Sales Organization

T O D E T E R M I N E T H E A I M S A N D O B J E C T I V E S O F S A L E S D E PA R T M E N T

TO DEFINE RIGHTS DUTIES AND RESPONSIBILITIES OF SALES

D E PA R T M E N T

T O D E F I N E R E L AT I O N S H I P B E T W E E N P E R S O N S O F D I F F E R E N T L E V E L .

TO IMPLEMENT PLANS AND POLICIES IN DIFFERENT ACTIVITIES.

T O A C C U M U L AT E R E S O U R C E S T O M E E T T H E O B J E C T I V E O F S A L E S
D E P T.

I M PA R T T R A I N I N G T O S A L E S P E R S O N S T O U P - T O - D AT E T H E I R
KNOWLEDGE

T O M A I N TA I N E F F E C T I V E C O M M U N I C AT I O N B E T W E E N S A L E S
EMPLOYEES

T O F O R E C A S T S A L E S A N D A L L O T M E N T O F S A L E S Q U O TA .

T O M A I N TA I N T H E S A L E S E X P E N S E S A N D C O S T AT T H E M I N I M U M .

T O C O O R D I N AT E D I F F E R E N T F U N C T I O N S S A L E S D E PA R T M E N T.
Setting up a Sales Organization:

Defining Objectives:

The initial steps is to define the sales department’s

objectives. Top management , of course defines the long run
objectives for the company, and from these general or long run
objective sales dept. derives their particular objectives

Determine activities and their volume of performance:

It is a matter analyzing the sales department’s

qualitative and quantitative objectives Thorough examination
discloses which activities must be performed in what volume
 Setting up a Sales Organization:

Grouping activities into position

Activities are classified and grouped so that closely related tasks

are assigned to the same position. Each position should Contain not
only a sufficient variation to provide for job challenge.

Assignment of personnel to position:

The next step is to assign personnel to positions. This brings up

the question of whether to recruit special individuals to fulfill the position
or to modify the position to fit the capabilities of available personnel

Provision for coordination and control:

Control and coordination is obtainable through both informal

and formal means. Strong leaders control and coordinate the effort on an
informal basis. But effectiveness can be improved through formal
instrument and control.
Types of Sales
Organizational structure
The sales department’s structure evolves from the need of the
business. Numerous factors influencing the structure of the
individual sales department. Organizational planner
distinguishes among four basic types. These are:
Line sales Organization:
This is the oldest and simplest sales
organizational structure widely used in smaller firms with
limited sales person. The chain of command runs from the top
sales executives down through subordinates. It is explained
through the following diagram:
 General Manager

Sales Manager

ASM ASM ASM ASM

Division-1 Division-2 Division-3 Division-4

Sales people Sales people Sales people Sales people

Line and staff Sales organization

This organization is found in large and medium size

firms employing substantial number of sales personnel
and selling diversified product lines over wide
geographic areas.

Here it provides top sales executive with a group of

specialist or experts in different areas. This staff helps
to conserve the top sales executive time and frees them
from excessively detailed work.
 President

Vice president in charge of Mkting

Manager marketing
Advertising Manager General Sales manager
Research

Assistant General Sales Promotion Director of

Director of Sales personnel Dealer &
Sales manager Manager
sales Director Distributor

District Sales Manager

Branch Sales Manager

Sales personnel
 Functional Sales Organization
In the functional Sales organization sales people
receive instructions from several executives but on different
aspects of their work. Provision of co-coordinating the functional
executives is made only at top of the structure.
Director of
Sales Administration

Installation Manager to Manager of Manager of Manager of Manager of

& Service Sales sales Sales Dealer & Sales
Manager Training supervision Promotion Distribution Personnel

Sales Sales Sales Sales

Sales Sales
Person Person Person Person
Person Person
Committee Sales Organization:

It is a method of organizing the executive group for

plan and policy formulation while leaving actual
operation including implementation of plan and
policies to individual executives.

Thus many firms have a sales training committee

that meets to draft training plans and formulate sales
training policies. Implementation of this plan and
policies however is the responsibility of sales training
manager.
Advertising and selling:

The sales wing of an organization has two major sections whose functions are directed personally and
impersonally. That is to say direct effort by sales army and indirect effort by advertising. It is hard to say
which is more important as both are important and complimentary to one another.

Interdependence of advertising & personal selling

1.It creates a colorful background

2.It lightens the burden of sales job.

