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Module 5
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Transcript

  • 1. Sales Organizational Structure
    • Why do we need an organizational structure or hierarchy?
    Control and Coordination Mechanism
  • 2. Principles of Sales Organizations
    • Span of Control, Management levels.
    • Specialization vs. Generalization
    • Centralization vs. Decentralization
    • Integration & Coordination w/ Other Functions
  • 3. Geographic Specialization Product Specialization Customer Specialization Functional Specialization
  • 4. Customer Specialized Sales Force Selected products to all customer in six-state area
  • 5. Product Specialized Sales Force Selected products to all customer in six-state area
  • 6. Functional Specialization
  • 7. Geographical Sales Organization All products to all customers in assigned states
  • 8. Sales Force Alternatives
    • Internet
    • Industrial Distributors
    • Independent Representatives
    • Trade Shows
    • Telemarketing
  • 9. Telemarketing
    • Advantages
    • Low cost per sales call
    • Profitably serve small to medium customers
    • Speed/time saving of telephone ordering
    • Challenges
    • Acceptance by field salespeople
    • Hiring, motivating & retaining good telemarketers
    • The “Telemarketing” Stigma.
  • 10. Doing the Math on Account Management Field Rep Telemarketing Sales calls per day 5 25 Sales calls per quarter 325 1624 Sales calls per year 1300 6500 Reps required 6.5 1.2 Cost per sales call $250 $15 Cost per year $1,998,750 $117,000
  • 11. Sales Force Deployment
    • Word load
      • Focus on tasks to be performed
      • Number of customers
      • Planned call frequencies
    • Determining Optimal Number of Salespeople
      • Affordability -- % of Sales
    • Design and Allocate Territory
  • 12. Sales Force Size
    • Breakdown Approach
    • Salesforce Size = Forecasted Sales / Avg. Sales per Salesperson
    • Workload Approach
    • Salesforce Size = Total Selling Effort / Avg. selling effort per salesperson
    • Incremental Approach
    • Other Issues:
    • Productivity
    • Turnover
  • 13. Sales-force Size
    • Incremental Approach
    • Number of Marginal Marginal
    • Salespeople Profit Cost
    • 100 $50,000 $45,000
    • 101 $48,000 $45,000
    • 102* $46,000 ------------ $45,000
    • 103 $44,000 $45,000
    • 104 $42,000 $45,000
    • Relates sales-force size, sales and costs.
    • Difficult to develop - historical data, changes in labor market etc.
  • 14. Territory Design
    • Why Use territories?
    • Motivation & cost Savings
      • relationship building & maintenance
      • Involvement & pride in “their” customers
      • reduced duplication of sales costs
      • less travel time & effort, high productivity.
    • Evaluation & Control
      • ability of salespeople across balanced territories
      • performance across time, sales potential & quotas.
  • 15. Territory Design Procedure
    • Objective : Equal work Load across all territories.
    • Determine Allocation Criteria
        • Territory balance -- effect on morale
        • Customer balance - distribute commission
        • Potential balance - share business growth
        • Size balance - reduce transportation costs
    • Choose starting points
        • Salesperson’s home
        • Large customer - cut transportation cost
        • Big city - convenient for services
  • 16. Territory Design Procedure (Contd…)
    • Combine Adjacent Control Unit
      • Add adjacent counties/areas to the starting point.
      • Running totals on allocation criteria.
      • Balance between territories.
    • Compare Sales Territories
      • Mountains, roads, population center locations?
      • Comparison on other variables (area/ travel distances etc.)
    • Assign people to Sales Territories

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