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SALES ORGANIZATIONS<br />purpose of sales organizations<br /><ul><li>to permit the development of specialist
to assure that all necessary activities are performed
to achive coordination or balance
to define authority
to economize on executive time</li></li></ul><li>SETTING UP A SALES ORGANIZATION<br />Defining the objective<br /><ul><li>...
Qualitative objectives are indispensable for long-range planning, thus, kept in mind in short range planning also
Quantitative objectives are required as operating guideposts</li></ul>Delineating the necessary activities<br /><ul><li>De...
Also helps in determining which activities to be performed in what volume</li></li></ul><li>CONTD…<br />grouping activitie...
activities are grouped so that closely related tasks are assigned to same positions
each position must also contain some variations</li></ul>assigning personnel to positions<br /><ul><li>whether to recruit ...
they should not be overburdened nor should have too many subordinates</li></li></ul><li>CONTD…<br /><ul><li>coordination &...
formal instruments of organizational control:</li></ul>written job description<br /><ul><li>reporting relationships
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Sales Organizations

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Sales Organizations

  1. 1. SALES ORGANIZATIONS<br />purpose of sales organizations<br /><ul><li>to permit the development of specialist
  2. 2. to assure that all necessary activities are performed
  3. 3. to achive coordination or balance
  4. 4. to define authority
  5. 5. to economize on executive time</li></li></ul><li>SETTING UP A SALES ORGANIZATION<br />Defining the objective<br /><ul><li>Set both quantitative as well as qualitative objectives
  6. 6. Qualitative objectives are indispensable for long-range planning, thus, kept in mind in short range planning also
  7. 7. Quantitative objectives are required as operating guideposts</li></ul>Delineating the necessary activities<br /><ul><li>Determining the necessary activities & their volume of performance is based on qualitative & quantitative objectives
  8. 8. Also helps in determining which activities to be performed in what volume</li></li></ul><li>CONTD…<br />grouping activities into ‘jobs’ or ‘positions’<br /><ul><li>activities identified are allocated to different positions
  9. 9. activities are grouped so that closely related tasks are assigned to same positions
  10. 10. each position must also contain some variations</li></ul>assigning personnel to positions<br /><ul><li>whether to recruit special individuals to fill the positions or to modify the positions to fit the capabilities of available persons</li></ul>providing for coordination and control<br /><ul><li>sales executives require means to control their subordinates & to coordinate their efforts
  11. 11. they should not be overburdened nor should have too many subordinates</li></li></ul><li>CONTD…<br /><ul><li>coordination & control is obtained through both formal & informal means
  12. 12. formal instruments of organizational control:</li></ul>written job description<br /><ul><li>reporting relationships
  13. 13. job objectives, duties & responsibilities
  14. 14. performance measurements</li></ul>an organization chart<br /><ul><li>reduces confusion about individuals role
  15. 15. delineates formal relationship</li></ul>organizational manuals<br /><ul><li>extension of organization chart
  16. 16. contains chart for both the company & the department</li></li></ul><li>BASIC TYPES OF SALES ORGANIZATION STRUCTURE<br />factors affecting the organizational structure<br />types of organization structure<br /><ul><li>the customers
  17. 17. the marketing channelsthe company size
  18. 18. the product or product line
  19. 19. the practices of competitors
  20. 20. personalities & abilities of personnel</li></ul>line sales organizations<br /><ul><li>oldest & simplest structure
  21. 21. widely used in smaller firms or firms with small numbers of selling personnels, limited geographical area or narrow product line
  22. 22. chain of command run from top to down
  23. 23. all executives exercise line authority & each sales person is responsible to next in the hierarchy</li></li></ul><li>LINE SALES DEPARTMENT ORGANIZATION<br />GM<br />SM<br />ASSISTANT<br />SM DIV-1<br />ASSISTANT<br />SM DIV-2<br />ASSISTANT<br />SM DIV-3<br />ASSISTANT <br />SM OFFICE<br />SALES <br />PEOPLE<br />SALES<br />PEOPLE<br />SALES<br />PEOPLE<br />OFFICE<br />STAFF<br />
  24. 24. CONTD…<br /><ul><li>no cross communication between persons at same level
  25. 25. greatest use in companies where all sales persons report directly to the chief sales executives</li></ul>advantages:<br /><ul><li>problems of discipline & control are small
  26. 26. authority & responsibility are clear
  27. 27. saves time in making policy changes
  28. 28. development of close relationship between superior & subordinate
  29. 29. administrative expenses are low</li></ul>disadvantages<br /><ul><li>too much dependence on department head
  30. 30. insufficient time for policy making & planning
  31. 31. inappropriate for rapidly growing firms
  32. 32. offers little opportunity to subordinates to acquire management skills</li></li></ul><li>CONTD…<br />line & staff sales organizations<br /><ul><li>found in large & medium-sized firms employing number of sales persons, selling diversified product lines over wide geographic areas
  33. 33. provide top sales executives with group of specialists to assist
  34. 34. staff helps in conserving the time & frees executives for other works
  35. 35. staff specialists increases overall effectiveness of department
  36. 36. staff do not have authority to issue orders or directives</li></li></ul><li>LINE & STAFF SALES DEPTT. ORGANIZATION<br />President<br />Vp marketing<br />Manager market research<br />Gm sales<br />Advertising<br />Manager<br />Sales personel<br />Director<br />Director <br />Training<br />Assistant <br />Gm sales<br />Assistant<br />To <br />Gm sales<br />Sales <br />Promotion <br />Manager<br />District sales manager<br />Branch sales manager<br />Sales personnel<br />
  37. 37. CONTD…<br />Advantages<br /><ul><li>Specialization
  38. 38. planning activities are divided and apportioned to staff members
  39. 39. executives concentrate on coordination & control</li></ul>Disadvantages<br /><ul><li>increase in administrative expenses
  40. 40. difficult to prevent some persons from evading unwanted responsibilities</li></li></ul><li>CONTD…<br />functional sales organization<br /><ul><li>each individual in an organization should have few distinctive duties as possible
  41. 41. principle of specialization is utilized to its fullest extent
  42. 42. sales people receive instructions from several executive but at different aspects of their work</li></ul>Advantages<br /><ul><li>improved performance</li></ul>disadvantages<br /><ul><li>not feasible for small & medium sized firms
  43. 43. suitable for large firms with stable operations & with opportunity for considerable division of labour</li></li></ul><li>CONTD…<br />committee sales organization<br /><ul><li>never a sole basis for organizing a sales deptt.
  44. 44. method of organizing the executive groups for planning & policy formulation
  45. 45. the agenda must be planned & controlled to avoid wasting time</li></ul>advantages<br />promote coordination<br />collective decision making<br />provide focal point for discussion & for suggestions<br />

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