Sales org

1,657 views

Published on

Published in: Education
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,657
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
35
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Answers The salespeople now work in teams to sell complete solutions consisting of both products and services. The teams organize according to customer size, industry, and location. Salespeople are part of a sales force that serves three main customer groups: large, integrated accounts; clusters of aligned accounts; or small and medium-sized accounts. Meetings between salespeople and sales managers are limited to one 30-minute meeting each Monday. No other meetings are required. The meetings focus on coaching and solving customer problems. This frees up more time for IBM salespeople to sell.
  • 3
  • 2
  • 4
  • 5
  • 5
  • 7
  • 7
  • 3
  • 4
  • 5
  • 6
  • 6
  • 6
  • 6
  • 15
  • 16
  • 16
  • 16
  • 19
  • 20
  • Sales org

    1. 1. Module FourSales Organization Structure and Sales Force Deployment
    2. 2. Learning Objectives 1. Define the concepts of specialization, centralization, span of control versus management levels, and line versus staff positions. 2. Describe the ways sales forces might be specialized. 3. Evaluate the advantages and disadvantages of sales organization structures. 4. Name the important considerations in organizing major account management programs.Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    3. 3. Learning Objectives 5. Explain how to determine the appropriate sales organization structure for a given selling situation. 6. Discuss sales force deployment. 7. Explain three analytical approaches for determining allocation of selling offer. 8. Describe three methods for calculating sales force size.Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    4. 4. Learning Objectives 9. Explain the importance of sales territories and list the steps in the territory design process. 10. Discuss the important “people” considerations in sales force deployment.Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    5. 5. Setting the Stage Strategy and Sales Organization Structure: IBM 1. What is one of the key changes IBM made to the structure of its sales organization? 2. What change did IBM make to the way its salespeople and sales managers interact?Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    6. 6. Sales Organization Concepts 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 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.Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    7. 7. Sales Force Specialization Continuum Generalists Specialists Some specialization All selling activities Certain selling of selling activities, and all products to activities for certain products, and/or all customers products for certain customers customersProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    8. 8. Span of Control vs. Management Levels Flat Sales Organization National Management Levels Sales Manager District District District District District Sales Sales Sales Sales Sales Manager Manager Manager Manager Manager Span of ControlProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    9. 9. Span of Control vs. Management Levels Tall Sales Organization National Sales Manager Management Levels Regional Sales Regional Sales Manager Manager District District District District District District Sales Sales Sales Sales Sales Sales Manager Manager Manager Manager Manager Manager Span of ControlProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    10. 10. Line vs. Staff Positions National Sales Manager Sales Training Manager Regional Sales Managers Sales Training Manager District Sales Managers Staff Position Salespeople Line PositionProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    11. 11. Selling-Situation Factors and Organizational Structure Organizational Environmental Task Performance Structure Characteristics Performance Objective High Envir. Specialization uncertainty Nonroutine Adaptiveness Low Envir. Centralization Uncertainty Repetitive EffectivenessProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    12. 12. Customer and Product Determinants of Sales Force Specialization Customer Needs Different Market- Product/Market- Driven Driven Simple Specialization Specialization Complex Product Range of Offering Geography- Product- Products Driven Driven Specialization Specialization Customer Needs SimilarProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    13. 13. Geographic Sales Organization National Sales Manager Sales Training Manager Eastern Region Sales Manager Western Region Sales Manager Zone Sales Managers (4) Zone Sales Managers (4) District Sales Managers (20) District Sales Managers (20) Salespeople (100) Salespeople (100)Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    14. 14. Product Sales Organization National Sales Manager Office Equipment Sales Manager Office Supplies Sales Manager District Sales Managers (10) District Sales Managers (10) Salespeople (100) Salespeople (100)Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    15. 15. Market Sales Organization National Sales Manager Commercial Accounts Government Accounts Sales Manager Sales Manager Sales Training Manager Zone Sales Managers (4) District Sales Managers (5) District Sales Managers (25) Salespeople (50) Salespeople (150)Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    16. 16. Functional Sales Organization National Sales Manager Field Sales Manager Telemarketing Sales Manager Regional Sales Managers (4) District Sales Managers (2) District Sales Managers (16) Salespeople (40) Salespeople (160)Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    17. 17. Identifying Major Accounts Large Large Major Size of Account Account Account Regular Complex Small Account Account Simple Complex Complexity of AccountProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    18. 18. Major Accounts Options Develop Major Account Salesforce Assign Major Accounts to Sales Managers Assign Major Accounts to Salespeople along with Other AccountsProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    19. 19. Comparison of Sales Organization Structures Organizational Structure Advantages Disadvantages • Low Cost • Limited specialization • No geographic duplication • Lack of management Geographic • No customer duplication control over product or • Fewer management levels customer emphasis • Salespeople become experts • High cost in product attr. & applications Product • Geographic duplication • Management control over • Customer duplication selling effortProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    20. 