Chapter-1

Sales
Organization
2019 – 2020
GRADE – 12

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 Unit-1 Sales Organization

Introduction to Sales Organization:

Meaning: Sales organization is a structured framework, specifying the formal authority and responsibility
among persons working in the organization. It consists of group of individuals working to achieve selling
objectives to increase sales, maximizing profits, expanding market share etc. It establishes coordination
among various selling activities necessary for the achievement of selling objectives. Sales organization is
not a separate unit. It is affected by other functional areas such as production, finance, personnel etc. Sales
organization organizes group of persons in the form of a suitable structure, depending upon the
requirements of the enterprise. Various forms of sales organization structure can be line organization, line
and staff organization functional sales organization, committee form of sales organization.
An organisation is a tool on which a managerial philosophy is translated in action. With the
philosophical changes organisations, organisational goals are revised and changes are made in the
organisation to keep into tune with environmental changes. Once sales plan and sales strategy have been
finalised, next step is to structure the organisation to achieve firm‘s objectives. Decisions must be made
regarding sales tasks to be performed so that sales people could be grouped to ensure efficiency and
effectiveness. Sales activities can be well coordinated provided sales responsibility; line authority and
accountability are defined. In this unit, we shall talk of organisational structure, define work-relationships
between sales employees and their superiors.
The main task of a sales organisation is to effect sales. It involves transfer of ownership of
merchandise on terms satisfactory to both the consumer and the marketer. It requires to be done at lowest
possible cost to achievement of profit through service. A sales organisation comprises people working
together to market product or service. In a large firm, sales organisation may have different sections like
instalment payment system, mail order transacting through post, retail section controlling shops,
consignment sales and online sales.
Sales organisation consists of human beings or persons working together for the effective
marketing of products manufactured by the firm or the products purchased for resale. Sales organisation co-
ordinates the efforts of members of a group to bring about a desirable result. It provides an efficient,
economic and flexible administrative set up to ensure timely movement of products from the warehouse to
the ultimate consumer. Thus it provides satisfactory job to buyers and sellers.
A sales organisation has a number of departments. It has a planned and well co-ordinated structure.
It performs the functions of planning, organizing and controlling marketing and distribution of products.
Sales organisation is a foundation for effective sales planning and sales policies. Systematic execution of
plans and policies and programmes of a sales organisation control all the sales activities. As such it ensures
maximum efficiency and profitability without losing consumer service and satisfaction.
Definition:
According to Boiling, ―A good sales organisation is one wherein the functions or departments have each
been carefully planned and co-ordinated towards the objective of putting the product in the hands of the
consumers—the whole effort being efficiently supervised and managed, so that each function is carried out
in the desired manner.‖

According to H.R. Toosdal, ―A sales organization consists of human beings working together for the
marketing of products manufactured by the firm or marketing of commodities which have been purchased
for resale.‖

According to Still and Cundiff, ―A sales organization is group of individual striving jointly to reach
certain goals and bearing formal as well as informal relations to each other.‖

According to American Marketing Association, ―Sales organization is the planning, directing and
coordinating the activities of sales force for increasing organizational efficiency.‖

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 Sales organisation which bridges the gap between the market and the productive capacity of the firm. As
the market changes, the sales function accommodates through adjusting its organisation and manner of
operation. Shifts in size of market operation, market trends, competitive position and other environmental
factors may necessitate changes in existing sales organisations. An effective sales organisation usually
provides for growth and adaptability to such changes.

A part from providing a basic structure to facilitate working, Sales Organisation has the following
basic purposes.
a) Defines lines of authority
b) Ensures that all necessary activities are assigned and Performed
c) Establishes lines of communication
d) Provides for coordination and balance
e) Provides Insight into avenues of advancement
f) Economises on executive time
Characteristics of Sales Organization:
Sales organization has the following characteristics:
1. Sales organization is a part of the total enterprise.
2. It works for the attainment of common selling objectives like maximizing sales volume, maximizing
profits, increasing market shares etc.
3. It consists of group of people engagement in selling activities like distribution, sales-promotion, personal-
selling, advertising, etc.
4. It defined the duties, responsibilities and rights of people engaged in selling activities and coordinate their
activities.
5. It establishes formal and informal relationships among persons engaged in selling activities.
6. The success of sales organization depends on the unified and coordinated efforts of sales personnel.
7. The sales organization works under the direct control of General Sales Manager.

Importance of Sales Organisation:

A sales organisation is the mechanism through which a sales manager‘s philosophy is translated into action.
The sales organisation provides the vehicle for making decisions on planning, organisation, selection and
training of salesmen, their motivation, directing and controlling them. It also provides vehicle through
which these decisions are implemented.
―A sale organisation is like a power-station sending out energy which is devoted to the advertising and
selling of particular lines and there is a tremendous waste of energy between the power station and the
points where it reaches the consumers. Therefore, there arises the necessity of organizing the sales
department.‖ —Boiling
―Sales are the life blood of business,‖ Sales organisation is part and parcel of a business firm. All the
departments are carefully plaited in a good sales organisation.
1. The purpose of sales department is not to sell goods to distributors but to get them to use by ultimate
consumers. The sales organisation must study the distribution of wares and the consumers can easily get
them.
2. To attain the above objective, the head must see to plan and organise different functions necessary to take
product from the factory to the consumer,
3. The sales organisation must look at easy distribution of products through all channels, It works in dual
capacity, first, to motivate Wholesalers and Retailers to stock the products and motivate the consumers to
buy these products.
4. Due to lack of proper sales organisation large scale production is impossible.. Mass production and mass
sales are intertwined.

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 5. A sales organisation aims at economic distribution of goods and services. Sales organisation stimulates
demand and reaches out to potential customers. The potential customers are willing and able to pay for the
goods and services.
6. A properly working sales organisation reduces risk to other departments. If the sales department works
inefficiently, the purchase and finance departments will be at risk.
7. The sales department provides jobs to many people.
8. The want may remain dormant unless the means of satisfying it are offered.
9. In a small firm, the need for formal organisation may not be pressing. But, once the sale increases, sales
promotion manager, advertising manager and market research managers are to be appointed. Thus, there is
need for coordination among them and coordination is provided by an efficient sales organisation.
10. Sales organisation helps divide and fix authority.
11. It is possible to avoid repetitive duties.
12. Executive development is possible.
13. Individuals may have a scope of being given promotion.
14. Sales organisation ensures proper supervision of sales force.
15. Sales organisation enables the working of policy formulation and implementation.
16. To move the products from the factory to the consumers, the sales organisation is necessary— demand
creation.
17. To handle the orders promptly i.e., from the stages of enquiry to order at full satisfaction to consumers.
18. Collection of dues is also important. Several drops make an ocean; at the same time, milking cows should
not be neglected.
19. To keep good public relations by redressing the complaints if any, and to create a good image of the firm.
20. Production in anticipation of demand, which must be sold.
21. To create demand for the products through efficient salesmen. Execution of orders without delay.
22. Satisfactory action against complaints from customers.
23. Keeping enough stock by looking at the future demand.
24. Maximum contribution to profit.

