Sales Organisation Presentation (2)
-
Upload
bhaskar-kunji -
Category
Documents
-
view
214 -
download
0
Transcript of Sales Organisation Presentation (2)
-
7/27/2019 Sales Organisation Presentation (2)
1/29
Sales Organization
Arunlal.A.H
Bhaskar.K
-
7/27/2019 Sales Organisation Presentation (2)
2/29
Topics
Sales organization,
objectives,
setting up of a sales organization
and types of sales organization
structure.
-
7/27/2019 Sales Organisation Presentation (2)
3/29
IntroductionSales Organization
Sales Organization is a department of the organization for
the purpose of directing, coordinating and controlling thesales.
A sales organization is responsible for distributing goods andservices. Therefore it is also liable for the sold products andresponsible for a customers rights of recourse.
sales organization structureA sales organization structure evolved in such a way that sales
people and sales manager carry out their activity effectivelyand efficiently. It gives a blue print that what activity isperformed by which person.
Sales organization
-
7/27/2019 Sales Organisation Presentation (2)
4/29
Functions of Sales Organisation
The functions of sales organisation can be classified as follows
1. Planning functions
a. Sales forecasting
b. Sales budgeting
c. Selling policy
2. Administrative functions
a. Selecting salesmen
b. Training salesmen
c. Control of salesmen
d. Remuneration of salesmen
3. Executive functionsa. Sales promotion
b. Selling routineexecution of customers orders.
-
7/27/2019 Sales Organisation Presentation (2)
5/29
The basic concept include are
following:
Centralisation Specialization
Co-ordination
Control
Sales organization
-
7/27/2019 Sales Organisation Presentation (2)
6/29
Objectives of sales organization
Defines lines or authority
Ensures that all necessary activities are
assigned and Performed
Establishes lines or communication
Provides for coordination and balance
Provides Insight into avenues or advancement
Economises on executive time
-
7/27/2019 Sales Organisation Presentation (2)
7/29
Setting up a Sales Organization
There are five major steps in setting up a sales organization
1. Defining the objective
Set both quantitative as well as qualitative objectives
Qualitative objectives are indispensable for long-rangeplanning, thus, kept in mind in short range planning also
Quantitative objectives are required as operating guideposts
2. Delineating the necessary activities
Determining the necessary activities & their volume ofperformance is based on qualitative & quantitative objectives
Also helps in determining which activities to be performed inwhat volume
-
7/27/2019 Sales Organisation Presentation (2)
8/29
Setting up a Sales Organization CONTD
3. Grouping activities into jobs or positions
activities identified are allocated to different positions
activities are grouped so that closely related tasks areassigned to same positions
each position must also contain some variations
4. Assigning personal to positions
whether to recruit special individuals to fill the positions orto modify the positions to fit the capabilities of availablepersons
5. Providing for coordination and control sales executives require means to control their
subordinates & to coordinate their efforts
they should not be overburdened nor should have toomany subordinates
-
7/27/2019 Sales Organisation Presentation (2)
9/29
Factors determining the structure of Sales
Organization
1. Price of Product
2. Nature of Product3. Nature of Market
4. Size of the enterprise
5. Ability of the Executives
6. Sales Policies of the Enterprise
7. Distribution System
8. Finance
9. Number of Products
Setting up a Sales Organization CONTD
-
7/27/2019 Sales Organisation Presentation (2)
10/29
(1)Begin with a historical profile of the
companys culture, overall organisation
and top-management philosophy of thefirm.
(ii) Analyse the requirements of the company
in terms of its:
size, position in the market, product mix,
customers, competition, and sales-people
and their ambitions.
Setting up a Sales Organization CONTD
-
7/27/2019 Sales Organisation Presentation (2)
11/29
(iii) Appraise the potential of the company, in
terms of its impact on the financial, technical,
scientific and human resources, existingcurrently.
(iv) Analyse the prevailing working-
atmosphere and state of communications,.
Setting up a Sales Organization CONTD
-
7/27/2019 Sales Organisation Presentation (2)
12/29
(v) List the various administrative-details,
connected with the company.
(vi) Prepare a note, relating to the various
administrative-details including aspects like
hierarchy, span of control, etc. on the sales-department, and overall organisation of the
department.
Setting up a Sales Organization CONTD
-
7/27/2019 Sales Organisation Presentation (2)
13/29
(vii) Describe the procedures and
Processes to be followed for executing
various tasks.
Setting up a Sales Organization CONTD
-
7/27/2019 Sales Organisation Presentation (2)
14/29
Developing a Sales Organisation
Sales organisation development refers to the formal, coordinating
process of communication, authority and responsibility for sales groups
and individuals.
