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7/31/2019 2.Organising the Sales Effort
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Market Potential
Market Identification: Who buys, whouses, who else could use
Market Motivation: Why do people buy ,
why do people not buy
Presentation: How to present, whatappeals to use
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Sales Potential, SalesForecasting
Sales Potential: Share of total marketpotential the company could obtain
Sales Forecast: Sales volume expected
based on past results
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Sales Forecast
Jury of executive opinion
Delphi Technique
Poll of Sales Force Opinion
Poll of Distribution Channel Members
Projection of Past Sales
Survey of Customers Buying Plans Regression Analysis, Econometric
Model Building
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Questions for Discussion
How will you do a sales forecast foroffice automation and consumerproducts sold predominantly through
dealers How will you do a sales forecast for
industrial products that are sold through
the companys sales force responding tocustomer enquiries
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Office Automation &Consumer Products Dealer Survey
Competitor Survey
Sales Force Feedback
State of the economy
Improvements and Innovations in ownproduct range
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Industrial Products
Industry Trends
Industry Jury of Executive Opinion
Sales Force feedback
Past performance
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Product Policy-What to Sell
Product line Policy: Changing,Simplifying, Diversifying
Product Design Policy
Product Quality and Service Policy
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Marketing Channels
Volume
Costs
Profit Potential
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Policy on Distribution Intensity
Mass Distribution
Selective Distribution
Exclusive Agency Distribution
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Pricing Policies
Relative to competition
Relative to costs
List Pricing and Discounts
Geographic pricing policies
Price Leadership
Product Line Pricing Policy Competitive Bidding Policy
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Work Load Method
Hours reqd with customer per year = X
Hours available for one salesperson formeeting customer = Y
No. of Salespersons needed = X/Y
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Workload Method-Exercise
Panaromics target is to sell 100 units of anindustrial product this year
Its conversion ratio is 25%
A sales engineer has to spend 30 hourswith each customer irrespective of whetherthe sale is made
The total time available to meet customers
is 600 hours per sales engineer per year How many sales engineers will Panaromic
need
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Workload Method
No. of Prospects needed= 100/.25 = 400
No. of hours per prospect = 30
Total hours with customer = 400 * 30 =12000
Hours per Sales Engineer per Year =600
No. of Sales Engineers needed =
12,000/ 600 = 20
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Sales Potential Method
Sales Forecast/ Target = Rs. 100 Cr.
Sales achievable by one Salesperson =Rs. 2 Cr.
Salesperson Turnover = 10%
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Sales Potential Method
Sales Forecast/ Target = Rs. 100 Cr.
Sales achievable by one Salesperson =Rs. 2 Cr.
Salesperson Turnover = 10%
Salespersons required = (100/2) * 1.1 =55
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Additions to Salesforce
Estimated Requirement = 30
No. of Salespersons on rolls = 20
No. likely to get promoted, resign, retire= 5
No. likely to join in normal course = 4
Additional number to be recruited =
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Additions to Salesforce
Estimated Requirement = 30
No. of Salespersons on rolls = 20
No. likely to get promoted, resign, retire= 5
No. likely to join in normal course = 4
Additional number to be recruited =
30 20 + 5 - 4 = 11
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Staffing and ManpowerPlanning
No. ofCustomers
Frequency/week
Weeks Workload
(a) (b) (c) (d= a*b*c)
A 390 2 52 40560
B 650 1 52 33800C 260 .5 52 6760
Total workload= 81120, no. of salespersons= 81120/6*250Calls per day= 6, Days per year= 250No. of salespeople required= 54
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Staffing and ManpowerPlanning
No. ofCustomers
Frequency/week
Weeks Workload
(a) (b) (c) (d= a*b*c)
A 500 3 52 78000
B 700 2 52 72800C 300 1 52 15600
Total workload= 166400, no. of salespersons= 166400/6*250Calls per day= 8, Days per year= 250No. of salespeople required= 83
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Purpose of the SalesOrganisation
To permit development of specialists
To assure that all necessary activitiesare performed
To achieve coordination and balance
To define authority
To economise on executive time
