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SDM-Unit-4 MBA BVIMR 2022 Syllabus_watermark.pdf

Sales & Distribution Management MBA 4 as per Syllabus CBCS 2022 of Bharati Vidyapeeth (Deemed to be University)

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Slides Prepared by: Dr. Mahtab Alam Dr. MAHTAB ALAM Assistant Professor Management Department
Slides Prepared by: Dr. Mahtab Alam UNIT -IV Unit Sub Unit Unit IV Sales Organization and Salesforce Sales Organization and Salesforce: Sales Organization and its types, Specialization Sales Organization, Staffing the Salesforce, Sales Training Process, Compensating the Salesforce, Motivating and Leading the Salesforce, Evaluating and Controlling the Performance of the Salesforce, Sales Analysis and Sales Audit, Ethical and Social Responsibilities of Sales Personnel.
Slides Prepared by: Dr. Mahtab Alam Sales Organization-Meaning • A sales organization refers to the structured framework within a company that is responsible for planning, managing, and executing sales activities. • It involves defining roles, responsibilities, and hierarchies to ensure an efficient sales process, from generating leads to closing Sales.
Slides Prepared by: Dr. Mahtab Alam Sales Organization-Definition •Still, Cundiff, and Govoni: “A sales organization is an arrangement of activities and personnel to facilitate the efficient transfer of goods and services from the producer to the consumer.” •William J. Stanton: “A sales organization is a group of individuals working together to achieve sales objectives by planning, coordinating, and executing sales strategies.” •American Marketing Association (AMA): “Sales organization refers to the structure and processes used by a company to manage and direct its selling activities to achieve business objectives.” •Ralph S. Alexander: “The sales organization is the mechanism through which a company systematically directs its sales efforts to achieve its marketing objectives.”
Slides Prepared by: Dr. Mahtab Alam Concept of Sales Organization Structure A Sales Organization Structure refers to the framework that defines how a company organizes its sales team to achieve its objectives efficiently. It includes different models such as functional, geographical, product- based, customer-based, etc. depending on business needs. A well-defined structure enhances efficiency, accountability, and market coverage, leading to improved sales performance.
Slides Prepared by: Dr. Mahtab Alam 1. Defined Hierarchy: Clearly establishes authority and responsibility among sales personnel. 2. Specialization: Sales roles are divided based on functions, products, or markets to improve efficiency. 3. Coordination: Ensures seamless collaboration between sales, marketing, and other departments. 4. Flexibility: Can be adapted to changing market trends, customer needs, and business growth. 5. Goal-Oriented: Designed to achieve specific sales targets and company objectives. 6. Customer-Centric: Focuses on delivering value and building long-term customer relationships. 7. Territorial Division: Often structured based on geographic regions to enhance market coverage. 8. Performance Measurement: Uses KPIs and sales metrics to evaluate sales team effectiveness. 9. Motivation and Incentives: Encourages sales teams with rewards, commissions, and career growth opportunities. 10. Scalability: Can expand as the business grows to accommodate more customers and sales opportunities. Features of Sales Organization
Slides Prepared by: Dr. Mahtab Alam Factors affecting Sales Organization
Slides Prepared by: Dr. Mahtab Alam Importance of Sales Organization 1. Ensures Efficiency: Streamlines sales processes and minimizes duplication of efforts. 2. Enhances Coordination: Aligns sales with marketing, production, and customer service. 3. Boosts Sales Performance: Defines roles and responsibilities for better productivity. 4. Expands Market Coverage: Helps in reaching and serving diverse customer segments. 5. Improves Customer Satisfaction: Provides structured and responsive customer support. 6. Facilitates Growth: Supports business expansion with a scalable sales framework. 7. Enhances Accountability: Sets clear targets and performance metrics for the sales team. 8. Optimizes Resource Utilization: Allocates sales efforts and budgets efficiently
Slides Prepared by: Dr. Mahtab Alam Challenges of Sales Organization Structure ❖ Misalignment with Business Goals: If the structure does not align with company strategy, sales performance may suffer. ❖ Inefficient Territory Allocation: Poorly assigned sales territories can lead to underperformance and customer dissatisfaction. ❖ Communication Gaps: Complex structures can create communication gaps, reducing collaboration between sales, marketing, and customer service. ❖ Maintenance of Employee Turnover: Poor sales team organization, lack of incentives, or workload imbalance can lead to high attrition. ❖ Role Ambiguity: Overlapping responsibilities or unclear job roles can cause inefficiencies and conflicts among sales teams. ❖ Customer Relationship Management Challenges: A structure that does not prioritize customer needs can lead to poor customer service and lost opportunities. ❖ Adapting to Market Changes: Traditional sales structures may struggle to keep up with evolving sales trends, digital transformation, and AI-driven sales models.
Slides Prepared by: Dr. Mahtab Alam Types of Sales Organizational Structure 1.Line Sales Organization Structure: This is a simple, hierarchical setup where authority flows directly from top management to sales executives. It is best suited for small businesses or industries with straightforward sales processes, ensuring quick decision-making and clear responsibility Example: Many Indian automobile dealerships, like Maruti Suzuki authorized dealerships, follow this structure, where a sales manager directly supervises sales executives handling customer inquiries and vehicle sales.
Slides Prepared by: Dr. Mahtab Alam 2.Line & Staff Sales Organization structure: It combines direct authority (line) with specialized advisory roles (staff) to enhance decision-making and efficiency. Line managers handle sales execution, while staff specialists provide support in areas like market research, training, and strategy. Example: In India, FMCG companies like Hindustan Unilever use this model, where sales managers oversee regional sales, while marketing and analytics teams offer strategic support.
Slides Prepared by: Dr. Mahtab Alam 3.Functional Sales Organization Structure: A functional structure divides the organization into departments based on their function. Each is headed by a manager and employees are grouped as per their role. Example: In the Banking Industry, banks like HDFC and ICICI Bank have separate teams for corporate sales, retail sales, loan department, and customer relationship management, ensuring smooth operations and expert handling of each function.
Slides Prepared by: Dr. Mahtab Alam 4.Product Specialization Sales Organization Structure: A Product Specialization Sales Organization is a sales structure where teams are divided based on different products. This helps salespeople focus on specific products, understand them better, and sell more effectively. Example: Sun Pharma has separate sales teams for dermatology, cardiology, and neurology drugs to target specific healthcare professionals effectively.
Slides Prepared by: Dr. Mahtab Alam 5.Market/Customer Specialization Sales Organization Structure: This type of Sales Organization focuses on organizing the sales team based on specific market segments or customer groups rather than geography or product lines. This approach helps companies tailor sales strategies to different market needs, improving customer relationships and sales effectiveness. Example: In the Indian steel industry, companies like Tata Steel and JSW Steel structure their sales teams based on market segments such as automotive, construction & infrastructure, industrial manufacturing, and exports
Slides Prepared by: Dr. Mahtab Alam 6.Area/Territory Specialization Sales Organization Structure: In this structure, the salesforce is divided based on geographical regions or territories, ensuring better market coverage and local customer engagement. Each sales team is responsible for a specific area, allowing them to develop expertise in regional customer preferences, competition, and demand. Example: FMCG companies like Hindustan Unilever and ITC use territory-based sales structures to cater to diverse markets across states, ensuring localized marketing and distribution strategies.
Slides Prepared by: Dr. Mahtab Alam 7.Combination/Hybrid Sales Organization Structure: This type of Structure integrates multiple sales structures, such as product- based, geographic, and customer-based models, to optimize efficiency and market reach. It allows companies to tailor their sales approach based on different products, regions, and customer segments. Example: Tata Motors follows a hybrid structure, with sales teams divided by product category (commercial & passenger vehicles), geographical regions (North, South, East, West), and customer segments (fleet owners, individual buyers, government tenders) to maximize sales effectiveness.
Slides Prepared by: Dr. Mahtab Alam
Slides Prepared by: Dr. Mahtab Alam Sales Organization Structure Models In a sales organization structure, different models are used to optimize efficiency, collaboration, and customer service. The Island, Assembly Line, and Pod structures refer to different ways sales teams are organized to achieve their objectives.
Slides Prepared by: Dr. Mahtab Alam 1. Island Structure (Individual Model) ❑ In this model, each sales representative works independently, handling the entire sales process from lead generation to closing deals. ❑ There is little to no collaboration among team members, making it highly competitive. ❑ Best suited for high-performing, self-motivated salespeople who thrive on individual targets. ❑ Common in commission-based sales environments like real estate, insurance, and direct selling.
Slides Prepared by: Dr. Mahtab Alam 2.Assembly Line Structure (Specialized Model) ❑ Sales tasks are divided into different roles, similar to a production assembly line. ❑ Team members specialize in specific functions such as lead generation, qualification, closing, and customer success. ❑ This structure increases efficiency and is commonly used in B2B SaaS companies, call centers, and organizations with large sales teams. ❑ Example roles: SDRs (Sales Development Representatives) generate leads, AEs (Account Executives) close deals, and CSMs (Customer Success Managers) handle post-sales support.
Slides Prepared by: Dr. Mahtab Alam 3. Pod Structure (Team-Based Model) ❑ A mix of the Island and Assembly Line models, where small cross- functional teams (Pods) work together. ❑ Each Pod consists of a few SDRs, AEs, and CSMs who collaborate to handle customers efficiently. ❑ Promotes teamwork and customer-centric sales approaches, often used in startups, SaaS companies, and industries requiring high-touch customer engagement. ❑ Helps in scaling sales operations while maintaining a personalized customer experience.
Slides Prepared by: Dr. Mahtab Alam What is Sales Force Staffing? Meaning: Sales Force Staffing refers to the process of hiring Sales force Professionals to ensure the high sales growth and more customer satisfaction.
Slides Prepared by: Dr. Mahtab Alam Definition of Sales Force Staffing Johnston & Marshall (2013): “The process of sales force staffing includes manpower planning, hiring, training, compensating, motivating, and monitoring salespeople to enhance overall sales performance and market coverage.” Jobber & Lancaster (2009): “Staffing the sales force involves the recruitment, selection, training, and retention of salespeople to meet the organization’s sales and marketing goals effectively.” Stanton, Walker & Spiro (2004): “Sales force staffing is the process of planning, recruiting, selecting, training, compensating, and evaluating the sales personnel to ensure the organization has the right people in the right roles to achieve sales objectives.”
Slides Prepared by: Dr. Mahtab Alam Features of Sales Force Staffing 1. Manpower Planning: Determining the right number of salespeople based on market demand and business goals. 2. Recruitment & Selection: Identifying, attracting, and selecting suitable candidates through structured selection processes. 3. Training & Development: Providing sales skills, product knowledge, and CRM training to enhance performance. Development for futuristic profiles and assignments. 4. Role Allocation & Deployment: Assigning salespeople based on geography, product lines, or customer segments. 5. Motivation & Compensation: Using salary, commissions, bonuses, and incentives to drive sales performance. 6. Performance Evaluation: Measuring effectiveness through KPIs like revenue, conversion rates, and customer satisfaction. 7. Retention & Career Growth: Implementing strategies to reduce turnover and provide career advancement opportunities. 8. Adaptability to Market Trends: Ensuring the sales force evolves with technological advancements and market shifts.
Slides Prepared by: Dr. Mahtab Alam Advantages of Sales Force Staffing ✔ Optimized Sales Performance: Ensures the right talent is hired to drive revenue and market growth. ✔ Efficient Territory Coverage: Proper staffing allows better geographic and customer segment coverage. ✔ Improved Customer Relationships: Well-trained salespeople enhance customer satisfaction and loyalty. ✔ Higher Employee Productivity: Right hiring and training result in a more efficient and motivated sales team. ✔ Better Adaptability to Market Changes: A skilled sales force can quickly respond to industry trends and competition. ✔ Reduced Employee Turnover: Proper recruitment, motivation, and career growth opportunities help retain talent. ✔ Stronger Brand Representation: Knowledgeable salespeople improve brand perception and positioning.
