How are sales people organized

1
How are sales people organized?

• 1. Geographic Allocation
• Advantages Clear definition of responsibility
• Low travel expenses
• Provides incentive to cultivate local ties
• Clear hierarchy and growth prospects
• Territory Size
• Equal Workload
• Problems with incentives
• Equal Potential
• Problems with effort
• Less profit per branch

2

• 2. Product-wise allocation
• Good for technically complex, unrelated and
  numerous products
• Problem Multiple visits increases sales costs.
• 3. Customer structured
• Problem Extensive travel
• 4. Combination of the above

National Sales Manager Office
Furniture Industrial Copiers Region A B C
Region A B C
Schools Universities
3
How to compute the size.

• 1. Customers grouped into annual sales volume
  categories
• 2. Call frequency desired
• 3. Number of accounts in each class x call
  frequency calls per year
• 4. Average calls per person
• 5. Number of salespersons 3/4

4
Compensation?

• - Fixed Provides stability
• - Variable Incentive
• - Fringe Benefits Security and job satisfaction
• - Allowances Motivates to undertake
  necessary effort
• Fixed
• Advantage Management can alter duties without
  objections
• Easy to administer/less costly
• Disadvantages No incentive
• Requires greater supervision
• Inflexible expense
• Questions about adjustment for
  ability, rising costs, length of service

5

• Variable
• Advantages Incentive
• Expenses vary with sales
• Company can control using different commission
  rates
• Disadvantages Sales do not do unproductive work
• High pressure tactics
  annoy customers
• Costly to administer

6
Bases for commission

• Sales
• Profits
• Margins
• Sales less returns

7
What makes a good salesperson?

• Takes risks
• Mission
• Solve problems, not blame
• Partners and team players
• Learn from rejection
• Practice and preparation

8
Steps in Selling process

• Prospecting and qualifying
• Preapproach
• Approach
• Presentation and demonstration
• Handling objections
• Closing
• Follow-up

9
Handling objections

• 1. Use objection as a reason for buying
• The price is too high.
• Yes, the price is high because we use the
  finest leather
• 2. Postpone
• Let me get back to you on that in a moment.
• 3. Agree and show that objection is unimportant
• I agree the price is high. But if you look at
  the life of the shoe, the price is in fact
  cheaper.
• 4. Probe further
• Why do you think the price is high?
• 5. Ignore the objection
• Sometimes the objection is a stalling mechanism
  and does not really require an answer.
• Best solution is to give more time to the
  buyer.

10
Closing

• 1. Ask for the order
• 2. Review points of agreement
• 3. Offer to help write up the order
• 4. Assume order. Offer a choice on a less
  important dimension
• - Would you like the blue one or the red one.
• - Shall I send one case or two...
• - Would you like the shipment by Monday or
  Thursday...
• 5. Offer incentive to place order now.
• - Offer expires soon...
• - Get an extra 5 if you order now...
• - You get first priority in shipping if you
  order now.