Role of Sales Person,Organisation Structure

Contributions Contributions of Personal of Personal SellingSelling to to MarketingMarketing

Producing Producing Sales Sales

RevenueRevenue

Meeting Meeting BuyerBuyer

ExpectationsExpectations

Providing Providing Marketplace Marketplace InformationInformation

Multiple Roles of SalespeopleMultiple Roles of SalespeopleMultiple Roles of SalespeopleMultiple Roles of Salespeople

Multiple Roles of SalespeopleMultiple Roles of Salespeople

An An order takerorder taker processes routine orders or processes routine orders or reorders for products that were already sold by reorders for products that were already sold by the companythe company

An An order getterorder getter sells in a conventional sense sells in a conventional sense and identifies prospective customers, provides and identifies prospective customers, provides customers with information, persuades customers with information, persuades customers to buy, closes sales, and follows up customers to buy, closes sales, and follows up on customers’ use of a product or serviceon customers’ use of a product or service


• Missionary salespeopleMissionary salespeople are sales support are sales support personnel who do not directly solicit orders but personnel who do not directly solicit orders but rather concentrate on performing promotional rather concentrate on performing promotional activities and introducing new products.activities and introducing new products.

• A A sales engineersales engineer is a salesperson who specializes is a salesperson who specializes in identifying, analyzing, and solving customer in identifying, analyzing, and solving customer problems and brings know-how and technical problems and brings know-how and technical expertise to the selling situation but often does not expertise to the selling situation but often does not actually sell products and services.actually sell products and services.


Deliverer:A sales person whose major tasks is Deliverer:A sales person whose major tasks is the deliverery of a product.the deliverery of a product.

Solution Vendor: a salesperson Solution Vendor: a salesperson whose expertise is in the solving of whose expertise is in the solving of the customer problem .the customer problem .

Sales managementSales management

Sales Management is the marketing management activity dealing with planning, organizing, directing, and controlling the personal selling effort. This includes recruiting, training, supervision, motivation, evaluation, and compensation of sales personnel

Sales Management ActivitiesSales Management Activities


The starting point for sales management is The starting point for sales management is developing a sales strategy to execute the firm’s developing a sales strategy to execute the firm’s marketing strategy, which emphasizes the marketing strategy, which emphasizes the development of a marketing mix to appeal to development of a marketing mix to appeal to defined target markets. defined target markets.

A sales strategy focuses on how to sell to specific A sales strategy focuses on how to sell to specific customers within those target markets. Two key customers within those target markets. Two key elements of a sales strategy are a elements of a sales strategy are a relationship relationship strategystrategy and a and a sales channel strategysales channel strategy..


Should salesforce be generalists or specialists?Should salesforce be generalists or specialists? If specialists, should they be product, market, If specialists, should they be product, market,

customer, or functional specialists?customer, or functional specialists? Should centralized or decentralized control be Should centralized or decentralized control be

usedused?? How large should the salesforce be?How large should the salesforce be? How should customers and geographic areas How should customers and geographic areas

be assigned to form sales territories?be assigned to form sales territories? How should salesforce turnover be factored How should salesforce turnover be factored

into sales organization design decisions?into sales organization design decisions?


The main activities are:The main activities are: Recruiting Recruiting is the process of finding prospective job is the process of finding prospective job

candidatescandidates Selecting Selecting involves choosing the candidates to be involves choosing the candidates to be

hiredhired Initial training, Initial training, which typically focuses on product which typically focuses on product

knowledge and sales techniquesknowledge and sales techniques Continual training Continual training for all salespeople is becoming for all salespeople is becoming

more standard as firms attempt to stay current and more standard as firms attempt to stay current and competitive in an ever-changing environment.competitive in an ever-changing environment.


Directing salespeople to meet goals and Directing salespeople to meet goals and objectives consumes much of the typical objectives consumes much of the typical sales manager’s time. These activities sales manager’s time. These activities include:include: MotivationMotivation SupervisionSupervision Leadership of the sales force.Leadership of the sales force.


Sales managers must establish standards by which Sales managers must establish standards by which performance and effectiveness are measured, performance and effectiveness are measured, evaluate performance and effectiveness against these evaluate performance and effectiveness against these standards, and then take appropriate follow-up action. standards, and then take appropriate follow-up action. Salesperson performance Salesperson performance refers to how well refers to how well

individual sales people meet job expectations. individual sales people meet job expectations. An evaluation of An evaluation of sales force effectiveness sales force effectiveness is in fact is in fact

an assessment of the entire sales organization.an assessment of the entire sales organization.

Transaction-Focused vs. Transaction-Focused vs. Relationship Focused Relationship Focused

Transaction-Focused vs. Transaction-Focused vs. Relationship Focused Relationship Focused

Transaction-FocusedTransaction-Focused Relationship-FocusedRelationship-Focused• Short term thinking• Making the sale has

priority over most other considerations

• Interaction between buyer and seller is competitive

• Salesperson is self-interest oriented

• Long term thinking• Developing the

relationship takes priority over getting the sale

• Interaction between buyer and seller is collaborative.