3.It instills self confidence and initiatives

4.It acts as a salesman for retail Organization.

5.Salesman fulfils the promise made by advertising

6. The effectiveness of advertisement can be measured through personal selling

7. Personal selling enhances content clarity than advertisement, which is useful for customers.

8.It generates immediate response and long-term customer loyalty in comparison to advertising
Advertising Vs Selling

Evaluation Factor Advertisement Selling

1. Objective Appeal to the mass audience Deal with one or few

2. Audience Mass One or Few

3. Message Uniform Specific to each audience

4. Cost Low per audience High per audience

5. Flexibility (in communication) Low High

6. Feedback Very late/gradually Immediate

7. Credibility Moderate High

 DESIGNING & MANAGING SALESFORCE:

S.F. S.F. S.F.

Designing S.F. S.F.
Structure Size Compensation
Sales Force Objective Strategy

Recruiting & Supervising Motivating Evaluating

Managing Training
Selecting Sales force Sales force Sales force
Sales Force Sales force
Sales force

Training in Relationship
Improving Selling Negotiation Building
Sales force Technique & Skill Skill
Effectiveness Sales force
 RECRUITMENT
Recruitment is the process of discovering potential applicant for actual and anticipated
organizational vacancies

Process of Recruitment:

1. Determination of nature of salesman.

(a) Job analysis (job description, job specification)

(b) Review of present salesman.

2. Determination of the number of salesman.

3. Determination of the sources of recruitment.

(a) Internal sources

(b) External sources.

SELECTION

Selection is a process to determine whether an applicant

meets the qualifications for the specific job and to select the
applicant who is most likely to perform well in job.
 1. Preliminary arrangement

2. Screening interview

3. Filling in application blank

4. Selection tests

Selection 5. Main interview

procedure 6.

7.
Reference call/investigating applicant’s background

Medical examination

8. Determining terms of service

9. Appointment, and

10. Induction or Orientation.

 Sales training is an organized activity involving fact finding,
TRAINING OF planning, coaching, practicing and purposive attempt to develop the
SALESMEN selling skills so as to increase the ability , knowledge and experience
of the salespeople.
Importance of Sales Training
Importance to the Organization:

Increase in sales

Stability of customer & salesmen

Low supervision cost

Lower advertising cost

Increase goodwill of the firm

Availability of more capable sales person

Loyalty of salespeople will increase

Importance to the
salesman
Increase their efficiency

More remuneration by way of commission

Promotion chances due to increase in efficiency

It develops creativity & thinking power

Others such as opportunity for personal development &

advancement, increase in varieties of product knowledge
Importance to customer
Proper attention towards customer

Proper understanding of customer problem

Proper advise will be given to the customer in their buying decision

Methods of Sales Training
1. Group training methods. 2. Individual training
methods.
i. Lectures or classroom
instructions i. On the job training
ii. Group discussion method ii. Job rotation training
iii. Sales conference method iii. Personal discussion
iv. Case study method. iv. Correspondence.
v. Role playing method.
vi. Simulation method/
Training Centre method
 Motivation is a process in which the needs motives and
MOTIVATING desires of salespersons are identified and direct or motivates
SALESMEN them towards achievement of organizational goals.
 Nature of job

Repetition of activities

Need for Domestic problem

motivating Development of team spirit

Salesmen Market hazardous & harassment

Helps in building morale

Process of motivation
Determination of Studying the Determination of
objective needs of salesmen motivational tools

Selection and
Integration of
Communication application of
interest
suitable motivator

Developing team Feedback or

spirit follow-up.
Methods of motivating
salesmen
Financial motivation :Financial incentives include commission,
profit sharing, traveling allowance, bonus etc.

Non-financial motivation: It includes motivators like

participation, credit, promotion, liberal supervision, good
behavior, efficient leadership, responsibility, personal contact,
feeling of accomplishment, work satisfaction, etc. are present. The
non-financial methods of motivation may be categorized as:
Individual & Group methods of motivations
Individual methods of motivation

Personal contacts with salesmen

Correspondence with salesmen

Promotion

Responsibility

Opportunities for advancement

Feeling of accomplishment

Recognition and rewards

 Sales conferences and convention

Sales contests
Group Periodicals & Sales literature for salesmen

method of Participation

motivation Relations with sales supervisors

Motion picture for salesmen.

THANK YOU