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SDM Lecture 1 - Intro of SM

Sales management involves planning, directing, and controlling the sales force to achieve marketing objectives. It includes recruiting, training, motivating, and supervising salespeople. Sales management aims to generate revenue by turning prospects into customers. Key aspects of sales management are setting sales goals, implementing sales strategies, and managing the sales process from lead to close. Sales management metrics help track performance indicators and sales pipelines.

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Kiran Nagare
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36 views

SDM Lecture 1 - Intro of SM

Sales management involves planning, directing, and controlling the sales force to achieve marketing objectives. It includes recruiting, training, motivating, and supervising salespeople. Sales management aims to generate revenue by turning prospects into customers. Key aspects of sales management are setting sales goals, implementing sales strategies, and managing the sales process from lead to close. Sales management metrics help track performance indicators and sales pipelines.

Uploaded by

Kiran Nagare
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction of Sales Management

Sales management originally referred exclusively to the direction of the sales force. Later
the term took on broader significance in addition to the management of personal selling. Sales
management specifically contributes to achieve the marketing objectives of a firm. In fact, sales
managers set their personal selling objectives and formulate the personal selling policies and
strategies.

Meaning & Definition of Sales Management


The word sales management is a combination of two words- sales and management. Sales
is the art of planning in the mind of another a motive which will induce favorable action.
The committee of American Marketing Association has defined it as- “Selling is the
personal or impersonal process of assisting and or persuading a prospective customer to buy a
commodity or a service or to act favorably upon an idea that has commercial significance to the
seller.”
“Sales management is the planning, direction and control of selling of business unit
including recruiting, selecting, training, equipping, assigning, routing, supervising, paying and
motivating as these tasks apply to the personnel of sales force”.
Sales management originally referred exclusively to the direction of the sales force. Later
the term took on broader significance in addition to the management of personal selling. Sales
management meant all marketing activities, including advertising, sales promotion, marketing
research, physical distribution, pricing and product merchandising. Sales is the only function in
an organization that generates revenue or income for a company and hence it needs to be
managed properly. The financial results of a company depend upon the performance of the sales
department.
There are couple of aspects observed that should be motivating for the potential sales people.
The first is that sales people are ‘often the best paid people in the business and sales are often
considered the fastest and surest route to top management.
Key terms [Sales glossary]

 Activity-based selling: The theory that you can close more deals by focusing on the
activities you can control, such as the number of calls or appointments made, rather than
focusing on results, or making a certain amount of money in sales.

 Close/closing: Bringing a prospect to a final buying decision.

 Close ratio: Number of deals you close compared to the number of deals you have
presented.

 Cold calling: Getting in contact with a potential customer with no prior contact or


relationship in hopes of setting up an appointment of informing them about your product
or service.

 Conversion: The act of turning a prospect into a customer.

 Customer relationship management (CRM): A tool or software to manage your


customer relationships and sales pipeline.

 Deal: An agreement to meet or take action with a prospect.

 Demo: A sales presentation of your product or service.

 Lead: Anyone who could potentially be a customer.

 Marketing: The act of promoting your product or service.

 Metrics: A collection of individual and organizational performance indicators and ratios


calculated from collected data that describe a company’s historical and ongoing sales
processes.

 Product: Something made to be sold to a consumer.

 Prospect: A potential customer or person who may be interested in a company’s product


or service.
 Quota: A fixed share of something that a person or group is entitled to achieve or
contribute to.

 Retention rate: The percentage of customers who stay.

 Revenue: A company’s income or earnings.

 Sales cycle: The series of predictable phases required to sell a product or a service. Sales
cycles can vary greatly among organizations, products and services, and no one sale will
be exactly the same.

 Sales Dashboard: A method of measuring sales performance from a birds-eye view. A


sales dashboard helps measure key metrics, individual team members and sales activities.

 Sales force: Division of a business responsible for selling products or services.

 Sales funnel (or pipeline): A systematic and visual approach to selling a product or
service. The sales pipeline is helpful in showing you exactly where the money is in your
sales process.

 Sales management: The process of developing and coordinating a sales team.

 Sales management planning: Process of thinking and organizing activities to achieve a


desired goal.

 Sales management process: Steps taken to attain a company’s objectives.

 Sales management strategy: A method to bring about a desired outcome.

 Sales manager: Someone who’s responsible for managing salespeople and overseeing a


company’s sales process.

 Sales meeting: a meeting with the sales team, often to discuss process, products and
services, as well as the potential benefits for the buyer.

 Salesperson: Someone who typically works directly with customers to inform them and
sell a product while providing customer service.
 Sales reporting: The documentation of a company’s activities.

 Sales targets: Objectives or goals for a salespeople or company.

 Sales velocity: Time it takes for a new deal to close, from the initial contact.

 Service: An action performed to satisfy a customer’s need or problem

Online References -

https://www.pipedrive.com

https://www.economicsdiscussion.net

https://trackmaven.com/

https://www.yourarticlelibrary.com/

https://businessjargons.com/

Additional Readings -

https://www.businessballs.com/sales-and-marketing/sales-research-summary-of-key-selling-success-
factors/

https://www.superoffice.com/blog/science-based-selling/

https://blog.hubspot.com/sales/sales-forecasting

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