Role of Sales Person,Organisation Structure
-
Upload
shikhabhargava -
Category
Documents
-
view
4.463 -
download
0
description
Transcript of 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
Multiple Roles of SalespeopleMultiple Roles of Salespeople
• 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.
Multiple Roles of SalespeopleMultiple Roles of Salespeople
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
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..
Sales Management ActivitiesSales Management Activities
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?
Sales Management ActivitiesSales Management Activities
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.
Sales Management ActivitiesSales Management Activities
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 Management ActivitiesSales Management Activities
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
Chief Marketing Executive
Salespeople
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
CreditManager
SalesPromotionManager
Staff advisory authority
Line authority
Geographical Sales Geographical Sales OrganizationOrganization
Chief Marketing Executive
Western RegionalSales Manager
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
SalesPromotionManager
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
Chief Marketing Executive
Sales ManagerProduct A
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
SalesPromotionManager
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
MarketingResearchManager
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
Chief Marketing Executive
Sales ManagerTransportation
Industry
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
SalesPromotionManager
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
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
Comparison of Sales Organization Structures
Comparison of Sales Organization Structures
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