Group : Phantom

Breakdown method
Divide forecasted sales revenue by average sales dollars
per salesperson

Workload method
1.Compute total sales call workload
2.Determine amount of work performed by each rep
3.Factor in additional work responsibilities
Sales Management: Shaping Future Sales Leaders
 Depends on physical boundaries to organize sales
Geographical force with customer accounts
Sales Structure Interacts with buyers as generalists

Sales activities organized around related product

Product lines or manufacturing divisions
Sales Structure Interacts with buyers as specialists

Reps assigned to customers based on markets or

Market how product is sold
Sales Structure Reps learn more about customers specific
business needs and offers customized solutions
 Size
Product
Industry or market
Purchasing status
 Key Accounts

80/20 Rule
 Use Existing Force Assign Execs Create Separate
Sales force structure is Assigning sales and Create separate sales
simplified marketing executives to structures to serve most
All accounts are manage key accounts important customers
managed under a single makes sense for smaller Integrates marketing and
organizational structure firms that cannot afford sales for key accounts
separate sales effort under one organizational
structure

CONs CONs CONs

Reps may take short- Can take a lot of time, Establishing distinct sales
term view leaving less time for channels for major accts
Reps may not other duties, like is more costly
understand broader, managing sales force Duplication of effort
overall needs of key acct Financial viability if key
accts lost
Telemarketing
Incoming: firm employs
advertising and promo
messages to end-users to
pull or create buyer
demand to call an 800
number and consult with
in-house rep
Outgoing: pushing a
firms product line by
calling current or potential
customers to try to
uncover needs and close
the sale
Computerized
Generated via Internet and
telephone
Internet sales process
varies greatly
Telemarketing is legal, but
unwanted and intrusive
telemarketing calls are
likely to negatively impact
an existing or potential
business relationship
 Line Organization Line and Staff Structure
All salespeople, from highest to lowest Using a line structure for core sales
levels, report to a single manager functions and placing support activities
(sales training, customer service) into
Advantages centers or departments outside of the
Chain of command is clear line structure
Actions can be implemented quickly
and easily through firms line structure Geographical, product, and market
sales force structures are examples of
Disadvantages Line and Staff Sales Structure
As firms adopt customer relationship
strategies, reps need greater authority
to make quick decisions to keep
customers satisfied
To make quicker decisions sales
organization must be flattened
 Goal divergence
Domain dissension
Reality perceptions
Abuse of power
 Break-even analysis: compare fixed and variable costs
associated with the two types of sales representation
 Salesperson
When its important to
control sales effort,
product or related
technology is new, buyers
need high level of service
Company exerts greater
control over sales force
efforts
Greater control over who
is hired
Sales agent
When potential sales
revenue is low in a
territory
When revenue will take
years to become
substantial
When qualified sales
agents already operate in
the area
When its not feasible for
company sales force to
cover entire market (e.g.,
National Semiconductor,
Advanced Micro Systems)