SMU MBA ASSIGNMENTS

Answer  :  Different types of Sales Organization

 

1) Organizing the Sales Force

:An effective sales force is a powerful asset for any company. Doctors & physicians in United States have consistently ranked Pfizer’s sales force as one of the best in the pharmaceutical industry. As a result, when Parke-Davis launched its blockbuster cholesterol-lowering drug, Lipitor, it entered into an alliance in which Pfizer’s sales force helped selling the drug to physicians throughout the United States. A company’s management process is fundamentally affected by the firm’s overall business strategy and its strategy for accessing its target markets. The relationship between business strategies, a firm’s marketing strategy, and a firm’s strategic sales force program is discussed in this unit. Sales force organization is primarily a function of properly sizing the sales organization to assure that customers and prospects receive appropriate coverage, company products get proper representation, and the sales force is stretched but not overworked. The appropriate planning of the sales force will also depend on the size of the opportunity a firm faces and its expected sales level.

2)Roles & Structure of the Sales Force:

To be successful and produce profitable results, the sales force must implement a firm’s business strategy and market access strategy. In other words, strategic plans are implemented through the activities and behaviours of the sales force. Key sales force behaviours include calling on certain types of customers and prospects, managing customer relationships and creating value for individual customers. The role of the sales force in implementing a firm’s market access strategy is very important. To meet customer needs efficiently and effectively and to sell the firm’s products and services, a sales force must be well organized. Sales force structure decisions influence how customers seethe firm because sales force structure will affect the selling skills and knowledge level required of salespeople. In turn, sales management activities such as compensation, recruitment, training, and evaluation are affected.

 

3) Building Sales Competencies:

Sales managers are responsible for hiring salespeople with the appropriate skills and backgrounds to implement the sales strategy. Good sources must be found for new hires, and those who are weak in these areas must be carefully screened out. In addition to hiring qualified people, salespeople’s competencies are usually developed through training before they are sent into the field. Sales managers are responsible for making sure that training is completed, and they often conduct some of the classes. Most initial training programs are designed to familiarize salespeople with the company’s products, services, and operating procedures, with some time devoted to development of selling skills. Because sales training is expensive, the sales manager is responsible for selecting the most cost-effective methods, location, and materials.1

 

 

4)Leading the Sales Force:

Effective sales managers know how to supervise and lead their salespeople. Sales managers provide leadership by inspiring people to grow and develop professionally, while achieving the revenue goals of the firm. Good leaders provide models of behaviour for employees to emulate, often developing strong mutual trust and rapport with subordinates. Leadership styles vary, but effective leaders are adept at initiating structure — that is, organizing and motivating employees, setting goals, enforcing rules, and defining expectations. In addition to leading the sales force in business results, sales managers are also expected to lead by example in encouraging ethicalbehavior within the sales force. Salespeople are continually confronted with ethical dilemmas. Sales managers use a variety of tools in their efforts to motivate salespeople to work more efficiently and effectively.1

 

5)Goal directed effort:

There are many techniques that have proved to be effective motivators, including sales meetings, quotas, sales contests, and recognition awards. The most powerful motivator for salespeople is often a well-designed compensation package. Money is an important consideration for attracting and motivating people to work hard. A key task for sales managers is to devise an effective mix of salary, bonuses, commissions, expenses, and benefits without putting the firm’s profitability in jeopardy.

 

6) Evaluate the performance of the sales force:

The final step in the sales management process is to evaluate the performance of the sales force and develop the skills of their people. This involves analyzing sales data by account, territory, and product line breakdowns. It also means reviewing selling costs and measuring the impact of sales force activities on profits.

 

 

 

 

 

 

Q.2 Explain different sales strategies.

 

 

 

 

Q.3 What do you mean by compensation? Explain various modes of compensating sales team.

 

 

Q.4 What are the challenges faced by International sales managers?

 

 

 

Q.5 What do you mean by relationship marketing & also explain three types of consumer.

 

Q.6 Assume yourself to be the sales manager of a car showroom. How will you ensure that the selection procedure is smooth and you select right candidates for the job?