4 Sales Force Organization Chapter Listen to the customer and act on what they tell you. Pat Nathan, Vice President Dell Computer Corp

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

Line-and-Staff Sales Organization (Figure 4-2) Chief Marketing Executive Advertising Manager Marketing Research Manager General Sales Manager Sales Promotion Manager Sales Analysis Manager Salespeople Line authority Staff advisory authority

Functional Sales Organization (Figure 4-3) Chief Marketing Executive Advertising Manager Marketing Research Manager General Sales Manager Credit Manager Sales Promotion Manager Salespeople Line authority Staff advisory authority

The Horizontal Corporation (Figure 4-4) Manufacturing Team Systems Engineering Production Quality Control Product Design and Development Team 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 Customer Fulfillment Team Pricing and Promotion Sales Distribution

Geographical Sales Organization (Figure 4-5) Chief Marketing Executive Advertising Manager Marketing Research Manager General Sales Manager Sales Promotion Manager Sales Analyst 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

Sales Organization with Product-Specialized Sales Force (Figure 4-6) Sales Organization with Product-Specialized Sales Force Chief Marketing Executive Advertising Manager Marketing Research Manager General Sales Manager Sales Promotion Manager Customer Relations Manager Sales Manager Product A Sales Manager Product B Sales Manager Product C Salespeople Product A Salespeople Product B Salespeople Product C

Sales Organization with Product-Managers as Staff Specialists (Figure 4-7) Sales Organization with Product-Managers as Staff Specialists Chief Marketing Executive Advertising Manager Marketing Research Manager General Sales Manager Manager Product A Manager Product B Manager Product C Assistant Sales Manager Salespeople

Sales Organization Specialized by Type of Customer (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

Organizational Options for the 2000s (Figure 4-9) Strategic account management Independent reps E-commerce and telemarketing Organizational Options for the 2000s Team selling

The Relationship Between A Sales Team and a Buying Center Organizational selling center Marketing Sales Manufacturing R&D Engineering Physical Distribution Organizational buying center Purchasing Exchange Process Purchasing Agent Sales-person Information Problem Solving Negotiation Friendship, Trust Product/Services Payment Reciprocity

$ Cost Independent rep Captive rep $ Sales (Figure 4-10) Captive versus independent sales rep $ Cost Independent rep Captive rep $ Sales

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