Question

An organization has considered its sales channels, its customer service requirements, and its operating model. Also it has analyzed both its value system and the value systems of key supply chain partners. What else does it need to look at to determine its fitness for a given strategy, according to Michael Porter?

Answer 1

According to Michael Porter :

• A sales channel is a strategy employed by a producer to market goods or services to final consumers. Depending on how things are delivered to customers, sales channels can be direct or indirect. With the aim of closing the sale, these channels can be platforms (online or offline), people, or partners.
• A further perspective is that a sales channel is a source of income for a manufacturer that facilitates the sale of goods or services.
• A business can sell its goods and services through direct channels like these.
• Kiosks: These are self-service points where customers may make purchases and payments. Display rooms.
• Sales staff, which the business employs to sell its goods to clients and customers.

What are the principles of a sales organization?

A sales organization is built on a few key organizational tenets that are closely related to the tenets of the entire business. These principles act like software, directing and regulating the organization's efficient operation. Principles assist the organization in pursuing its objectives and investigating market prospects.

What standards should a successful sales organization meet?

The management should be aware of the requirements for creating a successful sales organization before one is created. These are listed below:

1. The functions of the sales department should be clearly defined by the sales organization, and the activities of the salespeople and their superiors should be planned and coordinated in a logical manner.

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