Sales Organization Structure

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SALES ORGANIZATION STRUCTURE

Introduction
Once the sales plan has been formulated, the next logical step is to organize a sales force to achieve the enterprise objectives. Decisions must be made as to the type of sales tasks required to be performed and as to how the sales people should be grouped together to ensure effectiveness and efficiency. The scope of their sales responsibility, line authority and accountability must be defined so that the sales activities can be well coordinated. The basic types of organizational structures and territorial designs that are used to define work relationships between sales personnel and their superiors will be discussed below. Need for sales Organization

Sales organization which bridges the gap between the market and the productive capacity of the firm. As the market changes, the sales function accommodates through adjusting its organization and manner of operation. Shifts in size bf market operation, market trends, competitive position and other environmental factors may necessitate changes in existing sales organizations. An effective sales organization usually provides for growth and adaptability to such changes. Apart from providing a basic structure to facilitate working, sales organization has the following basic purposes. a) Defines lines or authority

b) Establishes lines or communication
c) Provides for coordination and balance
d) Provides Insight into avenues or advancement
e) Provides for coordination and balance
f) Ensures that all necessary activities are assigned and Performed g) Establishes lines or communication
Sales organization which bridges the gap between the market and the productive capacity of the firm. As the market changes, the sales function accommodates through adjusting its organization and manner of operation. Shifts in size bf market operation, market trends, competitive position and other environmental factors may necessitate changes in existing sales organizations. An effective sales organization usually provides for growth and adaptability to such changes.

Centralization vs. Decentralization in sales organization
One of the key decisions in sales management is related to the degree of centralization or decentralization of the various sales functions. In centralized systems recruitment, training, compensation and evaluation are all managed from the central headquarters. While in a decentralized system the field sales managers take up most or all of these functions. In organizations involving the use of a field sales force some decentralization would obviously result. Though the extent of it tends to vary across firms. The degree of centralization or decentralization in sales organization may depend on size of operation costs. Effectiveness and competitive necessity. Basic types of organizational structure

We are familiar with the concept of line, staff and functional authority through our past exposure. Among the designs of sales organizations that prevail in Indian industry, line and staff are more common forms, while functional organization is relatively rare. No two firms would have identical sales organization as their needs and expectations, markets and products, company size and marketing channels differ from each other. LINE SALES ORGANISATION

The line sales organization is the most basic forms of sales organization, characterized by a chain of command running from the top sales executive down to the level of the salesman. All executives have line authority over their subordinates who in turn are accountable only to their immediate superior. Since lines of authority run vertically in this structure, executives at each level are generally independent of all others al the same level. Through assignment of quotas or sales targets, responsibilities are usually, clearly delineated. Figure below gives the sales organization of liquor division of Jagatjit Industries Ltd., designed as a line sales organization....
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