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
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
Eliminate waste of effort
Permit development of specialists
Ensure that all activities get done
Defining the objectives.
Delineating the necessary activities.
Grouping activities into “jobs” or “positions”.
Assigning personnel to positions.
Providing for coordination and control.
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
Market or customer;
Combination of specialized structures.
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
Area Sales Mgr
in charge of
District Sales Manager
Branch Sales Manager
Sales Promotion Brand Market Research
Research & Design team
Product / Service design
Customer Support team
Sales & Marketing
Pricing & Promotion
Final buyer relations
It is the system of intermediaries between the
producer of goods and/or services and the final
Distributive outlets are customers for the
products, and collectively they bear the
responsibility for making the “payoff” sales to
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
Building distributive network loyalty to the
Appraisal of the manufacturer’s policies and their
Analysis of communication system
Stimulating distribution outlets to greater selling
Sharing promotional risk with dealers
Using forcing methods
Incentives to the distributive outlets
Incentives to the distributive outlets’ sales
Incentives to ultimate consumers.
Dealer training programs
Assistance in sales force management
Advise and assistance in general management
Shelf-allocation programs(self service)
Missionary sales personnel(a manufacturer's
Identifying source of supply at final buyer
Point of purchase identification(retail store)
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 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
Create middlemen (dealers)
Persuade them to stock
Create market pull for them to stock
Co ordinate between company and dealer for
Establish dealer identity among end users
Protect the interest of the company and the
Share promotional Cost and Risk with dealer