What is Sales Administration? Definition of Sales Administration, Sales Administration Meaning and Concept
The sales administration is all the procedures, decisions, actions of supervision and control, auditing and evaluation that take place in the company and that are related to the sales operations.
The primary objective of sales administration is to properly manage processes with customers and suppliers. In general, everything that has to do with sales operations.
But why do we want to manage sales? To have information is very important, not only to offer a better service to customers, but also to get better prices from suppliers.
Companies constantly have setbacks with suppliers, products that are returned because the customer does not want them and others that have been broken along the way. It is, therefore, of the utmost importance to be in control of everything that is sold, how it arrives, when it is sold and where it is stored.
This allows companies to make better decisions, have everything registered and optimize their resources. Computer programs help in this task. When computers did not yet exist, everything had to be written down by hand (whoever did it). However, now we can have all the information at the click of a button.
Sales management functions
Managing sales is not only recording everything that has to do with a sale, but it goes beyond that. It offers the possibility for companies to adapt to market trends, develop new, more useful products or even invest the necessary in advertising. The main functions of sales management are detailed below:
- Organize the sales team: Director of sales, salespeople and salespeople. There may be many more positions depending on the size of the company, but these three are the most important.
- Plan the sales strategy: They must collaborate hand in hand with the marketing team. It is not just about doing good publicity or transmitting a good experience to the consumer or end customer. A sales strategy goes much further and takes into account all the possible factors that have to do with the sale.
- Cost benefit analysis: Estimates of benefits and costs must be taken into account. See if planning is progressing according to plan, see why it deviates, and what to do to fix it. Identify, therefore, if the error is within the organization or is due to causes external to it.
- Market research: Again, you must work hand in hand with the marketing team. The conclusions of the studies of both teams may be different. Success lies in putting common ground and drawing conclusions that benefit the company's sales.
- Customer and supplier relationships: Having good and sometimes long-lasting relationships with customers and suppliers is essential. With customers, on the one hand, because they are the ones who buy the products or acquire a service. And, at the same time, with suppliers. If suppliers do not meet the needs of the company in a timely manner, the sales process could be affected.
The sales management process
The sales management of a company comprises three fundamental decision and action processes:
- Plan: We must answer different questions. What are we going to sell? How are we going to do it? Where? To whom? And many more questions. The important thing is to have a plan before moving on to the next step. To put it in some way, the company must chart a route, it will not get far if it remains adrift. Even for those unplanned cases, you must generate an action plan.
- Execute: Once planned, it's time to execute, meet deadlines and budgets. If the plan is fulfilled, the chances of success for the company increase.
- Evaluate and control: It is about measuring, as far as possible, that everything is being fulfilled and that it is being done well. Evaluating staff and planning is part of the third step in the process.
This process, which is continuous, should serve to improve what is not right and to enhance what gives good results.
Why is sales management useful in the company?
Sales management is essential for the vast majority of companies. It is not enough to develop a very good product that is of high quality and even cheap. This is not enough. If the sales process fails, all effort will be wasted.
Here are some details that sales management is useful for.
- Keeps buyers and sellers up to date.
- Facilitates the follow-up and closing of sales.
- Allows you to evaluate the sales team.
- Evaluate the sales process, detecting bottlenecks that hinder the sales process.