1.1 Regional Sales Organisational Chart For Shiderlots Inc. Reporting To Columbus Ohio

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1.1 Regional sales organisational chart for Shiderlots Inc.

reporting to
Columbus Ohio.

Regional Sales Manager


Columbus,Ohio

Account Account Account Account


Account Account Account
Manager manager Mananger Manager
manager 1 manager 4 Manager 7
2 3 5 6

1.2

a)Key account managers

b) company headquarters in New York City.

c) major construction companies

d) new escalators and elevators


Question Two

2.1

a) How do they spend their time (time allocation)?

The seven account managers spend most of their time on followups on existing
customers and gaining new accounts

b) What is their time spent on (what they are selling, or what they are
specialising in selling)?

The seven account managers are specialising in selling the following

 Maintanance service contracts


 Upgrades of elevators

c) Describe what the outcomes are due to the fact that the seven territories
have been carefully designed – and are continually being revised.

This will enable Shiderlots to achiev its companies sales objectives of increasing
revenue from 10 billions onwards .It will enable Shederlots to reduce its selling
costs since each account manager will focus on his or her sales
territory.Perfemance evaluation will be easy amongst the seven account manager
,Dark will be able to identify who has performed and who has not performanced
through each sales territory sales gained.The continual revision of sales
territories by Dark will ensure wide and effective market coverage of Columbus,
Ohio.

2.2 Discuss the advantages and disadvantages, to Shiderlots, as a result of being


organised geographically and selling by product operation specialisation.

Being organised geographically ensures Shiderlots has a better market coverage in


the markets in which its sells .It also ensure Shirderlots to localise its marketing and
sales campaings according to the culture or language in the specific geography like
Columbus.With geography specialisation there is duplication of activities like when
advertising elevators in Columbus ,Ohio market ,Dark will do his own adverts and
other Regional sales managers will be doing their own thereby duplication of
activities and its costly to manager due to the need of having many regional
managers.Product operating specialisation has enabled Dark seven Account
Managers to give specialised service to building managers of
structures that are already equipped with elevators and/or escalators.The
disadvantage with this type of specialisation is that Building manager will have to
with two separate Sales teams which can be boring and frastruting to some
extent.

2.3 a) Briefly describe how product staff specialisation and market specialisation
would be designed at Shiderlots, specifically considering how the account
managers and the KAM would work together in this type of specialisation.

Product staff specialisation by having this structure Shiderlots will establishing


brands manager to the different types of products it sells .Shederlots will have
new product installations brands Manager and selling the maintenance contracts
brand Managers.The Sales force(account manager and key account managers)
will sell all these products of both brand managers thereby reducing duplication of
activities .The sales force will report to a single regional sales manager.By
combining Product staff specialisation with market specialisation sales teams(key
account managers and accounts) will be arranged according to the type of
industry they will be dealing with for example Business to business or Business to
consumer markets enabling the sales team to become experts.
Question Three

3.1 Using the information provided by the Shiderlots case study, discuss the
four (4) elements of the remuneration package of the account managers in detail.

Fixed element
Each Account manager at Shiderlots receives a fixed salary of $50000 every
month ,this fixed element it provides the Account Managers with stability and
security

Variable element – This element changes and is linked to the effectiveness of the
account managers, Each Account manager receives a commission of 3
percent on all sales in his or her territory and end of year bonuses . This means the
performance levels of the account Managers impact directly on income .It is used to
motivate Account Managers by Shiderlots
.
Fridge benefits salaries or commission, for example a company car, retirement
benefits, medical aid, additional leave, laptops, cell phones.

Reimbursement of selling expenses – Shiderlots also paid all r travel and


entertainment expenses that were incurred by the account managers when trying to
make a sales

3.2 a)
In order to account managers not to leave Shiderlots I suggest the use of combined
plans,which will be tailer made to meet the need of account managers
Salary plus commission and bonus - I will suggest an up ward review of their salary
and a 5% commission on every elevator solds and on every 100 units of evalators
sold they must receive a bonus.I also just the regional sales manager to do sales
contests and awarding high performers .Each account manager must be given a
motor vehicle plus fuel .
3.2b) Non financial rewards could lower labour turnover at Shiderlots and attract
other competent employees .Motivate Account manager the more,so some people
money is not the only motivator.Account manager will go an extra mile in making the
Shiderlots achieves its set objects
3.2c
Provide him with examples of four (4) types of non-financial reward offering
plans for his account managers and explain to him the reasons why you are
suggesting each of these plans.

