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Sales Management

Notes Horizontal Sales Organisation

In this type of sales organisation the number of management levels are small and the number of
managers at a particular level is large.

Figure 5.8: Horizontal Sales Organisation

In vertical sales organisation we see a narrow space of control and in horizontal sales organisation
a wide span of control. Span of control is the number of subordinates that can be handled
effectively by a superior.
Field Sales organisation is the group of sales force that work in the field periodically with
retailers and customers in person. They send reports to the company and they are some kind of
specialist. They can be important specialist, product specialists, or a coordinator of these are
these force have organised based a product, market or customer, we can also have a combined
based organization.

Figure 5.9: Product based Sales Organisation

This is practiced in very big companies where the area to be covered is very large and a large and
a larger no. of product lines are to be marketed.
As Salesman are dealing only in one product they get in a dept knowledge and specialisation. In
this type of organisation the activities are duplicated.

Customer based Sales Organisation

The organisation can also be customer based i.e. salesman catering to different type of customers.
A company making computers can have salesman catering to Govt. offices, commercial, houses,
individuals (Businessman, doctors, students etc.)

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