Functions of a Sales Organization:

Modem sales organization is not only profit-oriented but also customer-oriented.
The following are the important functions of a sales organization:
1. Analysis of markets thoroughly, including product and market research.
2. Adoption of a selfishly sound but defensible sales policy.
3. Accurate market or sales forecasting and planning the sales campaign, based on relevant data.
4. Deciding about prices and terms of sales and pricing policies.
5. Packaging for the consumer wants a container which will satisfy his desire for attractive appearance,
keeping qualities, utility, and correct price and many other factors.
6. Branding the product.
7. Deciding the channels of distribution.
8. Selection, training and control of salesmen and fixing their remuneration.
9. Allocation of Territory and quota-setting.
10. Sales programmers and sales promotion activities.
11. Arranging for advertising and publicity.
12. Order preparation and office recording.
13. Preparation of customer‘s record cards.
14. Scrutiny and recording of reports.
15. Study of statistical records and returns.
16. Maintenance of salesmen‘s records.
Assessment I
1. The main task of a sales organisation is to effect --------------

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 2. The purpose of sales department is not to sell goods to distributors but to get them to use by ultimate -----
--------
3. To attain the above objective, the head must see to plan and organise different functions the sales
organisation must look at easy distribution ---------through all channels,
4. A sales organisation aims at economic distribution of goods and services
5. Due to lack of proper sales organisation large scale -----------is impossible.
6. A properly working sales organisation reduces risk to another -----------s
7. The sales department provides jobs to many -----------
8. The want may remain dormant unless the means of satisfying it are ------
9. In a small firm, the need for formal organisation may not be -------

1. Sales 2. Consume 3. to plan and organise 4. Products 5. production 6. Department 7

people 8. offered. 9. pressing

Functions and Factors affecting sales structure

The sales structure is affected by various factors such as product and servicerelated factors, organisation-
related factors, marketing mix-related factors and external factors.
1. Product and Service-related Factors:
 The Sales Structure is determined by the nature of the product or service. FMCG (Fast Moving Consumer
Goods) products like Shampoo, Oils. Creams, and Soaps, the organisation‘s size is large and flat at the
lower level since it caters to a large consumer base and frequently demanding products.
 Per period quantity of goods to be marketed and quantities in each sale would determine the organisation
structure of sales. Where the product-mix and the size of sale per category are large, the organization would
be complex and large-sized.
 In the same way, if the service requirements are large, like water purifiers, the organisation would be larger
and complex as it is to control over service staff or franchisees offering services.

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  If the enterprise is dealing with large number of products, it needs large sales organization. E.g. Hindustan
levers is selling many products like Lipton tea , lux soap , lifebuoy soap, while company which is selling
few products will have small sales organization
2. Organisation-related Factors:
 If the firm is small in size, it will offer a limited number of goods to a limited number of consumers, the
organisation of sales will also be simple.
 The enterprise offering niche market and highly specialised products would have a simpler sales
organisation.
 On the other way, if the size of a firm is large with greater volume of production and sales to be done
through multiple channels, the sales structure would be large and complex. Thus, the size of the company
will have effect on the sales organisation.
 If the managers are competent and innovative to initiate new sales plans and policies to be in tune with the
developments in the market, the sales organisation would be large and complex
 If the level competition is high in the market , many salesman have appointed to attract the customers so the
size of the sales organization becomes large
 If the organisation has sufficient financial resources, this organization would directly sell to consumers, the
sales organization would be large and complex. The sales organization would be simple, provided the
organization markets through intermediaries because of limited financial resources.
 In case management adopts a centralised policy, most of the sales-related decisions and functions are done
at the level of corporate head office, the sales organisation would be very simple. On the contrary, if the
management adopts a decentralised policy, the function to take decision is transferred to divisions or local
offices, the sales organisation would be large and complex.
 Ability of executives is also a factor to determine the structure. Capable Executives will keep organisation
line type. In case of less capable executives, authority will be dispersed.
3. Marketing Mix-related Factors:
 About product of marketing mix, if the product mix is large and the product mix is marketed overseas, or
India, a diverse national market, the sales organisation would be very large and complex.
 The place aspect of marketing-mix, i.e., methods of distribution also affect the sales organizational
structure. Firms busy with intensive distribution strategy would have complex and large sales organisations,
best suited to serve markets with wider and deeper pockets.
 As regards price policy, in case of low-priced products, the sales organisation would be large. However, in
case of cars, TV sets, etc. the sales organisation would be small.
 The firms, selling aggressively will have a complicated structure of sales organisation. If the firm caters to
various segments, the sales organisation will be large and complicated. If the firm sells through sole selling
agents or clearing and forwarding agents, the sales organisation will be small and less complicated.
4. External Factors:
 The customs and traditions used during the past years also determines the size and structure of sales
organisation.
 Due to level of channel conflict, it will not be possible to develop alternative channel as was visible when
IBM and Compaq did to beat Dell Computers. Because of Competition, the organization may decide to
enter new areas or new markets.
5. Others:
 A company‘s profit goal is of great importance to the sales organisation. A company desires a place for
itself through market share, quality, price, competition, disposition toward change, relationships with
suppliers and social philosophy.
Role or Significance of Sales Organization:
a) To plan purchase:
The firm‘s sales are depending on the sales prospects of it. Consumer is the boss who decides the
dimension of what he want, where he want, at what cist he want and so on. This boss in the king pin and in
the firm will have to understand product planning and development accordingly.
b) To create a pattern of demands for products:

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 The products of the firm are not sold themselves. Somebody must be there to push them form the
shelves to the Bags of the customers; such push is not physical one; it is psychological. Salesman does it
directly and advertising indirectly.
c) To handle the orders received:
Selling routine calls for highly specialized tasks of receiving enquiries, entertaining them with latest and
least quotations, appearing for orders, receiving orders, packing the products as per the instruction of the
customers, dispatching them to the expectation s of the buyers-may be individuals or organizations. All
these are crucial and constructive tasks.
d) To collect the dues:
Credit sales from the bulk share in these days of fast moving competition. If one only speaks of hard cash
business, the sales organization has to pull the shutters down because, credit is the breath of economic
transactions. Collection of dues is like performing a tight rope dance where utmost care is to be taken to
maintain the balance which is the secret of success.
e) To handle the task of personal management:
Management of sales force demands good many activities. Sales-force is to be selected, trained, placed,
transferred, promoted, motivated, maintained and controlled. These aspects require investment in terms of
talent, time, and treasure.
Departments in Sales Organization
Sales organization may have following departments:
(1) Physical Distribution Department: This department performs the functions of storage, packing,
dispatching and transportation. This department has various sections like storage section, packing section,
transportation section etc. Each section is headed by person having specialization in his field.

