Agree. Because, today the world has globalized and there is a huge/ blistering competition among businesses. As a result of globalization, transportation and communication have improved, as well as in technology also has a significant development. So, businesses have become more practical. Consumers now access to the best products and services from various countries. With rapid changing lifestyle, the competition among countries has increased to provide goods and services with newest in technology.
There are different nations, religious viewers and culture holders in the international market. Sales staff members who are operating in an international environment should have at least a minimal knowledge of above factors. When companies deal with the international market, sales staff has to plan and implement various strategies according to cultures, norms, religious views, believes of different countries, some special trade legislations (e.g.: World Trade Organization, enter into the European market - legislations of European Union (EU), enter into the UK market - regulatory bodies of Competition Commission) and also those strategies should suit for the accomplishment of company goals. As well as they have to plan a strong marketing mix suitable to the international market for competing with competitors and succeeding the international market. Sometimes, strategies and marketing mix should be differed from country to country. For that, they have to gather more details and information more than local information. Before set strategies and marketing mix, following process should be considered.
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Identify the target market - with whom the sales team can be able to reach the sales target as company expected.
Identify key drivers - the ways help sales team to accomplish sales targets/goals.
E.g.: if the company set a goal to increase profit by 5% within this year, how will products help them achieve that goal.
Identify the language to address or people use - use the appropriate and attractive language for addressing the audience.
E.g.: to address technical audience, use the technical language and ideas, for finance people, use numeric data to imprint the message.
Determine selling products exactly - identify what is going to sell.
e.g.: is it a new product idea.
Connect the target audience with benefits of the product - there are clear differences between features and benefits. Salespeople should understand and know the key differences.
Features are what your product or idea does.
E.g.: new software - fast and easy
Benefits are what those features mean to the target audience.
E.g.: new software - people will have more time to do other tasks.
Highlight the Unique Selling Proposition (USP) - customers buy the best possible solutions fulfill their needs and suit for their budget. Highlight what makes particular product uniquely relevant to the customers.
Sometimes they have to put more effort to find out appropriate and accurate information and may have to face more difficulties and failures when implementing strategies. As well as before implement new strategy they should do long term research than local environment.
International selling is based on direct exports and indirect exports.
Direct export - sales to the final user rather than using an intermediary, maintain overseas agencies and distributors.
Indirect export - company's products are sold abroad by other organizations.
Export houses - export houses are firms which facilitate exporting on behalf of the company
Specialist export managers - export management offer a full export management service
Buying offices of foreign stores and government (e.g.: many foreign companies have buying offices in UK)
International marketing mix
The factors should be considered in the international marketing mix and some strategies used by some companies are indicated below as examples.
International product strategies
Company should take into consideration cultural background, buying habits, levels of personal disposable income in order to deliver a tailored marketing mix program to suit their needs.
e.g.: 1. McDonald is a global player. Their burgers are adapted to local needs of different countries. In India, cow is a sacred animal. So, in India McDonald serves their burgers with chicken or fish.
2. Mexicans are more interesting for spicy foods. So, in Mexico burgers serves with chili sauce.
Always on Time
Marked to Standard
3. Coca Cola is taste sweeter in some parts of the world than in others.
International promotion strategy
Advertising messages in countries may well have to be adapted according to the norms of particular country. Because there are some language barriers, cultural and religion believes. As well as before implement the promotion strategy company should aware about the level of television penetration, the control of the government over advertising on TV and radio, the popular advertising media of various countries.
e.g.: 1. Consider about using colors in India.
2. In Japan, they believe white is the color for mourning.
International pricing strategy
International pricing is considering about fixed and variable costs, competition, company objectives, proposed positioning strategies, target group, willingness to pay, the costs of transport, any tariffs or import duties that may be levied on products, currency which expect to be paid in.
Furthermore, exchange rate fluctuation will also impact profitability and influence pricing decisions.
There are some other factors to consider when pricing for international market such as local incomes of the country, income levels, general economic situation of the country and how does it influence pricing.
