The Sales Organization

Introduction
Effective sales executives insist upon sound organization. Sales organization must achieve both qualitative and qualitative personal-selling objectives. The effective sales executive builds both salesmindedness and profit-mindedness into the sales organization.

Definition
A sales organization is both an orienting point for cooperative endeavor and a structure of human relationship. It is a group of individuals striving jointly to reach qualitative and quantitative objectives, and bearing informal and formal relations to one another.

Purposes of Sales Organization

To permit the development of specialists. To assure that all necessary activities are performed. To achieve Coordination or Balance. To define authority. To Economize on Executive Time.

Setting up a Sales Organization

Define the objectives. Delineating the necessary activities. Grouping activities into jobs or positions. Assigning personnel to positions. Providing for coordination and control.

Basic types of sales organizational structure

Line sales Organization. Line and Staff sales organization. Functional sales organization. Committee sales organization.

Line sales Organization

The line organization is the oldest and simplest organization structure. It is widely used in smaller firms and in firms with small numbers of selling personnel In line organization, the chief executive usually the president does the decision making for the firm. The president has complete authority.

Line Sales Department Organization

General Manager

Sales Manager

Assistant Sales Manager Division 1

Assistant Sales Manager Division 2

Assistant Sales Manager Division 3

Assistant Sales Manager Office

Sales People

Sales People

Sales People

Office Staff

Line and Staff Sales Organization

The line and staff sales department is often found in large and medium-sized firms, employing substantial numbers of sales personnel, and selling diversified product line over wide geographic area.

Line and Staff Department Organization

President

Vice-President in charge of Marketing

Advertising Manager General Sales Manager Manager of Marketing Research Assistant to General Sales Manager Director of Dealer and Distributor Relations

Director of Sales Training

Sales Personal Director

Assistant General Sales Manager

Sales Promotion Manager

District Sales Manager (6) Branch Sales Manager (32) Sales Personnel (450)

Functional Sales Organization

Derived from the management theory developed by Frederic W. Taylor, is based upon the premise that each individual in an organization, executive and employees, should have as few distinct duties as possible. The principle of specialization is utilized to the fullest extent. Duty assignment and delegation of authority are made according to function.

Functional Sales Organization

Director of Sales Administration

Installation & service manager

Manager of sales training

Manager of sales supervision

Manager of sales promotion

Manager of dealer and distributor relations

Manager of sales personnel

Salesperson

Salesperson

Salesperson

Salesperson

Salesperson

Salesperson

Committee Sales Organization

It is a method of organizing the executive group for planning and policy formulation while leaving actual operations, including implementation of plans and policies to individual executives. Some committees found in sales organizations include customer relations, operations, personnel, training, merchandising and new product.