Page 65 - DMGT205_SALES_MANAGEMENT

Unit 5: Sales Organisation

Introduction Notes

Once a plan has been formulated, the next logical step is to organise a sales force to achieve the
objectives of the enterprise. Decisions must be made as to the type of sales tasks required to be
performed and how the sales people are to be grouped together to exercise efficiency and
effectiveness. The scope of their sales responsibility, line authority and accountability also
should be defined so that their activities can be well coordinated.

5.1 Definition

Sales organisation is a group of people working together to achieve the objective of sales-which
is to capture a certain share of market while satisfying the customers. It undertakes the effective
marketing of products produced by the undertaking or even products purchased for resale. It
ensures timely distribution of products to the customers in an economical and efficient manner.
It establishes restructuring between the customers and the organisation on terms that are both
acceptable to the buyer and the seller.
A sales organisation is both an orienting point for cooperative endeavour and a structure of
human relationships. It is a group of individuals striving jointly to reach qualitative and
quantitative objectives and bearing formal and informal relations to one another. Implicit in the
concept of a sales organisation is the notion that individual members cooperate to attain ends.
The sales organisation is not an end in itself but rather the vehicle by which individuals achieve
given ends. Existence of a sales organisation implies the existence of patterns of relationships
among subgroups and individuals established for purposes of facilitating accomplishment of
the group's aim.
5.2 Need

A sales organisation bridges the gap between the market and the productive capacity of the
firm. If market changes by size, also trends, competition or other environmental factors, sales
functions have to be adjusted. The role of an organisation can be compared to the skeleton of the
human body. It provides a framework within which functions take place. Whereas the skeletal
function is the same for all human beings it varies between firms. This is because all enterprises
have their own objectives, resources and corporate plans to achieve those objectives.

Self Assessment

Fill in the blanks:
1. A sales organisation is both an orienting point for cooperative ...................... and a structure
of human relationships.

2. A sales organisation bridges the gap between the market and the ...................... capacity of
the firm.
3. ...................... is the power to suggest to those holding line authority the method for
implementation of an order.
4. The objectives of the sales organisation need to be defined in the light of ......................
objectives both in the long-term and short-term.

5. Control and ...................... in a sales organisation can be done both formally and informally.
6. The ...................... department's structure evolves from the needs of the business.

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