Slides Prepared by: Dr. Mahtab Alam Challenges of Sales Force Staffing ⚠ High Recruitment Costs: Hiring and training salespeople require significant financial investment. ⚠ Talent Acquisition Issues: Finding the right sales talent with the necessary skills can be difficult. ⚠ High Attrition Rates: Sales jobs often have high turnover, leading to frequent hiring and training cycles. ⚠ Inconsistent Performance Levels: Not all hired salespeople perform equally, leading to uneven results. ⚠ Long Training & Onboarding Time: Sales roles require extensive product knowledge and skills training. ⚠ Motivation & Retention Challenges: Keeping sales teams engaged and preventing burnout can be tough. ⚠ Market & Industry Changes: Rapid shifts in technology and customer preferences require constant adaptation.
Slides Prepared by: Dr. Mahtab Alam Process of Sales Force Staffing 1. Manpower Planning (Determine Sales Force Size & Requirements) 2. Recruitment (Identify & Attract Potential Candidates) 3. Selection (Screening, Interviews, and Final Hiring) 4.Training & Development (Product Knowledge, Sales Techniques, CRM) 5. Deployment & Role Allocation (Assigning Territories Roles &Responsibilities) 6. Compensation & Motivation (Salary Structure, Incentives, Rewards & Recognition) 7. Performance Evaluation (KPI Analysis, Monitoring & Feedback) 8. Retention & Career Growth Strategies (Employee Development, Promotions, Recognition)
Slides Prepared by: Dr. Mahtab Alam Sales Force Planning Meaning: Sales force planning is the strategic process of determining the number, type, and allocation of sales personnel needed to achieve business goals effectively. It involves forecasting demand, setting sales targets, and optimizing workforce deployment. Definition: Stanton and Buskirk: "Sales force planning is the process of determining the number, type, and allocation of sales personnel required to achieve an organization's sales objectives efficiently and effectively."
Slides Prepared by: Dr. Mahtab Alam Objectives of Sales Force Planning The following are the objectives of Sales force planning: ➢ Assessing Sales force needs for the future and making plans for recruitment and selection. ➢ Assessing skill requirements in the future for the organization. ➢ Determining training and the development needs of the organization. ➢ Anticipating surplus or shortage of staff and avoiding unnecessary detentions or dismissals. ➢ Controlling wage and salary costs. ➢ Ensuring optimum use of sales force and territory management in the organization. ➢ Helping the organization to cope with technological development and modernization. ➢ Ensuring career planning of every sales staff of the organization and making succession programs. ➢ Ensuring higher sales force productivity.
Slides Prepared by: Dr. Mahtab Alam Process of Sales Force Planning Setting Sales force Objectives & Goals Sales force supply and Demand Estimation Determining Sales force Size Determinng Sales force Skills required Aligning with SalesTerritory Aligning with Sales Quota Sales force Recruitment & Selection Planning Sales forceTraining & Development planning Sales force Compensation & Motivation Sales force Performance Evaluation
Slides Prepared by: Dr. Mahtab Alam Sales force Recruitment Meaning Salesforce recruitment is the process of identifying, attracting, and hiring qualified candidates to build an effective sales team that drives revenue and business growth. It involves sourcing candidates, evaluating their skills, and selecting individuals who can successfully promote and sell a company’s products or services. Definition “Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for the job.” – (Edwin. B. Flippo )
Slides Prepared by: Dr. Mahtab Alam Why Sales force Recruitment is important ? 1. Drives Revenue Growth: A skilled sales team directly contributes to increased sales and profitability. 2. Enhances Employee Morale and Productivity: A skilled sales team fosters motivation, teamwork, and higher performance. 3.Enhances Market Penetration: A strong salesforce helps expand the company’s reach into new markets. 4. Improves Customer Relationships: Sales representatives play a key role in building and maintaining customer trust. 5. Reduces Hiring Costs: Hiring the right salespeople reduces turnover and the cost of frequent recruitment. 6. Boosts Competitive Advantage: A well-trained salesforce helps the company stand out from competitors. 7. Ensures Sales Target Achievement: An efficient team ensures that business goals and sales targets are met. 8. Strengthens Brand Image: Salespeople represent the company and influence its reputation in the market.
Slides Prepared by: Dr. Mahtab Alam Sources of Sales force Recruitment
Slides Prepared by: Dr. Mahtab Alam Sales force Selection Meaning: Sales force selection is the process of hiring skilled sales professionals to achieve targets and drive business growth. It ensures only the best candidates represent the company in the market. Definition: Cundiff and Still: “Sales force selection involves choosing the best- qualified candidates based on their ability to generate sales, build customer relationships, and meet organizational goals.” Key Points to consider in Sales force Selection ❑Job Analysis & Role Definition: Determines the necessary sales skills, experience, and key responsibilities for the Role. ❑Screening & Shortlisting: Reviews applications and resumes to filter candidates who meet basic sales requirements. ❑Assessment & Testing: Uses sales aptitude tests, role-plays, and behavioral assessments to evaluate selling potential. ❑Interview Process: Examines candidates' communication, negotiation, and problem-solving abilities for sales effectiveness. ❑Final Selection & Onboarding: Finalizes hiring decisions, signs contracts, and provides initial sales training to new hires.
Slides Prepared by: Dr. Mahtab Alam •Preliminary Interview – Initial screening to assess basic qualifications and interest. •Application Form – Collecting personal and professional details of candidates. •Employment Tests – Conducting aptitude, personality, and sales skills assessments. Role-plays, negotiation skills, and objection handling exercises. •Sales Interview – In-depth discussion on experience, sales approach, and role fit. •Reference Check – Verifying past performance and credibility from previous employers. •Medical Examination – Ensuring the candidate meets the physical and mental health criteria. •Physical Examination (if applicable) – Checking fitness for field sales roles. •Employment Contract – Finalizing job terms, compensation, and company policies. •Evaluation – Monitoring initial performance and probation period assessment. Sales force Selection Process
Slides Prepared by: Dr. Mahtab Alam Sales ForceTraining Meaning: Sales force training refers to the process of educating and equipping sales professionals with the necessary skills, knowledge, and techniques to enhance their sales performance and efficiency. It includes training in product knowledge, communication skills, customer handling, negotiation, and sales strategies. Definition ❑ William J. Stanton – "Sales training is a continuous process of developing salespeople's knowledge, skills, and attitudes to improve their performance and efficiency in selling." ❑ Philip Kotler – "Sales training is the systematic approach to improving a salesperson’s knowledge, skills, and behavior to achieve better sales results."
Slides Prepared by: Dr. Mahtab Alam Features of Sales ForceTraining ❖ Goal-Oriented: Designed to improve sales performance and achieve business objectives. ❖ Structured Curriculum: Includes modules on product knowledge, customer handling, negotiation, and closing techniques. ❖ Practical Approach: Focuses on real-life sales scenarios, role- playing, and case studies. ❖ Continuous Process: Ongoing training programs ensure sales teams stay updated with new trends and strategies. ❖ Skill Development: Enhances communication, persuasion, and problem-solving abilities. ❖ Customization: Tailored to different industries, sales roles, and market conditions. ❖ Technology Integration: Uses e-learning, CRM tools, and AI-driven sales analytics for better learning. ❖ Performance Evaluation: Assesses salespeople’s progress and effectiveness through tests, feedback, and KPIs. ❖ Motivational Aspect: Encourages a growth mindset and boosts confidence in selling. ❖ Adaptability: Trains sales personnel to handle market fluctuations, customer expectations, and competition effectively.
Slides Prepared by: Dr. Mahtab Alam Benefits of Sales ForceTraining
Slides Prepared by: Dr. Mahtab Alam
Slides Prepared by: Dr. Mahtab Alam Process of Sales ForceTraining
Slides Prepared by: Dr. Mahtab Alam 1. Assessment & Analysis: Identifying the training needs and skill gaps of the sales team. 2. Goal Setting: Defining clear objectives and expected outcomes of the training program. 3. Curriculum Development: Designing structured training content tailored to sales needs. 4. Training Methods: Selecting appropriate methods such as workshops, e- learning, or role-playing. 5. Tools & Resources: Providing necessary materials, technology, and software for training. 6. Coaching & Mentoring: Offering guidance, support, and feedback from experienced mentors. 7. Continuous Learning & Development: Encouraging ongoing skill enhancement and knowledge updates. 8. Performance Evaluation: Measuring training effectiveness through assessments and sales performance. 9. Recognition & Incentives: Rewarding top performers to boost motivation and engagement. 10. Review & Improvement: Regularly analyzing results and refining the training process for better outcomes.
Slides Prepared by: Dr. Mahtab Alam Types of Sales ForceTraining
Slides Prepared by: Dr. Mahtab Alam 1. Product Training: Educates salespeople about the features, benefits, and applications of the products they sell. Example: A smartphone company trains its sales team on the latest device’s specifications and unique selling points. 2. Sales Techniques and Methodologies: Covers strategies, approaches, and best practices for effective selling. Example: A retail company trains employees on consultative selling to better understand customer needs before making recommendations. 3. Negotiation Skills Training: Enhances the ability to negotiate deals, handle objections, and close sales successfully. Example: A real estate firm provides workshops where agents practice negotiation tactics to finalize property deals. 4. Time Management and Organization: Helps sales teams optimize their schedules and improve productivity. Example: A pharmaceutical sales team learns time-blocking techniques to efficiently schedule client meetings and follow-ups.
Slides Prepared by: Dr. Mahtab Alam 5. Sales Coaching and Mentoring: Provides continuous guidance and feedback from experienced professionals. Example: A newly hired insurance agent is assigned a mentor who provides tips on customer handling and closing deals. 6. Industry-Specific Training: Focuses on knowledge and trends specific to a particular industry or market. Example: A financial services company trains its sales team on banking regulations and investment products. 7. Virtual Sales Training: Equips salespeople with digital tools and techniques for remote selling. Example: An e-commerce platform conducts online training on how to effectively pitch products via video calls and social media.
Slides Prepared by: Dr. Mahtab Alam Methods of Sales ForceTraining 1. On-the-Job Training: Learning by performing actual sales tasks under supervision. Example: A new salesperson shadows a senior colleague to observe customer interactions. 2. Classroom Training: Formal training sessions with lectures, discussions, and presentations. Example: A company conducts a two-day sales workshop on advanced selling techniques. 2. Role-Playing: Simulating real sales scenarios to practice handling customers. Example: Trainees act as buyers and sellers to practice objection handling in a mock sales pitch. 2. E-Learning & Online Modules: Digital courses, webinars, and virtual simulations. Example: A salesperson completes an online course on digital marketing strategies. 5. Coaching & Mentoring: Guidance from experienced sales professionals for skill development. Example: A senior sales manager mentors a new recruit on negotiation tactics.
Slides Prepared by: Dr. Mahtab Alam 6. Case Studies & Group Discussions: Analyzing real-world sales situations to improve problem-solving. Example: A team discusses how a famous brand recovered from a sales decline using innovative strategies. 7. Workshops & Seminars: Interactive learning through hands-on activities and expert-led sessions. Example: A company invites an industry expert to conduct a workshop on B2B sales. 8. Video-Based Training: Using recorded sales demonstrations and tutorials for learning. Example: Employees watch a series of training videos on customer relationship management. 8. Simulation Training: Virtual or AI-driven practice sessions mimicking real sales environments. Example: A software company uses AI chatbots to simulate customer interactions for sales training. 8. Self-Study & Reading Materials: Books, articles, and manuals for independent learning. Example: A salesperson reads "The Challenger Sale" to improve strategic selling skills.
