Sales management entails numerous objectives which are executed by sales managers. There are mainly three such objectives
- Sales Volume
- Contribution to profits
- Continuous Growth
The sales executives in this case are the ones who help implement these objectives. However it is the top management who has to outline the strategies to achieve these objectives of sales management. The top management should provide products which are socially responsible and are marketed in a manner which meets customers expectations and does not break it. Thus sales management involves a strong interaction between Sales, marketing and Top management.
Sales Management and financial results
Financial Results are another objective of sales management and are closely related and therefore sales management has financial implications as well.
Sales – Cost of Sales = Gross Profit
Gross Margin – Expenses = Net profit.
Thus the variation in Sales will directly affect the Net profit of a company. Hence maintaining and managing sales is important to keep the product / service / organization financially viable.
The Objectives of sales are therefore decided on the basis of where the organization stands and where it wants to reach. It is a collaborated effort from the top management along with the marketing managers and sales managers to provide with a targeted estimate.
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1 . How to increase sales volume?
2 . As a sales manager how to contribution to profit?
3 . As a sales manager how to continuing growth?
1) Increasing sales volume depends a lot on your promotional activities as well as optimizing your sales process by having the right PEOPLE in sales. The product quality to matters. Thus increasing sales volume is pretty subjective.
Thus keep a watch on profitability and growth will follow.
2) Contribution to profit can be increased if you cut down on discounts, take care of logistics and other expenses as well as overall profitability. In essence – Break down the expenses and sell with good margin.
3) Your 2nd question answers your third. Continuous growth can be obtained only by continuous profits
I need some notes on the topic Sales Research and sales forecasting methods
very good material.. thank you