Sales MGM - Ch07 - Sales Organization
Sales MGM - Ch07 - Sales Organization
Sales MGM - Ch07 - Sales Organization
SALES MANAGEMENT:
SHARPING FUTURE SALES LEADERS
Tanner, Honeycutt, and Erffmeyer,
2e Wesser 2014.
Customers
Marketing
Competitors
channel
How sales
organizations
are structured
company
Product
Product
Product company
company size
size
size
7-3
Calculate the Sales Force Size
Breakdown method
Workload method
Incremental method
The Size of the Sales Force
Breakdown method
• Divide forecasted sales revenue by average sales dollars per
salesperson
7-5
The Size of the Sales Force
Workload Method
.
7-6
The Size of the Sales Force
Incremental method
1.Its compares the marginal profits and marginal costs associated
with each incremental salesperson
2.is difficult to develop, and it cannot be used for new sales forces
where historical data and accurate judgments are not possible.
Geographical
Sales Structure
Product
n be
e ca Sales Structure
f o rc ased s
ales ed b w ay
S
a n iz r ent Market
org r diffe Sales Structure
e
oth
Functional
Sales Structure
Combinational
Sales Structure 7-8
Geographic-Based Structure
PROs CONs
7-10
Product-Based Structure
PROs CONs
7-12
Market -Based Structure
PROs CONs
7-14
Functional Sales Structure
Sales Manager
PROs CONs
7-16
Combination Sales Structures
P re sid e n t
E aste r n C en tr al W est er n
Sales Sales Sales
D iv is io n D iv is io n D iv is io n
Combination Sales Structures
PROs CONs
7-18
Comparison of sales Structures
Structure Advantages Disadvantages
• Low Cost • Limited specialization
• No geographic duplication • Lack of management
Geographic • No customer duplication control over product or
• Fewer management levels customer emphasis
• Salespeople become experts • High cost
in product attr. & applications • Geographic duplication
Product
• Management control over • Customer duplication
selling effort
• Understand of customer needs
Market • Management control over • High cost
selling allocated to different • Geographic duplication
markets
• Geographic duplication
• Efficiency in performing • Customer duplication
Functional
selling activities • Need for coordination
Key Accounts/ VIP account
7-20
Sales Organizational Additions
7-21
Strategic Account Management
Sales force structure is simplified
Use Existing Force All accounts are managed under a
single organizational structure
7-23
Telemarketing and E-commerce.
7-24
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