Sales Organisation.ppt
- 2. The Sales Organization 2 Objectives Role of a Sales Organization Basis for Designing a Sales Organization Types of Organizations Types of Sales Force Structure Sales Culture
- 3. The Sales Organization 3 Role of a Sales Organization Permit development of specialists Achievement of company objectives Achieve coordination and balance Economize executive time
- 4. The Sales Organization 4 Basis for Designing a Sales Organization Mission and objectives of company Target market segment Core competence Organizational relationships Flexibility Organizational culture Size and type of sales force Terms of employment Staffing activity Compensation system Market orientation Technology Company size
- 5. The Sales Organization 5 Types of Organizations Formal and informal organizations Horizontal and vertical organization Centralized and decentralized organizations Line and staff organizations
- 6. The Sales Organization 6 Formal Organizations Advantages Clear-cut reporting system Easier evaluation of sales performance Structured and defined format to perform every task Clearly defined policies, procedures and hierarchy Disadvantages Extensive departmentalization Rigidity in reporting relationship Lesser personal contact between superiors and subordinates
- 7. The Sales Organization 7 Informal Organizations Advantages Allows informal groups within an organization including personnel from different departments allow proper interaction on various tasks Develop positive norms and values Disadvantages May not support the goals and objectives established by organization May lead to informal leaders having unhealthy control over group members
- 8. The Sales Organization 8 Vertical Organization Structure Traditional management structure Basis of control is authority More hierarchy levels Narrow span of control Advantages Work is first organized on basis of functions then on departments then on tasks Lesser possibility of information loss down the hierarchy Less chance of duplication of authority Disadvantages Many hierarchical levels - more additional staff Complicated communication objectives, policies and plans
- 9. The Sales Organization 9 Horizontal Organization Structure Chairman G.M. (Production) G.M (Marketing) G.M (R&D) Manager (Consumer products) Regional Manager (Consumer products) Chief manager (R&D) Manager (Auto Component) Regional Manager (Auto Components) Chief Manager (R&D) (Components)
- 10. The Sales Organization 10 Horizontal Organization Structure Advantages Less number of hierarchical levels Faster response to market changes Facilitates teamwork and collaboration Improve decision-making Disadvantages Loss of competitiveness Not suited for all operations Require investment to train employees
- 11. The Sales Organization 11 Line Organization Structure Advantages Less expensive Facilitates easier coordination of activities Helps in quick decision making Prevents conflicts Disadvantages Inappropriate decisions by manager may lack self perspective Inherent complexity
- 12. The Sales Organization 12 Line & Staff Structure Chairman G.M. (Production) G.M. (Finance) G.M. (Marketing) Manager (Market Research) Regional Manager (South) Regional Manager (North) Zonal Manager Sales Promotion) Manager (Advertising) Sales personnel Sales personnel Sales personnel Sales personnel
- 13. The Sales Organization 13 Line & Staff Structure Advantages Quality of Decisions Most suitable for organization having few products Disadvantages Conflict in objectives of life and staff personnel Lack of coordination
- 14. The Sales Organization 14 Types of Sales Force Structure Product-based sales force structure Geographic-based sales force structure Customer-based sales force structure Combination-based sales force structure
- 15. The Sales Organization 15 Product-based Sales Force Structure Chairman Deputy Director (New Device Evaluation) Deputy Director (Product Quality) Director (Toxicology) Director (Haematology Devices) Director (Microbiology Devices) Manager (sales) Sales Force
- 16. The Sales Organization 16 Geographic-based Sales Force Structure C.E.O. Americas Europe Asia Pacific Canada U.S.A. Latin America Western Europe Eastern Europe Scandinavia South Asia Far East Australia Sales Force Country Manager
- 17. The Sales Organization 17 Customer-based Sales Force Structure Vertical business units customer Horizontal competency units Regional Business units
- 18. The Sales Organization 18 Combination-based Sales Force Structure President Senior Vice President (Resource & Strategy) Director H.R. Vice President (Financial Service) Director (Planning) Director (Raw Material) Vice President (Chemicals) Vice President (Lubricants) Vice President (Fuels) G.M. (Distribution) G.M. (production) G.M. (production) G.M. (Distribution) G.M. (production) G.M. (Distribution)
- 19. The Sales Organization 19 Sales Culture Components Symbols Jargons Ceremonies Ritual and rites Role models Tales and stories Values & beliefs
- 20. The Sales Organization 20 Stages in Formation of Sales Culture in an Organization Organization takes steps To modify or create A better culture Symbols, tales and stories, Ceremonies, routine activities, role models, language, values And beliefs. The learnt culture Becomes a routine Behavior For a sales personnel These are Imbibed by Sales Personnel Meaning are Interpreted by sales Personnel. Interpretation are Evaluated By sales personnel
- 21. The Sales Organization 21 Role of Sales Culture in Developing a Sound Sales Organization The success of sales culture depends on Strength of sales culture Direction or fit of sales culture
- 22. The Sales Organization 22 Summary Role of a Sales Organization Basis for Designing a Sales Organization Types of Organizations Types of Sales Force Structure Sales Culture
- 23. Thank you