TOPIC NAME: Sales Organization

UNIT NO. 2
SALES ORGANIZATION
 Sales Organization
• A sales organization is a an organization of
individuals either working together for
marketing/sales of products and services
manufactured by an enterprise or for products
that are procured by the firm for the purpose
of selling.
• A sales organization is a structural body
through which the functions of sales
management are carried out
 Functions of a Sales organization
• Performance of various activities that are
necessary for the promotion of sales
• It defines the duties, roles and responsibilities of
people engaged in selling
• It undertakes managerial functions such as
recruitment and selection of quality manpower
for sales activity.
• It conducts their induction and training programs
 Functions of a Sales organization
• Motivates the sales force through various types
of incentives
• Decides for the compensation and remuneration
of sales force
• Performs planning functions such as sales
forecasting, budgeting and designing sales policy
• Performs routine functions such as execution of
customer’s orders
 Structure of a sales organization: factors
influencing
• Type of product / service
• Size of the organization / company
• Decision to hire intermediaries / sub
contracting
• Size of the market (area of operation)
• Number of products
• Sales policy
 Principles of Sales organization
• Principle of unity of objectives
• Principle of specialization
• Principle of coordination
• Parity of authority and
responsibility
• Principle of exception
 Significance / Importance of sales
organization

• Plan purchases
• Create pattern of demand
• Handle orders
• Collect dues
• Handle the task of personnel
management
 Roles and functions of a sales manager
• Planning future sales
• Selection / placement / training of sales force
• Directing / coordinating sales force
• Reporting to the top management
• Designing compensation / incentives for the
sales force
 Types of sales organizations
• Function based sales organization
Chairman

Vice President Sales

Manager – Manager - Manager –

Manager -
market personal After sales
advertising
research selling services
 Territory (area) based sales organization

• AREA based
Chairman

Vice President Sales

Manager – Manager – Manager - Manager –

North zone West zone South zone East zone
 Product based sales organization
• Product based
Chairman

Vice President Sales

Manager –
Manager – Manager - Manager –
Consumer
FMCG Software Chemicals
durables
 Customer based sales organization

• Customer based
Chairman

Vice President Sales

Manager –
Manager – Manager -
Industrial
wholesale Retail
consumers
 Combined or hybrid type of sales
organization
• combined
Chairman

Vice President Sales Vice President

Vice President service
and marketing distribution

India International

Industrial Retail
customers customers
 Units of sales organization
• Physical distribution unit – storing, packaging,
transportation
• Advertising unit – formulating and implementing
ad campaigns
• Personnel Unit – recruitment, selection, training,
placement, motivating, controlling of sales force
• PR unit – maintains relations with banks,
government offices, social organizations etc
 Units of sales organization
• Sales unit – manages sales
• Market research unit – conduct researches on
consumer behavior, to collect data on demand,
supply, to come up with improved channels of
distribution
• Debt collection unit – from customers and
dealers
• Record and statistics department – for
maintaining data
 Recruitment, selection, training and
development of sales force
• Recruitment of sales force
 sources of recruitment (internal and external)
 job description and job specification
 Challenges in the recruitment of sales
force
• Sales people are the front end of the
organization
• determination of characteristics that
differentiate between performing and non
performing candidates
• Evaluation of these characteristics
• Checking the motivation level of the
candidates
 Hiring Process

HRP Recruitment Selection Induction

 Recruitment of sales force
Internal External
Interns From supplier firms
Employee referrals Campus recruitment
Lateral movements Newspaper
Advertisements
Employment agencies
Walk ins
Networking
Web sources
Sales
Ad
 Selection Procedure
• Personal interviews
• Personality tests
• Psychological tests
• Aptitude and skills tests
• Intelligence tests
• References / background checks
 Induction and socializing
• After placement (appointment), the sales
person goes through an induction program
where he/she is made familiar with the rules,
procedures of the company
• Socializing is defined as the process of
orienting a new sales person to the sales
organization or the territory he would be
working in. it has three stages – anticipatory
stage, encountering stage, settling in stage.
 Sales force training
• OBJECTIVES OF SALES TRAINING
 Improve the performance of sales force
 To prepare the sales force for future challenges
and roles through the process of development
 To equip the sales force with latest know how
and technology
 To help them overcome the barriers in their job
 To enable them to adapt with the changing
environment
 The training process

Training need Design of training Evaluation of training

assessment program program
 Training need assessment
• Anticipating future needs
• Management requests
• Surveys
• Interviewing and observation
• Interpersonal skill test
 Design and conduction of training

• Location (on the job/off the job)

• Level of interaction required
• Time available for training
• Financial resources available
• Size of the trainee group
• Facilities available
 Training methods
• Lecture based training (didactic method)
• Job rotation training
• Participative training (more interactive)
• Conferences (large scale)
• Seminars (small scale)
• Discussions (presentations of ideas)
• Role play
• Case studies
• Workshops (participative off the job training)
• Fish bowl training
• Sensitivity training
Fishbowl training method
 Evaluation of the training program
• After the training is over, the output of the
employees is measured, if there is an
enhancement/increase, it can be said that the
training objectives have been met, otherwise,
there is a gap between the objectives and the
outcomes.
 Evaluation of the training program

• Changes in the observed behaviour of the

workforce and their motivation level decides
the effectiveness of the training program.
• Assessment of the training program is done by
the sales manager
Training Vs Development
Thank You