8/3/2019 Organizing the Sales Force

1/21

ORGANIZING THE SALES FORCE

By: Zohrab, Naveed, AhsanMBO-02

Subject: Sales Force Management

8/3/2019 Organizing the Sales Force

2/21

ORGANIZATION

An organization is simply an arrangement of activitiesinvolving a group of people.

STRUTURE:

Division of activities into tasks and the related coordination

Structure

SalesManagementRules

PerformaceEvaluation

Compensation

Recruiting/Selection

TrainingProgram

8/3/2019 Organizing the Sales Force

3/21

Tasks of Sales Organization

o Maintenance of order in achieving sales forcegoals and objectives.

o Assignment of specific tasks and

responsibilities.

o Integration and coordination with otherelements of the firm.

8/3/2019 Organizing the Sales Force

4/21

Market Oriented

Build around activities not around people

Right assignment of Jobs

Reasonable span of Control

Stable and flexible

Balanced and coordinated activities

Characteristics of Good OrganizationStructure

8/3/2019 Organizing the Sales Force

5/21

Developing a Sales Organization

Formal and Informal Organization

Horizontal and Vertical Organization

Centralized and Decentralized Organization

Line and Staff Marketing Organization

Functional Organizations

8/3/2019 Organizing the Sales Force

6/21

Formal Organizations Management created relationships

between departments and betweenindividuals.

Informal Organizations

Communication patterns formed from the

social relationships existing with theformal organization.

8/3/2019 Organizing the Sales Force

7/21

Centralized sales Organizations

Organization in which responsibility andauthority are concentrated at higher levelof management

Decentralized sales Organizations

Organizations in which responsibility andauthority are delegated to lower level of

management.

8/3/2019 Organizing the Sales Force

8/21

Vertical Organization

Organization in which the number of

management levels is small and the numberof managers at any particular level is large

Horizontal Organization

Communication patterns formed from thesocial relationships existing within theformal organization

8/3/2019 Organizing the Sales Force

9/21

Vertical Organization

Chief sales executive

Regional of zonal sales manager

District sales manager

Sales supervisor

Sales person

8/3/2019 Organizing the Sales Force

10/21

Chief sales executive

Horizontal Organization

District A salesManager

District B salesmanager

District C salesmanager

Internationalsales

manager

8/3/2019 Organizing the Sales Force

11/21

Assistant

Line & Staff Organization

Marketing Research Advertising

Vice PresidentMarketing

GENERAL SALESMANAGER

Distributorrelations

Sales Planning Sales analysis

Regional salesManager A

Regional salesManager B

Regional salesManager C

Sales Training

8/3/2019 Organizing the Sales Force

12/21

President

Functional Organizations

Finance &Accounting

Production Personnel Sales &Marketing

8/3/2019 Organizing the Sales Force

13/21

Types of Sales Organizations

Organization in which selling personnel are given the responsibility for direct sellingactivities in a given geographical.

General sales manager

Regional salesmanager

Regional salesmanager

Regional salesmanager

Regional salesmanager

Regional salesmanager

Regional salesmanager

Regional salesmanager

Regional salesmanager

Regional salesmanager Regional salesmanager Regional salesmanager Regional salesmanager

Geographic specialization

8/3/2019 Organizing the Sales Force

14/21

Sales organizations in which sellingpersonnel are organized by particularcustomers or industries

Customer specialization

8/3/2019 Organizing the Sales Force

15/21

BY DISTRIBUTIONAL CHANNEL

By distributionalChannel

Domestic SalesManager Export salesManager

8/3/2019 Organizing the Sales Force

16/21

General Sales Manager

Sales ManagerIndustry C

Sales ManagerIndustry B

Sales ManagerIndustry A

By Type of Industry

8/3/2019 Organizing the Sales Force

17/21

General Sales Manager

Sales ManagerInstitutional

market

Sales Managersmall Business

Sales ManagerMajor Account

By General type of Customers

8/3/2019 Organizing the Sales Force

18/21

Sales organizations in which selling personnelconcentrate their efforts on particular product lines,brands, or individual items.

Product Specialization

General Sales

Manager

Sales ManagerProduct A

SalesManagerProduct D

Sales ManagerProduct B

SalesManagerProduct C

8/3/2019 Organizing the Sales Force

19/21

The Combination Organizations can becharacterized by the following traits.

Market, Product and function

Decentralized staff and line personnel

Complex staff-line relationships

Overlaid organizational mechanisms

Functional Organizations

8/3/2019 Organizing the Sales Force

20/21

Major trends in Sales Organizations

Telemarketing:Use of telecommunications technology in personal selling.

Direct Marketing: Marketing approach that bypass intermediaries to deliver

goods and services directly from seller to buyer.

Inbound Marketing: Telemarketing efforts in which potential customers contact

the selling company.

Outbound telemarketing: Telemarketing efforts in which selling company contact

prospects and customers.

8/3/2019 Organizing the Sales Force

21/21

Thats all Thanks for Your

Concentration