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6e SM Module04
6e SM Module04
Specialization
The degree to which individuals perform some of the
required tasks to the exclusion of others. Individuals
can become experts on certain tasks, leading to better
performance for the entire organization.
Centralization
The degree two which important decisions and tasks
performed at higher levels in the management
hierarchy. Centralized structures place authority and
responsibility at higher management levels.
Generalists Specialists
Some specialization
All selling activities Certain selling
of selling activities,
and all products to activities for certain
products, and/or
all customers products for certain
customers
customers
Management Levels
Sales
Manager
Span of Control
National Sales
Manager
Management Levels
Regional Sales Regional Sales
Manager Manager
Span of Control
High Envir.
Specialization uncertainty Nonroutine Adaptiveness
Low Envir.
Centralization Uncertainty Repetitive Effectiveness
Sales Training
Manager
Salespeople (150)
Salespeople (160)
Regular Complex
Small Account Account
Simple Complex
Complexity of Account
Organizational
Structure Advantages Disadvantages
• Low Cost
• Limited specialization
• No geographic duplication
• Lack of management
Geographic • No customer duplication
control over product or
• Fewer management levels
customer emphasis
Organizational
Structure Advantages Disadvantages
• Salespeople develop
better understanding of
unique customer needs • High cost
Market • Management control over • Geographic duplication
selling allocated to different
markets
• Geographic duplication
• Efficiency in performing
Functional selling activities
• Customer duplication
• Need for coordination
Western Eastern
Sales Manager Sales Manager
Sales
Sales Force
Force How many salespeople are required to provide the
Size desired amount of selling effort?
Size
Single
Single Factor
Factor
Models
Models
Low High
Analytical Portfolio
Portfolio Analytical
Rigor Models
Models Rigor
Decision
Decision
Models
Models
Competitive Position
Account Opportunity Strong Weak
High
Segment 1 Segment 2
Segment 3 Segment 4
Low
• Territory Considerations
– Trading areas
– Present effort
– Recommended effort
Analyze
Select Assess Finalize
Planning and Form Initial
Planning and Territory Territory
Control Unit Territories
Control Unit Workload Design
Opportunity