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Structures of sales organization
Structure?
Basic Types of Sales
Organisations
Sales organisations are generally classified into
four basic types:
• Line Organisation...
Line Organization
Head
Marketing
Sales
Manager
Area Sales
Manager1
Area Sales
Manager3
Area Sales
Manager2
Area Sales
Mana...
Characteristics: All managers have line authority to direct and
control subordinates. Used in small firms / departments
Ad...
Line and Staff Organization
Head-Marketing
Marketing Research
Manager
Sales Manager
Promotional
Manager
Customer Service
M...
Characteristics: Specialist staff managers are available for senior
marketing / sales managers. Staff managers’ role is to...
Functional Organization
Head-Marketing
Marketing Research
Manager
Promotional
Manager
Customer Service
Manager
Sales Manag...
Characteristics: Each functional specialist has line responsibility over
salespeople. Used by a large firm with many produ...
Horizontal Organization
Research & Design Team:
•Customer Research
•Product / Service Design
Planning Team:
•Strategic Pla...
Characteristics: Removes management levels & departmental
boundaries. Except planning team, all others are members of cros...
Specialization within Sales Organization
• Needed to increase effectiveness of sales force
• Done by expanding basic sales...
Geographic Specialization
Head-Marketing
Marketing Research
Manager
General Sales
Manager Promotion
Manager
Customer Servi...
Characteristics: salespeople, assigned geographic areas, are responsible
for all selling activities to all customers withi...
Product Specialization
Head-Marketing
Marketing Research
Manager
General
Sales Manager
Sales Training
Manager
Promotion
Ma...
Advantage: Each product gets specialized attention from the salesforce
Disadvantage: Sometimes, more salespeople contact t...
Market Specialization
General Sales
Manager
Sales Manager-
International-
Markets
Sales Manager-
Commercial
Sales Manager-...
• Characteristics: Desirable when customers are classified by type, user
industry, or channel. Salespeople carry out all a...
Combination Sales Organization
Director – Sales
& Marketing
General Manager
Sales - North
General Manager
Sales - East
Gen...
• Characteristics: Many firms use some combination of specialisation
organizations, called hybrid or combination sales org...
Thanks for listening
patiently
An effort by: Vivek Gautam
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Sales organization structure

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sales organization structures

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Sales organization structure

  1. 1. Structures of sales organization Structure?
  2. 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. 3. Line Organization Head Marketing Sales Manager Area Sales Manager1 Area Sales Manager3 Area Sales Manager2 Area Sales Manager4 salespeople salespeople salespeople salespeople
  4. 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. 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. 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. 7. Functional Organization Head-Marketing Marketing Research Manager Promotional Manager Customer Service Manager Sales Manager Area Sales Manager #4 Salespeople
  8. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 20. Thanks for listening patiently An effort by: Vivek Gautam

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