What is Sales Management? Sales Management Process

Joanna Okedara
Table of Contents
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    The truth is that sales is the lifeblood of any business. From D2C businesses and B2B eCommerce businesses to marketplaces online and brick-and-mortar businesses, no business can survive without getting sales.

    Now, sales management is not merely about closing deals or hitting targets. It’s more than that. Sales management is a comprehensive process that drives sales managers and sales teams to achieve outstanding results while building long-lasting customer relationships. 

    Key Takeaway: It’s easy to implement eCommerce marketing strategies that will help you build brand awareness and get qualified leads. However, without the right sales management process, such as a direct to consumer sales strategy, it becomes difficult to convert these leads into eCommerce sales.

    From establishing sales targets and motivating sales teams to implementing robust b2b vs b2c sales strategies and monitoring progress, sales management strategies plays a pivotal role in converting leads into customers. So, what is sales management?

    This article will explore sales management definitions. We will also look at how effective sales management can empower businesses to build robust sales teams, develop meaningful customer relationships, and ultimately, propel their bottom line. 

    Let’s get started!


    Sales Management Definition

    Sales management is the process of planning, organizing, directing, and controlling the sales operations of a business. The aim of sales management is to effectively manage the sales process, from prospecting and lead generation to closing deals and ensuring customer satisfaction

    An effective sales management strategy can mean the difference between revenue growth and going out of business. You can set your entire sales team up for success with the right sales management strategies.

    Sales management merges various elements into a cohesive strategy that empowers the sales team and drives revenue generation. These elements include overseeing the sales team, setting sales goals, developing sales strategies, monitoring performance, and implementing measures to optimize sales efficiency and drive revenue growth.

    Let’s look at some of these elements:

    • Planning: The first step in any sales management process is planning. Planning involves setting clear sales objectives, determining target markets for your sales pipeline, and developing strategies to reach potential customers. It also includes sales forecasting and creating budgets to support sales activities.
    • Organizing: Sales management process also requires organizing the sales team, assigning territories or accounts, and establishing clear roles and responsibilities. Your sales manager must be able to provide the necessary tools and training to enable the team to perform effectively.
    • Directing: Sales managers are an important part of the sales management process. They provide guidance, support, and coaching to help salespeople achieve their targets. Effective communication and regular team meetings are essential for keeping the sales team focused and aligned.
    • Controlling: Monitoring and controlling sales metrics and performance is essential for sales management. This involves tracking key performance indicators (eCommerce KPIs), analyzing sales data, and assessing the effectiveness of sales strategies. Sales managers may implement performance metrics, such as eCommerce conversion rates, average deal size, sales win rate, average sales cycle length, customer churn rate, or customer satisfaction scores, to evaluate individual and team performance.
    • Optimization: Sales management aims to optimize sales performance by identifying areas for improvement and implementing strategies to enhance efficiency and effectiveness. This may involve refining sales processes, implementing sales automation technology tools, providing additional training, or adjusting sales strategies based on market feedback.

    Sales Management Example

    Imagine a pasta wholesale distribution company called PastaPro. In this sales management example, we’ll look at how the sales management process plays a critical role in driving the company's b2b sales processes and revenue growth.

    1. Overseeing the Sales Team

    The sales manager at PastaPro is responsible for recruiting and hiring a skilled sales team. They carefully select sales representatives who possess strong product knowledge, excellent communication skills, and a passion for the food and beverage industry

    In addition, the sales manager also ensures that the team receives comprehensive training on the different types of pasta, customer handling techniques, and the company's unique selling propositions.

    1. Setting Sales Goals

    The sales manager collaborates with the sales team to establish sales goals that align with the company's overall objectives. For example, they may set a goal of increasing pasta sales by 20% within the next quarter. 

    This goal provides a clear target for the sales team to strive towards and serves as a benchmark for measuring success.

