Developing a Sales organistion structure is not an easy task. The key to organizational design are consistency and coherence. The importance is highlighted as:
Developing a Sales Organisation
Developing a Sales organistion
structure is not an easy task. The key to organizational design are consistency
and coherence. The importance is highlighted as:
“Spans of control, degrees of job
enlargement, forms of decentralization, planning systems and matrix structure
should not be picked and chosen at random. Rather, they should be selected
according to internally consistent groupings, and these groupings should be
consistent with the situation of the organization – its age and size, the
conditions of the industry in which it operates, and its production technology”.
This means that sales managers
must recognize, and then deal with, some basic organizational issues when
developing a sales organization. The five major issues are :
and informal organisations
Every organization has a formal
organisation and an informal organisation. The formal organisation is the
creation of management, whereas the informal organisation is often developed
from the social organisation. Also called the grapevine, the informal
organization is basically a communication pattern that emerges to facilitate
the operation of the formal organisation.
Consider the case of a field
salesperson who is responsible for collecting certain competitive information,
such as prices and trade discounts. If this information were forwarded through
the formal organization, the data would be outdated and would be useless to
management. The informal communication system, however, allows the information
to be transmitted directly to the director of marketing research. The figure on
page 490 shows an informal communication pattern that might exist in a
figure below shows a lengthy formal communication channel:
and Vertical Organisations
Sales force can have either
horizontal or vertical organizational format.
arrangement varies among companies, even within the same industry. The factor
that determines whether a vertical or horizontal organizational structure
should be employed is the effective span of control. The span of control refers
to the number of employees who report to the next higher level in the
organization. The following figures shows the formats of vertical sales
organization and horizontal sales organistion.
3. Centralized and decentralized organisation In a decentralized organisation,
responsibility and authority are delegated to lower levels of sales management.
In a centralised sales organization, the responsibility and authority for decisions
are concentrated at higher levels of management. A related concern is the degree
of centralization in the sales organization. This issue has to do with the
organizational location of the responsibility and authority for specific
management tasks. A decentralized organization
structure is ineffective unless commensurate responsibility and authority
accompany the assignment of decision to a specific level of sales management.
4. Line and
Staff components Marketing organizations also
feature line and staff components. A line function is a primary activity and
staff function is a supporting activity. In a marketing organization, the
selling function is the line component, whereas advertising, marketing
research, marketing planning, sales training and distributor relations are
usually considered staff roles. The following figure and the
figure on the next page show a’ line marketing organsation’ and a ‘line and
staff marketing organsation’.
Tags : MARKETING MANAGEMENT - PROMOTION DECISION
Last 30 days 2337 views