Presentation on sales Organization

Submitted To:
submitted by:
Head of management dept.
Bishali
Mr. Amarjeet Singh
MBA 4th

1818508
Meaning

Sales organization is a part of the total business organization of a firm.

This unit of the firm is concerned with the distribution of goods. These
products may either be produced by the organization itself or may be
purchased for resale. The sales organization is concerned with planning,
controlling of activities such of recruitment of employee, training the
employees, equipping, assigning, eating and motivating the sales force.
Purpose of sales Organization

 Achieve co-ordination and Balance

 Fix responsibility
 Maximize co-operation
 Ensure that all activities get done
 Define authority
Types of sales organization

Sales organisation are generally classified into four basic types:

1. Line organisation
2. Line and staff organisation
3. Functional organisation
4. Horizontal organisation
we shall discuss advantages and disadvantages of each type of sales
organisation.
Line organization

 It is simple is structure
 It has clear line of authority
 Inexpensive
 It is good for small firms
 The sales team person have limited growth potential
 Advantages:
 Simple organization
 Clear authority
 Quick decisions
 Low cost
Disadvantage:
No support to line managers from subordinates who have specialized
knowledge/skills. Less time for planning/ analysis.
Line and staff organization

 Staff positions are introduced to support the sales head.

 System is more expensive as compared to the line organization.
 They may arise some conflict between the line and staff managers.
 Sales head maintains the same benefits of enjoying the line of
command.
 Advantages:
 Better marketing decisions.
 Superior sales performance
Disadvantage:
 High cost and coordination
 Slower decision making
Functional organization

 It is a modification of the traditional line and staff organization.

 It is not employed in large organization
 The sales person is responsible for more than one boss and the unity of
command is broken.

Advantage:
 Qualified specialists guide sales force
 Simple to administer
Horizontal Organization

characteristics:
 Remove management levels & departmental boundaries. Expect
planning team, all others are members of cross-functional teams.

Advantages:
 Reduction in supervision
 Unnecessary tasks & cost
 Improved efficiency and customer responses.