Escolar Documentos
Profissional Documentos
Cultura Documentos
BBA V Semester
Sales and Distribution Management
Module-2
Sales Organization
OBJECTIVE
MODULE-2
Sales Organization
• To achieve coordination
• To define authority
• Planning Function
– Sales Forecasting
– Sales Budgeting
– Selling Policy
• Administrative Function
– Selecting Salesmen
– Training Salesmen
– Control of Salesmen
• Executive Function
– Sales Promotion
– Selling Routine : Execution of customer’s orders
Principles of Sales Organization
• Degree of centralization
• Degree of specialization
• Line and Staff positions
• Marketing orientation
• Effective coordination
• Span of control
Setting up a Sales Organization
Head
Marketing
Sales
Manager
Head-Marketing
Salespeople
Characteristics: Each functional specialist
has line responsibility over salespeople.
Used by a large firm with many
products / market segments, minimizing
line authority to functional managers
Advantages: Qualified specialists guide
sales force, simple to administer
Disadvantage: confusion due to more
managers giving orders to sales force
Horizontal Organization
Operations Team:
Research & Design •Production /
Team:
Operations
•Customer •Quality Assurance
Research •Systems
•Product / Service
Engineering
Design
Planning Team:
•Strategic Planning
•Accounts, Finance
•HR, Administration
•Chief Operation
Officer
Salespeople – Salespeople –
Product Gr. ‘A’ Product Gr. ‘B’
Area Sales
Managers
Salespeople
Area Sales Mgrs Area Sales Manager- Area Sales Manager- Area Sales Mgrs-
International Commercial Government Consumer Markets
• Marketing Plans
– Changes in price structure, channels of
distribution, promotional plans, products may
influence the future sales.
• Conditions within the industry
– Competitor policies and new entrants into the
market needs to be taken into consideration.
• Market Conditions
– Awareness about the changes in the primary
demand for the industry’s output.
• General Business Conditions
– General state of the economy
Types of Sales Forecast
• Product Level
– All Sales
– Industry Sales
– Company Sales
– Product Line Sales
– Product Variant Sales
– Product Item Sales
• Time Period
– Long Term
– Medium Term
– Short Term
• Geographic Area
– World
– Nation
– Region
– Territory
– Customer
Terms Used in Forecasting
• Market Potential
– Maximum possible sales opportunities
present in a particular market segment and
open to all sellers during a stated future
period.
• Market Forecast
– Expected industry sales for a given product or
service at one specific level of industry
marketing expenditure, in a given market, for
a specific period of time.
• Company Sales Potential
– Best possible estimated sales of a given
product or service for a company in a given
geographic
area for a specific period of time.
• Company Sales Forecast
– Estimated company sales of a given product or service,
under a proposed marketing plan, in a given market, for
a specific period of time.
• Sales Budget
– It is a detailed schedule showing the expected sales for
the budget period; typically, it is expressed in both
revenues and units of production.
– Sales budget is used for making purchasing, production,
manpower and cash flow decisions.
• Sales Quota
―Individual sales target figure assigned to
each sales unit such a sales person, dealer,
distributor, region, or territory, as a required minimum
for a specified period (month, quarter, year).
―Sales quotas may be expressed either in currency figures
(monetary terms) or in number of goods or services sold
(volume terms).
Sales Forecasting Methods
Qualitative Methods Quantitative Methods