Sales Management structure

Sales Management structure

It defines how sales job and tasks are formally divided, grouped, and coordinated in a sales organization.

Sales management structure ensures delegation and effective sales management and control.

Key elements
1. Job /work specialization 2. Chain of command 3. Span of control 4. Centralization and decentralization 5. Formalization

Factors influencing structure

a) Product and service related factors

b) Organization related factors

c) Marketing mix related factors

d) External

Product and service related factors

Nature of product and service In FMCG size is large due to large customer base and high demanding market.

Quantity of the products to be marketed and assortment

size decide the structure.

The structure will be complex depending on the quantity

of sale targeted per category

Organization related factors

Structure will be simple if enterprise is small in

product and customer base.

Organizations with specialized products and niche markets

have simple structure.

Size is large for firms with large production volume and sales happening with multiple channels. Organization with financial constraints engage intermediaries for distribution

Continued

Financially sound companies directly reach the consumers and those companies have complex sales organization. Centralized organization have simple structure Decentralized organization will have large and complex structure.

Marketing Mix related factors

Size of the market. Ex : MNC companies Companies with selective distribution strategy have simple structures Companies with intense distribution have complex structures. Pricing of goods can influence structure. Low priced goods with large markets have large sized organizations

Continued

High priced goods with limited market will have small sales organization. Aggressive sales policy follow a large and complicated

sales structure

External factors
Level of competition and past policies and traditions can determine the structure . In intense competitive environment organization tends to expand to serve and reach new and existing customers.

Changes in structure
Various factors that changed sales structure
1. New technologies like internet, telephones can provide alternate channels to reach the consumer. Ex: online buying 2. Now companies are becoming more customer driven.

3. Changing market conditions.

4. Reduction in the no of vendors. 5. Closer customer relationships. 6. Changes in the regulations and international prices due to rapid globalization

Sales Management Positions

Sales Management Positions

Its the different hierarchical roles of sales force in any
organization.

Requirements of the sales executive jobs vary from

company to company.

Sales executives role is more action oriented and less

planning oriented.

Sales Management is more concerned with present .

Sales Management Positions

It is possible to generalize about activities and

responsibilities of sales manager.

Most companies have concise statements of duties

associated with various positions known as job or position
descriptions.

Job description
Sales Manager

Reporting relationship : Sales manager district reports to

next higher authority in sales depending on the organization

structure. Ex : Regional managers, GM- Sales, VP-Sales etc

Job objective : To maximize the sales volume through

effective development and execution of sales program and

sales policies of all products sold by the division.

Duties and Responsibilities

a) Sales Program : He decides on the development of detailed

sales program to improve competitive positions, reduce selling and other distribution expenses . Establishing short and long range goals of the division with other executives Reviews and approves sales policies, sales strategies and pricing policies.

b) Organization : He or she establishes an effective plan of

organization and methods of controlling the activities of sales

force.

It can provide sufficient time to carry out full line of

departmental responsibilities.

Provide leadership , self development of sales force

c) Sales force management

Recruitment and development of new sales force.

Training to sales force.

Establishing a system of sales supervision that controls

waste and in efficiency.

Sales force motivation

d) Internal and external relations Developing effective working relations with other departments heads. Maintaining effective working relationship with sales, training and the other key personnel involved.

e) Communications Establishes a system of communications with other sales personnel and provide information about overall departmental sales objectives , results and problems. f) Control Reviews and approves sales and expense budgets. Consults production manager for precise inventory management.

f) Control Continued

Delegates authority and develop control records and

performance standards.

Ensuring proper balance of various activities.

Performance Criteria

Based on sales volume, profit contribution , sales plans

and turnover rate of sales personnel

Characteristics of successful sales man

a) Ability to understand and perform roles assigned by the company.

b) Leadership qualities.
c) Skill in recruiting, training and delegating duties to sales force. d) Good product and market knowledge. e) Proper planning and implementing skills. f) Effective client and employee relationships.

g) Time and client management.

h) Communication and convincing abilities