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Sales-Oriented Company: Definition & Examples

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  • 0:01 Sales-Oriented…
  • 1:29 Examples
  • 3:49 Lesson Summary
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Lesson Transcript
Instructor: Aaron Hill

Aaron has worked in the financial industry for 14 years and has Accounting & Economics degree and masters in Business Administration. He is an accredited wealth manager.

Find out what a sales-oriented company is and some of the unique characteristics that define these businesses. Learn about the important roles that sales forces play and see some examples of sales-oriented companies.

Sales-Oriented Companies Defined

Have you ever had someone come to your door and try to sell you a product or service? Or maybe you've walked by a kiosk in a mall and been hailed by a salesperson offering you a 'demonstration' of a product? Chances are that your house is littered with items that are a result of sales-oriented companies convincing you that you 'needed' a particular product. Whether these goods were acquired as a result of a phone call you received, a knock on the door, or a person with a table set up at the local Wal-Mart or grocery store, the fact remains that good sales tactics and methods work.

Sales-oriented companies are businesses that focus most of their efforts on developing a sales force to promote and sell their products or services. These approaches usually are done through door-to-door sales, phone calls, and other face-to-face interactions with potential clients or prospects. The sales force is usually the most important asset of the company and is the main driver of its success and profitability.

A large expense of sales-oriented companies is the salary, commission, and bonuses they pay their sales force. The commission and bonuses are usually the largest part of compensation and are primarily structured to motivate employees to reach certain sales targets. Some of the most common targets are often:

  • to increase in new clients compared to previous years
  • to increase in total revenue
  • some measurement tied to selling activities such as phone calls, door-to-door sales, or other activities that are seen as important to the company

Examples

Let's look at some examples of sales-oriented companies.

Auto Dealers

Toyota, GM, Nissan, Honda, Ford, and every other auto dealer relies heavily on sales-oriented approaches to sell vehicles. Dealers count on their sales force to help customers feel comfortable and excited in purchasing a vehicle. Their pay is heavily commission-based with additional incentive bonuses based on number of vehicles that are sold. When the sales team isn't on the lot talking with customers, they are making phone calls and sending out mailers to prospects. Dealers also use sales tactics such as rebates, deep discounts, and great financing to help draw in the customers.

Financial Services

Financial advisors, insurance agents, banking services, and credit card companies all focus heavily on a sales-oriented approach to achieve growth. Ask a financial adviser or insurance agent how they grow their business and they will immediately tell you it involves a lot of personal contact with prospects through phone calling, mailers, events, and referrals. The pay for most salespeople in these industries is almost 100% commission. Although compensation can be low in the beginning, these fields produce some of the best paid professionals in corporate America.

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