A sales manager must recognise and deal with some basic problems
faced by organisations, when developing his own sales organisation.The five major issues are:
1. Formal and informal organisations
2. Horizontal and vertical organisations
3. Centralised and decentralised organisations
4. The line and staff components of organisations
5. The size of the company.
-
7/27/2019 Sales Organisation Presentation (2)
15/29
Sales Organisation structures
The following are the important field sales Organisations:
1. Geographic sales specialisation organisation
2. Product-based sales specialisation organisation
3. Customer-based specialisation organisation
4. Activity/function-based specialisation
5. Hybrid sales organisation
6. Team-based organisation.
-
7/27/2019 Sales Organisation Presentation (2)
16/29
Sales Organization Concepts
SpecializationThe 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.
Centralization
The degree two which important decisions and tasks
performed at higher levels in the management hierarchy.
Centralized structures place authority and responsibilityat higher management levels.
-
7/27/2019 Sales Organisation Presentation (2)
17/29
Flat Sales Organization
Span of Control
Man
agementLevels
National
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
District
Sales
Manager
Span of Control vs.
Management Levels
-
7/27/2019 Sales Organisation Presentation (2)
18/29
Tall Sales Organization
National Sales
Manager
Span of Control
ManagementLevels
District
SalesManager
District
SalesManager
District
SalesManager
District
SalesManager
District
SalesManager
District
SalesManage
r
Regional Sales
Manager
Regional Sales
Manager
Span of Control vs.
Management Levels
-
7/27/2019 Sales Organisation Presentation (2)
19/29
National Sales Manager
Regional Sales Managers
District Sales Managers
Sales Training Manager
Sales Training Manager
Salespeople
Staff Position
Line Position
Line vs. Staff Positions
-
7/27/2019 Sales Organisation Presentation (2)
20/29
Organizational
Structure
Environmental
Characteristics
Task
Performance
Performance
Objective
SpecializationHigh Envir.
uncertainty Nonroutine Adaptiveness
CentralizationLow Envir.
UncertaintyRepetitive Effectiveness
Selling-Situation Factors and
Organizational Structure
-
7/27/2019 Sales Organisation Presentation (2)
21/29
SimpleProduct
Offering
ComplexRange of
Products
Customer Needs Different
Customer Needs Similar
Market-
Driven
Specialization
Product/Market-
Driven
Specialization
Geography-
Driven
Specialization
Product-
Driven
Specialization
Customer and Product
Determinants of Sales Force
Specialization
-
7/27/2019 Sales Organisation Presentation (2)
22/29
Geographic Sales Organization
National Sales Manager
Zone Sales Managers (4) Zone Sales Managers (4)
District Sales Managers (20)
Salespeople (100) Salespeople (100)
District Sales Managers (20)
Eastern Region Sales Manager Western Region Sales Manager
Sales Training Manager
-
7/27/2019 Sales Organisation Presentation (2)
23/29
Product Sales Organization
National Sales Manager
Office Equipment Sales Manager Office Supplies Sales Manager
District Sales Managers (10)
Salespeople (100) Salespeople (100)
District Sales Managers (10)
-
7/27/2019 Sales Organisation Presentation (2)
24/29
Market Sales Organization
National Sales Manager
Zone Sales Managers (4)District Sales Managers (25)
Salespeople (150)
District Sales Managers (5)
Commercial Accounts
Sales Manager Government AccountsSales ManagerSales Training
Manager
Salespeople (50)
-
7/27/2019 Sales Organisation Presentation (2)
25/29
Functional Sales Organization
National Sales Manager
Field Sales Manager Telemarketing Sales ManagerRegional Sales Managers (4)
Salespeople (160)Salespeople (40)
District Sales Managers (2)District Sales Managers (16)
-
7/27/2019 Sales Organisation Presentation (2)
26/29
Comparison ofSales Organisation Structures
Organisational
Structure Advantages Disadvantages
Geographic
Low Cost
No geographic duplication No customer duplication
Fewer management levels
Limited specialization Lack of management
control over product or
customer emphasis
Product
Salespeople become expertsin product attr. & applications
Management control over
selling effort
High cost
Geographic duplication
Customer duplication
-
7/27/2019 Sales Organisation Presentation (2)
27/29
Comparison ofSales Organization Structures
Market
Salespeople develop
better understanding ofunique customer needs
Management control over
selling allocated to different
markets
High cost
Geographic duplication
Functional Efficiency in performing
selling activities
Geographic duplication
Customer duplication
Need for coordination
Organizational
Structure Advantages Disadvantages
-
7/27/2019 Sales Organisation Presentation (2)
28/29
Hybrid Sales Organization Structure
National Sales Manager
Major Accounts
Sales Manager Regular AccountsSales Manager Office EquipmentSales Manager Office SuppliesSales Manager
Field Sales
ManagerTelemarketing
Sales Manager
Commercial Accounts
Sales Manager Government AccountsSales Manager
Western
Sales Manager EasternSales Manager
-
7/27/2019 Sales Organisation Presentation (2)
29/29
Thank you