Page 67 - DMGT205_SALES_MANAGEMENT

Unit 5: Sales Organisation

5.3.5 Provides Insight into Avenues of Advancement Notes

The personnel looks upon sales organisation as something that will advance and improve their
future career. Possible avenues of advancement may be evident from the organisational chart
which depicts the normal promotion route of the personnel.

5.3.6 Economises on Executive Time

As an organisation grows, the sales department increases in number and complexity. Delegation
of authority becomes imperative. This allows the executives to spend more time on planning
and less in operation. For effective coordination, the span has to be limited but this depends on
various factors like superior's ability of coordination, qualities of the subordinate, etc. One of
the main purpose of coordination is to achieve economies on executive time.

Did u know? Staff authority is the power to suggest to those holding line authority the
method for implementation of an order.

5.4 Developing the Sales Organisation

Sales organisation develops in response to the market and company requirements. The setting
up of an organisation or the sales organisation development takes place in a series of steps.
These steps are as follows:
1. Defining the sales organisation's objectives.
2. Defining the various activities that need to be performed to achieve these objectives and
estimating the cost and volume of each of these.
3. Grouping of the activities and positions.
4. Assignment of personnel to positions.
5. Control and coordination by formal and informal means.

Step I
Defining the sales objective includes the setting of qualitative objectives. This can be done by
asking what the company wants to achieve in terms of:

1. Growth/survival
2. Market share
3. Market leadership
4. Customer relations.

The objectives of the sales organisation need to be defined in the light of corporate objectives
both in the long-term (qualitative) and short-term (quantitative). Sales management determines
the qualitative and quantitative personal selling objectives. Quantitative personal selling
objectives are set with an eye on qualitative flow of sales revenue.

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