Topic ~

Types of sales organisation

sturcture
PRESENTED BY
ARJUN SOORMA
DHRUV SAINI
SECTION B
 Different types of sales organisation sturcture -

 There are four main types of sales organizational structures:

1. Functional Structure
2. Geographic Structure
3. Market-Based Structure
4. Product Sales Force Structure
FUNCTIONAL STRUCTURE

 Function structure refers to  Advantages-

the sales organization 1. specialisation - departments focus on
structure that focuses on one area of work.
specialization within the 2. productivity - specialism means that
marketing team. staff are skilled in the tasks they do.

 For
 Disadvantages-
example- The company has
an HR department, a finance 1. It will lead to poor communication and
coordination across functional units.
department and a marketing
2. There will be lack of understanding
department.
across departments
 Geographic Structure

A geographical organisational  Advantages-

structure suits businesses that 1. The ability to better serve local needs and tailor
have offices or units in their approach to the local market. 
different regions or 2. The ability to encourage positive competition
geographical areas. between different departments.
 Daimler AG, for instance, has its
headquarters in Stuttgart,  Disadvantages-
Germany, and has manufacturing 1. the potential conflict between local and central
facilities in several European management
locations 2. potential duplication of jobs, resources and
functions.
 Market-Based Structure
 The market- based divisions
of an organization are based
around markets, industries,
or customer types. 
 For example a large clothing
store with different
departmental heads based on
customer sex (Male or Female)
 Advantages-
Can encourage healthy competition
1.
among departments.
2. Is flexible
 Disadvantages-
1. Department units focus on their own
goals instead of organisational goals.
2. Complicates coordination
 Product Sales Force Structure

 Advantages-
a sales force organization 1. Stronger coordination
in which salespeople
2. Stronger communication:
specialize in selling only a
portion of the company's  Disadvantages-
products or lines
1. Being difficult to scale
 Forexample- Kodak has 2. Duplicating functions and resources,
separate sales forces for its
industrial and film products.
The end!