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    Organization of The Sales Force

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    Arsalan Ali
    The document discusses the organization of sales forces. It covers key topics such as the tasks of sales organizations to maintain order and goals, assign responsibilities, and integrate with other departments. The structure of sales organizations divides activities into tasks and coordinates them. Managers must consider formal/informal organization, horizontal/vertical structure, centralized/decentralized models, and line/staff roles. Larger companies tend to have more formal structures. Common bases for sales organization are geography, customers, and products. Relationships with other departments like marketing, R&D, HR, accounting are also important. Emerging trends include telemarketing, national account management, and indirect sales channels.

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    Organization of The Sales Force

    Uploaded by

    Arsalan Ali
    92 views23 pages
    The document discusses the organization of sales forces. It covers key topics such as the tasks of sales organizations to maintain order and goals, assign responsibilities, and integrate with other departments. The structure of sales organizations divides activities into tasks and coordinates them. Managers must consider formal/informal organization, horizontal/vertical structure, centralized/decentralized models, and line/staff roles. Larger companies tend to have more formal structures. Common bases for sales organization are geography, customers, and products. Relationships with other departments like marketing, R&D, HR, accounting are also important. Emerging trends include telemarketing, national account management, and indirect sales channels.

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    Organization of the Sales Force

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    The document discusses the organization of sales forces. It covers key topics such as the tasks of sales organizations to maintain order and goals, assign responsibilities, and integrate with other departments. The structure of sales organizations divides activities into tasks and coordinates them. Managers must consider formal/informal organization, horizontal/vertical structure, centralized/decentralized models, and line/staff roles. Larger companies tend to have more formal structures. Common bases for sales organization are geography, customers, and products. Relationships with other departments like marketing, R&D, HR, accounting are also important. Emerging trends include telemarketing, national account management, and indirect sales channels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    92 views23 pages

    Organization of The Sales Force

    Uploaded by

    Arsalan Ali
    The document discusses the organization of sales forces. It covers key topics such as the tasks of sales organizations to maintain order and goals, assign responsibilities, and integrate with other departments. The structure of sales organizations divides activities into tasks and coordinates them. Managers must consider formal/informal organization, horizontal/vertical structure, centralized/decentralized models, and line/staff roles. Larger companies tend to have more formal structures. Common bases for sales organization are geography, customers, and products. Relationships with other departments like marketing, R&D, HR, accounting are also important. Emerging trends include telemarketing, national account management, and indirect sales channels.

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    ORGANIZATION OF THE SALES FORCE

    ORGANIZATION
    Organization is the basic management

    function of arranging the firms work activities.


    It is performed by all managers regardless of

    their other responsibilities.

    Tasks Of The Sales Organization


    To reflect stronger commitment to their

    customers, three basic tasks must be accomplished by organization: 1. Maintenance of order in achieving sales force goals and objectives. 2. Assignment of specific tasks and responsibilities. 3. Integration and coordination with other elements of the firm.

    STRUCTURE
    Structure involves the way in which an

    organization divides its activities into distinct tasks and then achieves coordination among them.
    Organization structure also permits the assignment of specific tasks to a position whose incumbent is then charged with responsibility for accomplishing them.

    Developing a Sales Organization


    Developing an organization structure is not an

    easy task. Sales managers must recognize and then deal with:
    1. Formal and informal organization 2. Horizontal and vertical organization 3. Centralized and decentralized organizational structures 4. The line and staff components of organization 5. The size of the company

    Formal & Informal Organization


    Formal organization is the management

    created relationships between departments and between individuals. Informal organization is basically a communications pattern formed from the social relationships existing within the formal organization. Grapevine is another name for informal organization communications pattern.

    Horizontal & Vertical Organization


    Vertical sales organization: Organization

    that has several levels of management all upward to the next level.
    Horizontal sales organization: Organization

    in which the number of management levels is small and the number of managers at any particular level is large.

    Centralized & Decentralized Organizations


    Centralized sales organization:

    Organizations in which responsibility and authority are concentrated at higher levels of management. Decentralized sales organization: Organizations in which responsibility and authority are delegated to lower levels of management.

    Line and Staff Components


    Line function is a primary organization

    activity. For example, in marketing organization a selling function is a line component. Staff function is a supporting organizational activity. For example, in marketing organizataion advertising, marketing research, marketing planning etc are staff roles.

    Company Size & Organization


    Size of company is a major factor influencing

    its organizational structure. For small company, there is likely to be no formal organizational structure. For a large company, as each functional area becomes larger, the functional organization is extended. (Functional organizations whose format are based on formal activities)

    Basic Types of Sales Organization


    Most company sales forces are organized on

    the basis of geography, customers, or products or some combinations of these factors.


    Each of these bases has positive and negative features.

    Geographic Specialization
    Sales organization in which selling personnel

    are given the responsibility for direct selling activities in a given geographical area.
    Sales representatives are responsible for

    selling the firms full line of products.

    Customer Specialization
    Sales organizations in which selling personnel

    are organized by particular customers or industries.


    IBM is an example of a company that uses

    specialized sales forces for different classes of customers.

    Product Specialization
    Sales organizations in which selling personnel

    concentrate their efforts on particular product lines, brands or individual items.


    Manufacturer representatives are

    independent commercial sales agents who sell for several manufacturers of non competing products.

    Combination Organizations
    Due to rapidly changing high growth market

    many high-tech companies are attempting to develop new organization strategies. These new combination organizations can be categorized as: 1. Market, product and function 2. Decentralized staff and line personnel 3. Complex staff-line relationships 4. Overlaid organizational mechanism

    Relations With Other Departments


    There are two types of departments with

    which sales must have good working relationships. 1. Those connected with other marketing activities advertising, marketing research, sales promotion etc 2. Those with nonmarketing functions such as human resources, manufacturing and finance.

    Relationships with Other Marketing Functions


    Marketing mix is the combination of various

    techniques used to satisfy customers needs.


    These relations between sales and

    advertising are of special concern.


    Flow of information is another vital part of

    the sales departments relations with other marketing functions.

    Relations with Non-Marketing Departments


    R&D: To perform basic research and engineering activities needed to develop new products and improve existing ones.
    Account control concept: in which the

    authority and responsibility for handling the account rests with field sales management. This concept was formulated to tackle the problems faced by high-tech companies.

    Relations with Non-Marketing Departments


    HR: Today role of HR can not be understated.

    Relations with HR is of crucial importance as sales managers are required to seek advices from HR for guidance on sales force hiring. Accounting and finance: Three major areas of cooperation between sales, accounting and finance are budgeting, cost control and credit. Accounting personnel helps sales people in many ways like for selling cost analyses.

    Major Trends in Sales Organizations


    There are three major organizational trends

    that directly influence sales management in terms of both people and structure:
    1. Telemarketing 2. National account management 3. Indirect sales channel

    Telemarketing
    Telemarketing refers to the use of telecommunications technology in personal selling.
    Inbound telemarketing is in which potential

    customers contact the selling company. Outbound telemarketing is in which the selling company contacts prospects and customers.

    National Account Management


    Special sales forces dedicated to obtaining

    and/or maintaining large accounts.


    To meet the unique demands of national

    accounts, a national account manager is responsible for coordinating the effort of a sales and support team to serve their needs.

    Indirect Sales Channel


    Independent sales representatives or

    agencies used by a company in place of its own field sales force. It has some disadvantages like about the control over the selling process. Independent agents follow their own rules about what to sell, how to sell, etc.

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