What Is Sales Network? Definition of Sales Network, Sales Network Meaning and Concept

A sales network is made up of a group of people who work for or support a company to carry out all tasks related to the sale and marketing of its products.

Undoubtedly, it is vital for any company to have an adequate organization of its sales network , since this helps it to position both its products and its brands within the market . When structuring a sales network, it does not matter if it is large or small, the important thing is that it reaches the sales objectives set by the company.

In addition, the structure of the sales network does not have to be the same for all companies, it will depend on the type of company and the products it sells.

Teams that make up the sales network

The main teams that make up a company's sales network are:

1. Internal team

Precisely, the internal sales team of a company is made up of all the people who carry out their sales work within the company. Any worker who works in the area of ​​sales administration is also considered part of the internal team.

So, the internal sales team performs tasks such as database administration, sending emails to specific clients , following up with clients with phone calls, and monitoring the results of the previous tasks.

Among the people who make up this team we can mention the following:

  • Counter vendors.
  • Store clerks.
  • Telemarketing sellers.
  • Internet sellers.
  • Mail order sellers.
  • Personnel in charge of carrying out the administrative work of sales.

2. External team

For its part, the external team includes all the personnel who carry out the sales process outside the physical installation of the company. Although you can perform administrative sales tasks within the company.

Likewise, the people who work on the external team promote and market the goods and services that a company sells to an external customer.

Among the people who perform sales tasks outside the company we have:

  • Sales promoters.
  • Sales supervisors.
  • Visitors.
  • Street sellers.

Teams that make up the sales network

Sales network goals

In fact, the main objectives that a company hopes to achieve when structuring its sales network are the following:

  • Increase market share.
  • Expand the number of effective customers for the company.
  • Increase the consumption of existing customers.
  • Obtain information on the behavior of the competition.

Policies that a company can apply in its sales networks

The main policies that a company can use when organizing its sales network are:

1. Freedom of territories

Companies that offer mass consumption products to the market usually use a policy of freedom of territories. Since its goal is to achieve intensive distribution, any seller who wants to sell the product is allowed to do so.

In this case, the company works paying only sales commissions. This form of sale generates a lot of competition among sellers, which allows the sales volume to increase.

Consequently, this system has the advantage that it does not represent large costs for the company, since it only pays sellers who achieve a sales quota. However, the main disadvantage is that it is difficult to maintain control over the market it serves, due to the large number of sellers involved.

2. Exclusive territories

Whereas, exclusive territories work when the company grants the right to a single element of the sales force that can market its products. It maintains tight control over that territory and allows for sales rep stability.

Above all, the risk that can be found in this policy is that the territory will not be fully exploited, since the exclusive representative will not be able to make the necessary effort to achieve it. This policy is generally used when companies sell high-priced products that have a good position in the market.

3. Shared territories

Finally, the shared territory allows two or more, but few sellers to have the possibility of selling a product within the same territory. In this assignment, the company faces the same risks and obtains the same advantages of the free and exclusive territories.

Sales network

To conclude, we can say that the sales network of a company is structured according to the needs of each one. For this reason, when organizing its structure, the company must consider aspects such as the size of the market it serves, the number of customers it serves, the actions of the competition and the volume of sales required.