The document discusses the organization of enterprises and distribution channels. It explains that enterprises establish organizational structures with defined roles, responsibilities, and hierarchies in order to coordinate activities and ensure all tasks are completed. It also describes different types of organizational structures including line, line-and-staff, and functional structures. Additionally, it outlines the role of distribution channels in connecting producers and final consumers and different strategies for coordinating relationships with distributors.

1. Unit-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.  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.  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.  Defining the objectives.
 Delineating the necessary activities.
 Grouping activities into “jobs” or “positions”.
 Assigning personnel to positions.
 Providing for coordination and control.

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.  Horizontal structure.
 Specialized structure:
Geographical;
Product;
Market or customer;
Combination of specialized structures.

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. 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. Head -Marketing
Marketing
Services
Sales Promotion Brand Market Research
Area Sales
Managers
Sales Force

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.  Final buyer relations
 Industry relations
 Government relations
 Educational relations
 Press relations

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.  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.  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.  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.  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