SlideShare a Scribd company logo
1 of 20
Structures of sales organization
Structure?
Basic Types of Sales
Organisations
Sales organisations are generally classified into
four basic types:
• Line Organisation
• Line and staff organisation
• Functional organisation
• Horizontal organisation
We shall discuss main characteristics, advantages,
and disadvantages of each type of sales
organisation
Line Organization
Head
Marketing
Sales
Manager
Area Sales
Manager1
Area Sales
Manager3
Area Sales
Manager2
Area Sales
Manager4
salespeople salespeople salespeople salespeople
Characteristics: All managers have line authority to direct and
control subordinates. Used in small firms / departments
Advantages: Simple organization, clear authority, quick decisions,
low cost
Disadvantages: No support to line managers from subordinates
who have specialized knowledge / skills. Less time for planning /
analysis
Line and Staff Organization
Head-Marketing
Marketing Research
Manager
Sales Manager
Promotional
Manager
Customer Service
Manager
Area Sales
Manager-1
Area Sales
Manager-1
Area Sales
Manager-1
Salespeople Salespeople Salespeople
Characteristics: Specialist staff managers are available for senior
marketing / sales managers. Staff managers’ role is to assist / advise line
managers. Used in medium and large size organizations
Advantages: Better marketing decisions, superior sales performance
Disadvantages: High cost and coordination, slower decision making,
conflict may arise if staff managers’ role is not clear
Functional Organization
Head-Marketing
Marketing Research
Manager
Promotional
Manager
Customer Service
Manager
Sales Manager
Area Sales Manager #4
Salespeople
Characteristics: Each functional specialist has line responsibility over
salespeople. Used by a large firm with many products / market
segments, minimizing line authority to functional managers
Advantages: Qualified specialists guide sales force, simple to
administer
Disadvantage: confusion due to more managers giving orders to sales
force
Horizontal Organization
Research & Design Team:
•Customer Research
•Product / Service Design
Planning Team:
•Strategic Planning
•Accounts, Finance
•HR, Administration
•Chief Operation Officer
Operations Team:
•Production / Operations
•Quality Assurance
•Systems Engineering
Customer Support Team:
•Information
•Service
•Training
Customer Satisfaction
Team:
•Sales & Marketing
•Pricing, Promotion
•Channels, Logistics
Characteristics: Removes management levels & departmental
boundaries. Except planning team, all others are members of cross-
functional teams. Used by firms having partnering relationships with
customers.
Advantages: Reduction in supervision, unnecessary tasks, & cost;
Improved efficiency and customer responses.
Specialization within Sales Organization
• Needed to increase effectiveness of sales force
• Done by expanding basic sales organization
• Basis of specialization
• Geography
• Type of product
• Market
• Combination of above
• Criteria for selection – (1) nature of product, (2)
sales force abilities, (3) demands of selling job,
(4) customer and market facts
Geographic Specialization
Head-Marketing
Marketing Research
Manager
General Sales
Manager Promotion
Manager
Customer Service
Manager
Branch Sales
Manager-1
Branch Sales
Manager-2
Branch Sales
Manager-3
Branch Sales
Manager-4
Salespeople Salespeople Salespeople Salespeople
Characteristics: salespeople, assigned geographic areas, are responsible
for all selling activities to all customers within assigned areas. Branch sales
managers adjust marketing plan to local needs
Advantages: Better market coverage and customer service, more control
over sales force, quick response to local conditions & competition
Disadvantages: Limited specialization of marketing tasks. Hence, it is
combined with product / market sales organization
Product Specialization
Head-Marketing
Marketing Research
Manager
General
Sales Manager
Sales Training
Manager
Promotion
Manager
Area Sales Managers –
Product Group ‘A’
Area Sales Managers –
Product Group ‘B’
Salespeople –
Product Gr. ‘A’
Salespeople –
Product Gr. ‘B’
Fig. ‘x’ Sales Organisation with product specialised salesforce
Advantage: Each product gets specialized attention from the salesforce
Disadvantage: Sometimes, more salespeople contact the same customer,
resulting in customer dissatisfaction and higher cost
Market Specialization
General Sales
Manager
Sales Manager-
International-
Markets
Sales Manager-
Commercial
Sales Manager-
Consumer Markets
Sales Manager-
Government
Area Sales Mgrs
International
Sales Executives
Area Sales Manager-
Commercial
Salespeople
Area Sales Manager-
Government
Salespeople
Area Sales Mgrs-
Consumer Markets
Salespeople
• Characteristics: Desirable when customers are classified by type, user
industry, or channel. Salespeople carry out all activities for all products only
for specific customer groups
• Advantages: Meets needs of specific customer groups, implements
customer-centerd philosophy of the company
• Disadvantages: Geographic duplication, high cost
Combination Sales Organization
Director – Sales
& Marketing
General Manager
Sales - North
General Manager
Sales - East
General Manager
Sales - South
General Manager
Sales - West
Regional Sales
Mgr. – Govt.
Regional Sales
Mgr. - Dealers
Regional Sales
Mgr. - Commercial
Salespeople Salespeople Salespeople
• Characteristics: Many firms use some combination of specialisation
organizations, called hybrid or combination sales organisation, with
a view to minimize disadvantages and maximize advantages of
specialization organizations
Thanks for listening
patiently
An effort by: Vivek Gautam

