The document discusses sales organizations, explaining that they are responsible for the distribution of goods through planning, controlling, recruiting, training, and motivating a sales force. It outlines the importance and need for sales organizations as businesses expand and markets grow wider. Additionally, it describes the key functions of sales organizations like market research, sales forecasting, recruitment and training of salespeople, and various types of sales forces.
The document discusses sales organizations, explaining that they are responsible for the distribution of goods through planning, controlling, recruiting, training, and motivating a sales force. It outlines the importance and need for sales organizations as businesses expand and markets grow wider. Additionally, it describes the key functions of sales organizations like market research, sales forecasting, recruitment and training of salespeople, and various types of sales forces.
The document discusses sales organizations, explaining that they are responsible for the distribution of goods through planning, controlling, recruiting, training, and motivating a sales force. It outlines the importance and need for sales organizations as businesses expand and markets grow wider. Additionally, it describes the key functions of sales organizations like market research, sales forecasting, recruitment and training of salespeople, and various types of sales forces.
By Prof. Jameel What is Sales Organization? Sales organization is a part of the total business organization of a firm. This unit of the firm is concerned with the distribution of goods. These products may either be produced by the organization itself or may be purchased from manufacturers for resale. The sales organization is concerned with planning, controlling of activities such of recruitment of employees, training the employees equipping, assigning, rating, supervising, paying and motivating the sales force. In short, sales organization is concerned with profitable and efficient distribution of goods and services to the ultimate consumer. Importance of Sales Organization “Sales are the life blood of business”. So, every business undertaking must have an efficient sales organization for selling its products. 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 infavour of efficient sales organization. Need for a Sales Organization 1. Demand for the Goods has to be created through efficient salesmen. 2. Effective advertising camp. has to be undertaken to inform the consumers about the availability of the products and their special attributes. 3. Arrangements have to be made for the prompt execution of the orders received from the customers. 4. Complaints or grievances of the customers have to be attended to and redressed quickly. 5. Outstanding bills have to be collected. 6. Production or Purchase of Goods has to be planned and adjusted in accordance with the marketing conditions. 7. Marketing conditions have to be studied so as to adjust the business according to the changing market conditions. Functions of Sales Organization 1. It has to collect marketing information through market research and other sources. 2. It has to undertake product planning i.e., decide about the package, brand and trade mark, etc. for the products. 3. It has to forecast the sales and plan the sales campaign accordingly. 4. It has to undertake sales budgeting i.e., estimate the probable gross revenue from sales and the selling and distribution costs so as to regulate and control the selling and distribution expenses. 5. It has to lay down a clear and sound selling policy, i.e., policy relating to the methods or channel 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. 7. It has to undertake the task of training salesmen. 8. It has to perform the task of supervision and control of salesmen. 9. It has to devise suitable plans for remunerating the salesman 10. It has to arrange for advertising and publicity. 11. It has to undertake sales promotion activities. 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. Types of sales force 1. Inside Sales 2.Outside Sales 3. Sales Support 4. Client Services 5. Lead Generation/Development 6. Business Development Managers