The document discusses various sales management structures and organizations. It describes line, line and staff, functional, horizontal, and specialized (geographical, product, market) organizational structures. Specialized structures can be combined to form hybrid structures. The key aspects of each structure are outlined, including their advantages and disadvantages. Overall, the document provides an overview of different approaches to organizing sales management functions within a company.

1. By: Priyanka Roy
Asst. Prof.
MIT

2.  Planning, direction and control of
personal selling including recruiting,
selecting, training, equipping, assigning,
supervising, compensating and
motivating as these tasks apply to the
personal sales force.
 The only business function that
generates revenue.

3.  Management of the personal selling task.
 Selling is an exchange transaction. Exchange
of Product or service for money
 Money is the revenue or the earnings of an
enterprise often called ‘turnover’ or ‘top line’
 Sales therefore is the only revenue generating
function in an enterprise.

4.  3 general underlying objectives:
1. SALES VOLUME
2. PROFITS
3. GROWTH
Sales – cost of sales = gross margin.
Gross margin – expenses =net profit.

5.  Industrial Revolution – 1760
 Small home industries – Large scale
manufacturing –marketing – sales and
sales support
 The modern day sales manager is
both an administrator in-charge of
personal selling activity and a member
of the group that makes marketing
decisions of all types.

6. “QUALITIES THAT LEAD TO EFFECTIVE SALES MANAGEMENT
ARE OFTEN OPPOSITE THE ATTRIBUTES OF A SUCCESSFUL
SALES PERSON”

7.  With various tasks required to be performed
the enterprise had to create a structure to
ensure that work is done.
 Principles of structure: authority,
responsibility, performance, support/co-
ordinate.

8.  Concept of organization: Group of individuals
working jointly to achieve a defined goal and
bearing formal and informal relations with
one another. An organization is oriented
towards and a co-operative endeavor and a
structure of human relationships.

9.  Eliminate waste of effort
 Minimize friction
 Maximize co-operation
 Permit development of specialists
 Ensure that all activities get done
 Achieve co-ordination/balance
 Define authority
 Fix responsibility

10.  Line organization: line managers perform
sales and sales management activities.
 Line and staff organization: Staff managers
have advisory or support responsibility. e.g.
Market research manager, Training manager.
They are not directly responsible for
achieving sales targets.

11. Characteristics: All managers have line authority to direct and
control subordinates. Used in small firms / departments
Advantages: Simple organisation, clear authority, quick decisions,
low cost
Disadvantages: No support to line managers from subordinates
who have specialised knowledge / skills. Less time for planning /
analysis
Head
Marketing
Sales
Manager
Area Sales
Manager1
Area Sales
Manager3
Area Sales
Manager2
Area Sales
Manager4
salespeople salespeople salespeople salespeople

12. 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 organisations
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
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

13.  Functional organization: focus is on the
principle of specialization. Each specialist has
a functional responsibility and are permitted
to direct and control the salesperson thru
their immediate superior.

14. Characteristics: Each functional specialist has line responsibility over
salespeople. Used by a large firm with many products / market
segments, minimising line authority to functional managers
Advantages: Qualified specialists guide salesforce, simple to
administer
Disadvantage: confusion due to more managers giving orders to
salesforce
Head-Marketing
Marketing Research
Manager
Promotional
Manager
Customer Service
Manager
Sales Manager
Area Sales Manager #4
Salespeople

15.  Horizontal structure.
 Specialised structure:
Geographical;
Product;
Market or customer;
Combination of specialised structures.

16.  Should sales manager be reporting to
marketing manager?
 Should sales be an independent function?

17. 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.
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

18. 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 salesforce, quick response to local conditions & competition
Disadvantages: Limited specialisation of marketing tasks. Hence, it is
combined with product / market sales organisation
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

19.  Used when the company has many products and / or
brands
 Two types of product specialisation
(x). Sales organisation with product specialised salesforce
(y). Sales organisation with product managers as staff specialists
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

20. In fig. ‘x’: Characteristics: Salespeople in each product group sell only the
products in that group
Advantage: Each product gets specialised attention from the salesforce
Disadvantage: Sometimes, more salespeople contact the same customer,
resulting in customer dissatisfaction and higher cost
In fig. ‘y’: Characteristics: Each product manager plans and implements
marketing plan, for a product group
Advantage: Corrects the problem of duplication calls on a customer by
salespeople
Disadvantage: Lack of product specialisation by salespeople
Head-Marketing
Marketing Research
Manager
Promotion
Manager
Product Manager
Product Gr. ‘B’
Product Manager
Product Gr. ‘A’
General
Sales Manager
Area Sales
Managers
Salespeople
Product Specialisation (Continued)

21.  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-centred philosophy of the company
 Disadvantages: Geographic duplication, high cost
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

22.  Characteristics: Many firms use some combination of
specialisation organisations, called hybrid or combination
sales organisation, with a view to minimise disadvantages and
maximise advantages of specialisation organisations
 Figure above shows combination of geographic and market
specialisations
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