Sales Management and Business Development

1. Sales management and business
development:
STAFFING AND ORGANISING
Group: 10
Atul Sharma
Anuradha singh
Ritesh kumar singh
Pratikshit Srivastava

2. Concepts of Sales Organisation
 A sales organisation assists the sales manager to
carry out needed tasks efficiently and effectively to
achieve results
 T h e basic concepts of the sales organisation are:
•
•
•
•
•
Degree of centralisation
Degree of specialisation
Line or staff positions
Market orientation
Effective co-ordination

3. Basic Types of Sales Organisations
Sales organisations are generally classified into four
basic types:
1. Line Organization
2. Line and staff organization
3. Functional organization
4. Horizontal organization
We shall discuss main characteristics, advantages,
and disadvantages of each type of sales organisation

4. Line and staff Organization Line Organization

5. Functional Organization Horizontal Organization

6. Geographic Specialization
Product Specialization
Market Specialization
Combination sales Specialization
Basis Of Specialization Within Sales Organizations

7. Geographic Specialisation
Characteristics: salespeople, assigned geographic areas, are responsible for all
selling activities to all customers within assigned areas. Branch sales managers
adjust marketing plan to local needs
Advantages: Better market coverage and customer service, more control over
salesforce, quick response to local conditions &competition
Disadvantages: Limited specialisation of marketing tasks. Hence, it is
combined with product / market salesorganisation
Head-Marketing
Marketing Research
Manager
General Sales
Manager Promotion
Manager
Customer Service
Manager
Branch Sales
Manager-1
Branch Sales
Manager-2
Branch Sales
Manager-3
Branch Sales
Manager-4
Salespeople Salespeople Salespeople Salespeople

8. Product Specialisation
 Two types of product specialisation
(a) Sales organisation with product specialisedsalesforce
(b) Sales organisation with product managers as staffspecialists
Head-Marketing
Marketing Research
Manager
General
Sales Manager
Sales Training
Manager
Promotion
Manager
Area Sales Managers
Product Group ‘A’
Area Sales Managers –
Product Group ‘B’
Salespeople –
Product Gr. ‘A’
Salespeople –
Product Gr. ‘B’

9. HEAD MARKETING
In fig. ‘x’: Characteristics: Salespeople in each product group sell only the products in
that group
Advantage: Each product gets specialised attention from thesalesforce
Disadvantage: Sometimes, more salespeople contact the same customer, resulting in
customer dissatisfaction and highercost
In fig. ‘y’: Characteristics: Each product manager plans and implements marketing
plan, for a productgroup
Advantage: Corrects the problem of duplication calls on a customer bysalespeople
Disadvantage: Lack of product specialisation bysalespeople
Marketing Research
Manager
Promotion
Manager
Product Manager
Product Gr. ‘B’
Product Manager
Product Gr. ‘A’
General
Sales Manager
Area Sales
Managers
Salespeople
Product Specialisation (Continued)

10.  Characteristics: Desirable when customers are classified by type, user industry,
or channel. Salespeople carry out all activities for all products only for specific
customergroups
 Advantages: Meets needs of specific customer groups, implements customer-
centred philosophy of thecompany
 Disadvantages: Geographic duplication, high cost
General Sales
Manager
Sales Manager-
International-
Markets
Sales Manager-
Commercial
Sales Manager-
Consumer Markets
Sales Manager-
Government
Area Sales Mgrs
International
Sales Executives
Area Sales Manager-
Commercial
Salespeople
Area Sales Manager-
Government
Salespeople
Area Sales Mgrs-
Consumer Markets
Salespeople
Market Specialisation

11. Combination Sales Organization
Characteristics: Many firms use some combination of specialisation
organisations, called hybrid or combination sales organisation, with a
view to minimise disadvantages and maximise advantages of
of geographic and market
specialisation organisations
 Figure above shows combination
specialisations
Director – Sales
& Marketing
General Manager
Sales - North
General Manager
Sales - East
General Manager
Sales - South
General Manager
Sales - West
Regional Sales
Mgr. – Govt.
Regional Sales
Mgr. - Dealers
Regional Sales
Mgr. - Commercial
Salespeople Salespeople Salespeople

12. Alternatives for Major Accounts
Major accounts / customers are called by various names
like key accounts, corporate accounts, house accounts
They make up a large share of a firm’s sales volume and
profits
Firms use the following alternative approaches to deal
effectively with them
account• Create a position of major / national
manager
• Use existing territory sales managers
• Create a separate division
• Create a separate salesforce

13. Size of the Salesforce
 How many salespeople needed (or salesforcesize)
to achieve a firm’s sales and profit objectives is a
key decision
Methods available to decide optimumsalesforce
size are as follows:
•
•
•
Workload
Sales potential (or breakdown)
Incremental
 We shall discuss these methods briefly:

14. Workload Method
Assumption: All salespeople have equal workload steps involved
to salesforce size are:
1) Classify customers as per their sales potential
2) Decide time per sales call and call frequencies for each class of
customers
3) Calculate total market workload = (1) x (2) in hours
4) Decide total work time available per salesperson
5) Divide total work time available by different activities per
salesperson in hours

15. Salesforce Staffing
 I t is one of the most challenging and important
responsibilities / activities of sales management
Salesforce Staffing Process includes following stages:
• Planning
• Recruiting
• Selecting
• Hiring
• Socialisation
 We shall briefly discuss each of the above stages

16. • Planning Stage
Step 1
Establishing responsibility
Step 2
Deciding no. of sales people
Step 3
Outline the type of sales
people needed
Step1
finding the sources of sales
recruiter
Step2
Evaluating and selecting
source recruit
Step 3
Contacting candidates
through selected source
Recruiting Stage

17. Finding the Sources of Sales Recruits
Internal Sources
•Employee referral
programmes
• Current employees
• Promotions and transfers
External Sources
•Advertisements in newspapers and
journals / magazines
• The Internet (job sites)
• Educational institutions
• Employment agencies
• Job fairs
• Other companies

18. Evaluating and selecting Recruiting Sources
• Evaluating factorsare:
• Performance rating of salespeople, after 2 years working
• Percentage of sales people retained, after 2years working
• Total cost of recruiting
• Selecting most effective source of recruiting at least cost
• For a new company, selection depends on cost
Selection Salesforce
Major selection tools / stepsare:
• Screening resumes
• Application blank
• Initial interview
• Intensive interview Testing
• Reference check Physical examination

19. Hiring Stage
After completing selection process, a list of candidates to be hired is made
 I n hiring stage, two activities are performed:
(1) The company making the job offer
(2) Persuading the applicant to accept it
Socialisation Stage
 I t is the process through which new salespeople learn values, norms, attitudes,
and behaviour of people working in the firm
Socialisation process starts before the new salesperson accepts the job offer
and continues until the person is assimilated into the company culture
Assimilation is the second stage of socialisation process
Companies have this process, in order to retain new salespeople