Chapter 04 The Market Driven Sales Organization.ppt

7/17/2019 Chapter 04 The Market Driven Sales Organization.ppt

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Copyright 2001 by Harcourt, Inc. All rights reserved.

CHAPTER4

THEMARKET-DRIVENSALESORGANIZATION


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The type of ar!ets in "hich salespeople "or!.

The a#or #ob activities of salespeople.

The various types of sales #obs.

$hy sales #obs are designed for an individual organi%ation&sar!ets and custoers.

The various types of sales force organi%ational structures.

'e"er fors of organi%ations.

Ho" coordination and technology iprove custoer service.

()A*'I'+ -)CTI/)

A sales force is a cople selling unit of the fir. Its organi%ational

design and structure are built around its custoers and ar!ets.After studying this chapter, you should be able to eplain


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3ACT* I'3(4)'CI'+

*+A'I5ATI'A(

6)I+' A'6

T*4CT4*)

7)aine custoers in each ar!et.

76eterine the types of sales #obs needed toserve a ar!et.

7'ote the #ob activities salespeople ust do.

76esign sales #obs around custoers.7et up the sales force organi%ational

structure, "hich includes the various sales#obs and geographic territories.


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P e r f o r m a n c e

E s t a b l i s h S a l e sO r g a n i z a t i o n a lS t r u c t u r e

Q u a l i t y o fW o r k L i f e

C u s t o m e r sa n d M a r k e t s

T y e so f ! o b s

" e # u i r e d! o b $ c t i % i t i e s

& e s i g nt h e ! o b

FIGURE 4.1 THE RELATIONSHIPS AMONG MARKETS, JOBS, AND ACTIVITIES

INFLUENCE SALES JOB DESIGN AND ORGANIZTATIONAL STRUCTURE


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8A*9)TI'+ A'68A*9)T

8ar!eting is the process of planning and

eecuting the conception, pricing,prootions, and distribution of ideas,goods, and services to create echangesthat satisfy individual and organi%ational

ob#ectives.


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7Consuer

7-usiness

A():):()$*9 I'T$8A*9)T


7/33Copyright 2001 by Harcourt, Inc. All rights reserved.

even a#or categories

Category ne ; inside order ta!er.

Category T"o ; deliverer.

Category Three ; an order ta!er but also "or!s in

the field.

Category 3our ; is not epected or peritted to

ta!e an order but is as!ed only to build good"ill

or to educate the actual or potential custoer.

A() - A*) /A*I)6 A'6

CA' -)

C(AI3I)6



Category 3ive ; a#or ephasis is placed on

technical !no"ledge.

Category i ; deands the creative

uires the creative sale

of intangibles.

even a#or categories Continued



A::(ICATI'3 TH)A()-

C(AI3ICATI'

rder ta!ers ; "ait for the custoer to order.

The ain proble "ith order ta!ers is that they create

only one distinction in the custoer&s ind price.

rder getters ; obtain, retain, and increase

business "ith custoers.

This salesperson ust often create discontent "ith "hat

the prospect already has and has to overcoe the ost

po"erful and obstinate resistance.



7They develop relationships "ith custoers.

7They listen ore than tal!.

7Their sales calls are ore productive.

7They have an ob#ective in ind.

7They evaluate and respond to the

custoer&s changing needs.

rder getters build relationships.



:eople "ith the prere>uisite traits and

attributes for success in creative sales arerare.

ften, 100 to 1?0 or even ore applicantsust be intervie"ed to find one >ualified

candidate.

T*4) A():):()A*) HA*6T3I'6



TH) A():)*'& -

ACTI/ITI) A A T)**IT*IA(8A'A+)*

1. :rovides solutions to custoers& probles.

2. :rovides services to custoers.

@. ells to current and ne" custoers.

. Helps custoers resell products to their custoers.

?. Helps custoers use products after purchase.

B. -uilds good"ill "ith custoers.

. :rovides copany "ith ar!et inforation.



A()*+A'I5ATI'A(6)I+'

rgani%ational design refers to the foral,

coordinated process of counication, authority,and responsibility for sales groups andindividuals.



:4*:) A'6I8:*TA'C) 3 -6)I+'

7Content7Dualifications re>uired to perfor7*eturns and re"ards for perforance



A() *+A'I5ATI'A(

T*4CT4*)

rgani%ational structure is the relativelyfied, forally defined relationship

aong #obs "ithin the fir.



TH) (I')*+A'I5ATI'

In the pure line organi%ation, the chiefeecutive ; usually the president ; does

the decision a!ing for the fir. The

president has coplete authority.



L e ' i s S t o n e rP r e s i d e n t ( O ' n e r

! a k e P r e s t o n) i c e P r e s i d e n t o f S a l e s

T ' o S a l e s e o l e

FIGURE 4.2 COMPUTE CORPORATIONS LINE ORGANIZATION



:)CIA(I5)66)I+'

3unctional organi%ational design is thegrouping of "or! according to its

characteristics.



t a

C h a r l e s T h o m s o n

S a l e s M a n a g e r

! o h n + r i e d m a n

$ d % e r t i s i n g , P r o m o t i o nM a n a g e r

P e t e L i k e r t

M a r k e t " e s e a r c hM a n a g e r

FIGURE 4.3 ALARM SSTEM CORPORATIONS FUNCTIONAL ORGANIZATIONAL

DESIGN

L i n e ! o h n $ b b o t t) i c e P r e s i d e n t o f M a r k e t i n g

T e n S a l e s e o l e



(ine authority eans that people in anageent

positions have foral authority to direct andcontrol iediate subordinates.

taff authority is narro"er and includes the right

to advise, recoend, and counsel in the staff

specialists& areas of epertise.

taff :ositions "ith (ine Authority



+eographic peciali%ation

8any large corporations are organi%ed bygeographic territory. This type of organi%ation is

generally used by copanies "ith ore than

strictly local distribution of their products.

