Sales Management - Assignment

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1st Answer

Introduction: An organization is a body formed in order to achieve the specific


corporate short-term and long-term goals. The design of the organization refers to the
organizational structure, the path chosen for achieving set goals, the process opted for
and myriad variables. The structure of an organization is also not static and evolves
over time, as per the perceived need to fulfil the goals. If correct policies are followed
while setting up a sales department, the structure is formed with features of the
following four basic types: line, line and staff, functional and committee. The grouping of
activities into different positions and the charting of relationships between all the
different positions causes the organisation to take a structural form.

Concept

The following are the different types of sales organization structure:

1. Line sales organisation: It refers to the simplest structure of sales organisation. It is


hugely adopted in small organizations. For instance, small businesses catering to a
limited geographic area or selling a single product line employ this structure. The chain
of command runs from the sales executives at the top to the subordinates at the lower
level. All executives exercise line authority and each subordinate is supposed to report
to only to one person on the next level of the command chain Responsibility is clearly
communicated and those charged with it have the authority to take decisions and
action. Authority lines run vertically through the structure. All persons on any
organisational level area are independent of that level.

2. Line and staff sales organisation: The line and staff sales department is usually
used in large and medium sized organizations hiring many sales executives and selling
diversified product lines in various geographic locations. When compared with the line
organisation, this structure renders the sales executive at the top level with specialists
and experts in relations of dealer and distributors, sales analysts, sales organisation,
sales personnel, sales planning, sales promotion, sales training, service, traffic and
warehousing and similar fields.

This enables the top sales executives to save time and it also relieves them from
burden of excessively detailed and time-consuming work. Hence, it is possible for them
to concentrate and give efforts in working on their areas of proficiency if the top sales
executives are not equipped with an increase overall effectiveness of the department
study or provide detailed analysis to staff executives. The top sales executive has more
time in hand in order to plan and deal with matters of priority.

A functional organization is an extremely common organizational structure. In this, the


organization is categorized into smaller groups on the basis of its special functions such
as IT, finance or marketing, human resources. This departmentalization increases the
operational efficiency as the employees have their skills and knowledge to be shared
within the group. As this structure has many different departments, it may also have
several reporting structures as well. In this structure, the reporting relationships are
grouped on based on specialty or area of function.

4. Committee sales organisation: In committee sales organisation, the committee is


never the only basis to organise a sales department. It is a way of organizing the
executive group in order to plan and formulation of policy while leaving actual
operations, and implementing their plans and policies to individual executives. Thus,
many brands have a sales training committee comprising of the general sales manager,
the assistants, sale training manager and perhaps representative divisional or regional
sales managers that meet regularly in order to draft schedules of training and plans, and
formulate the policies of sales training.

The responsibility of the sales training manager is responsible to implement these plans
and policies.

In my opinion, the following would be the organizational structure:

Sales organization structure of Hindustan Unilever: HUL Limited is an Indian


multinational FMCG company headquartered in Mumbai, Maharashtra that
manufactures and sells fast-moving consumer products primarily in India and across the
globe. It is a subsidiary of Unilever, a British corporation. Its products involve foods,
beverages, cleaning agents, products for personal care, water purifiers and various fast-
moving consumer goods. The CEO in India is Sanjeev Mehta.

Director (Sales)

Zonal sales manager

Regional sales
manager
 
Sales Sales Sales Sales
representatives representatives representatives representatives
(EAST) (WEST) (SOUTH) (NORTH)
       
SALES SALES SALES SALES
EXECUTIVES EXECUTIVES EXECUTIVES EXECUTIVES

Sales organization structure of Nestle


Nestle is one of the best FMCG companies in our country and its sales force is quite
efficient which prove to be useful for the company. There are top level managers who
work on all over country basis, regional level etc. There are also area wise sales
managers who visit to various other companies and take the orders.

