MEANING OF SALES ORGANIZATION

sales organization is a organization of individual either

working together for the marketing of products and
services manufactured by an enterprise or for
product that are procured by the firm for the purpose
of reselling.
A sale organization is a structural body through which
the function of sale management are carried out.
DEVELOPMENT OF SALES ORGANIZATION
Sales organization development refers to the formal,
coordinating process of communication, authority
and responsibility for sales groups and individuals.
An effectively designed sales organization has a
framework that enables the organization to serve its
customers in best manner. Once the sales people
know what their responsibilities are and who they
have to report to they can concentrate on doing their
expected job to the best of their ability.
KINDS OF ORGANIZATION STRUCTURE
1) Formal or Informal organization.
2) Horizontal or Vertical organization
3) Centralized and decentralized
4) The line and staff component of organization
HORIZONTAL
LINE AND STAFF
OTHER SALES ORGANIZATION
1) Geographic
2) Product Based
3) Customer Based
4) Hybrid Sales Organization
5) Functional
PROS N CONS OF PRODUCT BASED ORG.
1) Useful for complex products
2) Concentrate on one product
3) Generally combines with geographical specialization
Disadvantages
1) Higher cost
2) Duplication of efforts
3) Buyer frustration
PROS N CONS OF GEOGRAPHIC ORG.
1) Proper coverage of territory
2) Defining the responsibility
3) Familiarity with local economic and competitive conditions making them better
able to serve local customers

Disadvantages
4) Sales people entrusted with responsibility of entire product line in a territory
5) Lack of training and knowledge may lead to bad impression on customer
PROS AND CONS OF HYBRID
1) Overcome the problem of individual sale organization
2) Its ability to service customer in best manner

3) Its complex
4) Difficult to manage multiple sales force
5) Duplication of efforts can take place.
CUSTOMER BASED SALES ORGANIZATION

Sales Manager for India

Branch Sales Manager

Assistant Sales Assistant Sales

Manager Manager
A B
PROS AND CONS OF CUSTOMER BASED
1) Enables the sales person to become more knowledgeable
2) Can handle problems more efficiently
3) More customer satisfaction

1) High cost on training and staffing

PROS AND CONS
1) Specialization at different levels
2) Easy decision making
3) Easy coordination between functions

4) Increased responsibility
5) coordinaion becomes difficult with increasing number of products.