Market Potential

Market Identification: Who buys, who uses, who else could use Market Motivation: Why do people buy , why do people not buy Presentation: How to present, what appeals to use

Sales Potential, Sales Forecasting

Sales Potential: Share of total market potential the company could obtain Sales Forecast: Sales volume expected based on past results

Sales Forecast
Jury of executive opinion Delphi Technique Poll of Sales Force Opinion Poll of Distribution Channel Members Projection of Past Sales Survey of Customers Buying Plans Regression Analysis, Econometric Model Building

Questions for Discussion

How will you do a sales forecast for office automation and consumer products sold predominantly through dealers How will you do a sales forecast for industrial products that are sold through the companys sales force responding to customer enquiries

Office Automation & Consumer Products

Dealer Survey Competitor Survey Sales Force Feedback State of the economy Improvements and Innovations in own product range

Industrial Products
Industry Trends Industry Jury of Executive Opinion Sales Force feedback Past performance

Product Policy-What to Sell

Product line Policy: Changing, Simplifying, Diversifying Product Design Policy Product Quality and Service Policy

Marketing Channels
Volume Costs Profit Potential

Policy on Distribution Intensity

Mass Distribution Selective Distribution Exclusive Agency Distribution

Pricing Policies
Relative to competition Relative to costs List Pricing and Discounts Geographic pricing policies Price Leadership Product Line Pricing Policy Competitive Bidding Policy

Work Load Method

Hours reqd with customer per year = X Hours available for one salesperson for meeting customer = Y No. of Salespersons needed = X/Y

Workload Method-Exercise

Panaromics target is to sell 100 units of an industrial product this year Its conversion ratio is 25% A sales engineer has to spend 30 hours with each customer irrespective of whether the sale is made The total time available to meet customers is 600 hours per sales engineer per year How many sales engineers will Panaromic need

Workload Method
No. of Prospects needed= 100/.25 = 400 No. of hours per prospect = 30 Total hours with customer = 400 * 30 = 12000 Hours per Sales Engineer per Year = 600 No. of Sales Engineers needed = 12,000/ 600 = 20

Sales Potential Method

Sales Forecast/ Target = Rs. 100 Cr. Sales achievable by one Salesperson = Rs. 2 Cr. Salesperson Turnover = 10%

Sales Potential Method

Sales Forecast/ Target = Rs. 100 Cr. Sales achievable by one Salesperson = Rs. 2 Cr. Salesperson Turnover = 10% Salespersons required = (100/2) * 1.1 = 55

Additions to Salesforce
Estimated Requirement = 30 No. of Salespersons on rolls = 20 No. likely to get promoted, resign, retire =5 No. likely to join in normal course = 4 Additional number to be recruited =

Additions to Salesforce
Estimated Requirement = 30 No. of Salespersons on rolls = 20 No. likely to get promoted, resign, retire =5 No. likely to join in normal course = 4 Additional number to be recruited = 30 20 + 5 - 4 = 11

Staffing and Manpower Planning

No. of Customers (a) A 390 Frequency /week (b) 2 Weeks (c) 52 Workload (d= a*b*c) 40560

B
C

650
260

1
.5

52
52

33800
6760

Total workload= 81120, no. of salespersons= 81120/6*250 Calls per day= 6, Days per year= 250 No. of salespeople required= 54

Staffing and Manpower Planning

No. of Customers (a) A 500 Frequency /week (b) 3 Weeks (c) 52 Workload (d= a*b*c) 78000

B
C

700
300

2
1

52
52

72800
15600

Total workload= 166400, no. of salespersons= 166400/6*250 Calls per day= 8, Days per year= 250 No. of salespeople required= 83

Purpose of the Sales Organisation

To permit development of specialists To assure that all necessary activities are performed To achieve coordination and balance To define authority To economise on executive time

Setting up a sales organisation

Defining Objectives Determination of activities and their volume of performance Grouping activities into positions Assignment of personnel to positions Provision for co-ordination and control

Basic types of Sales Organisation Structures

Line Sales Organisation Line and Staff Sales Department Organisation Functional Sales Organisation Committee Sales Organisation

Schemes for dividing line authority

Geographic Grouping Product Grouping Industry Grouping Marketing Channel Grouping

Line Structure-Geographic Grouping

General Manager Sales Manager

Assistant Sales Manager Division 1

Assistant Sales Manager Division 2

Assistant Sales Manager Division 3

Assistant Sales Manager Office

Salespeople

Salespeople

Salespeople

Office Staff

Line Structure-Industry Grouping

General Manager Sales Manager

Assistant Sales Manager Division 1

Assistant Sales Manager Division 2

Assistant Sales Manager Division 3

Assistant Sales Manager Office

Salespeople

Salespeople

Salespeople

Office Staff

Line Structure-Product Grouping

General Manager Sales Manager

Assistant Sales Manager Division 1

Assistant Sales Manager Division 2

Assistant Sales Manager Division 3

Assistant Sales Manager Office

Salespeople

Salespeople

Salespeople

Office Staff

Line Structure-Channel Grouping

General Manager Sales Manager

Assistant Sales Manager Division 1

Assistant Sales Manager Division 2

Assistant Sales Manager Division 3

Assistant Sales Manager Office

Salespeople

Salespeople

Salespeople

Office Staff

Line Staff Structure

General Sales Manager

Sales Manager Product 1

Sales Personnel Director

Director of Sales Training

Director of Sales Promotion

Director of Sales Analysis

Sales Manager Product II

Sales Personnel Product 1

Sales Personnel Product II

Line Staff Organisation

Functional Organisation

Functional Organisation

Panaromic Organisation Structure By Product Group

Industrial Products Group Media Products Group Office Automation Group

Air Conditioning Group

Consumer Product Group

Consumer Electronics Group

Panaromic Organisation Structure By Channel

Institutional Sales Group

Dealer Sales Group

Matrix Structure
Manager Institutional Sales Manager Dealer Sales Industrial Products Group Institutional Sales Group

Office Automation Group

Media Products Group Dealer Sales Group Air Conditioning Group

Consumer Product Group Consumer Electronics Group

Objectives of Manufacturer Distributive Network Co-operation

Loyalty to the manufacturer Appraisal of manufacturers policy & implementation Analysis of communication systems

Stimulating Greater Selling Effort

Changing Policies Sharing Promotional Risk with Dealers Incentives

Developing Managerial Efficiency in Dist. Orgns.

Dealer Training Programs Assistance in Sales Force Management Assistance in General Management Shelf Space Allocation Missionary Sales Personnel

Identifying Final Buyer

Local Advertising Point of Purchase Identification

Coordination with other Functions

Advertising Marketing Information Service Physical Distribution Production R&D

Question for Discussion

As Sales Manager for Premier Engineering Corporation what information Exchange would you require with each of the following functions Advertising Marketing Information Service Physical Distribution Production R&D

Coordination with other Functions

HR and Personnel Finance and Accounts Public Relations Legal

Questions for Discussion

As Sales Manager of Premier Engineering Corporation what information exchange would you require with each of the following functions HR and Personnel Finance and Accounts Public Relations Legal

External Bodies
End users Industry Associations Government Agencies