This presentation is based on sales organization and relationships.

1. Sales Organization
and
Relationships

2. Sales organization
Concept of organization:-
An organization is:
• composed of individuals and group of
individuals,
• oriented towards achieving common goals,
• differential functions,
• intended rational co- ordination, and
• continuity through time.

3. Role of Sales Organization
• To achieve company’s objectives.
• Streamline reporting relationships.
• To facilitate effective coordination and
control.
• To develop an efficient sales force
structure to ensure effective selling
strategy.

4. Factors Affecting Designing a sales
Organization
External Factors Internal Factors
Target
markets
Technology
prevailing in
the target
market
Company’s objective
Size of the sales force
Core competence of the
company
Compensation system
Reporting relationships
Clarity
Understanding
De- centralization
Stability and
adaptability

5. TYPES OF SALES ORGANIZATION STRUCTURES
FORMAL STRUCTURE
INFORMAL STRUCTURE
LINE ORG. STRUCTURE
LINE AND STAFF ORG. STRUCTURE
FUNCTIONAL STRUCTURE

6. DIVISIONAL STRUCTURE
MATRIX STRUCTURE
HORIZONTAL STRUCTURE
GEOGRAPHIC BASED ORG, STRUCTURE
PRODUCT SPECIALISED ORG.
STRUCTURE

7. Formal Organizational structure are created by the mgnt.
They are designed to achieve some particular objectives.
These organizations have a well defined job with a definite
authority, responsibility and accountability,
CHARACTERISTICS:-
• This structure is designed by top mgnt. to achieve
organisational goals.
• There are well defined rules and regulations.
• This structure focuses more on the performance of the
employee on the job.
• Coordination among members and their control are well
specified through rules, procedures and guidelines.

8. It is the natural grouping of the people. These are formed on the
basis of similarity between the group members. It consist of dynamic
set of personal relationship, social network, committees of social and
emotional sources of motivation.
Characteristics:-
• It is natural outcome at the work place. It is not
designed and planned.
• These structures are formed on the basis of some
similarity amongst the group members. Similarity may
be on the basis of age, gender, religion, origin, likings or
disliking etc.
• Behavior of the members in informal groups is
governed by the group norms formed by the group
members.
• This type of structure helps in the social and
psychological satisfaction of the group members.

9. It refers to a direct chain of command through which authority
flows from top to bottom.
HEAD MARKETING
SALES MANAGER
ASM-1 ASM-2 ASM-3
SE1 SE2 SE3

10. In this type of organisational structure,
staff members are appointed. These staff
members are people who have specialized
knowledge or expertise in their fields. Staff
gives advises to the line managers and it
depend on the line managers whether they
accept or reject the advice of them. Staff
members cannot give command to the line
mangers, they just support the line
managers . Staff members collects a lot of
information and gives it to the line manager
in order to help them .

11. HEAD MARKETING
MARKETING
SERVICE
MANAGER
SALES
MANAGER
MARKETING
RESEARCH
MANAGER
PROMOTION
MANAGER
ASM1 ASM2 ASM3
SE1 SE2 SE3

12. In this type of organisation structure overall
responsibilities of the organisation are divided
according to the functions of the organisation.
For controlling one function specialists are
allocated. Such specialists controls all the work
in that functional area.

13. DIVISIONAL STRUCTURE
It is also known as product structure, the
divisional structure group each organisational
function into a division. Each division contains
all the necessary resources and functions
within it.
It can be further divided into:
• Product Structure
• Market Structure
• Geographic Structure

14. MATRIX STRUCTURE
• This structure is a combination of function
and product structure.
• This structure is more complex in nature
• It groups employees by both function and
product.

15. HORIZONTAL STRUCTURE
Horizontal structure means the structure in
which there is not any leader for giving the
commands. All the people are working at
the same level of the organisation.

16. GEOGRAPHIC BASED ORG. STRUCTURE
It is a type of organisation structure in
which sales teams are assigned a geographic
area and they are responsible for selling
activities to all the potential customers
within the assigned area.

17. Product based org. structure
Product specialization is useful when the firm
has a large number of products or brands.
There are two types of specialization:
• Sales org. with product manager.
• Sales manager with product specialized
sales force.

18. Sales department external relationships
Final buyer relations
Industry relation
Government relation
Educational relation
Press relation

19. DISTRIBUTIVE NETWORK RELATIONS
• It is the system of intermediaries between the
producer of goods or services and the final
users.
• Distributive outlets are the customers for the
products, and collectively they bear the
responsibility for making the “payoff” sales to
final buyers.
Supplier Manufacturer Distributer Retailer
Customer
…… SELLER……. …..DISTRIBUTION.….

20. METHODS OF MANUFATURER’S DISTRIBUTIVE NETWORK
COOPERATION
Building distributive network loyalty to the manufacturer.
Stimulating distributive outlets to greater selling efforts.
Developing managerial efficiency in distributive
organizations.
Identifying source of supply at final buyer level.