2.organising the sales effort

7/31/2019 2.Organising the Sales Effort

1/51


2/51


3/51

Market Potential

Market Identification: Who buys, whouses, who else could use

Market Motivation: Why do people buy ,

why do people not buy

Presentation: How to present, whatappeals to use


4/51

Sales Potential, SalesForecasting

Sales Potential: Share of total marketpotential the company could obtain

Sales Forecast: Sales volume expected

based on past results


5/51

Sales Forecast

Jury of executive opinion

Delphi Technique

Poll of Sales Force Opinion

Poll of Distribution Channel Members

Projection of Past Sales

Survey of Customers Buying Plans Regression Analysis, Econometric

Model Building


6/51

Questions for Discussion

How will you do a sales forecast foroffice automation and consumerproducts sold predominantly through

dealers How will you do a sales forecast for

industrial products that are sold through

the companys sales force responding tocustomer enquiries


7/51

Office Automation &Consumer Products Dealer Survey

Competitor Survey

Sales Force Feedback

State of the economy

Improvements and Innovations in ownproduct range


8/51

Industrial Products

Industry Trends

Industry Jury of Executive Opinion

Sales Force feedback

Past performance


9/51


10/51

Product Policy-What to Sell

Product line Policy: Changing,Simplifying, Diversifying

Product Design Policy

Product Quality and Service Policy


11/51

Marketing Channels

Volume

Costs

Profit Potential


12/51

Policy on Distribution Intensity

Mass Distribution

Selective Distribution

Exclusive Agency Distribution


13/51

Pricing Policies

Relative to competition

Relative to costs

List Pricing and Discounts

Geographic pricing policies

Price Leadership

Product Line Pricing Policy Competitive Bidding Policy


14/51


15/51

Work Load Method

Hours reqd with customer per year = X

Hours available for one salesperson formeeting customer = Y

No. of Salespersons needed = X/Y


16/51

Workload Method-Exercise

Panaromics target is to sell 100 units of anindustrial product this year

Its conversion ratio is 25%

A sales engineer has to spend 30 hourswith each customer irrespective of whetherthe sale is made

The total time available to meet customers

is 600 hours per sales engineer per year How many sales engineers will Panaromic

need


17/51

Workload Method

No. of Prospects needed= 100/.25 = 400

No. of hours per prospect = 30

Total hours with customer = 400 * 30 =12000

Hours per Sales Engineer per Year =600

No. of Sales Engineers needed =

12,000/ 600 = 20


18/51

Sales Potential Method

Sales Forecast/ Target = Rs. 100 Cr.

Sales achievable by one Salesperson =Rs. 2 Cr.

Salesperson Turnover = 10%


19/51

Sales Potential Method

Sales Forecast/ Target = Rs. 100 Cr.

Sales achievable by one Salesperson =Rs. 2 Cr.

Salesperson Turnover = 10%

Salespersons required = (100/2) * 1.1 =55


20/51

Additions to Salesforce

Estimated Requirement = 30

No. of Salespersons on rolls = 20

No. likely to get promoted, resign, retire= 5

No. likely to join in normal course = 4

Additional number to be recruited =


21/51

Additions to Salesforce

Estimated Requirement = 30

No. of Salespersons on rolls = 20

No. likely to get promoted, resign, retire= 5

No. likely to join in normal course = 4

Additional number to be recruited =

30 20 + 5 - 4 = 11


22/51

Staffing and ManpowerPlanning

No. ofCustomers

Frequency/week

Weeks Workload

(a) (b) (c) (d= a*b*c)

A 390 2 52 40560

B 650 1 52 33800C 260 .5 52 6760

Total workload= 81120, no. of salespersons= 81120/6*250Calls per day= 6, Days per year= 250No. of salespeople required= 54


23/51

Staffing and ManpowerPlanning

No. ofCustomers

Frequency/week

Weeks Workload

(a) (b) (c) (d= a*b*c)

A 500 3 52 78000

B 700 2 52 72800C 300 1 52 15600

Total workload= 166400, no. of salespersons= 166400/6*250Calls per day= 8, Days per year= 250No. of salespeople required= 83