International distribution strategy
Company should concern international distributional channels.
e.g.: A standard distribution channel in the UK may go from a manufacturer, wholesaler, and retailer to consumer or direct from a manufacturer to a retailer.
International market attractiveness
Overall risk of returns in the industry
Opportunity to differentiate products and services
Distribution structure(retail, direct, wholesale)
Further, the sales staff which deals with international market should aware about new international trade trends and always should seek new opportunities.
e.g.: 1.There is a huge demand for organic products especially in European countries and Australia. So, coir based products manufacturers can easily enter into the European market with coir based growing products.
2. European and most of other countries seek organic fruits, fresh flowers, local spice products and ayurvedic and herbal products.
3. Hand loom fabrics.
When considering above factors, it is cleared that sales staff members who are operating in an international environment should play a different role compared with sales staff members from a local environment.
2.3 "There is a possibility to explain the purpose/s of participating for the trade fairs"
Agree. Actually there is a possibility to explain the purposes of participating for the trade fair. Because, the main purpose of participating the trade fair is deal with customers, as well as sales people can take an opportunity to develop and build up public relations. More, sometimes companies take trade fairs as an opportunity to promote their existing and new products or services. The purpose/s of participating for the trade fairs comply with the strategic plan of the company/sales division. Trade fairs and exhibitions offer several opportunities for following factors as well as those benefits are become main purposes of participating for the trade fairs.
Promotion and selling
Networking within the industry and clients
Testing the response to new products
Researching the competitor products and suppliers products
For reach above purposes, sale staff should have a good plan and preparation not only for before the trade fair but also at the trade fair and after that.
Before the trade fair they should plan
Stand design, display and service
Accommodation and transport for personnel
Pre-arranged meeting and visits
At the trade fair they should
Record all visits
After the exhibition
Follow up the customers - send thanking letters for the audience and if a customer has purchased a product or service check whether that order has been fulfill or not
Include all visitors' record into the customer data base in the company.
For more details, the purpose/s of participating for the trade fairs can be categorized into six major areas and exhibitions/trade fairs provide opportunities to succeed following purposes.
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Primary purposes of participation
Meet new markets (foresee the niches in the market)
Observe the competitiveness
Evaluate export chances
Exchange experiences with others
Commence co-operation arrangements
Contribute in specialist events
Identify development trends
Increase the profit
Build up personal contacts and public relations
Meet new customers
Increase company status
Enhance the effectiveness of advertising among customers and the public
Corroborate press relations
Discuss requirements with customers
Develop existing business and customer contacts
Gather information about new market
Research and sales training
Price and conditions purposes
Offer a cogent range of product or services to the market
Expand the distribution network
Find out new agents
Investigate the acceptance of the product or service range
Evaluate the success of a product or service launch
Introduce product variations and innovations
Expand the range of products or services
Purposes regarding visitors
gain a general idea of the market and specialist areas
evaluate the situation of the market
compare the prices and qualities
identify specific products
look for new products
identify market trends
get knowledge about the technical functions and nature of products or services
find solutions for current problems
build up business contacts
seek out contacts
Role and objectives of Sales Management
Sales strategies and corporate objectives
Before plan sales strategy, sales objectives should be taken to consider with marketing mix and corporate objectives of the company. The process of setting sales objectives as follows.
Above figure explains the process of build up sales strategy for the achievement of corporate objectives. Marketing objectives and strategy incorporate with corporate strategy for the accomplishment of corporate objectives. Then sales objectives and strategy are marketing tactics incorporate with marketing strategy in order to carry out marketing objective.
Before set sales objectives and strategy, marketing objectives should be taken for the consideration. For an example, the corporate objective is increase the profitability by some percentage over two years. To accomplish that goal, production department could cut costs and marketing department should build up marketing strategies to increase sales revenue by means of marketing mix. The hierarchy of above procedure as follows.
