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What Is the Definition of Sales?

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Most companies rely on a skilled sales team to help generate revenue and drive success. Understanding the meaning of sales in business is an important first step in creating, hiring and training your sales team.

In this guide, you’ll learn what sales is, the different types of sales and what positions you may want to add to your organization.

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What is sales?

Sales refers to exchanging a product, commodity, service or delivery for money. It involves assisting prospective customers by listening to and understanding their needs to help them find what they’re looking for. Rather than persuading someone to purchase something, selling often focuses on meeting the customer’s needs.

What are the different types of sales?

When people discuss the meaning of sales, you might hear them mention different types, such as:

  • Business-to-business (B2B) sales: Involves selling products and services to other businesses
  • Business-to-consumer (B2C) sales: When a company sells to individual customers rather than businesses
  • Direct-to-consumer (D2C) sales: When the manufacturer sells a product directly to customers
  • Wholesale sales: When a business buys products from a manufacturer or wholesale company and sells them to customers at a profit
  • Retail sales: When a business sells products made by another company to customers
  • Inside sales: When salespeople make sales in person, by phone, via email and in other ways while remaining in the workplace
  • Outside sales: When salespeople go to customers’ locations to make sales

Businesses can also use different types of sales. For example, you may employ inside B2C salespeople for direct sales and an outside sales team for B2B sales.

What are the types of selling styles?

Salespeople can also use various approaches when selling products and services. Some common styles of sales in business include:

Value-based sales

With this approach, sales representatives try to convince customers how they could benefit from a company’s products or services. In some cases, value-based sellers entice customers with a limited-time sale or offering.

Transactional sales

A transactional sale is a simple, short-term exchange that fulfills a customer’s needs. In many cases, the customer already knows what they want to purchase. Rather than focusing on a customer’s needs, the salesperson focuses on making a quick sale.

Social sales

With this selling style, sales professionals target prospective customers through social media. Some techniques for social sales include:

  • Holding flash sales on Instagram
  • Selling via live video streams on YouTube Live and Facebook
  • Posting items for sale on the Facebook or TikTok marketplaces
  • Running ads that direct shoppers to e-commerce websites

Needs-oriented sales

This technique involves asking questions to understand the customer’s needs and recommending products and services. A salesperson may ask the following questions:

  • How satisfied are you with your [PRODUCT OR SERVICE NAME], on a scale of one to 10?
  • If you could change one thing about your current [PRODUCT OR SERVICE NAME], what would it be?
  • What do you like best about your current [PRODUCT OR SERVICE NAME]?
  • What’s important to you when choosing a [PRODUCT OR SERVICE NAME]?
  • If you could design the perfect [PRODUCT OR SERVICE NAME], what would it look like?
  • What’s your current budget?

What are some common sales positions?

As an employer, it’s important to know the different types of sales roles to determine which ones could benefit your business. Here are some roles to consider when hiring:

Sales associates

A B2C-oriented position, sales associates encourage customers to purchase a product directly. When employed by brick-and-mortar retail stores, they may have additional duties, such as organizing the sales floor and taking inventory.

Sales representatives

Sales representatives sell products or services to prospective businesses, organizations and government agencies. Depending on the position, they may focus on inside sales, outside sales or both.

Sales consultants

Typically involved in outside B2B sales, sales consultants assess customer needs and develop customized proposals. They may make formal presentations and answer follow-up questions during the sales process.

Telemarketers

Telemarketers sell products and services by phone. In some cases, they make cold calls to businesses or consumers. They may also contact potential customers who make sales inquiries through social media, email or the company’s website.

Sales engineers

Sales engineers typically sell scientific and technical products and services to customers. As a result, they may explain complex technologies in simple terms. Sales engineers may also demonstrate to prospective and new customers how to use the products or services.

Sales support specialists

Sales support specialists assist the sales team by performing administrative tasks, such as processing orders and conducting research. They may also handle customer requests and complaints.

Sales coordinators

Sales coordinators generally supervise teams of outside sales representatives. They may assign territories, set goals and schedule sales calls.

Sales managers

Sales managers oversee a team of salespeople within a company or organization. They may use their leadership skills to set goals, support and mentor the sales team.

Sales directors

Sales directors supervise and manage a group of sales managers. They ensure all company sales goals are met and are often a part of an organization’s senior management team.

What are some important skills in sales?

To make the best hiring decision, consider the skills that can help candidates succeed in sales roles, including:

  • Communication skills: Sales professionals must communicate clearly, verbally and in writing, to effectively sell to customers and collaborate with their teams.
  • Listening skills: By using active listening during customer interactions, sales professionals can leverage subtle buying signals to make sales.
  • Negotiation skills: In some cases, sales professionals may need to reach an agreed-upon selling price or terms to make a sale.
  • Problem-solving skills: When a customer is concerned about price, a salesperson could suggest a discounted bundle or an alternative product that fits the customer’s budget while still meeting their needs.
  • Interpersonal skills: Interacting positively with potential customers helps sales professionals build relationships that may lead to sales.
  • Interview skills: Asking questions is often an important step in making a sale. For example, a computer software salesperson may ask how many users a company has, what software they use and the technical specifications of their current computers.
  • Computer skills: Depending on the position, sales professionals may use point-of-sale (POS) systems, customer relationship management (CRM), email, spreadsheets and presentation software.
  • Arithmetic skills: Sales professionals generally need basic math skills to calculate discounts, add up total sales or provide change.

FAQs about sales

What is the process of selling?

The selling process is a set of steps sales professionals take to sell something. It consists of the following steps: prospect, prepare, approach, presentation, overcome objections, close the sale and follow up.

What is the difference between marketing and sales in business?

Sales and marketing are two key components of an organization’s success, but they’re separate departments. Sales refers to providing a good or service in exchange for money. Marketing is the process of promoting a company and its products or services. Companies often utilize social media, websites, television, radio advertisements and other methods for marketing.

What is the difference between the meaning of sales and the meaning of sale?

Sales and sale are related terms, but they have different meanings. “Sales” refers to providing something to a customer in exchange for money. A “sale” is the transaction that occurs when selling. It may also refer to a business’ promotional discount on a product or service.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.