Lesson 1: Sales Management

Unit 1: Definition of Sales Management
The act of managing sales activities in a specific organization is termed sales management. It is a field which explains the management, sales technique and operations of business activities.

Sales managers are those who are trained to coordinate and guide the activities of salesmen in an organization. Sales management helps companies in setting sales target; driving sales team to perform; organizing appraisals; recruiting new sales team, formulating companies sales policies and ensuring its compliance; planning, organizing, budgeting and implementing sales programmes.

Unit 2: Factors Affecting Sales
Various factors affect sales of company products. These factors affect sales either positively or negatively. Some of these factors are

a. Products availability
Sales either reduce or increase due to products availability. When products are available, the sales become stable and consumers found it easy to get them. But they find it difficult to get or buy when they are scarce and not available. Products become costly when they are not available and easily reached for customers. When products are not available, their prices increase and are not affordable for consumers.

b. Poverty and unemployment
Poverty and unemployment reduce the purchase of goods and services. Goods sales are very low when majority of the consumers are poor and unemployed. This means they may want to buy goods but may not have the ability to do so due to poverty. In other words, poverty and lack of job reduces sales of goods.

c. Religion
Religion affects the sales and purchase of goods. Some products are not accepted by some religious group especially as they see their usage as against their religion and will of God. Some religions preach against putting on trousers, while some preach against taking alcohol. Such products which these religions preach against will witness low patronage where members of these religious groups abound. For example, in Kano a special security team goes round to arrest sellers of alcoholic drinks and destroy alcoholic products.

d. High price
Goods sales increase when their prices reduce and decreases when their prices increase. The increase in price for goods leads to its low purchase while decrease in price leads to its high purchase.

e. Competition
When products have competitors, their prices and demand reduce. Consumers make choices and go for products which can meet their wants and are affordable. Competitions bring about reductions in prices of goods as consumers have options to go for cheaper prices.

f. Change in taste
Purchase and patronage of goods reduce when consumers taste change. Consumers change the use of a product as its usage may become obsolete. They get tired of it and opt for another product with similar value and quality. By this, the product which consumers abandon remains abandon in store while the one which they went for becomes high in demand.

g. Weather variations
Change and variations in weather conditions bring about change in demand for goods. Products which are useful at a particular weather get costly during the same weather and become cheap when the weather is off. Seasonal products are always costly during the season and are cheap during off season. For example, sweaters and cardigans are costly during rainy season, harmattan and cold. While they are cheap during hot season.

Unit 3: Duties of Sales Management
Various duties are carried out by the sales management team of every organization. Amongst these duties are

a. Target setting
b. Planning and budgeting
c. Organizing and carrying out programmes
d. Employment and training
e. Controlling and assessing staff
f. Organizing and doing meetings
g. Pushing sales team in result delivery
h. Ensuring strict compliance with company policies.

a. Target setting
Targets setting is a vital duty of the sales management. The management team sets targets to be achieved by all salesmen. The management assigns targets to each salesman according to the volume of the market. Companies use the sales target projection to project the income to be generated for the company. The sales target tells how efficient a salesman

b. Planning and budgeting
it is one of the duties of the sales management to plan and budget for the company. The team plans the Income generation of the company and prepares the budget which the company will work with in a financial year.

c. Organizing and carrying out programmes
Members of the sales management team engages in organizing programmes and carrying out the programmes. The team organizes meetings and takes decisions in the meetings.

d. Employment and training
The sales management team engages in employment and training of salesmen. The team engages in recruiting and employing salesmen and also ensures that the recruited salesmen are trained to be able to carry out their assignment.

e. Controlling and assessing staff
The sales management team also carries out the duty of controlling and assessing staff. The team formulates policies which are used in controlling the activities of salesmen. They also ensure the policies are strictly followed by the sales team.

f. Organizing and doing meetings
The sales management team engages in organizing and doing meetings. They sit to discuss the activities and progresses made by the sales team. The sales management convenes meetings of all salesmen where they sit and discuss the problems encountered by the team and possible solutions to the problems.

g. Pushing sales team in result delivery
The sales management team helps in pushing salesmen into meeting up with their sales target. The monitoring of sales activities and ensuring that salesmen engage in activities that will lead to result delivery is one of the duties of the sales management team.

h. Ensuring strict compliance with company policies
Sales policies are formulated by company sales management. The team plans the polices, and ensures strict compliance by all salesmen. All concerned members of staff of the company and customers are also enforced by the sales management to abide by the sales policies.

