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Whether the level of compensation is going to be high or low is dependent oncertain factors. In practice, the actual level of compensation is the compromiseof the interacting forces which are outlined below:1. Sales competence:The compensation level is bound to be higher in case of salesmen with calibre,competence or the sales acumen. It is the sales personality experience and otherattributes that decide the compensation payable.2. Extent of advertising:Sales efforts of sales-force are geared by promotional efforts too. Naturally,higher the level of advertising in the sales organisation, lesser will be the inputby the sales-force and hence, lower will be the level of compensation.

3. Degree of training:A highly trained salesman is quite capable of handling the sales job with ease,confidence and grip. However, the company has invested in him to make himworthy of the sales profession. Hence, more the training intensity, lower will bethe compensation level.4. Financial viability:It is the financial strength and viability of a sales organisation that puts limits onthe levels of compensation. Normally, a company which is well to do will nothesitate to pay higher compensation than the one with moderate means.5. Bargaining power:Leaving aside the quality, caliber of salesmen, it is the bargaining capacity thatplays a decisive role in putting higher limits. Thus, stronger bargaining capacity ofthe salesmen fetches them higher compensation level.

6. Method of compensation:Much depends on the method of compensation plan or the method. We havepure salary and pure commission plan and the combination of the two. Thecommission plan and salary and commission plan normally work highercompensation level than mere salary scheme.Managing expenses of sales personnelManaging a sales force requires more than just setting quotas and trackingprogress to determine success. An increase in sales isn’t necessarily a positivething for a business if the expense to generate those sales result in a lowerprofit. Breaking down your sales costs, including those expenses related to yoursales force, will help you set a budget, choose distribution channels and setprices.

Sales ForceBusinesses use different types of sale forces, with individual companies relyingon one or a combination. A sales force might consist of contract outbound andinbound telemarketers, in-house salespeople who sell over the phone, a contractsales firm that represents you in the field or a group of employees who travel tocustomers. You might use a wholesaler or distributor that gets you into brickand-mortar retailers, catalogs or online shopping websites.Direct ExpensesDirect sales force expenses include the costs of the people who sell for you. Ifyou use contractors, these expenses might be limited to commissions. If youhave in-house staff, their expenses would include salaries, commissions,bonuses, payroll taxes and benefits. You would also include the constantexpenses necessary for your staff, such as phones, software, office equipmentand space and computers.

Indirect ExpensesThe support you offer your sales force might vary, resulting in indirect expenses.This can include brochures, media kits, meals and entertainment, gifts, travel,lodging, trade show and conference expenses and training. These are expensesyou would not have if you did not have a sales force, but they are discretionaryand not regular expenses of maintaining a sales force. In addition, handling salesin house might result in customer service costs you don’t have with a distributoror wholesaler.Expense ComparisonsKnowing that using an in-house or contract sales force will result in higher salesis not enough to make the decision as to which one to use. You must calculatethe total expenses associated with each type of sales force to determine yourprofit margins and gross profits. Taking the time to review your spending andcalculating accurate sales force expenses will help you make the rightdetermination for your business.

Staff Meeting and Sales ContestsStaff MeetingA staff meeting is when the members of a staff assembletogether. This assembly takes place to discuss subjects which will help in thesmooth functioning of the institute. Staff Meetings are particularly significant inthe success of any institute. In short, these should be held at every institute so asto ensure effective operation.Need for a Staff MeetingStaff meetings are a really productive method of deciding vitalthings. They also help motivate the staff to do more. In addition, it is also a placewhere the staff exchange ideas and notions. This exchange underlines theimportance of the involvement of the staff. Staff meetings are the perfect placeto inform and update the staff about changes. For instance, administratorsconvey new goals to the staff through these meetings. They discuss the methodschosen to achieve those goals.

Types of Staff MeetingsThere are different types of staff meetings that take place. Each holds differentpurposes and are held at different times. We can divide them into three types:FormalThese types of meetings are planned beforehand and take place at fixedintervals. They are carried out in an organized manner. They have firm agendasand are completed within a particular time. These meetings are structuredstrictly to follow the time limit. For example- preparing timetables, rules, andregulations, construction of curriculum and more.InformalInformal meetings are not as rigid as formal meetings. They are more likely tohappen when discussing an issue and not a whole subject. It is not necessary forthe whole staff to be present. They are done in small groups as well. Time is notan issue here. For example, these usually take place to plan an official meeting.