Corporate objectives (Increase profits)
Marketing objectives (Increase sales revenue/ market share/ sales volume)
Objectives for the marketing mix
(Increase some percentage of revenue from new product)
(In support of market share - penetration, skimming)
(Increase awareness, recall sales leads)
(Speed of delivery, coverage)
Marketing objectives are often expressed in sales terms. For an example, a company hopes to increase the market share to 40% by a particular year. According to this marketing objective, sales manager can develop the sales objective as, forecasting the market share of 40% in particular year will equal to 0.5 million pieces of product and set an objective to sales team to sell 500 more pieces of product per month by particular year. The individual sales objectives can also be set according to this, with the sales force of ten, each sales person needs to sell 50 extra pieces of product per month by particular year. Sales strategies can be implemented by mean of the marketing mix in order to carry out corporate objectives.
Product life cycle and different sales strategies
Research and development
Extending the life cycle
Competitors enter into the market
Selling a new product/service in the launch stage (Achieve a trial) - the launch period of a new product or service is the most significant time period of its life cycle. Most of products are launched fail to become successful mature period because of the despite testing and screening at the new product development stage. The salespeople need to recognize that from the customer's point of view, a new product is a risky option. There are some sales strategies that can be used to counter the risk factor.
Issue free trails or tests.
Provide guarantees and warranties to insure the continuing performance.
The backing of the company endorses the product or service with company image and reputation for innovation, quality, reliability and performance.
Provide advice and recommendation of salespeople. It is very valuable to establish relationship of trust between the customer and sales representative. It will be a valuable asset to the company when launching a new product.
Commitment to a major advertising and promotional launch for a new product for the resell market. It will help prove to retailers the product will be profitable.
Provide special offers on after sales service. Such as technical support and training.
Use a lower introduction price as a strategy to ensure rapid penetration of the market.
Selling products/services in the growth stage (forestall competitors) - the easiest stage in which to be working in the product life cycle. A less risk involved in the purchase. And also more awareness and interest in the product/service, because the new product/service is already established and proven. However, the growth stage is a short time period and at some point, it will level off as the market reaches saturation. The main sales objectives of this stage are,
Implement many marketing activities to ensure company loyalty, because new competitors enter into the market in this stage.
Sales team is able to reach the customers before competitors do.
to fulfill above objectives
Visit potential customers and
Plan sales journeys can be used as strategies.
Selling a mature product (account maintenance) - in this stage most sales will be repeat purchases and few new customers. And also unlikely to be any overall increase in the market sizes. This is usually the longest time period of the product life cycle. The role of salespeople becomes one of account maintenance. The objectives of this stage are,
Provide good quality customer care.
Easy re-ordering and maintain regular sales contacts.
To accomplish above objectives, sales division can implement a strategy to use separate sales teams with different set of skills than the creative development of new sales to handle new accounts and maintain existing accounts.
Selling to new markets - at the mature stage of the product life cycle can develop modification strategies towards accomplish the objectives of extend the life cycle of the product, win new sales, protect existing market share.
Product - modification to features and performance for attracting new customers and retaining existing customers, gaining competitive advantage)
Market - present the product to a new group of customers. The sales team needs knowledge about the market, needs and key decision makers. Publicity and press coverage, advertisements and promotional activities could be used for generating awareness.
Modify the marketing mix.
Selling in the decline stage - in this stage customers are switching to new products. A product is withdrawn is to maintain the business and loyalty of the customer, handling worries about services and spares for existing purchases and helping customers to find alternative products are the tasks of salespeople at this stage.
Recruitment is the process of selecting a supply of possible candidates for the vacant positions of the organization.
The characteristics of a salesperson
Initiative and creativity
Methods and media of recruitment
Recommended different methods and media for recruiting employees that can be used for both organizations as follows,
When they are selecting advertisement as a method, there are some factors have to consider when select the advertising medium. Those are
The type of the organization
The type of the job
The cost of advertising
Readership and circulation
The importance of recruitment and selection procedure are.
