Role Of Sales Management In Achieving Profit Objectives Of Firms
(A Case Study Of Emenite Limited)
Sales management plays a crucial role in driving the profitability of firms through effective planning, coordination, and execution of sales strategies. By aligning sales efforts with the overarching profit objectives, sales managers optimize revenue generation and cost control. Through market analysis, segmentation, and targeting, sales management identifies lucrative opportunities and tailors sales approaches to capitalize on them, thus maximizing sales revenue. Additionally, by fostering strong relationships with customers and addressing their needs effectively, sales management enhances customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth referrals, further bolstering profitability. Moreover, through rigorous sales performance monitoring and analysis, sales management identifies areas of improvement and implements corrective measures to enhance sales efficiency and reduce costs, ultimately contributing to the bottom line. By continuously adapting to market dynamics and evolving customer preferences, sales management ensures sustained profitability and competitiveness for firms in the dynamic business landscape.
This research work is a very crucial study for the entire Nigeria and to the EMENITE LIMITED in particular. The study was motivated by the necessity to ascertain the role of sales management in achieving profit objectives of firms in Nigeria especially Emenite Limited.
It is aimed at identifying the extent of satisfaction their customers derive in the management of their sales and to give recommendation which will lead to the solution to the problems if any exist.
Data collected from the company was analyzed using tables, frequencies, percentages and standard deviation where necessary to enable the reader make a long lasting satisfaction as a result of reading the manuscript.
Based to the hypothesis formulated, the researcher studied the senior and junior staff of the company who are relevant to the study.
Statistical formular were adopted to determine the sample size and also test the hypothesis formulated.
However, after a critical analysis of the data collected through questionnaire and oral interviews, it was discovered that sales management is the best method of positioning the company’s product in the market.
Title Page
Approval Page
Dedication
Acknowledgement
Abstract
Table Of Content
Chapter One
1.1 Introduction
1.2 Statement Of The Problems
1.3 Objectives Of The Study
1.4 Significant Of The Study
1.5 Scope Of The Study
1.6 Hypothesis
1.7 Definition Of The Terms
Chapter Two
2.0 Literature Review
2.1 Meaning Of Sales Management
2.2 The Role Of Sale Management To Organisation
2.3 Importance Of Sales Management To Organization
2.4 Management Of Sale Operations
2.5 Performance Evaluation Of Sale Forces
2.6 Brief History Of The Company/Profile
Chapter Three
3.1 Design Of The Study
3.2 Source Of Data Collection
3.3 Population Of The Study
3.4 Determination Of Sample Size And It’s Selection
3.5 Limitation Of The Study
Chapter Four
4.1 Presentation And Analysis Of Data
4.2 Hypothesis And It’s Test
Chapter Five
5.1 Summary, Recommendation AndConclusion
5.2 Summary Of Findings
5.3 Recommendations
5.4 Conclusion
Bibliography
Appendix
1.1 INTRODUCTION
Sales management involves the planning, hiring, directing and controlling of a company’s sales force.
Sales managers evaluate their firms competitive position, analyze markets and set goals, recruit, train and motivate sales people to reach these goals and continually strive to improve the quality and productivity of the selling effort for which they are responsible. EDEOGA P.N. (1997: 214).
According to Nwokoye (2000: 236) managing the sales effort of an organization encompasses all effort put together in employing the activities of some sales person (s) in order to achieve organizational targeted objectives. In fact, sales operations are so fundamental to the firms marketing environment that some firms – especially new ones may not even use the term “Marketing” to describe their operations and the top marketing man may have the title of sale managers.
In ADIRIKA E.O ETAL 91996:164) explains sales management as a personal selling jobs previously known as a persuasive environment which is triggered towards persuading customers to buy goods and services to a more integrated jobs of a complex activities in today’s larger marketing function. Its basic area is the tactical marketing which is more important in the area of offering goods and services and also things of value to the customers.
