The document discusses key aspects of a sales force, including defining a sales force as implementing sales strategy through selecting, training, motivating, and supporting salespeople. It outlines objectives of a sales force such as increasing sales volume and developing new prospects. The document describes different sales force structures including territorial, product, market, and complex structures. It also discusses compensating a sales force through elements like fixed salary, variable commissions/bonuses, expense allowances, and benefits. Management must decide an appealing compensation plan that both motivates and directs a salesperson's work.
2. SALES FORCE - DEFINITION
implementation of sales strategy through
selecting, training, motivating, and
supporting the sales force, setting sales
revenue targets,
3. SALES FORCE
The salesperson’s role is a key one in the
organization.
The high cost of maintaining a sales force means
that management is especially interested in how to
efficiently organize this vital element.
These are:
(a) Designing sales force strategy and structure.
(b) Recruiting and selecting salespeople.
(c) Training salespeople.
(d) Compensating salespeople.
(e) Supervising salespeople.
(f) Evaluating salespeople.
4. OBJECTIVES OF SALES FORCE
Increase sales volume
Introduce a new product
Reducing selling costs
Offset competitive promotions
Improve working habits
Develop new prospect lists etc.
5. SALES FORCE STRUCTURES
Territorial structure is used where every sales
representative is assigned specific geographical
area. This structure is preferred for building
relationships with locals.
Product structure is used for complex and un-
related product portfolio. Here the sales people are
directly associated with research and development
of the products.
Market structure is used if the companies are
operating different industry or market segments.
Every sales force specializes in a definite market
and helps push a product efficiently across the
given market. However, the disadvantage would
arise if customers are located over a wide
geographical area.
6. Complex structure is used when companies are in
business of selling complex product to different
customer across a large geographical area. Here
sales force structure is a combination of other
structures discussed.
Once the structure is designed companies need to
make a decision with respect to the size of the
sales force. The size of the sales force is
dependent on the market size and number of
customers.
7. COMPENSATING SALES FORCE
To compensate sales force, a company must have an
appealing compensation plan.
Compensation is made up of the several elements:
1). A fixed amount, usually a salary, gives the
salesperson a more stable income.
2). A variable amount, which might be commissions
or bonuses, rewards a sales- person for
greater effort.
3). Expense allowances (which repay salespeople
for job-related expenses) let salespeople undertake
needed and desirable selling efforts.
4). Fringe benefits provide job security and
satisfaction.
8. Management must decide which of these elements
(and which combination or amount) makes the most
sense for each sales job.
The compensation plan can both motivate and
direct a salesperson’s work. Basic methods include:
1) Straight salary
2) Straight commission
3) Salary plus bonus
4) Salary plus commission.