A sales funnel is a marketing concept that illustrates the journey potential customers go through before making a purchase. It typically consists of several stages, starting with awareness, where people first learn about a product or service, followed by interest, consideration, and finally, the decision to buy. Each stage narrows down the number of prospects, hence the term "funnel." Businesses use sales funnels to guide their marketing strategies and improve conversion rates. By understanding how customers move through the funnel, companies can tailor their messaging and offers to meet the needs of their audience, ultimately increasing sales and customer satisfaction.