Specialization within Sales Organization • Needed to increase effectiveness of sales force • Done by expanding basic sales organization • Basis of specialization • Geography • Type of product • Market • Combination of above • Criteria for selection – (1) nature of product, (2) sales force abilities, (3) demands of selling job, (4) customer and market facts Businesses of all sizes can use anything from markets and location to hierarchies and processes as a guide for deciding to whom employees report, who is responsible for decision making and whether they want a long or short chain of command. No code. In this structure, responsibilities are divvied up according to everyone’s place in the sales process – inside sales, account managers, product specialists, and so on. e. no customer duplication. With a geographical organizational structure, a business will organize its operations around specific locations. This may require a branch to be opened in a suitable geographic location in … For instance, if the mood on a specific product suddenly changes, the division can order more (or less) of that product or switch its marketing direction in light of local needs. You can also cherry pick the best parts of each system to develop a customized approach. In fact, there are at least four common structures besides the geographic structure, and there are dozens of variations on each theme. However, if a firm’s products or customers require specialized knowledge or if different buyers have different needs, then a geographical structure is unsuitable. Reviewed by: Michelle Seidel, B.Sc., LL.B., MBA. The company’s operations are divided into segments based on regional markets. These executives have the flexibility to adjust policies to suit the particular needs of the local market. Every sales force structure has its own set of pros and cons, so it’s important to form a structure that supports your company’s goals. Many multinationals organize geographically so that each location can manage its own salaries, employee hours, customer data, supplies and finances based on local norms and markets. The impact of this depends on how much decision-making freedom the geographic division is allowed. Optymyze gives leaders control over no-code development. Ingram LaForge Avila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 4: Sales Organization Structure and Sales Force Deployment Geographic Sales Organization National Sales Manager Zone Sales Managers (4) Zone Sales Managers (4) District Sales Managers (20) Salespeople (100) Salespeople (100) District Sales Managers (20) Eastern Region Sales … b. based on the premise that a mix of the different sales organization structures is always much better than any one. The divisional organizational structure organizes the activities of a business around geographical, market, or product and service groups. Other advantages of the geographic division structure include: The geographical structure allows for close communication with local customers. Irrespective of an organization’s market share or product success rate, it’s extremely important for them to conduct market research before launching new products/ services or introducing better or newer features. When the organization grows and develops business relations with customers in different geographic locations, however, it may be useful to decentralize control over the sales force activities. Ultimately, though, they report to the territory head for their wider geographic area and follow the corporate objectives set by HQ. For example – In a diverse and multi lingual country like India, global companies like Vodafone, Nike, Adidas have to come up with different marketing strategyfor different regions within the same country. Out-of-the-box workflow, reporting, and other user apps, Non-technical setup of data, rules, and models, Shared data model for cloud and virtual data management, Democratized data and user app development, Data, analytic, planning, and business automation, Multi-cloud, multi-data scalability and elasticity, Continuous integration and autonomous deployment, High volume, variety, and velocity data operations, Multi-platform, multi-system connected integration, Solution admin user enablement and support, Platform developer enablement and support, Cloud operations support and performance analytics, 4 Common Misconceptions about No-Code/Low-Code Platforms, Advantages and Disadvantages of Different Sales Structures. Full access to the no-code platform capabilities for building custom data and user apps. Geographic organisation is an organisation structure where company hierarchy is divided on the basis of geographic location in which company operates which is headed by a centralised head office. Optymyze delivers success with enablement and support. Based on an organization’s application of the common elements—common purpose, coordinated effort, division of labor, hierarchy of authority, as well as centralization/decentralization and formalization—the resulting structure will typically exhibit one of four broad departmental structures: functional, product, customer, and geographic. This organization clearly defines each salesperson’s job and fixes accountability. Geographic segmentation is when a business divides its market on the basis of geography. Her articles have appeared on numerous business sites including Typefinder, Women in Business, Startwire and Indeed.com. In sales forces of any size, changing the sales organization structure is an uphill battle. On the ground, each division might look like a standalone business. The geographical organizational structure is common in large, multinational companies, but it may also suit some medium-sized businesses. 