Slides Prepared by: Dr. Mahtab Alam 1.Clear Objectives: Define the purpose and expected outcomes of the training. 2.Comprehensive Curriculum: Cover key areas like product knowledge, sales techniques, and customer handling. 3.Experienced Trainers: Involve industry experts, mentors, or skilled sales leaders. 4.Interactive Learning Methods: Use role-playing, case studies, and real-world simulations. 5.Use ofTechnology: Integrate CRM tools,AI analytics, and e-learning platforms. 6.Customized Content: Tailor the training to industry-specific needs and sales roles. 7.Performance Measurement: Assess progress through tests, feedback, and real sales performance. 8.Continuous Learning: Offer ongoing development opportunities to adapt to market changes. 9.Motivation & Engagement: Include incentives, rewards, and recognition programs. 10.Practical Application: Ensure trainees apply learning through real sales interactions. Essentials of a SalesTraining Program
Slides Prepared by: Dr. Mahtab Alam Sales Force Compensation-Meaning Compensation planning is the process of developing and implementing a strategy for rewarding employees, encompassing salaries, benefits, incentives, and other forms of compensation to attract, motivate, and retain talent, while aligning with organizational goals and market conditions.
Slides Prepared by: Dr. Mahtab Alam Definition of Compensation Kotler & Keller: "Sales force compensation is the total package of monetary and non-monetary rewards designed to encourage salespeople to meet sales targets and contribute to company growth." Stanton & Spiro: "Sales force compensation is a structured approach to remunerate sales employees, combining salary, incentives, commissions, and benefits to motivate and retain an effective sales team." What is Compensation Management?
Slides Prepared by: Dr. Mahtab Alam Features of Sales force Compensation 1. Monetary and Non-Monetary Rewards: It includes both financial incentives (salary, commission, bonuses) and non-financial rewards (recognition, career growth opportunities). 2. Performance-Based Structure: Compensation is often linked to sales performance, ensuring motivation and accountability. 3. Combination of Fixed and Variable Pay: A typical sales compensation plan consists of a base salary (fixed) and commissions or incentives (variable). 4. Alignment with Organizational Goals: The structure is designed to support the company’s sales objectives, such as revenue growth, customer acquisition, and market expansion. 5. Motivational Tool: A well-designed compensation plan encourages salespeople to achieve higher sales targets and enhances job satisfaction. 6. Fairness and Transparency: Compensation policies should be clear, equitable, and easily understandable to maintain trust among the sales force. 7. Flexibility and Adaptability: Compensation structures should be adaptable to changes in market conditions, company goals, and sales roles. 8. Cost-Effectiveness: The plan should balance rewarding employees while ensuring profitability and sustainability for the company. 9. Legal and Ethical Compliance: Compensation must adhere to labor laws, tax regulations, and ethical sales practices. 10. Retention and Talent Attraction: A well-structured compensation plan helps in retaining top-performing salespeople and attracting skilled professionals.
Slides Prepared by: Dr. Mahtab Alam Objectives of Sales force Compensation
Slides Prepared by: Dr. Mahtab Alam Advantages & Disadvantages of Sales force Compensation
Slides Prepared by: Dr. Mahtab Alam Components of Sales force Compensation 1. Salary: This is the fixed, regular payment that employees receive, usually monthly. It is typically determined by factors like the job's role, market rates, and the employee's experience. Salaries are paid to White collar employees (Officers or Skilled Professionals) 2. Wages: Wages refer to the fixed monetary compensation or payment that an employer provides to employees in exchange for their work or services. Wages are typically paid at an hourly rate or a fixed amount per period, such as weekly, bi-weekly, or monthly. Wages are paid to Blue Collar employees (unskilled, semi- skilled workers). ❑ Minimum Wage: Governments established the Minimum Wage Act of 1948. The minimum wage is the lowest hourly rate an employer can pay employees. The minimum wage is intended to provide a basic standard of living. ❑ Fair Wage: A fair wage, often referred to as a living wage or a just wage, is a compensation level that is considered to provide employees with a reasonable standard of living. The concept of a fair wage is rooted in the idea that all workers should earn enough to support themselves and their families, and it should be sufficient to cover not only the bare minimum but also some level of comfort and financial security. ❑ Living Wage: A living wage is a higher wage level calculated to cover an individual or family's basic living expenses, including housing, food, and healthcare. It is often higher than the minimum wage.
Slides Prepared by: Dr. Mahtab Alam 3. Commissions/Incentives: Commission/Incentives are the variable compensation amounts paid to employees beyond their regular salary/wage based on their performance as an individual or team. 4. Bonuses: Bonuses are one-time or periodic payments made to employees based on their performance, company performance, or achieving specific goals or targets. 5. Allowances: Allowances refer to amounts of money given to employees regularly for a particular purpose. ❑ Types of Allowances (i) House Rent Allowances (HRA): HRA is given by the employers to the employee to meet the expenses in connection with the rent of the accommodation, which the employee might have to take. (ii) Dearness Allowances (DA): DA is paid to employees to compensate them, at least partially, against the phenomenon of rising prices. DA is decided as per an agreed formula, considering the increase, in the cost of living. (iii) City Compensatory Allowance (CCA): CCA is paid to employees to compensate them partly for the higher cost of living in cities, which differs from one type of city to another.
Slides Prepared by: Dr. Mahtab Alam (iv) Conveyance Allowance: Conveyance allowance is an allowance granted to employees to meet the expenditure incurred on conveyance in performance of duties of the job; when free conveyance is not provided by the employer. (v) Children’s Education Allowance: Amount paid at the rate of a certain amount per child to meet the cost of education of children (subject to a maximum of two children or more as per the rules of the organization) is called children’s education allowance. (vi) Medical Allowances: A medical allowance is a defined amount provided by the company to the employee regardless of whether the individual receives medical treatment or submits medical bills as medical expenditure to employees and their families. (vii) Miscellaneous/Others Allowance: It is typically a one-time payment that is given to an employee to cover the cost of a specific expense or to compensate for a special circumstance such as ❑ Uniform Allowances ❑ Leave Travel Allowances etc. ❑ Meal Allowances 6. Fringe Benefits: Fringe benefits, also known as employee benefits as non-monetary forms of compensation that organizations provide to all employees irrespective of their designation in addition to their regular wages or salaries. These benefits are designed to enhance the quality of work-life for employees which includes ❑ Subsidized Cafeteria ❑ Insurance ❑ Transportation (Cab/Shuttle Services) ❑ Gym etc.
Slides Prepared by: Dr. Mahtab Alam 7. Perquisites/Perks: Perks refer to privileges enjoyed by a person because of his/her organizational status in addition to their regular wages or salaries. These benefits are also designed to enhance the quality of work-life for employees but are not given to all employees rather these are given to special job profiles or designation levels in the organization which includes ❑Company Paid Home ❑Company Paid Cars ❑Servant Facility ❑Free Electricity, Gas &Telephone Bills. 8. Profit Sharing: Employees receive a share of the company's profits, usually distributed among employees based on a predetermined formula. 9. Stock Option or Equity Grants: Employees can buy company stock at a reduced price (stock options) or are given shares directly (stock grants) as a reward for performance or tenure. Some employees receive stock options or equity grants as part of their compensation package, allowing them to become partial owners of the company.
Slides Prepared by: Dr. Mahtab Alam Types of Sales force Compensation Plan 1.Salary-Based Plans: Fixed salary regardless of sales performance, ensuring income stability. Example: A pharmaceutical sales rep earns a monthly salary of ₹50,000 regardless of sales made. 2.Commission-Based Plans: Earnings are directly tied to sales performance, encouraging higher sales. Example: A real estate agent earns 3% commission on every property sold and no fixed salary 3. Salary & Bonus-Based Plans: Additional rewards for achieving or exceeding sales targets. Example: A car salesperson achieving his sales target throughout year and with all quality parameters fulfilled is eligible for Yearly Bonus of Rs ₹1,00,000 along with monthly fixed salary
Slides Prepared by: Dr. Mahtab Alam 5. Profit-Sharing Plans: Salespeople receive a share of the company’s profits based on overall performance. Example: A software company distributes 5% of annual profits among its top-performing sales employees. 6. Territory-Based Plans: Compensation is based on sales generated within a specific geographic area. Example: A regional sales manager earns a percentage of all sales in their assigned state. 7. Team-Based Plans: Rewards are given based on collective team sales efforts and achievements. Example: A group of insurance agents receives a shared bonus when they collectively meet their quarterly sales goal. 4. Salary & Commission-Based Plans: Regular Target is for justifying salary only. Additional rewards for achieving or exceeding sales targets in the form of commission is tied-up. Example Selling 20 cars per month is salary justification but selling additional will attract 10% margin per unit other than salary
Slides Prepared by: Dr. Mahtab Alam Factors affecting Sales force Compensation Plan
Slides Prepared by: Dr. Mahtab Alam Define Business Objectives Identify Key Performance Metrics How to Develop a Salesforce Compensation Plan ? Set Sales force Goals & Objectives Balance Fixed andVariable Pay Select the Right Compensation Structure Align with Sales Roles andTerritories Establish Fair and Competitive Compensation EnsureTransparency and Simplicity Set Realistic and AchievableTargets Regularly Review and Update the Plan Include Incentives for Long-Term Growth
Slides Prepared by: Dr. Mahtab Alam Motivating the Sales Force Motivating the salesforce ensures sustained engagement, encourages goal-driven efforts, and fosters a positive work environment. A well- motivated sales team is more likely to exceed targets, build strong customer relationships, and contribute to long-term business success. Effective motivation strategies include: 1. Monetary Incentives: Providing financial rewards encourages better performance and goal achievement. ✅ Example: A company offers a 10% commission on every deal closed above $10,000, encouraging salespeople to upsell premium products. 2. Non-Monetary Incentives: Recognition, career development, and work-life balance improve morale.✅ Example: An organization introduces a “Salesperson of the Month” award with a feature in the company newsletter and an exclusive parking spot. 3. Sales Contests & Competitions: Healthy competition boosts enthusiasm and engagement.✅ Example: A company runs a quarterly sales challenge, where the top three performers win an all-expenses-paid vacation. 4. Goal Setting & Performance Tracking: Setting clear goals with regular performance reviews improves motivation. ✅ Example: A manager sets weekly sales targets and tracks performance using CRM software, providing instant feedback and coaching when needed. 5. Training & Development: Continuous learning ensures skill improvement and career growth. ✅ Example: A firm introduces a mentorship program where senior sales executives guide junior salespeople, helping them close deals more efficiently.
Slides Prepared by: Dr. Mahtab Alam Sales force MotivationalTheories 1. Maslow’s Need Hierarchy Theory 2. Herzberg’s Two Factor Theory
Slides Prepared by: Dr. Mahtab Alam Leading the Sales Force Meaning: Leadership in salesforce management involves guiding, inspiring, and supporting the sales team to achieve organizational goals. Effective sales leadership fosters a culture of motivation, accountability, and continuous improvement. Definition of Leadership
Slides Prepared by: Dr. Mahtab Alam Leading the Sales Force Key Aspects of Sales Leadership: 1.Vision & Goal Setting: Defining clear objectives and aligning the team’s efforts with company goals. 2.Coaching & Mentoring: Providing guidance, constructive feedback, and skill development opportunities. 3.Motivation & Engagement: Encouraging salespeople through incentives, recognition, and personal growth opportunities. 4.Communication & Transparency: Maintaining open communication to ensure clarity and trust within the team. 5.Performance Management: Regularly tracking and assessing sales performance to drive improvements. 6.Adaptability & Decision Making: Quickly responding to market changes and making strategic adjustments.
Slides Prepared by: Dr. Mahtab Alam Leadership Style in Sales Force Management Example: A manager dictates sales strategies and closely monitors execution without seeking team feedback. Example: A sales manager trusts experienced sales reps to work independently, offering support only when needed. Example: A sales leader involves the team in goal- setting and strategy discussions, valuing their insights.
