The document discusses the key aspects of designing a sales organization, including the role of the sales organization, basis for the design, types of organizational structures, sales force structures, and sales culture. Specifically, it outlines different types of organizational structures like formal vs informal and horizontal vs vertical. It also describes different sales force structures such as product-based, geographic-based, and customer-based. Finally, it discusses the importance of developing an effective sales culture.

1. The Sales Organization

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

9. The Sales Organization 9
Horizontal Organization Structure
Chairman
G.M. (Production) G.M (Marketing) G.M (R&D)
Manager
(Consumer products)
Regional Manager
(Consumer products)
Chief manager
(R&D)
Manager
(Auto Component)
Regional Manager
(Auto Components)
Chief Manager
(R&D) (Components)

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

12. The Sales Organization 12
Line & Staff Structure
Chairman
G.M.
(Production)
G.M.
(Finance)
G.M.
(Marketing)
Manager
(Market Research)
Regional Manager
(South)
Regional Manager
(North)
Zonal Manager
Sales Promotion)
Manager
(Advertising)
Sales
personnel
Sales
personnel
Sales
personnel
Sales
personnel

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

23. Thank you