Work–life balance reward


The account Managers must be given freedom to schedule and plan for their own
sales activities .The Regional Manager must give must freedom to so.This will lead
to loyalty from Account Managers .For example a female Account manager must be
allowed to start work at 10am in order for her to his house chores and children
school .It must, however, be noted that salespeople must still be informed that they
must achieve their sales objectives.

Job security
Regional sales manager must account manager with job security,account manager
know they will be able to provide for their families .The Regional sales manager must
keep them informed about the financial wellbeing of shiderlots that is it had $10
billion of revenue ,it will bring confidence and a sense of job security.

Promotion
Account manager value promotion for example account manager must be promoted
to become key account manager or becoming regional manager as this will motivate
and stimulate performance of the account managers once they reliase that they can
be promoted if they work extra hard .

Sense of accomplishment
A key determinant giving account managers a sense of accomplishment is
informing
them that they are performing well in their work for eg if account manager have
struck a deal with a major customer. Regional sales managers must compliment
account managers on their efforts on a regular basis.
QUESTION 4

Consultative leadership
Mr Dark must seek input from Johnson before making decisions on him as this will
empower and motivate him .Mr Dark must value the input and opinions from Johson
but at the end Mr dark must make the finalise decision since Johson is not that
experienced to make decisions .

4.2
a) Assess Phil Johnson’s sales training needs.
Johnson will require training in the following areas
 Product knowledge about new escalators and elevators
 The Ten step selling process
 Shiderlots sales objectives
 Routing and time management
 Type of customers of Shiderlots whether B2B or B2C
 Tele marketing
In order to assess the training needs Mr dark must ask Key account managers and
account managers to identify training needs for Johnson and going to the field with
Johnson to identify which areas he require training .

 Mr Dark must analyse the strategic programmes of the Shiderlots to establish


changes in elevators sold
 Mr Dark must analyse shiderlots customers called on that is those who
require mainatance and those who but new elevators
 Observing sales force by being with them in the field
 M r Dark must ask account managers for information since they have
experience dealing with Shiderlots customers
 Send questionnaires to building manager asking them what they expect from
the account managers and what the account managers does that disappoints
them
 Interview key account managers to identify training needs
b) Determine his specific training objectives.
 To spend 60 % of the time on 20% of the customers who are responsible to
the 80% sales of the organisation by year end
 Improved routing and territory efficiency
 To increase the overall sales efficiency by 10 %
 Increased productivity –sales training will equip Johnson with the necessary
skill and thus improving his performance on handling larger accounts

 Lower turnover of salespeople –when johson has acquired the necessary
skills they will be zero likely of him leaving the job and going to competitor
companies
 Improve customer relationship –Johnson will improve in the way he will be
dealing with those larger accounts
 Improve morale-training will motivate and stimulate the morale of Johnson
 Improve time and territory efficiency –Most account manager wasted their
time on unprofitable accounts ,with enough sales training it will enable
Johnson to proper plan his time and put the 80/20 principle in practice
c) Briefly design a training topic plan for Phil Johnson.

1 Shiderlots and its proceedures


Johnson must be trained about shiderlots mission,visions and objectives .This
knowledge include everything about Shiderlots Elevators as one of the world’s
largest manufacturers of vertical transportation systems, which primarily consist of
elevators and escalators.He must know about Policies about returns etc.

2. Product and services knowledge


Johson training must include product knowledge about escalators and elevators and
ability to communicate effectively with customers that is building managers .

Selling Skills knowledge


He must be taught the 10 selling skills from Prospecting to followup and the ability to
deal with objections .
Technology
His trainining topics must include to train him how to use Customer relationship
management software and other routing software .

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