Understanding the Role and Objectives of Sales Management
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It is important to realise that sales strategies are made according to the objectives of the organization. Corporate strategies are the intent statement that provides a direction in which a firm will perform to follow its mission while sales strategies are the planned approach that is formulated to account for management, sales presentation and order in order to achieve the firm’s targets. The following is a list of sales strategies and how they are developed in line with corporate objectives:
- They are developed to help in improving client loyalty;
- Help to establish a precise plan to enhance and strengthen the lead generation;
- Help to maximize and refine the competitive advantage as well as product differentiation to increase the market share;
- Helps shorten the sales cycle especially with outside recommendation;
- Help in penetration and targeting the most promising markets and the respective profitable sectors;
- Increase in knowing customers’ hot buttons and thus increasing the closeting ratio;
- Helps to offer the best solutions to outsell other competitors in the market.
P 3.2 THE IMPORTANCE OF RECRUITMENT AND SELECTION PROCEDURES
Recruitment is that process of attracting potential candidates, screening and selecting the most qualified candidates for the job. The selection process involves the following: Screening applicants: reading of all applications submitted and selecting the top qualified candidates for interviewing based on the job description and required specifications. The criteria used to be appropriate and former employees need to meet certain criteria to be considered by the HR department.
Interview: the main reason for an interview is to help appoint the best qualified person for the job based on suitability and merit. According to the Valdosta University, this is best achieved through a systematic, fair, job related, objective and unbiased rationale. During the interview, candidates should be treated consistently by the panel through asking the candidates:
- Same initial questions;
- allow to access to presentation materials like notes, not allowing discriminatory questions, or harassment;
- Ensure reasonable adjustments incise of disabled candidates.
Selection tests: this is a method of assessing candidates whether they are reliable, unbiased, and relevant. This is a particularly useful tool and supervisors should get guidance from the HR department on how to use them.
Hiring decision: the HR department and panel ought to make a decision based on eligibility and merit before hiring the candidate by judging:
- Reference checks;
- Content of their qualifications;
- The outcome of any selection tests.
The HR panel selecting the candidates should certify that the information given by the candidates is honest, consistent and authentic. This includes work history, qualifications, and reference checks. Reference checks are vital because of the following:
- Establish a good rapport;
- Let the person talk freely;
- Tell the person what the candidate is being considered for;
- Ask the person if they will re-hire the candidate.
Other things that ought to be checked include criminal background checks in order to provide a secure safe working environment as well as to reduce probability of litigation that may be associated with negligent hiring. If everything is okay, then the HR department can resume the employment development.
P 3.3 THE ROLE OF MOTIVATION, REMUNERATION AND TRAINING IN SALES MANAGEMENT
Motivation has an influential role in sales performance whether it is to the sales person or to the sales supervisor. It is important to realise that sales is a truly tough job, and motivation can move other sales persons to become even better. Sales people can be highly paid or just broke depending on their sales volume because the higher the sales are, the more monetary value one gets. However, sales have its own challenges and the biggest is to overcome rejection although it is part of the sales game. Sales people, however, need to have time to read as well as listen to motivational speakers and books as it will help them feed their minds with encouragement and positive words. This will especially help them during ‘bad sales days.’
For the sales managers and supervisors, providing their sales team with motivation is equally highly important. This is to help them see more of themselves rather than beat themselves for not making up many sales on some days. This implies that motivation is necessary as it will cause sales people to take action to make things happen. Taking action is the key to improve sales volume, and the more action the sales people take, the more sales and closure to achieving their goals. In order to reach such goals, sales people need to motivate themselves also or through team work with other sales persons.
Training basically refers to the process of acquiring knowledge and skills as a result of vocational and practical training that are related to the specific job. Training forms the key apprenticeship to performing ones core functions. Sales managers need to train their staff beyond qualifications or otherwise their professional development. This is done to help sales people acquire the necessary skills to perform their tasks professionally. Training is particularly important because of the following reasons:
- Distinguish between similar products and services – salespeople must capitalise on product differences.
- Putting together groups of products to form a business solution. Single products becoming obsolete.
- Handling more educated buyers. Customers awarer. Got to work harder in order to close the sale.
