Sales Organizaton Best

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Sales Organization

Girish Mude

MIT School of Management, Pune

Girish Mude MITSOM, Pune



Sales Organization




Meaning of Sales Management

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.




Purpose

To permit the development of specialist

To ensure all activities are performed

To achieve coordination or balance To define authority

To economize on executive time




Roles of a sales organization

Achieve company objectives

Streamline reporting relationships

Facilitate effective coordination and control Develop an efficient sales force structure to

ensure effective selling strategy.

Designing the sales organization plays a crucialrole in a company's overall success.




Needs for Organization

Developing customer-centric organizations,

Building strong relationships within and

outside the organization, Modifying the traditional top-down

hierarchical structure and

Introducing cross-functional teams are somesteps companies are taking to improve their

efficiency and profitability.




Influence of external and internal

factors External factors include

± Markets targeted

± Technology prevailing in the target market

Internal factors

± Company objectives,

± Size of the sales force,

± Core competence of the company,

± Compensation system,

± Reporting relationships, etc.




Functions of Sales Manager

Planner

Recruiter

Leader Controller

Market analyst

Sales forecaster

Budget manager

Communicator




Responsibilities of Sales Manager

Responsibility of hiring

Training and coaching

Motivating

Setting targets for sales people

Tracking the results

Providing leads and sales support

Organizing the sales effort

Conducting sales meetings

Recognizing and Rewarding Performance

Allocate resourcesGirish Mude MITSOM, Pune



Sales Organization Concepts

SpecializationThe degree to which individuals perform some of the required

tasks to the exclusion of others. Individuals can become

experts on certain tasks, leading to better performance for the

entire organization.

Centralization

The degree two which important decisions and tasks performed

at higher levels in the management hierarchy. Centralized

structures place authority and responsibility at higher

management levels.




Sales Force Specialization Continuum

Some specialization

of selling activities,

products, and/or

customers

All selling activities

and all products to

all customers

GeneralistsGeneralistsCertain selling

activities for certain

products for certaincustomers

SpecialistsSpecialists




Functional organisation

Figure 21.6(a)Girish Mude MITSOM, Pune



Product organisation

Figure 21.6(b)Girish Mude MITSOM, Pune



Regional organisation

Figure 21.6(c)Girish Mude MITSOM, Pune



Matrix organisation

Figure 21.6(d)Girish Mude MITSOM, Pune



Geographic Sales Organization

National Sales Manager

Zone Sales Managers (4) Zone Sales Managers (4)

District Sales Managers (20)

Salespeople (100) Salespeople (100)


Eastern Region Sales Manager Western Region Sales Manager

Sales Training Manager



Product Sales Organization


Office Equipment Sales Manager Office Supplies Sales Manager


Salespeople (100) Salespeople (100)




Market Sales Organization


Zone Sales Managers (4)


Salespeople (150)


Commercial Accounts

Sales Manager

Government Accounts

Sales Manager

Sales Training

Manager

Salespeople (50)



Functional Sales Organization


Field Sales Manager Telemarketing Sales Manager

Regional Sales Managers (4)

Salespeople (160)

Salespeople (40)





Comparison of Sales Organization Structures


Organizational

Structure Advantages Disadvantages

Geographic

Low Cost

No geographic duplication No customer duplication

Fewer management levels

Limited specialization

Lack of management

control over product or

customer emphasis

Product Salespeople become expertsin product attr. & applications

Management control over

selling effort

High cost Geographic duplication

Customer duplication






Organizational

Structure Advantages Disadvantages

Market

Salespeople develop

better understanding of

unique customer needs

Management control over

selling allocated to different

markets

High cost

Geographic duplication

Functional Efficiency in performing

selling activities

Geographic duplication Customer duplication

Need for coordination




Hybrid Sales Organization Structure


Major Accounts

Sales Manager

Regular Accounts

Sales Manager

Office Equipment

Sales Manager

Office Supplies

Sales Manager

Field Sales

Manager

Telemarketing

Sales Manager

Commercial Accounts

Sales Manager

Government Accounts

Sales Manager

Western

Sales Manager

Eastern

Sales Manager



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Sales Organizaton Best