Archive for the 'Marketing' Category

Sales Management

Author: admin
05 19th, 2008

The sales organization helps salespeople and sales managers perform required tasks in an efficient and effective manner

The structure of the sales organization is a key driver in helping salespeople and sales managers perform required tasks in an efficient and effective manner. There are four different types of sales organization structure, comprising of; geographic sales organization, product sales organization, market sales organization and functional sales organization. All four structures have both advantages and disadvantages.

The geographic sales organization structure is where “sales people are assigned a geographic area and are responsible for all selling activities to all accounts within the assigned area. There is no attempt to specialize by product, market, or function” (Ingram et al. 2004, pp. 81) The advantages of the geographic sales organization are that it is low cost as most geographic areas are covered by one salesperson only. Having only one resource per geographic area also acts as an advantage by erasing customer and geographic duplication. Disadvantages of the geographic sales organization include limited specialization and lack of management control over product or customer emphasis. Limited specialization is a consequence of fewer management levels. Employees are required to be multi-tasked and perform a variety of functions, inhibiting the ability to become specialized in an area, and becoming more efficient and effective in that area over time.

The product sales organization is highly specialized, involving salespeople being responsible for the selling of a certain product or product line, “the objective is for salespeople to become experts in the assigned product categories” (Ingram et al. 2004, pp. 82). This sales organization structure can be split on more than one level of product specialization, for example an insurance company may use one selling team to specialize in the selling of travel insurance and another team to specialize in the selling of home contents insurance. An advantage of this is the salespeople become experts in a particular product increasing sales confidence and customer satisfaction. The disadvantage is the two teams are likely to “cross over” on each other territories, resulting in geographic and customer duplication. Customer dissatisfaction is also likely as the customer needs and wants were not able to be satisfied on the one visit, as the sales representative specialization is limited to one product only. Another disadvantage of the product sales organization is the high cost as more staff and training is required.

The market sales organization is becoming increasingly popular amongst today’s organizations. “The basic objective of market specialization is to ensure that salespeople understand how customers use and purchase their products. Salespeople should then be able to direct their efforts to satisfy customers needs better”. (Ingram et al. 2004, pp. 83). An advantage of this type of organization structure is that staff become specialized in a number of tasks and is able to meet all needs of the customer. They have a better understanding of the product. Disadvantages of the market sales organization are high costs and possible geographic duplication.

The final organization structure is the functional sales organization, this is a two-tiered sales organization with separate functions. This organization is mostly used for products that require considerable service after the sale and different skills for the selling of the product. The advantage of this is specialization leading to efficiency in performing selling activities. Disadvantages include geographic and customer duplication. Customer dissatisfaction may also take place as the customer may dislike the change in salespeople and sales people sometimes dislike the change in customers.

As you can see the structure of the sales organization has both its advantages and disadvantage in helping salespeople and sales managers perform required tasks in an efficient and effective manner. Not one organization is suited completely to a sales organization, therefore most organizations tend to use a mixture of each structure to maximise the advantages and minimise the disadvantages.

Sales organization structures are the vehicle through which strategic plans are translated into selling operations in the market place

For the successful implementation of organizational strategies, sales management must adapt a sales organization structure, in tune with its particular selling situation. There are many pros and cons of the sales organization being the vehicle through which strategic plans are translated into selling operations in the market place.

The sales organization is extremely complex and a firm is not often suited to one organization sales structure alone, it is not uncommon for firms to combine several characteristics of each sales organization structure, otherwise known as a hybrid sales organization. The sales organization must complement the selling situation for strategies to succeed. The complexity of the sales organization structure can have a negative impact by leading firms into developing an inappropriate sales organization structure to the selling situation, and therefore organizational strategies are not met or attained in the most effective and efficient manner. As a selling situation changes so must the sales organization, the complexity of the sales structure makes this a very difficult task for firms, however, if implemented correctly the firm will reap the benefits as strategic plans will be met in an efficient and effective manner.

