Sales Organization Structure

Savya Jaiswal
MBT/11/119,3rd Semester Enrollment.no- A0500111016

Sales Organization
A structural body through which the functions of sales management are carried out.

Efforts is to increase sales, achieving the principle of profit maximization, for overall growth of enterprise. It defines duties, roles, rights, and

responsibilities of sales people engaged in selling activities meant for the effective execution of the sales function.

No two organizations have identical structure because of different needs.

Factors influencing structureProduct and service related factors Organization related factors Marketing mix related factors

External factors the speed of market change reduction in the number of vendors per buyer closer to customer relationships changes in regulations and international practices

Centralisation vs Dcentralisations
Centralization
the degree to which decision making is concentrated at a

single point in the organization top-level managers make decisions with little input from subordinates in a centralized organization

Decentralization
the degree to which decisions are made by lower level

employees distinct trend toward decentralized decision making

Span of Control vs. Management Levels

National Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

Types of Sales Organizational structure

Line sales organization Line and staff sales organization Functional sales organization Committee sales organization

Line sales organization

General Manager

Sales manager

Assistant Sales manager Division1

Assistant Sales manager Division2

Assistant Sales manager Division3

Assistant Sales manager Division4

Salespeople

Salespeople

Salespeople

Salespeople

Line and staff sales organization

President

Vice president in Charge of marketing

Advertising Manager

General Manager

Manager of Marketing Research Sales Promotion Manager

Director of dealer and Distributor relations

Director of Sales Training

Sales Personnel Director

Assistant General sales Man

Direct Sales manager

Branch Sales manager

Sales Personnel

Functional sales organization

National Sales Manager

Fields Sales manager

Regional Sales Manager (4) District Sales Manager (16) Salespeople (160)

Telemarketing Sales manager

District Sales Manager (2) Salespeople (40)

Committee sales organization

Line Sales Organization

Insructions are vertical Person of same level are independent of each other Each subordinate receives instructions from his immediate superior This structure specifies responsibility and authority for all the positions limiting the area of action by a particular position holder

Line and staff sales organization

Staff

specialists advise managers to perform their duties Staff positions are purely advisory in nature. The line executives are the DOERS or commanders, where as, the specialists are the THINKERS or advisors.

Functional structure is created by grouping the activities on the basis of functions required for the achievement of organizational objectives. Authority relationships in functional structure may be in the form of line, staff & functional

Functional sales organization

Customer and Product Determinants of Sales Force Specialization

Customer Needs Different

Market-Driven Specialization

Product/MarketDriven Specialization

Simple Product Offering

GeographyDriven Specialization Product-Driven Specialization

Complex Range of Products

Customer Needs Similar

Product Sales Organization

VP Marketing

Product Manager (A)

Product Manager (B)

Manager (Sales)

Manager (Promotio n)

Manager (Training)

Manager (Sales)

Manager (Promotio n)

Manager (Training)

Geographic Sales Organization

VP Marketing

National Sales Manager Divisional Manager (North) Regional Sales Manager District Sales Manager Sales Staff (City wise)

Divisional Manager (East)

Divisional Manager (West)

Regional Sales Manager

Regional Sales Manager District Sales Manager Sales Staff (City wise)

District Sales Manager Sales Staff (City wise)

Market Sales Organization

President, Marketing

Product Manager (A) Manager (Promotio n)

Product Manager (B) Manager (Promotio n)

Manager (Sales)

Manager (Training)

Manager (Sales)

Manager (Training)

Product Sales Organization

ADVANTAGES: Salespeople become experts in product attr. & applications Management control over selling effort DISADVANTAGES: High cost Geographic duplication Customer duplication

Geographic Sales Organization

ADVANTAGES: Low Cost No geographic duplication No customer duplication Fewer management levels DISADVANTAGES: Limited specialization Lack of management control over product or customer emphasis

Market Sales Organization

ADVANTAGES: Salespeople develop better understanding of unique customer needs Management control over selling allocated to different markets DISADVANTAGE S: High cost Geographic duplication

Hybrid Sales Organization Structure

National Sales Manager Commercial Accounts Sales Manager Major Accounts Sales Manager Field Sales Manager Western Sales Manager Eastern Sales Manager Regular Accounts Sales Manager

Government Accounts Sales Manager

Office Equipmen t Sales Manager Telemarke ting Sales Manager

Office Supplies Sales Manager

Hybrid Sales Organization Structure

Many large organizations

have divisional structures where each manager can select the best structure for that particular division. One division may use a functional structure, one geographic, and so on. This ability to break a large organization into many smaller ones makes it much easier to manage.

ADVANTAGES: Salespeople develop

better understanding of unique customer needs Management control over selling allocated to different markets
DISADVANTAGES: High cost Geographic duplication