Top 7 Functions of Sales Department: Apply For 8 (A) Certification

5/10/2021 Top 7 Functions of Sales Department
 Business Management Ideas
Top 7 Functions of
Sales Department
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The various functions of sales

department are: 1. Market Research 2.
Advertising 3. Sales Correspondence 4.
Sales 5. Service 6. Packaging 7.
Warehouse.
Function # 1. Market Research:
It means study of market, which

includes forecasting, intelligence and
statistics. It is an important factor for
the sale of products. Failure to doDothis
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accurately may lead to the productioninofIndia
home
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more goods that the market can absorb.
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This may mean financial losses to the Privacy - Terms
https://www.businessmanagementideas.com/sales/top-7-functions-of-sales-department/7060 1/19
firm. It may also lead to under-

production, the results of which are
equally unpleasant.
In estimating sales for a future

period, number of factors has to
be considered, the most important
of these are:
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(a) Secular Trends:
Means due to increase of population, the

demand of products may also increase
in proportion.
(b) Cyclical Changes:
These are changes due to agricultural

crops, wars, inventions, discoveries etc.
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(c) Seasonal Fluctuations:
These are changes in the volume of sales

due to climatic conditions or festive
buying. There are many products like
umbrellas, woollen wears, neckties etc.
which have a seasonal demand while
products like soap, tooth paste, blades
etc. are free from such seasonal
fluctuations.
(d) Nature of Products:
Products are classified as consumer

goods and capital goods. Articles of
food, toiletries, shoes, toys, papers,
pencils come in the first category while
machinery, machine tools etc. come in
the second category.
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Consumer goods such as shoes are

rapidly used and must be continually
replaced. So there is more regular
demand for them. But capital goods,
such as lathe whose life is long enough,
have more fluctuations in their demand
than consumer goods.
Hence in estimating future sales, a

manufacturer must take into account
the nature of his product and study how
changing business conditions will affect
the demand for his product,
(e) Competition:
This makes it necessary to study the

recent or proposed production, sales
home in India
and pricing policies of the competitors.
Most important of these is the analysis Read Next Story
of the quality of the competitor’s Privacy - Terms
products to ascertain how a potential

customer would compare with one’s
product.
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The sales department should ask its

salesmen to report and comment by a
potential customer about the firm’s
product or the products of its
competitors. It should also study the re-
search and product development work
that the competitor may be carrying on
in order to forecast as to how these will
affect future sales.
(f) Government Action:
Effect of large government buying, levy,

excise duties, policy regarding taxation
of personnel income, monetary policy of
deficit finance etc. home in India
Read Next Story
Privacy - Terms
Function # 2. Advertising for

Sales:
Advertising is the publication of

information regarding articles
(products) put up for sales and is a
method to bring the producer into touch
with customers. This informs the
customers about the product and the
place from where they can get it.
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Advertising promotes trade and creates

demand and hence it is the pivot of
modern trade, commerce and business.
The most appealing definition of
advertising is- “advertising bring to
the greater number of people,
actual knowledge concerning
useful things, thus it is essentially
a form of education of the people
about the product.”
Functions of Advertising:
home in India
Following are the main important
functions (or objects) of Read Next Story
advertising: Privacy - Terms
(i) Advertising is the powerful media of

demand creation by reaching to the
customers and telling them about good
qualities of the product.
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(ii) To prepare ground for a new product

by way of introducing its product to the
public,
(iii) It enhances the goodwill of the

company among customers.
(iv) Advertising helps the product to

stand against its competitor products.
Advantages of Advertising:
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(A) To Manufacturers: home in India
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(i) It increases sales by way of increasing

demand.
(ii) Helps salesmen by preparing ground

for them.
(iii) Creates good-will by telling

customers about the quality and service.
(iv) Lower costs can be achieved by way

of increasing the turnover due to
advertising.
(B) To Customers:
ADVERTISEMENTS:
(i) Facility in purchasing a product is felt

by the consumer because he can decide
that what he should purchase,
(ii) Better quality is available to the

customer.
(iii) Because of the direct contact

between manufacturer and the Do You Speak English? Work a USA job from
home in India
customer, middlemen cannot charge
more profit. Read Next Story
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(C) To Society:
(i) Advertisements help the newspapers

in keeping their rates low, so that the
newspapers are well within the reach of
common men.
(ii) These, by way of increasing the

production, raise standards of living.
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(iii) Provides employment, encourage

artists etc.
(iv) To remain in the market and to

advertise specialties of the product,
manufacturer has to pay attention on
research so as to get new improved and
better products.
Economic Implications of
Advertising:
Advertising has following main

economic implications: Do You Speak English? Work a USA job from
home in India
(i) Informing Consumers: Read Next Story
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An advertisement informs the consumer

about the market condition, namely, the
goods available in the market, their
characteristics, the model best suited to
the needs of the consumer and so on.
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(ii) Broadening the Market:
Advertising broadens the market by

familiarizing the consumer with new
products, increasing the number of
dealers. All this tends to increase the
production and hence lower the cost due
to mass production. Advertising reduces
the scope for earning local monopoly
profits.
(iii) Lowering Selling Costs:
Its main advantage is to lower the cost

per contact e.g. one newspaper
advertisement places the product before
the eyes of many more prospective
buyers that the equivalent expenditure
home in India
on salesmen. Thus efforts for retail sales
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are reduced, which reduces per unit

