SALES Presented By-

Deepak Khandelwal

ORGANIZATIO
N
 SALES ORGANIZATION

 A sales organization is a organization of individual

either working together for the marketing of products
and services manufactured by an enterprise or for
product that are procured by the firm for the purpose
of reselling.

 A sale organization structural body through which

the function of sale management are carried out.
 elements OF SALES ORGANIZATIONS

 To permit the development of specialist

 To assure that all necessary activities are performed
 To achieve coordination or balance
 To define authority
 To economize on executive time
 PRINCIPLES OF SALES
ORGANIZATION

 Span of control

 Centralization & Decentralization

 Integration & coordination of function

FACTOR INFLUENCING SALES ORGANIZATION

 Product & service related factor

 Organization related factor

 Marketing mix related factor

 External factor
 Organization Design

 It refers to the formal in cordination task of assign

territories & establishing flows of communication &
responsibilities of sales group & individual to serve
customer effectively.

 It helps in-
 Enhancing productivity
 Reducing conflict
 Improve an individual quality of work
 PRODUCT ORGANIZATION DESIGN

National
Sales Manager

Eastern
Regional
Sales Manager

Northeast Mid-Atlantic Southern

District District District
Sales Manager Sales Manager Sales Manager

Typewriter Minicomputer Programmable Copier Large

Equipment Salesperson Salesperson Calculator Salesperson Salesperson
Computer
Computer
Salesperson Salesperson
 PRODUCT ORGANIZATION DESIGN

 Advantages
 Allows focusing of sales effort
 Expertise developed in limited number of products

 Disadvantages
 More expensive to operate
 May result in duplication of sales calls to clients
 LINE ORGANIZATION

 Oldest & simplest structure

 Widely used in smaller firms or firms with small
numbers of selling personnels, limited geographical
area or narrow product line
 Chain of command run from top to down
 All executives exercise line authority & each sales
person is responsible to next in the hierarchy
 No cross communication between persons at same
level
 Greatest use in companies where all sales persons
report directly to the chief sales executives
 LINE ORGANIZATION
 Advantages:
 Problems of discipline & control are small
 Authority & responsibility are clear
 Saves time in making policy changes
 Development of close relationship between superior &
subordinate
 Administrative expenses are low

 Disadvantages
 Too much dependence on department head
 Insufficient time for policy making & planning
 Inappropriate for rapidly growing firms
 Offers little opportunity to subordinates to acquire
management skills
 LINE ORGANIZATION

General Manager

Sales Manager

Assistant sales Assistant sales Assistant sales Assistant sales

Manager Manager Manager Manager
Division 1 Division 2 Division 3 Office

Sales People Sales People Sales People Office Staff

 LINE & STAFF SALES ORGANIZATION

President

Vp marketing

Advertising Gm sales Manager market research

Manager

Assistant Sales
Director Sales personel Assistant
To Promotion
Training Director Gm sales
Gm sales Manager

District sales manager

Branch sales manager

Sales personnel
 LINE ORGANIZATION

 In a pure line organization-

 Decision are made faster

 Overhead cost are lower
 Sales people need to follow the command.
 FUNCTIONAL SALES
ORGANIZATION
 Each individual in an organization should have few
distinctive duties as possible

 Principle of specialization is utilized to its fullest

extent

 Sales people receive instructions from several

executive but at different aspects of their work
 FUNCTIONAL SALES
ORGANIZATION
 Advantages
 Improved performance

 Disadvantages
 Not feasible for small & medium sized firms
 Suitable for large firms with stable operations &
with opportunity for considerable division of
labour
 PRODUCT SALES ORGANIZATION

 Advantages
 Consistent with market driven strategy
 Salespeople become customer experts

 Disadvantages
 More expensive
PRODUCT SALES ORGANIZATION

National
Sales Manager

National Eastern Manager

Accounts Regional of
Manager Sales Manager Export Sales

Northeast Mid-Atlantic Southern

District District District
Sales Manager Sales Manager Sales Manager

Salesperson Salesperson Salesperson Salesperson

for Educational for Retail for Government for Bank
Institutions Customers Agencies Customers

Salesperson Salesperson
for Manufacturers for Wholesale
Customers
SIZE OF SALES FORCE

Three Method

 Affordability method

 Incremental method

 Work load method

THANK
YOU