Slides Prepared by: Dr. Mahtab Alam Example: A Sales Manager in a company who sets targets, assigns responsibilities, and evaluates sales team performance. Example: A senior sales executive who helps new employees, shares best practices, and inspires the team without being a manager.
Slides Prepared by: Dr. Mahtab Alam Example: A sales leader sets clear sales quotas, rewarding top performers with bonuses and penalizing underperformers. Example: A sales manager encourages innovation, sets ambitious sales targets, and leads by example to boost team performance.
Slides Prepared by: Dr. Mahtab Alam Example: A leader provides one- on-one coaching, helping sales reps improve communicatio n and negotiation skills. Example: The CEO of a tech company invests in AI- driven sales tools to stay ahead of competitors and adapt to future trends. Example: A government sales department follows rigid procurement guidelines, ensuring compliance with regulations but limiting flexibility in decision-making.
Slides Prepared by: Dr. Mahtab Alam Example: Elon Musk : His ability to inspire employees and investors with futuristic visions makes him a charismatic leader. Example: A sales manager who prioritizes team success by providing training, resolving challenges, and ensuring sales reps have the right tools to excel.
Slides Prepared by: Dr. Mahtab Alam
Slides Prepared by: Dr. Mahtab Alam Sales force Performance Evaluation Meaning & Definition ❑ Sales Force Performance Appraisal evaluates sales employees' performance to provide feedback, rewards, or training. ❑ Sales force Performance Appraisal is the systematic evaluation of the performance of Sales force and to understand the abilities of a person for further growth and development. Kotler & Keller (2016) – "Sales force performance evaluation is a systematic process of assessing individual sales representatives’ effectiveness in achieving sales objectives and contributing to organizational goals."
Slides Prepared by: Dr. Mahtab Alam Performance Evaluation of Sales Force Objectives of Sales force Performance Appraisal
Slides Prepared by: Dr. Mahtab Alam Process of Sales Force Performance Evaluation
Slides Prepared by: Dr. Mahtab Alam Methods of Sales force Performance Appraisal Traditional/Past-Oriented Methods 1. Ranking Method 2. Paired Comparison Method. 3. Grading/Rating Method 4. Forced Distribution Method 5. Checklist Method 6. Critical Incident Method 7. Graphic Rating Scale Method 8. Essay Method 9. Field Review Method 10. Confidential Report Method 11. Forced Choice Method Modern/Future Oriented Methods 1. MBO 2. 360 Degree Appraisal 3. BARS (Behaviorally Anchored Rating Scale). 4. Human Resource Accounting Method 5. Psychological Appraisal Method 6. Assessment Centre
Slides Prepared by: Dr. Mahtab Alam Methods of Sales force Performance Appraisal
Slides Prepared by: Dr. Mahtab Alam Methods of Sales force Performance Appraisal
Slides Prepared by: Dr. Mahtab Alam Methods of Sales force Performance Appraisal
Slides Prepared by: Dr. Mahtab Alam KPIs (Key Performance Indicators)/ Parameters of Sales force Performance Appraisal
Slides Prepared by: Dr. Mahtab Alam KPIs (Key Performance Indicators)/ Parameters of Sales force Performance Appraisal
Slides Prepared by: Dr. Mahtab Alam KPIs (Key Performance Indicators)/ Parameters of Sales force Performance Appraisal
Slides Prepared by: Dr. Mahtab Alam Essentials of Sales Force Performance Evaluation
Slides Prepared by: Dr. Mahtab Alam Sales Force Controlling Meaning: Salesforce Controlling refers to the management, monitoring, and optimization of a company's sales activities, processes, and performance to ensure efficiency and goal achievement. It involves setting sales targets, analyzing key performance indicators (KPIs), optimizing workflows, and ensuring compliance with organizational strategies. It helps in decision-making by providing insights into sales forecasting, revenue tracking, and team performance. Definition: "A strategic function in sales management that focuses on monitoring and optimizing the efforts of the sales team to maximize productivity, revenue, and customer satisfaction.“ ----Jobber & Lancaster----
Slides Prepared by: Dr. Mahtab Alam Importance of Sales Force Controlling ❑ Enhances sales performance ❑ Improves revenue forecasting ❑ Optimizes resource allocation ❑ Strengthens decision-making ❑ Increases sales efficiency ❑ Ensures compliance & accountability ❑ Boosts customer satisfaction ❑ Supports goal alignment ❑ Reduces sales costs ❑ Encourages motivation & productivity
Slides Prepared by: Dr. Mahtab Alam •Set Clear Goals and Objectives: Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for the sales team. •Develop Performance Standards: Define what constitutes good performance in terms of sales quotas, expense control, and other relevant metrics. •Implement Monitoring Systems: Use tools and techniques to track sales activities and performance, such as CRM systems and sales reports. •Provide Regular Feedback: Offer constructive feedback to the sales team on their performance, both positive and negative. •Implement Reward and Recognition Programs: Recognize and reward top performers to motivate the sales team. •Take Corrective Action: Address any performance issues promptly and effectively. Process of Sales Force Controlling
Slides Prepared by: Dr. Mahtab Alam Types of Sales Force Controlling 1. Outcome Control: Measuring and evaluating the results of sales efforts, such as sales revenue, market share, and customer satisfaction. Types of Outcome Control •Sales quotas: Setting targets for individual salespeople or teams. •Sales performance metrics: Tracking key performance indicators (KPIs) like average deal size, conversion rates, and customer retention. •Profitability analysis: Assessing the profitability of different sales channels or products. •Market share analysis: Monitoring the company's position in the market compared to competitors. 2. Capability Controls: Ensuring that the sales team has the necessary skills, knowledge, and resources to perform effectively. Types of Capability Control •Sales training programs: Providing ongoing training to improve sales skills and product knowledge. •Sales tools and technology: Equipping the sales team with the necessary CRM systems, sales automation tools, and other resources. •Performance reviews: Regularly evaluating sales performance and providing feedback for improvement. •Recruiting and hiring: Ensuring that the sales team is composed of qualified and motivated individuals. 3. Activity Controls: Monitoring the activities and behaviors of the sales team to ensure that they are following established processes and procedures. Types of Activity Control Sales process mapping: Defining and documenting the steps involved in the sales process. Sales territory management: Assigning sales territories and monitoring sales activities within those territories. Call reporting: Requiring salespeople to document their customer interactions and activities. Lead management: Tracking and managing leads to ensure that they are followed up on effectively.
Slides Prepared by: Dr. Mahtab Alam Sales Analysis Meaning: Sales Analysis refers to the process of examining sales data to evaluate business performance, identify trends, and make data-driven decisions. It helps businesses understand customer preferences, product demand, and market trends, leading to improved sales strategies and forecasting. Definition: "Sales analysis is the detailed evaluation of a company’s sales records to measure performance, determine trends, and identify opportunities for growth and improvement in sales strategy. ----Philip Kotler----
Slides Prepared by: Dr. Mahtab Alam
Slides Prepared by: Dr. Mahtab Alam
Slides Prepared by: Dr. Mahtab Alam Sales Auditing Meaning A Sales Audit is a systematic and comprehensive evaluation of a company's sales process, strategies, and performance. It helps in identifying gaps, inefficiencies, and areas for improvement to enhance overall sales effectiveness and compliance with business objectives. Definition Philip Kotler: "A sales audit is a systematic, independent, and periodic examination of a company’s sales environment, objectives, strategies, and activities to improve overall sales effectiveness."
Slides Prepared by: Dr. Mahtab Alam Objectives of Sales Auditing
Slides Prepared by: Dr. Mahtab Alam Steps of Sales Auditing
Slides Prepared by: Dr. Mahtab Alam Importance of Sales Auditing
Slides Prepared by: Dr. Mahtab Alam Types of Sales Auditing 1. Strategic Sales Audit: Evaluates if sales strategies align with business goals and market positioning. 2. Operational Sales Audit: Assesses the efficiency of the sales process and team productivity. 3. Compliance Sales Audit: Ensures adherence to company policies, industry regulations, and legal requirements. 4. Sales Performance Audit: Measures sales targets, KPIs, and overall sales effectiveness. 5. Customer Audit: Analyzes customer satisfaction, feedback, and retention strategies. 6. Digital Sales Audit: Reviews the performance of online sales channels, CRM systems, and digital strategies. 7. Territory & Regional Sales Audit: Examines sales performance across different locations to optimize resource allocation. 8. Product-Wise Sales Audit: Evaluates individual product sales performance and market demand. 9. Competitor Sales Audit: Compares sales performance with competitors to identify strengths and weaknesses. 10.Sales Expense Audit: Analyzes sales-related costs to improve budget efficiency and profitability.
Slides Prepared by: Dr. Mahtab Alam Ethical Responsibilities of Sales force Meaning: & Definition: Ethical responsibility in sales refers to the moral obligations and professional conduct that salespeople must follow to ensure fairness, honesty, and integrity in their interactions with customers, colleagues, and the organization. It involves adhering to ethical principles, legal regulations, and company policies to build trust and long-term customer relationships while maintaining transparency and accountability in the sales process.
Slides Prepared by: Dr. Mahtab Alam Principles of Ethical Responsibilities of Sales force 1. Honesty & Transparency: Provide accurate information about products/services without misleading customers. 2. Fair Pricing & No Deception: Avoid price manipulation, hidden charges, or false claims. 3. Respect for Customers: Treat customers with dignity, respect their needs, and avoid pressure tactics. 4. Confidentiality: Protect customer data and business information from unauthorized use. 5. Fair Competition: Compete ethically without defaming competitors or engaging in unfair trade practices. 6. Compliance with Laws & Policies: Adhere to company policies, industry regulations, and legal frameworks. 7. Avoiding Bribery & Corruption: Refrain from offering or accepting unethical incentives to influence decisions. 8. Customer-Centric Approach: Prioritize customer satisfaction and long-term relationships over short-term gains. 9. Responsible Advertising & Promotions: Ensure marketing and promotional strategies are truthful and ethical. 10.Accountability & Integrity: Take responsibility for actions, own up to mistakes, and maintain integrity in dealings.
Slides Prepared by: Dr. Mahtab Alam Importance of Ethical Responsibilities of Sales force Builds trust and long-term customer relationships Enhances brand reputation and credibility Ensures compliance with legal and industry regulations Reduces risks of fraud, misrepresentation, and legal issues Promotes fair competition in the market Improves customer satisfaction and loyalty Encourages a positive work culture and employee integrity Minimizes conflicts and disputes with customers and stakeholders Increases sales effectiveness through ethical dealings Strengthens overall business sustainability and profitability
Slides Prepared by: Dr. Mahtab Alam Social Responsibilities of Sales force Meaning: Social responsibility of the sales force refers to the moral duty of sales professionals to act in a way that benefits society, customers, and the business.
Slides Prepared by: Dr. Mahtab Alam 1. Customer Welfare: Prioritize customer needs and provide honest recommendations. 2. Fair Trade Practices: Avoid deceptive sales tactics and promote ethical selling. 3. Environmental Responsibility: Support sustainable products and eco-friendly practices. 4. Community Engagement: Participate in social initiatives and give back to society. 5. Consumer Education: Educate customers about product benefits, risks, and ethical usage. 6. Diversity & Inclusion: Respect cultural differences and promote inclusive business practices. 7. Transparency in Dealings: Ensure clear communication about pricing, terms, and conditions. 8. Corporate Social Responsibility (CSR) Support: Align with company’s CSR goals and initiatives. 9. Avoiding Exploitation: Refrain from taking advantage of vulnerable customers. 10.Ethical Promotion & Advertising: Ensure truthful and responsible marketing efforts. Principles of Social Responsibilities of Sales force
Slides Prepared by: Dr. Mahtab Alam Importance of Social Responsibilities of Sales force Builds CustomerTrust Enhances Brand Reputation Encourages FairTrade Practices Supports Sustainable Business Growth Increases Customer Satisfaction & Loyalty Ensures Legal & Ethical Compliance Contributes to Community Development Encourages Employee Integrity & Morale Reduces Consumer Exploitation Aligns with Corporate Social Responsibility (CSR)
Slides Prepared by: Dr. Mahtab Alam

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SDM-Unit-4 MBA BVIMR 2022 Syllabus_watermark.pdf

  • 1.
