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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
(Figure 4-2)
Line-and-Staff Sales Organization
Chief Marketing Executive
Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Sales
Promotion
Manager
Sales
Analysis
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
Manager
Marketing
Research
Manager
General
Sales
Manager
Credit
Manager
Sales
Promotion
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
Team
Product Design and
Development Team
Systems Engineering
Production
Quality Control
Customer Research
Customer Analysis
Design Engineering
Strategic
Planning Team
VP Strategic Planning
VP Finance & Information
Chief Operating Officer
Human Resources
Administration
Customer
Support Team
Customer
Fulfillment Team
Information
Training
Service
Research
Pricing and Promotion
Sales
Distribution
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
(Figure 4-5)
Geographical Sales Organization
Chief Marketing Executive
Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Sales
Promotion
Manager
Western Regional
Sales Manager
Eastern Regional
Sales Manager
4 District
Sales Managers
4 District
Sales Managers
Salespeople each
with own territory
Salespeople each
with own territory
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Sales
Analyst
(Figure 4-6)
Sales Organization with ProductSpecialized Sales Force
Chief Marketing Executive
Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Sales
Promotion
Manager
Sales Manager
Product A
Sales Manager
Product B
Sales Manager
Product C
Salespeople
Product A
Salespeople
Product B
Salespeople
Product C
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Customer
Relations
Manager
(Figure 4-7)
Sales Organization with ProductManagers as Staff Specialists
Chief Marketing Executive
Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Assistant
Sales
Manager
Salespeople
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Manager
Manager
Manager
Product A
Product B
Product C
(Figure 4-8)
Sales Organization Specialized by
Type of Customer
Chief Marketing Executive
Advertising
Manager
Marketing
Research
Manager
General
Sales
Manager
Sales
Promotion
Manager
Customer
Relations
Manager
Sales Manager
Transportation
Industry
Sales Manager
Steel Industry
Sales Manager
Petroleum 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
reps
Organizational
Options for the
2000s
Team selling
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
E-commerce and
telemarketing
The Relationship Between A
Sales Team and a Buying Center
Organizational
selling center
Marketing
Sales
Manufacturing
Salesperson
Exchange
Process
Purchasing
Agent
Information
Organizational
buying center
Purchasing
Problem Solving
Negotiation
Manufacturing
R&D
Friendship, Trust
R&D
Engineering
Product/Services
Payment
Engineering
Physical
Distribution
Reciprocity
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing
(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
 Identify
prospective 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.