(2) Advertising Department: The function of this department is to plan advertising campaign, to select media
of advertising keeping in mind nature of product, nature of customers, availability of funds, media cost,
media circulation; and to implement advertising-programmes etc. It helps to increase sales by informing,
persuading and reminding people about the goods and services.

(3) Personnel Department: A wing of personnel department works in the sales organization. This department
performs the function of recruiting and selecting salesman, training them, placing them, motivating them,
coordinating and controlling their activities etc. This is headed by personnel manager. This department
solves the problem related to human element in the sales organization.

(4) Public Relation Department: This department perfoms the function of knowing public opinion about the
firm. It works to build positive image of the brand, product and firm. This department establishes contacts
with customers, suppliers, employees, media, bankers, government officials, political leaders, social
organizations, other competing and non-competing organizations. This department is headed by public
relation officer. For success of business in the long run, good public relations are must and this department
works to create and maintain good public relations.
(5) Sales Department: Sales department is a very important part of sales organization. The sales manager acts
as the head of the sales department. In a big organization, he is considered as next to the top authority in the
chain of command. In small organization there is no separate physical-distribution department and the debt
collection department.
(6) Market Research Department: The main task of this department is to conduct research about consumer
behavior. To measure level of consumer satisfaction or dissatisfaction, to explore new markets, to collect
information about exiting demand and supply, to measure effectiveness of advertisement, to find effective
channels of distribution etc.

(7) Debt Collection Department: Now-a-days goods are sold on both cash and credit basis. The system of
selling durable and semi-durable goods on installments is very common. These installments must be
collected well in time to avoid risk of bad debts and loss of interest due to blockage of funds. For this the

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 firm must have efficient debt collection department. This department tries to reduce debt collection period
without disrupting relations with customers.

(8) Statics and Record Department: This department has two sections:
(i) Statistics section
(ii) Record section.
Statistics section collects data and information from present consumers, potential-consumers, market
intermediaries, salesman etc. It collects information about sale, repeat sales, quantity demanded by
customers, sales of competitive firms, percentage change in market share, etc.
Record department maintains and preserves this data in such a way that it can be readily available to the
decision-makers. The data is stored in the form of papers, files, floppies, and other electronic devices. This
data is useful for decision making and sales forecasting.
(9) Sales Promotion Department: Sales promotion is defined as those promotional activities that provide
various incentives to the sales force, distributors, consumers for promoting sales. This department is headed by
sales promotion manager. This department arranges various sales-promotion activities to promote sales.

Assessment II
1. The Sales Structure is determined by the nature of------------
2. If the firm is small in size, it will offer a limited number of goods to goods to ----------------of consumers, the
organisation of sales will also be simple.
3. In case of cars, TV sets, etc. the sales organisation would be ----------
4. ----------------------used during the past years also determines the size and structure of sales organisation
5. A company‘s ----------------is of great importance to the sales organisation.

1. product or service 2. a limited number 3. small. 4. The customs and traditions 5. profit goal

Basic Types of Sales Organizational Structures

Organization structure is the arrangement of people and tasks to accomplish organizational goals. There
are four basic types of sales organizational structure line, line and staff, functional, and committee. The
grouping of activities into positions and the charting of relationships of positions causes the organization to
take on Structural form.
The first two types (line and line and staff) are the most common. Functional and committee organizations
are rare. Most sales departments have hybrid organizational structures, with variations to adjust for
personalities and to fit specific operating conditions. The sales department‘s structure evolves from the
needs of the business. No two companies have identical sales organizations, because no two have identical
needs.
The customers, the marketing channels, the company size, the product or product line, the practices of
competitors, and the personalities and abilities of the personnel are but a few of the factors affecting the
organizational structure of the sales department.
I. Lines Sales Organization
 The line organization is the oldest and simplest sales organizational structure. It is widely used in smaller
firms and in firms with small numbers of selling personnel-for instance, in companies that cover a limited
geographic area or sell a narrow product line.
 Here the authority is centered in one-person i.e., President Sales. Authority goes downward in a straight
line. It can be seen in the following chart

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 President Sales

Vice President Vice President

(Field) (office)

Sales
Sales Manager
Manager(South
(North & East)
& West)

SalesPersons SalesPersons

 The line sales organization is the most basic forms of sales organization, characterized by a chain of
command running from the top sales executive down to the level of the salesman. All executives have line
authority over their subordinates who in turn are accountable only to their immediate superior. Since lines
of authority run vertically in this structure, executives at each level are generally independent of all others
at the same level
 Responsibility is definitely fixed, and those charged with it also make decisions and take action. Lines of
authority run vertically through the structure and all persons on anyone organizational level are independent
of all others on that level.
 Line organization is extensively used in similar firms are those dealing in a narrow product line, or selling
in a limited geographic area. The line organization places great demands on the time and abilities of the top
sales executives
 The line sales organization sees its greatest use in companies where all sales personnel report directly to the
chief sales executive. In these companies this executive often is preoccupied with active supervision and
seldom has much time to devote to planning or to work with other top executives.
Occasionally, however, the line sales organization is used where more than two levels of authority are
present. Figure shows a fairly large sales department organized on the line basis. The sales manager reports
to the general manager, assistant sales managers re-port to the sales manager, and salespeople report to
assistant managers. Theoretically, there is no cross-communication between persons on the same level.
Contacts between persons on the same level are indirect arid are effected through the next higher level. For
example, the assistant sales manager of Division 1 arranges to confer with the assistant sales manager of
Division 2 through the sales manager. Similarly, contacts by sales personnel with the office staff flow up
through the organization to the sales manager and back down through the assistant sales manager in charge
of the office to the office staff.

