Part III SALES FORCE ACTIVITIES

1. Part IIISALES FORCE ACTIVITIES Chapter 6: Sales Force Organization

2. Sales Force Organization: Impact Structure Compensation Sales Management Role Performance Evaluation Training Program Recruiting/ Selection Figure 6-1: Decisions Affected by Sales Force Organization

3. Sales Force Organization: Topics

4. Strategic Account Programs: Survey Results Today In Five Years 49% 45% 24% 20% 18% 17% 16% 11% Figure 6-2: How Sales Forces are Organized

5. Sales Force Organization: Generalist Figure 6-3: Geographical Sales Organization National Sales Manager Central Regional Sales Manager Eastern Regional Sales Manager Western Regional Sales Manager Northeast District Sales Manager Mid-Atlantic District Sales Manager Southern District Sales Manager Connecticut Rhode Island Maine New Jersey Pennsy-lvania North Carolina South Carolina New York Vermont Delaware District of Columbia Georgia Alabama New York Massachusetts Virginia Maryland Mississippi Florida

6. Sales Force Organization: Product Specialists Figure 6-4: Product Specialized Sales Force National Sales Manager Eastern Regional Sales Manager Northeast District Sales Manager Mid-Atlantic District Sales Manager Southern District Sales Manager Printer Equipment Salesperson Server Salesperson Minicomputer Salesperson Programmable Calculator Salesperson Copier Salesperson Large Computer Salesperson

7. Advantages Allows focusing of sales effort Expertise developed in limited number of products Disadvantages More expensive to operate May result in duplication of sales calls to clients Product Specialist Organization: Analysis

8. Sales Force Organization: Customer Specialists Figure 6-5: Customer Specialized Sales Force National Sales Manager National Accounts Manager Manager of Export Sales Eastern Regional Sales Manager Northeast District Sales Manager Mid-Atlantic District Sales Manager Southern District Sales Manager Salesperson For Educational Institutions Salesperson for Retail Customers Salesperson for Government Agencies Salesperson for Bank Customers Salesperson for Manufacturers Salesperson for Wholesale Customers

9. Advantages Consistent with market driven strategy Salespeople become customer experts Customer segments receive appropriate resources Disadvantages May conflict with marketing organization Product expertise may be lacking More expensive Customer Specialist Organization: Analysis

10. Sales Force Organization: Functional Specialists Figure 6-6: Functional Specialization Division Marketing Manager Industry Sales Manager SystemsManager Administrative Manager Account Executives (Salespeople) System Reps(Technical Support) Market Administrative (Training & Installation)

11. Figure 6-7: Comparing Sales Organization Structures

12. Strategic Accounts: What is Different about Strategic Accounts? Figure 6-8 : Changes in Joint Account Planning

13. Existing Sales Force Low risk; little change Management Sell National Accounts Keeps management close to customer Separate Sales Force More aggressive; more expensive; alternative to sales management for promotion for sales staff Sales Teams Use when selling process is complex Strategic Accounts: Alternative Organization Models

14. Table 6-1: Doing the Math on Account Management

15. Figure 6-9: The Scope of Telemarketing Activities Sales Force Organization: Scope of Telemarketing

16. Advantages Low cost per sales call Profitably serve small to medium customers Speed/time saving of telephone ordering Challenges Acceptance by field salespeople Management Role of the Internet Sales Force Organization: Telemarketing Advantages and Challenges

17. Figure 6-10: Total Costs of Independent Agents vs. Own Sales Force Sales Force Organization: Economic Analysis of Sales Agents Independent Agents Total Selling Costs Own Sales Force Break-Even Sales Sales Volume

18. The market is fragmented and customers are difficult to find or understand. Buying is decentralized. Local knowledge and local distribution is important. The company is selling only a few products. There is a good potential sales agency who has significant marketing expertise in the industry. The company is not well known and has little equity in the market. The products are easily understood commodities that have been around for a long time. The selling cycle is short and orders are typically small. It is not necessary to tightly control the selling effort. Ongoing support activities are not important and the company does not need customer information. Sales Force Organization: Market Conditions Favoring Sales Agents Figure 6-11: Market Factors Favoring the Use of Sales Agents

19. Customer Awareness Brand Awareness Brand Consideration Marketing Brand Preference Handoff Purchase Intent Purchase Sales Customer Loyalty Customer Advocacy Figure 6-12: The Marketing-Sales Handoff

20. Sales Force Organization: Key Account Sales Teams at Ericsson Country President V.P. Business Operations Key Account Team Sales Director Director of Operations Director Product Support Global Accounts Director Account Managers Project Managers Product Managers Account Managers Account Coordinators Technical Support Engineers Account Coordinators Figure 6-13: Sales Team Organization at Ericsson