SALES ORGANIZATION & RELATIONSHIP

Unit-2

SALES ORGANIZATION

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.

SALES ORGANIZATION

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.

PURPOSE OF ORGANIZATION

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

SETTING UP SALES ORGANISATION

Defining the objectives. Delineating the necessary activities. Grouping activities into “jobs” or

“positions”. Assigning personnel to positions. Providing for coordination and control.

TYPES OF ORGANIZATION STRUCTURES 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.

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.

ORGANIZATION STRUCTURE Horizontal structure. Specialized structure: Geographical; Product; Market or customer; Combination of specialized

structures.

Clear authority & ResponsibilityQuick response & Decision, Low CostWeak on marketing inputsSales manager controlled

Area Sales Mgr

Area Sales Mgr Area Sales Mgr Area Sales

Mgr

Sales Force Sales Force Sales Force Sales Force

Sales Manager

Head –Marketing

LINE SALES ORGANIZATION STRUCTURE

Sales Manager

Head –Marketing

Area Sales Mgr

Sales Manager

Head –Marketing

General Sales Manager

Marketing Research Manager

Advertising manager

Vice-President in charge of Marketing

President

Sales Promotion Manager

Director to dealer & Distributor Relations

Assistant to General Sales Manager

Assistant General Sales Manager

Sales personnel directing

Director of sales training

District Sales ManagerBranch Sales Manager

Sales Personnel(400)

LINE & STAFF SALES ORGANIZATION STRUCTURE

FUNCTIONAL SALES ORGANIZATION

Head -Marketing

Marketing Services Sales Promotion

BrandMarket

Research

Area Sales Managers

Sales Force

11

Research & Design team

Customer ResearchProduct / Service

design

Operations teamProduction

QAEngineering Systems

Customer Support teamServiceTraining

Information

Customer Satisfaction Ateams

Sales & MarketingPricing & Promotion

ChannelsLogistics

Planning TeamStrategyFinance

HR

SALES DEPARTMENT EXTERNAL RELATIONS Final buyer relations Industry relations Government relations Educational relations Press relations

DISTRIBUTIVE NETWORK RELATIONS It is the system of intermediaries between the

producer of goods and/or services and the final users.

Distributive outlets are customers for the products, and collectively they bear the responsibility for making the “payoff” sales to final buyers.

The distributive outlets handling the product, or assisting in its sales, are extensions of the manufacturer’s sales organisation.

-------- Seller ------ --Distribution Function--- --Buyer--

Supplier >>

Manufacturer >>

Distributor >>

Retailer >>Customer

METHODS OF MANUFACTURER’S DISTRIBUTIVE NETWORK COOPERATION

Building distributive network loyalty to the manufacturer.

Appraisal of the manufacturer’s policies and their implementation.

Analysis of communication system Stimulating distribution outlets to greater selling

efforts Changing policies Sharing promotional risk with dealers Using forcing methods Incentives to the distributive outlets Incentives to the distributive outlets’ sales

personnel Incentives to ultimate consumers.

DEVELOPING MANAGERIAL EFFICIENCY IN DISTRIBUTIVE ORGANIZATION Dealer training programs Assistance in sales force management Advise and assistance in general

management problems Shelf-allocation programs(self service) Missionary sales personnel(a

manufacturer's representative) Identifying source of supply at final

buyer level. Local advertising Point of purchase identification(retail

store)

ORGANIZING & COORDINATING FUNCTION What do they co-ordinate ?h Co-ordinate different order getting methodsh Cross objectives of different channelsh Co ordinate with other Marketing activitiesh Co ordinate personal Selling with Advertising and Sales Promotionh Sales to capitalize on Advertising How do they co ordinate ?• Co ordination by participate methodh Advertising and Sales promotion an arial support.h What done best by Personal Selling and Advertising

is decided

COORDINATION WITH DISTRIBUTION NETWORK (In Case Of Dealer Network Management) Create middlemen (dealers) Persuade them to stock Create market pull for them to stock Co ordinate between company and dealer

for Promotional work Establish dealer identity among end users Protect the interest of the company and the

dealer Share promotional Cost and Risk with

dealer

THANK YOU !!