Page 72 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes Lines organisation is extensively used in smaller firms or those dealing in a narrow product
line, or selling in a limited geographical area. It places great demand on time and abilities of the
top sales executives as all field reporting's finally come to him. Operational details of managing
the sales department takes up a large part of line executives time. He is at times forced to take
decisions without benefit of adequate planning.
Line organisation becomes inappropriate in case of a rapidly growing organisation or those
with large sales staff as growing department necessitates additional layers of executives to be
added.

Figure 5.2: Line Marketing Organisation

Vice President Sales

General Manager

Regional Regional Regional Regional
Manager 1 Manager 2 Manager 3 Manager 4

Line Sales Organisation

General Manager

Sales Manager

Assistant Sales Assistant Sales Assistant Sales Assistant Sales
Manager Manager Manager Manager
Division 1 Division 2 Division 3 Division 4

Sales People Sales People Sales People Office Staff

5.7 Customer Channel Division of Line Authority

When the line authority becomes a burden because of increasing number of people to supervise,
there are many options available for the organisation. One of the options is to add a general line
assistant. Another option is to divide the line authority on the basis of customer or marketing
channel.
Customer division of line of authority is suitable when almost similar products are sold in the
market and are marketed to different types of customers. It is also done when selling problems
to each type are different. When the same, or identical, products are sold to a number of industries
they often find different applications in each industry. Customers not only have different needs,
they are influenced by different buying motives. Thus, special sales forces sell to each major
type of customer.

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