PRINCIPLE OF ORGANIZATIONAL DESIGN IS…… STRUCTURE FOLLOWS STRATEGY
THREE PURPOSES OF A SALES ORGANIZATION
1. BENEFIT FROM SPECIALIZATION OF LABOR
2. STABILITY AND CONTINUITY
3. COORDINATION OF THE SELLING ACTIVITY
BASIC ORGANIZATIONAL CONCEPTS
1. SPECIALIZATION VS. GENERILIZATION
2. CENTRALIZATION VS. DECENTRALIZATION
3. SPAN OF CONTROL - WIDE VS. NARROW
4. LINE VS. STAFF
1. SPECIALIZATION VS. GENERIALIZATION
-SOME DEGREE OF SELLING SPECIALIZATION
( MARKETS, PRODUCTS, GEOGRAPHY, SELLING SKILLS)
-SALES MANAGEMENT SPECIALIZATION
( LARGE ACCOUNTS, CUSTOMER SERVICE, VERTICAL SELLING, TRAINING, PLANNING)
-SIZE OF THE COMPANY
(LARGE VS. SMALL COMPANIES)
2. CENTRALIZED VS. DECENTRALIZED
-CENTRALIZATION IS THE DEGREE TO WHICH IMPORTANT DECISIONS AND TASKS ARE ADDRESSED AT HIGHER LEVELS OF THE BUSINESS
-SIZE OF COMPANY
-OWNERSHIP VS. PROFESSIONAL MANAGEMENT
-CULTURE
-LOOK TO EMPOWERMENT (TWO DEFINITIONS)
3. SPAN OF CONTROL
DEFINES THE NUMBER OF PEOPLE REPORTING TO A SALES MANAGER
IT IS A FUNCTION OF:
1. SALES MANAGER’S EXPERIENCE
2. SALES REP’S EXPERIENCE
3. NUMBER OF LOCATIONS
4. WHAT’S AT RISK
WIDE/FLAT OR NARROW/TALL
4. LINE VS. STAFF ASSIGNMENTS
LINE: SALES MANAGERS HAVE DIRECT REPORTS (CHAIN OF COMMAND) INVOLVED IN THE SALES GENERATING ACTIVITIES
STAFF: MANAGERS ARE NOT IN THE DIRECT CHAIN OF COMMAND OF SALES GENERATING ACTIVITIES
SALES MANAGEMENT ORGANIZATIONAL TRENDS:
-MORE SPECIALIZATION BY CUSTOMERS/MARKETS
-FLATTER, WIDER SPANS OF CONTROL
-EMPOWERMENT AND DECENTRALIZATION
-OUTSOURCING OF STAFF ASSIGNMENTS
