Download - Sales Management Structure
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Sales Management structure
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Sales Management structure
It defines how sales job and tasks are formally divided,
grouped, and coordinated in a sales organization.
Sales management structure ensures delegation and effective
sales management and control.
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Key elements
1. Job /work specialization
2. Chain of command
3. Span of control
4. Centralization and decentralization
5. Formalization
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Factors influencing structure
a)Product and service related factors
b) Organization related factors
c) Marketing mix related factors
d) External
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Product and service related factors
Nature of product and service
In FMCGsize is large due to large customer base and
high demanding market.
Quantity of the products to be marketed and assortment
size decide the structure.
The structure will be complex depending on the quantity
of sale targeted per category
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Organization related factors
Structure will be simple if enterprise is small in
product and customer base.
Organizations with specialized products and niche markets
have simple structure.
Size is large for firms with large production volume and
sales happening with multiple channels.
Organization with financial constraints engage intermediaries
for distribution
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Continued
Financially sound companies directly reach the consumers
and those companies have complex sales organization.
Centralized organization have simple structure
Decentralized organization will have large and complex
structure.
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Marketing Mix related factors
Size of the market. Ex : MNC companies
Companies with selective distribution strategy have simple
structures
Companies with intense distribution have complex
structures.
Pricing of goods can influence structure.
Low priced goods with large markets have large sized
organizations
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Continued
High priced goods with limited market will have small
sales organization.Aggressive sales policy follow a large and complicatedsales structure
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External factors
Level of competition and past policies and traditions can
determine the structure .In intense competitive environment organization tends to
expand to serve and reach new and existing customers.
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Changes in structure
Various factors that changed sales structure
1. New technologies like internet, telephones can provide alternate
channels to reach the consumer. Ex: online buying
2. Now companies are becoming more customer driven.
3. Changing market conditions.
4. Reduction in the no of vendors.
5. Closer customer relationships.
6. Changes in the regulations and international prices due to rapid
globalization
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Sales Management Positions
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Sales Management Positions
Its the different hierarchical roles of sales force in any
organization.
Requirements of the sales executive jobs vary from
company to company.
Sales executives role is more action oriented and less
planning oriented.
Sales Management is more concerned with present .
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Sales Management Positions
It is possible to generalize about activities and
responsibilities of sales manager.
Most companies have concise statements of duties
associated with various positions known as job or position
descriptions.
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Job description
Sales Manager
Reporting relationship : Sales managerdistrict reports to
next higher authority in sales depending on the organization
structure. Ex : Regional managers, GM- Sales, VP-Sales etc
Job objective : To maximize the sales volume through
effective development and execution of sales program and
sales policies of all products sold by the division.
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Duties and Responsibilitiesa) Sales Program : He decides on the development of detailed
sales program to improve competitive positions, reduce
selling and other distribution expenses .
Establishing short and long range goals of the division with
other executives
Reviews and approves sales policies, sales strategies and
pricing policies.
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b) Organization : He or she establishes an effective plan of
organization and methods of controlling the activities of sale
force.
It can provide sufficient time to carry out full line of
departmental responsibilities.
Provide leadership , self development of sales force
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c) Sales force management
Recruitment and development of new sales force.
Training to sales force.
Establishing a system of sales supervision that controls
waste and in efficiency.
Sales force motivation
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d) Internal and external relations
Developing effective working relations with other
departments heads.
Maintaining effective working relationship with sales,
training and the other key personnel involved.
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e) Communications
Establishes a system of communications with other sales
personnel and provide information about overall
departmental sales objectives , results and problems.
f) Control
Reviews and approves sales and expense budgets.
Consults production manager for precise inventory
management.
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f) ControlContinued
Delegates authority and develop control records and
performance standards.
Ensuring proper balance of various activities.
Performance Criteria
Based on sales volume, profit contribution , sales plansand turnover rate of sales personnel
C f f
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Characteristics of successful sales man
a) Ability to understand and perform roles assigned by the company.
b) Leadership qualities.
c) Skill in recruiting, training and delegating duties to sales force.
d) Good product and market knowledge.
e) Proper planning and implementing skills.
f) Effective client and employee relationships.
g) Time and client management.
h) Communication and convincing abilities
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