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Sales Organization
Girish Mude
MIT School of Management, Pune
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Sales Organization
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Meaning of Sales Management
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.
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Purpose
To permit the development of specialist
To ensure all activities are performed
To achieve coordination or balance To define authority
To economize on executive time
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Roles of a sales organization
Achieve company objectives
Streamline reporting relationships
Facilitate effective coordination and control Develop an efficient sales force structure to
ensure effective selling strategy.
Designing the sales organization plays a crucialrole in a company's overall success.
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Needs for Organization
Developing customer-centric organizations,
Building strong relationships within and
outside the organization, Modifying the traditional top-down
hierarchical structure and
Introducing cross-functional teams are somesteps companies are taking to improve their
efficiency and profitability.
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Influence of external and internal
factors External factors include
± Markets targeted
± Technology prevailing in the target market
Internal factors
± Company objectives,
± Size of the sales force,
± Core competence of the company,
± Compensation system,
± Reporting relationships, etc.
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Functions of Sales Manager
Planner
Recruiter
Leader Controller
Market analyst
Sales forecaster
Budget manager
Communicator
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Responsibilities of Sales Manager
Responsibility of hiring
Training and coaching
Motivating
Setting targets for sales people
Tracking the results
Providing leads and sales support
Organizing the sales effort
Conducting sales meetings
Recognizing and Rewarding Performance
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Sales Organization Concepts
SpecializationThe degree to which individuals perform some of the required
tasks to the exclusion of others. Individuals can become
experts on certain tasks, leading to better performance for the
entire organization.
Centralization
The degree two which important decisions and tasks performed
at higher levels in the management hierarchy. Centralized
structures place authority and responsibility at higher
management levels.
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Sales Force Specialization Continuum
Some specialization
of selling activities,
products, and/or
customers
All selling activities
and all products to
all customers
GeneralistsGeneralistsCertain selling
activities for certain
products for certaincustomers
SpecialistsSpecialists
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Functional organisation
Figure 21.6(a)Girish Mude MITSOM, Pune
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Product organisation
Figure 21.6(b)Girish Mude MITSOM, Pune
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Regional organisation
Figure 21.6(c)Girish Mude MITSOM, Pune
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Matrix organisation
Figure 21.6(d)Girish Mude MITSOM, Pune
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Geographic Sales Organization
National Sales Manager
Zone Sales Managers (4) Zone Sales Managers (4)
District Sales Managers (20)
Salespeople (100) Salespeople (100)
District Sales Managers (20)
Eastern Region Sales Manager Western Region Sales Manager
Sales Training Manager
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Product Sales Organization
National Sales Manager
Office Equipment Sales Manager Office Supplies Sales Manager
District Sales Managers (10)
Salespeople (100) Salespeople (100)
District Sales Managers (10)
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Market Sales Organization
National Sales Manager
Zone Sales Managers (4)
District Sales Managers (25)
Salespeople (150)
District Sales Managers (5)
Commercial Accounts
Sales Manager
Government Accounts
Sales Manager
Sales Training
Manager
Salespeople (50)
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Functional Sales Organization
National Sales Manager
Field Sales Manager Telemarketing Sales Manager
Regional Sales Managers (4)
Salespeople (160)
Salespeople (40)
District Sales Managers (2)
District Sales Managers (16)
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Comparison of Sales Organization Structures
Comparison of Sales Organization Structures
Organizational
Structure Advantages Disadvantages
Geographic
Low Cost
No geographic duplication No customer duplication
Fewer management levels
Limited specialization
Lack of management
control over product or
customer emphasis
Product Salespeople become expertsin product attr. & applications
Management control over
selling effort
High cost Geographic duplication
Customer duplication
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Comparison of Sales Organization Structures
Comparison of Sales Organization Structures
Organizational
Structure Advantages Disadvantages
Market
Salespeople develop
better understanding of
unique customer needs
Management control over
selling allocated to different
markets
High cost
Geographic duplication
Functional Efficiency in performing
selling activities
Geographic duplication Customer duplication
Need for coordination
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Hybrid Sales Organization Structure
National Sales Manager
Major Accounts
Sales Manager
Regular Accounts
Sales Manager
Office Equipment
Sales Manager
Office Supplies
Sales Manager
Field Sales
Manager
Telemarketing
Sales Manager
Commercial Accounts
Sales Manager
Government Accounts
Sales Manager
Western
Sales Manager
Eastern
Sales Manager
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Any Questions ???
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Thank You !!
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