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Unit No.3 Sales Organization
Unit No.3 Sales Organization
Unit No.3 Sales Organization
Sales Organization
In case of small firms, the proprietor does this exercise himself or with
the help of a few salesmen under his direct supervision and control, and
so, the need for sales organization does not arise. But as the business
expands and the market to be covered becomes wider, it becomes too
difficult for the proprietor to undertake and control the sales activities
personally. So, there arises the need for an efficient sales organization.
5. It has to lay down a clear and sound selling policy, i.e., policy relating
to the methods or channels of distribution, terms and conditions of sale,
prices of the products, the rate of trade and cash discounts, conditions
regarding the return of goods, the period of credit, the mode of payments,
etc.
6. It has to undertake the work of recruitment and selection of salesmen.
12. It is also concerned with the selling routine i.e, it has to do the routing
work relating to the sale of goods, such as answering the inquiries,
accepting the orders, execution of the orders, sanctioning of credit,
preparation of invoices and bills. Sending of statement of accounts,
collection of outstanding amount, etc.
When there is a large number of consumers who are looking out for
special services.
The costumer is ready to pay for the services offered. Here, the
target is mostly premier customers.
Area Type
In this type of organization, departments are divided accord ing to the
attributes of areas. They can also be divided geographically. The
following illustration shows the layout of the area type organization.
Advantages of Area Type
Products − Customers can be served with the latest products and
customized products.
Transport cost − Transport cost can be reduced because the
division has been made according to areas.
Customer service − Company can provide better customer services
as the division is made according to area. Thus, the company can
understand the customer psychology and perception better.
Sales performance − The sales performance can be compared
according to zones and steps can be taken to improve.
Disadvantages of Area Type
Costly − It is costly as compared to other types and increases
expenses of the company.
Markets − It becomes difficult for co-ordination for the General
Manager for different markets.
Conflicts − There may be conflicts regarding resource allocation
between zones.
Suitability of Area Type
The area type of organization is suitable in the following cases −
When the area or the territory for market is very large.
Where the market is different based on zone.
Where the product is differentiated depending on zone.
Where the sales volumes are high and generate more revenues.
The states provide the incitement to action on the part of the organism.
Another way of expressing the same situation and the consequences is
by using the term “drive.” The food need in the organism precipitates
the hunger drive. There is thus close association between the two
concepts need and drive.
Some lack in the organism leads to an activity and this activity ceases
when there is some “satisfaction,” when a new condition is produced in
the organism by the intake of food, water, etc., that is, when there is
“drive-reduction” or “need satisfaction.” Often these two terms are used
as equivalents. But there is some difference between the two terms. For
example, a person who has been without food for about ten or twelve
hours, reports that feelings of hunger tend to come and go in spite of
the fact that the lack of food (need) continued.
However, both the terms need and drive refer to bodily states that
initiate tendencies to general activity. The states are frequently
experienced as feelings of tension or restlessness. They are not learned.
They are aroused when the condition of the organism departs
considerably from a desirable or optimum condition.
The hunger drive develops when the organism is deprived of food for
many hours; the resulting restlessness also emerges without any
learning. In the new-born infant the hunger drive leads to general
activity. But in the adult the energy state associated with hunger drive
becomes associated with a goal (food) and leads to highly specific
activity; this comes about through the learning process.
According to this theory the individual learns those activities that are
immediately followed by tension reduction. This view asserts that we
learn to eat because eating is followed by reduction of the hunger drive.
Because of the instrumental nature of such drive-reducing acts, this
kind of learning has been called by Skinner (1953) “instrumental
learning” or “instrumental conditioning.”
This is how through learning the general activity of the innate drive is
linked with the goal; that is, the hunger drive is linked with the goal,
milk, through learning. The activity is now centred around a goal. Thus,
a goal may be defined as a state of affairs toward which learned
behaviour is directed.
3. Motivation as Goal-Orientation:
When the hunger drive is there, tension or restlessness exists and the
infant exhibits general activity. After a period of learning the infant
associates hunger with milk, because milk leads to drive reduction. As
a result the infant seeks milk; there is a link between the drive and the
specific goal. The infant has now acquired a motive through learning.
The infant for several weeks after birth exhibits behaviour that appears
to be random; the infant behaviour is essentially unorganized. When
the child is five years old there is a great change in behaviour. It has
become modified so that what the child does at one moment is related
to some behaviour of a moment later and in its turn that is related to
the next behaviour and so on.
In other words, his activities are all organized in order to reach a goal;
thus with growth, the random general activities of the infant become
organized into a series of specific activities which lead the child of six or
eight to attain a goal and he cooperates with other children in his play
activities. With further growth as an adult he cooperates with others in
the world of work.
Harlow says that this can be observed even in a child; when the child
has had a meal, he may be led by his “curiosity” to go out and learn some
things. Such a behaviour then is goal- directed but the behaviour is not
initiated by a drive; in other words, the drive-reduction principle cannot
be applied to learning situations of this kind.
Leuba (1955) put forth the hypothesis that we tend to learn those
responses that produce an “optimum” level of stimulation (or tension).
If a person is hungry, his drive state is very high and he tends to learn
those responses which ‘reduce’ the hunger drive. But if a person has
satisfied all his drives, the total level of stimulation is “below” the
optimal level and he seeks to “raise” it by actively seeking contacts with
the environment.