An important advantage of the sales organization being a vehicle through which strategic plans are translated into selling operations in the market place, is that management has direct control of strategic plans through the structure. For example as outlined in “sales management can balance the skew between the selling effort or selling skill by employing a generalised or specialized salesforce” (Ingram et al. 2004, pp. 80). Therefore controlling the organization structure in order to meet strategic plans.

Strategic changes almost always necessitate adjustments in sales organization structure

Strategic strategies must be consistent at all levels of the sales organization structure, and therefore a change at one level will almost always necessitate in changes to the sales organization at other levels. This can act as an advantage to a firm as it ensures all levels of the organization are aligned and working towards the same organizational goal, promoting consistency and efficiency.

The sales organization structure is extremely complex so continually reworking this structure to align with strategic strategies can prove disfavorable. Staff can loose momemuntum and lack motivation the sales organization is restructed on a frequent basis. Specialization will not occur and selling tasks will not be carried out in an efficient and effective manner. As you can see there are many disadvantages in strategic changes almost always necessitating in adjustments to the sales organization.

Sales organization structures can be extremely complex with many boxes and arrows

The sales organization structure must ensure that all required selling and management activities are performed and therefore can be extremely complex with many boxes and arrows

A complex sales organization structure can result by incorporating several structure types into one, resulting as an advantage by maximising the advantages and minimising the disadvantages in the selling effort. Combining several elements of the sales organization structures acts as another advantage to complex sales organization structure in that it ensures all selling and management activities are performed.

A disadvantage of having an extremely complex sales organization, with may boxes and arrows, is the difficulty in designing and the maintenance of such a structure. Strategic changes at one level require changes at other organizational levels, as all levels must be consistent and interrelated to become effective.

The sales organization helps salespeople and sales managers perform required tasks in an efficient and effective manner

The structure of the sales organization is a key driver in helping salespeople and sales managers perform required tasks in an efficient and effective manner. There are four different types of sales organization structure, comprising of; geographic sales organization, product sales organization, market sales organization and functional sales organization. All four structures have both advantages and disadvantages.

The geographic sales organization structure is where “sales people are assigned a geographic area and are responsible for all selling activities to all accounts within the assigned area. There is no attempt to specialize by product, market, or function” (Ingram et al. 2004, pp. 81) The advantages of the geographic sales organization are that it is low cost as most geographic areas are covered by one salesperson only. Having only one resource per geographic area also acts as an advantage by erasing customer and geographic duplication. Disadvantages of the geographic sales organization include limited specialization and lack of management control over product or customer emphasis. Limited specialization is a consequence of fewer management levels. Employees are required to be multi-tasked and perform a variety of functions, inhibiting the ability to become specialized in an area, and becoming more efficient and effective in that area over time.

The product sales organization is highly specialized, involving salespeople being responsible for the selling of a certain product or product line, “the objective is for salespeople to become experts in the assigned product categories” (Ingram et al. 2004, pp. 82). This sales organization structure can be split on more than one level of product specialization, for example an insurance company may use one selling team to specialize in the selling of travel insurance and another team to specialize in the selling of home contents insurance. An advantage of this is the salespeople become experts in a particular product increasing sales confidence and customer satisfaction. The disadvantage is the two teams are likely to “cross over” on each other territories, resulting in geographic and customer duplication. Customer dissatisfaction is also likely as the customer needs and wants were not able to be satisfied on the one visit, as the sales representative specialization is limited to one product only. Another disadvantage of the product sales organization is the high cost as more staff and training is required.

The market sales organization is becoming increasingly popular amongst today’s organizations. “The basic objective of market specialization is to ensure that salespeople understand how customers use and purchase their products. Salespeople should then be able to direct their efforts to satisfy customers needs better”. (Ingram et al. 2004, pp. 83). An advantage of this type of organization structure is that staff become specialized in a number of tasks and is able to meet all needs of the customer. They have a better understanding of the product. Disadvantages of the market sales organization are high costs and possible geographic duplication.

