Sales are activities connected with the procurement of products or goods sold at a certain specified time frame. A sale can be either direct or indirect. The direct sale of a product to a buyer is considered to be a direct sale. It takes place when the buyer and seller come into an agreement to sell a particular product to each other. The indirect sale of a product through a chain of indirectly supplying sellers is also a direct sale. The types of sales may vary from one business to another.
In addition, marketing departments conduct other types of sales like advertising sales, after-sales sales, promotional sales, return of investment sales and research and development sales. Marketing teams in organizations devise strategies to increase sales by generating leads, reducing operating costs and boosting profit margins. The process of developing new sales opportunities and maximizing existing ones is known as marketing. Sales managers create marketing plans for their team to follow.
Customer service sales are concerned with customer satisfaction, which is achieved by following a plan to improve customer satisfaction. The activities in customer service include billing and collecting accounts receivable, insurance claims processing, collection and delivery of payment and services as needed. This is done through a series of contacts between the sales and marketing department. The CRM or Customer Relationship Management software is used for managing customer data.
In the case of unsuccessful sales, the sales team may face difficulties in understanding what contributed to the failure. To eliminate confusion, training programs are conducted to train individuals on various aspects of the business. Sales teams also learn how to evaluate their own performance. They try to become more consistent, honest and proactive in addressing customer concerns. A successful business requires consistent effort from the staff and the ability to reach potential customers.
Another common sales practice is setting sales goals. Salespeople set attainable, measurable goals that will guide them in the development of individual sales skills. These goals establish the benchmark against which progress can be measured against. Setting a realistic and achievable goal increases the motivation of the salesperson as well as the willingness of the sales team to work together towards reaching these goals.
It is important to set clear, concise sales objectives that have clearly defined instructions for both the management and sales teams to understand and act upon. Achieving the sales objectives is a long-term project. Having defined objectives makes it easier to monitor progress and make adjustments when necessary. Objectives are based on statistical data and knowledge about the target market. When the objective is too vague, there is a higher risk of missing the target and creating a negative impact on overall revenue.