Most companies structure their sales force based on geography, customers, products ora combination of these factors. For a company marketing just a single product categoryand selling to different scattered customers in one industry, a territory-based structurewould be suitable. If a company manufactures several different product categories andsells to different types of customers, it might find a customer type based sales force.
Organisation means the systematic coordination of the functions essential to achievingorganisational objectives. The objective of a sales organisation, therefore, is theperformance of various activities necessary to promote sales. The functions of salesorganisation can be classified as follows1.
a.Sales forecastingb.Sales budgetingc.Selling policy2.
a.Selecting salesmenb.Training salesmenc.Control of salesmend.Remuneration of salesmen3.
a.Sales promotionb.Selling routine—execution of customers’ orders.
Sales forecasting is the art that predicts the likelihood of economic activity on the basisof certain assumptions. The process of making certain estimates of future events isreferred to as sales forecasting and the figure obtained from the process is known as a‘sales forecast’. Sales forecasting would be futile if the future were known. In order todetermine the future course of events, aid is taken from an organised system of salesforecasting.Different steps in sales forecasting are:
Defining the objectives to be achieved
Dividing the various groups into homogenous groups
Analysing the importance of various factors to be studied for sales forecasting
Selecting the method
Collecting and analysing the related information
Drawing conclusions from the analysis made