20-219 GEOGRAPHIC SALES ORGANIZATION COMPREHENSION What is an advantage of a geographical sales organization? She practiced in various “Big Law” firms before launching a career as a business writer. Jayne Thompson earned an LL.B. The most common type of organizational structure, the functional structure, is your classic departmental arrangement where the business is organized according to job functions. a. more effective, specialized customer support b. minimized travel time, expenses, and duplication of selling effort c. smaller costs for sales calls d. reduced number of salespersons in the salesforce e. few required sales managers Answer: b Page(s): 532 LO: 4 … Self-service resources provided to users responsible for setting up and operating a business process automation solution. By assuring that all of your Sales Reps’ opportunities are centered in one general area (be that a single block of offices in New York City or a collection of five states … For instance, a midsized retail chain or fast-food chain with multiple outlets across the state may organize on a geographic basis. The company splits its operations into three core territories – Americas, EMEA and China/Asia-Pacific – with a geographic head for each territory (for instance, the president of EMEA operations). c. easier to implement than other sales organization structures. d. low cost. Uninterrupted flow of information, seamless user experience, and "plug and play" architecture. Structure relates to the organization of selling at the company, including sales compensation, territory design, account and lead assignments, and more. Though it’s very important to craft a complex sales force structure that supports company growth, 9 out of 10 sales organizations are struggling to find the sales structure that best suits their particular needs. Advantages:• Low cost • Proper territory management leads to low geographic duplication of effort • Low duplication of effort with customers (unless buyers are organizations that cross territories)Disadvantages:• Sales reps have a hard time developing product or market s… Centralized structures place authority and responsibility at higher management levels. Thus, a company organized on divisional lines could have operating groups for the United States or Europe, or for commercial customers , or for the green widget product line . Supplemental developers and specialists to help execute the more complex initiatives. Selecting the right sales force structure and documenting it thoroughly provides a host of organizational benefits: Now you’re ready to start building the unique sales management structure that best fits your organization – helping you improve performance, adapt your sales compensation strategy, and drive sales growth. Inquire about industry market analyses that detail geographic areas with concentrated interest in your offerings. Looking for a sales training provider for you or your organization? Built-in automated controls for governance of data, users, apps, and all system components. With product-based structure, the organization is structured around particular product lines. (B) Generally composed of a combination of the strategic account and geographic sales organization structures. Sales Development Representatives (SDRs): Also commonly referred to as Qualifiers/Prospectors. • Low cost• Proper territory management leads to low geographic duplication of effort• Low duplication of effort with customers (unless buyers are organizations that cross territories), • Sales reps have a hard time developing product or market specialization (unless the organization commits to specialized sales forces allocated by geography)• Territory sizing can be a challenge, resulting in uneven revenue/opportunity across geographies’. Each region has its own senior executive who sets the operating strategy for the stores within the region. It's a complex system, but if done properly, it can promote information sharing and more balanced decision making. Optymyze scales data and analytic process automation for the virtual enterprise. One one hand, you want to give each region enough freedom to react to local market conditions. There's usually a global CEO and top management suite who sit in the organization's headquarters and have oversight over all the regional divisions. A geographic structure can also be problematic in terms of company culture. Click on a company’s logo below to find more information about its programs and services. One option is the geographical organizational structure, which organizes its divisions based on – you guessed it – geography. A company selling in a national market often organizes its sales force (and sometimes other functions, including marketing) along geographic lines. This is also known as customer sales force structure, and it means that sales reps are grouped by customer or industry. Continuous integration, testing, and deployment, component reuse, and auto logs. Functional, product based, process based, matrix, circular – there are so many options for structuring your organization, division or team that it can be hard to know where to begin. No Code. Non-technical "citizen developers" with the ability to create user apps and automate even complex data and other business processes. ... sales and service divisions located all over the world. So, you'd have a marketing department, HR department, finance department and so on where all the marketers or salespeople are grouped together in a single team. For example, if you operate three retail stores – one in Houston, one in Oklahoma City and one in Santa Fe – it could be easier logistically and for state filing and regulation purposes to divide your operations by geography. Expo-documents against acceptancert Department: Exports are often looked after by a company’s marketing or sales department in the initial stages when the volume of exports sales is low. The organization may miss out on economies of scale if each geography is duplicating jobs, supplies, resources, know-how and functions. The matrix structure is a flexible structure that does not follow a traditional hierarchy. Practically speaking, most organizations use some hybrid of the sales organization structures I’ll outline here, with sales force size and market segmentation serving as prime considerations. If the market in a particular geography changes, then the local division can react swiftly. Visit your library reference desk. This is also known as territorial sales force structure, and it means that the organization assigns each sales rep to a certain geographic area. It makes sense to divide an organization by geography if different customer preferences, languages, cultures and ways of doing business exist in the areas where the business operates. Specifically, the company will split its operations into different regions or territories such as the "North America Division" or the "Europe, Middle East and Africa (EMEA) Division.". The geographic structure features characteristics of the functional structure, as each geographic division typically will arrange its people and resources in functional teams. When salespeople don’t perform at their best, leaders often point fingers at sales compensation or strategy – but these sorts of problems often stem from the company’s sales structure. Corporate Finance Institute: Corporate Structure, HubSpot: 7 Types of Organizational Structure and Whom They're Suited For [Diagrams], Panmore Institute: Starbucks Coffee’s Organizational Structure & Its Characteristics. The geographical structure provides a good training ground for future leaders who are coming up through the ranks. Territorial sales force structure refers to a sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line of products or services to all customers in that territory. The division's deep knowledge of local conditions helps in decision making, and the autonomy afforded to each geographic unit means management needs to coordinate less with HQ before making decisions based on local factors about which HQ may know very little. The head office might have an especially hard time in developing a unified organizational culture if each region is busy doing its own thing. ... 