expenditure on sales.
(iv) Encouraging Competition:
With the help of advertising new firms

can introduce their products, more
rapidly than would be possible without
advertising.
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(v) Criticism:
Advertisement has been criticized for (a)

misinforming the consumers and (b)
concentrating the market in the hands
of few, who can invest heavily on the
advertisements, this creates problems in
establishing new business with limited
resources, even if the product is good.
Function # 3. Sales:
All the activities of the Sales department
are for selling to earn maximum profit.
For this purpose continuous search
homeisin India
made for profitable markets. Various
Read Next Story
agencies are opened throughout the
Privacy - Terms
country and if possible in foreign

markets also.
Sales Promotion:
Sales promotion is a direct and

immediate inducement that adds an
extra value to the product so that it
prompts the dealers, distributors or
ultimate consumers to buy the product.
Sales promotion activities are
complementary to advertising and
personal selling efforts.
Objectives of Sales Promotions:
ADVERTISEMENTS:
Sales promotion objectives are:
(i) For introducing new products

home in India
(ii) For unloading accumulated Work from Home | Search Ads | Sponsored
inventory. Read Next Story
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(iii) For overcoming a competitive

situation.
(iv) For overcoming seasonal

slumps/decline,
(v) As a support to the advertising effort.
Function # 4. Sales
Correspondence:
Any incoming letter must be replied in a

short time. The letter should be tactful,
simple in language, helpful and every
customer must feel that his enquiries
are being considered.
Quotations for the supply of products

should be sent to large number of
customers and try to capture large
markets.
If the promises cannot be kept with

regard to delivery date or other matters,
the customers should be informed
immediately and whenever practicable
reasons for the delay should be given.
Function # 5. Service:
Industry is rapidly adopting the
Do You
principle that service is an essential Speak English? Work a USA job from
part
home in India
of the sales itself. ManufacturersWork
often
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find it essential to see that their Read Next Story
products are properly installed. This is Privacy - Terms
not only a service to the customers but

also a protection against complaints and
general dissatisfaction of the customers.
The manufacturers, therefore, maintain

a staff of skilled engineers and
mechanics, who carry out tests at the
customer works, give technical help and
advice and see that everything is
functioning properly.
Function # 6. Packing:
Packing to be used for products depends

upon the type of product to be packed.
Following are the few types of

packing of industrial products:
1. Paper wrapper
2. Tin container.
3. Cloth packing
4. Card Board Packets
5. Plywood Boxes
6. Plastic packing’s and
7. Wooden packing’s. Do You Speak English? Work a USA job from

home in India
Packing also has an important role in Read Next Story
the sale of product. With the help of Privacy - Terms
good packing, the products can reach to

the customer in same form and quality
as they were before despatch. Good
packing also helps in advertising and
attracts more number of customers.
Function # 7. Warehouse:
These are the go-downs, for storing
finished products after they are packed
in a systematic manner. These are built
in such a way that materials can be kept
in them for a period till they are sold.
For easy transportation, these are
generally situated near the factory main
gate.
Related Articles:
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Functions | Marketing Management
Marketing Functions: 12 Essential Functions

of Marketing – Discussed!
Staff of Sales Department
Organisation of Sales Department | Marketing
Management

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5/10/2021 Top 7 Functions of Sales Department

 Business Management Ideas

Apply for 8(a) Certification

The various functions of sales

Function # 1. Market Research:

It means study of market, which

firm. It may also lead to under-

In estimating sales for a future

Download Free Compliance App

(a) Secular Trends:

Means due to increase of population, the

(b) Cyclical Changes:

These are changes due to agricultural

Read Next Story

Download Free Compliance App

(c) Seasonal Fluctuations:

These are changes in the volume of sales

(d) Nature of Products:

Products are classified as consumer

Read Next Story

Consumer goods such as shoes are

Hence in estimating future sales, a

This makes it necessary to study the

Most important of these is the analysis Read Next Story

of the quality of the competitor’s Privacy - Terms

products to ascertain how a potential

The sales department should ask its

(f) Government Action:

Effect of large government buying, levy,

Read Next Story

Function # 2. Advertising for

Advertising is the publication of

Advertising promotes trade and creates

functions (or objects) of Read Next Story

advertising: Privacy - Terms

(i) Advertising is the powerful media of

(ii) To prepare ground for a new product

(iii) It enhances the goodwill of the

(iv) Advertising helps the product to

Do You Speak English? Work a USA job from

Read Next Story

(i) It increases sales by way of increasing

(ii) Helps salesmen by preparing ground

(iii) Creates good-will by telling

(iv) Lower costs can be achieved by way

(i) Facility in purchasing a product is felt

(ii) Better quality is available to the

(iii) Because of the direct contact

(i) Advertisements help the newspapers

(ii) These, by way of increasing the

(iii) Provides employment, encourage

(iv) To remain in the market and to

Advertising has following main

An advertisement informs the consumer

(ii) Broadening the Market:

Advertising broadens the market by

(iii) Lowering Selling Costs:

Its main advantage is to lower the cost

are reduced, which reduces per unit

(iv) Encouraging Competition:

With the help of advertising new firms

Advertisement has been criticized for (a)

country and if possible in foreign