Professional Documents
Culture Documents
Module-I:
Definition, objectives, Functions and classification of Sales Management Selling under the Marketing concept, Interdependence of Salesmanship and Advertising. The Sales Organization:
From company viewpoint there are three general objectives of sales management. These are as follows:
Enhancement of sales volume. Contribution to profit Continuous growth.
Factory
Factory
Marketing Concept:
Market
Customer Needs
Coordinated Marketing
Personal selling
The Sales Organization: Purpose The sales organization must not be worried of designing a formal structure. How an organization works is more important than how it suppose to function. Sales management should direct its organizational efforts towards a informal organization through intelligent leadership.
Purpose:
1. To permit the development of specialists: The sales department is organized and reorganized to retain the specialized workforce through proper delegation of authority and responsibility. To perform all necessary activities: When an organization grows and specialization increases, it becomes difficult to supervise all the activities. Therefore the change is required to restructure the system. When 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 farther from the customers. 2.
Purpose.
3.
Sales people are the field workers. The entire department is target oriented either qualitatively or quantitatively or both. Motivating individuals to work together toward common objectives is important in achieving co-ordination. Individual goals are subordinated to the organizational goals. Modern sales organizations should be divided into small, freely communicating and face to face groups to reduce the possibility of un coordinated proliferation.
4.
To define authority:
Sales executives should know whether their authority is line, staff or functional. The sales organization should be clear whether the order is unidirectional or multi directional. The organization should be developed to promote harmony among the employees.
Purpose..
5. To economize on the executive time:
Sales departments operations and activities increase in complexity and number, additional subordinates are added. This permits the higher ranking sales executives to delegate more authority towards planning decisions and less time on operational activities. This change will definitely initiate structural reforms in the organizational set-up. It is all important for time and man management
Allocation of Job, Objectives, duties & responsibilities and performance measures It has implication on organization design
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 where the reporting relationship, job objectives, duties and responsibilities, performance 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 that cover limited geographic location or sell narrow product line. There is no cross communication between persons at the same level. This is purely indirect and effected through the next higher level. The greatest weakness of this structure 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
Sales people
Sales people
Sales people
V.P- Marketing
Advertising Mgr
Salesperson
Salesperson
Salesperson
Salesperson
a.
When departmentation of sales organization is done on the basis of sales activities, it is called departmentation on function basis.
a.
MARKETING MANAGER
Advertising Deptt.
Sales Manager
Sales Supervisor
Sales Supervisor
Salesman
Salesman
Sales Supervisor
Sales Supervisor
Sales Supervisor
Salesmen
Salesmen
Salesmen
c. Customer-oriented Marketing
Organization:
When the departmentation sales organization is done on customer basis, it is called customer oriented Marketing Organization. We may also call it as departmentalization on the basis of distribution channels.
c. Customer-oriented Marketing
Organization:
MANAGER MARKETING
Salesmen
Salesmen
Salesmen
Salesmen
Salesmen
Here for the selling of a particular product types, the total marketing area is divided into territories. Each territory is under the control of a separate sales executive. He is assisted by a separate sales force.
Sales Supervisor
Sales Supervisor
Sales Supervisor
Sales Supervisor
Sales man
Sales man
Sales man
Sales man
The combination of two more basis of departmentation such as territorial, product and customers basis etc. is called combined basis of departmentation of sales organization.
The product The customers Territory Techniques of selling Promotional materials His/Her own organization Targets
Pre-sale preparation
Prospecting
Follow up action
Sales Presentation
Self-motivated
Competitive
Organized
Salesperson
Goal-oriented
Enthusiastic Customeroriented
Adaptive