SALES STRUCTURE

Assignment Sales Force Management

Prepared by:
M.Tanzeel-e-Rahman Khan
Submitted to:
Mr. Husnain Naqvi

SEPTEMBER 9, 2015
SUPERIOR UNIVERSITY
Lahore, Pakistan

Topic: Analysis and comparison of sales force structure of foreign and local
banks.

1 BANKING IN PAKISTAN
Banking in Pakistan first formally started in Pakistan during the
period of British colonialism in the South Asia. After independence
from British Raj in 1947, and the emergence of Pakistan as a country
in the globe, the scope of banking in Pakistan has been increasing and
expanding continuously. Pakistan's oldest bank is the State Bank of
Pakistan, which is also the central bank of the nation. Before independence on August 14, 1947,
the Reserve Bank of India was the central bank of what is now Pakistan. After independence,
Muhammad Ali Jinnah took actions to establish a central bank in Pakistan which resulted in the
new founding of the State bank of Pakistan, with its headquarters to be based in Karachi. Only 7%
of the population uses the banks, has tremendous potential, but this needs to be pushed a little
further.

2 LIST OF BANKS IN PAKISTAN

2.1 GOVERNMENT-OWNED SCHEDULED BANKS

National Bank of Pakistan

Bank of Khyber
Bank of Punjab
First Women Bank
Sindh Bank

2.2 SPECIALIZED BANKS

Industrial Development Bank

Zarai Taraqiati Bank Limited

2.3 COMMERCIAL BANKS

Allied Bank Limited

Bank AL Habib
Bank Alfalah
Askari Bank
Faysal Bank
HBL
Habib Metropolitan Bank
JS Bank
KASB Bank
MCB Bank Limited
NIB Bank
Samba Bank Limited
Soneri Bank
Summit Bank
United Bank Limited

2.4 DEVELOPMENT FINANCE INSTITUTIONS

Asian Housing Finance Limited

2.5 FOREIGN BANKS

Deutsche Bank AG
Industrial and Commercial Bank of China Limited
Citi Bank
Standard Chartered Pakistan

2.6 ISLAMIC BANKS

Meezan Bank Limited

Al Baraka Bank
Bank Islami Pakistan Limited
Burj Bank
Dubai Islamic Bank

2.7 MICROFINANCE BANKS

Khushhali Bank Limited

NRSP Microfinance Bank
Tameer Microfinance Bank Limited
Waseela Microfinance Bank Limited

Banking Industry is one of the most important service industries which touches the lives of in
millions of people. Its service is unique both in social and economic points of view of a nation.
Earlier the attitude of banking service was that it was not professional to sell one's services and
was unnecessary in the sense that traditional relationships and quality of products were sufficient
to carry forward the tasks. Before the mid 1950's the banks had no understanding or regard for
marketing. The bank building was created in the image of a Greek Temple to impress the public
about the importance of a bank. The interior was austere and the teller rarely smiled. Bankers
maintained austere dignity and they hardly maintained friendliness.

3 COMMON SALES HIERARCHY OF BANKS IN PAKISTAN

Managing Director
(Karachi)
National Sales Head/
Director
(KHI)
Director Sales Force
manager
(KHI)

Regional Head
(North)

Regional Head (South)

Zonal Head
(Provincial and
other Zones)

Zonal Head
(Provincial and
other Zones)

