Sales Organization Structure and Salesforce Deployment
Chapter 4: Sales Organization Structure and Salesforce Deployment
Ingram
LaForge
Avila
Schwepker Jr.
Williams
Sales Management: Analysis and Decision Making
1
Learning Objectives
Define the concepts of specialization, centralization, span of control versus management levels, and line versus staff positions.
Describe the ways salesforces might be specialized.
Evaluate the advantages and disadvantages of sales organization structures.
Name the important considerations in organizing strategic account management programs.
Explain how to determine the appropriate sales organization structure for a given selling situation.
Chapter 4: Sales Organization Structure and Salesforce Deployment
Ingram
LaForge
Avila
Schwepker Jr.
Williams
Sales Management: Analysis and Decision Making
2
Learning Objectives
Discuss salesforce deployment.
Explain three analytical approaches for determining allocation of selling effort.
Describe three methods for calculating sales force size.
Explain the importance of sales territories and list the steps in the territory design process.
Discuss the important “people” considerations in salesforce deployment.
Chapter 4: Sales Organization Structure and Salesforce Deployment
Ingram
LaForge
Avila
Schwepker Jr.
Williams
Sales Management: Analysis and Decision Making
3
Sales Organization Concepts
Chapter 4: Sales Organization Structure and Salesforce Deployment
Ingram
LaForge
Avila
Schwepker Jr.
Williams
Sales Management: Analysis and Decision Making
4
3
Specialization
Centralization
The degree to which individuals perform some of the required tasks to the exclusion of others.
The degree two which important decisions and tasks performed at higher levels in the management hierarchy.
Individuals can become experts on certain tasks, leading to better performance for the entire organization.
Centralized structures place authority and responsibility at higher management levels.
Sales Force Specialization Continuum
Some specialization
of selling activities,
products, and/or
customers
All selling activities
and all products to
all customers
Generalists
Certain selling activities for certain products for certain customers
Specialists
Chapter 4: Sales Organization Structure and Salesforce Deployment
Ingram
LaForge
Avila
Schwepker Jr.
Williams
Sales Management: Analysis and Decision Making
5
2
Flat Sales Organization
Span of Control
Management Levels
National Sales Manager
District Sales Manager
District Sales Manager
District Sales Manager
District Sales Manager
District Sales Manager
Span of Control vs. Management Levels
Chapter 4: Sales Organization Structure and Salesforce Deployment
Ingram
LaForge
Avila
Schwepker Jr.
Williams
Sales Management: Analysis and Decision Making
6
Tall Sales Organization
National Sales Manager
Span of Control
Management Levels
District Sales Manager
District Sales Manager
District Sales Manager
District Sales Manager
District Sales Manager
District Sales Manager
Regional Sales Manager