More Related Content

What's hot

Sales training: program, execution and evaluation
Sales training: program, execution and evaluationSales training: program, execution and evaluation
Sales training: program, execution and evaluationShwetanshu Gupta
 
Sales force evaluation and control
Sales force evaluation and controlSales force evaluation and control
Sales force evaluation and controlBHOOMI AHUJA
 
Channel Management Decisions
Channel Management DecisionsChannel Management Decisions
Channel Management DecisionsSameer Mathur
 
Sales force motivation role, scope and methods
Sales force motivation role, scope and methods Sales force motivation role, scope and methods
Sales force motivation role, scope and methods shishir200988
 
Buyer seller dyads
Buyer seller dyadsBuyer seller dyads
Buyer seller dyadsSanu Satyam
 
Sales Promotion in Marketing
Sales Promotion in MarketingSales Promotion in Marketing
Sales Promotion in MarketingAnubha Rastogi
 
Steps in marketing research process
Steps in marketing research processSteps in marketing research process
Steps in marketing research processHimanshi Gupta
 
Sales organization
Sales organizationSales organization
Sales organizationVikram Singh
 
Sales management 1
Sales management 1Sales management 1
Sales management 1ankitsengar
 
Introduction to sales management
Introduction to sales management Introduction to sales management
Introduction to sales management Citibank N.A.
 
Organising and Staffing the Salesforce
Organising and Staffing the SalesforceOrganising and Staffing the Salesforce
Organising and Staffing the SalesforceSameer Chandrakar
 
Testing Advertising Effectiveness
Testing Advertising Effectiveness Testing Advertising Effectiveness
Testing Advertising Effectiveness Anubha Rastogi
 
Channel Management Decisions and Training of Channel Members
Channel Management Decisions and Training of Channel MembersChannel Management Decisions and Training of Channel Members
Channel Management Decisions and Training of Channel MembersMegha Anilkumar
 

What's hot (20)

Sales training: program, execution and evaluation
Sales training: program, execution and evaluationSales training: program, execution and evaluation
Sales training: program, execution and evaluation
 
Sales management
Sales managementSales management
Sales management
 
Sales force evaluation and control
Sales force evaluation and controlSales force evaluation and control
Sales force evaluation and control
 
Channel Management Decisions
Channel Management DecisionsChannel Management Decisions
Channel Management Decisions
 
Sales quota and sales territory
Sales quota and sales territorySales quota and sales territory
Sales quota and sales territory
 
Sales force motivation role, scope and methods
Sales force motivation role, scope and methods Sales force motivation role, scope and methods
Sales force motivation role, scope and methods
 
Distribution Channel Management
Distribution Channel ManagementDistribution Channel Management
Distribution Channel Management
 
