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Sales organisation & relationship


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Basics of organisational communication. How to communicate within an organisation?

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Sales organisation & relationship

  1. 1. Unit-2
  2. 2.  With various tasks required to be performed the enterprise had to create a structure to ensure that work is done.  Principles of structure: authority, responsibility, performance, suppo rt/co-ordinate.
  3. 3.  Concept of organization: Group of individuals working jointly to achieve a defined goal and bearing formal and informal relations with one another. An organization is oriented towards and a co- operative endeavor and a structure of human relationships.
  4. 4.  Eliminate waste of effort  Minimize friction  Maximize co-operation  Permit development of specialists  Ensure that all activities get done  Achieve co-ordination/balance  Define authority  Fix responsibility
  5. 5.  Defining the objectives.  Delineating the necessary activities.  Grouping activities into “jobs” or “positions”.  Assigning personnel to positions.  Providing for coordination and control.
  6. 6.  Line organization: line managers perform sales and sales management activities.  Line and staff organization: Staff managers have advisory or support responsibility. e.g.Market research manager, Training manager.They are not directly responsible for achieving sales targets.  Functional organization: focus is on the principle of specialization. Each specialist has a functional responsibility and are permitted to direct and control the salesperson thru their immediate superior.
  7. 7.  Horizontal structure.  Specialized structure: Geographical; Product; Market or customer; Combination of specialized structures.
  8. 8.  Clear authority & Responsibility  Quick response & Decision, Low Cost  Weak on marketing inputs  Sales manager controlled Area Sales Mgr Area Sales Mgr Area Sales Mgr Area Sales Mgr Sales Force Sales Force Sales Force Sales Force Sales Manager Head –Marketing Sales Manager Head –Marketing Area Sales Mgr Sales Manager Head –Marketing
  9. 9. General Sales Manager Marketing Research Manager Advertising manager Vice-President in charge of Marketing President Sales Promotion Manager Director to dealer & Distributor Relations Assistant to General Sales Manager Assistant General Sales Manager Sales personnel directing Director of sales training District Sales Manager Branch Sales Manager Sales Personnel (400)
  10. 10. Head -Marketing Marketing Services Sales Promotion Brand Market Research Area Sales Managers Sales Force
  11. 11. 11 Research & Design team Customer Research Product / Service design Operations team Production QA Engineering Systems Customer Support team Service Training Information Customer Satisfaction Ateams Sales & Marketing Pricing & Promotion Channels Logistics Planning Team Strategy Finance HR
  12. 12.  Final buyer relations  Industry relations  Government relations  Educational relations  Press relations
  13. 13.  It is the system of intermediaries between the producer of goods and/or services and the final users.  Distributive outlets are customers for the products, and collectively they bear the responsibility for making the “payoff” sales to final buyers.  The distributive outlets handling the product, or assisting in its sales, are extensions of the manufacturer’s sales organisation. -------- Seller ------ --Distribution Function--- --Buyer-- Supplier >> Manufacturer >> Distributor >> Retailer >> Customer
  14. 14.  Building distributive network loyalty to the manufacturer.  Appraisal of the manufacturer’s policies and their implementation.  Analysis of communication system  Stimulating distribution outlets to greater selling efforts  Changing policies  Sharing promotional risk with dealers  Using forcing methods  Incentives to the distributive outlets  Incentives to the distributive outlets’ sales personnel  Incentives to ultimate consumers.
  15. 15.  Dealer training programs  Assistance in sales force management  Advise and assistance in general management problems  Shelf-allocation programs(self service)  Missionary sales personnel(a manufacturer's representative)  Identifying source of supply at final buyer level.  Local advertising  Point of purchase identification(retail store)
  16. 16.  What do they co-ordinate ?  Co-ordinate different order getting methods  Cross objectives of different channels  Co ordinate with other Marketing activities  Co ordinate personal Selling with Advertising and Sales Promotion  Sales to capitalize on Advertising  How do they co ordinate ? • Co ordination by participate method  Advertising and Sales promotion an arial support.  What done best by Personal Selling and Advertising is decided
  17. 17.  Create middlemen (dealers)  Persuade them to stock  Create market pull for them to stock  Co ordinate between company and dealer for  Promotional work  Establish dealer identity among end users  Protect the interest of the company and the dealer  Share promotional Cost and Risk with dealer