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What are some of the challenges in setting up a sales force structure, as well as a sales compensation plan for sales teams?
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The solution discusses the challenges and issues in setting up a sales force structure and sales compensation plan. References are included.
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Setting Up a Sales Force Structure
According to Landry, et. al., it is difficult to keep and maintain an effective sales force. This is especially true in industries that are undergoing constant change such as globalization, change in competitor's techniques and tactics, internal strategic shifts, and deregulation. After all these changes, sales forces usually become misguided in succeeding as they have lost tract of customer behavior and the best practices to undertake. The challenge is to develop an adaptive sales force that has the ability to address effectively sudden detours in the marketplace. It helps protect sales and revenue aside from increasing growth and productivity. The first step is to develop in-depth profiles of customers so that the company learns what the customer cares about most and who decides most? The next is defining the sales approach and specialization. The third important step is the establishment of the structure and management model. The company must decide how the internal structure in the sales force must be designed.
According to Zoltner, et. al., there are two broad types of issues that sales forces have to deal with in their attempts to accelerate performance. One type of issue entails urgency and those that require immediate action are called Alpha issues. Alpha issues greatly affect the structure of sales force. Among these Alpha issues are as follows:
? Consolidation causes the existing sales force to be infeasible.
? Mergers greatly affect sales ...
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