Buyer seller dyads
Buyer seller dyadsBuyer seller dyads
Buyer seller dyads
 
Theories of Selling
Theories of SellingTheories of Selling
Theories of Selling
 
Markrting channels
Markrting channelsMarkrting channels
Markrting channels
 
Types of salesperson
Types of salesperson Types of salesperson
Types of salesperson
 
Sales Promotion in Marketing
Sales Promotion in MarketingSales Promotion in Marketing
Sales Promotion in Marketing
 
Steps in marketing research process
Steps in marketing research processSteps in marketing research process
Steps in marketing research process
 
Sales Promotion
Sales Promotion Sales Promotion
Sales Promotion
 
Sales organization
Sales organizationSales organization
Sales organization
 
Sales management 1
Sales management 1Sales management 1
Sales management 1
 
Introduction to sales management
Introduction to sales management Introduction to sales management
Introduction to sales management
 
Organising and Staffing the Salesforce
Organising and Staffing the SalesforceOrganising and Staffing the Salesforce
Organising and Staffing the Salesforce
 
Testing Advertising Effectiveness
Testing Advertising Effectiveness Testing Advertising Effectiveness
Testing Advertising Effectiveness
 
Channel Management Decisions and Training of Channel Members
Channel Management Decisions and Training of Channel MembersChannel Management Decisions and Training of Channel Members
Channel Management Decisions and Training of Channel Members
 

Viewers also liked

sales forecasting[1]
sales forecasting[1]sales forecasting[1]
sales forecasting[1]anushree5
 
Types of sales organisation structure
Types of sales organisation structureTypes of sales organisation structure
Types of sales organisation structureGurjit
 
Approaches to personal selling
Approaches to personal sellingApproaches to personal selling
Approaches to personal sellingabhijitdeokar
 
Sales organization
Sales organizationSales organization
Sales organizationDeepak25
 
Sales, Sales Management, Sales Strategy
Sales, Sales Management, Sales StrategySales, Sales Management, Sales Strategy
Sales, Sales Management, Sales StrategyBrian Halligan
 

Viewers also liked (8)

sales forecasting[1]
sales forecasting[1]sales forecasting[1]
sales forecasting[1]
 
Types of sales organisation structure
Types of sales organisation structureTypes of sales organisation structure
Types of sales organisation structure
 
Sales Forecasting
Sales ForecastingSales Forecasting
Sales Forecasting
 
Approaches to personal selling
Approaches to personal sellingApproaches to personal selling
Approaches to personal selling
 
Sales organization
Sales organizationSales organization
Sales organization
 
Personal selling
Personal sellingPersonal selling
Personal selling
 
Chapter 1
Chapter 1Chapter 1
Chapter 1
 
Sales, Sales Management, Sales Strategy
Sales, Sales Management, Sales StrategySales, Sales Management, Sales Strategy
Sales, Sales Management, Sales Strategy
 

Similar to Sales organization structure

Chapter-V .pptx
Chapter-V .pptxChapter-V .pptx
Chapter-V .pptxKeirHei
 
Ch5 organizing and staffing the salesforce11111
Ch5 organizing and staffing the salesforce11111Ch5 organizing and staffing the salesforce11111
Ch5 organizing and staffing the salesforce11111Srinivas Reddy Dwarampudi
 
Sales And Distribution Management
Sales And Distribution ManagementSales And Distribution Management
Sales And Distribution Managementgimmba
 
Sales And Distribution Management
Sales And Distribution ManagementSales And Distribution Management
Sales And Distribution Managementguest87f145
 
sales staffing and organizing sales force
sales staffing and organizing sales forcesales staffing and organizing sales force
sales staffing and organizing sales forceAnshul Sharma
 
Staffing and organising
Staffing and organisingStaffing and organising
Staffing and organisingAtulSharma751
 
Sales organisation sales force management(2)
Sales organisation sales force management(2)Sales organisation sales force management(2)
Sales organisation sales force management(2)Gurjit
 
