Market is organized by following ways:
1) Functional Organization
It is the most common form of marketing organization, consists of functional specialists reporting to a marketing vice president, who co-ordinates their activities.
According to the function of the departments the structure is designed, that is functional organization.
2) Geographic organization/specialization.
Perhaps most widely used method of specializing selling activities is on the basis of geographic organization.
Each sales person is assigned a specific territory in which to sell. These sales people are placed under district or regional sales manager as shown in the figure.
These district or regional managers are called territorial supervisors who report directly to general sales manager.
Companies can pinpoint on the local problems and opportunities of different territories to which the products are being sold. Customers can be serviced quickly.
3) Product Management organization/specialization
Another basis for organizing sales force is product specialization. The organization is done on the basis of product lines or brands.
As shown in the figure, company has two product lines i.e. product 1 and product 2. One group of sales representative sell only product 1 and another group sells product 2.
Each group reports to its own product's Sales manager who, in turn, reports to the general sales manager. This type of organization is well suited for companies that are marketing several electronic products, unrelated or dissimilar products.
The main advantage of it is the attention each line will get from the sales force.
4) Market (Customer) management organization/ specialization
In recent years, many companies have divided their sales departments on the basis of customer specialization.
In this arrangement, the customers are grouped by type of industry or channel of distribution
As in figure, Oil Company has categorized its market by industry such as Railroad industry, Farm equipment industry and Auto industry.
This sort of organization of marketing departments emphasizes on customers and markets rather than on product.
The main advantage is that it focuses on customer- oriented philosophy that under lies the marketing concept.
1) Functional Organization
It is the most common form of marketing organization, consists of functional specialists reporting to a marketing vice president, who co-ordinates their activities.
According to the function of the departments the structure is designed, that is functional organization.
2) Geographic organization/specialization.
Perhaps most widely used method of specializing selling activities is on the basis of geographic organization.
Each sales person is assigned a specific territory in which to sell. These sales people are placed under district or regional sales manager as shown in the figure.
These district or regional managers are called territorial supervisors who report directly to general sales manager.
Companies can pinpoint on the local problems and opportunities of different territories to which the products are being sold. Customers can be serviced quickly.
3) Product Management organization/specialization
Another basis for organizing sales force is product specialization. The organization is done on the basis of product lines or brands.
As shown in the figure, company has two product lines i.e. product 1 and product 2. One group of sales representative sell only product 1 and another group sells product 2.
Each group reports to its own product's Sales manager who, in turn, reports to the general sales manager. This type of organization is well suited for companies that are marketing several electronic products, unrelated or dissimilar products.
The main advantage of it is the attention each line will get from the sales force.
4) Market (Customer) management organization/ specialization
In recent years, many companies have divided their sales departments on the basis of customer specialization.
In this arrangement, the customers are grouped by type of industry or channel of distribution
As in figure, Oil Company has categorized its market by industry such as Railroad industry, Farm equipment industry and Auto industry.
This sort of organization of marketing departments emphasizes on customers and markets rather than on product.
The main advantage is that it focuses on customer- oriented philosophy that under lies the marketing concept.
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