Chapter 7

The Sales Organisation

Sales and Distribution
Management

Sales Organisation

Sales organisation
g
is a g
group of individuals
striving jointly to reach qualitative &
quantitative objectives,
q
j
, and bearing
g informal
and formal relations to one another.
The

sales organisation is not an end in itself

but rather the vehicle by which individuals
achieve given ends.
Sales and Distribution
Management

Purpose
p
Of Sales Organisation:
g

To permit the development of specialists

To assure that all necessary activities are
performed
To achieve coordination or balance
To define authority
To economize on executive time

Sales and Distribution

Management

Structure of sales organisation

Line sales organisation
2. Line and staff sales organisation
3. Functional
F
ti
l sales
l organisation
i ti
4. Committee sales organisation
1
1.

Sales and Distribution

Management

Line Sales organisation

General Manager

Sales
Manager

Asst sales
manager
Division 1

Asst sales
manager
Division 2

Sales people

Sales people

Asst sales
manager
Division 3

Sales people
Sales and Distribution
Management

Asst sales
manager
Division 4

Asst sales
manager
Division 5

Sales people

Sales people

Line sales organisation

The chain of command runs from the top

sales executive down through sub
ordinates.
ordinates
Each person is responsible only to one
person on the next higher level
level.
Line of authority run vertically through the
structure.
t t

Sales and Distribution

Management

 Advantage:

it is very simplest sales organisation

structure.
st
uctu e
Lines of authority & responsibility are clear
and logical
logical.
Less time require in making policy
changes in deciding new plans and in
changes,
covering plans into action.

Sales and Distribution

Management

 Limitation:

Line sales organisation is so much

depend upon department head.
Line sales organisation is an
inappropriate structure for growing
and large sales organisation
organisation.

Sales and Distribution

Management

Line-andLineand-Staff Sales
Organization
Chief Marketing Executive

Advertising
Manager

Marketing
Research
Manager
g

General
Sales
Manager

Sales
Promotion
Manager

Sales
Analysis
Manager

Salespeople
Li authority
Line
th it
Sales and Distribution
Management

Staff advisory authority

9

Line And Staff Sales Organisation

g

Line and staff sales organisation provides

th ttop sales
the
l executive
ti with
ith a group off
specialist--expert in dealer and distribution,
specialist
sales
l planning,
l
i
sales
l analysis
l i etc.
t

The activities is distributed among the staff

per their skill,, so that the top
p sales
as p
executive has more time for planning and
dealing
g with higher
g
p
priority
y matters.
Sales and Distribution
Management

10

 Advantages:

The advantage of line and staff sales

organisation is specialisation
specialisation.
Easily identification of problem.
Sales Executive can concentrate on
control and coco-ordination of subordinates.

Sales and Distribution

Management

11

Functional Sales Organization

Director of sales
Administration

Installation
& service
manager
g

Manager of
Sales
Training
g

Manager of
Sales
Supervision

Manager of
sales
promotion

Manager of
Dealer &
Distributor
R l ti
Relations

Salespeople

Sales and Distribution

Management

12

Functional Sales Organization

The functional sales organisation is based

on the principal of specialisation.
In the functional sales organisation
organisation, sales
people receive instruction from several
executive on different aspects of their
work.

Sales and Distribution

Management

13

 Advantages:

Efficiency in performing selling activities

Limitations:

Geographic duplication
Customer duplication
Need for coordination

Sales and Distribution

Management

14

Committee Sales Organisation

Organizing

the group for planning and

policy formulation.

The

implementation of policy and plan is

depend upon sales manager.

The

committee can be sales committee

committee,
customer relation, operations, personnel
etc.
Sales and Distribution
Management

15

Geographical Sales
Organization
Chief Marketing Executive

Advertising
Manager

Marketing
Research
Manager

General
Sales
Manager

Sales
Promotion
Manager

Western Regional
Sales Manager

Eastern Regional
Sales Manager

4 District
Sales Managers

4 District
Sales Managers

Salespeople each
with own territory

Salespeople each
with own territory

Sales and Distribution

Management

Sales
Analyst

16

 Advantages:

Low Cost
L
C t
No geographic duplication
No customer duplication
Fewer management levels
Limitation:

Limited specialization
Lack of management
control over product or
customer
t
emphasis
h i
Sales and Distribution
Management

17

Sales Organization Specialized by

T
Type
off Customer
C t
Chief Marketing Executive

Advertising
Manager

Marketing
Research
Manager

General
Sales
Manager

Sales
Promotion
Manager

Customer
Relations
Manager

Sales Manager
Transportation
Industry

Sales Manager
Steel Industry

Sales Manager
Petroleum Industry

Salespeople

Salespeople

Salespeople

Sales and Distribution

Management

18

Product Sales Organization

g
National Sales Manager

Office Equipment Sales Manager

Office Supplies Sales Manager

District Sales Managers (10)

District Sales Managers (10)

Salespeople (100)

Salespeople (100)

Sales and Distribution

Management

19

Hybrid sales organisation structure

National Sales Manager

Commercial Accounts
Sales Manager

Major Accounts
Sales Manager

Regular Accounts
Sales Manager

Field Sales
Manager

Western
Sales Manager

Government Accounts
Sales Manager

Office Equipment
Sales Manager

Office Supplies
Sales Manager

Telemarketing
Sales Manager

Eastern
Sales Manager

Sales and Distribution

Management

20