5

Organising and Staffing

the Sales Force
Eagles dont flock. You
have to find them one at
a time.
Yogi Berra

Session Objectives
Concepts of the sales organisation
Basic types of sales organisations
Alternative organizational approaches
To determine the size of the sales force by using various
methods
Sales force staffing process
Planning
Recruiting
Selecting
Hiring

Areas Impacted by a Firms Sales

Force Structure

7-3

Concepts of Sales Organisation

The basic concepts of the sales
organisation are:

Degree of centralisation
Degree of specialisation
Span of control
Line or staff positions
Market orientation
Effective co-ordination
4

Sales Force Specialization Continuum

Generalists

All selling activities

and all products to
all customers

Some specialization
of selling activities,
products, and/or
customers

Specialists

Certain selling
activities for certain
products for certain
customers

Span of Control vs. Management Levels

Tall Sales Organization

National Sales
Manager

Branch
Sales
Manager

Branch
Sales
Manager

Branch
Sales
Manager

Management Levels

Regional Sales
Manager

Regional Sales
Manager

Branch
Sales
Manager

Branch
Sales
Manager

Branch
Sales
Manager

Span of Control
6

Span of Control
Span of control: number of individuals that report directly to a
sales manager
Span of Control Ratios (Rep:Manager)

Customized customer solutions result in narrower spans of

control
Routine trade sales and telemarketing activities allow broader
span of control
7-7

Line vs. Staff Positions

National Sales Manager
Product Manager
Regional Sales Managers
Sales Training Managers
Branch Sales Managers

Staff Position
District Sales Managers

Line Position

Selling Situation Contingencies

Customer and Product Determinants
of Sales Force Specialization

Customer Needs Different

Simple
Product
Offering

MarketDriven
Specialization

Product/MarketDriven
Specialization

GeographyDriven
Specialization

ProductDriven
Specialization

Complex
Range of
Products

Customer Needs Similar

9

Geographic Sales Organization

National Sales Manager
Sales Training Manager

Eastern Region Sales Manager

Western Region Sales Manager

Branch Sales Managers (4)

Branch Sales Managers (4)

District Sales Managers (20)

District Sales Managers (20)

Salespeople (100)

Salespeople (100)
10

Product Sales Organization

National Sales Manager

Office Equipment Sales Manager

Office Supplies Sales Manager

District Sales Managers (10)

District Sales Managers (10)

Salespeople (100)

Salespeople (100)

11

Market Sales Organization

National Sales Manager

Commercial Accounts
Sales Manager

Government Accounts
Sales Manager

Sales Training
Manager
Zone Sales Managers (4)

District Sales Managers (5)

District Sales Managers (25)

Salespeople (50)

Salespeople (150)
12

Functional Sales Organization

National Sales Manager

Field Sales Manager

Telemarketing Sales Manager

Regional Sales Managers (4)

District Sales Managers (2)

District Sales Managers (16)

Salespeople (40)

Salespeople (160)
13

Comparison of
Sales Organization Structures
Organizational
Structure

Geographic

Product

Advantages
Low Cost
No geographic duplication
No customer duplication
Fewer management levels

Disadvantages
Limited specialization
Lack of management
control over product or
customer emphasis

Salespeople become experts

High cost
in product attr. & applications
Geographic duplication
Management control over
Customer duplication
selling effort
14

Comparison of
Sales Organization Structures
Organizational
Structure

Advantages

Disadvantages

Market

Salespeople develop
better understanding of
unique customer needs
Management control over
selling allocated to different
markets

High cost
Geographic duplication

Functional

Efficiency in performing
selling activities

Geographic duplication
Customer duplication
Need for coordination
15

Hybrid Sales Organization Structure

National Sales Manager

Commercial Accounts
Sales Manager

Major Accounts
Sales Manager

Regular Accounts
Sales Manager

Field Sales
Manager

Western
Sales Manager

Government Accounts
Sales Manager

Office Equipment
Sales Manager

Office Supplies
Sales Manager

Telemarketing
Sales Manager

Eastern
Sales Manager
16

Telemarketing
Customer contacts using telecommunication without
face to face contact.
Very cost-effective especially for smaller customers.
Cost per sales call around 6 to 8% of face to face
sales call.
Scope of telemarketing:
Prospecting and Lead Qualification.
Customer Service.
Smaller accounts.
Promotion Support
17

Telemarketing
Advantages

Challenges

Low cost per sales

call
Profitably serve small
to medium customers
Speed/time saving of
telephone ordering

Acceptance by field
salespeople
Hiring the right person
for the job
Motivation and
retention due to
number of calls and
lower salaries
Do Not Disturb clause

