Sales management is the link between a potential client and a deal that brings a profit to your company. However, due to the weak sales of most companies, there was an urgent need for a permanent search for an angel investor or the appropriate finance company.
You do not need to always search for an investor, but you do need to understand the mechanisms of sales management in an effective way that returns you profits.
Managing sales and understanding all its merits: its concept, types, the importance of its presence in your organization, and its role in enhancing profits
After reading and understanding this article, you will never suffer with the subject of sales.
What is the sales management?
Sales management is a process that promotes profits, increases revenues, grows an enterprise, and develops its sales volume.
The sales management process is carried out according to a system that analyzes deals and understands where the error is to reduce the percentage of unclosed deals.
Sales management is not hiring a sales representative and entrusting the sales function to him; it is a system that helps him perform his work well.
One of the best systems you can rely on to manage sales and workflow for your company is the Qoyod cloud accounting software program.
We invite you to learn about the advantages of Qoyod in the field of sales management and how it can help you adjust sales management. Read them here.
Now it is necessary to understand the types of sales.
Types of sales
Enterprises always suffer with sales due to following the same system as if all sales are the same.
Sales have many different types of methodologies and methods of implementation. Let’s review them together:
1. Sale through the distribution channel
The distribution channel is the route or place where the goods can be sold.
This kind of sale deals with supermarkets, wholesalers, or even retailers.
All these are distribution channels that help sell the goods to the final consumer.
2. Direct sale
In this type of sale, the enterprise sells its products through its own outlets, including the plant, branches, agents, and even the website.
Selling here is done directly to the consumer, unlike selling through the distribution channel, which includes intermediaries such as wholesalers or supermarkets, as we have mentioned.
3. External sales
This type is very common in our time because of the openness of the world to each other.
Although this type is old but now easy, the enterprise exports its products to an external establishment.
The constant fact is that sales help increase profits, but how?
How does the sales department contribute to increasing your profits?
The functions performed periodically by the sales department contribute to increasing the profits of the facility, most notably:
- Careful follow-up of new job opportunities that knock on the doors of the facility.
- Persuasive negotiation with potential customers
- Maintain relationships with both old and new customers.
These three skills are not easy, as there are a number of procedures that must be done properly.
Also, do not forget that the sales department is the first interface with the facility; this department plays a central role in enhancing the reputation of the facility with potential customers as well as caring about profits.
But it’s important that your sales team be equipped with strong knowledge of your products and services to leave the strongest initial impressions on potential customers.
The customer may not buy on the first visit, but the impression he gets of you plays an important role in deciding whether or not to deal with you.
The sales department is a strong asset of your business and must be carefully managed so you will see good results in increasing profits.
One of the strange ironies that always occurs is the confusion between marketing and sales.
What is the difference between marketing and sales?
The marketing department aims to increase demand for the product or service provided by the enterprise according to the marketing strategy it follows.
A marketing strategy is formed by the well-known marketing mix: product, advertising, market, and distribution.
While the sales department is concerned with converting the orders brought in by the marketing department and translating them into real sales,
The sales team is keen to interact directly with the potential customer in order to understand their needs and then convince them of what is appropriate for your facility.
The marketing and sales departments are among the most important departments in any enterprise, and you may find the marketing and sales teams working in one department in some small enterprises while both departments are separate in others.
Contribution of the sales department to product development
The sales department has a lot of important data about the needs, desires, and pain points of customers because it always deals with them, and this data is valuable material for the product development team.
Products developed on personal assumptions will never see the light of day, while those based on real data often succeed.
And you don’t need to develop new products every time; you need to develop existing ones. Do you remember the tragic story of Nokia?
Nokia was a pioneer in her field, but it failed to keep pace with the times because it didn’t develop its products as its clients wanted.
Again, the data that the sales team has is of great value to the product development team because it helps them design products that may be successful in the market.
In addition, the Sales Section can provide input on pricing, packaging, and other factors that can affect product success.
After reading this article, you have certainly fully realized the importance of the sales department.
It is a critical part of any enterprise and has a direct and explicit impact on both profits and sales.
However, if the enterprise is in debt or does not have clear answers to the volume of its sales growth, the work of the sales team cannot be straightened out.
So we strongly advise you to invest in a cloud accounting program that could help your sales team monitor the volume of financial opportunities on the one hand and, on the other hand, provide you with the state of your financial establishment.