    1. Developing Sales Strategies

    To maximize sales opportunities, the sales manager and sales team develop effective sales strategies. They identify potential target markets, such as local restaurant businesses, hotels, and catering businesses, and devise tailored approaches to reach out to these customers. 

    The team may conduct market research to identify customer preferences and trends, allowing them to position PastaPro's products as high-quality, authentic, and competitively priced.

    1. Monitoring Performance

    The sales manager closely monitors the sales team's performance to ensure they are on track to meet their goals. They track key performance indicators, such as sales volume, customer acquisition rates, and customer satisfaction levels. 

    Regular sales meetings and performance evaluations allow the manager to provide feedback, address challenges, and identify areas where additional support or training may be required.

    1. Implementing Optimization Measures

    Optimization is key in sales management. To optimize sales performance, the sales manager implements measures aimed at enhancing efficiency and effectiveness. 

    The team may invest in a wholesale CRM system to track customer interactions, manage leads, and streamline the order management process. It is important that the sales manager encourages collaboration among the sales team to improve overall sales productivity.

    6 Importance of Sales Management

    Here are some key reasons why sales management is important:

    1. Revenue Growth

    Effective sales management strategies are directly linked to revenue growth. One thing sales management makes possible is ensuring that sales goals are met or exceeded. 

    By optimizing the sales process and maximizing sales opportunities, sales management drives revenue generation and contributes to the financial success of the business.

    1. Sales Team Performance

    Sales management is essential for managing and optimizing the performance of the sales team. By coaching and mentoring the sales team, sales managers enhance individual and collective performance, leading to increased sales productivity and improved outcomes.

    1. Customer Satisfaction

    Sales management puts customer satisfaction first. The customer-centric approach of a sales management strategy makes it easy for sales managers to enhance customer satisfaction, customer loyalty, and customer retention

    Satisfied customers are more likely to become repeat customers and provide positive referrals, contributing to long-term business success.

    1. Market Penetration

    Sales management is instrumental in expanding market reach and penetrating new markets. Team managers identify and evaluate market opportunities, develop targeted sales strategies, and execute plans to enter new markets or target new customer segments. 

    Effectively positioning products or services and adapting sales approaches to specific markets will facilitate market expansion and increase market share for the business.

    1. Competitive Advantage

    Businesses can gain a competitive advantage with effective sales management processes. This is possible when sales managers analyze market trends, monitor competitor activities, and in turn, develop strategies to differentiate the business from competitors. 

    Some of these strategies may include identifying unique selling points, implementing pricing strategies, enhancing customer service, or introducing innovative sales techniques. By staying ahead of the competition, sales management helps the business maintain a strong position in the market.

    1. Data-Driven Decision Making

    The sales management process relies on data analysis and performance tracking to inform decision-making. Sales managers monitor sales metrics, track key performance indicators (KPIs), and analyze sales data to identify trends, evaluate the effectiveness of sales strategies, and make informed decisions to optimize sales performance. 

    Data-driven decision-making enhances the accuracy and effectiveness of sales strategies, minimizing risks and maximizing opportunities.


    Frequently Asked Questions About Sales Management

    Sales management is not easy, and unless you have a solid sales management strategy on ground, your sales team may not achieve the desired results. Besides having a strategy, it is important to integrate sales tools like sales management software and B2B sales rep tools that can help you reduce customer churn rate, streamline your sales process, and increase your revenue potential.

    Let's answer a few more questions about sales management.

    What are the 4 steps in the sales management process?

    The four steps in the sales management process are:

    • Planning
    • Organizing
    • Leading
    • Controlling

    What are the 7 key areas of sales?

    The seven key areas of sales include:

    • Prospecting and lead generation
    • Sales presentations
    • Negotiation and closing
    • Relationship building
    • Account management
    • Sales analytics
    • Sales strategy development

    What are the 5 sales stages?

    The five sales stages are:

    • Prospecting
    • Qualification
    • Presentation and proposal
    • Negotiation
    • Closing
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