Introduction and Functions of Sales Organization Organization means the systematic coordination of the functions essential to achieving organizational objectives. The objective of a sales organization, therefore, is the performance of various activities necessary to promote sales. The functions of sales organization can be classified as follows.

1.Planning functionsa)Sales forecastingb)Sales budgetingc)Selling policy

1.Administrative functionsa)Selecting salesmenb)Training salesmenc)Control of salesmend)Remuneration of salesmen

Executive functionsa)Sales promotionb)Selling routine execution of customers orders.

Role of Sales OrganizationOnce the sales plan has been formulated, the next logical step is to organize a sales force to achieve the organizational objective. The qualified as sales objectives, which can be further divided, are shown in figure 1 given below.Major Qualified Sales Objectives

Break up or DivisionQuarter, month and weakProduct line and rangeRegion and sales areaType of customer Overall objectives 1. Total volume of products 2. Total annual value of products 3. Total annual selling costs 4. Total annual profit contributionFigure 1

Role of Sales OrganizationSales organization has the following basic purposes:Define the line of authorityEnsure that all necessary activities are assigned and performedEstablish lines of communicationProvide for coordination and balanceProvide insights into avenues of advancementEconomics of executive time.Sales organization also depends on the type of sales force which is used, for example, field sales force, national account management, team selling, telemarketing, part-time sales forces, direct selling, etc.

Developing a Sales OrganizationSales organization development refers to the formal, coordinating process of communication, authority and responsibility for sales groups and individuals. An effectively designed sales organization has a framework that enables the organization to serve its customers. Once the sales people know what their responsibilities are and who they report to, they can concentrate on doing their expected jobs to the best of their ability.Thus, a sales manager must recognize and deal with some basic problems faced by organizations, when developing his own sales organization. The five major issues are:Formal and informal organizationsHorizontal and vertical organizationsThe line and staff components of organizationsThe size of the company.

Top Sales ExecutiveRegional or Zonal Sales ManagerDistrict Sales ManagerSales SupervisorSalespersonFigure 4 Vertical Sales Organization

Top Sales ExecutiveNew EnglandDistrict SalesManagerSouthern District SalesManagerSouthwestDistrict SalesManagerForeign SalesManagerMiddle Atlantic District SalesManagerMidwest District SalesManagerPacific District SalesManagerFigure 5 Horizontal Sales Organization

Centralized and Decentralized OrganizationLine and Staff Components

Marketing organizations also feature line and staff components. A line function is a primary activity and a staff function is a supporting activity. In a marketing organization, the selling function is the line component whereas advertising, marketing research, marketing planning, sales training and distributor relations are usually considered staff roles.

Vice President forSalesGeneral SalesManagerRegional SalesManager ARegional Sales ManagerBRegional SalesManager CFigure 6 A Line Marketing Organization

Company Size and OrganizationA simple functional company organization is shown in Figure 8 . This structure is appropriate for most small and medium sized companies. These companies have relatively few products or services and use a limited number of distribution channels. As each functional area grows larger, the functional organization will be extended. A functional marketing organization is shown in Figure 9.

PresidentFinance and AccountingProductionPersonnelSales andMarketingFigure 8 Functional Company Organization

Chief Marketing ExecutiveAdvertisingManagerSalesManagerCustomerRelationsManager

Market ResearchManager

SalesSupervisorsSalespeopleFigure 9 Functional Company Organization

Field Sales OrganizationField sales force consists of salespersons who work primarily with customers in person, although they may also use the telephone or assistance from computer links to expedite orders and provide customer service. The structure of a field sales force is usually based on some means of specialization, such as geography, market, product, or activity/function, or a hybrid of these types. The following are the important field sales:Geographic sales specialization organizationProduct-based sales specialization organizationCustomer-based specialization organizationHybrid sales organizationTeam-based organization

FMCG SalesWEST DIVISIONCENTRAL DIVISIONEAST DEVISIONArea Sales ManagerMumbai SuratArea Sales ManagerDelhi Jaipur ChandigarhArea Sales ManagerKolkata PatnaSome advantages of geographic organizations are (a) Proper coverage of territory (b) Defining the responsibility (c) Familiarity with local economic and competitive conditions, making them better able to serve local customers.Figure 10 Geographical Sales Organization

Medical Division of `K Pharma Ltd.PharmaceuticalsEquipmentSupplies

Sales Manager for IndiaRegional ManagerBranch Sales ManagerAssistant Sales Manager-Agricultural ProductsAssistant Sales ManagerHealth Care Products

ActivitySales Method* ProspectingTelemarketing/cold calls* PresentationFace-to-face field sales* ServicePersonal visits

CustomerSalesMarketingTechnical SupportManufacturingFigure 14 Supplier Selling Team