SALESMANSHIP
CLASS - XII
Study Material
, UNIT I: Sales Organization
* An introduction to Sales Organization
* Functions and Factors affecting Sales Structure
* Classification of Sales Organization
Introduction
An organisation is a tool on which a managerial philosophy is translated in action.
With the philosophical changes organisations, organisational goals are revised and
changes are made in the organisation to keep into tune with environmental
changes. Once sales plan and sales strategy have been finalised, next step is to
structure the organisation to achieve firm’s objectives. Decisions must be made
regarding sales tasks to be performed so that sales people could be grouped to
ensure efficiency and effectiveness. Sales activities can be well coordinated
provided sales responsibility; line authority and accountability are defined. In this
unit, we shall talk of organisational structure, define work-relationships between
sales employees and their superiors.
The main task of a sales organisation is to effect sales. It involves transfer of
ownership of merchandise on terms satisfactory to both the consumer and the
marketer. It requires to be done at lowest possible cost to achievement of profit
through service. A sales organisation comprises people working together to market
product or service. In a large firm, sales organisation may have different sections
like instalment payment system, mail order transacting through post, retail section
controlling shops, consignment sales and online sales.
Importance of Sales Organisation
1. The purpose of sales department is not to sell goods to distributors but to get
them to use by ultimate consumers. The sales organisation must study the
distribution of wares and the consumers can easily get them.
2. To attain the above objective, the head must see to plan and organise
different functions necessary to take product from the factory to the
consumer,
3. The sales organisation must look at easy distribution of products through all
channels, It works in dual capacity, first, to motivate Wholesalers and
, Retailers to stock the products and motivate the consumers to buy these
products.
4. Due to lack of proper sales organisation large scale production is impossible.
Mass production and mass sales are intertwined.
5. A sales organisation aims at economic distribution of goods and services.
Sales organisation stimulates demand and reaches out to potential customers.
The potential customers are willing and able to pay for the goods and services.
6. A properly working sales organisation reduces risk to other departments. If
the sales department works inefficiently, the purchase and finance
departments will be at risk.
7. The sales department provides jobs to many people.
8. The want may remain dormant unless the means of satisfying it are offered.
9. In a small firm, the need for formal organisation may not be pressing. But,
once the sale increases, sales promotion manager, advertising manager and
market research managers are to be appointed. Thus, there is need for
coordination among them and coordination is provided by an efficient sales
organisation.
10. Sales organisation helps divide and fix authority.
11. It is possible to avoid repetitive duties.
12. Executive development is possible.
13. Individuals may have a scope of being given promotion.
14. Sales organisation ensures proper supervision of sales force.
15. Sales organisation enables the working of policy formulation and
implementation.
Assessment I
1. The main task of a sales organisation is to effect --------------
2. The purpose of sales department is not to sell goods to distributors but to get
them to use by ultimate -------------
3. To attain the above objective, the head must see to plan and organise
different functions the sales organisation must look at easy distribution ------
----through all channels,
4. A sales organisation aims at economic distribution of goods and services
5. Due to lack of proper sales organisation large scale -----------is impossible.
6. A properly working sales organisation reduces risk to another -----------s
7. The sales department provides jobs to many -----------
, 8. The want may remain dormant unless the means of satisfying it are ------
9. In a small firm, the need for formal organisation may not be -------
1. Sales 2. Consume 3. to plan and organise 4. Products
5. production 6. Department 7 people 8. offered. 9. pressing
Functions and factors affecting sales structure
The sales structure is affected by various factors such as product and service-
related factors, organisation-related factors, marketing mix-related factors and
external factors.
1. Product and Service-related Factors: The Sales Structure is determined by
the nature of the product or service. FMCG (Fast Moving Consumer Goods)
products like Shampoo, Oils. Creams, and Soaps, the organisation’s size is
large and flat at the lower level since it caters to a large consumer base and
frequently demanding products. Per period quantity of goods to be marketed
and quantities in each sale would determine the organisation structure of
sales. Where the product-mix and the size of sale per category are large, the
organization would be complex and large-sized. In the same way, if the
service requirements are large, like water purifiers, the organisation would
be larger and complex as it is to control over service staff or franchisees
offering services.
2. Organisation-related Factors: If the firm is small, it will offer a limited
number of goods to a limited number of consumers, the organisation of sales
will also be simple. The enterprise offering niche market and highly
specialised products would have a simpler sales organisation. On the other
way, if the size of a firm is large with greater volume of production and sales
to be done through multiple channels, the sales structure would be large and
complex. Thus, the size of the company will have effect on the sales
organisation.
