8 Designing & Development of Salesforce Tanner
-
Upload
mohammad-fawad-khalid-manawalla -
Category
Documents
-
view
217 -
download
0
Transcript of 8 Designing & Development of Salesforce Tanner
-
8/13/2019 8 Designing & Development of Salesforce Tanner
1/47
Sales Management: Shaping Future Sales Leaders
Organization of the
Sales Force
-
8/13/2019 8 Designing & Development of Salesforce Tanner
2/47
Organization of The Sales Force
Basic Management Function of ArrangingThe Firms Sales Activities
-
8/13/2019 8 Designing & Development of Salesforce Tanner
3/47
Tasks of The Sales Organization
1. Maintenance of order in achieving sales forcegoals/objectives
2. Assignment of specific tasks and responsibilities3. Integration and coordination with other elements
of the firm
-
8/13/2019 8 Designing & Development of Salesforce Tanner
4/47
How a Firms Goals Affect the Design of ItsSales Force
Organization of sales force is driven by strategic goals
Organizational sales structures serve a number ofpurposes that include
1. Serving buyers effectively in ways they want to beserved
2. Operating efficiently and effectively as measured by
cost and customer satisfaction
-
8/13/2019 8 Designing & Development of Salesforce Tanner
5/47
The Size of the Sales Force
BreakdownMethod
WorkloadMethod
-
8/13/2019 8 Designing & Development of Salesforce Tanner
6/47
DevelopingA Sales Organization
-
8/13/2019 8 Designing & Development of Salesforce Tanner
7/47
Developing A Sales Organization
1. Formal & informal organization
2. Horizontal & vertical
3. Centralized & decentralized
4. The line and staff components ofthe organization
-
8/13/2019 8 Designing & Development of Salesforce Tanner
8/47
Developing A Sales Organization
Formal and informal organizations - every firm has aformal & an informal organization.
The formal organization is a creation of management
CEONSM
RSM
ASM
Salesperson
Informal organization is developed from the socialrelationships existing with in the formal organization structure.
-
8/13/2019 8 Designing & Development of Salesforce Tanner
9/47
Developing A Sales Organization
Informal organization
Communication pattern formed from the socialrelationship existing with in the formal organization
Salesperson ASM RSM NSM CEO
Manager Marketing distribution Manager NSM Manager Accounts
-
8/13/2019 8 Designing & Development of Salesforce Tanner
10/47
Developing A Sales Organization
Vertical Sales Organization
Several level of management, all reportingupward to the next level
CEO
NS
RSM
ASM
FS
SR
-
8/13/2019 8 Designing & Development of Salesforce Tanner
11/47
Developing A Sales Organization
Horizontal Sales Organization
Number of management level is small and number ofmanager at particular level is large
Chief Sales ExecutiveDistrict Sales Manager District Sales Manager District Sales ManagerDistrict Sales Manager
Karachi Multan Lahore Islamabad
-
8/13/2019 8 Designing & Development of Salesforce Tanner
12/47
Developing A Sales Organization
Centralized
Responsibility and authority are concentrated
at higher level of managementDecentralizedDelegated to lower levels of management
- Structure is ineffective unless the assignment
of decision making to lower levels of salesmanagement is accompanied by a completeauthority to carry out the decision.
-
8/13/2019 8 Designing & Development of Salesforce Tanner
13/47
Developing A Sales Organization
Line and Staff Marketing Organization
A line function is a primary organizational activity andstaff function is a supporting organizational activity.
In a marketing organization selling function is the linecomponent.
