1. Welcome to Week 4 Salesforce organisation Ehrenberg-Bass Institute for Marketing Science School of Marketing

2. Week 4 Topics to be high-lighted tonight Salesforce organisation Key account management Sales force types and structures Major assignment

3. Salesforce organisation The personal selling function needs to be organised to meet objectives set in the marketing plan An effective sales organisation also needs to be achieved within the allocated budget

4. Salesforce organisation: Constraints The allocated budget Company policies on customer service The existing sales structure and personnel The need for flexibility in a changing market Company policy on the degree of centralisation vs decentralisation The need for effective communication between the salesforce and internal departments such as R&D, product management, production and finance

5. Key account management The sale, then, merely consummates the courtship, at which point the marriage begins. How good the marriage is depends on how well the seller manages the relationship. (Dalrymple 1998, p 167)

6. The long-term aim is an informal partnering relationship or a mutual dependence This approach may enable the buying organisation to establish competitive advantage in its markets

7. Requirements for relationship selling A high degree of trust Commitment to work closely to understand customers problems and to identify the best solutions Exchange of confidential information hence the need for a longterm focus and for trust

8. Limitations to key account and relationship selling approaches High costs of this type of program Only customers who purchase large amounts and require (and value) outstanding customer service should be targeted

9. Some research findings from the literature POP, N. A., MIHOC, F., FOTEA, I. S., & LAZAR, M. (2011). RELATIONSHIP SELLING: A SUPERIOR WAY OF CONDUCTING BUSINESS ON B2B MARKET. AN EMPIRICAL ANALYSIS OF AN INTERNATIONAL FAST TRANSPORTATION SERVICES PROVIDER ON THE ROMANIAN MARKET. MARKETING MANAGEMENT JOURNAL, 21 (2).

10. Sales force structures Geographically based Product based Account based Activity based Hybrid or combination of above

11. Salesforce structures (contd) In Australia and other small countries, because of the small size of many sales departments .. there often is a need to compromise between ... .. specialisation by customer type .. and .. .. geographic coverage for efficiency reasons

12. Other sales approaches Telemarketing Part-time salespeople Team selling Use of Internet Implications of sales dispersion