SALES ORGANIZATION
▪ Structure
▪ Product or Service Related Factors
▪ Organization Related Factors
▪ Marketing Mix Related factors
▪ External factors
▪ From Top Down Command and control
driven to horizontal and customer driven
ORGANIZATIONAL DESIGN
▪ Line Organization
▪ Organization Design by Territory
▪ Organizational
function
design
by
management
▪ Organizational Design by product
▪ Organizational Design by customer
▪ Combined Organizational Design
NUMBER OF SALES PEOPLE
▪ Affordability Method
▪ Incremental Method
▪ Workload Method
RECRUITMENT AND
SELECTION
▪ Degree of Aculturization
▪ Performance= Ability * Motivation
▪ Planning for Recruitment and Hiring
process
RECRUITMENT
▪ Strategic Position Analysis
N=(S/P)*(1+T)
N: Number
S: Sales Forecast
P: Present Average sales
T: Sales force turnover
• Determination of performance measures
• Identification of Critical Success factors
• Performance measure dimensions
• Operationalization of performance
RECRUITMENT
▪ Job Analysis
▪ Tasks duties and responsibilities
▪ KSA Matrix(Knowledge, Skills and Abilities)
▪ Job Qualification and Job Descriptions
▪ Aptitude, skills, knowledge and personality
traits required to perform the job successfully
RECRUITMENT
▪ Sources
▪ Internal
▪ Lateral or upward moves
▪ Interns (Part time)
▪ Employee referral programs
▪ External
▪ Other industry sources (Hire war)
▪ Campus
▪ Advertising
▪ Agencies
▪ Walk-ins
▪ Networking
▪ Web sources
SELECTION PROCEDURE
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Inviting Blank Application
Personal Interviews
Reference Checks
Physical Examinations
Psychological Tests
I/Q
Personality
Aptitude and Skills
Determination of terms of service
Appointment
Initial Orientation
FORMAT OF STRUCTURED
INTERVIEWS
▪ Situational
▪ Job Knowledge
▪ Salesperson’s Requirement
SOCIALIZATION
▪ Anticipatory Stage(RJP)
▪ Different kinds of expectations
▪ Realistic Job Preview
▪ Encounter Stage
▪ Settling In Stage
SALES FORCE
COMPENSATION
Good Compensation plan
▪ Attract best sales people
▪ Improve the productivity of sales people
▪ Retain quality sales people
CHARACTERISTICS OF
EFFECTIVE COMPENSATION
PLAN
▪ Short term: survival
▪ Long term: Growth and recognition
▪ Equality (similar job should have similar rewards)
▪ Economical to the company
▪ Flexible
FACTORS INFLUENCING
DESIGN
▪ Financial ability to pay
▪ Size of the market
▪ Nature of the product
▪ Demand supply Gap
▪ Going rates
TYPES OF COMPENSATION
PLAN
▪ Financial Compensation
▪ Straight Salary plan
▪ Straight Commission plan
(Risk Compensation plan)
▪ Bonus and Incentives
▪ Combination Plan(Fixed and Variable components)
▪ Drawing Account Plan
▪ Allied Methods(Profit Sharing)
TYPES OF COMPENSATION
PLAN
▪ Non Financial Compensation
▪ Promotions
▪ Recognition
▪ Fringe Benefits
▪ Medical Benefits
▪ Retirement benefits
▪ Life Insurance
▪ Perks
▪ Car, housing, driver, gardener, educational opportunities