Sales Organisation

Topics: Management, Sales, Sales management Pages: 9 (828 words) Published: April 13, 2011
By: Vibhor Jain

Key Terms
Authority – the right to make decisions and carry out tasks Span of control – the number of people a superior is responsible for Chain of Command – the relationship between different levels of authority in the business Hierarchy – shows the line management in the business and who has specific responsibilities Delegation – authority to carry out actions passed from superior to subordinate Empowerment – giving responsibilities to people at all levels of the business to make decisions

Purpose of Sales Organization
Ideally organized sales department ◦ Eliminated duplication of effort ◦ Minimizes friction ◦ Maximizes cooperation Delegation of authority through ‘specialization’ Supervision becomes tough To achieve Coordination or Balance ◦ Avoiding technical nomenclatures ◦ Small, freely communicating groups

Sales Organization Concepts
The degree to which individuals perform some of the required tasks to the exclusion of others. Individuals can become experts on certain tasks, leading to better performance for the entire organization.

The degree two which important decisions and tasks performed at higher levels in the management hierarchy. Centralized structures place authority and responsibility at higher management levels.

Sales Force Specialization Continuum

All selling activities and all products to all customers

Some specialization of selling activities, products, and/or customers

Certain selling activities for certain products for certain customers

Purpose of Sales Organization
To define Authority
◦ Types of Authority
Line Authority carries power to require execution of orders by lower staff Staff Authority gives power to suggest Functional Authority enables specialists to enforce directives in a specific & limited field

◦ For smooth operations
Coordination Free flowing communication system

Line & Staff Authority
National Sales Manager Sales Training Manager Regional Sales Managers Sales Training Manager District Sales Managers Staff Position Salespeople Line Position

Setting up a Sales Organization
Defining the Objectives
◦ Long term by top-mgmt ◦ Quantitative & Qualitative (survival by sales/ profits/ growth)

Delineating the necessary activities Grouping activities into ‘jobs’ & ‘positions’ ◦ Identify crucial activities; creation of Dept. subdivisions

Setting up a Sales Organization
Assigning personnel to positions
◦ New recruitment or available personnel

Providing for coordination & control
◦ Span of control ◦ Imp. Instruments of control
Job Description Organization Charts Organization Manual

Span of Control vs. Management Levels
Flat Sales Organization
National Sales Manager

Management Levels Management Levels

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

Span of Control

Span of Control vs. Management Levels
Tall Sales Organization
National Sales Manager

Management Levels Management Levels

Regional Sales Manager

Regional Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manager

District Sales Manage r

Span of Control

Types of Sales Managers / Levels of Sales Management Positions CEO / President V. P. Sales / V. P. Marketing

Top-Level Sales Managers / Leaders

National Sales Manager Regional / Zonal / Divisional Sales Managers District / Branch / Area Sales Managers Middle-Level Sales Managers

First / Lower Level Sales Managers

Sales Trainee / Sales Person / Sales Representative

Organisation Charts
Hierarchical Structure

Managing Director

Sales Director

Marketing Director

Finance Director





Market Research

Strategy Purchasing Sales Manager Manager

Accounts Manager

Organisation Charts...
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