If the managers are competent and innovative to initiate new sales plans and
policies to be in tune with the developments in the market, the sales
organisation would be large and complex
CLASS - XII
Study Material
, UNIT I: Sales Organization
* An introduction to Sales Organization
* Functions and Factors affecting Sales Structure
* Classification of Sales Organization
Introduction
An organisation is a tool on which a managerial philosophy is translated in action.
With the philosophical changes organisations, organisational goals are revised and
changes are made in the organisation to keep into tune with environmental
changes. Once sales plan and sales strategy have been finalised, next step is to
structure the organisation to achieve firm’s objectives. Decisions must be made
regarding sales tasks to be performed so that sales people could be grouped to
ensure efficiency and effectiveness. Sales activities can be well coordinated
provided sales responsibility; line authority and accountability are defined. In this
unit, we shall talk of organisational structure, define work-relationships between
sales employees and their superiors.
The main task of a sales organisation is to effect sales. It involves transfer of
ownership of merchandise on terms satisfactory to both the consumer and the
marketer. It requires to be done at lowest possible cost to achievement of profit
through service. A sales organisation comprises people working together to market
product or service. In a large firm, sales organisation may have different sections
like instalment payment system, mail order transacting through post, retail section
controlling shops, consignment sales and online sales.
Importance of Sales Organisation
1. The purpose of sales department is not to sell goods to distributors but to get
them to use by ultimate consumers. The sales organisation must study the
distribution of wares and the consumers can easily get them.
2. To attain the above objective, the head must see to plan and organise
different functions necessary to take product from the factory to the
consumer,
3. The sales organisation must look at easy distribution of products through all
channels, It works in dual capacity, first, to motivate Wholesalers and
, Retailers to stock the products and motivate the consumers to buy these
products.
4. Due to lack of proper sales organisation large scale production is impossible.
Mass production and mass sales are intertwined.
5. A sales organisation aims at economic distribution of goods and services.
Sales organisation stimulates demand and reaches out to potential customers.
The potential customers are willing and able to pay for the goods and services.
6. A properly working sales organisation reduces risk to other departments. If
the sales department works inefficiently, the purchase and finance
departments will be at risk.
7. The sales department provides jobs to many people.
8. The want may remain dormant unless the means of satisfying it are offered.
9. In a small firm, the need for formal organisation may not be pressing. But,
once the sale increases, sales promotion manager, advertising manager and
market research managers are to be appointed. Thus, there is need for
coordination among them and coordination is provided by an efficient sales
organisation.
10. Sales organisation helps divide and fix authority.
11. It is possible to avoid repetitive duties.
12. Executive development is possible.
13. Individuals may have a scope of being given promotion.
14. Sales organisation ensures proper supervision of sales force.
15. Sales organisation enables the working of policy formulation and
implementation.
Assessment I
1. The main task of a sales organisation is to effect --------------
2. The purpose of sales department is not to sell goods to distributors but to get
them to use by ultimate -------------
3. To attain the above objective, the head must see to plan and organise
different functions the sales organisation must look at easy distribution ------
----through all channels,
4. A sales organisation aims at economic distribution of goods and services
5. Due to lack of proper sales organisation large scale -----------is impossible.
6. A properly working sales organisation reduces risk to another -----------s
7. The sales department provides jobs to many -----------
, 8. The want may remain dormant unless the means of satisfying it are ------
9. In a small firm, the need for formal organisation may not be -------
1. Sales 2. Consume 3. to plan and organise 4. Products
5. production 6. Department 7 people 8. offered. 9. pressing
Functions and factors affecting sales structure
The sales structure is affected by various factors such as product and service-
related factors, organisation-related factors, marketing mix-related factors and
external factors.
1. Product and Service-related Factors: The Sales Structure is determined by
the nature of the product or service. FMCG (Fast Moving Consumer Goods)
products like Shampoo, Oils. Creams, and Soaps, the organisation’s size is
large and flat at the lower level since it caters to a large consumer base and
frequently demanding products. Per period quantity of goods to be marketed
and quantities in each sale would determine the organisation structure of
sales. Where the product-mix and the size of sale per category are large, the
organization would be complex and large-sized. In the same way, if the
service requirements are large, like water purifiers, the organisation would
be larger and complex as it is to control over service staff or franchisees
offering services.
2. Organisation-related Factors: If the firm is small, it will offer a limited
number of goods to a limited number of consumers, the organisation of sales
will also be simple. The enterprise offering niche market and highly
specialised products would have a simpler sales organisation. On the other
way, if the size of a firm is large with greater volume of production and sales
to be done through multiple channels, the sales structure would be large and
complex. Thus, the size of the company will have effect on the sales
organisation.
If the managers are competent and innovative to initiate new sales plans and
policies to be in tune with the developments in the market, the sales
organisation would be large and complex
