Effective Sales Management: Strategies and Techniques
Sales Management
Sales managers take a systematic approach to decisions concerning the sales team. The changes are designed to increase profitability, reduce costs, improve efficiency, or implement a combination of the three. A well-prepared, informed, and intelligent sales director will only proceed to reorganize or modify part or all components of the team if it is considered that the team will become more efficient and profitable for the company.
Leadership
Leadership exerts influence over others so that they reach the desired objectives within a management period. A leader has influence over a group. There are two types of authority origins:
- Legal: Leadership is a mandate granted vertically downwards.
- Moral: Leadership is a concession upward vertically or horizontally.
Classes of Natural Leaders
Natural leaders have often been leaders from a young age and tend to be people with charisma, based on their courage, optimism, and ancestry.
Artificial Leaders
Artificial leadership is attributed or ascribed circumstantially and temporarily to address a group. Both natural and artificial leaders may have other factors that boost their leadership, such as communication and persuasion capacity, consistency, a sincere and attractive smile, and their eagerness for domination over others.
Differences Between Management and Leadership
Management
- Represents the company.
- Is backed by formal authority.
- Has legitimate power to reward or punish the behavior of employees.
- Involves a series of functions within the company.
Leadership
- Arises within a group of business people.
- May or may not be supported by formal authority.
- Power is to achieve action beyond the directives of authority, and even oppose it.
- Is a way to get support and influence over others.
Directorate Functions of Sales Teams
Planning
- Establish team targets for sales.
- Determine the human and economic resources available to achieve targets.
- Know your personnel’s nature and behavior.
- Understand costs.
- Deploy sales team derived from market research, taking into account the skills and experience of the team members.
Sales Team Organization
Involves using strategies for achieving the objective of each vendor. The goal is to get the seller to do business directly with potential customers. The level and quality of customer service should be well defined and clearly identified to personnel. This process induces an analysis designed to show the work of each level and form the staff group, to achieve adequate direction. This process consists of:
- Define the variables that must be defined:
- Number of customers and potential customers each vendor has to visit.
- Frequency of visits necessary for each customer type.
- Average daily sales hits per seller.
- Sales days per year.
- Calculate the size of the sales team: (Number of clients and prospects x frequency of necessary visits) / (Average daily views x number of sales days per year)
- Determine the workload of the regional or zonal sales headquarters. The number of sales heads depends on these factors:
- The degree of training required by the company within the area.
- Quantity of personal selling that has to be performed by the regional head.
- If the regional manager does all the training work or helps any special teams.
- If you need to apply different types of training.
- Staff recruitment for sale: The process to select suitable people for the sales team.
- Learning and development: This function should determine what should be taught, where the training should be provided, who should provide it, and how training should be provided.
Motivation
The sales manager must understand the main forces and the importance they give to the sales team members (salary, incentives, job satisfaction, security, and category). Motivation has two effects on the sales staff: proper attitude toward work and job satisfaction that play a role in achieving the objectives agreed with the director.
Control Activities of Sales
The sales director needs accurate and current information to compare results with preset standards. They need to intervene only when there is a significant departure between the actual and planned actions.
Monitoring
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