FIGURE 4 4 TE!TRON CHEMICAL CORPORATION GEOGRAPIC SPECIALIZATION



FIGURE 4.4 TE!TRON CHEMICAL CORPORATION GEOGRAPIC SPECIALIZATION

M a n a g e r ia lL e v e l

O p e r a t i n gL e v e l

V i c e P r e s i d e n to f M a r k e t i n g

N a t i o n a l S a l e sM a n a g e r

C e n t r a l D i v i s i o n a l


6 R e g i o n a l S a l e s

3 0 D i s t r i c t S a l e s

2 0 S a l e s p e o p l e

! a s t e r n D i v i s io n a l

S a le s M a n a g e r

" R e g i o n a l S a l e sM a n a g e r s

3 # D i s t r i c t S a l e s

2 0 S a l e s p e o p l e

$ e s t e r n D i v i s i o n a l


# R e g i o n a l S a l e s

2 # D i s t r i c t S a l e s

2 0 0 S a l e s p e o p l e

%M a n a g e r s % M a n a g e r s

%

M a n a g e r s & M a n a g e r s& M a n a g e r s &

C CC


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:roduct peciali%ation

Another coon type of organi%ation in large

copanies is based on the fir&s product. Theentire copany ay be organi%ed by product,

"ith separate sales, advertising, ar!eting, and so

on, along "ith staffs for each, or soe functional

units ay reain centrali%ed.


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Custoer peciali%ation

Copanies "ith several separate and distinct

ar!ets accounting for a#or portions of their

sales often organi%e based on these ar!ets or

custoers.


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Cobination of 6esign )leents

8any copanies organi%e on the basis of soe

cobination of functional, geographic, product,

or custoer design.

FIGURE 4 " MULTIPLE DESIGN FACTORS


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' ( n c t i o n a l

) e o g r a p * i c

C ( s t o + e r

P r o d ( c t

P r e s i d e n t

V i c e P r e s i d e n tM a r k e t i n gV i c e P r e s i d e n tP r o d ( c t i o n

, - S -M a r k e t i n gM a n a g e r

. n t e r n a t i o n a lM a r k e t i n gM a n a g e r

C o n s ( + e r) o o d sM a n a g e r s

. n d ( s t r i a l) o o d sM a n a g e r s

. n t e r n a t i o n a lS a l e sM a n a g e r

! ( r o p e a nD i v i s i o n

L a t i n% + e r i c a nD i v i s i o n

% s i a n a n d% f r i c a nD i v i s i o n

S o a p P r o d ( c t sD i v i s i o n a lM a n a g e r

P a p e r P r o d ( c t sD i v i s i o n a lM a n a g e r

' o o d P r o d ( c t sD i v i s i o n a lM a n a g e r

! a s t e r nS a l e sD i v i s i o n

C e n t r a lS a l e sD i v i s i o n

$ e s t e r nS a l e sD i v i s i o n

V i c e P r e s i d e n t! n g i n e e r i n g

FIGURE 4." MULTIPLE DESIGN FACTORS


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*+A'I5I'+ 3* )((I'+ T 8A*C4T8)*

Copanies use four basic organi%ationalethods.

1. A separate division to deal "ith a#oraccounts.

2. elect ebers of the current sales

force.

@. ales anagers.

. A cobination of 1, 2, and @.


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')$ 3*8 3 *+A'I5ATI'

A strategic alliance is a foral relationship created "iththe purpose of #oint pursuit of utual goals.

T*AT)+ICA((IA'C)


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C ( s t o + e r

S a l e s M a r k e t i n g M a n ( f a c t ( r i n g/ e c * n i c a l

S ( p p o r t

S ( p p l i e r S e l l i n g / e a +

FIGURE 4.# CROSS-FUNCTIONAL SELLING TEAM


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T)A8E-A)6*+A'I5ATI'

8any organi%ations are ore responsive to theirenvironent because they use "or! teas as their

basic building bloc!s.


31/33


C*6I'ATI' A'6 T)CH'(+F

Coordination refers to the >uality of collaborationacross groups.


32/33


I'T)*'ATI'A(C*6I'ATI'

The ost iportant ethods for achievingcoordination are inforation systes, tas! forcesand teas, and integrating anagers.


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TH)-TT8(I')

8ar!ets, #ob types, and #ob activities influence the designof the various sales #obs and, conse>uently, even thestructure of the sales organi%ation.

ales activities are very diverse and easier to understandif classified in one of seven categories.

A salesperson&s #ob activities involve uch ore than

personEtoEperson selling.Copanies can structure their organi%ations in nuerous"ays.

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Chapter 04 The Market Driven Sales Organization.ppt