Sales Force Structure Of Sales Essay

757 Words May 2nd, 2016 4 Pages
Sales force structures are critical for every company. Sales force structures allow companies to distribute their products to their customers effectively. How a company compensates its sales force is just as important as how the company structures the sales force. In order to meet the expanding role of sales in the cabinet hardware company, a territorial sales force structure and a salary plus bonus commission plan should be used.
A territorial sales force structure “assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line” (Armstrong and Kotler 407). A territorial sales force structure should be used for this company because the company sells one product line and has grown regionally. Since this company only sells cabinet hardware, a territorial sales force structure would most effectively meet the expanding role of sales in the company. The book states that territorial sales force structures work best if the company sells only one product line to an industry with customers in many locations (Armstrong and Kotler 407). Also, a territorial sales force structure would allow the company to effectively manage the regions it has grown to. Within a territorial sales structure, individual sales representatives are assigned to each region. A territorial sales structure would increase each sales rep’s desire to build local customer relationships, which increases selling effectiveness. Although product sales force…

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