Professional Documents
Culture Documents
Sales Organogram
Salesperson A
Salesperson B
Salesperson C
Salesperson
Salesperson
Salesperson
Line Organizations
Characteristics
Authority/responsibility for planning/implementing sales activities lie in hands of sales manager. Each person has only one boss.
Line Organizations
Advantages Very simple to understand and use. Easy to trace accountability. Relatively inexpensive (only a few highly-paid executives are necessary) Quick action possible since decision-making is in hands of relatively few people.
Line Organizations
Disadvantages As organization size increases, problems become more complex. Specialized skills often needed. Many sales managers cannot keep on top of all functions that relate to sales. Lack of trained replacements.
Line Organizations
Implications Best used by small organizations where operations can be clearly divided into basic functions of sales, finance, and production.
Market Forecaster
Training Director
Salespeople
Salespeople
Salespeople
Functional Organizations
Characteristics Organization divided by function. Functional specialists have line authority. Salespeople report to multiple bosses. Advantages Specialist ensure their functions are carried out. Should improve performance in each functional area due to the specialization.
A Functional Organization
Sales Manager
Training Director
Salespeople
Salespeople
Salespeople
Functional Organizations
Disadvantages Breakdown in the unity of command due to conflicting orders Each salesperson is no longer accountable to only one boss Implications Typically used in large firms that feature numerous functions and that have the need for several specialists.
Advantages Allows salespeople to become proficient in their respective sales functions. Places special emphasis on searching out and selling new accounts.
W e s te rn R e g io n S a le s M a n a g e r
C e n tra l R e g io n S a le s M a n a g e r
E a s te rn R e g io n S a le s M a n a g e r
D a lla s D iv is io n S a le s M a n a g e r
C h ic a g o D iv is io n S a le s M a n a g e r
N e w Y o rk D iv is io n S a le s M a n a g e r
S a le s p e o p le
S a le s p e o p le
S a le s p e o p le
Organizing by Products
Characteristics Sales force is reorganized on a product basis Salespeople specialize in particular products carried by the sales organization
Advertising Manager
Product A Salespeople
Product B Salespeople
Organizing by Products
Advantages Each product line receives a higher degree of specialized attention Allows for decentralization of both authority & responsibility for each product line Allows decisions to be made closer to the problems with any particular product line
Organizing by Products
Disadvantages
If specialization occurs above salesperson level, additional overhead expense may be suffered. More than 1 salesperson may be calling on customers Difficult to maintain a consistent image
Organizing by Products
Implications Best used if product line is relatively heterogeneous Best used if have a wide variety of customers with quite different needs Best used if products are technically complex Broad, in-depth knowledge of product essential for the sales task
Organizing by Customers
Characteristics
Sales force is reorganized on a customer basis Salespeople specialize in selling to/ servicing particular customer types
Organizing by Customers
Advantages Most consumer oriented approach Organization of sales force is based on customer needs Control remains at the management level (which customers to call on, etc) Allows salespeople to specialize in customer needs
Organizing by Customers
Disadvantages Potential for overlapping territories is high Hence, overhead costs may rise Salespeople must become knowledgeable about companys entire line of products
Organizing by Customers
Implications Customers in a given market buy several different products/lines from single supplier Same buying factors apply across product lines Significant proportion of income is derived from a small number of accounts who require high service levels