1. Chapter 4 Sales Force Organization Listen to the customer and act on what they tell you. Pat Nathan, Vice President Dell Computer Corp

2. Principles of Organization Design • Organizational structure should reflect a marketing orientation • Organization should be built around activities, not around people • Responsibility and authority should be related properly • Span of executive control should be reasonable • Organization should be stable but not flexible • Activities should be balanced and coordinated

3. Line-and-Staff Sales Organization (Figure 4-2) Chief Marketing Executive Advertising Manager MarketingResearchManager GeneralSalesManager SalesAnalysisManager SalesPromotionManager Salespeople Line authority Staff advisory authority

4. Functional Sales Organization (Figure 4-3) Chief Marketing Executive Advertising Manager MarketingResearchManager GeneralSalesManager SalesPromotionManager CreditManager Salespeople Line authority Staff advisory authority

5. The Horizontal Corporation (Figure 4-4) Manufacturing TeamSystems Engineering ProductionQuality Control Product Design and Development TeamCustomer ResearchCustomer AnalysisDesign Engineering Strategic Planning TeamVP Strategic PlanningVP Finance & InformationChief Operating OfficerHuman ResourcesAdministration Customer Fulfillment TeamPricing and PromotionSalesDistribution Customer Support TeamInformationTrainingServiceResearch

6. Geographical Sales Organization (Figure 4-5) Chief Marketing Executive Advertising Manager MarketingResearchManager GeneralSalesManager SalesAnalyst SalesPromotionManager Western RegionalSales Manager Eastern RegionalSales Manager 4 DistrictSales Managers 4 DistrictSales Managers Salespeople eachwith own territory Salespeople eachwith own territory

7. Sales Organization with Product-Specialized Sales Force (Figure 4-6) Chief Marketing Executive Advertising Manager MarketingResearchManager GeneralSalesManager CustomerRelationsManager SalesPromotionManager Sales ManagerProduct A Sales ManagerProduct B Sales ManagerProduct C SalespeopleProduct A SalespeopleProduct B SalespeopleProduct C

8. Sales Organization with Product-Managers as Staff Specialists (Figure 4-7) Chief Marketing Executive Advertising Manager MarketingResearchManager GeneralSalesManager ManagerProduct A ManagerProduct C ManagerProduct B Assistant SalesManager Salespeople

9. Sales Organization Specialized by Type of Customer (Figure 4-8) Chief Marketing Executive Advertising Manager MarketingResearchManager GeneralSalesManager CustomerRelationsManager SalesPromotionManager Sales ManagerTransportation Industry Sales ManagerSteel Industry Sales ManagerPetroleum Industry Salespeople Salespeople Salespeople

10. Organizational Options for the 2000s (Figure 4-9) Strategic account management E-commerce and telemarketing Independentreps Organizational Options for the 2000s Team selling

11. The Relationship Between A Sales Team and a Buying Center Organizational selling center Marketing Sales Manufacturing R&D Engineering Physical Distribution Purchasing Agent Exchange Process Sales-person Organizational buying center Purchasing Manufacturing R&D Engineering Marketing Information Problem Solving Negotiation Friendship, Trust Product/ServicesPayment Reciprocity

12. (Figure 4-10) Captive versus independent sales rep $ Cost Independent rep Captive rep $ Sales

13. Uses of Telemarketing • Identify prospective customers • Screening, qualifying leads • Sales solicitation: small customers, re-orders • Order processing • Product service support • Account management • Customer relations • Competitive reporting • Expense reporting