Gaurav Sharma 6360

7/29/2019 Gaurav Sharma 6360

1/22

SALES ORGANISATIONSTRUCTURE

Submitted byGaurav sharma

Roll No. 6360


2/22

SALESORGANIZATION

An organization of individuals either

working together for the marketing of

products and services manufactured

by an enterprise or for products thatare 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


3/22

FACTORSINFLUENCINGSTRUCTURE

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


4/22

TALL & FLAT ORGANIZATION

STRUCTURES

Flat structures

Reduces the levels of management.

Widens span of control ofmanagement at various levels of

organisation.

More decentralized with regard to

decision-making


5/22

SPANOF CONTROLVS. MANAGEMENT

LEVELS

National

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager

District

Sales

Manager


6/22

TALL & FLAT ORGANIZATIONSTRUCTURESTall structures- Have many levels of authority relative to the

organizations size.

- As levels in the hierarchy increase,

communication gets difficult.- The extra levels result in more time being taken

to implement decisions.

- Narrow span of control

- More centralized decision making


7/22

SPANOF CONTROLVS. MANAGEMENT LEVELSNational Sales

Manager

District

SalesManager

District

SalesManager

District

SalesManager

District

SalesManager

District

SalesManager

District

SalesManage

r

Regional Sales

Manager

Regional Sales

Manager


8/22

BASIC TYPESOF SALESORGANISATION STRUCTURE The grouping of activities into positions and the

charting of relationships of positions causes the

organization to take on structural form.

The most common structures are line & line and

staff. Functional organizational structures are rare.

Most sales department have hybrid

organizational structures, with variations to

adjust for personalities and to fit specific

operating conditions.


9/22

LINE SALES ORGANIZATION Lines of authority and instructions

are vertical, i.e. they flow from the

top to the bottom.

The unity of command is maintained

in a straight and unbroken line. It

implies that each subordinate

receives instructions from his

immediate superior alone and is

responsible to him only.


10/22

LINE SALES DEPARTMENT ORGANISATIONGeneralManager

Sales manager

AssistantSales manager

Division1

Salespeople


Division2

Salespeople


Division3

Salespeople


Division4

Salespeople


11/22

LINE & STAFF SALESORGANISATION Refers to a pattern in which staff specialists

advise managers to perform their duties.

Staff managers provide advice to the linemanager who are generally specialists in the

field.

Staff positions are purely advisory innature. They have a right to recommend buthave no authority to enforce theirpreference on other dept.

The line executives are the DOERS orcommanders, where as, the specialists arethe THINKERS or advisors.


12/22

LINE & STAFF SALES ORGANISATIONPresident

Vice president inCharge of marketing

Advertising Manager General Manager

Director ofSales

Training

SalesPersonnelDirector

AssistantGeneral

sales Man

Direct Sales

manager

Branch Salesmanager

SalesPersonnel

SalesPromotionManager

Directorofdealer andDistributorrelations

Manager of

MarketingResearch


13/22

FUNCTIONAL SALES ORGANIZATION Functional structure is created by

grouping the activities on the basis of

functions required for the

achievement of organizationalobjectives.

Authority relationships in functional

structure may be in the form of line,

staff & functional.


14/22

FUNCTIONAL SALES ORGANIZATIONNational Sales

Manager

Fields Salesmanager

Regional SalesManager (4)

District SalesManager (16)

Salespeople(160)

TelemarketingSales manager

District SalesManager (2)

Salespeople(40)


15/22

SCHEMESFOR DIVIDING LINE AUTHORITY INTHESALES ORGANISATIONTasks of line administration are subdivided amongthese new assistants in one of the 3 ways:-

By Products :divisions created according to thetype of product or service.

By Geographic area: divisions based on the areaof a country or world served.

By Market: divisions based on the types ofcustomers served.


16/22

CUSTOMERAND PRODUCT DETERMINANTSOF SALES FORCE SPECIALIZATION

Market-Driven

Specialization

Product/Market-Driven

Specialization

Geography-Driven

Specialization

Product-DrivenSpecialization

Complex

Range of

Products

Customer Needs Similar

Simple

Product

Offering

Customer Needs Different


17/22

PRODUCT SALES ORGANIZATION

VPMarketing

ProductManager

(A)

Manager(Sales)

Manager(Promotion)

Manager(Training)

ProductManager

(B)

Manager(Sales)

Manager(Promotion)

Manager(Training)


18/22

GEOGRAPHIC SALES ORGANIZATIONVP

Marketing

NationalSales

Manager

DivisionalManager

(East)

RegionalSales

Manager

DistrictSales

Manager

Sales Staff

(City wise)

DivisionalManager(West)

RegionalSales

Manager

DistrictSales

Manager

Sales Staff(City wise)

DivisionalManager(North)

RegionalSales

Manager

DistrictSales

Manager

Sales Staff(City wise)


19/22

MARKET SALES ORGANIZATION

President,

Marketing

ProductManager (A)

Manager(Sales)

Manager(Training)

Manager(Promotion)

ProductManager (B)

Manager(Sales)

Manager(Training)

Manager(Promotion)


20/22

HYBRID SALES ORGANIZATION STRUCTUREMany large organizations have

divisional structureswhere eachmanager can select the best structurefor that particular division. One division may use a functional structure,

one geographic, and so on.

This ability to break a largeorganization into many smaller ones

makes it much easier to manage.


21/22

HYBRID SALES ORGANIZATION STRUCTURENational

SalesManager

CommercialAccounts

SalesManager

MajorAccounts

SalesManager

RegularAccounts

SalesManager

Field SalesManager

WesternSales

Manager

EasternSales

Manager

Telemarketing SalesManager

GovernmentAccounts

SalesManager

OfficeEquipment

SalesManager

OfficeSupplies

SalesManager


22/22

Gaurav Sharma 6360

Documents

Transcript of Gaurav Sharma 6360