1.0) Introduction
This report analyses sales management issues that need addressing and makes
recommendations for improvements.
2.0) Company Structure
2.1) Problems
There is inconsistency in relation to region sizes and the number of sales representatives
serving the customers. Region boundaries are not clearly defined. A geographical structure
operates among field sales employees, however no structure operates in the sales office
preventing support been provided to field salespeople, customers receive inconsistent and
inaccurate information, contributing to loss of orders if quotations are not efficiently
handled internally.
Sales need to be increased to increase profits, a more effective structure would enable
product knowledge and customer service to be improved, in turn helping improve sales.
Geographical structure requires salespeople to sell a range of products preventing product
specialisation. Increased competition in Europe calls for specialist technical selling
expertise, which is not established within current structure.
2.2) Solutions
2.21) Product Structure: allows product specialisation;
Advantages
In-depth knowledge of product applications making sales easier,
Increased confidence and ability to sell through knowing how to meet customer needs.
Disadvantages
Multiple salespeople required to serve customers who purchase multiple products, causing
customer frustration.
Lack of consistency may cause loss of sales especially if the competition can provide the
whole package through one salesperson.
2.22) Industry/Customer
An industry/customer structure entails organising salespeople to sell to different
industries/types of client.
Client needs are becoming more complex creating a greater need to offer a whole package
solution.
Advantages
Development of specialist knowledge of the industry/clients needs and product
applications.
Salespeople have the ability to compile a complete package.
Disadvantages
Confidentiality is essential; salespeople cannot disclose information to other clients
between whom competition occurs.
Performance based on industry buoyancy; effecting perceived equity.
2.23) Key Account Management
Involves identifying clients with high-sales potential and providing them with special
treatment to satisfy complex needs. Aiming to be the preferred supplier.
Advantages
Develops long-term relationships encouraging loyalty through excellent customer
service-going beyond what is expected.
Allows penetration of the DMU.
Push and pull buying opportunities can be created/identified to increase sales.
Disadvantages
Neglect of smaller accounts
Effect on motivation of regular salespeople
Pressure on margins-reduce profit levels
2.24) Number of staff required
The workload approach allows the number of salespeople required to be calculated based
on the number of customers and how many visits they require per year. 15 salespeople
would be required to make the required number of visits to each client.
2.3) Proposal
It is recommended a customer/industry structure combined with Key Account
Management should be implemented. A product structure would not provide a consistent
sales process; orders may be lost due to frustration and lack of knowledge of the product
