Transcript for:
Understanding Sales Force Structures

hello welcome to our next video this video we're going to be talking about cell for structure so first structure fundamentally is mean how we're going to organize our selves people how we going to group them together I'm going to link them to a product service or to our clients all right it is recommended that we should a structure over sale false based on our product or I fundamentally usually based on our product we wish called product orientation back in 1960 but lately is more focused in terms of the market orientation or the customer orientation meaning focus on the customer needs and one rather than focus on what are we selling or how much can we produce and a petunia I believe that you also agree that easy focus on the customer needs and one we will be able to make the customer more satisfied with our product and our service so when they are satisfied in my top of the TP our our brand with their friend and fundamentally they might even come back and buy our products with you know happy happy smile so happy customer meaning happy happy job and then a customer come back too bad for that format now let's have a look at a few types of this structure there are four main type in total so the first one is called geographical structure and then you got product specialization structure industry based structure and account size structure let's have a look at it in detail with the first one of the products specialization product specialization not this one is not for that specialization in fact this is the geographical structure I'm sorry for the wording is names wrongly so this one when I look at the name it was it doesn't make sense when it's in Vinnie's look at a ticker but anyhow basically this one is a geographical the correct name is a geographical structure so we group our sale department or our sale team in different regions so each region we might have one so that we might go like you know a group in Southeast Asia we might have one with euro we might have one in South Africa or is it locally if you're talking to about Australia we might have you know Melbourne Victoria or we might let the Queensland Victoria New South Wales Western Australia that type of thing right so basically the good thing about geographical structure is that we as a seller we tend to understand our customer a little bit more understand local needs and is the local law regulation local you know local market understand he and their so there might sometimes be a little bit of hidden tips on different you know small market for example let's just talk about real estate agent even let's say let's say we talk about Coco's and let the Tim Palma and where Nathan each of these three location might have you know they might have different regulation in the you know building structure so this way if they if seamen in Plantation day group they're if they follow the structure of the geographical structure and they put the specific team in each location each of those team you know specific requirement in each of the region so basically there we know the spatial requirement in particular region very well alright so that is one and also is to do with low cost as well so let's say if that the sale people doesn't have to travel to too far to another department sorry to another location so that is exist the transportation cost as well as a time so the good thing of so in short the good the benefit of the jogo geographical structure is that first is the seller would understand the target market more would understand the the local requirement more save cost save time as well as its help in terms of helping the local investment helping the local economies all right now and in terms of the sale structure from the comedy perspective we're looking at the sale director at the top of the scale next one we're looking at the original many regional sales manager and then area sale manager which lead down to sales manager right so just step by step down a few company that using this type of geographical structure would be a lie industry so let's say a a share you can see very good example and Asia x-rays for customer on the low part of Southeast Asia Taisha focus on Thailand donation Indonesia AirAsia is in Indonesia Malaysia and just in Malaysia and general Malaysia so you can see specific specialized in a specialized geographical alright Telstra also doing that even graffiti we also doing that so you can see that you've got Logan campus we got names and campus and Griffey sorry Coco's campus the different campus we focus on a different you know geographical different target market as well as a course and everything like that but in chart we get to know the specific requirement of that particular location better than the race now next one which this one is meant to be product product specialization so the name is actually swap around this slice is a product specialization and the previous slides was the geographical so basically just swap the name around right so easy group our seller in the depart into different department so basically this product specialization basically we assign a specific seller for a specific department so in the example here you can see fans you can see water pumps so some company let's say like a bunny warehouse my sale of this product and if they put their sale people in a different department like this so each of the department we have specific knowledge about that process specific product so you there we have a good specific knowledge and they might even have some special tips and hints on how to use those particular product as well now and so if you break down the way we break down at the sale director is on top and then product sales manager is next one and a low lowest one is a specific sale people fall on each of the department now some example that some company that's using this type of product specialization would be hospital that you can see very clear one so skillet skiing clinic GP and eyes and all the typing so specific specialization orders you know specific product or service even Myers Orchestra even - you can see clothes the department you can see so so department you can see electronic department you can see toy department right I love toy department basket but anyhow let us say a lot of Legos now when we talk about Telstra you got TV phones you got paid TV you got you know internet or Swiss specialization or the different product okay and you can see that all these products they are still belong to the same organization or business like Telstra alright so that is the product specialization structure next one we got this thing called industry based structure so basically this one we group our sales department between the overall broad industry so this way we normally only very big company we doing this like virgins or something like that would do it now so basically good customer knowledge between the industry are good observation of change between the particular industry okay and can be well known within the industry as well it is target ourselves with an industry like let's say virgin you got airline industry Airlines business between Virgin brand you got like you know our radios TV channels you got some other products as well like our phones and that type of thing right from networking to the communication that's what I meant so this will be industrial base structure which is base their product or target product or are the overall the structure of the industry so as I'm example with virgins which run Airlines radio phones and success data we we mentioned about now lastly a house size structure their car is is one of the good example for medium and small enterprise that you use a lot so basically a cow's eye structure they they break the their structure based on could be in terms of the size of the the customer in term of spending in term of we call key account so if the customers spend a lot of money they become a key account it is if they have a potential high potential spinner to spend a lot of money or potential to stay with us for a long time we call key account if they have a middle range of potential spending money there we call middle size cacao and those customer who spent a little money little money we got a small account all right now in this way we will have a good knowledge about the the customer as well as a good knowledge in terms of the resources in terms of how we're going to propose propose or approach customer and if we let's say Badou Kia cow key account management and key a combination a more detail you already learned in a key combination section but technically the key at high management is means we need to have like a key account manager who look after the key customer who potentially spent a lot of money you know you can the good things about group the customer into size like this and you can build a relationship you can be trust you also have a niche knowledge about what do they want what do they life interval promotion in their product specialization in term of you know their buying behavior pattern and that type of thing okay also if we are planning to pay all it serve the customer who spend a lot of money then we can just forget about small town but focus more on a key account or middle middle-sized account this way we can minimize the money ways that we're going to spend with the small science account so basically we can pick what group of customer we want to you know focus on as well having say that small I can also spend a lot of money as well so if you look in here an example that I post here is that when we talk about Kia cow those sales managers are going to work on a Kia cow that can spend a lot Biki a cup manager or relationship manager the the middle-sized account will use normal sale people to approach them like you know in a branch or like face-to-face branch or in a saw and a small competent spend little money we might use telemarketers or you know those people who bring up the customer to give them a call to persuade them to buy products or those those would be an example right and if you have the question please let me know and this is one of the section that you can always use in your major assignment as well thank you for the fans thank you for the videos as I was listening bye bye