Sales Department Organization and Management
Conduct of the Sale
Organization
A set of standards and protocols must be established and followed for the human factor within an organization. This ensures that by using tangible and intangible resources, the previously agreed-upon target can be reached.
Elements:
- The organization should design standards and protocols that define the human factor’s role.
- The human factor within the organization, composed of workers, should adhere to the company’s guidelines regarding human capital.
- Utilizing tangible and intangible resources:
- Tangible Resources: Physical assets such as machinery, computer equipment, buildings, etc.
- Intangible Resources: Non-physical assets such as intellectual property, patents, brand name, and business relationships, etc.
- Achieving the agreed-upon goal.
The Sales Department
The first step in establishing an effective sales strategy is to structure the sales department into sub-departments.
Definition of Sales Department:
The department within a company that utilizes allocated resources and human capital to achieve specific objectives.
The sales department’s primary goal is to capture leads and cultivate customer loyalty.
- Potential Customer: An individual or entity that may be interested in the company’s products or services.
- Royal Client: An individual or entity that purchases the company’s products or services.
Functions of the Sales Department:
- Acquisition of potential customers through resources such as commercial representation, advertising, direct marketing, etc.
- Cultivating customer loyalty.
- Continuous market monitoring and analysis.
- Execution of administrative processes, including business letters and documents.
Objectives of the Sales Department
- Achieve the expected market share: Market Share = (Total Company Sales / Total Market Sales) * 100
- Represent and maintain the corporate image: Define the corporate image as the set of differentiating features that identify a particular company within the market.
- Present information and variables for analysis. Study the evolution of variables such as competition, customers, products, etc.
Criteria for Organizing the Sales Department
- Organization by Customer Type: Structure the sales department based on the number or type of customers. Suitable for businesses with a limited number of customers generating a high sales volume.
- Organization by Product Type: Appropriate for companies with a small product catalog.
- Organization by Geographical Factor: Divide the sales department into geographical areas where the company operates. Suitable for companies selling products in different territories, domestically or internationally.
- Organization Combining Various Criteria: The most practical approach, where businesses use at least two of the criteria mentioned above.
Possible Sales Department Organizational Charts
An organizational structure is a graphical representation of the company’s organization.
The Sales Department Staff
The structure is hierarchical, with more responsibility at the upper levels and decreasing responsibility as you move down the chart.
Commercial Director / Head of Sales
- The highest-ranking sales manager responsible for transmitting and enforcing guidelines from company management.
- Collects and analyzes feedback and suggestions from subordinates.
Deputy Team / Zone
- Implements guidelines and strategies established by the sales manager and/or company management.
- Sets objectives that contribute to achieving the main objectives set by the company.
Representatives
- Also known as salespeople, their function is to directly manage existing and potential customers, aiming to acquire new customers and retain existing ones.
- They collect and manage customer information and submit periodic reports to the delegate.
Administrative Staff
- Responsible for handling administrative documents issued by the company and processing received documents.
Shop and Commercial Establishment Sellers
- Relevant for companies with multiple commercial establishments.
- Provide service in line with the company’s customer service standards.
- Must possess strong product knowledge and point-of-sale terminal handling skills.
The Sales Schedule
Generating leads and fostering customer loyalty can help achieve the desired sales volume. This needs careful scheduling.
A sales schedule should be agile and logical.
Programming:
The process of dividing goals into sub-goals and assigning human capital to achieve objectives within a specific timeframe.
Concepts:
- Partial Objectives: Short-term goals that contribute to achieving the medium-term (terminal) objective.
- Terminal Objectives: The main objective of a schedule.
- Human Capital: The individuals assigned to one or more tasks.
- Resources: Tangible or intangible tools that enable human capital to effectively achieve the stated objectives.
- Timeframe: The exact date for delivering results. Timeframes should be feasible, adjusted, and non-negotiable.
Objectives: Qualitative and Quantitative
Qualitative:
Identifiable characteristics that the process should incorporate throughout the program.
Three common qualitative objectives:
- Degree of customer satisfaction
- Organization of the sales area
- Degree of involvement of sales representatives
Quantitative:
Measurable objectives that aim to achieve specific figures.
- Sales volume and market share
- Number of first-time customers
- Objectives related to sales conditions
Timing and Objectives
Timing:
Allocating a timeframe for implementing actions and achieving objectives.
- Timeframes should be realistic and fair to the human capital involved.
- Time allocations should be closely monitored to avoid exceeding them and wasting time.
- Deadlines should be non-negotiable.
Motivators in a Program
It’s crucial to have motivational elements for those responsible for decision-making and evaluating results. These can be grouped as follows:
Remuneration Elements:
Financial compensation or rewards given to the sales department for achieving program objectives within the set timeframe.
Personal Items:
Creating a positive working environment and showing respect for all sales department staff. This fosters commitment and ensures that everyone feels heard and valued.