the sales management process
a. sales plan formulation: setting direction
selling must be managed if it is going to contribute to a firm's overall objectives.
sales management consists of three interrelated functions: (1) sales plan
formulation, (2) sales plan implementation, and (3) evaluation of the salesforce
the sales plan is a statement describing what is to be achieved and where and how
the selling effort of salespeople is to be deployed. formulating the sales plan
involves three tasks:
1. setting objectives is the task of specifying
what is to be achieved. selling objectives can be output-related,
input-related, or behavioural related. once established, these
objectives serve as performance standards for salesforce evaluation -
the third function of sales management
organizing the salesforce. the task of organizing the salesforce revolves around three
a. should the company use its own salesforce or should it use independent agents?
here, both economic and behavioural considerations must be weighed before making this
decision. control, flexibility, effort, and availability are important criteria to be considered.
figure 21-5 in the text shows the arguments for a company salesforce and independent
b. if the decision is made to employ company sales people,
then how should they be organized? typically, an organizational structure is based on
geography, customer, or product.
c. a recent innovation in organizational structure is major
account management. this structure is similar to a customer organizational structure and
employs a team selling approach.
d. how many salespeople should be employed? the answer to
this question lies in terms of the number of accounts served, the frequency of calls on
accounts, the length of an average call, and the amount of time a salesperson can devote to