Independent Sales Agents

Business entity contracted to perform the business of
selling in a given geographic area.
Do not take physical possession or ownership of the
products and are on commission basis.
Normally handle five to eight non-competing but
related products.
Major factors for decision are:
Economic Consequences since there are no fixed costs
Management Control over agents time and process
Market Conditions most suitable for new products or new
markets
19

Market Factors favouring DSAs

Fragmented Market
Decentralised Buying

Few Products
New Markets
For smaller lesser known companies
Short selling cycles and small value orders
No need for strong management control on sales
process
No need for customer data base
20

5 Steps of a Comprehensive Recruiting

and Selection Process
1 Determine the number of salespeople needed
2 Identify unique skills, knowledge, and attitudes salesperson needs
3 Attract sufficient number of applicants
4 Conduct interview process that accurately assesses qualifications
5 Offer position to one or more applicants

8-21

Recruitment and Selection Process

Step 1

Step 2

Step 3

Planning for
Recruitment & Selection

Recruitment: Locating
Prospective Candidates

Selection:
Evaluation and Hiring

Establish responsibility
for recruitment
Determine number of
people wanted
Company Culture
Job Analysis
Job Qualifications
Job Description
Recruitment &
Selection Objectives
Recruitment &
Selection Strategy

Internal Sources
External Sources

Screening Resumes
and Applications
Initial Interview
Intensive Interview
Testing
Assessment Centers
Background
Investigation
Physical Exam
Selection Decision
and Job Offer
22

Planning for Recruitment and Selection

Job Analysis:
Entails an investigation of the tasks, duties, and
responsibilities of the job.
Develop a statement of job qualifications
describing the personal traits and abilities to
perform in the job

Who should do the job analysis?

Current occupants of job
Sales Mangers
HR department through
observation

23

Planning for Recruitment and Selection

Job Description
A written summary of
the job containing the
job title, duties,
administrative
relationships, types of
products sold, customer
types, and other
significant requirements
like hiring qualifications.

Job Qualifications
Refers to the aptitude,
skills, knowledge,
personal traits, and
willingness to accept
occupational conditions
necessary to perform
the job.

24

DESIRABLE CHARACTERISTICS
Mental capacities (Problem solving, planning)
Physical characteristics (appearance, neatness)
Experience (Sales and other business experience)
Education (Degrees, Specializations)
Personality traits (Persuasiveness, adaptive)
Skills (Communication, inter-personal)
Socio-environmental factors (Interests, Activities,
Memberships)

25

Ten traits and abilities of top salespeople

Trait
Ego strength
Sense of urgency
Ego drive
Assertiveness
Willingness to take risks
Sociability
Abstract reasoning
Sense of skepticism
Creativity
Empathy

Related Ability
To handle rejection
To complete the sale
To persuade people
To be firm in negotiations
To be innovative
To build relationships
To sell ideas
To question, to be alert
To sell complex products and ideas
To understand customer needs

Source: Erika Rasmusson, The 10 Traits of Top Salespeople, Sales & Marketing Management, August 1999, pp. 3437.

26

Sources of Sales Force Recruits

Current
company
employees

Referrals

Employment
Agencies

Recruiting
Sources

The
Internet

Educational
Institutes

Also from job fairs

Other
Companies

Part Time
Workers

Advertisements

27

Recruiting Sources of Sales Reps

Source

Comment

Referrals

Advantage of known person. This is also rewarded

Current Employees

They are known and know the company and the

products

Other Companies

Especially competitors, suppliers and customers

know your company and products

The Internet

Web page recruiting; Internet recruiting sites;

Resume search services

Educational Institute

Cost effective; building relationships

Advertisements

Maximum response and cost; quality questionable

Employment Agencies

Advantage of initial screening

Part time workers

Specialist companies like MAFOI

Voluntary applicants

Unsolicited applications
28

Recruiting Evaluation Matrix

Evaluation Criteria

Recruiting
sources

Consistent
with
strategic Number Number
planning? recruits hired

Percent
retained
Reps perafter 3
Cost Frequency formance
years
after 2 yrs.
of use

Within company:
Sales force
Other departments
Other companies:
Competitors
Customers
Noncompetitors
Educational institutions
Advertisements
Employment agencies
Voluntary applicants
Computerized databases
29

Model for Selecting New Salespeople

8-30

Application Forms
Personal Data Forms help companies get
information on candidates in a structured manner.
Personal

Experience

Physical

Name
Work
Address and Phone
Reason for seeking
particular job
Personal Goals
References

Education

Ability to
perform job
related
physical
activities

Environmental
Membership in
social and
service
organisations
Hobbies and
Interests

31

Interviews
Types of interviews
Initial Interviews
Intensive Interviews
Stress Interviews

Locations
Campus
Recruiters Location (i.e. Plant Trip)
Neutral Site
Telephone

32

Personal Interviews
Most preferred for hiring of sales persons
Answers the following questions:
Is this person capable of excelling at the job?
Is he really interested in this job?
Will the job help in his goal realisation?
Will he work to his full ability?