VP SALES (INDIA)
   
   
REGIONAL SALES REGIONAL SALES
MANAGER (EAST MANAGER (SOUTH &
AND WEST) NORTH)
                 
       
ASM EAST ASM WEST ASM SOUTH ASM NORTH
       
SALES SALES SALES SALES
EXECUTIVES EXECUTIVES EXECUTIVES EXECUTIVES
2nd Answer

Introduction: When an individual begins a new business venture, there are various
things that need to be strategized in order to conduct the business operations in a
successful way. An important step to constitute a successful plan of business and
ultimately a successful business is to formulate a sales plan of various products and
services. While there are various strategies of sales plan to select from, some options
are more effective for a particular kind of business as compared to another. To have a
sales plan for your products and services is one of the most difficult yet most crucial
parts of conducting business. The goal of strategic sales planning is to maximize your
profit.
Sales forecasting and goal-setting:
1. Set realistic sales goals in your sales plan: Before we get into the method of
how you’re getting to get your sales this year, we'd like to speak about something
bigger: Goals. Your sales plan template needs an end goal. you would like a
number—either sales or customers or whatever metric you choose—that will tell you
whether or not what you’ve done has been a hit . I’ve written about setting realistic
sales goals thorough before, but what it all comes right down to is determining what
realistically you'll usher in supported the dimensions of the market, your company
goals, and therefore the experience and resources available to your sales team.

2. Define clear deadlines and milestones in your sales plan:


Clear deadlines and manageable milestones take research and time to
develop. They ought to challenge and motivate your sales team, without being so
difficult they kill morale.

Again, start with last year’s numbers (if you've got them). Track how sales revenues
increased annually and compare your company to the industry standards. Ask your
sales team about what they are doing during the workweek, whether
that’s aged sales calls, prospecting new customers, or closing deals. Ask what
proportion they’re currently doing, and the way much bandwidth they need to try to
to more. This may offer you a true, frontline take of what milestones to line in your
sales plan template.
Next, it’s time to line your milestones. These got to be specific with clear goals and
deadlines. For instance, you would possibly want to extend your customer base by
20% or increase sales 50% for a selected product or maybe increase the share of
users on a paid plan by 15% by mid-year. Regardless of the milestone is, be clear
what your expectations are and set a tough deadline for your team to
figure towards.
3. Pick a distinct segment to specialise in and build traction in: Now that we all
know what we would like to hit, let’s get into the nitty gritty of building out our sales
plan template. First, we'd like to understand the market we’re in and therefore
the niche we’re getting to occupy so we will properly position our business for
growth (and to realize the goals in your sales plan).

4. Understand your target customers: It makes no sense spending time and


money chasing after the incorrect prospects, so don't allow them to form their way
into your sales plan. Once you recognize your niche, it’s time to probe checking
out the maximum amount as possible about your target customer so as to properly
sell to them.

5. Map your customer’s journey: Together with your ideal customer profile in


situ, subsequent a part of your sales plan must address how that customer becomes
your customer. We will do that by mapping out their journey from prospect to loyal
customer.

6. Define your value propositions: together with your ideal customer profile in


situ, subsequent a part of your sales plan must address how that customer becomes
your customer. We will do that by mapping out their journey from prospect to loyal
customer. Remember that customers buy benefits, not features. When describing
your value proposition, it’s easy to urge trapped in talking about you. What you’ve
made. What you are doing. Instead, flip the script and mention what your product
will do for your customers.
CONCLUSION: So in conclusion the right sales plan will help you get more customers
and increase your profits. But what works for one company may not necessarily work for
you even if they’re in the same industry. It’s important to take a look at your specific
marketing strategy and circumstances before choosing the most effective sales plan.
3rd Answer

Introduction: a) Motivation is “the process that account for an individual’s intensity,


direction, and persistence of effort toward attaining a goal.” Motivation is important to an
individual because it helps to achieve personal goals and in the self-development of
individuals.

Similarly, motivation is important to a business because if the employees are more


motivated, the team strength is higher and positive. The more is the team work and
contribution of the individual employees, more profitable and successful the
organization will be.

