MEMBER OF GROUP :

ASRUL APRILIADI H
FAHMI MUHAMAD S
LUSIANA SRI RAHAYU
PAIYAN PARDEDE
D3 3B MPE

SALES MANAGEMENT
PRESENTATION

SALES
ORGANIZATION
STRUCTURE AND
SALESFORCE
DEPLOYMENT

SALES ORGANIZATION
The role of organization
in sales has been compared to that
CONCEPT
of the skeleton in the human body; it provides a framework
within which normal functions must take place. There is,
however, a degree of uniformity in the human skeleton
thatdoes not characterize the sales organization. Each firm has
its own objectives and problems, adiversind the structure of the
sales organization reflects this diversity.

THE BASIC CONCEPT

1. Specialization
2. Centralization
3. Span on Control versus Management Levels
4. Line Versus Staff Position

Specialization

Centralization
A centralized structure is one in which authority and
responsibility are placed at higher management levels. An
organization becomes more decentralized as tasks become the
responsibility of lower-level managers. Centralization is a relative
concept in that no organization is totally centralized or totally
decentralized.

Span of control vs Management Levels

Line versus Staff Positions

Selling Situation
Contingencies
Key decision in sales organization design relates to
specialization. Two basic questions must be
addressed:
1. Should the salesforce be specialized?
2. If the salesforce should be specialized, what
type of

specialization is most appropriate?

Sales Organization Structur

1.Geografic Sales Organization
2.Product sales Organization
3.Market Sales Organization
4.Functional Sales Organization

Geographic Sales Organization

Product Sales Organization

Market Sales Organization

Functional Sales
Organization

Advantages and Disadvantages

Sales Organization Structure

Salesforce Deployment
Decisions

1. Allocation of Selling Effort

2. SalesForce Size
Three Methods For Calculating Salesforce size :
> Breakdown Approach
Example : Assume that a firm forecasts sales of $50 million for next year. If salespeople generate
an average of $2 million in annual sales, then the firm needs 25 salespeople to achieve
the $50 million sales forecast:
Salesforce size $50,000,000/$2,000,000 25 salespeople
> Workload Approach
Number of salespeople
=
Total selling effort needed
Average selling effort per salesperson
For example, if a firm determines that 37,500 sales calls are needed in its market area
and a salesperson can make an average of 500 annual sales calls, then 75 salespeople are
needed to provide the desired level of selling effort:
Number of salespeople 37,500/500 75 salespeople
> Incremental Approach
The most rigorous approach for calculating salesforce size is the incremental
approach. Its basic concept is to compare the marginal profit contribution with the
marginal selling costs for each incremental salesperson.

3. Territory Designs

The Important people Considerations

in Salesforce Deployment
Sales

managers

should

always

consider

existing

relationships between salespeople and customers and

between salespeople and the sales organization before
making salesforce deployment changes. Many of these
people considerations have ethical consequences.

THANK YOU