What is Sales Management ?


The word ‘sales management’ is a combination of two concepts i.e. sales and management. Sales is an art of persuading a prospective customer to purchase a product or service. Management is the process of getting things done through others with the help of managerial activities. Thus, sales management is the process of managing, leading and directing the activities involved in generating, developing and maintaining an organization’s sales.

This includes developing sales personnel, coordinating sales activities, making and implementing effective sales techniques to increase sales and revenue for the company. Sales management helps companies by ensuring the success of their business. This is done by maximizing revenue and minimizing costs. A good sales manager will always have a good understanding of their customers needs in order to create a customer-oriented culture within their organization.

The primary responsibility of a sales manager is to increase sales by motivating their team and making sure they have the right tools. They also ensure that all policies, procedures, and company guidelines are followed. They also ensure that all policies, procedures, and company guidelines are followed to achieve the sales commitments.

Objectives of Sales Management

 The primary objective of sales management is to increase the revenue and profit of the company. Some of the main objectives of sales management are: 

Sales Maximization

Sales maximization is one of the important objectives of sales management. Every organization aims to increase their sales volume and revenue and the sales management helps to maximize it through effective planning, organizing, coordinating, controlling and motivating the sales force and the sales related activities. Sales management optimizes the sales function.

Profit Maximization

Another important objective of sales management is to maximize the profit for the organization through increasing the sales volume in the company. The sales department is responsible for generating the revenue in the organization and sales management plays a vital role maximizing the profits for the company.

Sustained Profits

Not only maximizing the profits in the company, the sales management also aims to sustain the profitability in the organization. Sustainable profits are crucial for business organizations to grow and scale in the market. Sales management strives to increase sales, reduce costs and ensure sustainable profits in the organization.

Ensure Organizational Growth

Sales is an important function. This function is a revenue generating function. Hence, sales management ensures revenue generation and promotes organizational growth. For any business, growth is the ultimate strategy for which sales figures need to support this growth strategy. Hence, this management ensures organizational growth by maintaining sound sales volume and stable revenue generation.

 Sales force Motivation:

Sales force motivation is an important function in sales management. This function can be a challenging job and requires intense work routine. This management stiffly focuses on making the job easy and encouraging. For this, sales managers motivate employees to keep them working effectively and efficiently. For this, a sales manager motivates employees by providing incentives, proper guidance and rewards.

Enable to become market leader: 

A well-designed sales function helps the organization to become market leader with increased sales volume and profits. Sales generate revenue for the company and the sales function reflects the market feedback to the company. All such inputs enable companies to take advantage and lead the market. A good sales function is very crucial for a company’s growth.

 Assist Marketing Strategies.

Sales function plays an important role in defining marketing strategies. Marketing and sales strategies go hand in hand. Sales functions assist in pricing and help in making competitive pricing strategies. Similarly, the sales function is responsible for defining new markets and marketing strategies required for the market. The valuable feedback from the sales function is the input for marketing strategies.

Importance to Sales Management

For a business to be successful and grow in this competitive market, it must have effective sales management/function.There are many reasons why sales management is important in business. Some of them are mentioned below:

  • Sales management helps the company to achieve its sales objectives, maintain sales process control, accelerate sales process, enhance sales performance and thrive in a cutthroat industry. This is one of the reasons why sales management is important for a business.
  • Apart from this, effective sales management helps to improve the quality of the selling process and helps the business to grow and scale through planning, organizing, directing, coordinating and controlling.
  • An efficient sales management reduces the cost of product distribution and selling process and helps the company to increase the revenue and profitability.
  • Sales management enables the entrepreneurs to improve team communication, launch new products or services in the market, increase the production of goods that are in high demand in the market, increase the number of customers and improve relationships with them.
  • Sales management helps to establish a good brand image and customer loyalty as it helps to produce and distribute quality goods and services in the market at reasonable prices.
  • Sales management helps to evaluate the performance of sales force by finding out the deviation between actual sales and desired sales and corrective measures which can be taken to reduce the deviation.
  • An effective sales management inspires the sales force to sell the products and services to their best capacity by providing them with all the necessary training, guidance, facilities instructions and purpose related to sales activities.


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