Advertising, marketing research, sales training, and
distributor relations are considered as staff roles
-
8/13/2019 8 Designing & Development of Salesforce Tanner
14/47
Developing A Sales Organization
Line Marketing Organization
Vice President for sales
General Sales
Manager
Regional Sales
Manager N
Regional Sales
Manager C
Regional Sales
Manager S
-
8/13/2019 8 Designing & Development of Salesforce Tanner
15/47
Developing A Sales Organization
Line and Staff Marketing Organization
Vice President for Marketing
General Sales Manager
Regional Sales
Manager N
Regional Sales
Manager C
Regional Sales
Manager S
------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales TrainingSales AnalystSales PlanningDistribution
Manager
Marketing
Research Advertising
-
8/13/2019 8 Designing & Development of Salesforce Tanner
16/47
Best way to design a sales structure is to
Determine sales activities that must be performedto reach goals
Create sales structure that affords highest levelsof service to buyers at lowest overall cost
Select, train and manage reps and managersto become experts in their assigned duties
Basic Types of Sales Organization
-
8/13/2019 8 Designing & Development of Salesforce Tanner
17/47
Basic Types of Sales Organization
Sales Structures
Geographic Specialization
Customer Specialization
Product Specialization
-
8/13/2019 8 Designing & Development of Salesforce Tanner
18/47
Basic Types of Sales Organization
Geographic Specialization
Sales people are given the responsibility for directselling activities in a given geographical area
Territories are treated as separate profit center forpurpose of analysis and evaluation for salespersonnel
Is the most commonly used method
Simplicity explains its popularity among salesexecutives
Offers the advantages of adaptability and improvedcoverage
-
8/13/2019 8 Designing & Development of Salesforce Tanner
19/47
Basic Types of Sales Organization
Generalists
Sell every offering to all the customers and prospects in agiven geographic area.
Generalist Benefits: Geographic knowledge
Limited travel costs
No duplication of effort
Sales rep owns market
Disadvantages:
Less effective
Risk of misplaced focus
-
8/13/2019 8 Designing & Development of Salesforce Tanner
20/47
Geographic-Based Structure
-
8/13/2019 8 Designing & Development of Salesforce Tanner
21/47
Basic Types of Sales Organization
Customer and product specialization approaches aremore complex and should only be used if their specificfeatures are critical for firms sales efforts
-
8/13/2019 8 Designing & Development of Salesforce Tanner
22/47
Basic Types of Sales Organization
Customer Specialization
Sales organization in which selling personnel areorganized by particular customer or industry
The companys customer may require specializedknowledge of their industry
Sales force is to focus on customers need and buildthe best possible relationship
Office equipment manufacturers have sales specialistwho deal only with educational institution
-
8/13/2019 8 Designing & Development of Salesforce Tanner
23/47
Basic Types of Sales Organization
Customer Specialization By type of Industry
General Sales Manager
Sales Manager
ElectronicsMkt
Sales Manager
Military Mkt
Sales Manager
Computer Mkt
-
8/13/2019 8 Designing & Development of Salesforce Tanner
24/47
Basic Types of Sales Organization
Customer SpecializationBy Distribution Channel
General Sales Manager
Sales Manager
Exports
Domestic
Sales Manager
-
8/13/2019 8 Designing & Development of Salesforce Tanner
25/47
Basic Types of Sales Organization
Customer Specialization By General type of Customers
General Sales Manager
Sales Manager
Institutions
Sales Manager
Small Business
Sales Manager
Major Accounts
-
8/13/2019 8 Designing & Development of Salesforce Tanner
26/47
Basic Types of Sales Organization
Customer Specialization - Disadvantages
Territories typically overlap.
May be two, three or more sales representatives of thecompany covering the same geographical area, but
serving different clients, which results in often higherselling costs.
