Importance of Sales ManagementSales Management plays a very Important role in the success of business, because sale is the single most important variable in appraising the performance of the company. Has three fundamental objectives. These three objectives are closely inter related. These are maximization growth. In achieving these three major goals, the sales management has a key role to play. Sales maximization. It is not an easy task to get sales maximization.
Sales Management helps the business in fulfill the objective of sales management. In the process of delegation, the top management fixes the sales volume more specifically on the basis of market, territory, customer or on any other basis which it want to achieve in a specific period.
The sales executives, during the planning phase, precedes potential, capabilities of sales force and the middlemen and the like. Once these goals are finalized, it is up to sales executives to guide and lead the sales personnel and middlemen to implement the selling plans and achieve the goals so finalized. Profit maximization.
From the company point of view, profit maximization is the general objective of sales Management. Top management is accountable for maximum profit. But regarding profit maximization, it delegates powers and function to marketing management, which then delegates it, to sales management with sufficient authority to achieve this objective. Growth and Development. Sales management is influential in the charting course of future operations.
It provides higher management with informed estimates. It provides facts for making Marketing Decisions and for setting sales and goals. It is on sales management’s appraisal of market opportunities that targets are set for sales volume, gross margin, and net profit in units of products and in rupees, with benchmarks of growth projected for sales and profits at specific future dates.
Achievement of these targets are reached depending upon the performance of sales and other marketing personnel. Strong planning. A plan is a blueprint for future action. The success of an action depends on suitable planning. The sales management formulates concrete, useful and effective plans, including objectives, forecasting, budgeting strategy, programming and controlling. The plans should be specific and property classified in relation to time, objectives and budget.
Formation of Organization. The sales plan And its projections cannot be Realized unless they move ahead with sales organization. The term organization has two distinct meanings. Advise to Top Management.
Planning of sales activities is not the responsibility of sales management. Sales management is accountable for the actual happening in it’s department which are to be reported to the top management. Sales management advises on opening and closing of branches. Opening of new branches involve the detailed study and sanction for branch location, layout, staff pattern and so on including the strength and weakness of competitors. Important for sales force management. Sales management is very important for sale force management.
Sales force management is a specialized type of personnel management. Optimum Relationship. The company maximizes its net profits if it obtains an optimum relationship. Both in its planning and operating roles, sales management aims for an optimum relationship among the three factors it can directly effect: sales, gross margin and expenses.
Sales Management works with the in charges of production and advertising to assure that sales volume is sufficient to attain targeted cost of sales the fourth factor.
ADVERTISEMENTS:Management: Definitions, Concept, Objectives and Scope!The term ‘management’ has been used in different senses. Sometimes it refers to the process of planning, organizing, staffing, directing, coordinating and controlling, at other times it is used to describe it as a function of managing people. It is also referred to as a body of knowledge, a practice and discipline. There are some who describe management as a technique of leadership and decision-making while some others have analyzed management as an economic resource, a factor of production or a system of authority. Definitions:Various definitions of management are discussed as follows: (A) Art of Getting Things Done. ADVERTISEMENTS:“Management is the art of getting things done through and with people in formally organized groups.” Koontz has emphasized that management is getting the work done with the co-operation of people working in the organization.J.D.
Mooney and A.C. Railey:“Management is the art of directing and inspiring people.” Management not only directs but motivates people in the organization for getting their best for obtaining objectives.As per the above mentioned definitions, management is the art of getting things done through people who may be managers or non-managers. At the level of chief executive, the work is got done through functional managers, at middle level the things are implemented through supervisors and at lower level of management through workers. Human and technical skills play an important role for getting things done. These definitions represent the traditional view point of management while workers are treated as a factor of production only. They are paid wages for doing their work.
ADVERTISEMENTS:Management is much more than just getting the things done through others. Management may be a technique for getting things done through others by satisfying their needs and helping them grow. Harold Koontz emphasized the attainment of business goals with the co-operation of people working in the organization. (B) Management as a Process:Some authors view management as a process because it involves a number of functions.
Management refers to all Involves different a manager does. Various functions which are performed by managers to make the efficient use of the available material and human resources so as to achieve the desired objectives are summed up as management. Thus, the functions of planning, organizing, staffing, directing, co-coordinating and controlling fall under the process of management.Henry Fayol:“To manage is to forecast and plan, to organize, to command, to co-ordinate, and to control.” Fayol described management as a process of five functions such as planning, organizing, commanding, coordinating and controlling. Modern authors, however, do not view co-ordination as a separate function of management. ADVERTISEMENTS:George R.
Pdf Scope Management
Terry:“Management is a distinct process consisting of activities of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.” Though Terry has described four functions to be a part of management process but managerial functions are classified into five categories.James L. Lundy:“Management is principally the task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective.” Lundy has also specified some functions which management has to perform for achieving organizational goals.Louis Allen:“Management is what a manager does.” This is a broad definition linking all the activities of the manager to the concept of management. Whatever work is undertaken by a manager forms a part of management. Above definitions associate management with the functions undertaken for running a business. There may be a difference as to what functions are required to be taken up by the management but functions such as planning, organizing, staffing, directing and controlling form the process of management.These functions are continuously taken up.
