EAP LESSON 4 CONTEXTUAL REFERENCE

THREE PRINCIPLES OF SALES FORCE ORGANIZATION

MARIA FERNANDA SAAVEDRA

Stability and Continuity suggests that activities are assigned by position in the organization without regard to talents and preferences of current employees.

THAT REFERS TO STABILITY AND CONTINUITY

CONTEXTUAL REFERENCE N°1

CONTEXTUAL REFERENCE N°2

Coordination and Integration is the integration of activities that deal with customer needs with activities of other departments in the organization, and coordinated with the tasks performed by all salespeople.

With refers to: Activities(Coordination and Integration)/Takes

CONTEXTUAL REFERENCE N°3

New sales people benefit greatly from one-on-one coaching.

One on one refers to: Benefit of a person to another

CONTEXTUAL REFERENCE N°4

Decentralized means field sales managers are empowered, enabled and held responsibility for performing these activities.

These activities refers to: Activities of Sales Force or field sales

CONTEXTUAL REFERENCE N°5

Geographic- this is the most common and least complicated specialization. This means organizing the sales force according to geographic territories with a salesperson assigned to sell all products to all customers within their area.

Their refers to: a Area Geographic

CONTEXTUAL REFERENCE N°6

Product- organizing the sales force around defined product lines. This is commonly used when a company has a vast line of products. An example is 3M, which sells everything from masking tape to medical supplies.

This: Product

CONTEXTUAL REFERENCE N°7

Often the salesperson must possess substantial background and knowledge of the product in order to facilitate customer relations.

The product: Product that is going to sell the sales person

CONTEXTUAL REFERENCE N°8

Manufacturer's representatives are not employees and thus operate free of direct corporate control and they sell complementary and/or competitor's products. In contrast, the company sales force has greater fixed costs, while independent sales agents are compensated with commission.

They refers to: Manufacturer's representatives

CONTEXTUAL REFERENCE N°9

Incremental Approach- this approach states that a new salesperson should be added until the gross profit on new business is equal to the cost of deploying another person. Sales grow because of better service, but the total number of potential accounts does not change. This approach works on the axiom that there is a limit at which selling expenses grow faster than revenues.

Another: the cost of deploying another person. Another refers to: a person

CONTEXTUAL REFERENCE N°10

Hierarchy of authority, which shows a clear, unbroken chain of command which should link every person in an organization with someone a level higher. For example linking each sales associate with a direct manager in which, the sales associate goes to for questions or guidance.

which refers to: hierarchy of authority