Sales Management Mysore University
Sales Management Mysore UniversitySales Management Mysore University
Sales Management Mysore Universitykishore dhinakaran
 
sales and distribution
sales  and distributionsales  and distribution
sales and distributionSunil Chichra
 
smm module 4.pdf nkvrvbnjhhhhhhhhhhhhhhh
smm module 4.pdf nkvrvbnjhhhhhhhhhhhhhhhsmm module 4.pdf nkvrvbnjhhhhhhhhhhhhhhh
smm module 4.pdf nkvrvbnjhhhhhhhhhhhhhhhneerajaksha988
 
Chapter 1 introduction to sales and distribution management
Chapter 1 introduction to sales and distribution managementChapter 1 introduction to sales and distribution management
Chapter 1 introduction to sales and distribution managementNishant Agrawal
 
Ch5: Organising and Staffing the Salesforce
Ch5: Organising and Staffing the SalesforceCh5: Organising and Staffing the Salesforce
Ch5: Organising and Staffing the Salesforceitsvineeth209
 
Sales and Distribution Management
Sales and Distribution ManagementSales and Distribution Management
Sales and Distribution Managementcpjcollege
 
Sales & distribution management
Sales & distribution managementSales & distribution management
Sales & distribution managementAnkit Rawal
 
Sdm ch 1 - MBA DSU 3rd SEM
Sdm ch 1 - MBA DSU 3rd SEMSdm ch 1 - MBA DSU 3rd SEM
Sdm ch 1 - MBA DSU 3rd SEMDrAnupama1
 
Introduction to Sales and Distribution Management
Introduction to Sales and Distribution ManagementIntroduction to Sales and Distribution Management
Introduction to Sales and Distribution ManagementSameer Chandrakar
 
Development and management of sales force
Development and management of sales forceDevelopment and management of sales force
Development and management of sales forceGirish Jadhwani
 

Similar to Sales organization structure (20)

Chapter-V .pptx
Chapter-V .pptxChapter-V .pptx
Chapter-V .pptx
 
Sales management
Sales management Sales management
Sales management
 
Ch5 organizing and staffing the salesforce11111
Ch5 organizing and staffing the salesforce11111Ch5 organizing and staffing the salesforce11111
Ch5 organizing and staffing the salesforce11111
 
Sales And Distribution Management
Sales And Distribution ManagementSales And Distribution Management
Sales And Distribution Management
 
Sales And Distribution Management
Sales And Distribution ManagementSales And Distribution Management
Sales And Distribution Management
 
sales staffing and organizing sales force
sales staffing and organizing sales forcesales staffing and organizing sales force
sales staffing and organizing sales force
 
Staffing and organising
Staffing and organisingStaffing and organising
Staffing and organising
 
Sales organisation sales force management(2)
Sales organisation sales force management(2)Sales organisation sales force management(2)
Sales organisation sales force management(2)
 
Sales Management Mysore University
Sales Management Mysore UniversitySales Management Mysore University
Sales Management Mysore University
 
sales and distribution
sales  and distributionsales  and distribution
sales and distribution
 
smm module 4.pdf nkvrvbnjhhhhhhhhhhhhhhh
smm module 4.pdf nkvrvbnjhhhhhhhhhhhhhhhsmm module 4.pdf nkvrvbnjhhhhhhhhhhhhhhh
smm module 4.pdf nkvrvbnjhhhhhhhhhhhhhhh
 
Chapter 1 introduction to sales and distribution management
Chapter 1 introduction to sales and distribution managementChapter 1 introduction to sales and distribution management
Chapter 1 introduction to sales and distribution management
 
Sdm ch5
Sdm ch5Sdm ch5
Sdm ch5
 
Ch5: Organising and Staffing the Salesforce
Ch5: Organising and Staffing the SalesforceCh5: Organising and Staffing the Salesforce
Ch5: Organising and Staffing the Salesforce
 
Sales and Distribution Management
Sales and Distribution ManagementSales and Distribution Management
Sales and Distribution Management
 
Ch5
Ch5Ch5
Ch5
 
Sales & distribution management
Sales & distribution managementSales & distribution management
Sales & distribution management
 
