The Importance Of Sales Force Structure

After maintaining significant growth and establishing a strong reputation, it is necessary to expand the business in order to continue its success. Whilst the company was starting out, simply selling cabinet hardware to large contractors, an effective sales force structure would be territorial sales. This way the sales focus on a specific line of products to many different contractors, which can be in numerous locations. This sales force assigns each salesperson to an exclusive territory in which the salesperson sells the full range of the company’s products. However, now that the company is expanding and changing, it seems that there may be a more appropriate sales force. The new, most appropriate structure is customer/market sales force structure. …show more content…
In customer sales force, the customers are of emphasized importance. It is already apparent that the company has established a great reputation with its previous market, so it is strongly within reach for the new market. The workers will be given different groups of customers and large clients to personally adhere to the needs of these customers. This is an effective way to build and maintain strong relationships with new customers. Moreover, having a strong connection with the customers helps them know that they matter to the company, and it also gives great insight into how the products are doing, how customers are responding to the products, and this can help the company plan its future. This seems more effective than the territorial sales force structure because the focus is less on customer relations are mainly focused on how many groups or customers the company can reach out to. This is a great structure for reaching out to contractors because they are in need of the …show more content…
There are four important factors within the compensation, fixed amount, variable amount, expenses, and fringe benefits. Generally, it is a good idea to have a mix of these ideas that will best fit the company. Since the company is trying to sell products to end customers through national retailers, being paid on commission would not be a good fit. Instead, having a salary plus a bonus for those who meet certain requirements would be more effective. Setting standards like a certain number of good customer reviews, or checking in with customers can determine whether someone will receive a bonus. This is an effective way to make sure the sales staff are happy, and have the opportunity for more money if they achieve specific goals. This way the sales people’s focus will be on the customer relationships, thus helping achieve a good reputation once again. With the customer sales force structure approach, will provide the right incentives for the workers. If the sales staff were commissioned, the salesmen do anything they can to land a sale. However, this is not the most important element for the business. Being obsessed with making the sale can create bad customer relationships, and, furthermore, it can create an influx of short-term sales. This company has expressed the importance of customer service, and commissions could hinder customer satisfaction. By focusing on goals for the salesmen, more long-term