Introduction

Sales Organization is a department of the organization which establish for

the purpose of directing, coordinating and controlling the sales organization.
A sales organization structure evolved in such a way that sales people and
sales manager carry out their activity effectively and efficiently. It gives a blue
print that what activity is performed by which person. The basic concept
includes:
i.

Centralisation

ii.

Specialization

iii. Staff position

iv. Marketing orientation
v.

Co-ordination

vi. Control

Setting up a Sales Organization

There are five major steps in setting up a sales organization
1.

Defining the objective

2.

Delineating the necessary activities

3.

Grouping activities into jobs or positions

4.

Assigning personal to positions

5.

Providing for coordination and control

Functions of Sales Organization

Planning Functions
Sales Forecasting
Sales Budgeting
Selling Policy

Administrative Functions
Selecting Salesman
Training Salesman
Control of Salesman
Remuneration of salesman

Executive Functions
Sales Promotion
Selling Routine - Execution of customers orders

Role of Sales Organisation

Once the sales plan has been formulated, the next logical step is to organise a
sales force to achieve the organisational objectives.
Major Qualified Sales Objectives
Overall Objectives

Break Up or Division

1.

Total volume of products

1.

Quarter, month and week

2.

Total annual value of products

2.

Product line and range

3.

Total annual selling costs

3.

Region and sales area

4.

Total annual profit contribution

4.

Type of customer

Cont.

Developing a Sales Organisation

Sales organisation development refers to the formal, coordinating process of
communication, authority and responsibility for sales groups and individuals.
A sales manager must recognise and deal with some basic problems faced by
organisations, when developing his own sales organisation. The five major issues
are:
1.

Formal and informal organisations

2.

Horizontal and vertical organisations

3.

Centralised and decentralised organisations

4.

The line and staff components of organisations

5.

The size of the company.

Field Sales Organisation

The following are the important field sales Organisations:
1.

Geographic sales specialisation organisation

2.

Product-based sales specialisation organisation

3.

Customer-based specialisation organisation

4.

Activity/function-based specialisation

5.

Hybrid sales organisation

6.

Team-based organisation.