The final organization structure is the functional sales organization, this is a two-tiered sales organization with separate functions. This organization is mostly used for products that require considerable service after the sale and different skills for the selling of the product. The advantage of this is specialization leading to efficiency in performing selling activities. Disadvantages include geographic and customer duplication. Customer dissatisfaction may also take place as the customer may dislike the change in salespeople and sales people sometimes dislike the change in customers.

As you can see the structure of the sales organization has both its advantages and disadvantage in helping salespeople and sales managers perform required tasks in an efficient and effective manner. Not one organization is suited completely to a sales organization, therefore most organizations tend to use a mixture of each structure to maximise the advantages and minimise the disadvantages.

Sales organization structures are the vehicle through which strategic plans are translated into selling operations in the market place

For the successful implementation of organizational strategies, sales management must adapt a sales organization structure, in tune with its particular selling situation. There are many pros and cons of the sales organization being the vehicle through which strategic plans are translated into selling operations in the market place.

The sales organization is extremely complex and a firm is not often suited to one organization sales structure alone, it is not uncommon for firms to combine several characteristics of each sales organization structure, otherwise known as a hybrid sales organization. The sales organization must complement the selling situation for strategies to succeed. The complexity of the sales organization structure can have a negative impact by leading firms into developing an inappropriate sales organization structure to the selling situation, and therefore organizational strategies are not met or attained in the most effective and efficient manner. As a selling situation changes so must the sales organization, the complexity of the sales structure makes this a very difficult task for firms, however, if implemented correctly the firm will reap the benefits as strategic plans will be met in an efficient and effective manner.

An important advantage of the sales organization being a vehicle through which strategic plans are translated into selling operations in the market place, is that management has direct control of strategic plans through the structure. For example as outlined in “sales management can balance the skew between the selling effort or selling skill by employing a generalised or specialized salesforce” (Ingram et al. 2004, pp. 80). Therefore controlling the organization structure in order to meet strategic plans.

Strategic changes almost always necessitate adjustments in sales organization structure

Strategic strategies must be consistent at all levels of the sales organization structure, and therefore a change at one level will almost always necessitate in changes to the sales organization at other levels. This can act as an advantage to a firm as it ensures all levels of the organization are aligned and working towards the same organizational goal, promoting consistency and efficiency.

The sales organization structure is extremely complex so continually reworking this structure to align with strategic strategies can prove disfavorable. Staff can loose momemuntum and lack motivation the sales organization is restructed on a frequent basis. Specialization will not occur and selling tasks will not be carried out in an efficient and effective manner. As you can see there are many disadvantages in strategic changes almost always necessitating in adjustments to the sales organization.

Sales organization structures can be extremely complex with many boxes and arrows

The sales organization structure must ensure that all required selling and management activities are performed and therefore can be extremely complex with many boxes and arrows

A complex sales organization structure can result by incorporating several structure types into one, resulting as an advantage by maximising the advantages and minimising the disadvantages in the selling effort. Combining several elements of the sales organization structures acts as another advantage to complex sales organization structure in that it ensures all selling and management activities are performed.

A disadvantage of having an extremely complex sales organization, with may boxes and arrows, is the difficulty in designing and the maintenance of such a structure. Strategic changes at one level require changes at other organizational levels, as all levels must be consistent and interrelated to become effective.

The sales organization helps salespeople and sales managers perform required tasks in an efficient and effective manner

The structure of the sales organization is a key driver in helping salespeople and sales managers perform required tasks in an efficient and effective manner. There are four different types of sales organization structure, comprising of; geographic sales organization, product sales organization, market sales organization and functional sales organization. All four structures have both advantages and disadvantages.

The geographic sales organization structure is where “sales people are assigned a geographic area and are responsible for all selling activities to all accounts within the assigned area. There is no attempt to specialize by product, market, or function” (Ingram et al. 2004, pp. 81) The advantages of the geographic sales organization are that it is low cost as most geographic areas are covered by one salesperson only. Having only one resource per geographic area also acts as an advantage by erasing customer and geographic duplication. Disadvantages of the geographic sales organization include limited specialization and lack of management control over product or customer emphasis. Limited specialization is a consequence of fewer management levels. Employees are required to be multi-tasked and perform a variety of functions, inhibiting the ability to become specialized in an area, and becoming more efficient and effective in that area over time.

