Chapter 16, Problem 16.1DQ

Summary Introduction

To discuss: Three structures of sales force and the most effective one.

Sales force structure is that a company produces and sells a wide variety of products to the customers over the globe; they will use all three structures of sales force. These three types of structures are product sales force structure, territorial sales force structure, and customer sales force structure. It helps the business and sales person can achieve success using the appropriate sales force.

Explanation of Solution

The three sales force structures are compared as follows:

Product sales force structure is a method of organizing the specific sales force who are specialized in selling the specific products or specific product lines.

In territorial sales force structure, each and every salespeople is assigned to a particular geographical area. They are responsible to sell products and services to the customers in that territory.

Generally, more companies are utilizing customers sales force structure, as it organize the sales people along with customers and industries. In this structure, salespeople are specialized in serving the customer needs and preferences. This ultimately helps to build a strong relationship between the company and the customers.

Every company has to select one sales force structure based on the overall marketing strategy which suits and serves better to its customers.

The decision is simple, that territorial sales force structure is used if a firm sells just one product to the customers located in different locations.

However, the company sells numerous products to more number of customers located in different areas it needs product or customer sales force structure or both.