  • 2.
    Slides Prepared by: Dr. Mahtab Alam UNIT -IV Unit Sub Unit UnitIV Sales Organization and Salesforce Sales Organization and Salesforce: Sales Organization and its types, Specialization Sales Organization, Staffing the Salesforce, Sales Training Process, Compensating the Salesforce, Motivating and Leading the Salesforce, Evaluating and Controlling the Performance of the Salesforce, Sales Analysis and Sales Audit, Ethical and Social Responsibilities of Sales Personnel.
  • 3.
    Slides Prepared by: Dr. Mahtab Alam Sales Organization-Meaning •A sales organization refers to the structured framework within a company that is responsible for planning, managing, and executing sales activities. • It involves defining roles, responsibilities, and hierarchies to ensure an efficient sales process, from generating leads to closing Sales.
  • 4.
    Slides Prepared by: Dr. Mahtab Alam Sales Organization-Definition •Still,Cundiff, and Govoni: “A sales organization is an arrangement of activities and personnel to facilitate the efficient transfer of goods and services from the producer to the consumer.” •William J. Stanton: “A sales organization is a group of individuals working together to achieve sales objectives by planning, coordinating, and executing sales strategies.” •American Marketing Association (AMA): “Sales organization refers to the structure and processes used by a company to manage and direct its selling activities to achieve business objectives.” •Ralph S. Alexander: “The sales organization is the mechanism through which a company systematically directs its sales efforts to achieve its marketing objectives.”
  • 5.
    Slides Prepared by: Dr. Mahtab Alam Concept ofSales Organization Structure A Sales Organization Structure refers to the framework that defines how a company organizes its sales team to achieve its objectives efficiently. It includes different models such as functional, geographical, product- based, customer-based, etc. depending on business needs. A well-defined structure enhances efficiency, accountability, and market coverage, leading to improved sales performance.
  • 6.
    Slides Prepared by: Dr. Mahtab Alam 1. Defined Hierarchy:Clearly establishes authority and responsibility among sales personnel. 2. Specialization: Sales roles are divided based on functions, products, or markets to improve efficiency. 3. Coordination: Ensures seamless collaboration between sales, marketing, and other departments. 4. Flexibility: Can be adapted to changing market trends, customer needs, and business growth. 5. Goal-Oriented: Designed to achieve specific sales targets and company objectives. 6. Customer-Centric: Focuses on delivering value and building long-term customer relationships. 7. Territorial Division: Often structured based on geographic regions to enhance market coverage. 8. Performance Measurement: Uses KPIs and sales metrics to evaluate sales team effectiveness. 9. Motivation and Incentives: Encourages sales teams with rewards, commissions, and career growth opportunities. 10. Scalability: Can expand as the business grows to accommodate more customers and sales opportunities. Features of Sales Organization
  • 7.
  • 8.
    Slides Prepared by: Dr. Mahtab Alam Importance ofSales Organization 1. Ensures Efficiency: Streamlines sales processes and minimizes duplication of efforts. 2. Enhances Coordination: Aligns sales with marketing, production, and customer service. 3. Boosts Sales Performance: Defines roles and responsibilities for better productivity. 4. Expands Market Coverage: Helps in reaching and serving diverse customer segments. 5. Improves Customer Satisfaction: Provides structured and responsive customer support. 6. Facilitates Growth: Supports business expansion with a scalable sales framework. 7. Enhances Accountability: Sets clear targets and performance metrics for the sales team. 8. Optimizes Resource Utilization: Allocates sales efforts and budgets efficiently
  • 9.
    Slides Prepared by: Dr. Mahtab Alam Challenges ofSales Organization Structure ❖ Misalignment with Business Goals: If the structure does not align with company strategy, sales performance may suffer. ❖ Inefficient Territory Allocation: Poorly assigned sales territories can lead to underperformance and customer dissatisfaction. ❖ Communication Gaps: Complex structures can create communication gaps, reducing collaboration between sales, marketing, and customer service. ❖ Maintenance of Employee Turnover: Poor sales team organization, lack of incentives, or workload imbalance can lead to high attrition. ❖ Role Ambiguity: Overlapping responsibilities or unclear job roles can cause inefficiencies and conflicts among sales teams. ❖ Customer Relationship Management Challenges: A structure that does not prioritize customer needs can lead to poor customer service and lost opportunities. ❖ Adapting to Market Changes: Traditional sales structures may struggle to keep up with evolving sales trends, digital transformation, and AI-driven sales models.
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    Slides Prepared by: Dr. Mahtab Alam Types ofSales Organizational Structure 1.Line Sales Organization Structure: This is a simple, hierarchical setup where authority flows directly from top management to sales executives. It is best suited for small businesses or industries with straightforward sales processes, ensuring quick decision-making and clear responsibility Example: Many Indian automobile dealerships, like Maruti Suzuki authorized dealerships, follow this structure, where a sales manager directly supervises sales executives handling customer inquiries and vehicle sales.
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    Slides Prepared by: Dr. Mahtab Alam 2.Line & StaffSales Organization structure: It combines direct authority (line) with specialized advisory roles (staff) to enhance decision-making and efficiency. Line managers handle sales execution, while staff specialists provide support in areas like market research, training, and strategy. Example: In India, FMCG companies like Hindustan Unilever use this model, where sales managers oversee regional sales, while marketing and analytics teams offer strategic support.
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    Slides Prepared by: Dr. Mahtab Alam 3.Functional SalesOrganization Structure: A functional structure divides the organization into departments based on their function. Each is headed by a manager and employees are grouped as per their role. Example: In the Banking Industry, banks like HDFC and ICICI Bank have separate teams for corporate sales, retail sales, loan department, and customer relationship management, ensuring smooth operations and expert handling of each function.
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    Slides Prepared by: Dr. Mahtab Alam 4.Product Specialization SalesOrganization Structure: A Product Specialization Sales Organization is a sales structure where teams are divided based on different products. This helps salespeople focus on specific products, understand them better, and sell more effectively. Example: Sun Pharma has separate sales teams for dermatology, cardiology, and neurology drugs to target specific healthcare professionals effectively.
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    Slides Prepared by: Dr. Mahtab Alam 5.Market/Customer Specialization SalesOrganization Structure: This type of Sales Organization focuses on organizing the sales team based on specific market segments or customer groups rather than geography or product lines. This approach helps companies tailor sales strategies to different market needs, improving customer relationships and sales effectiveness. Example: In the Indian steel industry, companies like Tata Steel and JSW Steel structure their sales teams based on market segments such as automotive, construction & infrastructure, industrial manufacturing, and exports
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    Slides Prepared by: Dr. Mahtab Alam 6.Area/Territory Specialization SalesOrganization Structure: In this structure, the salesforce is divided based on geographical regions or territories, ensuring better market coverage and local customer engagement. Each sales team is responsible for a specific area, allowing them to develop expertise in regional customer preferences, competition, and demand. Example: FMCG companies like Hindustan Unilever and ITC use territory-based sales structures to cater to diverse markets across states, ensuring localized marketing and distribution strategies.
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    Slides Prepared by: Dr. Mahtab Alam 7.Combination/Hybrid Sales OrganizationStructure: This type of Structure integrates multiple sales structures, such as product- based, geographic, and customer-based models, to optimize efficiency and market reach. It allows companies to tailor their sales approach based on different products, regions, and customer segments. Example: Tata Motors follows a hybrid structure, with sales teams divided by product category (commercial & passenger vehicles), geographical regions (North, South, East, West), and customer segments (fleet owners, individual buyers, government tenders) to maximize sales effectiveness.
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    Slides Prepared by: Dr. Mahtab Alam Sales OrganizationStructure Models In a sales organization structure, different models are used to optimize efficiency, collaboration, and customer service. The Island, Assembly Line, and Pod structures refer to different ways sales teams are organized to achieve their objectives.
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    Slides Prepared by: Dr. Mahtab Alam 1. Island Structure(Individual Model) ❑ In this model, each sales representative works independently, handling the entire sales process from lead generation to closing deals. ❑ There is little to no collaboration among team members, making it highly competitive. ❑ Best suited for high-performing, self-motivated salespeople who thrive on individual targets. ❑ Common in commission-based sales environments like real estate, insurance, and direct selling.
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    Slides Prepared by: Dr. Mahtab Alam 2.Assembly Line Structure(Specialized Model) ❑ Sales tasks are divided into different roles, similar to a production assembly line. ❑ Team members specialize in specific functions such as lead generation, qualification, closing, and customer success. ❑ This structure increases efficiency and is commonly used in B2B SaaS companies, call centers, and organizations with large sales teams. ❑ Example roles: SDRs (Sales Development Representatives) generate leads, AEs (Account Executives) close deals, and CSMs (Customer Success Managers) handle post-sales support.
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    Slides Prepared by: Dr. Mahtab Alam 3. Pod Structure(Team-Based Model) ❑ A mix of the Island and Assembly Line models, where small cross- functional teams (Pods) work together. ❑ Each Pod consists of a few SDRs, AEs, and CSMs who collaborate to handle customers efficiently. ❑ Promotes teamwork and customer-centric sales approaches, often used in startups, SaaS companies, and industries requiring high-touch customer engagement. ❑ Helps in scaling sales operations while maintaining a personalized customer experience.
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    Slides Prepared by: Dr. Mahtab Alam What isSales Force Staffing? Meaning: Sales Force Staffing refers to the process of hiring Sales force Professionals to ensure the high sales growth and more customer satisfaction.
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    Slides Prepared by: Dr. Mahtab Alam Definition ofSales Force Staffing Johnston & Marshall (2013): “The process of sales force staffing includes manpower planning, hiring, training, compensating, motivating, and monitoring salespeople to enhance overall sales performance and market coverage.” Jobber & Lancaster (2009): “Staffing the sales force involves the recruitment, selection, training, and retention of salespeople to meet the organization’s sales and marketing goals effectively.” Stanton, Walker & Spiro (2004): “Sales force staffing is the process of planning, recruiting, selecting, training, compensating, and evaluating the sales personnel to ensure the organization has the right people in the right roles to achieve sales objectives.”
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    Slides Prepared by: Dr. Mahtab Alam Features ofSales Force Staffing 1. Manpower Planning: Determining the right number of salespeople based on market demand and business goals. 2. Recruitment & Selection: Identifying, attracting, and selecting suitable candidates through structured selection processes. 3. Training & Development: Providing sales skills, product knowledge, and CRM training to enhance performance. Development for futuristic profiles and assignments. 4. Role Allocation & Deployment: Assigning salespeople based on geography, product lines, or customer segments. 5. Motivation & Compensation: Using salary, commissions, bonuses, and incentives to drive sales performance. 6. Performance Evaluation: Measuring effectiveness through KPIs like revenue, conversion rates, and customer satisfaction. 7. Retention & Career Growth: Implementing strategies to reduce turnover and provide career advancement opportunities. 8. Adaptability to Market Trends: Ensuring the sales force evolves with technological advancements and market shifts.
