Product organization

Two conditions are conducive to the use of a product basis in organizing field sales. One is that the firm markets a diverse range of products or product lines. By limiting the product types he is accountable for, a salesman can become more of a product specialist. This may be especially important from a competitive standpoint when products are technically complex in nature. The second is the determination that product knowledge is the primary marketing input for the salesman.

While a product division appears ideally suited to industrial marketers, several prominent consumer-good marketers use this basis of organization for field sales. General Foods, for example, divides up the field sales organization by brands. Another large marketer of essentially grocery products separates its field sales organization into food and nonfood.

A major disadvantage of the product organization is the duplication of effort. Two or more salesmen from the same company will travel in the same geographical area, possibly calling on the same accounts and purchasing contacts. Another disadvantage is the added expense of hiring product or brand managers to provide staff assistance. Still an-other disadvantage is the possible development of insularity among salesmen causing them to lose sight of the other products marketed by the firm.

Sales Force Management

A geographical split by minimizing duplication of travel patterns is usually the most economical basis. Other advantages include enhanced adaptability to local market conditions, greater control, and quicker sales reactions. Working against a geographical basis alone works against this type of specialization. I was talking with the owner of online blinds store who are selling vertical blinds and roman shades blinds. He says that with sales force management it is really easy for them to manage geographically large areas with one location office. To retain the advantages of the geographical basis without incurring its limitations, it is often used in combination with either the product or consumer basis.

Product organization
Two conditions are conducive to the use of a product basis in organizing field sales. One is that the firm markets a diverse range of products or product lines. By limiting the product types he is accountable for, a salesman can become more of a product specialist. This may be especially important from a competitive standpoint when products are technically complex in nature. For instant life insurance rates company who are providing life insurance quotes online, they says that they need term life insurance agents who are expert in their field. More experience they have more business they are going to give. The second is the determination that product knowledge is the primary marketing input for the salesman.