9/14/22, 9:49 PM Sales Management - Meaning, Importance, Process & Example | MBA Skool

Install Courses

Home Courses Concepts SWOT

Marketing Strategy PESTLE Five Forces Trends

Articles Quizzes GD Topics

CONCEPTS › MARKETING AND STRATEGY ›

Sales Management - Meaning, Importance,

Process & Example
Published by MBA Skool Team, Last Updated: July 03, 2022

What is Sales Management?

Sales management is the overall process of managing the sales operations includ
sales team along with managing their sales targets through proper planning, coor
activities which is often managed by a hierarchy of sales persons. It is a business
management of a firm’s sales operations and is focused on practical applications
sales. This is a crucial aspect of the business as net sales of products and service
business. Sales manager is hired to look after the sales and to manage them.

Sales Management is about coordinating across all the sales efforts in the compa
achieve sales targets, sales promotion activities etc. 

Sales Management seems an abstract concept but it can be defined very objectiv
strategy. Sales management should be well integrated with marketing strategy as
strategy of the company.

In this article:

Importance of Sales Management

Process of Sales Management
Sales Management Activities
Example of Sales Management

Importance of Sales Management

Sales Management is the most crucial and determining factor in any business ent
marketing. It is important to meet competition and to make efficient and economic
reduce costs. It is also important when new product to be launched and when dist

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/13387-sales-management.html 1/6
9/14/22, 9:49 PM Sales Management - Meaning, Importance, Process & Example | MBA Skool

reduced. It is attainment of sales in an efficient and effective manner and all the a
Install Courses
sales are managed. Sales Management’s ultimate goal is to attain sales objective

Sales department of a company is part of the main business value chain and mak
product/service made by the company is sold and convert to revenue. Now for a b
offices can be spread across different cities along with sales personnel. Sales ma
be very beneficial is such cases as it leads to accountability of the sales across ge

Process of Sales Management

Sales Management process consists of all the steps required to manage sales an
effectively in a company or an organization.

The process steps would be:

1. Hiring and Managing sales personnel

Sales management is incomplete without sales force. Sales team is required to ru
operations, getting orders, selling products and services. The first and foremost st
you have the right people and they are motivated enough to make the required sa

There should be proper roles and responsibilities defined for different sales perso
should also be hired who can properly manage the day to day working of the team

2. Setting targets for each sales professional

In sales, setting targets and quota are very important. The sales targets are aligne
forecast and strategy of the company.

Even though sales team is doing their best, targets give a realistic picture to the o
company and pushed the team to meet them in order to grow as a team and com

3. Evaluating the targets achieved by the sales force

Just setting the targets is not enough, they need to monitored and evaluated. Mon
evaluations should be done to see how the team has been performing. If the targe
there has to be correction done in terms of targets, efforts or product.

Regular evaluation is the key to successful sales management. 

4. Reporting the sales achieved back to the company

Sales reporting is as important as any other step in the sales management proces
show the overall picture to mid and senior management but also serve as records

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/13387-sales-management.html 2/6
9/14/22, 9:49 PM Sales Management - Meaning, Importance, Process & Example | MBA Skool

referred to in the future. As in the evaluation step, reporting should also be done r
Install Courses
reports or quarterly reports.

5. Forecasting future sales targets for dollar value and sales force f
cycle
In addition to the current performance and targets, focus should also be on the fut
need to make sure that future targets are also being prepared as per the market d
available.

Sales Management Activities

Sales Management involves various activities like-

1. Formulation of sales strategies like account management policies, sales force c

policies, sales revenue forecasts, and sales plan

2. Implementation of those strategies

3. Sales Research, Price fixation, Establishing sales territories and co-ordination o

4. Sales techniques required

5. Hiring staff, setting goals, regular monitoring

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/13387-sales-management.html 3/6
9/14/22, 9:49 PM Sales Management - Meaning, Importance, Process & Example | MBA Skool

Example of Sales Management Install Courses

Let us say that there is a company ABC which deals in air conditioning in offices.
sales team to sell and manage the sales of the air conditioning. The product and s
include the overall AC Units, maintenance, service, replacement and warranty.

The company needs to hire the right people who have the experience of knowledg
There can be people from different industry as well but then proper training progra
that the team knows everything which is required to understand customer needs a

Now the next step is to make sure that everyone understands what is to be sold a
options for the same. After this the sales targets for each product category need to
customers have to be acquired every quarter and 10 new services offered to exist

Based on the sales performance, regular review and evaluation has to be done w

Hence, this concludes the definition of Sales Management along with its overview

This article has been researched & authored by the Business Concepts Team. It
& published by the MBA Skool Team. The content on MBA Skool has been creat
academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictio
2000 business concepts from 5 categories.

Continue Reading:

« Sales Lead
Sales Meeting »

Important Definitions: Definition Categories:

Sales Management Marketing & Strategy Terms
Market Segmentation Human Resources (HR) Terms
Brand Equity Operations & SCM Terms
Positioning IT & Systems Terms
Selling Concept Statistics Terms

Share this Page on:

What is MBA Skool? About Us

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/13387-sales-management.html 4/6
9/14/22, 9:49 PM Sales Management - Meaning, Importance, Process & Example | MBA Skool

MBA Skool is a Knowledge Resource for

Install Courses
Management Students, Aspirants &
Professionals.

Business Courses

Marketing
Operations & SCM
Human Resources

Quizzes & Skills

Management Quizzes
Skills Tests

Quizzes test your expertise in business and

Skill tests evaluate your management traits

Related Content

Marketing Strategy
Motivation
Inventory Costs
Sales Quota
Quality Control
Training and Development
Customer
Capacity Management
Work Life Balance
More Definitions

All Business Sections

Courses
Business Concepts
SWOT & Brand Analysis
Marketing Strategy & Mix
PESTLE Analysis
Five Forces Analysis
Top Brand Lists
Articles
GD Topics

Write for Us
https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/13387-sales-management.html 5/6
9/14/22, 9:49 PM Sales Management - Meaning, Importance, Process & Example | MBA Skool

Write & Contribute Business Content Install Courses

Submit Content

HOME ABOUT US CONTACT US TERMS PRIVACY POLICY CONTRIBUTE

CONTENT COLLEGES MEDIA

Follow us on

2011-2022 | MBASkool.com

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/13387-sales-management.html 6/6