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    Slides Prepared by: Dr. Mahtab Alam Advantages ofSales Force Staffing ✔ Optimized Sales Performance: Ensures the right talent is hired to drive revenue and market growth. ✔ Efficient Territory Coverage: Proper staffing allows better geographic and customer segment coverage. ✔ Improved Customer Relationships: Well-trained salespeople enhance customer satisfaction and loyalty. ✔ Higher Employee Productivity: Right hiring and training result in a more efficient and motivated sales team. ✔ Better Adaptability to Market Changes: A skilled sales force can quickly respond to industry trends and competition. ✔ Reduced Employee Turnover: Proper recruitment, motivation, and career growth opportunities help retain talent. ✔ Stronger Brand Representation: Knowledgeable salespeople improve brand perception and positioning.
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    Slides Prepared by: Dr. Mahtab Alam Challenges ofSales Force Staffing ⚠ High Recruitment Costs: Hiring and training salespeople require significant financial investment. ⚠ Talent Acquisition Issues: Finding the right sales talent with the necessary skills can be difficult. ⚠ High Attrition Rates: Sales jobs often have high turnover, leading to frequent hiring and training cycles. ⚠ Inconsistent Performance Levels: Not all hired salespeople perform equally, leading to uneven results. ⚠ Long Training & Onboarding Time: Sales roles require extensive product knowledge and skills training. ⚠ Motivation & Retention Challenges: Keeping sales teams engaged and preventing burnout can be tough. ⚠ Market & Industry Changes: Rapid shifts in technology and customer preferences require constant adaptation.
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    Slides Prepared by: Dr. Mahtab Alam Process ofSales Force Staffing 1. Manpower Planning (Determine Sales Force Size & Requirements) 2. Recruitment (Identify & Attract Potential Candidates) 3. Selection (Screening, Interviews, and Final Hiring) 4.Training & Development (Product Knowledge, Sales Techniques, CRM) 5. Deployment & Role Allocation (Assigning Territories Roles &Responsibilities) 6. Compensation & Motivation (Salary Structure, Incentives, Rewards & Recognition) 7. Performance Evaluation (KPI Analysis, Monitoring & Feedback) 8. Retention & Career Growth Strategies (Employee Development, Promotions, Recognition)
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    Slides Prepared by: Dr. Mahtab Alam Sales ForcePlanning Meaning: Sales force planning is the strategic process of determining the number, type, and allocation of sales personnel needed to achieve business goals effectively. It involves forecasting demand, setting sales targets, and optimizing workforce deployment. Definition: Stanton and Buskirk: "Sales force planning is the process of determining the number, type, and allocation of sales personnel required to achieve an organization's sales objectives efficiently and effectively."
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    Slides Prepared by: Dr. Mahtab Alam Objectives ofSales Force Planning The following are the objectives of Sales force planning: ➢ Assessing Sales force needs for the future and making plans for recruitment and selection. ➢ Assessing skill requirements in the future for the organization. ➢ Determining training and the development needs of the organization. ➢ Anticipating surplus or shortage of staff and avoiding unnecessary detentions or dismissals. ➢ Controlling wage and salary costs. ➢ Ensuring optimum use of sales force and territory management in the organization. ➢ Helping the organization to cope with technological development and modernization. ➢ Ensuring career planning of every sales staff of the organization and making succession programs. ➢ Ensuring higher sales force productivity.
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    Slides Prepared by: Dr. Mahtab Alam Process ofSales Force Planning Setting Sales force Objectives & Goals Sales force supply and Demand Estimation Determining Sales force Size Determinng Sales force Skills required Aligning with SalesTerritory Aligning with Sales Quota Sales force Recruitment & Selection Planning Sales forceTraining & Development planning Sales force Compensation & Motivation Sales force Performance Evaluation
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    Slides Prepared by: Dr. Mahtab Alam Sales forceRecruitment Meaning Salesforce recruitment is the process of identifying, attracting, and hiring qualified candidates to build an effective sales team that drives revenue and business growth. It involves sourcing candidates, evaluating their skills, and selecting individuals who can successfully promote and sell a company’s products or services. Definition “Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for the job.” – (Edwin. B. Flippo )
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    Slides Prepared by: Dr. Mahtab Alam Why Salesforce Recruitment is important ? 1. Drives Revenue Growth: A skilled sales team directly contributes to increased sales and profitability. 2. Enhances Employee Morale and Productivity: A skilled sales team fosters motivation, teamwork, and higher performance. 3.Enhances Market Penetration: A strong salesforce helps expand the company’s reach into new markets. 4. Improves Customer Relationships: Sales representatives play a key role in building and maintaining customer trust. 5. Reduces Hiring Costs: Hiring the right salespeople reduces turnover and the cost of frequent recruitment. 6. Boosts Competitive Advantage: A well-trained salesforce helps the company stand out from competitors. 7. Ensures Sales Target Achievement: An efficient team ensures that business goals and sales targets are met. 8. Strengthens Brand Image: Salespeople represent the company and influence its reputation in the market.
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    Slides Prepared by: Dr. Mahtab Alam Sales forceSelection Meaning: Sales force selection is the process of hiring skilled sales professionals to achieve targets and drive business growth. It ensures only the best candidates represent the company in the market. Definition: Cundiff and Still: “Sales force selection involves choosing the best- qualified candidates based on their ability to generate sales, build customer relationships, and meet organizational goals.” Key Points to consider in Sales force Selection ❑Job Analysis & Role Definition: Determines the necessary sales skills, experience, and key responsibilities for the Role. ❑Screening & Shortlisting: Reviews applications and resumes to filter candidates who meet basic sales requirements. ❑Assessment & Testing: Uses sales aptitude tests, role-plays, and behavioral assessments to evaluate selling potential. ❑Interview Process: Examines candidates' communication, negotiation, and problem-solving abilities for sales effectiveness. ❑Final Selection & Onboarding: Finalizes hiring decisions, signs contracts, and provides initial sales training to new hires.
  • 35.
    Slides Prepared by: Dr. Mahtab Alam •Preliminary Interview –Initial screening to assess basic qualifications and interest. •Application Form – Collecting personal and professional details of candidates. •Employment Tests – Conducting aptitude, personality, and sales skills assessments. Role-plays, negotiation skills, and objection handling exercises. •Sales Interview – In-depth discussion on experience, sales approach, and role fit. •Reference Check – Verifying past performance and credibility from previous employers. •Medical Examination – Ensuring the candidate meets the physical and mental health criteria. •Physical Examination (if applicable) – Checking fitness for field sales roles. •Employment Contract – Finalizing job terms, compensation, and company policies. •Evaluation – Monitoring initial performance and probation period assessment. Sales force Selection Process
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    Slides Prepared by: Dr. Mahtab Alam Sales ForceTraining Meaning:Sales force training refers to the process of educating and equipping sales professionals with the necessary skills, knowledge, and techniques to enhance their sales performance and efficiency. It includes training in product knowledge, communication skills, customer handling, negotiation, and sales strategies. Definition ❑ William J. Stanton – "Sales training is a continuous process of developing salespeople's knowledge, skills, and attitudes to improve their performance and efficiency in selling." ❑ Philip Kotler – "Sales training is the systematic approach to improving a salesperson’s knowledge, skills, and behavior to achieve better sales results."
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    Slides Prepared by: Dr. Mahtab Alam Features ofSales ForceTraining ❖ Goal-Oriented: Designed to improve sales performance and achieve business objectives. ❖ Structured Curriculum: Includes modules on product knowledge, customer handling, negotiation, and closing techniques. ❖ Practical Approach: Focuses on real-life sales scenarios, role- playing, and case studies. ❖ Continuous Process: Ongoing training programs ensure sales teams stay updated with new trends and strategies. ❖ Skill Development: Enhances communication, persuasion, and problem-solving abilities. ❖ Customization: Tailored to different industries, sales roles, and market conditions. ❖ Technology Integration: Uses e-learning, CRM tools, and AI-driven sales analytics for better learning. ❖ Performance Evaluation: Assesses salespeople’s progress and effectiveness through tests, feedback, and KPIs. ❖ Motivational Aspect: Encourages a growth mindset and boosts confidence in selling. ❖ Adaptability: Trains sales personnel to handle market fluctuations, customer expectations, and competition effectively.
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    Slides Prepared by: Dr. Mahtab Alam 1. Assessment& Analysis: Identifying the training needs and skill gaps of the sales team. 2. Goal Setting: Defining clear objectives and expected outcomes of the training program. 3. Curriculum Development: Designing structured training content tailored to sales needs. 4. Training Methods: Selecting appropriate methods such as workshops, e- learning, or role-playing. 5. Tools & Resources: Providing necessary materials, technology, and software for training. 6. Coaching & Mentoring: Offering guidance, support, and feedback from experienced mentors. 7. Continuous Learning & Development: Encouraging ongoing skill enhancement and knowledge updates. 8. Performance Evaluation: Measuring training effectiveness through assessments and sales performance. 9. Recognition & Incentives: Rewarding top performers to boost motivation and engagement. 10. Review & Improvement: Regularly analyzing results and refining the training process for better outcomes.
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    Slides Prepared by: Dr. Mahtab Alam 1. Product Training:Educates salespeople about the features, benefits, and applications of the products they sell. Example: A smartphone company trains its sales team on the latest device’s specifications and unique selling points. 2. Sales Techniques and Methodologies: Covers strategies, approaches, and best practices for effective selling. Example: A retail company trains employees on consultative selling to better understand customer needs before making recommendations. 3. Negotiation Skills Training: Enhances the ability to negotiate deals, handle objections, and close sales successfully. Example: A real estate firm provides workshops where agents practice negotiation tactics to finalize property deals. 4. Time Management and Organization: Helps sales teams optimize their schedules and improve productivity. Example: A pharmaceutical sales team learns time-blocking techniques to efficiently schedule client meetings and follow-ups.
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    Slides Prepared by: Dr. Mahtab Alam 5. Sales Coachingand Mentoring: Provides continuous guidance and feedback from experienced professionals. Example: A newly hired insurance agent is assigned a mentor who provides tips on customer handling and closing deals. 6. Industry-Specific Training: Focuses on knowledge and trends specific to a particular industry or market. Example: A financial services company trains its sales team on banking regulations and investment products. 7. Virtual Sales Training: Equips salespeople with digital tools and techniques for remote selling. Example: An e-commerce platform conducts online training on how to effectively pitch products via video calls and social media.
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    Slides Prepared by: Dr. Mahtab Alam Methods ofSales ForceTraining 1. On-the-Job Training: Learning by performing actual sales tasks under supervision. Example: A new salesperson shadows a senior colleague to observe customer interactions. 2. Classroom Training: Formal training sessions with lectures, discussions, and presentations. Example: A company conducts a two-day sales workshop on advanced selling techniques. 2. Role-Playing: Simulating real sales scenarios to practice handling customers. Example: Trainees act as buyers and sellers to practice objection handling in a mock sales pitch. 2. E-Learning & Online Modules: Digital courses, webinars, and virtual simulations. Example: A salesperson completes an online course on digital marketing strategies. 5. Coaching & Mentoring: Guidance from experienced sales professionals for skill development. Example: A senior sales manager mentors a new recruit on negotiation tactics.
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    Slides Prepared by: Dr. Mahtab Alam 6. Case Studies& Group Discussions: Analyzing real-world sales situations to improve problem-solving. Example: A team discusses how a famous brand recovered from a sales decline using innovative strategies. 7. Workshops & Seminars: Interactive learning through hands-on activities and expert-led sessions. Example: A company invites an industry expert to conduct a workshop on B2B sales. 8. Video-Based Training: Using recorded sales demonstrations and tutorials for learning. Example: Employees watch a series of training videos on customer relationship management. 8. Simulation Training: Virtual or AI-driven practice sessions mimicking real sales environments. Example: A software company uses AI chatbots to simulate customer interactions for sales training. 8. Self-Study & Reading Materials: Books, articles, and manuals for independent learning. Example: A salesperson reads "The Challenger Sale" to improve strategic selling skills.
