What are the 5 functions of sales management


Sales management is a process of hiring, training, and deploying a sales force to achieve organizational objectives. In order to be successful, sales managers must perform five key functions. In this article, we'll take a closer look at each of these functions and how they contribute to a successful sales operation.


The 5 primary functions of sales management are:

1. Planning and goal setting:


Sales managers develop plans and set targets for their teams. This involves forecasting sales, analyzing data, and developing strategies to improve performance. Sales management is all about achieving targets and goals. To be successful, sales managers need to have a clear plan and set themselves realistic goals. Without a plan, it can be difficult to track progress and identify areas where improvement is needed.

Goal setting is a critical part of a sales manager's job. They must be able to identify realistic targets and develop plans to achieve them. This includes setting quotas for each salesperson and tracking progress towards meeting those targets.


2. Recruitment and training:


Sales managers recruiting new sales representatives and provide training to them. They also identify skills gaps within the team and plan for training accordingly. The first step in sales management is recruiting the right salespeople. This can be a challenge, as you need to find individuals who are not only good at selling, but who also fit well with your company culture. Once you have a pool of qualified candidates, it is important to provide them with comprehensive training. This should cover both the product or service they will be selling as well as best practices for salesmanship.

3. Performance monitoring:


Sales managers regularly track the performance of their team against targets. They identify areas of improvement and work with individual representatives to help them improve their performance. As a sales manager, it's important to monitor the performance of your team members in order to identify problem areas and address them accordingly. There are a number of ways to do this, but some of the most effective methods include tracking metrics such as sales volume, conversion rate, and average deal size. Additionally, regular one-on-one meetings with team members can give you a better idea of how they're performing and help you identify any areas that need improvement.


If you're not already monitoring the performance of your sales team, now is the time to start. By doing so, you can ensure that your team is meeting its goals and objectives, and making the most of its potential.

4. Incentives and rewards:


Sales managers develop incentive programs to motivate their team. These programs may include financial incentives, such as commissions, as well as non-financial rewards, such as recognition or prizes. Incentives and rewards play an important role in sales management. By offering incentives and rewards, managers can motivate sales staff to achieve better results. Incentives and rewards can also help to create a sense of competition among sales staff and encourage them to work harder. When designing a sales incentive program, it is important to consider the needs of the sales staff and the company's overall objectives.


Whatever type of incentive or reward you decide on, make sure it is something that will genuinely motivate your sales team. The last thing you want is for your incentives and rewards program to backfire and end up demotivating your salespeople!

5. Reporting:


Sales managers prepare reports on their team's performance for upper management. These reports typically include information on sales volume, revenue, target attainment, and other key metrics.


There are a variety of reports that can be used in sales management reporting. The most common include:

=> Lead reports: These track the progress of leads through the sales pipeline and can be used to identify any bottlenecks or areas of improvement.

=> Revenue reports: These show how much revenue has been generated by the sales team and can be used to track progress towards targets.

Activity reports: These track the number and types of activities undertaken by salespeople (e.g. calls made, meetings attended) and can be used to identify areas where training or support may be needed.


Sales management reporting is an important tool for ensuring the success of an organization's sales efforts. By using data to make informed decisions, managers can ensure that resources are being used efficiently and effectively to achieve desired results.


When these functions are executed successfully, they can result in increased sales, higher employee productivity, and improved customer satisfaction. If you're looking to improve your organization's sales performance, start by ensuring that your sales management team is functioning effectively.


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