Sdm ch 1 - MBA DSU 3rd SEM
Sdm ch 1 - MBA DSU 3rd SEMSdm ch 1 - MBA DSU 3rd SEM
Sdm ch 1 - MBA DSU 3rd SEM
 
Introduction to Sales and Distribution Management
Introduction to Sales and Distribution ManagementIntroduction to Sales and Distribution Management
Introduction to Sales and Distribution Management
 
Development and management of sales force
Development and management of sales forceDevelopment and management of sales force
Development and management of sales force
 

Recently uploaded

Mastering Email Marketing - A Comprehensive Guide.pdf
Mastering Email Marketing - A Comprehensive Guide.pdfMastering Email Marketing - A Comprehensive Guide.pdf
Mastering Email Marketing - A Comprehensive Guide.pdfkassou kacem
 
Key Social Media Marketing Trends for 2024
Key Social Media Marketing Trends for 2024Key Social Media Marketing Trends for 2024
Key Social Media Marketing Trends for 2024Jomer Gregorio
 
The Indian Ocean Tsunami of 2004 Remembering a Catastrophe.pptx
The Indian Ocean Tsunami of 2004 Remembering a Catastrophe.pptxThe Indian Ocean Tsunami of 2004 Remembering a Catastrophe.pptx
The Indian Ocean Tsunami of 2004 Remembering a Catastrophe.pptxelizabethella096
 
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Magetan
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di MagetanWA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Magetan
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Magetaninfoobataborsi24
 
Tea Gobec, Kako pluti po morju tehnoloških sprememb, Innovatif.pdf
Tea Gobec, Kako pluti po morju tehnoloških sprememb, Innovatif.pdfTea Gobec, Kako pluti po morju tehnoloških sprememb, Innovatif.pdf
Tea Gobec, Kako pluti po morju tehnoloških sprememb, Innovatif.pdfDIGGIT
 
youtube_marketing_partner_vling_service_introduction
youtube_marketing_partner_vling_service_introductionyoutube_marketing_partner_vling_service_introduction
youtube_marketing_partner_vling_service_introductionbzznbyd
 
obat pelancar haid di apotik dan harganya
obat pelancar haid di apotik dan harganyaobat pelancar haid di apotik dan harganya
obat pelancar haid di apotik dan harganyainfoobataborsi24
 
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Sampang
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di SampangWA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Sampang
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Sampanginfoobataborsi24
 
Global Trends in Market Reserch & Insights - Ray Poynter - May 2023.pdf
Global Trends in Market Reserch & Insights - Ray Poynter - May 2023.pdfGlobal Trends in Market Reserch & Insights - Ray Poynter - May 2023.pdf
Global Trends in Market Reserch & Insights - Ray Poynter - May 2023.pdfMROC Japan
 
Leading Customer Retention Strategies for 2024
Leading Customer Retention Strategies for 2024Leading Customer Retention Strategies for 2024
Leading Customer Retention Strategies for 2024experienceprosarah
 
Why Digital Marketing Important for our Business.pdf
Why Digital Marketing Important for our Business.pdfWhy Digital Marketing Important for our Business.pdf
Why Digital Marketing Important for our Business.pdfInfyQ Seo Experts
 
Influencer Marekting Trends- Where the creator economy is going in in 2024
Influencer Marekting Trends- Where the creator economy is going in in 2024Influencer Marekting Trends- Where the creator economy is going in in 2024
Influencer Marekting Trends- Where the creator economy is going in in 2024Inflyx
 
The Future Normal - DIGGIT - Henry Coutinho-Mason.pdf
The Future Normal - DIGGIT - Henry Coutinho-Mason.pdfThe Future Normal - DIGGIT - Henry Coutinho-Mason.pdf
The Future Normal - DIGGIT - Henry Coutinho-Mason.pdfDIGGIT
 
Top 10 Recommended Fragrances for Father's Day
Top 10 Recommended Fragrances for Father's DayTop 10 Recommended Fragrances for Father's Day
Top 10 Recommended Fragrances for Father's Daydisenylurial
 
