SALES ORGANIZATION Presented By- Deepak Khandelwal
SALES ORGANIZATION A sales organization is a organization of individual either working together for the marketing of products and services manufactured by an enterprise or for product that are procured by the firm for the purpose of reselling. A sale organization structural body through which the function of sale management are carried out.
elements OF SALES ORGANIZATIONS To permit the development of specialist To assure that all necessary activities are performed To achieve coordination or balance To define authority To economize on executive time
PRINCIPLES OF SALES ORGANIZATION Span of control  Centralization & Decentralization Integration & coordination of function
FACTOR INFLUENCING SALES ORGANIZATION Product & service related factor Organization related factor Marketing mix related factor External factor
Organization Design It refers to the formal in cordination task of assign territories & establishing flows of communication & responsibilities of sales group & individual to serve customer effectively. It helps in- Enhancing productivity Reducing conflict Improve an individual quality of work
PRODUCT ORGANIZATION DESIGN Northeast District Sales Manager Typewriter Salesperson Minicomputer Salesperson Programmable Calculator Salesperson Copier Salesperson Large Computer Salesperson Mid-Atlantic District Sales Manager Southern District Sales Manager Eastern Regional Sales Manager National Sales Manager Equipment Computer Salesperson
PRODUCT ORGANIZATION DESIGN Advantages Allows focusing of sales effort Expertise developed in limited number of products Disadvantages More expensive to operate May result in duplication of sales calls to clients
LINE ORGANIZATION Oldest & simplest structure Widely used in smaller firms or firms with small numbers of selling personnels, limited geographical area or narrow product line Chain of command run from top to down All executives exercise line authority & each sales person is responsible to next in the hierarchy No cross communication between persons at same level Greatest use in companies where all sales persons report directly to the chief sales executives
LINE ORGANIZATION Advantages : Problems of discipline & control are small Authority & responsibility are clear Saves time in making policy changes Development of close relationship between superior & subordinate Administrative expenses are low Disadvantages Too much dependence on department head Insufficient time for policy making & planning Inappropriate for rapidly growing firms Offers little opportunity to subordinates to acquire management skills
LINE ORGANIZATION General Manager Assistant sales  Manager Division 1 Sales Manager Assistant sales  Manager Office Assistant sales  Manager Division 2 Assistant sales  Manager Division 3 Sales People Sales People Sales People Office Staff
LINE & STAFF SALES ORGANIZATION President Advertising Manager Vp marketing Sales personel Director Director  Training Assistant  Gm sales Manager market research Assistant To  Gm sales Gm sales Sales  Promotion  Manager District sales manager Branch sales manager Sales personnel
LINE ORGANIZATION In a pure line organization- Decision are made faster Overhead cost are lower Sales people need to follow the command.
FUNCTIONAL SALES ORGANIZATION Each individual in an organization should have few distinctive duties as possible Principle of specialization is utilized to its fullest extent Sales people receive instructions from several executive but at different aspects of their work
Advantages Improved performance Disadvantages Not feasible for small & medium sized firms Suitable for large firms with stable operations & with opportunity for considerable division of labour FUNCTIONAL SALES ORGANIZATION
PRODUCT SALES ORGANIZATION Advantages Consistent with market driven strategy Salespeople become customer experts Disadvantages More expensive
PRODUCT SALES ORGANIZATION National Accounts Manager Northeast District Sales   Manager Salesperson for Educational Institutions Salesperson for Manufacturers Salesperson for Retail Customers Salesperson for Government Agencies Salesperson for Wholesale Customers Salesperson for Bank Customers Mid-Atlantic District Sales   Manager Southern District Sales Manager Eastern Regional Sales Manager Manager of Export Sales National Sales   Manager
SIZE OF SALES FORCE  Three Method Affordability method Incremental method Work load method
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Sales organization

  • 1.
    SALES ORGANIZATION PresentedBy- Deepak Khandelwal
  • 2.
