sales management structure

8/13/2019 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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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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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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sales management structure

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