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An ‘Organization’ is a working
structure of Activities involving a
group of people
• GOAL of an ‘Organization’ is to
arrange the activities such that people
involved can act better ‘together’ than
they can ‘individually’
Principles of Organizational Design
• Organization structure should reflect a
marketing orientation
• Organization should be built around
activities, not around people
• Responsibility & authority should be
related properly
• Span of executive control should be
reasonable
• Organization should be stable but flexible
• Activities should be balanced &
Coordinated
Informal Organization
• Contribution to Profits
• Continuing Growth
Delineating necessary Activities
• Line Organization
• Line-and-Staff Organization
• Functional Organization
• Horizontal Organization
Line Sales Organization
Salespeople
Line Authority
Staff advisory
Authority
Functional Sales Organization
Assistant
Sales
Manager
Salespeople
The Horizontal Corporation
Product Design &
Development Team Manufacturing Team
Customer Research Systems Engg
Customer Analysis Production
Design Engg Quality Control
• Geographic Specialization
• Type of Product
• Market-based divisions
• Type of Customer
Geographical Sales Organization
District District
Sales Managers Sales Managers
Assistant
Sales
Manager
Salespeople
Sales Organization specialized by
Type of Customer
Chief Marketing Executive
Organizational
Independent E-commerce &
Options for
reps Tele-marketing
the 2000s
Team
Selling
Strategic Account Management
• Factors contributing to Complexity:
– Different geographical locations involved in
buying process
– Different functional people involved
– Price concessions, customized products,
special services, etc may be demanded
– Salespeople from different areas may be
inter-facing with one customer
– Similar conditions on part of Seller also
Strategic Account Management
3 commonly used organizational
approaches:
• Using Executives
Marketing Information
Purchasing
Sales Problem Solving
Manufacturing
Manufacturing Negotiation
Friendship, Trust R&D
R&D
Engineering Product/Services Engineering
Payment
Physical Marketing
Distribution Reciprocity
Captive versus independent sales rep
$ Cost
Independent rep
Captive rep
$ Sales
Uses of Telemarketing
• Identify prospective customers
• Screening, qualifying leads
• Sales solicitation: small customers,
re-orders
• Order processing
• Product service support
• Account management
• Customer relations
• Competitive reporting
• Expense reporting
STAFFING
Selecting the ‘right’ people
• Job Analysis
– Specific tasks to be performed
– Which activities are critical for success
• Job Description
• Job/Hiring Qualifications
Content of Job Description
• Title
• Nature of the product or service to be sold
• Type of customers to be called on, frequency of
calls, and types of personnel to be contacted
• Specific tasks and responsibilities to be carried out
• Organizational relationships
• Mental and physical demands of the job
• Environmental pressures & constraints that might
affect the job
Plan for Recruiting & Selection
Generally Desirable Trait Related Ability
Ego strength To handle rejection
Sense of urgency To complete the sale
Ego drive To persuade people
Assertiveness To be firm in negotiations
Willingness to take risks To be innovative
Sociability To build relationships
Abstract reasoning To sell ideas
Sense of skepticism To question, to be alert
Creativity To sell complex products & ideas
Empathy To understand customer needs
Recruiting for the Team
• In today’s re-engineered business
environment, companies seek
salespeople who are ‘adaptable’ &
show selfless behaviour
•Willingness to share
• Cooperative Trusting
• Empathetic Accepting of others
• Receptive to others ideas
• Selflessness Leadership skills
Sales Force Staffing Process:
Plan for Recruiting & Selection
Establish Responsibility Determine Conduct Job Prepare Job Determine Hiring
for Recruiting, Selection Number of Analysis Description Qualifications
and Assimilation People Wanted
Recruit Applicants
RECRUTING includes all
activities involved in securing
individuals (their co-
ordinates) for the position to
be filled
(concept does not include actual
selection of people)
RECRUITING
• Need for many recruits: only a small % get finally
hired
• Finding adequate no. of recruits may not be
easy;
• Companies need to find & maintain good
recruiting sources:
• Referrals Current Employees
• Other companies Internet
• Educational institutions Advertisements
• Agencies Part-time workers
RECRUITING SOURCES
Other Companies:
Current Competitors
Referrals
employees Customers
Others
Educational Advertise-
Internet
Institutions ments
Sales Force Staffing Process:
Plan for Recruiting & Selection
Establish Responsibility Determine Conduct Job Prepare Job Determine Hiring
for Recruiting, Selection Number of Analysis Description Qualifications
and Assimilation People Wanted
Recruit Applicants
Select
Applicants
Design a System Measure Applicants Make Selection
For Measuring Against Hiring Decisions
Applicants Qualifications
SELECTION
• SELECTION TOOLS:
– Application Blanks
– Personal Interviews
– Psychological Tests
– References & Credit reports
– Assessment Centres
The Job-Offer Decision
Review:
• Qualifications & Potential of Applicant;
• What Applicants want, & what Company
can offer them (all hopes & ambitions of
each applicant as against opportunities &
rewards offered by the company);
• Detailed Impressions that Applicants have
made;
The Job-Offer Decision
• Develop 2 lists of Recruits:
– In order of Company’s preference for them
– In order of Recruit’s preference for co.
• Decide on the candidates for Offer,
considering both above lists
• Company should ensure that they
communicate decision also to candidates
not selected by them
Sales Force Staffing Process:
Plan for Recruiting & Selection
Establish Responsibility Determine Conduct Job Prepare Job Determine Hiring
for Recruiting, Selection Number of Analysis Description Qualifications
and Assimilation People Wanted
Recruit Applicants
Select
Applicants
Design a System Measure Applicants Make Selection
For Measuring Against Hiring Decisions
Applicants Qualifications
Recruit Applicants
Select
Applicants
Design a System Measure Applicants Make Selection
For Measuring Against Hiring Decisions
Applicants Qualifications
Recruit Applicants
Design a
Select Applicants
System For
Measure Applicants
Measuring Make Selection
Against Hiring
Applicants Decisions
Qualifications