Thus, there are no simple connections between human motives and the
primary drives. This is because of the fact of learning. Human beings
can acquire a number of motives. This is what gives human behaviour a
considerable amount of flexibility. Though as far as primary drives are
concerned there is hardly any difference between man and animals, it
is the fact of acquisition of motives that makes human behaviour very
complex.
Further, man has learned through interaction with his fellow human
beings how to achieve goals through collective efforts. He acquires
motives of being concerned with what happens to other human beings;
he also learns to look at himself as others see him. In all this language
helps very greatly.
Thus, human motives are quite distinctive in their number; they are
based on the primary drives; but there are many possibilities of learning
so that the links between human motives and the underlying primary
drives in complex, organized, societies are difficult to trace.
5. Social-Personal Motives:
Maslow (1943) proposed a theory of specific order of development of
motives. The most primary and basic needs are the physiological needs
like hunger, thirst, etc. When these are adequately satisfied the safety
needs arise; for example, security and order. When these are satisfied
the need for belongingness and love, the desire for affection and
identification emerge; the child wants to be accepted by his parents,
teachers, friends, etc.
With the satisfaction of these needs, the esteem needs arise; there is
self-esteem from mastery and confidence in one’s worth, adequacy and
abilities; there is also the need for social approval. Finally emerges the
need for self-actualization through creative self-expression in personal
and social achievements; it also involves the need to satisfy one’s
curiosity and to understand one’s world and the society in which one
lives.
Thus, Maslow has arranged the needs in a hierarchic order from the
physiological needs at the base to the self-actualization need at the top.
According to Maslow, an individual’s lower needs must be satisfied
before the higher needs can operate.
Further, the safety need and love need emerge very early in life within
the first three years but they persist, like the physiological needs,
throughout life. However, it must be realized that when the
physiological needs are not adequately satisfied, the esteem needs and
the need for self-actualization cannot emerge. In fact this is one of the
basic obstacles to social and national development in India.
The basic needs of hunger, thirst, clothing and housing have not been
adequately satisfied for more than 75 per cent of the people. It is
obviously futile to expect the Indian peasant and workman who does
not possess adequate nutrition etc., to have self- esteem and become
highly productive to improve the economic condition of the country. It
is from this point of view that one should look at the hierarchic structure
of motives.
On the other hand, there are the growth needs. They are also inherent
in human beings like the basic needs. Their aim, however, is not to make
good a deficiency. Their aim rather is to grow up psychologically and
socially. There is here an aim beyond mere survival. There are the
cognitive needs, to know and understand.
They are there right from early childhood days. The child of three or
four asks any number of questions about objects and events. Our
experiences leave traces in the mind. Memories are stored up. But mere
storage of information is of no use in our social or intellectual life. They
have to be organised so that the past memories help us to understand
the various problems which arise as one grows up.
The desire to know and understand is very useful, not for mere survival,
but for the growth of the individual personality and the culture and
civilization to which the individual belongs. The need for self-
actualization belongs to this group of growth need. Also this need
generates values like social justice, goodness beauty, order, unity and
so on. They become very important motives in the development of the
individual and society.
The ancient Indians spoke of four Purusharthas, the four ends of man,
namely, dharma, artha, kama and moksha. Kama refers to pleasure and
sex. Artha refers to wealth and power. Dharma refers to righteous
dealings with other human beings. Moksha refers to self-realisation or
self-actualization. It is obvious that kama and artha may be classed as
deficit motives which help in survival. But dharma and moksha pertain
to the development of the individual and the society.
The need for self-actualization may be so strong that even a person like
Buddha long ago left his wife, child and the princely mansion and went
in search of growth, peace and tranquility. Similarly in the 20th century,
there is the case of Shri Aurobindo Ghosh and Shri Ramana Maharshi
who abandoned everything in search of self-actualization. The two
Ashrams established by them in Pondichery and Tiruvannamalai have
been places of pilgrimage like Varanasi and Ramesvaram. People go
there, not to worship the images but to breath the atmosphere.
Among the most powerful social motives are those for affiliation,
independence, and achievement.
Frustration arises when the person cannot achieve the goal. These frus-
trations may result from physical or social forces or from personal
factors. The person may respond to the frustration with adaptive be-
haviours such as intensification of effort to achieve the goal, reorganiza-
tion of the perceptual field or substitution of a goal that is attainable; or
his behaviour may be maladaptive so that there is aggression,
regression, withdrawal, rationalization etc., which interfere with the
healthy functioning of the individual.
As regards the cognitive side, they said that the perceptual and cognitive
field is normally organized and meaningful. This is illustrated by the
tendency of people to form integrated impressions of others, to jump to
conclusions, and to resist changes in attitudes. When an individual
becomes a member of a group his cognitive structure, his conception of
the world, of the fellow human beings and the society, are all affected
by the characteristics of the group.
Essay # 8. Perception:
By the time the infant is one year old he has developed considerable
acquaintance with his world. Observing and identifying objects and
happenings is an important part of his life. This is perception. It is a
process of becoming aware of objects or events or characteristics by
means of sensory operations; previous experiences influence present
perceptions. Thus, perception is a highly complex process.
The newborn infant has eyes, ears and skin which are quite sensitive to
the various stimuli; he has the necessary equipment to receive sensa-
tions of cold, of warmth, and of pain or pressure; warm milk when
swallowed is satisfying to him; a well-filled stomach changes his be-
haviour from crying and restlessness to quietness and sleepiness.