The salespeople may not share information about theaccount with each other, so they will be doing unnecessarywork
Lack of flexibility as specialists can not be redeployed intimes of industry downturn
To avoid unwanted costs, customer specialization shouldbe used only if is required by the specialized buyer need
-
8/13/2019 8 Designing & Development of Salesforce Tanner
27/47
Basic Types of Sales Organization
Product Specialization
Sales organization in which selling personnel concentrate theirefforts on particular product lines, brands or individual items
The entire field force is divided by product groupings
Product sales specialists are used when products complexitylimits other options
High tech companies must have product specialists whounderstand the specialized needs of the customer and can usetheir detailed product knowledge to identify and develop
specific applications(Pharmaceutical companies have product specialists for specificcustomers)
-
8/13/2019 8 Designing & Development of Salesforce Tanner
28/47
Basic Types of Sales Organization
Product Specialization
General Sales Manager
Sales Manager
Product C
Sales Manager
Product B
Sales Manager
Product A
-
8/13/2019 8 Designing & Development of Salesforce Tanner
29/47
Basic Types of Sales Organization
Product Specialization
Disadvantages
Territories typically overlap. Two or more sales reps from the same
company will call on the same customer
Expensive duplication of sales efforts
-
8/13/2019 8 Designing & Development of Salesforce Tanner
30/47
Basic Types of Sales Organization
Product specializationis most effective when vast knowledgeis required to sell the product or service you are taking to market.
Examplescan be found in the High-tech and medical fields.
Specialization by selling activityis found in many industries. Itis illustrated by the delineation between the Hunter and Farmerroles. Hunters typically focus on new logo acquisition, whilefarmers cultivate current customer relationships to drive revenuegrowth and minimize churn.
Specialization by industry verticalis recommended when a
sales professional with deep industry knowledge represents acompetitive advantage over a generalist rep with similar offerings.
-
8/13/2019 8 Designing & Development of Salesforce Tanner
31/47
Basic Types of Sales Organization
Benefits of Specialization:
Typically more Effective
Knowledge of a Product, Activity Strategic Focus
Role Clarity
Customer Focus
Disadvantages:
More costly
Increase travel time
Customer confusion
-
8/13/2019 8 Designing & Development of Salesforce Tanner
32/47
Indirect Sales Channels
Independent sales representatives or agencies used by acompany in place of its own field sales force
- Dealers, Agents, Brokers
Independent reps are an effective, low cost way to open
up new markets
- Established contacts in local market area
- In depth territory knowledge
- Long term customer relationship- Community goodwill, company cant acquire on its own
-
8/13/2019 8 Designing & Development of Salesforce Tanner
33/47
Indirect Sales Channels
Independent sales representatives or agencies used by acompany in place of its own field sales force
- Dealers, Agents, Brokers
Mostly, IBM sold its total product range (computers totypewriters) through their own field force
Minicomputers and microcomputers with smaller profitwere sold through indirect sales channels
Most suitable for small companies with limited resources
-
8/13/2019 8 Designing & Development of Salesforce Tanner
34/47
Relations With Other Departments
Key Concern of Sales Manager
Relation with other departments
As per marketing concept, all business activities
should be coordinated to satisfy customer need
Sales department is the key link, so coordinatingthe sales effort with other departments is absolutelyessential
-
8/13/2019 8 Designing & Development of Salesforce Tanner
35/47
Relations With Other Departments
Two types of departments sales MUST have goodworking relationship
One, connected with marketing activities, advertising, marketingresearch, sales promotion, product management
Second, those with non marketing functions such as HR,manufacturing and finance
Top management is responsible for coordinating the activity of all thedepartments with in a company
Athorough understanding of other departments functions, and
how these relates to the sales efforts, is required Coordination may be achieved through policies, written
communications, meetings and similar formal management activities
Successful coordination between departments often involve informalcommunications as well
-
8/13/2019 8 Designing & Development of Salesforce Tanner
36/47
Relations With Other
Relation with other marketing function
Marketing mix
Combination of the various techniques used to satisfy customersneeds and to stimulate sales
Coordination between various elements of the marketing mix isessential
Most companies try to achieve this by requiring the heads of allmarketing , including sales to report to a top marketing executive
Special organizational structure such as product management are
also used to coordinate sales with other marketing functions
-
8/13/2019 8 Designing & Development of Salesforce Tanner
37/47
Relations With Other
Relation with other marketing function
Advertising
Relation between sales and advertising are of special concern
Both form of promotion have the same purposeto inform the publicand persuade people to buy
Sales manager must aware of the advertising departments plansand activity, so that sales activity can be complemented
AdvertisingA good source of sales lead
Salespeople can provide feedback on advertising
-
8/13/2019 8 Designing & Development of Salesforce Tanner
38/47
Relations With Other
Relation with Non marketing Departments
Research and Development
Most companies have R&D department
May be a separate staff department or responsibility may beassigned to production or marketing
Primary responsibility or function is to perform basic research andengineering activity needed to develop new products and improveexisting
Sales department can assist R&D efforts in two primary ways
1. Salespeople are excellent sources of new product and productmodification
2.Salespeople have valuable insight into whether or not a newproduct will meet customer need
-
8/13/2019 8 Designing & Development of Salesforce Tanner
39/47
Relations With Other
Relation with Non marketing Departments
Research and Development
Relationship is crucial in high-tech firms
Field sales managers find themselves dealing with many tasks
Issues, as how headquarter staff should interact with field salesmanagement, final customers and whether sales people should betrained on each product technology?