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 General sales
manager

sales manager

Assistant sales Assistant sales Assistant Sales

manager manager Manager
Division-1 division-2 Division-3

salespeople sales people Sales People

Advantages of Line sales Structure

 The basic simplicity of line organization is the main reason for its use.
 Because each department member reports to only one superior, problems of discipline and control are
small.
 No delay in policy formulation as well as implementation.
 There is no confusion of authority.
 It enables develop strong executives and gives opportunity to capable men to rise up.
 Lines of authority and responsibility are clear and logical, and it is difficult for individuals to shift or evade
responsibilities. The responsibility cannot be shifted.

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  Definite placement of authority and responsibility saves time in making policy changes, in deciding new
plans, and in converting plans into action.
 The simplicity makes it easy for executives to develop close relations with salespersons. With this work-ing
atmosphere, it is not surprising that executives who come up through a line organization are frequently
strong leaders. As the typical line sales department has few organizational levels, administrative expenses
are low.
Weakness of the Line Sales Organization
 The head needs outstanding ability and rare qualifications, and should be well versed in all phases of sales
management, for there are no subordinates with specialized skills and knowledge.
 Even if the head is an all-around expert, there is insufficient time for policymaking and planning, since
rigidity of the line structure requires that a great deal of attention be given to direction of sales operations.
The head often must make decisions and take action without benefit of planning. Under such conditions,
results are often dis-appointing.
 For rapidly growing concerns and for those with large sales staffs, the line organizational structure is
inappropriate. As the department grows, new layers of executives must be added to retain control. Orders
and directions must be passed down through a growing series of administrative levels. Moreover, as growth
proceeds, earlier advantages of close relations among executives and salespeople are sacrificed and
maintaining morale becomes a greater challenge. Line type of sales organization fosters generality, rather
than specialism.
 There is too much responsibility on one person.
 One person can be good either in planning or implementation.
 It leads to develop ‗yes man‘.
 With too much authority concentrated in top man, business is being held up due to loss of the man.
 Subordinates don‘t get an opportunity to grow and develop
Suitability
 Line type of organization is most suitable for one-man firms or the ones grew out of the beginning, made
by one person.

II. Line and Staff Sales Organization

 The line and staff sales department is often found in large and medium-sized firms, employing substantial
numbers of sales personnel, and selling diversified product lines over wide geographic areas.
 In contrast to the line organization, the line and staff organization provides the top sales executive with a
group of specialists-experts in dealer and distributor relations, sales analysis, sales organization, sales
personnel, sales planning, sales promotion, sales training, service, traffic and warehousing, and similar
fields.
 This staff helps to conserve the top sales executives‘ time and frees them from excessively detailed work.
They make it possible for their chiefs to concentrate their efforts where they have the most skill.
 If the top sales executive is not equipped, through prior training or experience, to handle certain problems,
staff specialists assist in increasing over-all effectiveness of the department.
 Similarly, by delegating problems involving considerable study or detailed, analysis to staff executives the
top sales executive has more time for planning and for dealing with higher-priority matters.

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 President- Sales

VP Marketing
Sales

Advertising General Sales Market Research

Manager manager manager

Assistant in
Director of sales Director of Sales Assistant General Sale Promotion Director of Sales
Assistant General
training personnel Sales Manager Manager Relation
sales manager

District
salesmanager

Branch Sales
Manager

Sales Personnel

Wholesalers

Retailers

Dealers
Staff sales executives do not have authority to issue orders or directives. Staff recommendations are
submitted to the top sales executives, who if they approve, transmit necessary instructions to the line
organization
The general sales manager reports to the vice-president in charge of marketing as does the advertising
manager and the manager of marketing research. Six subordinates report to the general sales manager, but
only one, the assistant general sales manager, is a line executive. Four of the five staff executives have
responsibilities in specialized fields; the fifth, the assistant to the general sales manager, is given more
general assignments. Note the difference between the assistant to and assistant. The assistant to is a staff
executive who is given a broader operating area than those staff specialists with more descriptive titles. In
contrast, the assistant has general line authority delegated by the superior. The assistant general sales
manager is an understudy of the general sales manager who performs assignments of a line nature in the
name of the superior. The assistant to the general sales manager carries part of the general administrative
load that would otherwise be borne by the general sales manager.

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 Line and Staff sales organization is also known with the name of ‗Organization Design on the basis of the
Management Function‘. The line function flows from the head of the sales force to company salespersons.
The President Sales takes advice of staff of specialists, as part of enjoying staff authority. The Line
authority means people in management have formal authority to direct and therefore to control immediate
subordinates. Staff authority means right to advice or counsel. Under this type of organization every
possible attention is given to all aspects of sales activities, which give rise to profitability. The President-
Sales along with line authority also enjoys the staff authority over marketing research and sales promotion,

The Advantages of the Line and Staff Organization

 The chief sales executive, being relieved from much detail work, can take a broader view of the
department.
 Due importance given to specialists
 Each operation can be taken care by planning
 Experts can be developed
 Co-ordination and co-operation are improved
 Problems can be seen in clearer perspective, and connections between apparently unrelated problems are
brought into focus.
 A pool of experts provides advice and assistance in specialized fields.
 Planning activities are subdivided and apportioned to staff members, and decisions and policies rests on a
sounder base than lip the line organization.
 Meanwhile, the top sales executive can concentrate on control and coordination of subordinates. Staff
members assume much of the burden of solving problems in their areas. Thus, the top sales executive can
devote more attention to the human aspects of administration.
 Benefits of Research and Development- Through the advice of specialized staff, the line executives, the
line executives get time to execute plans by taking productive decisions which are helpful for a concern.
This gives a wide scope to the line executive to bring innovations and go for research work in those areas.
This is possible due to the presence of staff specialists.
 Training- Due to the presence of staff specialists and their expert advice serves as ground for training to
line officials. Line executives can give due concentration to their decision making. This in itself is a
training ground for them.
 Balanced decisions- The factor of specialization which is achieved by line staff helps in bringing co-
ordination. This relationship automatically ends up the line official to take better and balanced decision.
 Unity of action- Unity of action is a result of unified control. Control and its effectivity take place when
co-ordination is present in the concern. In the line and staff authority all the officials have got independence
to make decisions. This serves as effective control in the whole enterprise.

Disadvantages of the line and Staff Organisation

1. Work of the staff specialists must be coordinated, and this is costly. Other administrative expenses may also
increase, unless the number of staff executives is kept in line with departmental needs. The staff should be
expanded only when it can be shown that the contributions of new staff members will equal or exceed the
costs of maintaining them.
2. Organization appears to be costly
3. Decisions are taken slowly as staff official concerned is consulted.
4. Interdepartmental rivalry and non-cooperation emerge and inefficiency in one department affects the other
departments
5. Lack of understanding- In a line and staff organization, there are two authority flowing at one time. This
results in the confusion between the two. As a result, the workers are not able to understand as to who is
their commanding authority. Hence the problem of understanding can be a hurdle in effective running.