Fill an identified skills gap
To replace staff who have been promoted or who have left
Work of the team has expanded
The overall aims of recruitment and selection process;
definition of requirements
There are three main recruitment tasks followed in sales management when recruiting the sales staff. Those are,
Job qualification/ person specification
Job analysis is the process of analyzing, setting out information about the content of a job in terms duties, responsibilities, tasks, necessary skills, knowledge, qualifications, abilities, outcomes and work environment of a job. The person who responsible for preparing a job analysis should obtain better comprehension of day to day activities of the salespeople before complete a job analysis.
Information from job analysis
Information that can be obtained from job analysis (basic facts)
Information that cannot be obtained from job analysis (subjective issues)
Purpose of the job
Content of the job - related activities
Accountabilities - results responsible for
Performance criteria - measures the employee
Responsibility - importance of the job, decisions she/he needs to take
Skills, qualifications needed for the job
Organizational factors - who does he/she report to and vice versa
Developmental factors - promotional aspects, career aspects or dead ends
Environmental factors - working conditions, security and safety issues, equipment
The amount of the supervision a person receives
How much freedom a person has to make decisions
Decision making authority
How hard the job is
How the job fits in elsewhere with the company
How work is allocated
Most suitable activities for collect data for the job analysis for a post of sales division,
Questionnaire (Appendix 1 - format of a questionnaire for job analysis)
Interviews with managers, job holders and subordinates - ask about more general aspects ( job purpose, the main activities, the responsibilities involved and the relationship with others)
Easy to organize and carry out
New or follow on questions can be asked in the light of information received
Reveals other organizational problems
Hard to analyze
Interviewee might feel on defensive and might not be entirely frank
Not giving specific answers
Can get specific answers
Easy to analyze
Easy to organize and carry out
Cannot ask more questions and get more ideas
Have to fulfill with specific answers
Cannot reveal other organizational problems
This job analysis helps in order to write the job description of a particular job. (Appendix 2 - job description - sales representative)
The difficult part of the recruitment process is determination of person specification. The person specification describes requirements such as educational qualifications, training and work experience, personal attributes of a job holder to be able to perform the tasks perfectly. (Appendix 3 - person specification)
Selection is the process of choosing the best candidate for a specified position from a number of candidates. Sales division is the most important of the marketing. So, companies should always try to select right person to the right position at the right time.
Application forms analysis - application forms can be used to eliminate totally unsuitable candidates and it acts as a useful preliminary to selection interviews. Assess applications against key criteria in the job and sort them into possible, unsuitable and marginal. After short listing the selected applicants invited to interviews. ( Appendix 4 - application form)
Presentations - reveal presentation skills, communication skills.
Selection tests - a selection test is sensitive enough to differentiate, standardized on a representative sample of the population and reliable.
Assessment centers - measure presentation skills and decision making skills through case studies.
Group selection methods - can check social skills, intellectual skills and attitude, give a longer opportunity to study candidates, reveals management skills, sales skills and personality and can give accurate judgment by comparing candidates.
References - written references as a proofment or telephone references.
For salespeople, interviews and presentations are the most appropriate selection methods. The main purposes of interviews as a selection technique,
Finding the right person for the job
Making sure the applicants understand the job
Giving the best possible impression of the organization
Make all applicants feel that they have been given a fair treatment in the interview
The company can conduct many types of interviews such as individual and panel and there is a good preparation for the interview.
The procedure of conducting an interview
Senior managers in the sales management can follow different selection procedures for the managerial and non managerial positions to measure job holder's knowledge, skills and qualifications to perform their tasks well and achieve sales objectives. Selection procedure for non managerial positions in sales management as follows.
Following figure is about a possible selection procedure that can be practiced in selection process for managerial positions in sales division.
Motivation is the desire and willingness of a person to expend effort to reach a particular outcome.
In sales management motivation refers to the amount of effort sales people are willing to expend to accomplish the tasks related with their job.