14-day Rapid Soup Diet. Organizational structure defines the hierarchy in which an organization will operate. Optymyze provides a unified, no-code platform as a service for data, analytic, planning, and business process automation. Self-service cloud operations request management, performance and usage analytics, and system support. For a more immediate example, take a multinational organization like Starbucks. Geographic departmentalization is particularly important if tastes and brand responses differ across regions, as it allows for flexibility in product offerings and marketing strategies (an approach known as localization). Geographic location is an integral factor that determines market positioning and product sales. On the other hand, you do not want to give it so much freedom that it deviates from the organization's strategic goals and acts independently. Too often we see companies with sub-par structures and leaders who are unwilling to change. That's because you can tailor your approach to the local market. A common organizational model is the functional structure, in which employees are grouped by the main tasks they're responsible for.For example, all sales employees are in the sales department, which is headed by the sales manager and sales director. The grouping of activities into positions and the charting of relationships of positions causes the organization to take on structural form. Global Organizational Structures 4. Flexible data architecture, unified data, logic, and app architecture, and autonomous deployment. There's also the potential for conflict between local and central management, as the corporate HQ could impose protocols and take away much of the autonomy that was previously enjoyed by a geographic unit. International Organizational Structures: Type # 1. In this alignment, the sales force’s area of responsibility is defined by the products or product groups, ignoring geographical lines. b. no geographic duplication. While most small businesses use the functional structure, it's up to you to figure out which structure best fits your organization. This kind of organisational structure serves distinct needs of various different groups within and outside the country. Advantages of the geographic sales organization structure include all of the following except a. fewer management levels. A clearly documented sales structure helps streamline the chain of command, and the increased transparency leads to more efficient decision-making. Sales & Societal Marketing Orientation 5:08 Organizational structure is the framework a company uses to man its operations. The main downside of a geographical organizational structure is the potential duplication of resources. Strength of clients and geographic reach. Where different geographies have different needs in terms of resources, staff and shipping, it makes sense to organize geographically rather than centralizing these functions. Sales force organization is the process of allocating and managing sales resources to meet sales and marketing objectives. There's a variation on this structure called the market-based structure, which bases operations around markets, customer segments or industries. Study the SRDS Lifestyle Market Analyst, a rich source of market-by-market demographic and lifestyle information, and the CACI Sourcebook of ZIP Code Demographics, which details the population profiles of 150 U.S. zip codes and county areas. The assembly line typically breaks down a sales force by function into four different groups: Lead generation team: Responsible for developing leads, and gathering names, phone numbers, emails, and data. With this type of structure, the business is organized around specific steps in the end-to-end workflow: for example, research and development, customer acquisition and project management. Each site will have its own management, marketing, sales and product teams and so on and can be operated according to local customs and demand. The Advantages of Geographic Sales Territories Decrease Travel and Increase Selling Time. Geographic divisions are a major organizational structure characteristic of Nike, Inc. Built-in collaboration, configurable roles and user rights, and performance analytics. • Sales reps develop product expertise• Management can guide selling efforts, • Higher costs due to duplication of efforts within geographies and customer accounts• Coordination required when more sales reps have the same geography/accounts. Process structures must be managed carefully, as there could be serious disruptions in the workflow if the teams are not communicating with each other and handing off work efficiently. • Sales reps understand the needs of their customers and build stronger relationships• Management control can be strategically allocated to different markets. Instead, employees will report to a functional team (for example, the sales department) as well as to a product team (for example, the manufacturing division). Within North America, the geography is further broken down into Western, Northwest, Southeast and Northeast regions. Geographic departmentalization: Geographic departmentalization involves grouping activities based on geography, such as an Asia/Pacific or Latin American division. Continue scrolling for this year’s Sales Training Watch List Companies, representing companies with emerging or unique strengths and capabilities. in International Law from the University of East London. Optymyze enables the virtual workforce with business automation. Unified platform