The BoF Brand Magic Index Volume Two — Preview.pdf
The BoF Brand Magic Index Volume Two — Preview.pdfThe BoF Brand Magic Index Volume Two — Preview.pdf
The BoF Brand Magic Index Volume Two — Preview.pdfhannahcrump4
 
Marketing Automation Insights - Unlocking Success
Marketing Automation Insights - Unlocking SuccessMarketing Automation Insights - Unlocking Success
Marketing Automation Insights - Unlocking SuccessLean Summits
 
Best Digital Expert Corporation of India
Best Digital Expert Corporation of IndiaBest Digital Expert Corporation of India
Best Digital Expert Corporation of IndiaPriyaDigitalExpert
 
ATRIUM GAMING : SLOT GACOR MUDAH MENANG TERBARU
ATRIUM GAMING : SLOT GACOR MUDAH MENANG TERBARUATRIUM GAMING : SLOT GACOR MUDAH MENANG TERBARU
ATRIUM GAMING : SLOT GACOR MUDAH MENANG TERBARUsayangkamuu240203
 
Personal Brand Exploration Selk_Ingrid_DMBS_PB1_2024-01.pptx
Personal Brand Exploration Selk_Ingrid_DMBS_PB1_2024-01.pptxPersonal Brand Exploration Selk_Ingrid_DMBS_PB1_2024-01.pptx
Personal Brand Exploration Selk_Ingrid_DMBS_PB1_2024-01.pptxIngridSelk
 
Klaus Schweighofer, Zakaj je digitalizacija odlična priložnost za medije, Sty...
Klaus Schweighofer, Zakaj je digitalizacija odlična priložnost za medije, Sty...Klaus Schweighofer, Zakaj je digitalizacija odlična priložnost za medije, Sty...
Klaus Schweighofer, Zakaj je digitalizacija odlična priložnost za medije, Sty...DIGGIT
 

Recently uploaded (20)

Mastering Email Marketing - A Comprehensive Guide.pdf
Mastering Email Marketing - A Comprehensive Guide.pdfMastering Email Marketing - A Comprehensive Guide.pdf
Mastering Email Marketing - A Comprehensive Guide.pdf
 
Key Social Media Marketing Trends for 2024
Key Social Media Marketing Trends for 2024Key Social Media Marketing Trends for 2024
Key Social Media Marketing Trends for 2024
 
The Indian Ocean Tsunami of 2004 Remembering a Catastrophe.pptx
The Indian Ocean Tsunami of 2004 Remembering a Catastrophe.pptxThe Indian Ocean Tsunami of 2004 Remembering a Catastrophe.pptx
The Indian Ocean Tsunami of 2004 Remembering a Catastrophe.pptx
 
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Magetan
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di MagetanWA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Magetan
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Magetan
 
Tea Gobec, Kako pluti po morju tehnoloških sprememb, Innovatif.pdf
Tea Gobec, Kako pluti po morju tehnoloških sprememb, Innovatif.pdfTea Gobec, Kako pluti po morju tehnoloških sprememb, Innovatif.pdf
Tea Gobec, Kako pluti po morju tehnoloških sprememb, Innovatif.pdf
 
youtube_marketing_partner_vling_service_introduction
youtube_marketing_partner_vling_service_introductionyoutube_marketing_partner_vling_service_introduction
youtube_marketing_partner_vling_service_introduction
 
obat pelancar haid di apotik dan harganya
obat pelancar haid di apotik dan harganyaobat pelancar haid di apotik dan harganya
obat pelancar haid di apotik dan harganya
 
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Sampang
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di SampangWA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Sampang
WA | 0821-8888-6412 | Apotik Jual Obat Aborsi Cytotec Asli Di Sampang
 
Global Trends in Market Reserch & Insights - Ray Poynter - May 2023.pdf
Global Trends in Market Reserch & Insights - Ray Poynter - May 2023.pdfGlobal Trends in Market Reserch & Insights - Ray Poynter - May 2023.pdf
Global Trends in Market Reserch & Insights - Ray Poynter - May 2023.pdf
 
