In sales management, effective planning of the sales function begins with which of the following activities?

Introduction / Context:
Sales management involves planning, organizing, directing and controlling an organisation's sales efforts. The planning stage lays the foundation for all subsequent sales activities. This question asks you to identify the first logical step in effective sales management from among several important tasks like compensation design, organizational structure and staffing.

Given Data / Assumptions:
- We are concerned with the starting point of effective sales management.- Several possible planning activities are listed as options.- The sales function must be aligned with the overall business objectives.- We need to determine which action logically comes first in the planning sequence.

Concept / Approach:
Good management begins with clear objectives. In sales, these are expressed as sales goals or targets in terms of revenue, units, market share or profitability. Once goals are defined, managers can design a structure, decide how many salespeople are needed and create a suitable compensation plan to motivate them. If you skip setting goals, you cannot judge whether your structure, size or compensation are appropriate. Therefore, determining sales goals is the starting point.

Step-by-Step Solution:
Step 1: Consider the logic of planning. Objectives should be set before designing supporting systems.Step 2: In sales, objectives take the form of specific, measurable sales goals such as annual revenue targets or market share levels.Step 3: Only after these goals are fixed can you decide how many territories, what type of sales structure and how many representatives are needed.Step 4: Similarly, compensation plans must be designed to encourage behaviours that achieve the defined goals.Step 5: Therefore, among the options, determining sales goals clearly comes first and is the correct answer.

Verification / Alternative check:
Think of a practical example. If a company decides it wants to double its sales in a particular region, that target will influence how many salespeople it hires, whether it uses key account managers or geographic territories, and what incentives it offers. Without the goal, these decisions would be random. Textbooks on sales management emphasise setting sales objectives as the initial step before designing structure, size and compensation. This confirms that determining sales goals is the starting activity.

Why Other Options Are Wrong:
Designing a compensation plan: Important, but it should be based on sales goals and strategy, not created before goals are set.Determining the most efficient structure for the sales force: This decision depends on what goals the sales organisation is trying to achieve in terms of coverage and focus.Specifying the sales force size: The required number of salespeople is derived from goals, territories and workload analysis, so it cannot logically be first.

Common Pitfalls:
Some students may jump straight to concrete elements like how many people to hire or how to pay them because those seem more visible. Others might think that structure always comes first. However, without clear goals, you cannot evaluate whether your structure or compensation plans are effective. To avoid this trap, always remember the classic management sequence: objectives, strategies, structures, staffing and then control systems.

Final Answer:
Effective sales management begins with determining sales goals, which then guide later decisions on structure, staffing and compensation.