KOTTER AND ARMSTRONG (2001: 583) summarizing the sale management when he said, This only means the analysis, planning, implementation and contrive of sales force activities which encompasses designing sales free strategy and structure and recruiting, selecting, training, compensating, supervising and evaluating the firms sales people. Personal selling is usually regarded as the last bus stop in the total promotional journey. This is because the illiterate objective of most promotional efforta is the sales, but the actual consummation or fruition typically depends on effective selling.
Therefore, the organisations general well being and the totality of their objective set up is dependent on the ability and general management of their sales forces in order to be a profit oriented firm.
RESEARCH PROPOSAL
Definition :- Proposal is a way of winning somebody to enable the person carry out a research work. it is also on outline, methodology and procedure the researcher tends to implore in solving an unidentified research problem which will help the researcher in allowing a result.
To achieve a reasonable research work, eight (8) things are involved;-
1) RESEARCH TOPICS:- The role of sales management in achieving profit objective of firms in Nigeria. (A case study of Emenite Ltd)
2) OBJECTIVE OF THE STUDY:- This study is designed to find out the roles of sales management in achieving profit objectives putting a particular attention to Emenite Enugu.
3) THE SCOPE OF THE STUDY:- This study will be carried out basically in Enugu State since the case study is Emenite Roofing Company.
4) SOURCES OF DATA:- To achieve this research work, the following group of persons will be visited e.g students, lecturers and individuals that have used the product.
5) RESEARCH INSTRUMENT:- In order is collect the relevant data needed for this research work, the researcher will use oral interviews, questionnaires discussion outline etc.
6) METHOD OF DATA ANALYSIS:- This data will be analyzed using tables percentages, standard deviations etc.
7) PLANS FOR THE REVIEW OF RELATED LITERATURE:- To collect the relevant materials necessary for this research topic, the researcher will visit UNEC library, National library and IMT Enigi Library etc.
8) SIGNIFICANCE OF THE STUDY;- This research if carried out will enable EMENITE ROOFING COMPANY to improve in their services to their customer especially in the area of sale management.
1.2 STATEMENT OF THE PROBLEMS.
Firms in general have been suffering from many problems in an effort put together in order to effectively manage their sales task. As a result, some firms cannot make a reasonable turnover at the end of each financial season. Some of the notable problems includes;-
The time taken by the sales managers to design their selling task to each sale person is always long and will lead to so much delays in other hands loosing their market to the competitors.
The problem involved in the training the respective sales force to the organisation to enable them achieve what is expected of them by the organisation will be long in such that the company will take a longer days in achieving their sales volume.
The manger may at the process of trying to satisfy the longer market by positioning their sales loose to the challenger firms.
The decision of what product line a company wishes to sell will effect the early management of their sales task and invariably frustrates the efforts of the people to the marketing field.
Sale manager stands a risk of not covering the areas expected of them due to the problem associated with product which may need a proper definition to the consumers concerned.
The organization stands a chance of not having so much needed financial capacity to effectively positive their selling task which will result to a low profit margin to the organisations. The sales managers stands a chance of loosen to their competitors because of little understanding of the environment which he has to satisfy or manage.
1.3 OBJECTIVE OF THE STUDY.
The broad objectives of this research work is to seek the extent through which sales management can achieve a reasonable profit objective of firms in Nigeria especially EMENITE ROOFING COMPANY limited. In summary, the objective of the research are;-
• To determine the effectiveness of sales management in profit objectives of the firm.
• To evaluate the level of satisfaction due to be derived by the firm.
• To investigate the sales performance of the firm with a view of ascertaining its efficiently.
• To determine the impact of sales management in achieving profit objectives of some firms.
• To identify and evaluate the effort towards improving the sales effort of the firm and how the firm would become a profit oriented one.
• To ascertain the impact of sales management in firms marketing environment.
• And to identify the sales performance of the firm and their achievements.
• To also find out the marketing impact of sales force in the Emenite Roofing Industry.
1.4 SIGNIFICANCE OF THE STUDY.
The study is designed to be beneficial to the following group of persons;-
The study is designed in such that it will reeducate the Emenite roofing company on the basis of sales management, its effectiveness and the extent it will improve firms profit objectives, it will make them understand that sales management or management of sale forces is the starting point of firms profit objective.
