Chapter 4 slides
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McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. reserved. Chapter 4 Chapter 4 Sales Sales Force Force Organizatio Organizatio n n Listen to the customer and act on what they tell you. Pat Nathan, Vice President Dell Computer Corp
Transcript of Chapter 4 slides
McGraw-Hill/IrwinMcGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 4Chapter 4Sales Sales ForceForceOrganizationOrganizationListen to the customer and act on what they tell you. Pat Nathan,
Vice PresidentDell Computer Corp
4-4-22
Principles of Organization DesignPrinciples of Organization Design
Organizational structure should reflect a marketing Organizational structure should reflect a marketing orientationorientation
Organization should be built around activities, not Organization should be built around activities, not around peoplearound people
Responsibility and authority should be related Responsibility and authority should be related properlyproperly
Span of executive control should be reasonableSpan of executive control should be reasonable Organization should be stable but not flexibleOrganization should be stable but not flexible Activities should be balanced and coordinatedActivities should be balanced and coordinated
4-4-33
Line-and-Staff Sales OrganizationLine-and-Staff Sales Organization
Chief Marketing Executive
Salespeople
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
SalesPromotionManager
SalesAnalysisManager
Staff advisory authority
Line authority
(Figure 4-2)
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Functional Sales OrganizationFunctional Sales Organization
Chief Marketing Executive
Salespeople
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
CreditManager
SalesPromotionManager
Staff advisory authority
Line authority
(Figure 4-3)
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The Horizontal CorporationThe Horizontal Corporation
Strategic Planning TeamVP Strategic PlanningVP Finance & InformationChief Operating OfficerHuman ResourcesAdministration
Manufacturing TeamSystems Engineering ProductionQuality Control
Customer Fulfillment TeamPricing and PromotionSalesDistribution
Product Design and Development TeamCustomer ResearchCustomer AnalysisDesign Engineering
Customer Support TeamInformationTrainingServiceResearch
(Figure 4-4)
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Geographical Sales OrganizationGeographical Sales Organization
Chief Marketing Executive
Western RegionalSales Manager
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
SalesPromotionManager
SalesAnalyst
4 DistrictSales Managers
Salespeople eachwith own territory
Eastern RegionalSales Manager
4 DistrictSales Managers
Salespeople eachwith own territory
(Figure 4-5)
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Sales Organization with Product-Sales Organization with Product-Specialized Sales ForceSpecialized Sales Force
Chief Marketing Executive
Sales ManagerProduct A
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
SalesPromotionManager
CustomerRelationsManager
SalespeopleProduct A
Sales ManagerProduct C
SalespeopleProduct C
(Figure 4-6)
Sales ManagerProduct B
SalespeopleProduct B
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Sales Organization with Product Sales Organization with Product Managers as Staff SpecialistsManagers as Staff Specialists
Chief Marketing Executive
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
Manager
Product A
(Figure 4-7)
Assistant Sales
Manager
Salespeople
Manager
Product B
Manager
Product C
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Sales Organization Specialized by Sales Organization Specialized by Type of CustomerType of Customer
Chief Marketing Executive
Sales ManagerTransportation
Industry
Advertising Manager
MarketingResearchManager
GeneralSales
Manager
SalesPromotionManager
CustomerRelationsManager
Salespeople
Sales ManagerPetroleum Industry
Salespeople
(Figure 4-8)
Sales ManagerSteel Industry
Salespeople
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Organizational Options for the 2000sOrganizational Options for the 2000s
(Figure 4-9)
Organizational Options for the
2000s
Strategic account management
Team selling
E-commerce and telemarketing
Independentreps
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The Relationship Between A The Relationship Between A Sales Team and a Buying CenterSales Team and a Buying Center
Organizational selling center
Marketing
Sales
Manufacturing
R&D
Engineering
Physical Distribution
Organizational buying center
Purchasing
Manufacturing
R&D
Engineering
Marketing
Exchange Process
Purchasing Agent
Sales-person
Information
Problem Solving
Negotiation
Friendship, Trust
Product/ServicesPayment
Reciprocity
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(Figure 4-10)
Captive versus Independent Sales Rep
$ Cost
$ Sales
Independent rep
Captive rep
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Uses of TelemarketingUses of Telemarketing Identify prospective customersIdentify prospective customers
Screening, qualifying leadsScreening, qualifying leads
Sales solicitation: small customers, Sales solicitation: small customers, re-ordersre-orders
Order processingOrder processing
Product service supportProduct service support
Account managementAccount management
Customer relationsCustomer relations
Competitive reportingCompetitive reporting
Expense reportingExpense reporting