Sales performance = Ability x Motivation
According to above equation, there is a consecutive relationship between sales performance and when ability multiplied by motivation. Sales managers should consider increasing the motivation and abilities of sales people to enhance their sales performance. They can follow motivational theories and organize some training programs when enhancing the sales performance. Motivation can divide into two different types as follows,
Maslow's Hierarchy of Needs theory
Sales division can follow Maslow's Hierarchy of Needs theory to motivate sales people.
It is easy to motivate sales force by using this theory. Because, always people are trying to satisfy needs and wants. According to this theory after satisfying one need of level, employees will attend to satisfy another level. It is easy to motivate employees level by level.
Motivation of employees
Recruit some employees as trainees with low salary scale.
Then employees see job security as a permanent employee.
Arranges annual treats and get together parties to increase inter relationships and friendships.
Employees try to maintain social recognitions. Motivates employees by leaving positions and power.
Self esteem level
Employees seek to satisfy some self fulfillments. Promote employees as branch managers/ regional managers or executives
Vroom's Expectancy theory
As well as they can motivate employees according to Vroom's Expectancy theory.
Employees put effort and it will result in acceptable performance. Employees believe that performance will make the reward. Then the company will reward employees. When rewarding employees for their performances, they are concerning to put more effort to fulfill their tasks as company expects.
According to Vroom's Expectancy theory
Motivation = Valance x Expectation
Herzberg's motivational theory
Furthermore, Herzberg's motivational theory also can use to motivate the sales force.
Hygiene factors Motivational factors
According to the above figure, when hygiene factors are at a high level, employees are dissatisfied and demotived. In second situation hygiene factors and motivational factors both are at the lowest level, so employees are not dissatisfied as well as not motivated. But in third situation motivational factors are at a high level and employees are also satisfied and motivated.
Job design theory
Job design theory is also a motivation theory. Job design is the incorporation of the tasks the organization needs to be done into a job for one person. Job dimensions that are thought to contribute to job satisfaction.
There are three ways of improving job design to make jobs more interesting to the employee suggests by Federick Herzberg.
Job enrichment Vertical extension
Job enlargement Horizontal extension
Job rotation Sequential extension
Furthermore, Maccoby has identified five types of different social characters when explores the dominant values that determine motivation.
Companies can use the pay as a motivator. Compensation is any reward or payment given to a person for service performed. The purposes of compensations are,
Attract qualified workers towards the organization
Retain qualified and experienced employees within organization
Motivate employees to perform their duties in perfectly
There are two types of compensations,
Direct compensation - cash received in form of basic salary, overtime pay, bonus and sales commissions.
Indirect compensation - refers to the general category of employee benefit program.(maintain or improve the lifestyle of employee)
Remuneration helps to improve morale, motivation and team spirit of the employees, facilitate recruitment and increase retention. There are mainly two types of remuneration.
Piece rate method - based on unit of productivity
Time rate method - based on the time employees spend on the job
Compensated remuneration has praise and recognition for the particular job. Good remuneration can be more effective in motivate sales people to be more productive. As well as remuneration can be used to enhance the employee morale. Paying someone an incremental bonus for most productivity causes to improve overall morale of others and employees can achieve goals. Furthermore remuneration encourages teams to increase the productivity level. Sales managers can provide bonuses, incentive pay or extra commissions as remuneration for some sales activities such as increase the number of new customers, increasing existing customer orders. It will help to enhance team motivation and sales performance.
Training and development
Performance issues affect to the sales performance and it causes to productivity as well as the profit. When considering a company variable factors are affecting for person's performance at work. Following table is about factors affecting a person's performance.