24/51


25/51

Purpose of the SalesOrganisation

To permit development of specialists

To assure that all necessary activitiesare performed

To achieve coordination and balance

To define authority

To economise on executive time


26/51

Setting up a sales organisation

Defining Objectives

Determination of activities and theirvolume of performance

Grouping activities into positions

Assignment of personnel to positions

Provision for co-ordination and control


27/51

Basic types of SalesOrganisation Structures

Line Sales Organisation

Line and Staff Sales DepartmentOrganisation

Functional Sales Organisation

Committee Sales Organisation


28/51

Schemes for dividing lineauthority

Geographic Grouping

Product Grouping

Industry Grouping

Marketing Channel Grouping


29/51

Line Structure-GeographicGrouping

Salespeople

Assistant Sales

Manager

Division 1

Salespeople

Assistant Sales

Manager

Division 2

Salespeople

Assistant Sales

Manager

Division 3

Office Staff

Assistant Sales

Manager

Office

Sales Manager

General Manager


30/51

Line Structure-IndustryGrouping

Salespeople

Assistant Sales

Manager

Division 1

Salespeople

Assistant Sales

Manager

Division 2

Salespeople

Assistant Sales

Manager

Division 3

Office Staff

Assistant Sales

Manager

Office

Sales Manager

General Manager


31/51

Line Structure-ProductGrouping

Salespeople

Assistant Sales

Manager

Division 1

Salespeople

Assistant Sales

Manager

Division 2

Salespeople

Assistant Sales

Manager

Division 3

Office Staff

Assistant Sales

Manager

Office

Sales Manager

General Manager


32/51

Line Structure-ChannelGrouping

Salespeople

Assistant Sales

Manager

Division 1

Salespeople

Assistant Sales

Manager

Division 2

Salespeople

Assistant Sales

Manager

Division 3

Office Staff

Assistant Sales

Manager

Office

Sales Manager

General Manager


33/51

Line Staff Structure

Sales

Personnel

Product 1

Sales

ManagerProduct 1

Sales

PersonnelDirector

Director

of SalesTraining

Director

of SalesPromotion

Director

of SalesAnalysis

Sales

Personnel

Product II

Sales

ManagerProduct II

General

Sales Manager


34/51

Line Staff Organisation


35/51

Functional Organisation


36/51

Functional Organisation


37/51

Panaromic OrganisationStructure By Product Group

IndustrialProducts

Group

MediaProducts

Group

OfficeAutomation

Group

Air Conditioning

Group

Consumer

Product Group

Consumer

ElectronicsGroup


38/51

Panaromic OrganisationStructure By Channel

InstitutionalSales Group

Dealer SalesGroup


39/51

Matrix Structure

Industrial ProductsGroup

Media Products Group

Office AutomationGroup

Air Conditioning

Group

Consumer ProductGroup

Consumer ElectronicsGroup

Dealer Sales Group

Institutional SalesGroup

ManagerInstitutional Sales

ManagerDealer Sales


40/51


41/51

Objectives of ManufacturerDistributive Network Co-operation

Loyalty to the manufacturer

Appraisal of manufacturers policy &

implementation

Analysis of communication systems

Sti l ti G t S lli


42/51

Stimulating Greater SellingEffort Changing Policies

Sharing Promotional Risk with Dealers

Incentives

D l i M i l


43/51

Developing ManagerialEfficiency in Dist. Orgns. Dealer Training Programs

Assistance in Sales Force Management

Assistance in General Management

Shelf Space Allocation

Missionary Sales Personnel


44/51

Identifying Final Buyer

Local Advertising

Point of Purchase Identification


45/51

C di i i h h


46/51

Coordination with otherFunctions

Advertising

Marketing Information

Service

Physical Distribution

Production

R & D


47/51

Question for Discussion

As Sales Manager for Premier EngineeringCorporation what information Exchange wouldyou require with each of the following functions

Advertising

Marketing Information

Service

Physical Distribution

Production

R & D

C di ti ith th


48/51

Coordination with otherFunctions

HR and Personnel

Finance and Accounts

Public Relations

Legal


49/51

Questions for Discussion

As Sales Manager of Premier EngineeringCorporation what information exchangewould you require with each of the

following functions HR and Personnel

Finance and Accounts

Public Relations Legal


50/51

External Bodies

End users

Industry Associations

Government Agencies


51/51

2.organising the sales effort

Documents