As much a tool for testing candidates past and working

out his future plans as selling the position and company
to the recruit

33

Personal Interviews
Structured interview
applicants are asked the same predetermined questions
potential weakness is that interviewer may fail to identify
or probe a candidates unique qualities or limitations

Unstructured interview
induces free discussion on wide ranging topics
may yield unexpected insight
requires experienced interviewers with interpretative
skills

34

Other Interviews
Stress interview: places the applicant in
unstructured situation to see how well he/she
performs
Group interview: group of applicants placed in a
group or open forum and encouraged to ask
questions
Panel interview: placing a single applicant before a
panel of company representatives
Field observation: applicant travels with rep making
calls on current and potential clients
8-35

Suggestions for Improving Interviewing

Effectiveness
Have specific job specifications and qualifications
clearly in mind
Establish specific interviewing objectives
Provide some degree of structure
Allow adequate time
Be very familiar with application or resume information
Use standardized rating sheets after each interview
Use multiple interviews
Provide training and practice for the interviewers
Use the interview as an opportunity to learn more about
the candidate as well as to sell your company

36

An Excerpt from Xerox Campus InterviewEvaluation Report

EVALUATION
(Circle Level)

(Does Not Meet

Xerox Standards)

(Meets Xerox
Standards)

(Exceeds Xerox
Standards)

Aggressiveness and
Enthusiasm

Communication Skills

Record of Success

Rational Thought Process

Maturity

Overall Evaluation

Summary of Applicants Qualifications

Apparent Strengths:
Apparent Weaknesses:
Areas Requiring Clarification:

37

Testing: Value and Types

Value
May be used to assist with initial screening
May indicate compatibility with job
responsibilities
May indicate compatibility with
organizations culture and personnel

Types
Personality
Intelligence
Psychological
Ethical Framework
38

Testing: Guidelines for Using

Use tests that have been based on a job
analysis for the particular job in question
Do not base the hiring decision solely on
test results
Some creative and talented people may
deviate from expected norms
Intelligent and test-wise individuals may be
able to manipulate results
Some tests may discriminate against people
of different races, genders, et al thus
becoming illegal
39

Background Check
Be wary of first-party
references
Radial search referrals
might be used
Use an interview
background check
Use the critical incident
technique
Pick out problem areas

Obtain a numerical scale

reference rating
Identify an individuals
best job
Check for idiosyncrasies
Check financial and
personal habits
Get customer opinion

40

Selection Decision and Job Offer

Evaluate qualifications in order of importance
Look for offsetting strengths and weaknesses
Rank candidates
If none meet qualifications, may extend
search
May have to offer market bonus (signing
bonus) to highly qualified candidates

41

Physical Examinations
Sales jobs require sound basic health, stamina
and the physical ability to withstand stress
Caution should be exercised in requiring medical
examinations and other specific tests for such
things as drug use or the HIV virus
A physical exam can be performed only after
extending a job offer
Managers deem using a standard physical
examination for all positions ill-advised

42

Making the Job Offer

Contact via phone
Follow up with first-class letter containing formal offer
of employment
Include
Deadline for accepting the position
Info about responsibilities
Starting salary
Allowable moving expenses
Formal training dates
Time before first performance review
When rep will first be eligible for a raise
Number of vacation days
8-43

What Do Sales Candidates Want

to Know?
Sales candidates ask themselves
How financially healthy is the recruiting firm?
What is the firms track record?
What are their opportunities?
What will it take to succeed?
What is a realistic first-year income?
Is the product something customers want to buy?
Does the selling firm support sales efforts?
Is there a commitment to employee development?
Based on: Jeremy Cohen, Natural Select-ion, Sales & Marketing Management, September/October
2008, 26-27.

8-44

Avoiding Common Hiring Mistakes

Dont Rush to Hire

Conduct Proper
Job Analysis

Generate Enough
Applicants

Wrong rep hired

Backgrounds not diverse

Identify essential skills,

knowledge, and activities
that new hire should
possess to succeed

Have a large enough

group of qualified
individuals from which to
select best applicants to
interview and hire

Conduct Thorough
Interview

Complete
Background Check

Too often, sales mgrs ask

a few questions and think
their experience as a rep
allows them to make
accurate hiring decisions
on the spot

Up to 20% fabricate facts

and accomplishments
Failing to check
increases likelihood of
hiring someone with
dubious character

Plan the Interview

Dont interview off the
cuff
Coordinate multiple
interviewers

8-45

Next Session

AJAX Case
Deliverables
Single Sheeter by all students
Presentations by each group

Reading
Chapter 8

46