SALES ORGANIZATIO

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Presented By-Deepak Khandelwal

SALES ORGANIZATION

A sales organization is a organization of individual either working together for the marketing of products and services manufactured by an enterprise or for product that are procured by the firm for the purpose of reselling.

A sale organization structural body through which the function of sale management are carried out.

elements OF SALES ORGANIZATIONS

To permit the development of specialist To assure that all necessary activities are

performed To achieve coordination or balance To define authority To economize on executive time

PRINCIPLES OF SALES ORGANIZATION

Span of control

Centralization & Decentralization

Integration & coordination of function

FACTOR INFLUENCING SALES ORGANIZATION

Product & service related factor

Organization related factor

Marketing mix related factor

External factor

Organization Design

It refers to the formal in cordination task of assign territories & establishing flows of communication & responsibilities of sales group & individual to serve customer effectively.

It helps in- Enhancing productivity Reducing conflict Improve an individual quality of work

PRODUCT ORGANIZATION DESIGN

NortheastDistrict

Sales Manager

TypewriterSalesperson

MinicomputerSalesperson

ProgrammableCalculator

Salesperson

CopierSalesperson

LargeComputer

Salesperson

Mid-AtlanticDistrict

Sales Manager

SouthernDistrict

Sales Manager

EasternRegional

Sales Manager

NationalSales Manager

Equipment ComputerSalesperson

PRODUCT ORGANIZATION DESIGN

Advantages Allows focusing of sales effort Expertise developed in limited number of

products

Disadvantages More expensive to operate May result in duplication of sales calls to

clients

LINE ORGANIZATION Oldest & simplest structure Widely used in smaller firms or firms with

small numbers of selling personnels, limited geographical area or narrow product line

Chain of command run from top to down All executives exercise line authority & each

sales person is responsible to next in the hierarchy

No cross communication between persons at same level

Greatest use in companies where all sales persons report directly to the chief sales executives

LINE ORGANIZATION Advantages:

Problems of discipline & control are small Authority & responsibility are clear Saves time in making policy changes Development of close relationship between

superior & subordinate Administrative expenses are low

Disadvantages Too much dependence on department head Insufficient time for policy making & planning Inappropriate for rapidly growing firms Offers little opportunity to subordinates to

acquire management skills

LINE ORGANIZATION

General Manager

Assistant sales ManagerDivision 1

Sales Manager

Assistant sales Manager

Office

Assistant sales ManagerDivision 2

Assistant sales ManagerDivision 3

Sales People Sales People Sales People Office Staff

LINE & STAFF SALES ORGANIZATION

President

AdvertisingManager

Vp marketing

Sales personelDirector

Director Training

Assistant Gm sales

Manager market research

AssistantTo

Gm sales

Gm sales

Sales Promotion Manager

District sales manager

Branch sales manager

Sales personnel

LINE ORGANIZATION

In a pure line organization-

Decision are made faster Overhead cost are lower Sales people need to follow the

command.

FUNCTIONAL SALES ORGANIZATION

Each individual in an organization should have few distinctive duties as possible

Principle of specialization is utilized to its fullest extent

Sales people receive instructions from several executive but at different aspects of their work

AdvantagesAdvantages Improved performance

DisadvantagesDisadvantages Not feasible for small & medium sized

firms Suitable for large firms with stable

operations & with opportunity for considerable division of labour

FUNCTIONAL SALES ORGANIZATION

PRODUCT SALES ORGANIZATION

AdvantagesAdvantages Consistent with market driven strategy Salespeople become customer experts

DisadvantagesDisadvantages More expensive

PRODUCT SALES ORGANIZATION

NationalAccountsManager

NortheastDistrict

Sales Manager

Salespersonfor Educational Institutions

Salespersonfor Manufacturers

Salespersonfor Retail

Customers

Salespersonfor Government

Agencies

Salespersonfor WholesaleCustomers

Salespersonfor Bank

Customers

Mid-AtlanticDistrict

Sales Manager

SouthernDistrict

Sales Manager

EasternRegional

Sales Manager

Managerof

Export Sales

NationalSales Manager

SIZE OF SALES FORCE

Three Method

Affordability method

Incremental method

Work load method

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