In business administration, the sales process is the business process that follows the production process in companies and has the goal of selling products and services. Sales processes are subject to process management and take place as part of the sales strategy. The sales process includes individual sequences that begin with the formulation of a sales goal and end with sales controlling. In particular, the focus is on the acquisition of new customers, the choice of certain sales channels, the retention of regular customers or the acquisition of former customers. To design the sales process, sales competence is required. It is a constantly repetitive process sequence (selling cycle).
The literature often divides the sales process into the following phases:
- Process management develops the sales process and sales goals,
this is followed by a market analysis, - Establishment of an efficient communication policy,
market cultivation, - Customer management is used to get to know the customers,
- Identify and meet customer requirements,
- Sales success occurs with a target achievement rate of 100%.
The sales process begins operationally with a customer inquiry, followed by a quote. If this corresponds to the customer’s requirement, the customer places a sales order or purchase order. The incoming order is first proven by an order confirmation and then either processed by production or serviced by the warehouse. The outgoing goods process involves quality control before the delivery takes place. This will be followed by any after-sales service. The sales process is completed by any complaints or claims made by the customer. In this respect, complaint management and after-sales management are still part of the sales process.
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Meaning of Sales Process
In marketing, the sales process is part of the sales or distribution policy as part of the marketing mix. This refers to all activities and decisions on the way of a product or service from the provider (manufacturer) to the end consumer (customer). A distinction is made between acquisitive and physical (logistical) sales. Acquisitive sales includes the above-mentioned activities for new customer acquisition, customer retention and customer recovery, including the selection of sales channels. Physical or logistical distribution includes all activities and decisions regarding the efficient use of means of transport (rail, truck or plane), various warehousing systems and the choice of location for transshipment and delivery points.
In consumer goods marketing, contact with the customer and the establishment of a customer relationship takes place primarily via mass media such as the press or television, i.e. indirectly with the help of the instruments of communication policy. Personal sales play a subordinate role in this. On the other hand, in the marketing of capital goods and in the case of knowledge- and technology-intensive products and services that require explanation, the direct design of relationships and direct contact with the customer is of fundamental importance.
For example, it is practically impossible to market a gas turbine, a power plant, a helicopter, an initial public offering (service) or a CT scanner through mass media. Consequently, personal sales, including advice and customer support, as well as the establishment of a long-term, trusting business relationship, are the most important success factors in the marketing of capital and industrial goods as well as knowledge-intensive services. In capital goods marketing, the sales process begins much earlier than in consumer goods marketing, namely with the identification and selection of “attractive” customers. All these activities must be organized in an efficient process, the sales process. Sales therefore has a strong acquisitive function. However, this can also be observed in consumer goods marketing due to the decreasing importance of classic distributors.
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