Sales Organization Notes for Diploma in Business Management

Institution: College

Course: Diploma in Business Management

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Get KNEC notes in PDF format that you can print out. Good notes, written in summary with main points highlighted to ease your revision for the KNEC exams.

Organizational structure
- Def: This defines how activities such as task allocation, coordination and supervision are
directed towards the achievement of organizational aims.
- This is a system that is used to define the hierarchy within an organization. It identifies each job,
its function and where it reports to within the organization.
- This is a diagrammatic representation showing how departments or divisions in an organization,
as a large corporation, are related to one another along lines of authority.

Forms of Organizational structures
- Geographical structure
- Product specialization structure
- Industry – based structure
- Account size structure

Geographical structure
- This is a structure where each salesperson is assigned a territory over which to have sole
responsibility for sales achievement.
- Salesperson close geographical proximity to customers encourages the development of personal
friendships which aids sales effectiveness.
- Compared with other organizational forms, e.g. product or market specialisation, travelling
expenses are likely to be lower.
This form has an advantage of its simplicity.

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