EmergencyThe administrators summon an emergency meeting when they face unpredictedcircumstances. They are held immediately, at not much notice. These take placeto tackle the situation currently at hand. For instance, when a disaster happenslike a fire breakout, cases of indiscipline, a visit by a scrutinizing expert andmore.Process of Staff MeetingSometimes it happens that staff meetings fail to create an impact. They do notmeet their set goals due to various reasons. That is to say, the correct processmust be chosen. When a meeting will be held following the correct process, theresults will be more efficient. The process includesPreparationBefore the meeting takes place, make sure to be prepared thoroughly. Always setan agenda for the meeting. Otherwise, the staff meeting will be pointless.Convey the set agenda beforehand to the members. This allows the staffmembers to prepare in advance. It also makes them more involved.

ExecutionThe preparation beforehand makes it easier to execute the meeting. During themeeting, it is necessary to not lose track. Keep the focus on the agenda as well as onthe time. Cover up all the crucial topics. Summarize everything discussed at the endto clear any queries.Follow-upThe most important part is the follow-up. Simply fixing an agenda will not do it.Following-up about the progress of the task is crucial. Remind the staff about thegoals set at the meeting. This way they will be on their toes and will achieve fruitfulresults.Sales ContestsA sales contest is a motivational program in which rewards are offeredto sales people based upon their sales and/or results. There are three types: Direct competition — the sales people compete against each other and there isone winner Team competition — there are teams which are rewarded collectively for winning. Goal — rewards are given for achieving goals which may be won by more than oneperson

Sales Organization StructureCompanies can have many organization structures, but the most typical salesorganizational structure consists of the shareholder, board of directors, the salessupervisor, distribution manager, business manager, promoting supervisor,logistics supervisor and employees.Structure of the Sales Organisation:The following factors are to be taken into consideration while designing thestructure of a sales organisation:1. Nature of the market2. Sales policies of the enterprise3. Nature of the product4. Number of products

5. Availability of financial resources6. Level of distribution system7. Size of the company8. Price of the product9. Ability of the professionals10. Position of competitors’ Products.

This following image represents a basic sales organization structure for anenterprise.

Types of Sales Organization StructureOrganization structures can be described viz. – formal and informalorganizations, horizontal and vertical organizations, centralized anddecentralized organizations, line and staff organizations. Formal organizationshave rigid structures and reporting relationships which often result in poor flowof communication.Informal organizations do not have a rigid hierarchical structure, setcommunication channels or reporting relationships. Vertical organizationstructure is a traditional management structure with authority being the basis ofcontrol.They have more hierarchical levels. Horizontal organization is one in which bothmanagement levels and departmental boundaries are reduced greatly.Decentralized sales organization is one in which each division within theorganization has its own sales force to sell the products of that division alone.

Sales organizations can be classified into four basic types:Type # 1. Line Organizations:Line organizations are the oldest and simplest form of sales organizationstructure. Generally these kinds of structures are observed in smaller salesorganizations who have small number of sales executives. The companies havebeen found to cover limited geographical areas or the sales executives are foundto sell a narrow product line.The orders as such pass from top down. It is the top executives who exercise lineauthority and each lower level executive is supposed to report to one top boss.All managers have line authority to direct and control their subordinates.The line sales organization structures are extensively used in companies whereall sales personnel report directly to the sales manager. In such companies, thetop boss is occupied with the responsibility of active supervision and has verylittle time as such to work on plans in tandem with the other top executives inthe company.

2. Line and Staff Sales Organizations:These kind of structures are generally observed in large and medium sized companiesthat employ large number of people as sales executives and they are found to selldiversified product lines across wide geographical areas. Specialist staff managers areavailable for sales managers. It is the staff manager who assists as well as advises theline managers.The difference between line organizations and line and staff organizations is that thiskind of structure provides the top level executive with a group of specialists who areexperts in various areas of sales and marketing like dealer and distribution relations,sales analysis, sales planning, sales promotion etc.It is these experts who help the top boss to concentrate on various planning andpolicy related matters and not just focus on daily discipline and control. The staffsales executives do not however have the authority to issue orders or directives. It isonly after the approval of top executive that necessary recommendations made bythe staff executives are executed through line organization.Some of the advantages related to line and staff organizations are better marketingdecisions and superior sales performance. Specialization is another advantage ofthese organizations.

3. Functional Sales Organizations:These organizations are based on the principle that each individual in anorganization should have as few responsibilities as possible. The principle ofspecialization is utilized in these cases to the fullest extent. Assignments of dutyand delegation of authority are made according to function. Each functionalspecialist has line responsibility over sales people. These structures are used bylarge companies with a number of products or market segments.Irrespective of where a particular function appears in the organization, it is in thejurisdiction of the same executive. In these structures, sales people receiveinstructions from several executives but that is on different aspects of their job.The provision for coordinating the functional executives is made at the top oforganization hierarchy. Unlike line and staff organizations, in functionalorganizations all specialists have some kind of line authority. As the exhibitshows, a sales people over here receives directions from a number of memberswho are above him in the hierarchy of the organization.