To solve these problems, high-tech companies have developedaccount control concept authority and responsibility for handlingeach account rests with field sales management
Product specialist accompany salespeople when specific productknowledge is needed
-
8/13/2019 8 Designing & Development of Salesforce Tanner
40/47
Relations With Other
Relation with production
Function is to prepare the product for sale
Production departments concerns are minimizing cost
through standardization, long & continuous production run,long production lead time
Sales executive want many types of products, frequentproduct changes, customers special order & shortproduction lead time
Best way is JOINT PLANNING
-
8/13/2019 8 Designing & Development of Salesforce Tanner
41/47
Relations With Other
Relations with HR
Responsible for the people, or human resources
The unique aspects of managing people who sell often leadto conflict s between sales and human resource manager
HR do not understand the problems involved in managingpeople who are located away from the home office.
Sales managers/departments themselves handle the morecomplex tasks of selecting , training, developing & evaluatingtheir own personnel.
However, sales manager often need to consult HR for guidancefor rapidly changing issues, health and safety. A sales managerwould be unwise not to take advice from expert
-
8/13/2019 8 Designing & Development of Salesforce Tanner
42/47
Relations With Other
Relation with FinanceThree major areas
Budgeting
- Sales department provides short and long range sales estimates asthe basis of financial planning & budgeting
Cost control
- Accounting specialist can assist sales managers in their efforts tocontrol costs, by providing data for selling cost analysis
Credit
- Credit plans are major concerns for sales as well as finance. Salesexecutive should have input into establishing credit policies. Salespeople can also provide current credit status information
-
8/13/2019 8 Designing & Development of Salesforce Tanner
43/47
Major Trends in Sales Organizations
Changing Trend
Traditional forms of sales organization have changed their approach
In search of new and better ways to serve their markets
For Consumer goods & service companies, the new approaches
involve product manager form of organization
Industrial manufacturer are looking closely at strategies that will helpthem adapt to change buying behavior and develop more specializedsales force
For many companies, the major challenge is change from a
Product To Customer Driven Orientation
-
8/13/2019 8 Designing & Development of Salesforce Tanner
44/47
Major Trends in Sales Organizations
Telemarketing - Use of telecommunication technology in personalselling
Direct Marketing
An emerging form of promotion and distribution that combineselement of advertising and personal selling
Approach that bypasses intermediaries to deliver goods and servicesdirectly from seller to buyer
Greatest strength of direct marketing is its ability to deliver individualselling message to specific prospects or customers with affordablecost.
Development/maintenance of customer data base is the key
-
8/13/2019 8 Designing & Development of Salesforce Tanner
45/47
-
8/13/2019 8 Designing & Development of Salesforce Tanner
46/47
National Account Management
A special sales force is dedicated to obtaining & maintaining majoraccounts ( 50 to 70% sales)
A customer that involves several people in the buying process before
a sales takes place
A customer that purchases in significant volume, both in dollar andas a %age of suppliers total sales
A customer that desires a long term cooperative working relationshipwith company or supplier
A customer that expects specialized attention and services
-
8/13/2019 8 Designing & Development of Salesforce Tanner
47/47
THANKS