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Sales Organization: Module - II

The document discusses various sales organization structures and design considerations including factors that influence structure like products, services, marketing mix, and external environment. It provides examples of common sales organization designs like line organization, design by territory, and design by customer. The key aspects of an effective sales organization discussed are span of control, unity of command, coordination, and establishing roles and responsibilities.

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Kumar Saurav
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41 views14 pages

Sales Organization: Module - II

The document discusses various sales organization structures and design considerations including factors that influence structure like products, services, marketing mix, and external environment. It provides examples of common sales organization designs like line organization, design by territory, and design by customer. The key aspects of an effective sales organization discussed are span of control, unity of command, coordination, and establishing roles and responsibilities.

Uploaded by

Kumar Saurav
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Module - II

Sales Organization

Sales organization
an organization of individuals either working together for the marketing of products and services manufactured by an enterprise or for products that are procured by the firm for the purpose of reselling a sales organization defines duties, roles, rights, and responsibilities of sales people engaged in selling activities meant for the effective execution of the sales function

Sales organization
contd.

a structural body through which the functions of sales management are carried out sales organization always makes efforts to increase sales, thereby achieving the principle of profit maximization, which contributes to the overall growth of enterprise

Factors influencing structure


product 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
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Organizational principles
span of control unity of command hierarchy of authority

stability and continuity


coordination and integration homogeneity objectivity specialization
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Organizational design
- formal and coordinated task - assigning territories - establishing flows of communication and responsibilities of sales groups and individuals to customers effectively

Line organization

Mr. Ratnakar Shetty President / Owner Mr. Chandrakant VP (Sales)

Five sales people

Typical structure of a line organization


Consumer market National Distributors Institutional market Corporate market

Direct to Home

Direct marketing

Distributors

Bundling

Gifting

Regional Distributors

Consumer

Retailers

Consumers
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Design by territory
VP Marketing National Sales Manager

Divisional Manager (East) Regional Sales Manager

Divisional Manager (North) Regional Sales Manager

Divisional Manager (West) Regional Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

Sales Staff (City wise)

Sales Staff (City wise)

Sales Staff (City wise)


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Design by management function


Mr. Dara singh, VP (Marketing)

Staff Function

Line Function

Mrs. Chitra Mohanty (Advt / Sales Promotion Mgr)

Mr. Dibya Behera (Sales Manager)

Mr. Chandra De Manager (MR)

20 Sales People

Design by product
President, Marketing

Product Manager (A)

Manager (Sales) Product Manager (B)

Manager (Training)

Manager (Promotion)

Manager (Sales)

Manager (Training)

Manager (Promotion)
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Design by customer
President (Marketing) Vice President (Marketing)

Sales Manager Industrial Relations

Sales Manager Wholesalers

Sales Manager Retail Sales

Sales People

Sales People

Sales People

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President

Functional

Vice President (Production)

Vice President (Marketing)

Vice President (HRD)

Geographic Marketing Manager


India G.M Consumer care

Marketing Manager Combined International Sales Org. Design G.M International Sales Divisional Manager Food

Customer

G.M International Sales Divisional Manager Paper

Divisional Manager Soaps

Product

Eastern Sales Division

Western Sales Division

Northern Sales Division

Europe Division

America Division

Gulf Division
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Sales Organization
Key account sales
- focus on CRM - customer profitability and value analysis - the few accounts give incremental returns - national accounts

Sales process automation


- EDI Electronic Data Exchange

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Emerging organizational design


agency and distribution selling shared sales force telemarketing TQM and team-based selling
Customer

Sales

Marketing

Technical Support

Manufacturing

Supplier selling team


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