The product sales organization is highly specialized, involving salespeople being responsible for the selling of a certain product or product line, “the objective is for salespeople to become experts in the assigned product categories” (Ingram et al. 2004, pp. 82). This sales organization structure can be split on more than one level of product specialization, for example an insurance company may use one selling team to specialize in the selling of travel insurance and another team to specialize in the selling of home contents insurance. An advantage of this is the salespeople become experts in a particular product increasing sales confidence and customer satisfaction. The disadvantage is the two teams are likely to “cross over” on each other territories, resulting in geographic and customer duplication. Customer dissatisfaction is also likely as the customer needs and wants were not able to be satisfied on the one visit, as the sales representative specialization is limited to one product only. Another disadvantage of the product sales organization is the high cost as more staff and training is required.

The market sales organization is becoming increasingly popular amongst today’s organizations. “The basic objective of market specialization is to ensure that salespeople understand how customers use and purchase their products. Salespeople should then be able to direct their efforts to satisfy customers needs better”. (Ingram et al. 2004, pp. 83). An advantage of this type of organization structure is that staff become specialized in a number of tasks and is able to meet all needs of the customer. They have a better understanding of the product. Disadvantages of the market sales organization are high costs and possible geographic duplication.

The final organization structure is the functional sales organization, this is a two-tiered sales organization with separate functions. This organization is mostly used for products that require considerable service after the sale and different skills for the selling of the product. The advantage of this is specialization leading to efficiency in performing selling activities. Disadvantages include geographic and customer duplication. Customer dissatisfaction may also take place as the customer may dislike the change in salespeople and sales people sometimes dislike the change in customers.

As you can see the structure of the sales organization has both its advantages and disadvantage in helping salespeople and sales managers perform required tasks in an efficient and effective manner. Not one organization is suited completely to a sales organization, therefore most organizations tend to use a mixture of each structure to maximise the advantages and minimise the disadvantages.

Sales organization structures are the vehicle through which strategic plans are translated into selling operations in the market place

For the successful implementation of organizational strategies, sales management must adapt a sales organization structure, in tune with its particular selling situation. There are many pros and cons of the sales organization being the vehicle through which strategic plans are translated into selling operations in the market place.

The sales organization is extremely complex and a firm is not often suited to one organization sales structure alone, it is not uncommon for firms to combine several characteristics of each sales organization structure, otherwise known as a hybrid sales organization. The sales organization must complement the selling situation for strategies to succeed. The complexity of the sales organization structure can have a negative impact by leading firms into developing an inappropriate sales organization structure to the selling situation, and therefore organizational strategies are not met or attained in the most effective and efficient manner. As a selling situation changes so must the sales organization, the complexity of the sales structure makes this a very difficult task for firms, however, if implemented correctly the firm will reap the benefits as strategic plans will be met in an efficient and effective manner.

An important advantage of the sales organization being a vehicle through which strategic plans are translated into selling operations in the market place, is that management has direct control of strategic plans through the structure. For example as outlined in “sales management can balance the skew between the selling effort or selling skill by employing a generalised or specialized salesforce” (Ingram et al. 2004, pp. 80). Therefore controlling the organization structure in order to meet strategic plans.

Strategic changes almost always necessitate adjustments in sales organization structure

Strategic strategies must be consistent at all levels of the sales organization structure, and therefore a change at one level will almost always necessitate in changes to the sales organization at other levels. This can act as an advantage to a firm as it ensures all levels of the organization are aligned and working towards the same organizational goal, promoting consistency and efficiency.

The sales organization structure is extremely complex so continually reworking this structure to align with strategic strategies can prove disfavorable. Staff can loose momemuntum and lack motivation the sales organization is restructed on a frequent basis. Specialization will not occur and selling tasks will not be carried out in an efficient and effective manner. As you can see there are many disadvantages in strategic changes almost always necessitating in adjustments to the sales organization.