On the completion of last function, the first function starts again. The functions of management are interdependent and interlinked. In order to achieve the objectives, a manager has to perform various functions simultaneously. (C) Management as a Discipline:Sometimes the term ‘management’ is used to connote neither the activity nor the personnel who performs it, but as a body of knowledge, a practice and a discipline. In this sense, management refers to the principles and practices of management as a subject of study. Management is taught as a specialized branch of knowledge in educational institutions.
It has drawn heavily from Psychology, Sociology, and Anthropology etc. A person acquiring degree or diploma in management can try for a managerial job.Management is treated both as an art as well as science.
An art is often regarded as the systematic application of skill or knowledge in effecting accomplishment of results. In management one has to use personal skill and knowledge in solving many complicated problems to achieve enterprise objectives. Management is regarded as a science because it has developed certain principles, generalizations and techniques which have more or less universal application. So management is a study of a specific discipline.
When one says that a particular person is in management stream then it is assumed that he is studying a particular field of learning. (D) Art and Science of Decision-Making and Leadership:Decision-making and guiding others is considered an important element of management. A manager has to take various decisions every day for properly running an enterprise.Donald J. Clough:“Management is the art and science of decision-making and leadership.” The author views management as an art and science of decision-making. The quality of decisions determines the performance of a manager.
He has also to provide leadership to subordinates for motivating them to undertake their work.Rose Moore:“Management means decision-making.” Decision-making cannot be the only function of management even though it is very important. ADVERTISEMENTS:Some authors are of the view that the science of management is used to increase productivity of the enterprise.John F.
Mee:“Management may be defined as the art of securing maximum prosperity with a minimum of effort so as to secure maximum prosperity and happiness for both employees and employer and give public the best possible service.”F.W. Taylor:“Management is the art of knowing what you want to do in the best and cheapest way.”Management is the art of securing maximum productivity at the minimum of cost so that it helps employers, employees and public in general. Public is also a stake holder in business, it should also benefit from good performance of business. (F) Integration of Efforts:Management makes use of human and physical resources for the benefit of the enterprise.Keith and Gubellini:“Management is the force that factors integrates men and physical plant into an effective operating unit.” Management integrates physical and human resources for operating the manufacturing process in a better way.Barry M. Richman:“Management entails the coordination of human and material resources towards the achievement of organizational objectives as well as the organization of the productive functions essential for achieving stated or accepted economic goals.” Management alms to co-ordinate and integrate various resources in the organization for achieving enterprise objectives.
The thrust of above mentioned definitions is that integration and co-ordination of various factors of production is essential for running a business properly and this function is undertaken by management. (G) Management as a Group of Managers:The term management is frequently used to denote a Refers to managerial group of managerial personnel.
When one says that personnel management of such and such company is efficient, he refers to the group of persons who are looking after the working of the enterprise. These persons individually are called managers.
“Management is the body or group of people which performs certain managerial functions for the accomplishment of pre-determined goals.”All managers perform managerial functions of planning, organizing, staffing, directing and controlling. These persons collectively arc called ‘body of managerial personnel.’ In actual practice the term ‘management’ is used to denote top management of the organization. Top management is mainly concerned with determination of objectives, strategic planning, policy formulation and overall control of the organization. Concept of Management:Objectives of Management:The primary objective of management is to run the enterprise smoothly.
The profit earning objective of a business is also to be kept in mind while undertaking various functions.Following are the broad objectives of management: 1. Proper Utilization of Resources:The main objective of management is to use various resources of the enterprise in a most economic way. The proper use of men, materials, machines and money will help a business to earn sufficient profits to satisfy various interests.
The proprietors will want more returns on their investments while employees, customers and public will expect a fair deal from the management. All these interests will be satisfied only when physical resources of the business are properly utilized. Improving Performance:Management should aim at improving the performance of each and every factor of production. The environment should be so congenial that workers are able to give their maximum to the enterprise. The fixing of objectives of various factors of production will help them in improving their performance. Mobilizing Best Talent:The management should try to employ persons in various fields so that better results are possible.
The employment of specialists in various fields will be increasing the efficiency of various factors of production. There should be a proper environment which should encourage good persons to join the enterprise. The better pay scales, proper amenities, future growth potentialities will attract more people in joining a concern.
Planning for Future:Another important objective of management is to prepare plans. No management should feel satisfied with today’s work if it has not thought of tomorrow.
Future plans should take into consideration what is to be done next. Future performance will depend upon present planning. So, planning for future is essential to help the concern. Scope or Branches of Management:Management is an all pervasive function since it is required in all types of organized endeavour.
Thus, its scope is very large.The following activities are covered under the scope of management:(i) Planning,(ii) Organization(iii) Staffing.(iv) Directing,(v) Coordinating, and(vi) Controlling.The operational aspects of business management, called the branches of management, are as follows:1. Production Management2. Marketing Management3. Financial Management.4.
Personnel Management and5. Office Management. Production Management:Production means creation of utilities. This creation of utilities takes place when raw materials are converted into finished products.