Leading Customer Retention Strategies for 2024
Leading Customer Retention Strategies for 2024Leading Customer Retention Strategies for 2024
Leading Customer Retention Strategies for 2024
 
Why Digital Marketing Important for our Business.pdf
Why Digital Marketing Important for our Business.pdfWhy Digital Marketing Important for our Business.pdf
Why Digital Marketing Important for our Business.pdf
 
Influencer Marekting Trends- Where the creator economy is going in in 2024
Influencer Marekting Trends- Where the creator economy is going in in 2024Influencer Marekting Trends- Where the creator economy is going in in 2024
Influencer Marekting Trends- Where the creator economy is going in in 2024
 
The Future Normal - DIGGIT - Henry Coutinho-Mason.pdf
The Future Normal - DIGGIT - Henry Coutinho-Mason.pdfThe Future Normal - DIGGIT - Henry Coutinho-Mason.pdf
The Future Normal - DIGGIT - Henry Coutinho-Mason.pdf
 
Top 10 Recommended Fragrances for Father's Day
Top 10 Recommended Fragrances for Father's DayTop 10 Recommended Fragrances for Father's Day
Top 10 Recommended Fragrances for Father's Day
 
The BoF Brand Magic Index Volume Two — Preview.pdf
The BoF Brand Magic Index Volume Two — Preview.pdfThe BoF Brand Magic Index Volume Two — Preview.pdf
The BoF Brand Magic Index Volume Two — Preview.pdf
 
Marketing Automation Insights - Unlocking Success
Marketing Automation Insights - Unlocking SuccessMarketing Automation Insights - Unlocking Success
Marketing Automation Insights - Unlocking Success
 
Best Digital Expert Corporation of India
Best Digital Expert Corporation of IndiaBest Digital Expert Corporation of India
Best Digital Expert Corporation of India
 
ATRIUM GAMING : SLOT GACOR MUDAH MENANG TERBARU
ATRIUM GAMING : SLOT GACOR MUDAH MENANG TERBARUATRIUM GAMING : SLOT GACOR MUDAH MENANG TERBARU
ATRIUM GAMING : SLOT GACOR MUDAH MENANG TERBARU
 
Personal Brand Exploration Selk_Ingrid_DMBS_PB1_2024-01.pptx
Personal Brand Exploration Selk_Ingrid_DMBS_PB1_2024-01.pptxPersonal Brand Exploration Selk_Ingrid_DMBS_PB1_2024-01.pptx
Personal Brand Exploration Selk_Ingrid_DMBS_PB1_2024-01.pptx
 
Klaus Schweighofer, Zakaj je digitalizacija odlična priložnost za medije, Sty...
Klaus Schweighofer, Zakaj je digitalizacija odlična priložnost za medije, Sty...Klaus Schweighofer, Zakaj je digitalizacija odlična priložnost za medije, Sty...
Klaus Schweighofer, Zakaj je digitalizacija odlična priložnost za medije, Sty...
 

