ORGANIZING THE SALES FORCE The Increasing Importance Of

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ORGANIZING THE SALES FORCE

• The Increasing Importance Of Sales Organization
  Decisions
• Purpose Of Sales Organization
• Horizontal Structure Of The Sales Force
• Organizing To Service National Key Accounts
• Vertical Structure Of The Sales Organization
• Startup Of New Sales Force
• Some Additional Question

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The Increasing Importance Of Sales Force

• Organizing activities and management of the sales
  force is a major part of strategic sales planning
• Performance problems arose
• The importance of designing an appropriate
  organizational framework for the sales force as
  an integral part of firms sales program and
  examines issues involved in developing such a
  framework.

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Purpose of Sales Organization

• Division and specialization of labor
• Line organization
• Line and Staff organization
• Stability and Continuity of organizational
  performance
• Co-ordination and integration

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Line and Staff sales organization
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Horizontal Structure of the Sales Force

• Deciding on a company sales force or independent
  agents
• Types of agents
• Manufacturers representatives
• Selling agents
• Deciding when outside agents are appropriate
• Economic criteria
• Control and strategic criteria
• Transaction costs and its analysis
• Geographic organization
• Product organization
• Organization by customer type or market
• Organization by selling function
• The role of telemarketing

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Cost comparison between a company sales force and
independent agents
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Geographic Sales Organization
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Sales force organized by Product Type
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Sales force organized by Customer Type
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Organizing to Service National and Key Accounts

• National or key accounts
• Assigning key accounts to sales executives
• A separate key account division
• A separate sales force for major accounts
• Team selling
• Team selling
• Selling center
• Multi-level selling
• Co-marketing alliances
• Logistical alliances and computerized ordering

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Vertical Structure of the Sales Organization

• Key questions
• How many levels of managers should there be?
• Span of control
• Selling responsibilities
• Sales related functions
• The Impact of new technologies
• Staff support and outsourcing

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Startup Of A New Sales Force

• Start with a strategy
• Appoint an expansion team
• Leverage existing strengths
• Go to the press
• Avoid compensation
• Provide support

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Some Additional Questions

• How many sales people a firm should hire?
• How should these people be deployed?
• How should sales territories be defined?
• What quota, if any, should be assigned to each
  sales territory?

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Six Cs of finding a good sales representative