Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

4 Sales Force
Organization

Listen to the customer and act

on what they tell you.
Pat Nathan,
Vice President
Dell Computer Corp

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 Principles of Organization Design

Organizational structure should reflect a marketing

orientation
Organization should be built around activities, not
around people
Responsibility and authority should be related
properly
Span of executive control should be reasonable
Organization should be stable but not flexible
Activities should be balanced and coordinated

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 (Figure 4-2)

Line-and-Staff Sales Organization

Chief Marketing Executive

Advertising Marketing General Sales Sales

Manager Research Sales Promotion Analysis
Manager Manager Manager Manager

Salespeople

Line authority
Staff advisory authority
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 (Figure 4-3)

Functional Sales Organization

Chief Marketing Executive

Advertising Marketing General Credit Sales

Manager Research Sales Manager Promotion
Manager Manager Manager

Salespeople

Line authority
Staff advisory authority
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 (Figure 4-4)

The Horizontal Corporation

Manufacturing
Product Design and Team
Development Team Systems Engineering
Customer Research Production
Customer Analysis Quality Control
Design Engineering

Strategic
Planning Team
VP Strategic Planning
VP Finance & Information
Chief Operating Officer
Human Resources
Administration

Customer Customer
Support Team Fulfillment Team
Information Pricing and Promotion
Training Sales
Service Distribution
Research

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 (Figure 4-5)

Geographical Sales Organization

Chief Marketing Executive

Advertising Marketing General Sales Sales

Manager Research Sales Promotion Analyst
Manager Manager Manager

Western Regional Eastern Regional

Sales Manager Sales Manager

4 District 4 District
Sales Managers Sales Managers

Salespeople each Salespeople each

with own territory with own territory
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 (Figure 4-6)

Sales Organization with Product-

Specialized Sales Force
Chief Marketing Executive

Advertising Marketing General Sales Customer

Manager Research Sales Promotion Relations
Manager Manager Manager Manager

Sales Manager Sales Manager Sales Manager

Product A Product B Product C

Salespeople Salespeople Salespeople

Product A Product B Product C

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 (Figure 4-7)

Sales Organization with Product-

Managers as Staff Specialists
Chief Marketing Executive

Advertising Marketing General

Manager Research Manager Manager Manager
Sales
Manager Manager Product A Product B Product C

Assistant
Sales
Manager

Salespeople

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 (Figure 4-8)

Sales Organization Specialized by

Type of Customer
Chief Marketing Executive

Advertising Marketing General Sales Customer

Manager Research Sales Promotion Relations
Manager Manager Manager Manager

Sales Manager Sales Manager Sales Manager

Transportation Steel Industry Petroleum Industry
Industry

Salespeople Salespeople Salespeople

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 (Figure 4-9)

Organizational Options for the 2000s

Strategic account
management

Independent Organizational
E-commerce and
reps Options for the telemarketing
2000s

Team selling

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 The Relationship Between A
Sales Team and a Buying Center
Organizational Sales- Exchange Purchasing Organizational
selling center person Process Agent buying center

Marketing Information
Purchasing
Sales Problem Solving
Manufacturing
Manufacturing Negotiation
Friendship, Trust R&D
R&D
Engineering Product/Services Engineering
Payment
Physical Marketing
Distribution Reciprocity

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 (Figure 4-10)

Captive versus independent sales rep

$ Cost
Independent rep

Captive rep

$ Sales

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 Uses of Telemarketing
Identifyprospective customers
Screening, qualifying leads
Sales solicitation: small customers,
re-orders
Order processing
Product service support
Account management
Customer relations
Competitive reporting
Expense reporting
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.