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 6. Lack of sound advice- The line official get used to the expertise advice of the staff. At times the staff
specialist also provide wrong decisions which the line executive have to consider. This can affect the
efficient running of the enterprise.
7. Line and staff conflicts- Line and staff are two authorities which are flowing at the same time. The factors
of designations, status influence sentiments which are related to their relation, can pose a distress on the
minds of the employees. This leads to minimizing of co-ordination which hampers a concern‘s working.
8. Staff steals the show- In a line and staff concern, the higher returns are considered to be a product of staff
advice and counseling. The line officials feel dissatisfied and a feeling of distress enters a concern. The
satisfaction of line officials is very important for effective results.
9. Close control over staff-line relations is essential. If staff people issue instructions directly to line
executives, it is difficult to prevent some persons from evading unwanted responsibilities
10. When the line and staff sales organization is used, the time between problem recognition and corrective
action tends to widen. This results from giving staff executives time to study problems before making
recommendations to the decision makers.
III. Functional Sales Organization
This type of organizational structure is based upon the premise that each individual in the organization
executive and employee should as few distinct duties as possible. The principle of specialization is used to
the full extent. Duty assignments and delegations of authority are made according to function. No matter
where a particular function appears in the organization, it is in jurisdiction of the same executive. In
functional sales department sales people receive instructions from several executives but on different aspect
of their work.
Provisions for coordinating the functional executives is made only at the top of the structure;
executives at lower level do not have coordinating responsibilities. In contrast to line and staff organization,
all specialists in functional organization have line authority of the sort. Instructions and even policies can be
put into effect with or without prior approval of the top level coordinating executives. A functional sales
organization structure is shown in figure. The coordinating executive is the director of sales administration
all executives in the next level are specialists. As indicated sales personnel receive instructions from six
different executives.

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 General Sales
Manager

Manager
Manager Sales Manager Market Manager Manager Sales
Advertising &
Analysis Research Personal selling Promotion
Publicity

Salesman

Advantages of Functional Sales Organization

 Specialization: Specialized activities are assigned to experts whose guidance should help in increasing the
effectiveness of sales force. This system derives the benefits of specialization. As every functional in
charge is an expert in his area, he will guide using his specialization and with the help of the subordinates,
try to attain the specified objectives.
 Within his own department the sales manager will be responsible for the sale of all the products,
 Make Supervision easier, since every manager is supposed to be expert in only a narrow level of skills.
 Increased efficiency: This type of organisation ensures enhanced efficiency as the workers operate under
the expert and competent personnel and perform limited operations.
 Limited duties: The functional foremen have to carry out the limited number of duties concerning their
area of work. This considerably reduces the burden of work and makes possible for the foreman to carry out
the work in the best possible manner.
 Scope for expansion: Functional organisation offers a great scope for expansion of business enterprise
without any dislocation and loss of efficiency as each man grows on account of his own speciality.
 Flexibility: It is flexible pattern of organisation. A change in organisation can be made without disturbing
the whole organisation. In the words of Louis A. Allen, ―Function as a whole can he cut by eliminating
positions at the lower levels without seriously affecting its total performance.‖

Disadvantages of Functional Sales Organization:

 Conflict in authority: The authority relationship violates the principle of ‗unity of command‘. It creates
several bosses instead of one line authority. It leads to conflict and confusion in the minds of the workers to
whom they should obey and whom they should ignore.
 Quick decision making is not possible.
 There will be buck passing the responsibility. If a new product fails, who is to blame – Sales Analysis or
Market Research or Advertising & Publicity?
 Every department may feel isolated from the other departments, hence have difficulty working with others.
Thus, Coordination may be a big problem among different departments.

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  Difficulty in pinpointing responsibility: On account of the non-application of the principle of ‗unity of
control‘, it is very difficult for the top management to fix the responsibility of a particular foreman. There
arises a tendency for shirking of responsibility.
 Expensive: This pattern of organisation is quite impracticable and expensive. Multiplicity of experts
increases the overhead expenditure. The small organisations cannot afford to install such a system.
 Discipline is slackened: Discipline among the workers as well as lower supervisory staff is difficult to
maintain as they are required to work under different bosses and this may hamper the progress of the
organisation.
 Lack of co-ordination: Appointment of several experts in the organisation creates the problem of co-
ordination and delay in decision-making especially when a decision requires the involvement of more than
one specialist.
 The sheer size of sales force in many large firms makes the highly centralized sales operation of a
functional organization impractical. This limitation is traced to the requirement in functional model for lone
official to coordinate the specialists.
 The practicality of functional organization for the sales department is open to question. Small and medium
sized firms do not find it feasible or financially possible to utilize the high degree of division of labour.
IV. Committee Sales Organization
The committee is never the sole basis for organizing a sales department. It is a method of organizing the
executive group for planning and policy formulation while leaving actual operations, including
implementation of plans and policies, to individual executives.
Thus, many firms have a sales training committee (comprised of the managing director or the president
sales, Vice president sales Field, the sales training manager, and perhaps representative divisional or
regional sales managers, Person representing finance, production, advertising etc..) that meets periodically
to draft training plans and formulate sales training policies.
Here the committee is given the job of sales planning.
Implementation of these plans and policies, however, is the responsibility of the Vice president -Sales
Field. The person may be a member of the committee., if the company has one, or of the line and/or staff
executives responsible for sales training in their own jurisdictions. Other, committees found in sales
organizations includes customer relations, operations, personnel, merchandising, and new products.

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 Sales committee

Vice President-
President -Sales Sales
Supervision Field

Investigators Field SuperSisors

Divisional Divisional
Managers Managers

Dealer Sales
Sales Supervisor
Supervisor

Dealer
Salesmen
Servicemen

Advantages
 Taking along with all departments.
 Better coordination among various departments.
 Cooperation is developed among different units of the firm as every department is represented. Entire sales
force works like a family.
 Sometimes problems are so complex or of inter-departmental nature that they are best solved
 It is extremely useful in coordinating plans as well as in facilitating their execution
by committees composed of concerned executives.
 Committee form of decision making is, of course, a democratic process. It reduces the tyranny of executive
authority and provides for participative decision-making.

