Types of Sales Organization

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. The grouping of activities into positions and the charting of relationships of positions causes the organization to take on structural form. The first two types (line and line and staff) are the most common. Functional and committee organization are rare. Most sales departments have hybrid organizational structures, with variations to adjust for personalities and to fit specific operating conditions.

The sales department’s structure evolves from the needs of the business. No two companies have identical sales organizations, because no two have identical needs. The customers, the marketing channels , the company size, the product or product line, the practices of competitors, and the personality and the personalities and abilities of the personnel are but a few of factor affecting the organizational structure of the sales department.

So numerous are the factors influencing the structure of individual sales departments that it is impractical to draw generalization about the many possible “mixed” types; the discussion that follows is an analysis of the four basic types. Organizational planners should know the chief features of each type, and its respective merits and limitations. If they have this background and understand the other factors influencing the structure of the sales department, they are equipped to evaluate its appropriateness. Read on to know more about sales organizations

1) Types of Sales Organization – Line Sales Organization
2) Types of Sales Organization – Line and Staff Sales Organization
3) Types of Sales Organization – Functional Sales Organization
4) Types of Sales Organization – Committee Sales Organization