Sales organization structures can be extremely complex with many boxes and arrows

The sales organization structure must ensure that all required selling and management activities are performed and therefore can be extremely complex with many boxes and arrows

A complex sales organization structure can result by incorporating several structure types into one, resulting as an advantage by maximising the advantages and minimising the disadvantages in the selling effort. Combining several elements of the sales organization structures acts as another advantage to complex sales organization structure in that it ensures all selling and management activities are performed.

A disadvantage of having an extremely complex sales organization, with may boxes and arrows, is the difficulty in designing and the maintenance of such a structure. Strategic changes at one level require changes at other organizational levels, as all levels must be consistent and interrelated to become effective.

The sales organization helps salespeople and sales managers perform required tasks in an efficient and effective manner

The structure of the sales organization is a key driver in helping salespeople and sales managers perform required tasks in an efficient and effective manner. There are four different types of sales organization structure, comprising of; geographic sales organization, product sales organization, market sales organization and functional sales organization. All four structures have both advantages and disadvantages.

The geographic sales organization structure is where “sales people are assigned a geographic area and are responsible for all selling activities to all accounts within the assigned area. There is no attempt to specialize by product, market, or function” (Ingram et al. 2004, pp. 81) The advantages of the geographic sales organization are that it is low cost as most geographic areas are covered by one salesperson only. Having only one resource per geographic area also acts as an advantage by erasing customer and geographic duplication. Disadvantages of the geographic sales organization include limited specialization and lack of management control over product or customer emphasis. Limited specialization is a consequence of fewer management levels. Employees are required to be multi-tasked and perform a variety of functions, inhibiting the ability to become specialized in an area, and becoming more efficient and effective in that area over time.

The product sales organization is highly specialized, involving salespeople being responsible for the selling of a certain product or product line, “the objective is for salespeople to become experts in the assigned product categories” (Ingram et al. 2004, pp. 82). This sales organization structure can be split on more than one level of product specialization, for example an insurance company may use one selling team to specialize in the selling of travel insurance and another team to specialize in the selling of home contents insurance. An advantage of this is the salespeople become experts in a particular product increasing sales confidence and customer satisfaction. The disadvantage is the two teams are likely to “cross over” on each other territories, resulting in geographic and customer duplication. Customer dissatisfaction is also likely as the customer needs and wants were not able to be satisfied on the one visit, as the sales representative specialization is limited to one product only. Another disadvantage of the product sales organization is the high cost as more staff and training is required.

The market sales organization is becoming increasingly popular amongst today’s organizations. “The basic objective of market specialization is to ensure that salespeople understand how customers use and purchase their products. Salespeople should then be able to direct their efforts to satisfy customers needs better”. (Ingram et al. 2004, pp. 83). An advantage of this type of organization structure is that staff become specialized in a number of tasks and is able to meet all needs of the customer. They have a better understanding of the product. Disadvantages of the market sales organization are high costs and possible geographic duplication.

The final organization structure is the functional sales organization, this is a two-tiered sales organization with separate functions. This organization is mostly used for products that require considerable service after the sale and different skills for the selling of the product. The advantage of this is specialization leading to efficiency in performing selling activities. Disadvantages include geographic and customer duplication. Customer dissatisfaction may also take place as the customer may dislike the change in salespeople and sales people sometimes dislike the change in customers.

As you can see the structure of the sales organization has both its advantages and disadvantage in helping salespeople and sales managers perform required tasks in an efficient and effective manner. Not one organization is suited completely to a sales organization, therefore most organizations tend to use a mixture of each structure to maximise the advantages and minimise the disadvantages.

Sales organization structures are the vehicle through which strategic plans are translated into selling operations in the market place

For the successful implementation of organizational strategies, sales management must adapt a sales organization structure, in tune with its particular selling situation. There are many pros and cons of the sales organization being the vehicle through which strategic plans are translated into selling operations in the market place.