Organizational and social variables
Physical and job variables
Age and sex
Methods of work
Physical characteristics and personality characteristics
Types of incentives
Design and condition of work equipment
Character of the organization
Types of training and supervision
Work space and arrangements
Intelligence and aptitude
Motivation and interest
Training really covers
Causes based on employees
Causes based on the company
Failure to meet deadlines
Negligence of duties and responsibilities
Weak customer handling
Conflicts in team working
Lack of communication skills
Lack of ability to plan work appropriately
Lack of knowledge required
Less self motivated
Less interest about the job and less effort on work
Lack of attention and judgment
Less self confidence
Education and experience
Physical characteristics and personal circumstances
Age, sex and personality
Failure to provide needful information
Failure to communicate performance expectations
Irregular performance feedback
Failure to provide reasonable resources (office equipment)
Unsuitable office arrangements and working environment
Expectations of unrealistic performance
Deficiency of necessary training opportunities and instruction
Methods of work
Character of the company
Types of incentives
Training and development is the process by which the knowledge, skills and attitudes of individuals are enhanced to carry out their job effectively and the benefits of the organization. Training is a planned and systematic modification of behavior. It can be done through learning events, programs and induction. Development is the growth or realization of a person's ability and potential. It can implement through the provision of learning and educational experiences.
Investigate the business plan, performance reviews, job analysis and existing training. Identify reasons for training and development - less sales achievements, number of customer complains, mistakes done by sales people.
Identify the knowledge, skills and competences needed.
Define the training objectives - make an initial investigation into the identified gap and then se SMART objectives which address,
Behavior - what the trainee should be able to do
Standard - to what level of performance
Environment - under the conditions
Develop the training program
L - Location (off the job/on the job)
T - Time (one day/two day)
T - Trainer (for below level people - sales manager, for management staff - qualified trainer from outside)
T - Train techniques
D - Devices (multimedia, case studies, printed materials)
Implement the training program
Off job training - training courses conducted by an external supplier. The types of the courses are day release, revision courses, distance learning, evening classes. Lecturers, seminars, role play, simulation and computer based training can be used as techniques.
On job training - the organization must take the responsibility any mistake on the job training. The work should not be complex and should have a specific purpose. Instructions, coaching, temporary promotion, 'assistant to' positions, project work, action learning, job rotation, project work committees can be used as methods of on job training.
Induction training - immediate supervisor commence the ongoing process of induction. Pinpoint the areas that the recruit will have to learn in order to start the job. Explain about the nature of the job, goals, and tasks, working hours, leaves, operational systems, structure of the department, whom to report and whom to complain. As well as introduce the recruit to the people in the office, plan and implement suitable training activities. Finally coach, train and review performance.
Measure the progress of the training program (interviews, discussions and achievements of the sales records)
Validation of training - observing the results of the course and measuring whether the training objectives have been achieved.
Evaluation of training - comparing the actual costs of the scheme against the assessed benefits which are being obtained.
Benefits of a training and development program
Benefits for the organization
Benefits for the individuals
Improving performance and thus lower costs and increase the productivity
Less need for detailed supervision
Fewer accidents and better health and safety
To build the corporate culture
Helps to manage change
Helps for recruitments and succession
Enhance knowledge and skills
Help people to do their job better, increasing job satisfaction
Social benefits - develop networks of contacts
Psychological benefits - feeling of contribution
Organizing the sales activities
Some organizations which are no specialization may be based on geographical divisions. All large sales organizations are involving a territorial breakdown.
Pyramid organization structure - the top management at head office and sales supervisors control the sales force in a region. As well as sales force for each territory in a region.
Span of control - the amount of work to be done and the physical condition under which it is done are the factors influencing on span of control.
Amount of supervision required - depends on the size of sales commission.
Size of the sales territory.
Purposes of the territorial design
Reduce travelling cost and time
Give salespeople an equal work load
Keep the organization and administration simple
Sales people can get to know about their sales area and customers
Selling and information technology
Techniques for co-ordinate and control sales out put
Appraisal and performance
Appraisal is a systematic approach to providing the feedback, praise and criticism in context. Appraisal provides an assessment of current performance against which future improvements can be measured and training needs established.
Purposes of performance appraisal,
Review performance - to plan training and development programs and set targets.
