Organizing the Sales force

Views:
 
Category: Education
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

UNIT 2 Organizing the Sales Force, Designing the Structure and Size of Sales Force :

UNIT 2 Organizing the Sales Force, Designing the Structure and Size of Sales Force

Designing the Sales Force:

Designing the Sales Force Types of Sales Representatives Deliverer Order taker Missionary Technician Demand creator Solution vendor

Sales organization:

Sales organization •An organization of individuals either working together for the marketing of products and services manufactured by an enterprise or for products that are procured by the firm for the purpose of reselling •A sales organization defines duties, roles, rights, and responsibilities of sales people engaged in selling activities meant for the effective execution of the sales function

Factors influencing structure:

Factors influencing structure Product and service related factors Organization related factors Marketing mix related factors External factors: the speed of market change reduction in the number of vendors per buyer closer to customer relationships changes in regulations and international practices

Concepts of Sales Organization:

Concepts of Sales Organization Specialization Centralization Line or Staff Position Span of Control

Specialization:

Specialization The degree to which individuals perform some of the required tasks to the exclusion of others. Individuals can become experts on certain tasks, leading to better performance for the entire organization.

Centralization :

Centralization The degree two which important decisions and tasks performed at higher levels in the management hierarchy. Centralized structures place authority and responsibility at higher management levels.

Line or Staff Position :

Line or Staff Position Line positions in sales Management have formal authority or power to direct and control immediate subordinates. Line sales managers are the " DOERS” or commanders. Staff management positions have staff authority which means advising and roles in their respective areas of specialization or expertise. Staff positions are purely advisory in nature. They have a right to recommend but have no authority to enforce their preference on other dept , the specialists are the “THINKERS” or advisors.

Line vs. Staff Positions:

National Sales Manager Regional Sales Managers District Sales Managers Sales Training Manager Sales Training Manager Salespeople Staff Position Line Position Line vs. Staff Positions

Span of Control vs. Management Levels:

Flat Sales Organization Span of Control Management Levels National Sales Manager District Sales Manager District Sales Manager District Sales Manager District Sales Manager District Sales Manager Span of Control vs. Management Levels

Span of Control vs. Management Levels:

Tall Sales Organization National Sales Manager Span of Control Management Levels District Sales Manager District Sales Manager District Sales Manager District Sales Manager District Sales Manager District Sales Manager Regional Sales Manager Regional Sales Manager Span of Control vs. Management Levels

Geographic Sales Organization:

Geographic Sales Organization National Sales Manager Zone Sales Managers (4) Zone Sales Managers (4) District Sales Managers (20) Salespeople (100) Salespeople (100) District Sales Managers (20) Eastern Region Sales Manager Western Region Sales Manager Sales Training Manager

Product Sales Organization:

Product Sales Organization National Sales Manager Office Equipment Sales Manager Office Supplies Sales Manager District Sales Managers (10) Salespeople (100) Salespeople (100) District Sales Managers (10)

Market Sales Organization:

Market Sales Organization National Sales Manager Zone Sales Managers (4) District Sales Managers (25) Salespeople (150) District Sales Managers (5) Commercial Accounts Sales Manager Government Accounts Sales Manager Sales Training Manager Salespeople (50)

Size of the Sales force:

Size of the Sales force Sales people are the company’s very productive and expensive assets. If the company has less than optimum size of sales force, there will be a loss of sales and profits, and if it has more than required numbers, there will be an increase in sales cost.

Methods to determine optimum sales force size:

Methods to determine optimum sales force size Workload Method Calculate Group customers by volume Establish call frequencies Calculate total yearly sales call workload Calculate average number of calls/year number of sales representatives Sales Potential/Breakdown Method N=(S/P)(1+T) Incremental Method

authorStream Live Help