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Sales Operations > Cours 3- Sales Force Structure And Territory Alignement > Flashcards

Cours 3- Sales Force Structure And Territory Alignement Flashcards

1
Q

4 stages of a business life cycle

A

Start up
Growth
Maturity
Décline

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2
Q

4 factors for a successful sales forces that changes according to life cycle state

A
  1. Role of sales force and selling partners
  2. Size of sales force
  3. Degree of specialization
  4. Sales force resource allocation
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3
Q

In the growth phase

A

It’s not sufficient to maintain a sales force of generalist

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4
Q

Start up degree of specialization

A

Low

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5
Q

Optimizing the maturity phase

A

When sales forces focus on the customers, products, selling activities that generate the highest response to their sales efforts

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6
Q

Sales force structure

A

Allow companies to conduct effective sales process

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7
Q

4 specialization

A
  1. Product based
  2. Geographic sales organization
  3. Activity based
  4. Customer based
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8
Q

Product based

A
  • to avoid sp run into the same customer

- the company must assign key account manager to each customer

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9
Q

Advantage of product based

A
  • Closer alignement of sales and production
  • sales management controls allocation of selling effort across the various products
  • sp master effective selling methods
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10
Q

Disadvantages of product based

A

Duplication of effort : different sp may travail to the same customer

—> to avoid sp run into the same customer
the company must assign key account manager to each customer

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11
Q

Geographic based

A

Can be seen as a generalist approach

Each sales person for 1 territory sales all the products lines to all the customers

Companies that has less diverse product portfolio

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12
Q

Advantages geographic sales organization

A
  • cost saving : travel time and expenses
  • get to know the customers better
  • facilitante for coordination and motivation
  • encourages entrepreneurship
  • avoid replicating the efforts
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13
Q

Disadvantages geographic sales organization

A

Sales people may choose who to serve and what to sell

Not as effective as specialists

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14
Q

Activity based

2 sales roles

A
  1. Account manager

2. Application sales engineer

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15
Q

4 steps in the sale process

A
  1. Lead generation and qualification
  2. Closing
    —> account manager
  3. Prototyping and pricing
  4. Fulfillment and support

—> application sales engineer

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16
Q

Advantages of activity based

A
  • the sales force has better knowledge of and effectiveness in sales activities that require diverse skills
  • some tasks can be assigned to cheaper selling resources —> improve its efficiency
17
Q

Disadvantages of activity based

A

Lack of customer focus and duplication of effort

Increase coordination requirements : spend cosndierable amount of time documenting customer information

18
Q

Hunters

A

Business developer

Look for and acquire new accounts

19
Q

Farmers

A

Cultivate relationship

20
Q

Customer based

A d’avantages

A
  • Better understating of customer needs
  • increased familiarity with certain businesses
  • increased control over allocation of deleting effort
21
Q

Disadvàtages customer based

A

Possible higher selling and administrative costs

Duplication of effort

22
Q

Generalists

A

Straightforward sales process
Homogenous customers
Efficiency possible
Within bandwidth

23
Q

Specialist

A

Complex sales process
Diverse customers
Exceeds bandwidth
Effectiveness challenge

24
Q

Sales territory

A

Set of customers/prospects, whose relationship is assigned to a sales representative by a director

May be a very limited number of key accounts

May be a large number of small account

25
Q

Alignement

A
  • people are provided with the same opportunities to succeed
  • the assignement of accounts and their associated selling activities to sales people and teams
26
Q

Alignement, type of structures

A

Generalist structure : each sp is assigned to a specific geographic area

Market based structure : specific accounts in addition to geography

Product based or activity based : define sales territory alignements by products or selling activity in addition to account and geography

27
Q

Well designed sales territories will

A
  1. Improve customer and prospect coverage
    —> increases sales force effectiveness, which leads directly to higher sales and profits
  2. Improve morale and enhance the power of reward systems
  3. Keep travel time and costs under control
28
Q

Territory

A

Territory potential and territory sales are highly correlated

Territory potential is a better predictor to territory sales

Sales Operations (5 decks)

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