The document outlines various sales organization structures, including line, line and staff, functional, and horizontal organizations, each with its own pros and cons regarding decision-making and resource management. It also discusses specialized structures based on geography, product/service line, customer size, and industry segments, highlighting the benefits and challenges of each. Ultimately, it emphasizes the importance of aligning sales structures with organizational needs and market demands.

1. SALES
ORGANISATION AND
STRUCTURE
GROUP 3

2. WHAT IS SALES
ORGANISATION?
• AN ORGANIZATIONAL UNIT WITHIN
LOGISTICS, THAT STRUCTURES THE
COMPANY ACCORDING TO ITS SALES
REQUIREMENTS.
• RESPONSIBLE FOR THE SALE AND
DISTRIBUTION OF GOODS AND SERVICES.

3. • DISTRIBUTION CHAINS WHICH DETERMINE THE
RESPONSIBILITY FOR A DISTRIBUTION CHANNEL
• 4 MOST COMMON SALES ORGANISATION STRUCTURES -
STRUCTURE
1. LINE ORGANISATION
2. LINE AND STAFF ORGANISATION
3. FUNCTIONAL ORGANISATION
4. HORIZONTAL ORGANISATION

4. 1. LINE ORGANISATION
PROS
• SIMPLE ORGANIZATION, CLEAR
AUTHORITY, QUICK DECISIONS,
LOW COST
CONS
• NO SUPPORT TO LINE MANAGERS
FROM SUBORDINATES WHO HAVE
SPECIALIZED KNOWLEDGE /
SKILLS
• LESS TIME FOR PLANNING /
ANALYSIS

5. 2. LINE AND STAFF ORGANISATION
PROS
• BETTER MARKETING DECISIONS,
SUPERIOR SALES PERFORMANCE
CONS
• HIGH COST AND COORDINATION,
SLOWER DECISION MAKING
• CONFLICT MAY ARISE IF STAFF
MANAGERS’ ROLE IS NOT CLEAR

6. 3. FUNCTIONAL ORGANISATION
PROS
• QUALIFIED SPECIALISTS GUIDE
SALES FORCE, SIMPLE TO
ADMINISTER
CONS
• CONFUSION TO SALESPEOPLE

7. 4. HORIZONTAL ORGANISATION
PROS
• REDUCTION IN SUPERVISION,
UNNECESSARY TASKS, & COST
• IMPROVED EFFICIENCY AND
CUSTOMER RESPONSES
CONS
• PRESSURE ON PLANNING TEAM
FOR COORDINATION

8. SPECIALISED
STRUCTURES
CRITERIA FOR SELECTION -
• PRODUCT AND SERVICE
• SALES FORCE ABILITIES
• DEMANDS OF SELLING
• CUSTOMERS AND MARKETS

9. SPECIALISED STRUCTURE
1. GEOGRAPHY / TERRITORY
2. PRODUCT / SERVICE LINE
3. CUSTOMER / ACCOUNT SIZE
4. INDUSTRY / VERTICAL SEGMENT
5. COMBINATION / HYBRID STRUCTURE

10. 1. GEOGRAPHY / TERRITORY
PROS
• DEVELOP FAMILIARITY WITH A
SPECIFIC GEOGRAPHIC LOCATION
• BUILD RAPPORT WITH LOCAL
BUSINESSES, GET TO KNOW
REGIONAL COMPETITORS, AND
TRACK TARGET ACCOUNTS
CONS
• WORKING IN SILOS, INHIBITING
THEIR ABILITY TO DEVELOP
CROSS-FUNCTIONAL EXPERTISE

11. 2. PRODUCT / SERVICE LINE
PROS
• SALES REPS BECOME THE EXPERT ON A
SPECIFIC PRODUCT THEY SELL,
THEREBY BETTER ABLE TO
COMMUNICATE ITS VALUE AND USE
CASE FOR INDIVIDUAL CLIENTS
CONS
• REPS MAY FOCUS MORE ON THE
FEATURES OF THE PRODUCTS THEY ARE
SELLING, AND NOT THE BEST
SOLUTION FOR THE CUSTOMER.

12. 3. CUSTOMER / ACCOUNT SIZE
PROS
• REPS BECOME FAMILIAR WITH THE
INTRICACIES OF THESE ACCOUNTS AND
MEET THE NEEDS OF THE CUSTOMER
AND COMPANY
CONS
• DIFFICULT TO MANAGE RESOURCES
• CONSTANT COMMUNICATION WITH
TEAM MEMBERS TO ENSURE ALL
CLIENTS RECEIVE THE SAME QUALITY
OF SERVICE

13. 4. INDUSTRY / VERTICAL SEGMENT
PROS
• REPS ARE WELL-VERSED IN HOW TO
POSITION OFFERING TO THESE
VARIOUS VERTICALS BY ORGANIZING
THEIR SALES TEAMS ACCORDINGLY
CONS
• ONE OF THE MOST EXPENSIVE WAYS TO
STRUCTURE A SALES TEAM

14. 5. COMBINATION / HYBRID STRUCTURE
PROS
• MINIMISE DISADVANTAGES OF
OTHER STRUCTURES
CONS
• MOST EXPENSIVE WAY TO
STRUCTURE A SALES TEAM

15. 38 – Akhilesh Tonpe
43 – Mohit Rohera
46 – Nikhil Hirani
49 – Tushar Mirchandani
56 – Jagruti Advani
57 – Priya Bhatia
THANK YOU