4 - organizing the sales force

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    ORGANIZING THE SALES FORCE

    The Increasing Importance Of Sales

    Organization DecisionsPurpose Of Sales Organization

    Horizontal Structure Of The Sales Force

    Organizing To Service National & Key AccountsVertical Structure Of The Sales Organization

    Startup Of New Sales Force

    Some Additional Question

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    The Increasing Importance Of Sales Force

    1.

    Organizing activities and management of the salesforce is a major part of strategic sales planning

    2. Performance problems arose

    The importance of designing an appropriate

    organizational framework for the sales force as anintegral part of firms sales program and examinesissues 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 independentagents 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 companysales 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 accountsAssigning 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

    1. How many sales people a firm should hire?

    2. How should these people be deployed?

    3. How should sales territories be defined?

    4. What quota, if any, should be assigned toeach sales territory?

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    Six Cs of finding a good sales representative