Sales organization structure

  • 1. Structures of sales organization Structure?
  • 2. Basic Types of Sales Organisations Sales organisations are generally classified into four basic types: • Line Organisation • Line and staff organisation • Functional organisation • Horizontal organisation We shall discuss main characteristics, advantages, and disadvantages of each type of sales organisation
  • 3. Line Organization Head Marketing Sales Manager Area Sales Manager1 Area Sales Manager3 Area Sales Manager2 Area Sales Manager4 salespeople salespeople salespeople salespeople
  • 4. Characteristics: All managers have line authority to direct and control subordinates. Used in small firms / departments Advantages: Simple organization, clear authority, quick decisions, low cost Disadvantages: No support to line managers from subordinates who have specialized knowledge / skills. Less time for planning / analysis
  • 5. Line and Staff Organization Head-Marketing Marketing Research Manager Sales Manager Promotional Manager Customer Service Manager Area Sales Manager-1 Area Sales Manager-1 Area Sales Manager-1 Salespeople Salespeople Salespeople
  • 6. Characteristics: Specialist staff managers are available for senior marketing / sales managers. Staff managers’ role is to assist / advise line managers. Used in medium and large size organizations Advantages: Better marketing decisions, superior sales performance Disadvantages: High cost and coordination, slower decision making, conflict may arise if staff managers’ role is not clear
  • 7. Functional Organization Head-Marketing Marketing Research Manager Promotional Manager Customer Service Manager Sales Manager Area Sales Manager #4 Salespeople
  • 8. Characteristics: Each functional specialist has line responsibility over salespeople. Used by a large firm with many products / market segments, minimizing line authority to functional managers Advantages: Qualified specialists guide sales force, simple to administer Disadvantage: confusion due to more managers giving orders to sales force
  • 9. Horizontal Organization Research & Design Team: •Customer Research •Product / Service Design Planning Team: •Strategic Planning •Accounts, Finance •HR, Administration •Chief Operation Officer Operations Team: •Production / Operations •Quality Assurance •Systems Engineering Customer Support Team: •Information •Service •Training Customer Satisfaction Team: •Sales & Marketing •Pricing, Promotion •Channels, Logistics
  • 10. Characteristics: Removes management levels & departmental boundaries. Except planning team, all others are members of cross- functional teams. Used by firms having partnering relationships with customers. Advantages: Reduction in supervision, unnecessary tasks, & cost; Improved efficiency and customer responses.
  • 11. Specialization within Sales Organization • Needed to increase effectiveness of sales force • Done by expanding basic sales organization • Basis of specialization • Geography • Type of product • Market • Combination of above • Criteria for selection – (1) nature of product, (2) sales force abilities, (3) demands of selling job, (4) customer and market facts
  • 12. Geographic Specialization Head-Marketing Marketing Research Manager General Sales Manager Promotion Manager Customer Service Manager Branch Sales Manager-1 Branch Sales Manager-2 Branch Sales Manager-3 Branch Sales Manager-4 Salespeople Salespeople Salespeople Salespeople
  • 13. Characteristics: salespeople, assigned geographic areas, are responsible for all selling activities to all customers within assigned areas. Branch sales managers adjust marketing plan to local needs Advantages: Better market coverage and customer service, more control over sales force, quick response to local conditions & competition Disadvantages: Limited specialization of marketing tasks. Hence, it is combined with product / market sales organization
  • 14. Product Specialization Head-Marketing Marketing Research Manager General Sales Manager Sales Training Manager Promotion Manager Area Sales Managers – Product Group ‘A’ Area Sales Managers – Product Group ‘B’ Salespeople – Product Gr. ‘A’ Salespeople – Product Gr. ‘B’ Fig. ‘x’ Sales Organisation with product specialised salesforce
  • 15. Advantage: Each product gets specialized attention from the salesforce Disadvantage: Sometimes, more salespeople contact the same customer, resulting in customer dissatisfaction and higher cost
  • 16. Market Specialization General Sales Manager Sales Manager- International- Markets Sales Manager- Commercial Sales Manager- Consumer Markets Sales Manager- Government Area Sales Mgrs International Sales Executives Area Sales Manager- Commercial Salespeople Area Sales Manager- Government Salespeople Area Sales Mgrs- Consumer Markets Salespeople
  • 17. • Characteristics: Desirable when customers are classified by type, user industry, or channel. Salespeople carry out all activities for all products only for specific customer groups • Advantages: Meets needs of specific customer groups, implements customer-centerd philosophy of the company • Disadvantages: Geographic duplication, high cost
  • 18. Combination Sales Organization Director – Sales & Marketing General Manager Sales - North General Manager Sales - East General Manager Sales - South General Manager Sales - West Regional Sales Mgr. – Govt. Regional Sales Mgr. - Dealers Regional Sales Mgr. - Commercial Salespeople Salespeople Salespeople
  • 19. • Characteristics: Many firms use some combination of specialisation organizations, called hybrid or combination sales organisation, with a view to minimize disadvantages and maximize advantages of specialization organizations
  • 20. Thanks for listening patiently An effort by: Vivek Gautam