Presented by: Debangan Das, Ashutosh Kumar, Waibhav Agrawal, Priyanka Kashyap, Harsh

Bansal
 INTRODUCTION
• Environment where customer demands predominate because competition is
both relentless and increasingly international, the world of selling must
accommodate a dramatically changed world of buying.
• Many companies currently experience tectonic shifts because their selling
abilities do not meet the needs of more demanding customers.
• Many sales forces, and particularly large ones at well-established companies,
are populated by dispirited Willy Lomans.
• In the industrial arena, sales situations are now characterized by fewer,
larger and more complex purchasing organizations, while many customer
choices and intense competition for each piece of business are the norm.
• in the consumer sales arena, companies are discovering that increased
competitive intensity and customer sophistication force them to approach
the entire sales process differently.
 Sales Force Quality Affects Financial Performance
• When customer pressures intensify, and sources of product differentiation
dry up, the relative value of a high-quality sales force increases.
• Assessing sales force impact on revenue growth is always difficult because
of so many factors (product quality, pricing, competitive products, product
mix) which can influence relative growth rates.
• A powerful product line is typically the primary driver of growth; at the
same time, both good and bad products benefit from a high-quality sales
force effort.
• We anticipated that the ranking would explain at most 20 to 30 percent of
sales growth, in some cases the relative impact reached as high as 40 to 50
percent.
• As competitive pressure heightens and product differentiation lessens, the
relative impact of excellent sales force performance will become even
stronger.
Sales Management: The Front Line in an Increasingly
Hostile World
• The 1970's and 80's were generally a seller's market.
• Companies focused on top-line revenue growth without worrying too much
about profitability because, in the vast majority of cases, when the top line
grew, profitability would follow. If costs rose, prices were increased. Sales
management was tactical.
• In the past 15 years, the number of competitors in most product categories
has exploded.
• The porousness of technology and the increase in competitors have also
reduced the degree of differentiation that used to characterize many
products.
• The result of all these transformations is that the competitive circle widens.
 The Impact of Shorter Product Cycles
• Sales and relationship skills are most important when the product is new and
very differentiated, and when it is in late life cycle and very undifferentiated.
(Exhibit II-A)
• The buyer's risk must be reduced by the selling process and relationship
building. (Exhibit II-B)
• In the late stage of the life cycle, as the product grows undifferentiated, the
salesperson again becomes very important.
• The shorter period of product differentiation means that the period of low
differentiation is expanding to the left in (Exhibit II-C).
• Leading to the shorter time of low sales/sales management impact in (Exhibit
II-D).
• The typical sales force is being called upon to spend a higher proportion of its
time on the hard early and late life-cycle selling tasks, and a smaller proportion
on the relatively easy, moderately new, moderately differentiated products.
 Sales Force Architecture
• The definition of the sales task derives from customer needs , the design of the
architecture derives from the definition of sales task. The company's sales force
architecture creates a structure that prevents the commingling of distinct tasks, and it
enables the efficient execution of all the different tasks.
• For a small pharmaceutical firm with a narrow product line, there were two distinct tasks:
detailing to general practitioners and selling to hospitals. The right architecture consisted
of two units: the general field force and a separate specialized force calling on major
hospitals.
• The most common mistake in sales management is to diddle with the organization
structure without understanding the sales task.
Marketing and Sales Organization of
Relationships
• Distribution was generally split -- the marketing people did the strategic, cerebral, policy-
level work, and the sales force executed in the field.
• The account managers, product managers and advertising managers will need to work
together to protect profits and enhance volume in the harsh world of customer power,
intense competition and overcapacity.
A Network of sales management systems

Focusing primarily on the traditional concerns of recruiting the right people or developing a sales
incentive compensation scheme that will get them to do the right things, have explored how
tectonic changes among customers and competitors have forced a total reassessment of the
nature of the sales task and thus the very architecture of the sales force.

The Measurement System:

To start with, all around, you get what you investigate, not what you anticipate. That is, the plain
procedure of estimation changes the manner in which the business constrain works. Generally,
salesmen will concentrate their endeavours on those things that are being estimated. The trap
here is to make sense of what data is expected to achieve the undertaking and influence the
design to work.
• Second, in numerous customary deals powers, the main genuine clarification of what every sales
representative should do was typified in the pay design. The sales representatives would think
about the arrangement in awesome profundity and recognize how they were being estimated and
paid. While numerous business directors thought it was the compensation that drove the
execution, we have considerable information showing that the data estimation of the
compensation design much of the time had more effect than the motivational estimation of the
cash gave.

• Third, the estimation framework must be fixing to the key factors vital to corporate system -
gainfulness, for instance, and not simply income. Notwithstanding gigantic interests in data
innovation, numerous organizations still don't work with useable information on account
productivity (at the level of both commitment edge and working benefit). This data is basic,
particularly when one considers that up to 60 percent of records can be unbeneficial.
• Fourth, a great estimation framework peers both inside and outside the firm. The outside view
ought to have no less than three parts.

• One is a solid relationship to the arranging vital for real records. Record arranging is the piece
of the estimation framework empowering the sales representatives and their administrators to
realize what the records require and to build up a point by point program to address those
issues.

• The second component of the outside view concerns potential. Very numerous business
estimation frameworks center around deals versus spending plan or deals versus a year ago.
application of analytical procedures such as ratios of sales to the number of customers or
customer revenue, combined with thoughtful questioning by salespeople and sales
management, can yield accurate information.
• The last outer point of view of the estimation framework tends to the opposition. Regularly,
salesmen in the field find out about what is happening intensely than do abnormal state
showcasing officials back at home office. Information from every businessperson ought to be
accumulated and converged into imperative data designs. While every salesman sees just a
bit of the photo - from a domain and record centered view, and with a wide range of
inclinations - the built mosaic of all the data gives a point by point and incorporated viewpoint.

• Late advances in PC power and versatility, joined with institutionalized programming bundles,
offer tremendous help in estimating the execution of the business compel and in permitting
salesmen access to unified information bases. The information should stream both ways. The
frameworks give stock, conveyance, building, limited time and other data to the business
powers. Consequently, the business compel gives point by point account and focused data to
a concentrated information base.
Competency creation system (Task oriented)
Recruiting
and selection

Creation
Training
activity
The motivation system
Incentive,
contests

RM, Product Straight

mix, pricing commission

Personal
acknowledgement,
greater recognition,
access to top
management
Need for
feedback, one
Task clarity
to one
recognition

Account plan,
PMS
Sales management- Boardroom issue

Change in Intense Sales force

customers competition redesign

Define sales Organisational

task architecture,
(Competency) PMS