Chap 004
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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
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 Activities should be balanced and coordinated 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 Information Training Service Research
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Customer Fulfillment Team Pricing and Promotion Sales Distribution
(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 Problem Solving Negotiation
Organizational buying center
Purchasing 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.
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 Activities should be balanced and coordinated 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 Information Training Service Research
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Customer Fulfillment Team Pricing and Promotion Sales Distribution
(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 Problem Solving Negotiation
Organizational buying center
Purchasing 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.
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