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Module-I:
Definition, objectives, Functions and classification of Sales Management Selling
under the Marketing concept, Interdependence of Salesmanship and Advertising. T
he Sales Organization:
Purpose, principles and policies of sales organization,
Setting up of the sales organization, Typical sales organization structure, Plan
ning of the selling factors.
From company viewpoint there are three general objectives of sales management. T
hese are as follows:
Enhancement of sales volume.
Contribution to profit
Continuous growth.
Objectives of sales management:
The Sales Organization: Purpose The sales organization must not be worried of de
signing a formal structure. How an organization works is more important than how
it suppose to function. Sales management should direct its organizational effor
ts towards a informal organization through intelligent leadership.
The followings are the purpose of setting a sales organization
Purpose:
1. To permit the development of specialists: The sales department is organized a
nd reorganized to retain the specialized workforce through proper delegation of
authority and responsibility. To perform all necessary activities: When an organ
ization grows and specialization increases, it becomes difficult to supervise al
l the activities. Therefore the change is required to restructure the system. Wh
en the company is small, its executives are in close contact with the end users
of the product. But as the company grows, as the marketing channels lengthen and
the marketing area expands geographically, the executives become farther and fa
rther from the customers. 2.
Purpose.
3.
To achieve co-ordination or balance:
Sales people are the field workers. The entire department is target oriented eit
her qualitatively or quantitatively or both. Motivating individuals to work toge
ther toward common objectives is important in achieving co-ordination. Individua
l goals are subordinated to the organizational goals. Modern sales organizations
should be divided into small, freely communicating and face to face groups to r
educe the possibility of un coordinated proliferation.
4.
To define authority:
Sales executives should know whether their authority is line, staff or functiona
l. The sales organization should be clear whether the order is unidirectional or
multi directional. The organization should be developed to promote harmony amon
g the employees.
Purpose..
5. To economize on the executive time:
Sales departments operations and activities increase in complexity and number, ad
ditional subordinates are added. This permits the higher ranking sales executive
s to delegate more authority towards planning decisions and less time on operati
onal activities. This change will definitely initiate structural reforms in the
organizational set-up. It is all important for time and man management
Co-ordination and control is obtainable through both informal and formal means.
Strong leaders control and co-ordinate the efforts of their subordinates largely
on an informal basis through their personality. These leaders make minimal use
of formal instruments of control and co-ordination. Written job description wher
e the reporting relationship, job objectives, duties and responsibilities, perfo
rmance measurements etc are clearly mentioned.
Line Organization
It is the oldest and the simplest form of sales organizational structure. It is
widely used in smaller firms with small number of selling personnel. Companies t
hat cover limited geographic location or sell narrow product line. There is no c
ross communication between persons at the same level. This is purely indirect an
d effected through the next higher level. The greatest weakness of this structur
e is the excessive dependency on the department head and therefore inappropriate
for the growing concerns having large sales staffs.
Line Organization
Gen. Manager Sales manager
Asst. S. Mgr Div- 1
Asst. S. Mgr Div-2
Asst. S. Mgr Div-3
Asst. S. Mgr Div-3
Sales people
Sales people
Sales people
Sales people
a.
Function-oriented Sales Organization
When departmentation of sales organization is done on the basis of sales activit
ies, it is called departmentation on function basis.
a.
Function-oriented Sales Organization
MARKETING MANAGER
Advertising Deptt.
Sales Promotion Deptt
Marketing Research Deptt.
Sales Planning Deptt.
Sales Manager
Sales Supervisor
Sales Supervisor
Salesman
Salesman
c. Customer-oriented Marketing
Organization:
When the departmentation sales organization is done on customer basis, it is cal
led customer oriented Marketing Organization. We may also call it as departmental
ization on the basis of distribution channels.
c. Customer-oriented Marketing
Organization:
MANAGER MARKETING
Sales Officer Direct Marketing
Sales Officer Channel Mktg.
Sales Officer Industrial Products
Sales Officer Foreign Customers
Sales Officer Consumer Products
Salesmen
Salesmen
Salesmen
Salesmen
Salesmen