- Mastering the art of consultative selling. Reduce customer’s responsibility to discover own needs and show how products/services will fill these needs.
- Managing a team selling approach. Sales teams will have to utilise technical/marketing and experts in other product areas.
- Knowing the customer’s business. Relationship building is vital.
- Adding value through service. Must provide on-going support and business consultations if business just orders takes – vending machines.
There are several benefits that accrue from training of sales people, and they include the following:
- Enhanced skill levels
- Improved motivation
- Greater self confidence in one’s ability
- Reduced costs
- Fewer complaints
- Lower staff turnover
- Reduced management support
- Higher job satisfaction
- Higher sales and profits
The sales manager ought to train his/her sales people on how best to tackles problems associated with sales. They can be rewarded handsomely when they reach certain targets. This way sales people will want to reach and beat the set targets and in reality move sales volumes even higher. Remuneration here refers to the compensation the employee gets for rendering his/her services to the company. Sales managers ought to ensure that remuneration packages are the right to motivate the right people. Motivation can be done through:
- Praise and recognition
- Esteem and status
- A sense of belonging to the team
- Challenge and achievement
- Good rapport with the sales manager and peers
- Offering job security to the sales people
- Self realisation and fulfilment through personal growth
- Compensation and advancement
It is of particular importance to realise that financial incentives are equally important as the most common type of remuneration is through salary and commission with a relative level of security. Financial incentives are important because of the following reasons:
- Self satisfaction from doing a good job
- Satisfying customer needs
- Achieving sales targets
- Acknowledgement of effort
- Increase chance of promotion
- Improve lifestyle
- Meet family responsibilities
- Make more money
- Satisfy Manager’s expectations
P 3.4 HOW SALES MANAGEMENT ORGANISE SALES ACTIVITY AND CONTROL SALES OUTPUT
Primarily, there are two techniques that are used to coordinate and control sales output. These include sales output control and language.
Sales output control
Sales output control can be automatically or manually triggered in the sales document. For automatic determination, it requires that there is maintenance of output condition record. Layout sets and print programs control content will be displayed in the output.
Output control using condition
This is determined by using basis of sales document including billing type, sales order, delivery type and type of sales order. The standard output order for sales order (OR), bill (F2) and delivery (LF) is usually V100000.
Medium includes the Like print, EDI and Fax. The time of sending output is immediate or in a batch to the function of business partner, which it can be sent to.
This is the criteria under which the output condition is maintained for an automatic output determination. Language offers the flexibility of changing the control keys in sales documents. For example if the customer whose sales order is scheduled to be done in a batch but wants it immediately, then the dispatch control can be changed accordingly in the sales order.
P 3.5 THE USE OF DATABASES IN EFFECTIVE SALES MANAGEMENT
Sales team software application and QuickBase online sales management ensure that it is easier for a sales manager to manage the sales team below him and ensure that the business grows. This is done by helping the sales manager to:
- End the sales lead spreadsheet chaos. The sales lead software merges monthly sales lead from a number of sales representatives that may be not only messy but also unreliable. Though QuickBase helps to track sales leads and update the sales status in one central online CRM.
- Help in improving sales pipeline management. QuickBase helps to increase the visibility of sales leads data and help in rapidly identifying the important sales opportunities at each stage of the sales cycle and also check sales against the set targets.
- Help in improving the sales teams’ accountability. QuickBase helps in tracking sales person’s tasks and sales leads for each day. QuickBase also allows the sales reps to receive automated notifications of the tasks that are assigned to them when deadlines for sales are approaching.
- Help in empowering the sales team with sales pipeline information. Sales reps are able to access easily their sales pipeline, their product line collateral & resources as well as their sales leads. This is the sales reps most critical information, and as long as they are able to connect to the internet, service is available 24/7.
- Help in managing the sales team as desired. QuickBase helps sales managers and supervisors to customise their sales management software application and align it with their sales team’s unique terminology and sales process. It is easier to operate for the sales reps as it does not need any encoding or any IT jargon. This is easy to manipulate unlike the rigid sales force automation system that has an inflexible functionality (Sales Management Software).
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