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Setting up a sales organisation
Defining Objectives
Determination of activities and theirvolume of performance
Grouping activities into positions
Assignment of personnel to positions
Provision for co-ordination and control
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Basic types of SalesOrganisation Structures
Line Sales Organisation
Line and Staff Sales DepartmentOrganisation
Functional Sales Organisation
Committee Sales Organisation
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Schemes for dividing lineauthority
Geographic Grouping
Product Grouping
Industry Grouping
Marketing Channel Grouping
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Line Structure-GeographicGrouping
Salespeople
Assistant Sales
Manager
Division 1
Salespeople
Assistant Sales
Manager
Division 2
Salespeople
Assistant Sales
Manager
Division 3
Office Staff
Assistant Sales
Manager
Office
Sales Manager
General Manager
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Line Structure-IndustryGrouping
Salespeople
Assistant Sales
Manager
Division 1
Salespeople
Assistant Sales
Manager
Division 2
Salespeople
Assistant Sales
Manager
Division 3
Office Staff
Assistant Sales
Manager
Office
Sales Manager
General Manager
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Line Structure-ProductGrouping
Salespeople
Assistant Sales
Manager
Division 1
Salespeople
Assistant Sales
Manager
Division 2
Salespeople
Assistant Sales
Manager
Division 3
Office Staff
Assistant Sales
Manager
Office
Sales Manager
General Manager
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Line Structure-ChannelGrouping
Salespeople
Assistant Sales
Manager
Division 1
Salespeople
Assistant Sales
Manager
Division 2
Salespeople
Assistant Sales
Manager
Division 3
Office Staff
Assistant Sales
Manager
Office
Sales Manager
General Manager
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Line Staff Structure
Sales
Personnel
Product 1
Sales
ManagerProduct 1
Sales
PersonnelDirector
Director
of SalesTraining
Director
of SalesPromotion
Director
of SalesAnalysis
Sales
Personnel
Product II
Sales
ManagerProduct II
General
Sales Manager
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Line Staff Organisation
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Functional Organisation
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Functional Organisation
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Panaromic OrganisationStructure By Product Group
IndustrialProducts
Group
MediaProducts
Group
OfficeAutomation
Group
Air Conditioning
Group
Consumer
Product Group
Consumer
ElectronicsGroup
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Panaromic OrganisationStructure By Channel
InstitutionalSales Group
Dealer SalesGroup
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Matrix Structure
Industrial ProductsGroup
Media Products Group
Office AutomationGroup
Air Conditioning
Group
Consumer ProductGroup
Consumer ElectronicsGroup
Dealer Sales Group
Institutional SalesGroup
ManagerInstitutional Sales
ManagerDealer Sales
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Objectives of ManufacturerDistributive Network Co-operation
Loyalty to the manufacturer
Appraisal of manufacturers policy &
implementation
Analysis of communication systems
Sti l ti G t S lli
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Stimulating Greater SellingEffort Changing Policies
Sharing Promotional Risk with Dealers
Incentives
D l i M i l
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Developing ManagerialEfficiency in Dist. Orgns. Dealer Training Programs
Assistance in Sales Force Management
Assistance in General Management
Shelf Space Allocation
Missionary Sales Personnel
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Identifying Final Buyer
Local Advertising
Point of Purchase Identification
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C di i i h h
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Coordination with otherFunctions
Advertising
Marketing Information
Service
Physical Distribution
Production
R & D
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Question for Discussion
As Sales Manager for Premier EngineeringCorporation what information Exchange wouldyou require with each of the following functions
Advertising
Marketing Information
Service
Physical Distribution
Production
R & D
C di ti ith th
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Coordination with otherFunctions
HR and Personnel
Finance and Accounts
Public Relations
Legal
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Questions for Discussion
As Sales Manager of Premier EngineeringCorporation what information exchangewould you require with each of the
following functions HR and Personnel
Finance and Accounts
Public Relations Legal
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External Bodies
End users
Industry Associations
Government Agencies
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