Sales Organisation and Sales Force Management
Sales organisation defines reporting lines, specialisation and coordination; sales force management covers size, recruitment, training, motivation, compensation and control. Questions often ask which structure fits a given market and how to evaluate salespeople.
Structures and staffing
- Line organisation: simple, quick decisions, suitable for small firms.
- Line-and-staff: adds specialists such as trainers or analysts while preserving command.
- Functional: specialists by activity, which can blur accountability.
- Geographic, product and customer/market structures: choose by coverage needs, product complexity and buyer diversity.
- Size: workload approach (accounts × call frequency × call length) or affordability.
- Recruitment and selection: job description, sources, tests and interviews; train on product, market, selling skills and compliance.
- Compensation: salary gives security, commission gives incentive, combination is common; add recognition, contests and career paths.
- Control: call reports, sales versus quota, margin and customer retention.
Worked example
A firm sells one product to pharmacies across four states. Geographic structure gives clear territories and local knowledge. If it later adds hospital equipment with technical specifications, a product or customer structure may be needed because the buying centre and sales skills differ.
Traps
Do not prescribe product structure for a single-product firm; do not assume commission-only pay suits all roles; do not confuse span of control with number of salespeople. Evaluation should use multiple measures, not sales volume alone.