    SALES ORGANIZATION Asales organization is a organization of individual either working together for the marketing of products and services manufactured by an enterprise or for product that are procured by the firm for the purpose of reselling. A sale organization structural body through which the function of sale management are carried out.
  • 3.
    elements OF SALESORGANIZATIONS To permit the development of specialist To assure that all necessary activities are performed To achieve coordination or balance To define authority To economize on executive time
  • 4.
    PRINCIPLES OF SALESORGANIZATION Span of control Centralization & Decentralization Integration & coordination of function
  • 5.
    FACTOR INFLUENCING SALESORGANIZATION Product & service related factor Organization related factor Marketing mix related factor External factor
  • 6.
    Organization Design Itrefers to the formal in cordination task of assign territories & establishing flows of communication & responsibilities of sales group & individual to serve customer effectively. It helps in- Enhancing productivity Reducing conflict Improve an individual quality of work
  • 7.
    PRODUCT ORGANIZATION DESIGNNortheast District Sales Manager Typewriter Salesperson Minicomputer Salesperson Programmable Calculator Salesperson Copier Salesperson Large Computer Salesperson Mid-Atlantic District Sales Manager Southern District Sales Manager Eastern Regional Sales Manager National Sales Manager Equipment Computer Salesperson
  • 8.
    PRODUCT ORGANIZATION DESIGNAdvantages Allows focusing of sales effort Expertise developed in limited number of products Disadvantages More expensive to operate May result in duplication of sales calls to clients
  • 9.
    LINE ORGANIZATION Oldest& simplest structure Widely used in smaller firms or firms with small numbers of selling personnels, limited geographical area or narrow product line Chain of command run from top to down All executives exercise line authority & each sales person is responsible to next in the hierarchy No cross communication between persons at same level Greatest use in companies where all sales persons report directly to the chief sales executives
  • 10.
    LINE ORGANIZATION Advantages: Problems of discipline & control are small Authority & responsibility are clear Saves time in making policy changes Development of close relationship between superior & subordinate Administrative expenses are low Disadvantages Too much dependence on department head Insufficient time for policy making & planning Inappropriate for rapidly growing firms Offers little opportunity to subordinates to acquire management skills
  • 11.
    LINE ORGANIZATION GeneralManager Assistant sales Manager Division 1 Sales Manager Assistant sales Manager Office Assistant sales Manager Division 2 Assistant sales Manager Division 3 Sales People Sales People Sales People Office Staff
  • 12.
    LINE & STAFFSALES ORGANIZATION President Advertising Manager Vp marketing Sales personel Director Director Training Assistant Gm sales Manager market research Assistant To Gm sales Gm sales Sales Promotion Manager District sales manager Branch sales manager Sales personnel
  • 13.
    LINE ORGANIZATION Ina pure line organization- Decision are made faster Overhead cost are lower Sales people need to follow the command.
  • 14.
    FUNCTIONAL SALES ORGANIZATIONEach individual in an organization should have few distinctive duties as possible Principle of specialization is utilized to its fullest extent Sales people receive instructions from several executive but at different aspects of their work
  • 15.
    Advantages Improved performanceDisadvantages Not feasible for small & medium sized firms Suitable for large firms with stable operations & with opportunity for considerable division of labour FUNCTIONAL SALES ORGANIZATION
  • 16.
    PRODUCT SALES ORGANIZATIONAdvantages Consistent with market driven strategy Salespeople become customer experts Disadvantages More expensive
  • 17.
    PRODUCT SALES ORGANIZATIONNational Accounts Manager Northeast District Sales Manager Salesperson for Educational Institutions Salesperson for Manufacturers Salesperson for Retail Customers Salesperson for Government Agencies Salesperson for Wholesale Customers Salesperson for Bank Customers Mid-Atlantic District Sales Manager Southern District Sales Manager Eastern Regional Sales Manager Manager of Export Sales National Sales Manager
  • 18.
    SIZE OF SALESFORCE Three Method Affordability method Incremental method Work load method
  • 19.