City Sales Manager

City Sales Manager

Area Sales
Manager

Sales Manager

Sales Executive

Area Sales
Manager

Sales Manager

Sales Executive

4 OPERATING STRATEGY OF LOCAL AND INTERNATIONAL

BANKS COMPARISON
The national sales and business is usually located in banks head
offices and they operate and regulate the nationwide sales of the
banks and they keep monitoring on all the nationwide strategies
of sales force in all cities. They are the ultimate strategists for
banking sales in Pakistan. Both the international and local banks
have almost the similar sales hierarchy and distribution of
authority. They have complete communication with all the
personals and offices through emails, letters, and conferences on
weekly, monthly, quarterly and annual bases.
After them they main executioner of sale strategies are zonal heads. They are responsible for all
daily execution and direction of plans for the achievement of organizational objectives. They are
responsible for all the reporting to the head office (KHI). It is there responsibility to monitor all
the decorums and appraisals. They create daily, weekly, monthly and yearly targets for the sales
team and they are the main guiding authority for the sales force team. It is quiet similar structure
in both international and local banks.
In local banks the sales executives do not operate in strictly formal team they often work
individually for their daily sales activities while on other hand international banks follow more
professional strategic team format, which involves sales executives working in teams. In local
banks the sales executives do not enjoy office setup facilities, they often do not have their own
offices. But they are more active in their own favorite areas which are mostly those area to which
they belong themselves. The sales executives in local banks have more vigilance levels then the
international banks. In international formats the sales teams are bound to different be
Sales executives in local banks work on leads and references to approach customers. While on
other hand the sales executives in international banks operate on tagged profiles of customers as
sales targets. For example they are given with a directory of tagged profiles, lets say profiles of
100 targeted profiles and they are responsible to work on these 100 customers and sell them
services. The approach strategies differ from international banks to local banks. International
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banks have more formal structure for approaching customers but local sales executives try their
best to make the sale happen even if he has approach in more informal manner on basis of
references and other positive leads. For high profile customer local banks sales department can
also form teams to approach the customers accompanying the area manager, branch manager and
even the directors as well to convince the customers. These sales executives are often called as
business development officers and managers.

5 ROLES AND DUTIES OF SALES EXECUTIVES OF LOCAL AND

INTL. BANKS
The banks create teams of young and talented marketing individuals
who have flair for sales and marketing, they are entrenched in local
communities and they enjoy interacting with people. They are
permanently appointed on these positions and as regular work
employees of the bank.
Their main Responsibilities are:

Represent the bank in the market in professional manner.

Achieve new account opening targets.

Achieve deposit mobilization targets.

Attrition management for accounts and deposits.

Looking over the liabilities

Managing assets for clients

Loans & financing.

Other team targets

They are operate in areas and are not necessarily attached to single branch. They have universal
IDs so that they can access their professional accounts from any branch in a single area. The
sales personals also given with extraneous tasks like cross selling, and special deposits. Upon
which they receive their appraisals and promotions. The differences in local banks and
international banks is that the sales personals do not enjoy any authorities for their daily tasks
they cannot offer any thing extra. Sometimes the area mangers can allow them some flexibility
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on his own behalf but to only senior and more experienced sales executives. While
international banks sales executives enjoy certain level of flexibility to close the deals with
more customized offerings for the customers.

6 STRENGTHS & WEAKNESSES IN SALES OPERATIONS OF

BOTH LOCAL AND INTERNATIONAL BANKS
Using a panel data of over 1,600 banks in 100 emerging economies, we identify the
strengths and weaknesses of the dominant organizational designs in emerging markets. Private
domestic banks have an advantage in lending to soft information rms which allows them to
lend more, and at higher rates without substantially higher default rates. On the other hand, foreign
banks have the advantage of access to external liquidity from their parent banks which lowers
their deposit cost. The external support however comes at the cost of foreign banks being limited
(presumably by the parent banks) to only lend to hard information rms. Whereas foreign and
private domestic banks have their own comparative advantages and disadvantages, we nd that
government banks perform uniformly poorly, and only survive due to strong government support.
The trainings and career development policies are up to the mark in both local and
international banks and none of these fall short in this sections. They are provided with adequate
trainings and career development opportunities. They are regularly updated about all the changes
and system updates and are trained accordingly. They also have timely meetings with the area
manager about the next developments and strategies.

7 OTHER DIFFERENCES IN THE SALES STRUCTURES OF LOCAL

AND INTERNATIONAL BANKS.
There are many significant contrast factors like the local banks have nice appraisal and incentives
but due to large nature of international operations in Intl. Banks they tend to offer better incentives
for the performance of the employees. Their organizational structure in international perspective
is quiet different, they have more complex hierarchical structure, because they are connected with
management which can be located in other countries and they have their main head quarter in other
countries and all the reports are also being monitored by these head offices. The main long term
strategies are directed by these international offices. On other hand the local banks are older and
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they already have a reputation in their countries and they have more established customer base
then the international banks. The local banks due the nature of their operations and networks of
contacts in the local market they enjoy more ability to easily lend loans and do more business in
the market while on other hand the international banks can not follow these aggressive strategies.
But international banks have advantage over the local banks when it comes to credit ratings due to
support from the vast business they own worldwide, similarly they have more negotiation power
due to their vast influence. In case of local banks they have limited resources to back their
established credit rating.