Sales Organisation Structure

Sales organization
An organization of individuals either working together for the marketing of products and services manufactured by an enterprise or for products 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

Factors 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

Centralization 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

Tall & Flat Organization Structures

Flat structures
 Reduces the levels of management.  Widens span of control of management at various levels of organisation.  More decentralized with regard to decision-making

Span of Control vs. Management Levels

National Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

Tall & Flat Organization Structures

Tall 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

Span of Control vs. Management Levels

National Sales Manager

Regional Sales Manager

Regional Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District 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 It involves integration of differentiated (or specialized) activities and grouping of individuals into departments and divisions. Standardization It refers to the existence of procedures and system, which helps integrate the entire organization. Formalization It 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 which authority 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 .

Basic Types of Sales Organisation Structure

 Organization by Function.  Organization by Product.  Organization by Customer Group.  Organization by Regions.

Sales Manager
Assistant Sales Manager

Sales Executive I

Sales Executive II

Sales Executive III

Sales Officers

Sales Officers

Sales Officers

Sales Representative

Sales Manager

Assistant Sales Manager Product A

Assistant Sales Manager Product B

Assistant Sales Manager Product C

Sales Representative

Sales Head Sales

Sales Manager Industry I Manager Industry II

Sales
Manager Industry III

Sales Representatives

Sales Department

Manager Sales

Manager Advertising

North Zone

East Zone

West Zone

South Zone

Sales Officer I

Sales Officer II Sales Officers

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 the changing 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 department s 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.