Page 288 - DMGT408DMGT203_Marketing Management

Unit 12: Sales Management

Self Assessment Notes

Multiple Choice Questions:
10. The most common method of organizing a sales force is …………………… organisation.
(a) Geographic (b) Product based
(c) Activity based (d) Customer based
11. In …………………… sales organisation, there is duplication of calls that results in buyer
frustration.
(a) Product based (b) Customer based
(c) Activity based (d) Team
12. Which of these sales organization structures is consistent with the marketing concept?
(a) Geographic (b) Product based
(c) Customer based (d) Team based
13. …………………… are made up of people from different functional units.

(a) Informal groups (b) Product based organizations
(c) Activity groups (d) Teams

12.5 Organising and Managing Size of a Sales Force

Sales forces are regularly assigned particular sales territories. Various factors are taken into
account when deciding the sales force for a particular territory. These include the physical size
of the force for a particular territory, transportation links within a territory, purchasing power
of consumers and their educational and living standards. Therefore, a sales force is deployed
according to the geographical features of the territory and product or consumer requirements.
A company should also devote considerable effort to the training and development of its sales
force. There are two types of training which can be provided to sales force (a) In-house training,
and (b) On-the-job training. It is also necessary for a company to arrange periodic meetings and
discussions with its sales force. Finally, the performance of the sales force can be evaluated on
the basis of targets and actuals.

Case Study From Direct Selling to Direct Marketing

or years Avon lady was a fixture in American neighbourhoods. Selling door-to-
door built Avon into the world’s largest manufacturer of beauty products. Avon
Foperates in 135 countries and besides the cosmetics it also sells jewelry, home
furnishings, and baby-care products. Avon pioneered the idea of hiring housewives for
direct selling cosmetics in the neighbourhood. But in 1980s, as millions of women began to
work outside the home, the cosmetics maker’s pool of customers and sales representatives
dwindled, and its sales faltered. By 1985, its profits were half what they had been in 1979.
Consumer research showed that many women thought Avon’s make-up was “stodgy,” its
gifts products overpriced, and its jewelry old-fashioned. So the company created a more
contemporary line of jewelry, lowered the prices of its giftware to offer more items under
$15, and expanded its lipstick and nail polish colours.
Contd...

LOVELY PROFESSIONAL UNIVERSITY 281