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Functions of Sales Organisation

The document discusses the sales organization and its functions. It describes the planning functions of sales forecasting, sales budgeting, and selling policy. It then outlines the administrative functions of selecting and training salesmen, controlling salesmen, and remunerating salesmen. Finally, it discusses the executive functions of sales promotion and order execution. It provides details on each of these functions and factors to consider in organizing an effective sales team.

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raveendramanipal
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636 views18 pages

Functions of Sales Organisation

The document discusses the sales organization and its functions. It describes the planning functions of sales forecasting, sales budgeting, and selling policy. It then outlines the administrative functions of selecting and training salesmen, controlling salesmen, and remunerating salesmen. Finally, it discusses the executive functions of sales promotion and order execution. It provides details on each of these functions and factors to consider in organizing an effective sales team.

Uploaded by

raveendramanipal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Sales Organisation

Sales organisation is the systematic coordination of the functions


essential to achieve sales objectives.
Functions of Sales organisation
1. Planning Functions
 Sales Forecasting
 Sales Budgeting
 Selling Policy

2. Administrative Functions
 Selecting Salesmen
 Training Sales men
 Control of Salesmen
 Remuneration of Salesmen

3. Executive Functions
 Sales Promotion
 Selling routine – Execution of customer’s orders
SDM KRR 2010 1
Planning Functions
a) Sales forecasting
Steps in Sales forecasting
- Defining the objectives to be achieved
- Dividing the various groups into homogeneous groups
- Analyzing factors affecting forecasting
- Selecting the method
- Collecting and analysing the related information
- Drawing conclusions from the analysis made
- Implementing the decisions taken
- Reviewing and revising sales forecasting techniques
from time to time

SDM KRR 2010 2


b) Sales budgeting
Factors to be considered while preparing sales budget
- Past Trends

- Trade prospects

- Sales force estimates

- Present position

- Potential consumers

- Govt. policies

- Changing business environment

- Sales promotion strategies

c) Selling Policy
- Method of distribution

- Terms of sale

- Guarantee and Service SDM KRR 2010 3


Administrative Functions

a)Selection of Salesmen (Recruitment)


All the activities involved in securing applications for
sales positions are referred to as recruitment.
Sources of recruitment
- Advertisements

- Employment agencies

- Educational Institutions

- Salesmen of other companies

- Internal Transfers

- Recommendation of present salesmen

SDM KRR 2010 4


b) Training of Salesmen
c) Control of Salesmen
d) Remuneration of Salesmen
Executive Functions
Sales promotion
- Incentives

- Coupons

- Free samples

- Price-off

- Contests

- Refunds

- Point of Sales materials (POPs)


SDM KRR 2010 5
DEVELOPING A SALES ORGANISATION

Major issues while developing a sales organisation

 Formal and informal organistions

 Horizontal and vertical organisation

 Centralised and decentralised organisations

 The line and staff components of organisations

 The size of the company.


SDM KRR 2010 6
Formal and Informal organisations

Sales person

Direct sales manager

Marketing vice president

Director of marketing research

SDM KRR 2010 7


Informal Communication

SDM KRR 2010 8


Vertical and horizontal Sales organisation

SDM KRR 2010 9


Line Marketing organisation

SDM KRR 2010 10


Line and Staff marketing organisation

SDM KRR 2010 11


Functional Company Organisation
President

Sales and
Finance Production Personnel
Marketing

SDM KRR 2010 12


Functional Marketing organisation

SDM KRR 2010 13


Geographic Sales organisation

SDM KRR 2010 14


Product based Sales organisation

SDM KRR 2010 15


Customer based Sales Organisation

SDM KRR 2010 16


Hybrid Sales Organisation

SDM KRR 2010 17


Team-based Organisation

SDM KRR 2010 18

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