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    Slides Prepared by: Dr. Mahtab Alam 1.Clear Objectives:Define the purpose and expected outcomes of the training. 2.Comprehensive Curriculum: Cover key areas like product knowledge, sales techniques, and customer handling. 3.Experienced Trainers: Involve industry experts, mentors, or skilled sales leaders. 4.Interactive Learning Methods: Use role-playing, case studies, and real-world simulations. 5.Use ofTechnology: Integrate CRM tools,AI analytics, and e-learning platforms. 6.Customized Content: Tailor the training to industry-specific needs and sales roles. 7.Performance Measurement: Assess progress through tests, feedback, and real sales performance. 8.Continuous Learning: Offer ongoing development opportunities to adapt to market changes. 9.Motivation & Engagement: Include incentives, rewards, and recognition programs. 10.Practical Application: Ensure trainees apply learning through real sales interactions. Essentials of a SalesTraining Program
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    Slides Prepared by: Dr. Mahtab Alam Sales ForceCompensation-Meaning Compensation planning is the process of developing and implementing a strategy for rewarding employees, encompassing salaries, benefits, incentives, and other forms of compensation to attract, motivate, and retain talent, while aligning with organizational goals and market conditions.
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    Slides Prepared by: Dr. Mahtab Alam Definition ofCompensation Kotler & Keller: "Sales force compensation is the total package of monetary and non-monetary rewards designed to encourage salespeople to meet sales targets and contribute to company growth." Stanton & Spiro: "Sales force compensation is a structured approach to remunerate sales employees, combining salary, incentives, commissions, and benefits to motivate and retain an effective sales team." What is Compensation Management?
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    Slides Prepared by: Dr. Mahtab Alam Features ofSales force Compensation 1. Monetary and Non-Monetary Rewards: It includes both financial incentives (salary, commission, bonuses) and non-financial rewards (recognition, career growth opportunities). 2. Performance-Based Structure: Compensation is often linked to sales performance, ensuring motivation and accountability. 3. Combination of Fixed and Variable Pay: A typical sales compensation plan consists of a base salary (fixed) and commissions or incentives (variable). 4. Alignment with Organizational Goals: The structure is designed to support the company’s sales objectives, such as revenue growth, customer acquisition, and market expansion. 5. Motivational Tool: A well-designed compensation plan encourages salespeople to achieve higher sales targets and enhances job satisfaction. 6. Fairness and Transparency: Compensation policies should be clear, equitable, and easily understandable to maintain trust among the sales force. 7. Flexibility and Adaptability: Compensation structures should be adaptable to changes in market conditions, company goals, and sales roles. 8. Cost-Effectiveness: The plan should balance rewarding employees while ensuring profitability and sustainability for the company. 9. Legal and Ethical Compliance: Compensation must adhere to labor laws, tax regulations, and ethical sales practices. 10. Retention and Talent Attraction: A well-structured compensation plan helps in retaining top-performing salespeople and attracting skilled professionals.
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    Slides Prepared by: Dr. Mahtab Alam Advantages &Disadvantages of Sales force Compensation
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    Slides Prepared by: Dr. Mahtab Alam Components ofSales force Compensation 1. Salary: This is the fixed, regular payment that employees receive, usually monthly. It is typically determined by factors like the job's role, market rates, and the employee's experience. Salaries are paid to White collar employees (Officers or Skilled Professionals) 2. Wages: Wages refer to the fixed monetary compensation or payment that an employer provides to employees in exchange for their work or services. Wages are typically paid at an hourly rate or a fixed amount per period, such as weekly, bi-weekly, or monthly. Wages are paid to Blue Collar employees (unskilled, semi- skilled workers). ❑ Minimum Wage: Governments established the Minimum Wage Act of 1948. The minimum wage is the lowest hourly rate an employer can pay employees. The minimum wage is intended to provide a basic standard of living. ❑ Fair Wage: A fair wage, often referred to as a living wage or a just wage, is a compensation level that is considered to provide employees with a reasonable standard of living. The concept of a fair wage is rooted in the idea that all workers should earn enough to support themselves and their families, and it should be sufficient to cover not only the bare minimum but also some level of comfort and financial security. ❑ Living Wage: A living wage is a higher wage level calculated to cover an individual or family's basic living expenses, including housing, food, and healthcare. It is often higher than the minimum wage.
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    Slides Prepared by: Dr. Mahtab Alam 3. Commissions/Incentives:Commission/Incentives are the variable compensation amounts paid to employees beyond their regular salary/wage based on their performance as an individual or team. 4. Bonuses: Bonuses are one-time or periodic payments made to employees based on their performance, company performance, or achieving specific goals or targets. 5. Allowances: Allowances refer to amounts of money given to employees regularly for a particular purpose. ❑ Types of Allowances (i) House Rent Allowances (HRA): HRA is given by the employers to the employee to meet the expenses in connection with the rent of the accommodation, which the employee might have to take. (ii) Dearness Allowances (DA): DA is paid to employees to compensate them, at least partially, against the phenomenon of rising prices. DA is decided as per an agreed formula, considering the increase, in the cost of living. (iii) City Compensatory Allowance (CCA): CCA is paid to employees to compensate them partly for the higher cost of living in cities, which differs from one type of city to another.
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    Slides Prepared by: Dr. Mahtab Alam (iv) Conveyance Allowance:Conveyance allowance is an allowance granted to employees to meet the expenditure incurred on conveyance in performance of duties of the job; when free conveyance is not provided by the employer. (v) Children’s Education Allowance: Amount paid at the rate of a certain amount per child to meet the cost of education of children (subject to a maximum of two children or more as per the rules of the organization) is called children’s education allowance. (vi) Medical Allowances: A medical allowance is a defined amount provided by the company to the employee regardless of whether the individual receives medical treatment or submits medical bills as medical expenditure to employees and their families. (vii) Miscellaneous/Others Allowance: It is typically a one-time payment that is given to an employee to cover the cost of a specific expense or to compensate for a special circumstance such as ❑ Uniform Allowances ❑ Leave Travel Allowances etc. ❑ Meal Allowances 6. Fringe Benefits: Fringe benefits, also known as employee benefits as non-monetary forms of compensation that organizations provide to all employees irrespective of their designation in addition to their regular wages or salaries. These benefits are designed to enhance the quality of work-life for employees which includes ❑ Subsidized Cafeteria ❑ Insurance ❑ Transportation (Cab/Shuttle Services) ❑ Gym etc.
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    Slides Prepared by: Dr. Mahtab Alam 7. Perquisites/Perks: Perksrefer to privileges enjoyed by a person because of his/her organizational status in addition to their regular wages or salaries. These benefits are also designed to enhance the quality of work-life for employees but are not given to all employees rather these are given to special job profiles or designation levels in the organization which includes ❑Company Paid Home ❑Company Paid Cars ❑Servant Facility ❑Free Electricity, Gas &Telephone Bills. 8. Profit Sharing: Employees receive a share of the company's profits, usually distributed among employees based on a predetermined formula. 9. Stock Option or Equity Grants: Employees can buy company stock at a reduced price (stock options) or are given shares directly (stock grants) as a reward for performance or tenure. Some employees receive stock options or equity grants as part of their compensation package, allowing them to become partial owners of the company.
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    Slides Prepared by: Dr. Mahtab Alam Types ofSales force Compensation Plan 1.Salary-Based Plans: Fixed salary regardless of sales performance, ensuring income stability. Example: A pharmaceutical sales rep earns a monthly salary of ₹50,000 regardless of sales made. 2.Commission-Based Plans: Earnings are directly tied to sales performance, encouraging higher sales. Example: A real estate agent earns 3% commission on every property sold and no fixed salary 3. Salary & Bonus-Based Plans: Additional rewards for achieving or exceeding sales targets. Example: A car salesperson achieving his sales target throughout year and with all quality parameters fulfilled is eligible for Yearly Bonus of Rs ₹1,00,000 along with monthly fixed salary
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    Slides Prepared by: Dr. Mahtab Alam 5. Profit-Sharing Plans:Salespeople receive a share of the company’s profits based on overall performance. Example: A software company distributes 5% of annual profits among its top-performing sales employees. 6. Territory-Based Plans: Compensation is based on sales generated within a specific geographic area. Example: A regional sales manager earns a percentage of all sales in their assigned state. 7. Team-Based Plans: Rewards are given based on collective team sales efforts and achievements. Example: A group of insurance agents receives a shared bonus when they collectively meet their quarterly sales goal. 4. Salary & Commission-Based Plans: Regular Target is for justifying salary only. Additional rewards for achieving or exceeding sales targets in the form of commission is tied-up. Example Selling 20 cars per month is salary justification but selling additional will attract 10% margin per unit other than salary
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    Slides Prepared by: Dr. Mahtab Alam Define Business Objectives IdentifyKey Performance Metrics How to Develop a Salesforce Compensation Plan ? Set Sales force Goals & Objectives Balance Fixed andVariable Pay Select the Right Compensation Structure Align with Sales Roles andTerritories Establish Fair and Competitive Compensation EnsureTransparency and Simplicity Set Realistic and AchievableTargets Regularly Review and Update the Plan Include Incentives for Long-Term Growth
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    Slides Prepared by: Dr. Mahtab Alam Motivating the SalesForce Motivating the salesforce ensures sustained engagement, encourages goal-driven efforts, and fosters a positive work environment. A well- motivated sales team is more likely to exceed targets, build strong customer relationships, and contribute to long-term business success. Effective motivation strategies include: 1. Monetary Incentives: Providing financial rewards encourages better performance and goal achievement. ✅ Example: A company offers a 10% commission on every deal closed above $10,000, encouraging salespeople to upsell premium products. 2. Non-Monetary Incentives: Recognition, career development, and work-life balance improve morale.✅ Example: An organization introduces a “Salesperson of the Month” award with a feature in the company newsletter and an exclusive parking spot. 3. Sales Contests & Competitions: Healthy competition boosts enthusiasm and engagement.✅ Example: A company runs a quarterly sales challenge, where the top three performers win an all-expenses-paid vacation. 4. Goal Setting & Performance Tracking: Setting clear goals with regular performance reviews improves motivation. ✅ Example: A manager sets weekly sales targets and tracks performance using CRM software, providing instant feedback and coaching when needed. 5. Training & Development: Continuous learning ensures skill improvement and career growth. ✅ Example: A firm introduces a mentorship program where senior sales executives guide junior salespeople, helping them close deals more efficiently.
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    Slides Prepared by: Dr. Mahtab Alam Sales force MotivationalTheories 1.Maslow’s Need Hierarchy Theory 2. Herzberg’s Two Factor Theory
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    Slides Prepared by: Dr. Mahtab Alam Leading theSales Force Meaning: Leadership in salesforce management involves guiding, inspiring, and supporting the sales team to achieve organizational goals. Effective sales leadership fosters a culture of motivation, accountability, and continuous improvement. Definition of Leadership
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    Slides Prepared by: Dr. Mahtab Alam Leading theSales Force Key Aspects of Sales Leadership: 1.Vision & Goal Setting: Defining clear objectives and aligning the team’s efforts with company goals. 2.Coaching & Mentoring: Providing guidance, constructive feedback, and skill development opportunities. 3.Motivation & Engagement: Encouraging salespeople through incentives, recognition, and personal growth opportunities. 4.Communication & Transparency: Maintaining open communication to ensure clarity and trust within the team. 5.Performance Management: Regularly tracking and assessing sales performance to drive improvements. 6.Adaptability & Decision Making: Quickly responding to market changes and making strategic adjustments.
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    Slides Prepared by: Dr. Mahtab Alam Leadership Stylein Sales Force Management Example: A manager dictates sales strategies and closely monitors execution without seeking team feedback. Example: A sales manager trusts experienced sales reps to work independently, offering support only when needed. Example: A sales leader involves the team in goal- setting and strategy discussions, valuing their insights.
