. For this purpose he should review and approve and if necessary, improve sales strategies,
sales policies, sales objectives and pricing policies of the respective products.
The management of sales personnel function includes recruitment, selection, training, direction,
supervision motivation and control of sales personnel in the best interest of the organization. In smaller
organizations, the top executive of the sales department sales manager himself, performs this function.
However, in large organizations, services of staff specialists are made useful. He fixes sales territory and
sales quota for every salesman, watches his performance and takes necessary timely action to correct hi
performance.

2) ADMINSTRATIVE FUNCTION
The administrative head of sales department is Sales Manager who is having full control over the staff of the
department and administering the sales office. He establishes an effective plan of sales organization and
also controls the activities of the entire sales staff working under his control. He is the leader of the sales
personnel at all levels and guides, directs and provides them proper incentive so as to perform their duties
effectively.
Administration of sales office is one of the important functions of the sales manager. It involves
considerable amount of paper work and record-keeping, depending on the nature of activities assigned to
sales department.

3) MISCELLANEOUS FUNCTIONS
1) Maintenance of cordial and effective relationship with the heads of other departments within the
company.
2) To ensure that long-term customer relationship is maintained so as to achieve the goals of the enterprise.
3) To conduct selling personally so as to increase the sales volume. For this purpose he plans, develops and
implements the field sales strategy, supervisor the sales personnel and coordinates and controls the sales
efforts of sales personnel.
4) To study the market conditions, problems of competition and the substitutes coming into the market. He
is required to inform the top management of these facts along with his suggestions.
5) To maintain discipline in the sales organization.
6) To organize activities relating to sales promotion, such as, contests, seminars, conferences and provide
incentives to the sales staff and the customers.
7) To plan and organize distribution channel in consultation with top management
8) To analyze the market thoroughly from time to time.
9) To undertake advertising campaign keeping in view the cost and sales requirements.
10) To plan sales targets in consultation with other departments, such as production department.
11) To prepare sales budget of a given period.
Thus the sales manager performs a number of functions depending on the nature of products and the size
of the enterprise.

RESPONSIBILITIES OF SALES MANAGER

The responsibilities of a manager can be grouped under five heads :
1) Responsibility to himself.
2) Responsibility towards organization
3) Responsibility towards customers
4) Responsibility towards his staff and
5) Miscellaneous

They may be elaborated as under:

Responsibility to self
The foremost responsibility of the sales manager is to make him competent for the work assigned to him by
the enterprise. In this connection he must evaluate himself from time to time and take make necessary
improvements accordingly. The following are the responsibilities towards himself:
1) To increase managerial abilities
2) To increase and develop selling abilities
3) To keep himself in contact with regional changes and developments
4) To have knowledge of latest marketing techniques
5) To have detailed knowledge of the products
6) To make continuous and sincere efforts for removing his weaknesses.
7) To develop the spirit of cooperation posses progressive outlook and have good temperament.
Responsibility towards Organization
Since Sales Manager is a vita; part of the entire organization, he has a number of responsibilities towards
the organization. They may be summarized as under:
1. To maintain and also increase the goodwill of the enterprise among his customers
2. To prepare the records and reports etc of his department regularly and present the same before the top
management accordingly.
3. To take steps of reducing sales cost.
4. To keep a constant watch on the activities of the competitors and keep the top management aware of
them along with his suggestions.
5. To make sincere efforts at achieving sales targets.
6. To coordinate and cooperate with the other departments
7. To feel proud of the organization
8. To keep the organization in touch with the changes that are taking place in his region, department etc
9. To seek and also provide assistance and cooperation to the enterprise as and when required. To maintain
true and complete accounts of his department.
Responsibility towards Customers
1. To remain in constant touch with the customers through sales promotion and advertisement
2. To explain to the customers the advantages that they can have by keeping themselves in touch with the
company.
3. To provide information to the customers about the miscellaneous uses of the products.
4. To keep himself in touch particularly with those salesmen who command influence on customers.
5. To take interest and listen to the complaints of the customers and make sincere efforts for solving the
same satisfactorily.
Responsibility Towards Salesmen
1. To explain the techniques of presenting the products in such a way before the customers which is less
time consuming, cheeper and more effective.
2. To recruit, select, train, supervise, control, renumerate, motivate and promote the sales force so that it
may perform the duties more efficiently and effectively.
3. To explain the methods of dealing with the customer’s complaints effectively.
4. To provide the detailed knowledge about the products.
5. To arrange and plan salesmen’s tours, allocate sales territories, fix sales quotas of each salesman and
check the compliance from time to time.
6. To listen and remove the grievances complaints and problems of the sales force and take necessary
timely steps for solving the same. He must see that no clash of interest takes place.
Miscellaneous
1.Responsibility as to maintenance of public relations
2. Responsibility as to office management
3. Responsibility as to sales planning, sales targets sales policies sales forecasting sales research etc
4. Responsibility as to reducing sales costs in view of sales volume.
5. Responsibility to collect and analyze statistics in connection with marketing research, product research
and consumer research etc.