20. Comparison of Sales Organization Structures Organizational Structure Advantages Disadvantages • Salespeople develop better understanding of unique customer needs • High cost Market • Management control over • Geographic duplication selling allocated to different markets • Geographic duplication • Efficiency in performing Functional selling activities • Customer duplication • Need for coordinationProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    21. 21. Hybrid Sales Organization Structure National Sales Manager Commercial Accounts Government Accounts Sales Manager Sales Manager Major Accounts Regular Accounts Office Equipment Office Supplies Sales Manager Sales Manager Sales Manager Sales Manager Field Sales Telemarketing Manager Sales Manager Western Eastern Sales Manager Sales ManagerProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    22. 22. Salesforce Deployment Sales Force deployment decisions can be viewed as providing answers to three interrelated questions. 1. How much selling effort is needed to cover accounts and prospects adequately so that sales and profit objectives will be achieved? 2. How many salespeople are required to provide the desired amount of selling effort? 3. How should territories be designed to ensure proper coverage of accounts and to provide each salesperson with a reasonable opportunity for success?Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    23. 23. Interrelatedness of Sales Force Deployment Decisions How much selling effort is needed to cover Allocation of Allocation of accounts and prospects adequately so that sales Selling Effort Selling Effort and profit objectives will be achieved? Sales Force Sales Force How many salespeople are required to provide the Size desired amount of selling effort? Size How should territories be designed and salespeople Territory Territory assigned to territories to ensure proper coverage of Design accounts and to provide each salesperson with a Design reasonable opportunity for success?Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    24. 24. Analytical Approaches to Allocation of Selling Effort Easy to Develop and Use Single Factor Single Factor Models Models Low High Analytical Portfolio Portfolio Analytical Rigor Models Models Rigor Decision Decision Models Models Difficult to Develop and UseProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    25. 25. Single Factor Models • Easy to develop and use/low analytical rigor • Accounts classified into categories based on one factor, such as market potential • All accounts in the same category are assigned the same number of sales calls • Effort allocation decisions are based on the analysis of only one factor and differences among accounts in the same category are not considered in assigning sales call coverageProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    26. 26. Single Factor Model Example Market Potential Average Sales Calls to Average Sales Calls to Categories an Account Last Year an Account Next Year A 25 32 B 23 24 C 20 16 D 16 8Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    27. 27. Portfolio Models • Account Opportunity - an account’s need for and ability to purchase the firm’s products • Competitive Position - the strength of the relationship between the firm and an accountProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    28. 28. Portfolio Model Segments and Strategies Competitive Position Account Opportunity Strong Weak High Segment 1 Segment 2 Segment 3 Segment 4 LowProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    29. 29. Decision Models • Simple Basic Concept - to allocate sales calls to accounts that promise the highest sales return from the sales calls • Optimal number of calls in terms of sales or profit maximizationProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    30. 30. Sales Force Size: Key Considerations • Sales Productivity - the ratio of sales generated to selling effort used – In early stages, the addition of salespeople increases sales considerably more than the selling costs. As salespeople continue to be added, sales increases tend to decline until a point is reached when the costs to add a salesperson are more than the revenues that salesperson can generate. • Salesforce Turnover – Is very costly – Should be anticipatedProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    31. 31. Sales Force Size: Analytical Tools The Breakdown Approach is used to determine the number of salespeople needed to generate a forecasted level of sales. This approach is easy to develop. However, it is weak conceptually. The concept underlying the calculations is that sales determine the number of salespeople needed—putting “the cart before the horse.” Salesforce size = Forecasted sales / Average sales per personProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    32. 32. Sales Force Size: Analytical Tools The Workload Approach determines how much selling effort is needed to adequately cover the firm’s market. Then the number of salespeople required to provide this amount of selling effort is calculated. This approach relatively simple to develop and is sound conceptually. Total selling effort needed Number of salespeople = Average selling effort per salespersonProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    33. 33. Sales Force Size: Analytical Tools The Incremental Approach is the most rigorous for calculating salesforce size. Its compares the marginal profits and marginal costs associated with each incremental salesperson. The major advantage is that it quantifies the important relationships between salesforce size, sales, and costs. However, this method is difficult to develop, and it cannot be used for new sales forces where historical data and accurate judgments are not possible. # of Salespeople Marginal Contribution Marginal Cost 100 $85,000 $75,000 101 $80,000 $75,000 102 $75,000 $75,000 103 $70,000 $75,000Professional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    34. 34. Designing Territories • Territories consist of whatever specific accounts are assigned to a specific salesperson. The territory can be viewed as the work unit for a salesperson. • Territory Considerations – Trading areas – Present effort – Recommended effortProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams
    35. 35. Territory Design Procedure Analyze Select Assess Finalize Planning and Form Initial Planning and Territory Territory Control Unit Territories Control Unit Workload Design OpportunityProfessional Selling: Module 4: Ingram LaForge AvilaA Trust-Based Approach Sales Organization Structure and Sales Force Deployment Schwepker Jr. Williams

    ×