Disadvantages
 It is an expensive device both in terms of time and cost.
 Wastage of time of people having no concerns
 Nobody is accountable for committee decisions. A committee decision is nobody's decision just because it
is everybody's decision
 Often committees result into more conflict than problem solving.
 The chairman dominates the proceedings.
 The decisions taken in committee organization are the result of compromise and hence they are generally
slow in forthcoming and weak.
 Slow action, because consensus is always acquired.
 There is scope of internal politics.
 No scope of individual responsibility

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 SPECIALIZATION IN A FIELD SALES ORGANIZATION
The field sales forces are typically organised on the basis of geographic, customer or product
wise specialisation, with many sales organisations combine customer and product specialisations with
geographic territories.
V. Geographic/Territorial Sales Organisation

The most common pattern organising a sales force is by geographic territories where sales
personnel are assigned to a specified geographic area, and will sell only to customers in that area. For
example: Figure 4 shows the field sales organisation of Food Specialties Limited, where the whole of the
country has been divided into four areas and put in charge of Area Sales Managers. These areas
representing North, South. West, and East regions are Delhi, Madras, Bombay and Calcutta. These
major divisions are further divided into smaller geographical territories, which are covered by Area Sales
Officers. The area sales officers have in turn reporting to them area sales representatives who look after
customers in the specific area assigned to them.

The large firm with far-flung selling operations is likely to subdivide line authority
geographically. This is particularly so if the characteristics of large numbers of customers vary by
geographic location, if different selling problems are encountered in different areas, or if certain
products are more strongly demanded in some regions than in others. But there is an even more
compelling reason for dividing line authority geographically as more customers are added and as a wider
area is cultivated, the size of the sales task increases enormously. Setting up geographic divisions is a
way of cutting the sales task down to manageable proportions. When centralized administration becomes
too great a burden for the top sales executives, secondary line executives are delegated authority to
conduct sales operations within smaller areas. Geographic di-vision is usually made first into regions or
divisions. This may or may not be broken down further into districts or branches.

The division may be overseas and Internal in case of a firm selling both internally and overseas. Indian
Railways uses territory as the basis of its organization, Central Railway, Eastern Railway, East Central
Railway, East Cost Railway, Konkan Railway, Northern Railway, North Central Railway, North
Western Railway, North Eastern Railway, Northeast Frontier Railway, Southern Railway, South Central
Railway, South Eastern Railway, South East Central Railway, South East Central Railway, South
Western Railway, Western Railway, West Central Railway and Kolkata Metro. The sales organization
does have many problems which can be solved through close supervision, hiring better skilled
executives, better incentive structure, providing professional training and technical support from the
service staff. Territorial type of sales organization is also known as geographical type.
President Sales

Divisional Divisional Divisional

Divisional
Manager(North) Manager(South) Manager(East)
Manager(West)

Regional
Manager

District Sales
Manager

Salespersons

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 Advantages of geographic sales organization

 Better control over salesperson

 Better service to consumers
 Transport costing is reduced
 Meeting competitive effectively
 It involves manufacturer to understand local problems
 When line authority is divided geographically, local problems are handled speedily. It is not necessary to
wait for decisions from the home office; many questions of importance to customers can be answered by
executives personally acquainted with local conditions.
 Shortening the lines of communication makes possible closer supervision of salespeople, which, in turn,
helps in improving customer service. Local markets can be cultivated intensively, and tactics of local
competitors can be met and countered in the field.
 A major advantage which characterises the geographic organisation is that the sales personnel usually
have a smaller area of operation than in the other organizational schemes and over a period of time get to
know their customers and markets intimately which can lead to intensive market cultivation.
 The organisation becomes more responsive to local needs. The geographic organisation is generally a
flat rather than tall organisation and the shorter lines of communication make for greater effectiveness of
supervision and control.
 Another advantage that follows is that travel time and expenses can be reduced if call patterns are
properly devised.

Weaknesses of geographic sales organisation:

 On the other hand, because multiple offices are set up, administrative expenses and the burden of
coordinating the sales activities of a widespread organization become heavy. Geographic
organisation is generally more effective when the product line is not too wide or consists of
relatively simple, non-technical products.
 The disadvantage with geographic specialization is that the sales persons need to be responsible for the

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 entire product line in their territory and they may not be equally knowledge about all products. Further
within the territory, they may choose to concentrate on products and customers that are easy prospects.
 Expense increases due to bigger organisation and duplication
 Control becomes a problem area, due to distance.
 Salespersons have to sell every product to all type of customers and the brands turn into me-too
products.
 High probability of conflict across territories over resource allocation.

VI. Product Sales Organisation

Product specialisation is usually called for when the product line is large and diverse or when the products are
technical enough to warrant specialized applications knowledge, or when adequate technical knowledge is an
important determinant of successful selling.
Firms with a large product portfolio design sales organisation on the basis of product type. Hindustan
Unilever Limited deals in number of products from personal care to toiletries to food products. Hence
the sales organisations are designed on the basis of products. This is done to salespersons specialise on
each product line.
Manager Market
research

Product
Manager
manager(personal
Advertising
Care)

MAnager Sales
Promotion
President
Marketing
Manager Market
Research

Product
Manager
Manager(Food
Advertising
Product)

Manager Sales
Promotion

Product specialisation is generally combined with geographic terrorisation at the higher levels, while at the
level of the field operators, different salesmen may be assigned to specific product lines. Instead of selling the
entire product line in a specific territory, a salesperson assigned to a particular product/product group, will sell
only that product to the customers in that area. Given below is the example of a company selling office
equipment ranging from typewriters to computers. The initial geographic division is followed by product
specialisation at the field personnel level.

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 In the above example since the product line is both technical and diverse. It is not possible for
one sales person to acquire enough technical knowledge to sell the entire product line successfully.
Product specialisation, as shown above would allow the sales personnel to specialise in their respective
product lines which in turn would result in more effective sales performance. Customer queries and sales
resistance can be handled more effectively on account of intensive product knowledge. On the other
hand, each salesman in the above example would have to tour the entire state, which would result in
higher travel time and expenses.
Even when the product line is not too technical but the product range is wide enough,
organisations find splitting the sales responsibility product wise a more effective arrangement. At Dabur,
which produces a very wide range of health and personal care products the sales organisation has
initially been divided geographically but the field operators have been given charge of different product
groups. The company has divided its product line into two major product groups i.e. health care products
and family use products. Even though two salesmen may be assigned to the Same territory, each will be
responsible for only the product group assigned to him. The sales organisation structure is given below
in Figure 6.

