Global Sales Organizations

Chapter 6 Global Sales Organizations Sales Management: A Global Perspective Introduction Organizational design can be a planned process or random in nature  Planned process involves an analysis of: Current and potential customers Market environment Competitors Company assets Firm’s ability to serve the marketplace Analyzing & Building a Sales Organization  Firm must balance the needs of three competing forces:   Customer, firm and business environment Understand via SWOT Analysis       Identify firm’s internal/external constraints & demands Identify necessary sales activities needed Sales force structure to address market needs Allocate number of positions Staff organization Evaluate the organization Analyzing the Environment  Sales organizations developed for a variety of reasons   To achieve sales activities and goals Individual strengths  Can we assign responsibility blindly?   Geographical locations Need to satisfy management’s personal preferences  May result in illogical structure Firm Goals  Company goals set at the highest level    Business defined through mission statement Executives determine which parts of organization receive funding Overall firm business plan approved   Business plan drives marketing and sales plans Sales plan details actions to be taken to achieve marketing plan goals Market and Buyer Behavior   Sales force spans boundary between buyer and seller Three characteristics important    Market complexity – industry, languages, cultures, and legal requirements Customer location – purchasing/deliver sites Market variations – market change is constant Competitors  Who are the major competitors?  Consider both direct and indirect  SWOT analysis rates new organization with existing   Focus on matching the customer buying process Design an organization that addresses client needs and is superior to competitors Sales Force Organizational Concepts  Generalist vs. Specialist  Flexibility, Cost, Coverage  Centralization  Speed of decisions, Control Standard products vs. customized Sales force falls within line organization  Span of Control   Line vs. Staff positions  Selecting the Best Option    Most firms organize their sales force around geographical, product, market, functional, or a combination structure As seen in Table 6-2, each organizational structure has advantages and disadvantages. Management must select the correct structure to provide service to the client at the least cost Sales Structure in Global Markets  Geographical  Undeveloped, small, similar language or culture, single product line  Product/Market/Combination  Established markets, broad product lines, large sales volumes, large markets, and distinct languages and cultures Sales Force Options  National Account Management    80/20 rule lead to Key account management Sales efforts for team may be directed by a senior level salesperson Work directly with influencers and deciders  Global Account Management    GAM coordinates all activities across nations GAM and NAM work together Transfer responsibility of Key accounts to GAM Other Options  Company Agents    Manufacturer’s Rep – agents who represent the firm’s offering for a commission Independent Agents – many varieties Indirect Channels – wholesalers, distributors, and dealers  Indirect channels supplement the firm’s direct sales force Supplemental Sales Methods  Telemarketing  Incoming and outgoing   Administrative support Technical support  Sales engineers and Team selling Evaluating the Organization  On a continual basis, managers evaluate the efficiency of the organization to:    Service existing and potential customers Operate in a changing environment Lost customers, feedback, travel expenses, sales force turnover, and competitor actions  No one structure works best in all situations. Must continue to evaluate as products and markets mature Summary  Structure impacts management of sales force    Dependent upon analysis of SWOT and marketplace to assign firm assets Firm can choose between company sales force, agents, indirect channels, or partners Many options – should strive to provide superior service at the lowest cost Discussion Questions    When should a generalist be hired? What limitations do centralized sales forces face? List the advantages and disadvantages of geographical, product, market, and functional sales force structures What criteria or metrics might a firm use to assess organizational efficiency?