It is also meant to educate other individuals involving in the same roofing materials in the country and Enugu State in particular about the benefit of managing their sales forces, the extent it will boom their sales efficiently and the general sales volume due to be derived.
It will also be a starting point to some students especially those in marketing department whisking to further this research study.
1.5 SCOPE OF THE STUDY.
The scope of this study covers only Enugu State Capital especially Emene in particular where we have EMENITE ROOFING COMPANY is the total environment where they operate in order to derive necessary information for the study.
1.6 FORMATION OF HYPOTHESIS.
HYPOTHESIS 1.
Ho: Sales management is not the only way of achieving firms profit objective
Hi; Saler management is the only way of achieving firms profit objective.
Hypothesis 2
Ho; Emenite Company is not doing well in the management of their sales task.
Hi;- Emenite company is doing well in the management of their sale task.
Hypothesis 3
Ho; The firms sales management is not efficient and effective in achieving profit objectives.
Hi; The firms sale management is efficient and effective in achieving profit objectives.
Hypothesis 4.
Ho: This firms sales management is not effective in terms of satisfying customers objectives & complaint.
Hi; The firms sale management is effective in terms of satisfying customers objective and complaint
1.7 DEFINITION OF THE TERMS.
The language used in the above chapter were all familiar and are basically marketing terms, therefore there is no term worthy of definition.
Role Of Sales Management In Achieving Profit Objectives Of Firms:
Sales management plays a crucial role in achieving the profit objectives of firms. Profitability is a fundamental goal for most businesses, and effective sales management can significantly impact an organization’s ability to generate revenue and control costs, ultimately leading to increased profits. Here are some key ways in which sales management contributes to achieving profit objectives:
- Setting Sales Targets: Sales managers are responsible for setting realistic and achievable sales targets. These targets should align with the company’s overall profit objectives. By establishing clear and measurable goals, sales management provides a roadmap for the sales team to follow.
- Sales Forecasting: Accurate sales forecasting is essential for resource allocation, inventory management, and cost control. Sales managers use historical data, market analysis, and input from the sales team to forecast sales accurately. This helps in avoiding overstocking or understocking inventory, which can impact profitability.
- Price Strategy: Sales management is involved in pricing decisions. They need to strike a balance between maximizing revenue and ensuring that prices are competitive in the market. Pricing strategy directly affects profit margins, so it’s crucial to get it right.
- Sales Team Performance: Sales managers are responsible for hiring, training, and motivating the sales team. A well-trained and motivated sales force is more likely to meet or exceed sales targets. Effective salespeople can maximize revenue and contribute directly to profit.
- Customer Relationship Management: Building and maintaining strong customer relationships can lead to repeat business and customer loyalty. Sales management plays a role in defining how the sales team interacts with customers and ensuring a high level of customer satisfaction. Satisfied customers are more likely to make repeat purchases, leading to increased revenue and profits.
- Cost Control: Sales management can influence cost control in several ways. By optimizing sales processes and efficiency, they can reduce the cost of acquiring and servicing customers. They also play a role in managing sales-related expenses such as travel, marketing, and commissions.
- Market Expansion and Product Development: Sales managers often have insights into market trends and customer preferences. They can provide valuable input into product development and market expansion strategies, helping the company capture new revenue streams and increase profitability.
- Sales Analytics: Sales management relies on data and analytics to monitor sales performance. They can identify trends, opportunities, and areas of improvement. Data-driven decision-making can lead to more effective strategies for maximizing profit.
- Incentive Programs: Sales managers design and implement incentive programs for the sales team. Well-structured incentive programs can motivate salespeople to exceed targets and increase their efforts, directly impacting revenue and profit.
- Adaptation to Market Changes: Sales management is responsible for adapting sales strategies and tactics in response to changing market conditions. This flexibility is crucial for staying competitive and maintaining profitability in a dynamic business environment.
In summary, effective sales management is integral to achieving the profit objectives of firms. It involves setting targets, optimizing processes, controlling costs, and maximizing revenue through strategic planning, team management, and customer relationships. When sales management aligns its efforts with the overall profit goals of the company, it can significantly contribute to the organization’s success.