The sales organization is extremely complex and a firm is not often suited to one organization sales structure alone, it is not uncommon for firms to combine several characteristics of each sales organization structure, otherwise known as a hybrid sales organization. The sales organization must complement the selling situation for strategies to succeed. The complexity of the sales organization structure can have a negative impact by leading firms into developing an inappropriate sales organization structure to the selling situation, and therefore organizational strategies are not met or attained in the most effective and efficient manner. As a selling situation changes so must the sales organization, the complexity of the sales structure makes this a very difficult task for firms, however, if implemented correctly the firm will reap the benefits as strategic plans will be met in an efficient and effective manner.

An important advantage of the sales organization being a vehicle through which strategic plans are translated into selling operations in the market place, is that management has direct control of strategic plans through the structure. For example as outlined in “sales management can balance the skew between the selling effort or selling skill by employing a generalised or specialized salesforce” (Ingram et al. 2004, pp. 80). Therefore controlling the organization structure in order to meet strategic plans.

Strategic changes almost always necessitate adjustments in sales organization structure

Strategic strategies must be consistent at all levels of the sales organization structure, and therefore a change at one level will almost always necessitate in changes to the sales organization at other levels. This can act as an advantage to a firm as it ensures all levels of the organization are aligned and working towards the same organizational goal, promoting consistency and efficiency.

The sales organization structure is extremely complex so continually reworking this structure to align with strategic strategies can prove disfavorable. Staff can loose momemuntum and lack motivation the sales organization is restructed on a frequent basis. Specialization will not occur and selling tasks will not be carried out in an efficient and effective manner. As you can see there are many disadvantages in strategic changes almost always necessitating in adjustments to the sales organization.

Sales organization structures can be extremely complex with many boxes and arrows

The sales organization structure must ensure that all required selling and management activities are performed and therefore can be extremely complex with many boxes and arrows

A complex sales organization structure can result by incorporating several structure types into one, resulting as an advantage by maximising the advantages and minimising the disadvantages in the selling effort. Combining several elements of the sales organization structures acts as another advantage to complex sales organization structure in that it ensures all selling and management activities are performed.

A disadvantage of having an extremely complex sales organization, with may boxes and arrows, is the difficulty in designing and the maintenance of such a structure. Strategic changes at one level require changes at other organizational levels, as all levels must be consistent and interrelated to become effective.

The sales organization helps salespeople and sales managers perform required tasks in an efficient and effective manner

The structure of the sales organization is a key driver in helping salespeople and sales managers perform required tasks in an efficient and effective manner. There are four different types of sales organization structure, comprising of; geographic sales organization, product sales organization, market sales organization and functional sales organization. All four structures have both advantages and disadvantages.

The geographic sales organization structure is where “sales people are assigned a geographic area and are responsible for all selling activities to all accounts within the assigned area. There is no attempt to specialize by product, market, or function” (Ingram et al. 2004, pp. 81) The advantages of the geographic sales organization are that it is low cost as most geographic areas are covered by one salesperson only. Having only one resource per geographic area also acts as an advantage by erasing customer and geographic duplication. Disadvantages of the geographic sales organization include limited specialization and lack of management control over product or customer emphasis. Limited specialization is a consequence of fewer management levels. Employees are required to be multi-tasked and perform a variety of functions, inhibiting the ability to become specialized in an area, and becoming more efficient and effective in that area over time.

The product sales organization is highly specialized, involving salespeople being responsible for the selling of a certain product or product line, “the objective is for salespeople to become experts in the assigned product categories” (Ingram et al. 2004, pp. 82). This sales organization structure can be split on more than one level of product specialization, for example an insurance company may use one selling team to specialize in the selling of travel insurance and another team to specialize in the selling of home contents insurance. An advantage of this is the salespeople become experts in a particular product increasing sales confidence and customer satisfaction. The disadvantage is the two teams are likely to “cross over” on each other territories, resulting in geographic and customer duplication. Customer dissatisfaction is also likely as the customer needs and wants were not able to be satisfied on the one visit, as the sales representative specialization is limited to one product only. Another disadvantage of the product sales organization is the high cost as more staff and training is required.