Unit 4: Roles of Sales Forces
The roles of sales forces cannot be overlooked. The forces perform various roles in making the job of sales successful. Some of the roles of sales forces are

a. Selling companies’ products
b. Building customers
c. Building and retaining sales territories
d. Promoting companies products
e. Generating sales and income

a. Selling companies’ products
Selling the products of companies to their customers is one of the roles of sales forces. The sales forces take their companies’ products to customers for sale.

b. Building customers
The sales forces ensure that their old customers are retained while new ones are raised. Sales forces ensure old customers of companies are satisfied and retained while new customers are made to join the purchase of companies’ products.

c. Building and retaining sales territories
Sales forces of companies engage in building and retaining sales territories. The team fashions out means of capturing new territories and ensuring old ones are properly serviced and maintained.

d. Promoting companies’ products
The sales force also engages in promoting companies products through creation of awareness, exhibitions, etc. The team moves about with old and new products of the company and ensures all customers and the public are aware of their existence.

e. Generating sales and income
The sales force also carries out the role of generating sales and income for their companies. The team engages in supply and sales of products and generates income through these activities.

Unit 5: Companies Sales Objectives and Sales Force Decision
Companies sales objectives are the aims why companies are formed and operated. The objectives are what the companies aim to achieve at a specific time. The sales objectives depend on various factors which include distribution, advertisement, profit, plans, etc.

The company sales objectives include the following:

a. Increasing sales volume
b. Contributing to the company’s profit and gains.
c. Growth and existence.

a. Increasing sales volume
Companies have ¡t as an objective to increase their sales volume. Sales volume is increased for companies through sales and thus leading to increase in income generation.

b. Contributing to the company’s profit and gains
It is the objective of the company’s sales force to contribute to the company’s profit and gains. They do these through their activities and contributions from time-to-time.

Companies produce goods to make sales and profits. Companies who do not make profits cannot last for long in the market. Businesses are established to make profits. Therefore, companies are established to make profits.

c. Growth and existence
One of the main objectives of companies is to continue to grow, exist and to expand in size and in production. Customers who can purchase goods and pay for them are sourced and serviced. The companies involve in product promotion, products awareness creation and exhibition to make them available to customers who need them. Through these means, products are exposed to the public and to the customers. All these help in companies’ growth and continuous existence.

Unit 6: Companies Sales Force Decision
There are various decisions which companies’ sales force take to help them. These decisions help in the growth and existence of the companies. The decisions made by companies’ sales force include the following:

a. Budget preparation
b. Products and goods advertisement
c. Salesteam target allotment
d. Sales policies formulation
e. Selecting and employing new staff members
f. Organizing and carrying out sales activities
g. Supervising and assessing salesmen

a. Budget preparation
One of the companies’ sales force decision is to prepare the budget for the financial year. The team collates all needed data, analyses it, works on ¡t and presents same to the organisation’s management for consideration and approval.

b. Products and goods advertisement
The sales force engages in goods and products advertisement and promotion. These help the companies to increase their sales and income. Companies’ sales force decides on how to promote products, the products to promote, the people to promote them for and the period of promotion.

c. Sales team target allotment
The Company’s sales force team engages in allotment of sales target. The sales force carry out the duty of giving sales targets to members of the sales team. The team not only allots sales target but also ensures they achieve the targets.

d. Sales policies formulation
The sales force of companies engage in formulating the sales policies of companies. The sales policies of companies are formulated to guide their sales activities. The policies dictate the manner and way with which company’s sales are operated. The policies are formulated by the team and are strictly monitored for implementation by the sales force.

e. Selecting and employing new staff members
The decision to select and employ new staff members for the sales team is done by the sales force. The team sits and decides on the kind of staff needed, the qualification to be accepted; the time of recruitment and the manner of the recruitment process.

f. Organizing and carrying out sales activities
Companies sales force engage in organizing and carrying out sales activities. The team engages in planning and carrying out all sales programmes and activities as organized by the team. The team engages in planning on what will boost the company’s sales and income.

g. Supervising and assessing salesmen
Mother vital decision of the sales force is to assign routes to sales team; supervise their activities and assess their performances. They monitor their activities and ensure proper assessment report is written on their behalf.

EVALUATION QUESTIONS
I. Define sales management.
2. State and explain factors affecting sales.
3. Mention and describe the duties of sales management.
4. List and explain the roles of sales force.
5. Discuss companies’ sales objectives and sales force decisions.

Scroll Down to Select Page 3 for the next topic – Lesson 2: Sales Forecasting



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