What Is Sales Management?

/

Companies use salespeople to find, sign, and service customers, and to build revenue and profits. Sales management is the discipline of maximizing the benefits a company and its customers receive from the efforts of its sales force. That’s our definition. Here are what other experts say:

 
“A sales manager can have a narrow or a broad spectrum of responsibilities including the following: estimate demand and prepare sales forecasts; establish sales force objectives and quotas; prepare sales plans and budgets; establish the size and organization of the sales force; recruit, select, and train the sales force; compensate the sales force; control and evaluate sales performances.”

– Robert D. Hisrich and Ralph W. Jackson, Selling and Sales Management

“Good sales management properly applied is the least expensive, most effective, way to increase dollars of revenue and margins, market share, cash flow, return on investment, and net present value, as well as to beat the competition and make yourself a hero. . . . It costs no more to properly hire, train, compensate, motivate, and evaluate salespeople. Effective time and territory management, forecasting, planning, budgeting, and good communication and control are no more expensive than performing these same functions poorly.”

– Robert J. Calvin, Sales Management

“Sales management: The attainment of sales force goals in an effective and efficient manner through planning, staffing, training, directing, and evaluating organizational resources.”

– Charles M. Futrell, Fundamentals of Selling

 

Note that these functions are mentioned repeatedly in these summaries of sales management:

  • Sales planning
  • Recruiting / staffing
  • Training
  • Controlling / directing
  • Evaluating
  • Effectiveness / efficiency
  • Compensation

Besides examining the high-level elements of sales management, it is helpful to catalog the specific tasks that are performed on a regular basis in a well-managed, effective sales force. Some of these are:

Responsibility or Task
Required Frequency
Weekly
(or more)
Monthly
Quarterly
Annually
As
needed
Hire new sales staff
x
Reassign / outplace underperformers
x
Develop / refine sales plans and strategy
x
x
Implement / update reporting system
x
x
Establish / update compensation plan
x
x
Develop / update sales targets / quota
x
x
Develop / update performance standards
x
x
Develop / update sales territories
x
x
Conduct personnel evaluations
x
x
Enhance sales team capabilities via training
x
x
Develop and implement special incentives
x
x
Manage the sales budget
x
Assess performance vs. quota and
standards
x
Communicate sales performance internally
x
Evaluate / review sales pipeline / forecast
x
x
Lead sales meetings
x
Coach salespeople on an individual basis
x
x
Provide tactical advice on sales opportunities
x
x

The Impact of Effective Sales Management

While this may seem like a lot to do, effective sales management requires ongoing involvement with the sales force. But effective sales management has numerous positive impacts. It can:

  • Increase sales revenue and profitability
  • Decrease variability of revenue due to inaccurate forecasting
  • Increase sales productivity (revenue per salesperson)
  • Increase customer satisfaction and loyalty
  • Increase salesperson motivation

If your company’s sales efforts are not living up to expectations, it is time to take your sales efforts to the next level, or there is a specific area where your sales organization needs some assistance, Sales Management Services can help. Contact us for more information.