Lecture Notes on Sales Force Structure

Introduction

• Topic: Sales Force Structure
• Purpose: Organizing sales teams and aligning them to products, services, or clients
• Evolution:
  • 1960s: Product Orientation
  • Now: Market/Customer Orientation
  • Focus: Meeting customer needs for satisfaction and repeat business

Types of Sales Structures

1. Geographical Structure

   • Definition: Sales teams grouped by region
   • Benefits:
     • Better understanding of local customers and market
     • Knowledge of local laws and regulations
     • Cost and time efficiency
     • Supports local economy
   • Structure:
     • Sales Director → Regional Sales Manager → Area Sales Manager → Sales Manager
   • Examples:
     • Airline industry (e.g., AirAsia)
     • Telstra
     • Griffith University campuses

2. Product Specialization Structure

   • Definition: Sales teams focused on specific products
   • Benefits:
     • Specialized knowledge about products
     • Ability to provide detailed product information to customers
   • Structure:
     • Sales Director → Product Sales Manager → Salespeople for each department
   • Examples:
     • Hospitals (e.g., clinics for skin, GP, eyes)
     • Retail (e.g., Myer, Telstra)

3. Industry-Based Structure

   • Definition: Sales teams grouped by industry
   • Benefits:
     • Strong customer knowledge within the industry
     • Observing industry changes effectively
     • Well-known within industry
   • Examples:
     • Virgin Group (Airlines, radios, phones)

4. Account Size Structure

   • Definition: Sales teams organized by customer spending/size
   • Customer Tiers:
     • Key Account: High spenders
     • Middle-Size Account
     • Small Account: Low spenders
   • Benefits:
     • Better relationship and trust with key customers
     • Knowledge of customer preferences and buying habits
     • Resource allocation efficiency
   • Structure:
     • Key Account Manager → Salespeople for middle-size accounts → Telemarketers for small accounts
   • Consideration: Focus on key accounts to minimize spending on small accounts

Conclusion

• Sales structure can be an important section in major assignments
• Questions and further clarifications are encouraged

End of Lecture