• Salesperson is customer-oriented

The Changing WorldThe Changing Worldof Sales Managementof Sales ManagementThe Changing WorldThe Changing World

of Sales Managementof Sales Management

Transactions Relationships

Individuals Teams

Sales Volume Sales Productivity

Sales Management TrendsSales Management Trends

Management Leadership

Local Global

Relationship Marketing: Relationship Marketing: Four key issuesFour key issues

Relationship Marketing: Relationship Marketing: Four key issuesFour key issues

Open communicationOpen communication

Empowering employeesEmpowering employees

Customers and the planning processCustomers and the planning process

Working in teamsWorking in teams

Total quality managementTotal quality management

Sales Teamwork ApproachesSales Teamwork Approaches

Characteristics of team Characteristics of team depend on depend on characteristics of characteristics of buying organizationbuying organization

Characteristics of team Characteristics of team depend on depend on

characteristics of sales characteristics of sales opportunityopportunity

Mission is strategic Mission is strategic with respect to the with respect to the buying organizationbuying organization

Mission is tactical with respect to the sales

opportunity

Membership Membership relatively stablerelatively stable

Membership Membership very fluidvery fluid

Core Selling Team Selling Team

Leadership TrendsLeadership Trends

Yesterday

Today designation designation

defined powerdefined powerKnowledge Knowledge

is poweris power

Leaders commanded Leaders commanded and controlledand controlled

Leaders empower Leaders empower and coachand coach

Leaders Leaders were warriorswere warriors

LeadersLeadersare facilitatorsare facilitators

Managers Managers directeddirected

Managers Managers delegatedelegate

Sales Force Management in Sales Force Management in the 21the 21stst Century Century

Sales Force Management in Sales Force Management in the 21the 21stst Century Century

Customer orientationCustomer orientation Customer relationship management (CRM)Customer relationship management (CRM) Sales force diversitySales force diversity Electronic communication systems and web-based Electronic communication systems and web-based

technologytechnology Selling teamsSelling teams Complex channels of distributionComplex channels of distribution An international perspective ,global legislationsAn international perspective ,global legislations Ethical behavior and social responsibilityEthical behavior and social responsibility TQMTQM Shared sales forceShared sales force

Effective Sales Managers:Effective Sales Managers:

1.1. Utilize a Strategic Perspective Utilize a Strategic Perspective Focused on CustomersFocused on Customers

2.2. Attract, Keep, and Develop Sales Attract, Keep, and Develop Sales TalentTalent

3.3. Leverage TechnologyLeverage Technology

Sales ForceOrganization

Listen to the customer and act on what they tell you.

Pat Nathan, Vice PresidentDell Computer Corp

Sales OrganizationSales Organization(def…)(def…)

Organization of individual ,either Organization of individual ,either working together for the marketing working together for the marketing of product and services of product and services manufactured by an enterprise or for manufactured by an enterprise or for product that are produced by the product that are produced by the firm for the purpose of reselling..firm for the purpose of reselling..

Learning ObjectivesLearning Objectives

1.1. Define the concepts of organisation structure,, Define the concepts of organisation structure,, span of control versus management levels, span of control versus management levels, and line versus staff positions. and line versus staff positions.

2.2. Describe the different sales organization Describe the different sales organization structures.structures.

3.3. Evaluate the advantages and disadvantages Evaluate the advantages and disadvantages of sales organization structures.of sales organization structures.

4.4. Explain how to determine the appropriate Explain how to determine the appropriate sales organization structure for a given selling sales organization structure for a given selling situationsituation

Building blocks of organizational Building blocks of organizational structurestructure

Differentiation in the allocation of Differentiation in the allocation of people and resources to create value.people and resources to create value.Vertical differentiation: Focus is on the Vertical differentiation: Focus is on the

distribution of decision-making distribution of decision-making authority.authority.

Horizontal differentiation : Focus is on Horizontal differentiation : Focus is on division and grouping of tasks into functions division and grouping of tasks into functions and divisions to meet business objectives .and divisions to meet business objectives .

IntegrationIntegrationThe means used in coordinating people and The means used in coordinating people and

functions to accomplish organizational tasks.functions to accomplish organizational tasks.

Building blocks of organizational Building blocks of organizational structurestructure

Bureaucratic costsBureaucratic costs::

Vertical DifferentiationVertical Differentiation

Span of control (division of authority)Span of control (division of authority)The number of subordinates that a The number of subordinates that a

single manager directly manages.single manager directly manages.Organizational hierarchy choicesOrganizational hierarchy choices

Flat structuresFlat structuresFew organizational levelsFew organizational levelsWide spans of controlWide spans of control

Tall structuresTall structuresMany organizational levelsMany organizational levelsNarrow spans of controlNarrow spans of control

Tall and Flat StructuresTall and Flat Structures

Centralization or Centralization or DecentralizationDecentralization

Authority patterns in organizations:Authority patterns in organizations:CentralizedCentralized

Decision making retained in the Decision making retained in the hands of upper-level managers.hands of upper-level managers.DecentralizedDecentralizedDecisions delegated to lower Decisions delegated to lower

levels in the organization.levels in the organization.

Centralization (Structural) Centralization (Structural) Choice?Choice?

