Sales Force Management: UGC NET Management Notes & Study Material

Managing a Sales Force is fundamentally the hiring training and maintaining of a qualified sales representative team to achieve organizational sales objectives. It can manage a sales force in an efficient manner capable of accomplishing the stated objectives and can assist a company in its growth. The task of performance standards providing on-going support and evaluating individual and team performance falls under its functions. Strategically aligning sales forces to company objectives might be one basis in which businesses push for and enhance better sales and relationships with customers. Successful management of the sales force leads to an enhanced level of profitability and competitive advantage.

Brand name decision is a vital topic to be studied for the management related exam such as the UGC NET Management.

In this article the readers will be able to know about the following:

• What is Sales Force Management
• Components of Sales Force Management
• Importance of Sales Force Management
• Objectives of Sales Force Management
• Sales Force Management Example
• Scope of Sales Force Management
• Functions of Sales Force Management

What is Sales Force Management?

The strategy employed by a company's management to direct and oversee its sales force is known as sales force management. It is employed to achieve objectives and income targets. Hire train and develop salespeople; establish performance goals; monitor results; maintain continuous encouragement and support; create plans to boost sales performance; and refine strategies using data and analytics. Managers who match the sales force's contributions to the organization's objectives increase productivity enhance sales procedures and cultivate relationships with customers. 

The columns of Sales Force Management are diverse crucial components which uphold a proficient and efficient sales force. Hiring training performance management compensation and motivation are all integral drivers to sales performance and corporate overall performance goals.

Hiring

One of the most important aspects of sales force management is hiring which includes choosing and assigning qualified applicants to the sales team. This includes creating thorough job descriptions, finding competent applicants with conducting interviews and assessing each applicant's fit for the position. A successful hiring process ensures that the sales team is composed of capable individuals who can meet sales goals and contribute to the company's success. Businesses lay the groundwork for a strong and effective sales force by hiring the right candidates. 

Training

Training includes investing in intensive onboarding training programs and regular education to equip the team with current product knowledge and sales tactics. Successful training programs make the salespeople market competitive with enhance their selling approaches and achieve a better insight into the customers' needs. Regular training expenditures ensure a very skilled and energized sales force. 

Performance Management

People in sales are judged for their performances against the targets they have been assigned. Positive feedback with appropriate performance goals and tracking of sales activity are all necessary. Performance management is a tool for accessing the performance of people in the same role. The high performers can easily be identified and so are the low performers. It is a helpful tool in performance appraisal.

Motivation

For doing any job correctly a person needs to be driven by motivation. In high pressure jobs people need to be highly motivated to perform. Effective motivation initiatives help support morale with job satisfaction and energize sales representatives to give their best. Through high levels of motivation companies are able to create an efficient and committed sales force.

Compensation

Compensation is one of the key areas that entail planning and organizing the monetary remunerations of the sales representatives based on their performance. It entails creating competitive reward packages with commission schemes and bonus plans based on the sales targets and organizational objectives. Successful compensation programs assist in retaining and hiring superior performers and boosting performance through associating remuneration with results. An effective compensation plan ensures sales representatives are compensated fairly for what they do to encourage them to make more sales.

Importance of Sales Force Management

Sales Force Management is important because it helps ensure that a company's sales force functions effectively and efficiently thus impacting revenue generation and the very growth of any business enterprise. The ability of the firm to enhance its sales performance and in turn deliver its organizational objectives lies in strategic management of as well as development in the sales force.

Improving Sales Performance

Effective sales force management improves sales performance because the salespeople know what is expected of them and receive training to support them as well as ongoing coaching. This process builds individual and team productivity to peak performance which leads to increased sales volume and therefore increased efficiency to win customers. For this reason managers have the ability to examine strengths and weaknesses with exact performance gaps which leads to strategies. Therefore an effective sales force manager increases revenue and provides a competitive advantage.

Strong Customer Relationships

The potential relationships established with customers also significantly result from the effective management of a sales force. By having sales representatives who are appropriately equipped and trained businesses are in a better position to build relationships with their clients and improve service. Building trust with clients through proper follow-up and communication also helps to ensure that a company keeps customers over the long-term. The relationship-building function is important for ongoing growth in a business as well as repeat sales.

Alignment of Sales with Business Objectives

When sales team activities are linked with strategic business goals the sales team can be assured that their sales activities are aligned to a greater coordinated outcome. Sales strategies align to holistic business planning to ensure there is a consistency in messaging and implementation. This alignment helps to create an optimum resource-allocating and eventually the maximum effect of initiatives in the sales force. Accordingly the sales force becomes an effective catalyst for organizational success and growth.

Objectives of Sales Force Management

There are two major objectives of Sales Force Management: improving the productivity of the sales team producing customer satisfaction with your company's revenues. An organization can accomplish the above objectives by formulating proper goals for its sales force providing the proper and comprehensive educational and training development and adequately evaluating performance to make sure the sales force is satisfying the organizational needs.