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    Slides Prepared by: Dr. Mahtab Alam Example: A SalesManager in a company who sets targets, assigns responsibilities, and evaluates sales team performance. Example: A senior sales executive who helps new employees, shares best practices, and inspires the team without being a manager.
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    Slides Prepared by: Dr. Mahtab Alam Example: A salesleader sets clear sales quotas, rewarding top performers with bonuses and penalizing underperformers. Example: A sales manager encourages innovation, sets ambitious sales targets, and leads by example to boost team performance.
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    Slides Prepared by: Dr. Mahtab Alam Example: A leader provides one- on-one coaching, helpingsales reps improve communicatio n and negotiation skills. Example: The CEO of a tech company invests in AI- driven sales tools to stay ahead of competitors and adapt to future trends. Example: A government sales department follows rigid procurement guidelines, ensuring compliance with regulations but limiting flexibility in decision-making.
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    Slides Prepared by: Dr. Mahtab Alam Example: Elon Musk: His ability to inspire employees and investors with futuristic visions makes him a charismatic leader. Example: A sales manager who prioritizes team success by providing training, resolving challenges, and ensuring sales reps have the right tools to excel.
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    Slides Prepared by: Dr. Mahtab Alam Sales force PerformanceEvaluation Meaning & Definition ❑ Sales Force Performance Appraisal evaluates sales employees' performance to provide feedback, rewards, or training. ❑ Sales force Performance Appraisal is the systematic evaluation of the performance of Sales force and to understand the abilities of a person for further growth and development. Kotler & Keller (2016) – "Sales force performance evaluation is a systematic process of assessing individual sales representatives’ effectiveness in achieving sales objectives and contributing to organizational goals."
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    Slides Prepared by: Dr. Mahtab Alam Performance Evaluationof Sales Force Objectives of Sales force Performance Appraisal
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    Slides Prepared by: Dr. Mahtab Alam Methods ofSales force Performance Appraisal Traditional/Past-Oriented Methods 1. Ranking Method 2. Paired Comparison Method. 3. Grading/Rating Method 4. Forced Distribution Method 5. Checklist Method 6. Critical Incident Method 7. Graphic Rating Scale Method 8. Essay Method 9. Field Review Method 10. Confidential Report Method 11. Forced Choice Method Modern/Future Oriented Methods 1. MBO 2. 360 Degree Appraisal 3. BARS (Behaviorally Anchored Rating Scale). 4. Human Resource Accounting Method 5. Psychological Appraisal Method 6. Assessment Centre
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    Slides Prepared by: Dr. Mahtab Alam Methods ofSales force Performance Appraisal
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    Slides Prepared by: Dr. Mahtab Alam Methods ofSales force Performance Appraisal
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    Slides Prepared by: Dr. Mahtab Alam Methods ofSales force Performance Appraisal
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    Slides Prepared by: Dr. Mahtab Alam KPIs (Key PerformanceIndicators)/ Parameters of Sales force Performance Appraisal
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    Slides Prepared by: Dr. Mahtab Alam KPIs (Key PerformanceIndicators)/ Parameters of Sales force Performance Appraisal
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    Slides Prepared by: Dr. Mahtab Alam KPIs (Key PerformanceIndicators)/ Parameters of Sales force Performance Appraisal
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    Slides Prepared by: Dr. Mahtab Alam Sales ForceControlling Meaning: Salesforce Controlling refers to the management, monitoring, and optimization of a company's sales activities, processes, and performance to ensure efficiency and goal achievement. It involves setting sales targets, analyzing key performance indicators (KPIs), optimizing workflows, and ensuring compliance with organizational strategies. It helps in decision-making by providing insights into sales forecasting, revenue tracking, and team performance. Definition: "A strategic function in sales management that focuses on monitoring and optimizing the efforts of the sales team to maximize productivity, revenue, and customer satisfaction.“ ----Jobber & Lancaster----
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    Slides Prepared by: Dr. Mahtab Alam Importance ofSales Force Controlling ❑ Enhances sales performance ❑ Improves revenue forecasting ❑ Optimizes resource allocation ❑ Strengthens decision-making ❑ Increases sales efficiency ❑ Ensures compliance & accountability ❑ Boosts customer satisfaction ❑ Supports goal alignment ❑ Reduces sales costs ❑ Encourages motivation & productivity
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    Slides Prepared by: Dr. Mahtab Alam •Set Clear Goalsand Objectives: Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for the sales team. •Develop Performance Standards: Define what constitutes good performance in terms of sales quotas, expense control, and other relevant metrics. •Implement Monitoring Systems: Use tools and techniques to track sales activities and performance, such as CRM systems and sales reports. •Provide Regular Feedback: Offer constructive feedback to the sales team on their performance, both positive and negative. •Implement Reward and Recognition Programs: Recognize and reward top performers to motivate the sales team. •Take Corrective Action: Address any performance issues promptly and effectively. Process of Sales Force Controlling
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    Slides Prepared by: Dr. Mahtab Alam Types of SalesForce Controlling 1. Outcome Control: Measuring and evaluating the results of sales efforts, such as sales revenue, market share, and customer satisfaction. Types of Outcome Control •Sales quotas: Setting targets for individual salespeople or teams. •Sales performance metrics: Tracking key performance indicators (KPIs) like average deal size, conversion rates, and customer retention. •Profitability analysis: Assessing the profitability of different sales channels or products. •Market share analysis: Monitoring the company's position in the market compared to competitors. 2. Capability Controls: Ensuring that the sales team has the necessary skills, knowledge, and resources to perform effectively. Types of Capability Control •Sales training programs: Providing ongoing training to improve sales skills and product knowledge. •Sales tools and technology: Equipping the sales team with the necessary CRM systems, sales automation tools, and other resources. •Performance reviews: Regularly evaluating sales performance and providing feedback for improvement. •Recruiting and hiring: Ensuring that the sales team is composed of qualified and motivated individuals. 3. Activity Controls: Monitoring the activities and behaviors of the sales team to ensure that they are following established processes and procedures. Types of Activity Control Sales process mapping: Defining and documenting the steps involved in the sales process. Sales territory management: Assigning sales territories and monitoring sales activities within those territories. Call reporting: Requiring salespeople to document their customer interactions and activities. Lead management: Tracking and managing leads to ensure that they are followed up on effectively.
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    Slides Prepared by: Dr. Mahtab Alam Sales Analysis Meaning:Sales Analysis refers to the process of examining sales data to evaluate business performance, identify trends, and make data-driven decisions. It helps businesses understand customer preferences, product demand, and market trends, leading to improved sales strategies and forecasting. Definition: "Sales analysis is the detailed evaluation of a company’s sales records to measure performance, determine trends, and identify opportunities for growth and improvement in sales strategy. ----Philip Kotler----
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    Slides Prepared by: Dr. Mahtab Alam Sales Auditing Meaning ASales Audit is a systematic and comprehensive evaluation of a company's sales process, strategies, and performance. It helps in identifying gaps, inefficiencies, and areas for improvement to enhance overall sales effectiveness and compliance with business objectives. Definition Philip Kotler: "A sales audit is a systematic, independent, and periodic examination of a company’s sales environment, objectives, strategies, and activities to improve overall sales effectiveness."
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    Slides Prepared by: Dr. Mahtab Alam Types ofSales Auditing 1. Strategic Sales Audit: Evaluates if sales strategies align with business goals and market positioning. 2. Operational Sales Audit: Assesses the efficiency of the sales process and team productivity. 3. Compliance Sales Audit: Ensures adherence to company policies, industry regulations, and legal requirements. 4. Sales Performance Audit: Measures sales targets, KPIs, and overall sales effectiveness. 5. Customer Audit: Analyzes customer satisfaction, feedback, and retention strategies. 6. Digital Sales Audit: Reviews the performance of online sales channels, CRM systems, and digital strategies. 7. Territory & Regional Sales Audit: Examines sales performance across different locations to optimize resource allocation. 8. Product-Wise Sales Audit: Evaluates individual product sales performance and market demand. 9. Competitor Sales Audit: Compares sales performance with competitors to identify strengths and weaknesses. 10.Sales Expense Audit: Analyzes sales-related costs to improve budget efficiency and profitability.
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    Slides Prepared by: Dr. Mahtab Alam Ethical Responsibilitiesof Sales force Meaning: & Definition: Ethical responsibility in sales refers to the moral obligations and professional conduct that salespeople must follow to ensure fairness, honesty, and integrity in their interactions with customers, colleagues, and the organization. It involves adhering to ethical principles, legal regulations, and company policies to build trust and long-term customer relationships while maintaining transparency and accountability in the sales process.
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    Slides Prepared by: Dr. Mahtab Alam Principles ofEthical Responsibilities of Sales force 1. Honesty & Transparency: Provide accurate information about products/services without misleading customers. 2. Fair Pricing & No Deception: Avoid price manipulation, hidden charges, or false claims. 3. Respect for Customers: Treat customers with dignity, respect their needs, and avoid pressure tactics. 4. Confidentiality: Protect customer data and business information from unauthorized use. 5. Fair Competition: Compete ethically without defaming competitors or engaging in unfair trade practices. 6. Compliance with Laws & Policies: Adhere to company policies, industry regulations, and legal frameworks. 7. Avoiding Bribery & Corruption: Refrain from offering or accepting unethical incentives to influence decisions. 8. Customer-Centric Approach: Prioritize customer satisfaction and long-term relationships over short-term gains. 9. Responsible Advertising & Promotions: Ensure marketing and promotional strategies are truthful and ethical. 10.Accountability & Integrity: Take responsibility for actions, own up to mistakes, and maintain integrity in dealings.
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    Slides Prepared by: Dr. Mahtab Alam Importance ofEthical Responsibilities of Sales force Builds trust and long-term customer relationships Enhances brand reputation and credibility Ensures compliance with legal and industry regulations Reduces risks of fraud, misrepresentation, and legal issues Promotes fair competition in the market Improves customer satisfaction and loyalty Encourages a positive work culture and employee integrity Minimizes conflicts and disputes with customers and stakeholders Increases sales effectiveness through ethical dealings Strengthens overall business sustainability and profitability
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    Slides Prepared by: Dr. Mahtab Alam Social Responsibilitiesof Sales force Meaning: Social responsibility of the sales force refers to the moral duty of sales professionals to act in a way that benefits society, customers, and the business.
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    Slides Prepared by: Dr. Mahtab Alam 1. Customer Welfare:Prioritize customer needs and provide honest recommendations. 2. Fair Trade Practices: Avoid deceptive sales tactics and promote ethical selling. 3. Environmental Responsibility: Support sustainable products and eco-friendly practices. 4. Community Engagement: Participate in social initiatives and give back to society. 5. Consumer Education: Educate customers about product benefits, risks, and ethical usage. 6. Diversity & Inclusion: Respect cultural differences and promote inclusive business practices. 7. Transparency in Dealings: Ensure clear communication about pricing, terms, and conditions. 8. Corporate Social Responsibility (CSR) Support: Align with company’s CSR goals and initiatives. 9. Avoiding Exploitation: Refrain from taking advantage of vulnerable customers. 10.Ethical Promotion & Advertising: Ensure truthful and responsible marketing efforts. Principles of Social Responsibilities of Sales force
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    Slides Prepared by: Dr. Mahtab Alam Importance ofSocial Responsibilities of Sales force Builds CustomerTrust Enhances Brand Reputation Encourages FairTrade Practices Supports Sustainable Business Growth Increases Customer Satisfaction & Loyalty Ensures Legal & Ethical Compliance Contributes to Community Development Encourages Employee Integrity & Morale Reduces Consumer Exploitation Aligns with Corporate Social Responsibility (CSR)
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