Advantages of Advantages of decentralization decentralization Reduced information Reduced information

overload on upper overload on upper managers.managers.

Increased motivation Increased motivation and accountability and accountability throughout throughout organization.organization.

Fewer managers; Fewer managers; lower bureaucratic lower bureaucratic costs.costs.

Advantages of Advantages of centralizationcentralization Easier coordination of Easier coordination of

organizational organizational activities.activities.

Decisions fitted to Decisions fitted to broad organizational broad organizational objectives.objectives.

Exercise of strong Exercise of strong leadership in crisis.leadership in crisis.

Faster decision making Faster decision making and response.and response.

Principles of Organization DesignPrinciples of Organization Design

Organizational structure should reflect a Organizational structure should reflect a marketing orientationmarketing orientation

Organization should be built around activities, not Organization should be built around activities, not around peoplearound people

Responsibility and authority should be related Responsibility and authority should be related properlyproperly

Span of executive control should be reasonableSpan of executive control should be reasonable Organization should be stable but not flexibleOrganization should be stable but not flexible Activities should be balanced and coordinatedActivities should be balanced and coordinated

How OrganizationalHow OrganizationalDesign IncreasesDesign Increases

ProfitabilityProfitability

Enhances a company’s

Line-and-Staff Sales Line-and-Staff Sales OrganizationOrganization

Chief Marketing Executive

Salespeople

Advertising Manager

MarketingResearchManager

GeneralSales

Manager

SalesPromotionManager

SalesAnalysisManager

Staff advisory authority

Line authority

Functional Sales OrganizationFunctional Sales Organization


Salespeople

Advertising Manager


GeneralSales

Manager

CreditManager


Staff advisory authority

Line authority

Geographical Sales Geographical Sales OrganizationOrganization


Western RegionalSales Manager

Advertising Manager


GeneralSales

Manager


SalesAnalyst

4 DistrictSales Managers

Salespeople eachwith own territory

Eastern RegionalSales Manager

4 DistrictSales Managers

Salespeople eachwith own territory

Sales Organization with Sales Organization with Product-Specialized Sales ForceProduct-Specialized Sales Force


Sales ManagerProduct A

Advertising Manager


GeneralSales

Manager


CustomerRelationsManager

SalespeopleProduct A

Sales ManagerProduct C

SalespeopleProduct C

Sales ManagerProduct B

SalespeopleProduct B

Sales Organization with Sales Organization with Product-Managers as Staff Product-Managers as Staff

SpecialistsSpecialistsChief Marketing Executive

Advertising Manager


GeneralSales

Manager

Manager

Product

A

Assistant Sales

Manager

Salespeople

Manager

Product

B

Manager

Product

C

Sales Organization Specialized Sales Organization Specialized by Type of Customerby Type of Customer


Sales ManagerTransportation

Industry

Advertising Manager


GeneralSales

Manager


CustomerRelationsManager

Salespeople

Sales ManagerPetroleum Industry

Salespeople

Sales ManagerSteel Industry

Salespeople

Organizational Options for the Organizational Options for the 2000s2000s

Organizational Options for the

2000s

Strategic account management

Team selling

E-commerce and telemarketing

Independentreps

Flat Sales Organization

Span of Control

Ma

na

ge

men

t Lev

els

National Sales

Manager

District Sales

Manager

District Sales

Manager

District Sales

Manager

District Sales

Manager

District Sales

Manager

Span of Control vs. Span of Control vs. Management LevelsManagement LevelsSpan of Control vs. Span of Control vs. Management LevelsManagement Levels

Tall Sales Organization

National Sales Manager

Span of Control

Ma

na

ge

men

t Lev

els

District Sales

Manager

District Sales

Manager

District Sales

Manager

District Sales

Manager

District Sales

Manager

District Sales

Manager

Regional Sales Manager

Regional Sales Manager

Span of Control vs. Span of Control vs. Management LevelsManagement LevelsSpan of Control vs. Span of Control vs. Management LevelsManagement Levels

Comparison of Sales Organization Structures


OrganizationalStructure Advantages Disadvantages

Geographic

• Low Cost• No geographic duplication• No customer duplication• Fewer management levels

• Limited specialization• Lack of management control over product or customer emphasis

Product

• Salespeople become experts in product attr. & applications• Management control over selling effort

• High cost• Geographic duplication• Customer duplication



OrganizationalStructure Advantages Disadvantages

Market

• Salespeople develop better understanding of unique customer needs• Management control over selling allocated to different markets

• High cost• Geographic duplication

Functional• Efficiency in performing selling activities

• Geographic duplication• Customer duplication• Need for coordination

Hybrid Sales Organization Hybrid Sales Organization StructureStructure

Hybrid Sales Organization Hybrid Sales Organization StructureStructure

National Sales Manager

Major Accounts Sales Manager

Regular Accounts Sales Manager

Office Equipment Sales Manager

Office Supplies Sales Manager

Field SalesManager

TelemarketingSales Manager

Commercial Accounts Sales Manager

Government Accounts Sales Manager

WesternSales Manager

EasternSales Manager

Documents

Role of Sales Person,Organisation Structure