Page 53 - DMGT205_SALES_MANAGEMENT

Unit 4: Sales Strategy Formulation

Notes


Caselet Size of the Sales Force

A company has 1,000 (one thousand) accounts in all the following types:

(a) 200

(b) 300
(c) 500
The salesman is required to call the A accounts 40 times a year for 60 minutes each
B accounts 20 times a year for 30 minutes and C accounts for 15 times a year for 10 minutes
each, in a year.
The salesman would be involved in selling task for 50% of the time, non-selling task 20%
of his time and travelling task for 30% of the time.
Question
If the salesman works for 42 weeks in a year, 8 hrs a day. Find out the total no. of salesmen
required.

4.4 Types of Sales Force Needed

It depends on the role the sales force has to play. The quality of sales force is defined as the
quality of contribution required from the sales force and the work load on them. If pre-selling
has been done by advertisements, then selling becomes easy. Some companies expect their
salesmen to do the entire job, e.g. Instrumentation Ltd, at Kota takes care from commissioning
and installation of equipment to after sales service.
There are two types of specialists – product specialists and market specialists.
Product Specialists are for highly technical products, e.g., marketing of banking services, service
packages like agriculture financing, short and long term financial services. Complicated products
like computers, cardiograms, etc.

Market Specialists know the different markets and can also adopt different sales approaches for
different markets. They need to know more than one line of products.
There can be a combination of both product specialists and a market specialists in the sales force
of a firm.

4.5 Basis for Territory Design

Geographical Basis: Sales persons are grouped according to the existing geographical boundaries.
Sales Potential Basis: Splitting the company's customer base according to dispersion of its sales
potential.
Servicing Requirement Basis: A company splits its total market according to servicing requirement
of its present and prospective customers. Service means the maintaining and developing of
account.

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