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Company Sales Management Plan (Hart Hospital Equipment, Inc) - Term Paper Example

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The success of an organization typically depends on the performance of its sales force. Sales forces not only generate sales for a company, but also represent the products of a company towards the customers…
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Company Sales Management Plan (Hart Hospital Equipment, Inc)
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Download file to see previous pages An appropriate sales management plan helps to increase the productivity of sales force as well as raise the performance of an organization in the market. In this competitive market environment, organizations require to develop a strong sales force structure and appropriate strategies which can ensure success in the form of high revenue. The paper will analyze the sales force of Hart Hospital Equipment, Inc. which deals in selling several medical care equipments. On the basis of assessing the sales strategies of Hart Hospital Equipment, Inc by recognizing its territory alignment, customer segmentation, sales force and account strategy, this paper would recommend about the number of sales representatives and effective sales force structure which can be profitable for the company. Analysis of Hart’s “Go-to-Market” strategy Go-to-market strategy outlines the actions and the involvement which relate an organization to the customers and the market opportunities. The go-to-market activities of Hart can be divided into two parts which are: customer attraction activities and channel activities. The customer attraction activities are considered as responsibility of salespersons. However, the salespersons are not involved in the channel activities (Zoltners, Sinha & Zoltners, 2001). The sales strategy of any company can be of two kinds i.e. direct selling and indirect selling. The direct sales force includes those people who are employed by organization on a constant basis for selling products to customers directly. In indirect selling, organizations use salespersons from other companies such as merchants, distributors, agents or hired sales force. There are several substitutes for direct and indirect sales force which comprise of advertising and promotion, exhibitions, direct mail, telesales and e-sales. Hart Hospital Equipment Inc. (HHE) uses the direct sales force for trading their products. It mainly uses the magazine advertisements, direct mail and conventions to reach to the target customer segments. The following diagram will depict the go-to-market activities of HHE: The go-to-market strategy provides a methodology for determining the role of direct sales force for an organization’s business. In case of HHE, their sales force is the major medium for promoting products in the market. Through their sales force, HHE can effectively express the information about products to the customers. The sales force of HHE provides effective service to the customers in order to retain them. Analysis of Hart’s Overall Sales Force The sales force of a company can vary from country to country or industry to industry. The sales force of HHE is divided into three regional areas where it performs the business operations. The following image will describe the overall sales force of HHE: In HHE, there are almost 93 sales representatives and among them almost 87 representatives have geographically determined area which is further divided into three districts. The sales force of HHE serves the pre-hospital market locally. In the medical equipment industry, the sales force of HHE is quite active. Components of HHE’s Sales Force Every organization which deals in selling products can be observed in terms of three basic components which are sales force investment, sales force activity and company results. The sales force investment is regarded as the amount associated with employing salespersons such as expenses for employing, providing training assistance and arranging meeting among others. For HHE, the company spends almost 13% of their total sales revenue for the sales force which is 2% point less compared to industry average. The sales force activ ...Download file to see next pagesRead More
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