The market sales organization is becoming increasingly popular amongst today’s organizations. “The basic objective of market specialization is to ensure that salespeople understand how customers use and purchase their products. Salespeople should then be able to direct their efforts to satisfy customers needs better”. (Ingram et al. 2004, pp. 83). An advantage of this type of organization structure is that staff become specialized in a number of tasks and is able to meet all needs of the customer. They have a better understanding of the product. Disadvantages of the market sales organization are high costs and possible geographic duplication.

The final organization structure is the functional sales organization, this is a two-tiered sales organization with separate functions. This organization is mostly used for products that require considerable service after the sale and different skills for the selling of the product. The advantage of this is specialization leading to efficiency in performing selling activities. Disadvantages include geographic and customer duplication. Customer dissatisfaction may also take place as the customer may dislike the change in salespeople and sales people sometimes dislike the change in customers.

As you can see the structure of the sales organization has both its advantages and disadvantage in helping salespeople and sales managers perform required tasks in an efficient and effective manner. Not one organization is suited completely to a sales organization, therefore most organizations tend to use a mixture of each structure to maximise the advantages and minimise the disadvantages.

Sales organization structures are the vehicle through which strategic plans are translated into selling operations in the market place

For the successful implementation of organizational strategies, sales management must adapt a sales organization structure, in tune with its particular selling situation. There are many pros and cons of the sales organization being the vehicle through which strategic plans are translated into selling operations in the market place.

The sales organization is extremely complex and a firm is not often suited to one organization sales structure alone, it is not uncommon for firms to combine several characteristics of each sales organization structure, otherwise known as a hybrid sales organization. The sales organization must complement the selling situation for strategies to succeed. The complexity of the sales organization structure can have a negative impact by leading firms into developing an inappropriate sales organization structure to the selling situation, and therefore organizational strategies are not met or attained in the most effective and efficient manner. As a selling situation changes so must the sales organization, the complexity of the sales structure makes this a very difficult task for firms, however, if implemented correctly the firm will reap the benefits as strategic plans will be met in an efficient and effective manner.

An important advantage of the sales organization being a vehicle through which strategic plans are translated into selling operations in the market place, is that management has direct control of strategic plans through the structure. For example as outlined in “sales management can balance the skew between the selling effort or selling skill by employing a generalised or specialized salesforce” (Ingram et al. 2004, pp. 80). Therefore controlling the organization structure in order to meet strategic plans.

Strategic changes almost always necessitate adjustments in sales organization structure

Strategic strategies must be consistent at all levels of the sales organization structure, and therefore a change at one level will almost always necessitate in changes to the sales organization at other levels. This can act as an advantage to a firm as it ensures all levels of the organization are aligned and working towards the same organizational goal, promoting consistency and efficiency.

The sales organization structure is extremely complex so continually reworking this structure to align with strategic strategies can prove disfavorable. Staff can loose momemuntum and lack motivation the sales organization is restructed on a frequent basis. Specialization will not occur and selling tasks will not be carried out in an efficient and effective manner. As you can see there are many disadvantages in strategic changes almost always necessitating in adjustments to the sales organization.

Sales organization structures can be extremely complex with many boxes and arrows

The sales organization structure must ensure that all required selling and management activities are performed and therefore can be extremely complex with many boxes and arrows

A complex sales organization structure can result by incorporating several structure types into one, resulting as an advantage by maximising the advantages and minimising the disadvantages in the selling effort. Combining several elements of the sales organization structures acts as another advantage to complex sales organization structure in that it ensures all selling and management activities are performed.

A disadvantage of having an extremely complex sales organization, with may boxes and arrows, is the difficulty in designing and the maintenance of such a structure. Strategic changes at one level require changes at other organizational levels, as all levels must be consistent and interrelated to become effective.