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Chapter 4 Organizing the Sales Force Questions with Correct Answers 2024
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Chapter 4 Organizing the Sales Force
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Chapter 4 Organizing the Sales ForceThe Increasing Importance of Sales Organization Decisions - answer Organizing
activities, sales force management are major parts of strategic sales planning Managers
becoming more proactive in restructuring Strong corporate vision, effective strategic
market planning are closely linked with how an organization is structured, interacts with
its customers
Purpose of Sales Organization - answer-Divide and arrange activities so the firm can
benefit from specialization of labor
-Provide for stability and continuity in firm's selling efforts
-Provide for coordination of activities assigned to sales force and to departments in the
firm
Division and Specialization of Labor - answer-increase productivity because each
specialist can concentrate efforts and become more proficient at the assigned task
-Divide required selling activites to gain maximum benefits within the salesforce
Line Organization - answer-Vertical
-Chain of command runs from chief sales executive down through levels of
subordinates
-Each subordinate responsible to one person
Line and Staff Organization - answer•Line and staff organization•Vertical (most
common)•Several sales management activities assigned to separate specialists
Stability and Continuity of Organizational Performance - answer-Organize activities
without regard to talents of current employees
•People can be trained to fill positions
•Same activities will be carried out even if designated individuals receive promotions or
leave
Coordination and Integration - answerAs an organization divides tasks among
specialists, they become more difficult to integrate
-Sales force activities must be integrated with customer needs
-Selling activities must be coordinated with other departments
-Tasks must be integrated among specialized units
Horizontal Structure - answerdivides selling activities among sales force
Vertical Structure - answerassigns authority for specific sales management activities
, Horizontal Structure of Sales Force - answerCompany sales force or outside agents?
Number and arrangement of sales force?
Product, customer, or functional assignments?
Responsibility for national accounts?
Foreign market sales and marketing?
Outsourcing the Sales Force- Types of Agents - answer-Manufacturer's representatives
-selling agents
Manufacturer's Representatives - answer•Sell part of the output of their principals
•Take neither ownership nor physical possession of goods
•Cover specific territory and specialize in limited range of complementary products
Selling Agents - answer•Do not take title or possession of the goods they sell
•Compensated by commissions
•Broad authority to modify prices and terms of sale
•Actively shape manufacturer's promotional and sales programs
Outsourcing Considerations - answerEconomic criteria
Control
Transactions costs
Strategic flexibility
Geographic Organization - answer-Simplest and most common method
-Individual salespeople assigned to separate geographic territories
-Responsible for performing all activities necessary to sell all products
•Lowest costs
•Travel time and expenses minimized
•Sales administration and overhead costs kept low
•Does not provide benefits associated with specialization of labor
Pros of Product Organization - answer-Salespeople master effective selling methods for
single or related products
-Closer alignment of sales and production
-Sales management controls allocation of selling effort across the line
Cons of Product Organization - answerduplication of effort
Pros of Organization by Customer type or Market - answer•Better understanding of
customer needs
•Increased familiarity with certain businesses
•Increased control over allocation of selling effort
Cons of Organization by Customer Type or Market - answer•Possible higher selling and
administrative costs
•Duplication of effort
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