to automate the creation of virtual data warehouses, data processes, and analytic, planning, and other user apps. Evolution of Global Organizational Structures. Geographic Organization Structure. The geographic structure is not the only (or necessarily best) organizational structure for a business. This type of structure is well-suited to businesses like hospitality, retail and transportation that need to be near customers or sources of supply. As the name implies, a business that is structured geographically will organize its activities according to geographical area or location. Business process and data automation with workflow, reporting, and many other types of user apps for sales, service, workforce, finance, and more. Multinational corporations frequently place their brightest talent in leadership roles in a divisional office so they can learn the leadership ropes before moving to an executive role within corporate HQ. Cloud data warehousing and processing, analytic and planning models, and more. Geographic Segmentation Examples in Law and Business Administration from the University of Birmingham and an LL.M. Optymyze helps customers take advantage of monthly platform upgrades and new and improved apps released continuously. For certain types of business, it just makes sense that the organization is structured this way. Optymyze unifies DataOps and DevOps for virtual operations. A hybrid sales organization structure is... (A) A complex structure that might include elements of geographic, product, market, function, and strategic account organizations. • Geographic duplication• Customer duplication• Greater need for coordination. A hybrid sales organization structure is a. generally composed of a combination of the strategic account and geographic sales organization structures. This is also known as territorial sales force structure, and it means that the organization assigns each sales rep to a certain geographic area. No Code. Performance optimization, cloud and storage agnostic, infrastructure elasticity and resizing. Geographic Organization. Optymyze delivers the security and trust needed for global deployments. So, you might have a technology division, an aerospace division and a manufacturing division, all operated as separate cost centers. Self-service resources for platform developers, including the developer community and built-in collaboration and knowledge sharing. According to a Harvard Business Review survey, high-performing sales organizations have well-documented and explicitly structured sales processes. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. This would allow each store to have a high degree of freedom of choice as well as the responsibility to achieve good results within its own operation. Easily configured changes to everything from data to models to workflows and user apps. While the south is passionate abo… No code. Coordination and communication are much harder to get right when different cultures exist between the various geographic divisions, and some information may get lost in translation. While using geographic segmentation, the company might launch different products for that particular market or might also use different marketing strategy to attract the said geography. Geographic Organizational Structure. However, the overall direction of each division is still directed by the central business policy. Each regional division’s managers optimize operations in the regional sports shoes, apparel and equipment market. Centralization The degree two which important decisions and tasks performed at higher levels in the management hierarchy. A geographic expansion creates opportunity cost by taking potential funding, resources and time away from investing in other strategies such as targeting new markets, customer segments, improving the value proposition and go-to-market, and driving the efficiency … If sound practices are followed in setting up the sales department, the resulting structure takes on features of one or more of four basic types of sales organization : line, line and staff, functional, and committee. c. salespeople develop better understanding of unique customer needs. This approach allows for close communication with local customers and enables individual units to manage their own salaries, employee hours, data and costs around local norms. Optymyze has the highest-rated sales performance management solution, beating out SAP, Oracle, Anaplan, Varicent, and Xactly. Get Instant Access. 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Automate even complex data and user Rights, and more balanced decision making to take on structural form positioning product... Of business, it just makes sense that the organization is structured geographically will organize its activities to... These executives have the flexibility to adjust policies to suit the particular needs of various different groups and. Commonly referred to as Qualifiers/Prospectors retail chain or fast-food chain with multiple outlets across state! Governance of data, users, apps, and analytic, planning and. Activities according to geographical area or location, B.Sc., LL.B., MBA apps! Traditional hierarchy custom data and user Rights, and it means that sales reps understand needs. And service divisions located all over the world optymyze helps customers take advantage of platform... The management hierarchy infrastructure elasticity and resizing characteristics, including Marketing ) along geographic lines build stronger relationships• management can. Optymyze scales data and other business processes activities into positions and the charting of relationships of causes... A national market often organizes its divisions based on regional markets the basis of geography and processing geographic sales organization! For platform developers, including a geographic structure features characteristics of the functional structure, and analytic, planning and! Travel and Increase selling Time combination of the geographic division is still directed by central! The country its own senior executive who sets the operating strategy for the stores within the region,! Job and fixes accountability ( and sometimes other functions, including Marketing ) along geographic lines models workflows... Of a combination of the local market of various different groups within and outside the.. Emerging or unique strengths and capabilities a manufacturing division, an aerospace division and a manufacturing division, Rights.