Qualitative objectives
a) Selling job f) Customers in selling
b) Existing accounts g) Provide technical advice
c) New customers h) Assists with the training
d) Customers co-operation I) Provide advice and assistance
d) Customers informed on changes j) Collect and report market information
Quantitative objectives
a) Certain market share
b) Sales volume
c) Number of new accounts
d) Personal selling expenses
e) To secure targeted percentage
Formulating sales policies
Formulating sales policies is nothing but the Policies related to marketing.
There are three major types…..
1) Product policies (what to sell)
2) Distribution policies (who to sell)
Channel design and channel types
Channel remuneration, motivation and training
Channel principal relations
Channel costs
3) Pricing policies
a) Relative to the competition
b) Relative to costs
I) Full cost Pricing
ii) Promotion pricing
iii) Contribution Pricing
c) Uniformity of prices
d) List pricing
e) Discounts
Structuring the sales force
Organizations usually structure their sales force on a territory basis or on a
product/product line basis.
In the case of territory based structuring, the same salesman handles all the
products or product lines of the firm in given territory, which will be compact.
In the case of product based structuring, several salesman of the firm operate
in a given territory, each handling different products of the firm. Here the
sales territories will be relatively larger.
Deciding the size of the sales force
If a company has too few sales persons, opportunity for sales and profits go
selling reduce net profit.
3 basic approaches are used in approximating the sales force size they are:
1) Work load method
2) Sales potential method
3) Incremental metho
Workload Method
According to this method the basic assumption is that all sales personnel
should shoulder equal workloads.
The companies applying this approach generally assume that the interactions
of three major factors – customer size, sales volume potential and travel load
– then determine the workload involved in covering the entire market.
The six steps in calculation workload approach is as follows :
(a) Classify customers, both present and perspective, into sales volume
(b) Decide on the length of time per sales call and desired call frequencies on
each class.
(c) Calculate the total workload
(d) Determine the total work time available per sales person
(e) Divide the total work time available per salesman by task
(f) Calculate the total number of sales people needed
Practically many organizations using this method some are IBM, AT & T etc.
a) Selling job f) Customers in selling
b) Existing accounts g) Provide technical advice
c) New customers h) Assists with the training
d) Customers co-operation I) Provide advice and assistance
d) Customers informed on changes j) Collect and report market information
Quantitative objectives
a) Certain market share
b) Sales volume
c) Number of new accounts
d) Personal selling expenses
e) To secure targeted percentage
Formulating sales policies
Formulating sales policies is nothing but the Policies related to marketing.
There are three major types…..
1) Product policies (what to sell)
2) Distribution policies (who to sell)
Channel design and channel types
Channel remuneration, motivation and training
Channel principal relations
Channel costs
3) Pricing policies
a) Relative to the competition
b) Relative to costs
I) Full cost Pricing
ii) Promotion pricing
iii) Contribution Pricing
c) Uniformity of prices
d) List pricing
e) Discounts
Structuring the sales force
Organizations usually structure their sales force on a territory basis or on a
product/product line basis.
In the case of territory based structuring, the same salesman handles all the
products or product lines of the firm in given territory, which will be compact.
In the case of product based structuring, several salesman of the firm operate
in a given territory, each handling different products of the firm. Here the
sales territories will be relatively larger.
Deciding the size of the sales force
If a company has too few sales persons, opportunity for sales and profits go
selling reduce net profit.
3 basic approaches are used in approximating the sales force size they are:
1) Work load method
2) Sales potential method
3) Incremental metho
Workload Method
According to this method the basic assumption is that all sales personnel
should shoulder equal workloads.
The companies applying this approach generally assume that the interactions
of three major factors – customer size, sales volume potential and travel load
– then determine the workload involved in covering the entire market.
The six steps in calculation workload approach is as follows :
(a) Classify customers, both present and perspective, into sales volume
(b) Decide on the length of time per sales call and desired call frequencies on
each class.
(c) Calculate the total workload
(d) Determine the total work time available per sales person
(e) Divide the total work time available per salesman by task
(f) Calculate the total number of sales people needed
Practically many organizations using this method some are IBM, AT & T etc.
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