31373871 Sales ion Structure

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Sales OrganisationStructure



Sales organization

An organization of individuals either

working together for the marketing

of products and services

manufactured by an enterprise or forproducts that are procured by the

firm for the purpose of reselling

A sales organization defines duties,

roles, rights, and responsibilities of

sales people engaged in selling

activities meant for the effective

execution of the sales function



F actors influencing structure

Product and service related factors

Organization related factors

Marketing mix related factors

External factors:

the speed of market change

reduction in the number of vendors per

buyer closer to customer relationships

changes in regulations and international

practices



C entralization vs

Decentralization Centralization

the degree to which decision making is

concentrated at a single point in the

organization top-level managers make decisions with little

input from subordinates in a centralized

organization

Decentralization the degree to which decisions are made by

lower level employees

distinct trend toward decentralized decision

making



T all & F lat Organization

Structures Flat structures

R educes the levels of management.

Widens span of control of

management at various levels of

organisation.

More decentralized with regard to

decision-making



Span of C ontrol vs. Management Levels

National

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager



T all & F lat Organization

Structures T all structures

- Have many levels of authorityrelative to the organization¶s size.

- As levels in the hierarchy increase,communication gets difficult.

- The extra levels result in moretime being taken to implement

decisions.- Narrow span of control

- More centralized decision making



Span of C ontrol vs. Management Levels

National Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager

Regional Sales

Manager

Regional Sales

Manager



PRINCIPLES OF STRUCTURING A SALES

ORGANIZATION

Specialization ± The division of labor on the basis of

which a particular type(or set) of activity is differentiated

from another. Jobs are assigned to individuals on the basis

of their specialization.

Departmentalization ± I t involves integration of differentiated (or specialized) activities and grouping of

individuals into departments and divisions.

Standardization ± I t refers to the existence of procedures

and system, which helps integrate the entire organization.

F ormalization ± I t refers to the extent to which all procedures, system and policies are written, so that

organization becomes independent of the person who

founded it and acquires a life span substantially longer than

any one individual.



*Centralization It refers to the level at whichauthority for decision-making is concentrated. It

involves designing formal reporting relationship and

information system, leading to hierarchical levels of

spans of control.

*Evaluation- It refers to providing system for appraisal

for compensation.

*Structure- It refers to the total configuration or

arrangement of individuals, departments, reporting

relationships, information flows, span of control, all of

which give organization its specific shape.



B asic Ty pes of Sales Organisation

Structure Organization by Function.

Organization by Product.

Organization by Customer Group.

Organization by Regions.



Sales Manager

Assistant Sales Manager

Product A

Sales Representative


Product B


Product C



Sales Head

SalesManager

Industry II

Sales Manager

Industry I

Sales Representatives

SalesManager

Industry III



Manager Advertising

Sales Department

Manager Sales

North Zone East Zone West Zone South Zone

Sales Officer I

Sales Officers

Sales Officer II Sales Officer III



RELATIONSHIP OF SALES DEPARTMENT WITH

OTHER DEPARTMENTS

Sales & Information Technology Relationship.

Sales & Marketing Relationship.

Sales & Credit Department.



Sales & Information Technology

Relationship There is a growing need to collect a huge

amount of customer data and build models to

forecast the likely behavior of customers.

Organization are adopting technology and

integrating their business across the enterprise

so that all departments are aware about thechanging need patterns of the customers.



Sales & Marketing Relationship

Marketing plays a very important part in sales.

If the marketing department generate a

potential customers list, it can be beneficial

for sales.

The marketing departments goal is to bring

people to the sales team using promotional

techniques such as sales promotion, publicity,

and public relations.



Sales & Credit Department

Sales personnel should be provided with the

necessary training to help them understand

and appreciate the role of the credit within

the organization, and the risks involved in

granting credit and collecting debts.

31373871 Sales ion Structure

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