Review potential - to plan career development
Increase motivation by providing feedback
Review salaries - measure the extent of salary increase and to whom
Features of a typical assessment system
Identify the criteria for assessment - based on job analysis, person specification and performance standards.
Prepare the assessment report - number of sales, punctuality, customer relationship.
Appraisal interview - exchange views about results of the assessment and targets.
Review of the assessment by the assessor's own superior - to establish the fairness of the procedure.
Preparation and implementation of action plan to achieve improvements.
Follow-up - evaluate the progress of the action plan.
Techniques of appraisal
Overall assessment - the simplest method. The manager writes narrative judgments about the appraisee by checking personality characteristics and performance targets.
Guided assessment - assessors comments on a number of specified characteristics and performance criteria.
Grading - assessor selects one of a number of levels or degrees for given characteristics. It is also known as rating scales.
Numeric values may be added to ratings, alternatively graphic scale may be used to represent general position.
Result oriented schemes - this approach review employee performance against specific targets and standards of performance according to the agreed goals. e.g.: management by objectives (MBO)
Self appraisals - employees carry out their own self-evaluations as part of appraisal. This is an opportunity for employees to reflect on performance as well as beneficial for them to indicate training needs.
Peer rating - an alternative approach to individual appraisal. An employee is judge by colleagues. This will be lead to mistrust and fear of missing promotion.
360 degree appraisal - in this method effectiveness is appraised by all the positions with whom the subject has dealing (supervisors, subordinates, customers, suppliers). It high lights every aspect of employee performance and also gives an opportunity to compare the self evaluation with other's views. As well as it will fairer and more relevant.
Appraisal interview -
The tell and sell method - manager provides details about the assessment and tries to gain acceptance.
The tell and listen method - manager provides the assessment and invites response
The problem solving approach - manager becomes a counselor and helper. The employee is encouraged to think solutions.
Budgets and Profitability
A budget is a quantitative statement for a defined period of time which may include planned revenue, expenses, assets, liabilities and cash flows. There are some main purposes of budget.
Ensure the achievement of the organization's goals
Compel planning (to achieve budgets)
Communicate ideas and plans
Co-ordinate activities (e.g. the production budget should be based on sales expectations)
Provide a framework for responsibility accounting
Establish a system of control
Motivate employees to improve their performance
The budgeting process
Data for the budgeting process
Internal information available
External information available
Preparing the sales budget : reasonable and realistic
Preparing other resource budgets
The master budget
Budgeted profit and loss account
Budgeted balance sheet
Organization structures and procedures
Organizational design/ structure help to identify task allocation, coordination and supervision. It is ease of when direct employees towards the achievements of company goals. If the organization based entirely on geographical division, when design the organization structure following factors should be taken in to consideration.
Hierarchy of authority
Span of control
Amount of supervision required
Size of sales territory
There are some organization structures specialized for selling,
Specialization by function (e.g.: marketing division - sales administration division, research and development division, advertising and promotional division)
Specialization by the nature of goods (e.g.: Hemas group of company - General Manager hospital, General Manager transport, General Manager pharmaceutical, General Manager FMCG)
Specialized by the range of goods (e.g.: Unilever Sri Lanka - Sales Manager Sunlight, Sales Manager Lux, Sales Manager Signal)
Specialized by range of market (e.g.: Damro Manufacturing Company - Sales Manager domestic market, Sales Manager international market)
Specialized by range of customers (e.g.: Sales Manager and Manager customer relations, Sales Manger agents)
Specialized by range of outlets ( Manager supermarkets, Manager mini groceries)
Companies can develop marketing department organization structure according to above specialized structure to ease off sale force management and selling activities of the company.
The combination of function based, based on the nature of goods and based on the range of goods organization structure is most appropriate for a local domestic market targeted company. It is more effective in sales activities and following advantages can be strengths for the sales management.
Easy to understand responsibility and authority
Determine span of control
Explain communication channels
Upward, downward and horizontal communication are available
Increase the skills and experience for variety of tasks
Each division works collaborate and has linkages with other divisions and more information are available