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 Organising the sales force by product specialisation generates additional expenses, which should be
carefully weighed against the benefits of such a structure. There is an obvious increase in travel and
administrative expenses. There is some duplication of effort also as two salesmen from the company
selling different products in the same territory may call on the same customer to which many customers
may object.
MERITS:
(1) Each product gets due attention.
(2) Fine attention to each product in the portfolio of products
(3) The interference of another functionary eliminated
(4) Comparative evaluation of employee become easy
(5) Customer receives complete attention, hence most satisfied
(6) Merits of specialization.
(7) Smooth un-interfered co-ordination.
(8) Easy assignment of responsibility.
(9) Possibility of comparative efficiency.
DEMERITS:
(1) Problem of co-ordination between product department.
(2) Increased selling cost in serving the same customer and large number of employees
(3) High cost of operations.
(4) Difficulty in coordination across product categories.
(5) Duplication of efforts as company representative meets again and again.
(6) Increased costs in serving the same customer and large number of employees.
(7) Duplication of efforts as company representative meets again and again
(8) Self-contained unit.
(9) No brake on freedom of employees.

SUITABILITY:

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 Product departmental organization is suitable where
(1) Too many products are there.
(2) Where products are highly priced.
(3) Where products are of technical nature.
(4) For larg4e scale FMCG companies like Godrej, Marico, large chemical companies like Reliance and
Pharmaceutical Companies like Novartis, Sun Pharma.

VII. Trade Type/Customer Sales Organisation

It is based upon type of customer, such as institutional sales, departmental stores, retail
stores, wholesalers, cooperative societies, industrial stores, etc. It enables better attention towards them
and special problems of different customers. But, such an organisation is suitable only for large firms,
who serve different customer segments.
Customer specialisation is practiced in situations when almost identical products are
marketed to consumers each of which may present a different set of selling problems. In this kind of
organisational scheme each sales person sells the entire product line to the selected buyers.

President Sales

Vice President
Sales

Sales Sales Manager

Sales Manager Managers Institutional
Wholesalers Retailers Sales

Sales Person Sales Person Sales Person

MERITS:

(1) Each category of consumer gets due attention.

(2) Maximum service to the consumers.
(3) Build successful customer relationships
(4) Better sales planning and policies keeping each category at focus.
(5) Specialized salesmen to meet the requirements of costumers.
(6) Company image building.
(7) Increased customer loyalty
(8) Depending upon customer requirements and consumer behavior sales and market planning can be
developed.

DEMERITS:

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 (1) Higher establishment expenses.
(2) Problems of co-ordination control of sales activities across different customers is difficult in large firms.
(3) Duplication of efforts and investments.

SUITABILITY:
Consumer specialization type of organization is suitable where
(1) Too many customers are there requiring a special treatment.
(2) When company has all types of customer work caring for.

VIII. Hybrid Sales Organization:

Many large sales organizations may show a combination of product, function and geography. Hybrid
structure, otherwise known as matrix structure, is a type of organizational structure within a
company/organization that is a combination of functional, Geographic, customer and product structures. It
features the efficient use of resources and expertise development found in functional structures (where the
employee's positions are organized by specialized areas, or functions) and the flexibility among command
found in product structures (where employees are organized by the similarity of their markets and
products).

President

Function Vice President Vice President Vice President

Sales HRD Marketing

Marketing Marketing
Manger manager
Geographic Domestic Sales
Overseas Sales

Customers Sales Manager Sales Manager

Wholesalers Retailers

Divisional Divisional
manager Manager
Products Food Garments

Advantages of Hybrid Sales Organization

 Increased Efficiency: The major advantage of hybrid structure is the increased efficiency. This structure
makes sure that the right quantity of work is assigned at the right time to the right professionals, thus
making the optimum use of resources and prevention of waste. This structure works very well even when
the resources are scarce. As the specialized staffs are readily available, projects are launched quickly, thus
increasing the efficiency of the organization.
 Development of Cross-Functional Skills: In hybrid structures groups are formed considering the
specializations as well as services. Thus employees with different skills are mingled together which gives
an opportunity to learn and develop a variety of skills from many other participants. This is the main
advantage of hybrid structure in terms of the personal growth of employees, which can be later utilized by
the organization. This also results in minimization of projects costs, as resources can be shared.

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  Flexibility: The hybrid organizational structure is more flexible than divisional and functional structures.
There exists a healthy relationship between the senior managers and junior employees. This helps in
addressing all employee problems easily, thus increasing the effective output from the employees.
Disadvantages of Hybrid Sales Organization:
 Too Much Administration Overhead : Waste of time and effort come into picture in case of hybrid
organizations. To resolve the conflicts that happen between divisions and corporate departments, time and
effort get wasted in the form of meetings. Meetings are also required for better utilization and coordination
of staff in case of two or three concurrent projects.

Conclusion :
There is growing recognition of the need to apply sound principles of organization to the sales department.
Organizational planning is a Continuing activity, and the sales department structure is adjusted to changing
market needs. This has evolved as less emphasis has been placed on securing orders and more attention has
been paid to control of costs and expenses and the realization of net profits. These are trends of great
importance. As they continue, an increasing number of sales organizations are structured more logically.
Selling activities are performed with less waste effort, and total effectiveness of the sales effort is enhanced.
These advances result in significant benefits to the firms achieving them, and to their customer.

Assessment III
1. Sales organization is not a ----------------but a branch of whole tree
2. Authority goes ----------------in a straight line.
3. The advantages of line type of organization are-------------------
4. The disadvantages of line organization are----------------------
5. In medium sized or large sized firms offering various type of products, -------------------is most suitable.
6. In medium sized or large sized firms offering various type of products, this type -------------- is most
suitable.
7. The implementation of----------------is left to Vice President-Sales Field.
8.. The Territory is used into a ---------of units of divisions
9.. t is based upon type of customer, such as institutional sales, departmental stores, retail stores,
wholesalers, cooperative societies, industrial stores, etc.
10.. The authority in this organization is divided and sub divided on the basis of ---------.
11.Many large sales ---------------- may show a combination of product, function and geography.

Questions
1. State in brief, with reasoning, whether following statements are True or False:
(i) An organisation is a tool on which a managerial philosophy is translated in action.
(ii) The main task of a sales organisation is to effect sales.
(iii) FMCG (Fast Moving Consumer Goods) products like Shampoo, Oils. Creams, and Soaps, the
organisation‘s size is not large and not flat at the lower level since it does not cater to a large consumer base
and frequently demanding products.
(iv) Financial resources do not affect sales organisation.
(v) If the firm is small in size, it will offer a limited number of goods to a limited number of consumers, the
organisation of sales will also be simple.
(vi) If the product mix is marketed overseas, or India, a diverse national market, the sales organisation
would be very simple and small.
(vii) In case of low-priced products, the sales organisation would be small.
(viii) The customs and traditions used during the past years also determines the size and structure of sales
organisation.
(ix) A company‘s profit goal is of great importance to the sales organisation.