Optimizing Sales Team Performance

The key objectives of Sales Force Management are to maximize the effectiveness of the sales force by creating highly specific measurable sales objectives and also through the ongoing training and development of sales representatives so they can optimize their selling ability. The continued feedback and periodic reviews will help develop performance improvements and proactively reward performance excellence. With optimization of performance organizations can strive to enhance the productivity of the sales force which implies increased sales revenues.

Improving Customer Satisfaction

Accordingly one of the other primary goals is to actually increase customer satisfaction through management. When the sales people are highly trained and motivated they are at their best ability to identify and fulfill customer needs which establishes better customer relationships and interaction. When you know your sales team gives excellent service and follow-up then you enhance loyalty and customer retention. Happy beaming customers will be purchasers and advocates for your brand.

Driving Revenue Growth

The primary focus of Sales Force Management is to create revenue shaped by a sales team's effort. As a result they will often deploy and manage efforts to improve selling opportunities with conversion ratios and territory execution. In this aspect from a data perspective organizations improve their sales tactics by managing growth targets and requesting more revenue. 

Sales Force Management includes diverse practices and strategies for effectively managing a sales force to attain the desired business outcomes. A few of the examples that express the different ways multiple companies implement Sales Force Management techniques and how they drive performance and accomplishment are as follows.

Example 1: Salesforce's Thorough Training Programs

One of the reasons why salesforce a leader in customer relationship management (CRM) software tops the list when it comes to Sales Force Management is its extensive onboarding and continuous training curriculums with which it engages. The company invests a lot of time in this onboarding and continuous curriculum to equip its sales force with new product knowledge as well as diverse techniques of selling. Then they get ready to satisfy the demand of the customers for the effective promotion of their solutions. 

Example 2: Amazon's Performance Tracking and Incentives

Amazon uses advanced analytics applying performance metrics to track the productivity of its sales representatives. It also identifies high performers and its areas for improvement. Amazon also gives incentives and rewards to the sales force according to performance for motivation to achieve high performance levels. 

Scope of Sales Force Management

Management of Sales Force entails managing and leading a team of people to sell goods. It includes planning a sales strategy training the people who are on the sales team and making sure sales work well together as a team. The sales force management is meant to maximize the sales for their sales team and enable the sales team to be successful. 

Functions of Sales Force Management

In running a sales team there are a number of important responsibilities. First you hire the right people to represent the company's product then you train those people. You also have the additional task of motivating your sales force by establishing performance criteria to evaluate their effectiveness and then honoring their contributions in achieving those performance thresholds. Finally you verify that they are doing their jobs correctly and provide assistance when they ask you.

Conclusion

Sales Force Management is very important to companies-which in turn optimize the effectiveness and productivity of their sales team. It's not merely tactics for handling its sales activities but even people alignment towards a greater business objective. Healthy recruitment and training supplemented by performance appraisals can make up the disparities in the salesforce's potential. Such an optimized sales capability can therefore bring in huge revenue growth. Strong sales force management practice thus becomes a good investment developing an enthusiastic and high-performance team. It can eventually influence the success of a company and its market position if its sales force is well-managed.

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Major Takeaways for UGC NET Aspirants What is Sales Force Management: Sales Force Management refers to management of a team of people who sell products or services. It organizes and manages the team to increase sales and do a good job. Components of Sales Force Management: Sales Force Management consists of hiring the right people training them motivating them and managing them to achieve sales quotas along with providing feedback and help them improve. Significance of Sales Force Management: Sales Force Management is significant because it ensures a company produces more sales. It guarantees the team is performing to their highest potential and allows the company to succeed. Goals of Sales Force Management: The principal goals of Sales Force Management include generating revenue overall productivity of the sales team facilitating the sales team achieving their sales goals and building professional competency. Sales Force Management Illustration: An illustration of Sales Force Management is when a manager teaches their team to sell a new product in the new product sector of the company. They may even later monitor how they are doing and give them positive reinforcement when they are doing well and making progress towards sales objective goals. Extent of Sales Force Management: The extent of Sales Force Management is making plans to employ appropriate sales managers for the sales team to manage the sales people to work as a team. Responsibilities of Sales Force Management: The responsibilities of Sales Force Management responsibility should include hiring appropriate people and training motivating supervision. Responsibilities may also provide support to sell enough goods to meet sales quotas and sales experience in various aspects.

Sales Force Management Previous Year Questions

1. Which of the following best describes the primary role of Sales Force Management in an organization?
2. A) Developing new products and services to meet market demands.
3. B) Managing the recruitment training and performance of the sales team.
4. C) Overseeing the financial planning and budgeting of the organization.
5. D) Conducting market research to identify new business opportunities.

Ans. B) Managing the recruitment training and performance of the sales team.