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

The Increasing Importance Of Sales Force

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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.

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

Line and Staff sales organization

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

Cost comparison between a company sales force and independent agents

Geographic Sales Organization

Sales force organized by Product Type

Sales force organized by Customer Type

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 Selling center

Team selling

Multi-level selling Co-marketing alliances Logistical alliances and computerized ordering

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

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

Some Additional Questions

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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?

Six Cs of finding a good sales representative