Development of Sales Organization

Q1. What is the major role of Sales Organization?

A sale is the pinnacle activity involved in the selling of products or services in return
for money or other compensation. It is an act of completion of a commercial activity.

The sales organization is an organizational unit within logistics that structures the
company according to its sales requirements. It represents the selling unit as a legal
entity. It is responsible for product guarantees and other rights to recourse, for
example. Regional subdividing of the market can also be carried out with the help of
sales organizations.

Each business transaction is processed within a sales organization. Each sales

organization is assigned exactly one company code for which you enter all
accounting details of the sales organization.

The roles of sales organisation:

The role of a sales organization is to achieve company objectives, streamline

reporting relationships, facilitate effective coordination and control and develop an
efficient sales force structure to ensure effective selling strategy.

Designing the sales organization plays a crucial role in a company’s overall success

Sales culture plays an important role in the success of a sales organization. Sales
culture is a collective impression of the values, attitudes and personality of top
management in an organization.

The major objectives of a sales organization are to increase sales volume, contribute
to profits, and attain long-term growth. For an organization to be successful, it is
essential to integrate the sales and marketing functions so that coordination of
activities can be achieved.

2) Describe the development of Sales activities over the centuries.

Sales are one of the most crucial functions of an organization. It is the principal, and
often, the only revenue generating function in the organization. A sale has formed
an important part of business throughout history and will continue to do so. A
constant evolution has been witnessed in the sales function from the early Stone
Age, through the iron ages, and the middle ages to sales in the twenty-first century.
The evolution of the sales concept can also be studied in terms of seven
generations.

Too often in sales, the only feedback given to salespeople ties to their results.
Certainly, results are important, and they are ultimately the measurement of
achievement. Unfortunately, results are not something that can be managed. Results
are history – they have already happened. Activity is what is happening, or what is
about to happen. Clearly, then, activity becomes the manageable part of the sales
force.

In most industries, sales activity can be broken down into a few categories

 Prospects are researched, gathered, and qualified.

 Initial contacts are made to qualified prospects, in person or by phone.
 Discovery is conducted to assess the prospect’s needs.
 Recommendations of product or service are made in order to address the
needs.
 Proposals are offered to place a value (price) on the recommended service.
 Closing is the process of getting a decision from the prospect.
 Follow Up processes are conducted, after each won or lost sale.

Once you have activity expectations set down on paper, it’s important to share them
with salespeople and make sure that they understand that they will be held
accountable for both the activity and the results. Results, then, become a product of
both quality and quantity of activity. Knowing this, the successful sales manager can
more easily troubleshoot poor sales performance. Look first toward quantities of
activities; if they are not being met, this is your primary cause. If the activities are
being performed, you have a qualitative problem that may require joint calls and
after-action coaching.

This is a process that must be done on a consistent basis, and can serve as the
platform for trouble-shooting sales under achievement or as a way to identify best
practices for over achieving.

Q3. What are the recent innovations in the Sales techniques?

The various sales techniques are as follows,

A sale can take place through,

 Direct sales, that is involving person to person contact
 Pro forma sales
 Agency-based

 Sales agents (for example in real estate or in manufacturing)

 Sales outsourcing through direct branded representation
 Transaction sales
 Consultative sales
 Complex sales
 Consignment
 Telemarketing or telesales
 Retail or consumer

 Travelling salesman

 Door-to-door methods
 hawking

 Request for proposal – An invitation for suppliers, through a bidding process,

to submit a proposal on a specific product or service. An RFP usually
represents part of a complex sales process, also known as "enterprise sales".
 Business-to-business – Business-to-business sales are much more
relationship-based owing to the lack of emotional attachment to the products
in question.

An industrial/professional sale involves selling from one business to another.

 Electronic

 Web – Business-to-business and business-to-consumer

 Electronic Data Interchange (EDI) – A set of standard for structuring
information to be electronically exchanged between and within
businesses

 Indirect, human-mediated but with indirect contact

 Mail-order
 vending machine

 Sales methods:

 Selling technique
 Consultative selling
 Sales enablement
 Solution selling
 Conceptual Selling
 Strategic Selling
 Transactional Selling
  Sales Negotiation
 Reverse Selling
 Paint-the-Picture
 The take away

The only strategy which I believe the most which is when the sales process,
strategies and tactics are in their heads, the process, strategies and tactics will play
back automatically.