Since the salesmen are having extremely high pressure for meeting the sales targets,
their productivity is hampered. They aren’t happy with the over-burden of the work that
is being given to them they are not happy to work with the company and so they are
leaving the organization in the hope of a better work-life balance.
Also, there are no incentives provided to the salesmen for meeting the high sales target
in such a competitive market. They are totally demotivated and this shows in their work
which leads to loss of customers and falling market share.

Hence, the company should raise the salary as per the performance of the employees.
Good performance ultimately benefits the organization in the long run and for this,
employees must be rewarded. It is not important for all the sales personnel to receive a
salary hike in the competitive market; only those who perform well.

However, the other employees should be recognized and appreciated for small tasks
done well or for good decisions taken. Top management can introduce performance
linked pay policy. It should continue providing the regular salaries to all their employees
and the sales executives having an excellent performance should be paid extra
incentives. This will make all the executives work very hard and try to achieve good
sales and this will help the corporation to improve their position. If the sales are high,
company can compete with rivals and survive despite of economic slowdown.
Performance linked pay will encourage sales people to work hard and they will
contribute considerable amount to the revenue of the company. If all employees will get
flat 10% increase, then no one will do that extra effort to get more sales and ultimately it
will affect the company. Job of the sales personnel is to constantly try and get more
orders for the company and it takes time, effort and hard work. If some employees do
some extra effort; then their performance should be rewarded.

3b) Introduction and Concept:

Non-financial tools to motivate sales staff

Hold a meeting: This is a group motivation. All employees meet at a place. Everyone
meets and contacts fellow workers. Exchange of ideas and opinions takes place.
Salesmen always prefer to interact with the fellow workers and executives. Problems
are solved and new policies are developed.

Employee Recognition Programs – These programs involve recognition from seniors


and management, expressing interest in the ideas shared by employees, approval,
appreciation and rewards for a job well done. It satisfies the social and self-esteem
needs, Vroom theory components (if that is the employee’s expectation), need
affiliation, the need to bond and comprehend and other theories such as need affiliation.

Employee Involvement Programme – This involves participative management,


workplace democracy, empowerment, and ownership taken by an employee. This
impacts the self-esteem and the need to comprehend.

Freedom: While performing their jobs, the sales personnel should not be controlled too
much. It is important that salesman is given a reasonable degree of freedom in
performing his assigned job. The salesman must be permitted to perform his job using
his own pattern. Asking for reports too much should not be done. Such things create a
good stimulus and give a good feeling that the job of the salesmen is important in the
firm. When the sales manager provides responsibility to the salesman, the results are
better.

Participative Management – Participative management refers to a way of involving


employees in the process of problem-solving and decisions. In this technique, the
employees at the smaller level have the freedom to participate in discussions with their
immediate supervisors and they are also given a reasonable degree of making
decisions on their own. Work councils, board representative and quality circles are
examples that demonstrate participative management. They motivate as explained by
self-esteem, the need to comprehend and other motivational theories.

Personal Communication: A sales manager must communicate to the sales


executives in order to solve their challenges. They should obtain a constructive
feedback from the executives on their leadership roles. The two- way communication of
ideas, facts, grievances, opinions enables to develop a good morale apart from
confidence and co-operation. This is because employees feel that they have been
heard and they are a part of the organization.

(ESOPs) – The ultimate reward to employees who are excellent with their work is
allowing them to own part of the organization through the Employee Stock Ownership
Plan. These are company-established plans of benefits where it is possible for an
employee to acquire stock as a portion of their remuneration. ESOPs increase job
satisfaction among employees and work motivation.

Sales Contests: This implies a competition between the salesmen in order to maximise
their effort in order to increase the overall sales of the organization. These contests
also help to develop a team spirit, boost the morale, encourage working hard, sell more
of fast moving and slow moving items, to overcome the depression period etc. The
employees with the highest sales win cash prizes, incentive, merit certificate or free
travel etc.

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