Sales Force Objectives and Strategy

Last Updated on Mon, 11 Dec 2023 | Sales Force

Each company needs to define the specific objectives its sales force will achieve. Increasingly, companies are setting objectives for sales reps based not only on sales volume and profitability targets, but also on their ability to create customer satisfaction.

Consider Tiffany, the famous retailer of expensive jewelry. A purchase in this store can be like an investment, so management trains its retail sales staff to be consultants rather than strictly salespeople. Salespeople are trained to offer advice and information about the quality and cut of stones, the suitability of various settings, and the choices available in various price ranges. Even when selling less expensive items, salespeople know that part of the purchase is the experience and prestige of shopping at Tiffany. They also know that a satisfied customer is a potential repeat customer. In addition to its retail sales staff, Tiffany has 155 field reps, a catalog, and a Web presence (www.tiffany.com) to serve corporate customers. Training for new corporate sales

Figure 5-15 Designing a Sales Force

Figure 5-15 Designing a Sales Force reps lasts for 6 to 8 weeks, and only when new hires have mastered the skills, knowledge, and products are they allowed to deal with customers.4

To implement the firm's sales objectives, a common strategy is for sales representatives to act as "account managers," arranging fruitful contact among various people in the buying and selling organizations. Selling increasingly calls for teamwork requiring the support of other personnel, such as top management, especially when national accounts or major sales are at stake; technical people, who supply technical information and service to the customer before, during, or after product purchase; customer service representatives, who provide installation, maintenance, and other services; and an office staff, consisting of sales analysts, order expediters, and administrative personnel. An example of a successful sales team orientation is provided by DuPont. Finding that corn growers needed a herbicide that could be applied less often, DuPont appointed a team of chemists, sales and marketing executives, and regulatory specialists to tackle the problem. Working together, they created a product that captured $57 million in sales during its first year.5

Once the company decides on objectives and strategy, it can use either a direct or a contractual sales force. A direct (company) sales force consists of full- or part-time paid employees who work exclusively for the company. This sales force includes inside sales personnel, who conduct business from the office using the telephone, fax, and email, and receive visits from prospective buyers, and field sales personnel, who travel and visit customers. A contractual salesforce consists of manufacturers' reps, sales agents, and brokers, who are paid a commission based on sales.

Continue reading here: Sales Force Structure

Was this article helpful?

0 0

Recommended Programs

Agency Client Finder

Agency Client Finder

Related Posts

Readers' Questions

  • LENA
    What is sales force meaning, objectives and strateguees?
    10 months ago
    • Salesforce is a cloud-based customer relationship management (CRM) software platform that helps companies manage customer relationships, sales and marketing activities, and customer service. The objective of Salesforce is to enable businesses to be more successful by helping them identify, acquire, and retain customers. It does this by providing comprehensive tools to help businesses build relationships with their customers, collect data, analyze insights, and drive sales activities. The strategy used to achieve this goal typically involves leveraging Salesforce’s platform to store and manage customer data within a single system. This allows businesses to access and analyze customer information quickly and accurately, helping them to create highly personalized experiences for their customers. Salesforce also provides numerous tools to help businesses streamline their sales processes, such as automated workflows, predictive analytics, and lead scoring. By leveraging these tools, businesses can make their sales processes more efficient and effective. Finally, Salesforce provides customer service solutions designed to improve customer experience, such as customer self-service portals and omnichannel support.
    • erik
      How company objectives and strategy affects sales force specialization and structure decisions?
      1 year ago
      • Company objectives and strategy can have a direct impact on sales force specialization and structure decisions. For example, if a company is focused on producing quality products, they may need to structure their sales force in order to focus on specific product lines, as opposed to having a more generalist sales force. Similarly, if a company is focused on a growth strategy, they may need to specialize their sales force in order to capitalize on growth opportunities in particular markets or customer segments. Specialization will also help sales reps to better focus their efforts in areas that are likely to yield the best results for achieving company objectives.
      • Stefanie
        What is selling in sales force objectives and strategy?
        1 year ago
        • The selling objectives and strategies in Salesforce refer to the goals and tactics used by a sales team to effectively sell products or services.
        1. Sales Objectives:
          2. - Increase sales revenue: The main objective is to generate more revenue by closing deals and meeting or exceeding sales targets. - Customer acquisition: Acquiring new customers and expanding the customer base is a significant objective to achieve growth. - Customer retention: It's important to focus on retaining existing customers and ensuring satisfaction to foster loyalty and encourage repeat business. - Market penetration: Expanding market share by selling to new target markets or increasing sales within existing markets. - Product or service positioning: Promoting the unique selling proposition of the products or services to differentiate them from competitors. - Sales force effectiveness: Ensuring the sales team is efficient, productive, and able to close deals effectively.
        2. Sales Strategies:
          3. - Identify target market: Segment and target specific markets that are most likely to benefit from the product or service being offered. - Develop sales plans: Create strategic plans detailing objectives, target markets, sales resources, timelines, and metrics to track progress. - Relationship building: Build and nurture relationships with prospects and customers through personal interactions, providing value-added information, and addressing concerns. - Sales process optimization: Streamline and optimize the sales process by identifying bottlenecks, automating repetitive tasks, and utilizing technology. - Sales team training and development: Continuously train and develop the sales team to enhance their skills, product knowledge, and selling techniques. - Collaboration with marketing: Collaborate closely with the marketing team to align messaging, campaigns, and lead generation efforts to support the sales process. - Reporting and analysis: Utilize Salesforce's reporting and analytics capabilities to track and measure sales performance, identify trends, and make data-driven decisions. By setting clear objectives and implementing effective strategies, sales teams can maximize their efforts and contribute to the overall success of the organization.
        • REBECCA MILANO
          What are the objectives of a sales force?
          1 year ago
          • The objectives of a sales force can include increasing sales and market share, building customer relationships and satisfaction, maintaining customer loyalty, developing strategic partnerships, and reaching targeted consumers.