Which method of sales force organization would be most appr

: Which method of sales force organization would be most appropriate for: (a) a national company that sells a computerized billing system for small physician practices and (b) a manufacturer of adhesive bandages and sutures?

Solution

a. A national company that sells a computerized billing system for small physician practices should go for Territorial organization structure or Product organization structure. Because selling such type of goods a sales person should be trained to explain what is selling and should be aware of all products features. When asked by customers he should be able to explain them & they should operate all the equipment they sell so they can anticipate and convincingly answer customers.

b. A manufacturer of adhesive bandages and sutures should go through customer organization structure. Suppose a hospital equipment manufacturer markets its products to large hospitals, nursing homes and private practices. Dedicating a portion of its sales force to each type of customer allows the manufacturer to customize its sales pitches to speak to each customer’s typical needs.