4. Horizontal Organizations:Horizontal organizations are found to remove management levels and departmentalboundaries.It is generally used by firms who have partnership relationships with customers.Some of the major advantages of horizontal organizations are reduction insupervision, cutting on unnecessary tasks and costs and enhancing the efficiency tocustomer queries and complaints.Relationship of sales department with other departmentSales and ProductionIn the earlier times it was make and sell philosophy, the companies would make ormanufacturer product and then sell it in the market. So, as we all know the seller wasthe king, also production unit would start their work only after orders was secured,specially in the case of a b to b scenario, where it was purely and purely that onceorders was secured and half payments were accepted, only and only then would theproduction and operations department begin manufacturing the same.

Today the times have change, today it is the sales are forecasted and productionis based according to sales forecast and sales potential. So, the sales teamprovides inputs into production planning and unitary management.Sales team understand the product better, and when they have to explain youknow the technicalities of the product during sales presentations to the theircustomers or to their clients when they have to explain the product technicalitiesto the channel partners and who will for the push it down to the end customer inthe case of b to c in all these cases technical information provided by theproduction operation department is of immense help to the sales people.The sales team provides information to the production team or the operationteam about customer needs wants preferences, customers complaints orfeedback with respect to existing products and product line. So, the operationsteam gets an idea about what is required or if there are complaints, where arecomplaints, what can what can be done to minimize such complaints of suchcustomer grievances with the product and so this gives vital clues to them forproduct design as well.

sales department and R & D departmentSales department also works and close coordination with the R and D and this isextremely important. Sales as always been regarded as a line function in the staffhas been dedicated as, sales is always been considered as a line function and thesales department and the marketing department have performed the line role.The R and D has always been regarded as a staff function in most cases.However, in companies which deal with biotechnology or which deal withpharmaceutical drugs etcetera there of course, R and D also is used the role of aline function.But, in most cases the production and operations, the sales, they are regarded asthe line function for an organization and the R and D is regarded as a stafffunction. But the role of the R and D cannot be under mind because any kind ofchanges which have been made through the product have to be made in thedesign first and this has to be done by the R and D team.

Sales Department and HR departmentAgain the HR function also in most organizations is a staff function, but the salesdepartment needs the HR function all the time. Because the when the sales in caseof sales force management whether it is to do with recruitment selection, training,motivation, compensation etcetera in all of these cases the broad structure isuniform for every employee in the organization and that is decided by the HRdepartment. But because the sales team is different the sales job is different, certainchanges are required with respect to you know job analysis, recruitment selection,training, performance, appraisal, compensations, systems etcetera. And to suit theunique nature of the sales job such changes need to be made in you know in the HRpolicies which are which are then more customized for the sales function only.So, while the HR policies will be uniform for everybody certain changes need to bemade in the HR policies to suit the needs and interest of the people in the salesforce. That is why there is always a requirement of customizing them or changing thenature of these policies as HR policies to suit the needs and wants of the salesfunction. The various HR policies are actually revised or redesigned to suit the salesjob.

Sales and FinanceThe sales and finance team also work together. The sales department has the financefunction or the finance department by sharing a with them information with respectto sales estimates, sales potential, sales forecast, and this helps the company decideon its budget.So, the finance department helps the sales department also by giving theminformation about credit checks of the clients, giving them information aboutcustomer credit order to payment cycles.Sales and AccountingSales and accounting. Now, earlier the accounting department was immensely reliedupon, hugely relied upon by the sales team for several things. Like billing ofcustomers or computation of wages and salaries for the sales team, computation ofincentives for the sales team, the sales and cost analysis, also you know receivablesworking capital etcetera. However, with the development of the marketinginformation systems these activities and now taken care by the information systemdepartments.

Sale and PurchaseSales and purchase department. The sales department provides information thesales estimates, forecasting, sales forecast, sales potential and sales estimate.So, this course these estimates go to the purchase department and it assiststhem in procuring, stocks of raw material and other items. So, that productioncan go on unhampered and information about the sales depar

Sales Force Management (SFM) is a sub-system of marketing management. It is Sales Management that translates the marketing plan into marketing performance. That is why sales force management is sometimes described as the muscle behind the marketing management. Actually sales force management