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Unit 12: Sales Management
7. Role playing is one of the popular training methods used by sales organizations. Notes
8. Control of sales organisation extends to a firm’s selling methods, distributors, customers
and sales force.
9. Most sales companies use straight salary compensation plan.
12.4 Structure of Sales Organisation
Sales force consists of sales persons who work primarily with customers in person, although
they may also use the telephone or assistance from computer links to expedite orders and
provide customer service. The structure of a field sales force is usually based on some means of
specialisation, such as geography, market, product, or activity/function, or a hybrid of these
types.
The following are the important field sales:
1. Geographic sales specialisation organisation
2. Product-based sales specialisation organisation
3. Customer-based specialisation organisation
4. Activity/function-based specialisation
5. Hybrid sales organisation
6. Team-based organisation
7. Matrix Management Organisation.
12.4.1 Geographic Sales Organisation
The most common means of specialisation of the sales force is by geographic region. In a
geographically based sales force, a salesperson has to visit all current and potential customers in
a given geographic territory. Figure 12.1 shows a geographic specialisation for the sales force of
a large FMCG Company.
Figure 12.1: Geographic Sales Organisation
Some advantages of geographic organisations are (1) Proper coverage of territory (2) Defining
the responsibility (3) Familiarity with local economic and competitive conditions, making
them better able to serve local customers.
The disadvantages of geographic specialisation is that the salespersons need to be responsible
for the entire product line in their territory even though they may not be having uniform
knowledge about all products. Further, within their territory, they may choose to concentrate
on products and customers that are easy prospects.
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