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 {ANSWER: (i) True (ii) True (iii) False (iv) False (v) True (vi) False (vii) False (viii) True (ix) True}

2. What is a Sales Organisation?

3. What are types of sales organisation?
4. What factors affect sales organisation?

Sales Management:
Sales management is concerned with mainly with the management of selling function. The sales function in
a business is a basic function. The sales management represents one of the most important functional areas
of business management, and all the principles of general management such as planning, organizing,
directing, motivating, and controlling are applied to sales management too for securing better business
performance, viz., reasonable profits through sales. Modem business is consumer centered.
The American Marketing Association has defined Sales Management as ―The planning, direction, and
control of the personal selling activities of a business unit, including recruiting, selecting, training,
equipping, assigning, rating, supervising, paying and motivating as these tasks apply to the personal sales
force.‖

Functions of Sales Management:

The general functions of sales management or marketing management are as follows:
1. Sales planning and policies
2. Pricing policies and price fixing
3. Advertising and promotions
4. Control of sales force
5. Marketing research
6. Planning and control of sales
7. Management of distribution channels
8. Branding, packing and labelling
9. After sale service
10. Integration and co-ordination of all functions.

Difference between Personal Selling and Salesmanship

Personal Selling
Personal selling is the process of face to face
interaction of the seller with the buyer to better
understand the needs and demands of the buyer for
the products.
Personal selling is basically the oral/face to face
conversation between a sales representative and a
prospect for the purpose of closing a deal.
Personal Selling is more effective in the trial stage Salesman is persuading and winning the buyer‘s
of the purchase process. Of course, it has to be
ideally supported by the other components of
promotion such as sales promotion and advertising.
Personal selling establishes a one to one personal
Salesmanship
Salesmanship is a skill used in personal selling. In
salesmanship the face to face interaction of seller
and buyer is made more qualitative to make sure
that the buyer needs are successfully fulfilled. Under
salesmanship the seller has to play multiple roles for
convincing the buyer to make a sale.
Salesmanship is the process of persuading a person
to buy goods or services.
confidence. Misrepresentation, cheating, dishonesty
have no place in modern salesmanship, but it aims at
winning the confidence of the buyer by providing a
solution to the buyer‘s problems, by persuading and
educating the buyers.
Salesmanship is the act of applying the techniques

26 | P a g e
 contact with the customers to sell the product and
deliver satisfaction
Personal selling is a much broader concept than
salesmanship
Personal selling has wider scope
Personal selling is a mean for implementing
marketing programs in coordination with other
marketing aspects such as pricing, advertising,
product development and research, physical
distribution etc.
of selling to sell the products or services
Salesmanship is only one aspect of personal selling
as it is one of the tools used in personal selling.
Salesmanship has limited scope
Salesmanship is the creative art of approaching
prospective buyers or customers to assist and
motivate action of purchasing products or services
to increase their total satisfactions as those products
and services would yield suitable benefits.
Salesmanship is also known as seller-initiated effort
to provide prospective or existing buyers with
information and available benefits, motivating or
persuading them to decide to purchase the seller‘s
product or service.

Conclusion:
The framework emphasizes close involvement of the sales organization in developing business and
marketing strategy, rather than fulfilling the operational and implementation role of the past. The strategic
sales organization will require a different infrastructure to that of the past, and many companies are
struggling with the fact that conventional sales organizations were set up and designed to do a quite
different job to that which is now required. It is found that the sales department has more influence than the
marketing department on many so-called ―marketing‖ decisions and that primary marketing coordinators
increasingly reside in ales rather than the marketing organization, while sales plays a growing role in
formulating as well as executing marketing strategies.
Glossary

1. Sales Organisation:
Definition:
According to American Marketing Association, ―Sales organization is the planning, directing and coordinating
the activities of sales force for increasing organizational efficiency.‖

Meaning: Sales organization is a structured framework, specifying the formal authority and responsibility among
persons working in the organization. It consists of group of individuals working to achieve selling objectives to
increase sales, maximizing profits, expanding market share etc. it establishes coordination among various selling
activities necessary for the achievement of selling objectives
2. Personal selling
Meaning: Personal selling is the oral presentation in a conversation with one or more prospects to sell by
persuasion. For ex- directly face to face, through telephone or mail, etc.
Definition:
According to American marketing association (AMA)
―Personal Selling is an oral presentation in a conversation with one or more prospective purchaser for the purpose
of making sales; it is the ability to persuade the people to buy goods and services at a profit to the seller and
benefit to the buyer‖
According to Philip Kotler, ―Personal selling is a broader concept and involves oral presentation in a
conversation with one or more prospective purchasers for the purpose of making sales.‖
3. Salesmanship:

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 Definition: The American Marketing Association defined the term 'salesmanship' as ― the personal or impersonal
process of assisting and/or persuading a prospective customer to buy a commodity or service to act favorable
upon an idea that has commercial significance to the seller.
Meaning: "Salesmanship is an oral presentation in conservation with one or more prospective customers for the
purpose of making sales.
4. Salesman :
A man whose job involves selling or promoting commercial products, either in a shop or visiting locations to get
orders.
A salesman trades services or products to buyers in exchange for compensation. He functions as the human face
of a company, providing information and sometimes using persuasive techniques to influence the customer‘s
decision to buy.
5. Advertising
According to Philip Kotler , ― Advertising is any paid form of nonpersonal presentation & promotion of
ideas, goods, or services by an identified sponsor.

6. Sales Promotion:
According to AMA ―Those marketing activities other than personal selling, advertising and publicity that
stimulate consumer purchasing and dealer effectiveness such as display, shows and exhibitions, demonstrations
and various non-recurrent selling effort in the ordinary routine.‖
7. Marketing mix:
According to Philip Kotler - "Marketing Mix is the combination of four elements, called the 4P's (product, Price,
Promotion, and Place), that every company has the option of adding, subtracting, or modifying in order to create
a desired marketing strategy"
8. Public Relation:
―Public relations is the deliberate, planned and sustained effort to establish and maintain mutual understanding
between an organization and its publics.‖
9. Promotion:
According to Philip Kotler, ―Promotion compasses all the tools in the marketing mix whose major role is
persuasive communications.‖
According to Stanston, ―Promotion includes, advertising, personal selling, sales promotion and other selling
tools.

******

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