2. The Sales Organization 2
Objectives
Role of a Sales Organization
Basis for Designing a Sales Organization
Types of Organizations
Types of Sales Force Structure
Sales Culture
3. The Sales Organization 3
Role of a Sales Organization
Permit development of specialists
Achievement of company objectives
Achieve coordination and balance
Economize executive time
4. The Sales Organization 4
Basis for Designing a Sales Organization
Mission and objectives of company
Target market segment
Core competence
Organizational relationships
Flexibility
Organizational culture
Size and type of sales force
Terms of employment
Staffing activity
Compensation system
Market orientation
Technology
Company size
5. The Sales Organization 5
Types of Organizations
Formal and informal organizations
Horizontal and vertical organization
Centralized and decentralized organizations
Line and staff organizations
6. The Sales Organization 6
Formal Organizations
Advantages
Clear-cut reporting system
Easier evaluation of sales performance
Structured and defined format to perform every task
Clearly defined policies, procedures and hierarchy
Disadvantages
Extensive departmentalization
Rigidity in reporting relationship
Lesser personal contact between superiors and subordinates
7. The Sales Organization 7
Informal Organizations
Advantages
Allows informal groups within an organization
including personnel from different departments
allow proper interaction on various tasks
Develop positive norms and values
Disadvantages
May not support the goals and objectives
established by organization
May lead to informal leaders having unhealthy
control over group members
8. The Sales Organization 8
Vertical Organization Structure
Traditional management structure
Basis of control is authority
More hierarchy levels
Narrow span of control
Advantages
Work is first organized on basis of functions then on departments
then on tasks
Lesser possibility of information loss down the hierarchy
Less chance of duplication of authority
Disadvantages
Many hierarchical levels - more additional staff
Complicated communication objectives, policies and plans
10. The Sales Organization 10
Horizontal Organization Structure
Advantages
Less number of hierarchical levels
Faster response to market changes
Facilitates teamwork and collaboration
Improve decision-making
Disadvantages
Loss of competitiveness
Not suited for all operations
Require investment to train employees
11. The Sales Organization 11
Line Organization Structure
Advantages
Less expensive
Facilitates easier coordination of activities
Helps in quick decision making
Prevents conflicts
Disadvantages
Inappropriate decisions by manager may lack self
perspective
Inherent complexity
13. The Sales Organization 13
Line & Staff Structure
Advantages
Quality of Decisions
Most suitable for organization having few products
Disadvantages
Conflict in objectives of life and staff personnel
Lack of coordination
14. The Sales Organization 14
Types of Sales Force Structure
Product-based sales force structure
Geographic-based sales force structure
Customer-based sales force structure
Combination-based sales force structure
15. The Sales Organization 15
Product-based Sales Force Structure
Chairman
Deputy Director
(New Device Evaluation)
Deputy Director
(Product Quality)
Director
(Toxicology)
Director
(Haematology Devices)
Director
(Microbiology Devices)
Manager (sales)
Sales Force
16. The Sales Organization 16
Geographic-based Sales Force Structure
C.E.O.
Americas Europe Asia Pacific
Canada
U.S.A.
Latin America Western Europe
Eastern Europe
Scandinavia
South Asia
Far East
Australia
Sales Force
Country Manager
17. The Sales Organization 17
Customer-based Sales Force Structure
Vertical business units
customer
Horizontal competency
units
Regional Business
units
18. The Sales Organization 18
Combination-based Sales Force Structure
President
Senior Vice President
(Resource & Strategy)
Director
H.R.
Vice President
(Financial Service)
Director
(Planning)
Director
(Raw Material)
Vice President
(Chemicals)
Vice President
(Lubricants)
Vice President
(Fuels)
G.M.
(Distribution)
G.M.
(production)
G.M.
(production)
G.M.
(Distribution)
G.M.
(production)
G.M.
(Distribution)
19. The Sales Organization 19
Sales Culture
Components
Symbols
Jargons
Ceremonies
Ritual and rites
Role models
Tales and stories
Values & beliefs
20. The Sales Organization 20
Stages in Formation of Sales Culture in an
Organization
Organization takes steps
To modify or create
A better culture
Symbols, tales and stories,
Ceremonies, routine activities,
role models, language, values
And beliefs.
The learnt culture
Becomes a routine
Behavior
For a sales personnel
These are
Imbibed by
Sales
Personnel
Meaning are
Interpreted by sales
Personnel.
Interpretation are
Evaluated
By sales
personnel
21. The Sales Organization 21
Role of Sales Culture in Developing a Sound
Sales Organization
The success of sales culture depends on
Strength of sales culture
Direction or fit of sales culture
22. The Sales Organization 22
Summary
Role of a Sales Organization
Basis for Designing a Sales Organization
Types of Organizations
Types of Sales Force Structure
Sales Culture