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

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Functional Sales Organization Chief Marketing Executive Salespeople Advertising Manager Marketing Research Manager General Sales Manager Credit Manager Sales Promotion Manager Staff advisory authority Line authority (Figure 4-3)

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Horizontal Corporation Strategic Planning Team VP Strategic Planning VP Finance & Information Chief Operating Officer Human Resources Administration Manufacturing Team Systems Engineering Production Quality Control Customer Fulfillment Team Pricing and Promotion Sales Distribution Product Design and Development Team Customer Research Customer Analysis Design Engineering Customer Support Team Information Training Service Research (Figure 4-4)

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Geographical Sales Organization Chief Marketing Executive Western Regional Sales Manager Advertising Manager Marketing Research Manager General Sales Manager Sales Promotion Manager Sales Analyst 4 District Sales Managers Salespeople each with own territory Eastern Regional Sales Manager 4 District Sales Managers Salespeople each with own territory (Figure 4-5)

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Sales Organization with Product- Specialized Sales Force Chief Marketing Executive Sales Manager Product A Advertising Manager Marketing Research Manager General Sales Manager Sales Promotion Manager Customer Relations Manager Salespeople Product A Sales Manager Product C Salespeople Product C (Figure 4-6) Sales Manager Product B Salespeople Product B

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Sales Organization with Product- Managers as Staff Specialists Chief Marketing Executive Advertising Manager Marketing Research Manager General Sales Manager Manager Product A (Figure 4-7) Assistant Sales Manager Salespeople Manager Product B Manager Product C

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Sales Organization Specialized by Type of Customer Chief Marketing Executive Sales Manager Transportation Industry Advertising Manager Marketing Research Manager General Sales Manager Sales Promotion Manager Customer Relations Manager Salespeople Sales Manager Petroleum Industry Salespeople (Figure 4-8) Sales Manager Steel Industry Salespeople

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Organizational Options for the 2000s (Figure 4-9) Organizational Options for the 2000s Strategic account management Team selling E-commerce and telemarketing Independent reps

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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 Manufacturing R&D Engineering Marketing Exchange Process Purchasing Agent Sales- person Information Problem Solving Negotiation Friendship, Trust Product/Services Payment Reciprocity

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. (Figure 4-10) Captive versus independent sales rep (Figure 4-10) Captive versus independent sales rep $ Cost $ Sales Independent rep Captive rep

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