give reasons why need for sales organization is felt
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Answer:
Every sales organization can be classified based upon whether it is in a “Build,” “Compete,” “Maintain,” “Extend,” or “Cull” stage.
The Build stage is when the sales organization is first establishing itself. If successful, it will proceed to a high-growth Compete stage and then to Maintain stage that is contingent upon stable, predictable success. As the sales organization ages, it will either Extend its prior success and enjoy longevity, or it will suffer decline and be forced into the Cull stage where it must reduce its size.
Obviously, the top sales challenge always is exceeding the monthly, quarterly, or yearly revenue target. However, the sales challenges that inhibit a company from achieving revenue growth vary based on the sales organization stage. This is due to the “push” versus “pull’ market characteristics of each stage. For example, in the Build stage a small group of salespeople must push themselves into new accounts and introduce their solution and its benefits. Conversely, a well-known company in the Maintain stage is pulled into new sales opportunities because of its market position. The different sales organization challenges in the Build, Compete, Maintain, Extend and Cull stages are reviewed below.
The Challenges of the Build Stage
The top sales challenge in the Build stage is creating sufficient sales coverage to push the product into the market. It takes time to hire, train, and build a critical mass of capable salespeople who can penetrate new accounts. It is during this stage that the sales model is first established, whether the sales organization will sell directly via outside field salespeople, over the phone with inside salespeople, or through channel partners.
“We are continually learning from every sales cycle and adapting our message to be more effective when we are in front of customers. We are trying to create a repeatable sales process but our product focus is changing as much as our sales model.” Vice President of Sales, Build Stage Company
The Challenges of the Compete Stage
The Compete stage challenge revolves around quickly scaling the sales organization so that it can compete effectively against more established competitors in existing markets or grab as much market share as possible in new greenfield markets. In this stage the sales organization begins to develop its collective intuition of where it can win new business and where it is likely to lose. If these attributes are not instilled into the new salespeople, “organization-thrashing” occurs. The newer salespeople will chase business they cannot win and precious pre-sales resources will be wasted. They won’t make quota and are likely to either be let go or leave on their own merit because they lack a sufficient pipeline of business to make commission. In this situation, there is organization-thrashing because of the continual replenishment of new and under-performing salespeople.
Answer:
ʏᴏᴜʀ ᴀɴsᴡᴇʀ✔️
Sales organisation is a foundation for effective sales planning and sales policies. Systematic execution of plans and policies and programmes of a sales organisation control all the sales activities. As such it ensures maximum efficiency and profitability without losing consumer service and satisfaction.