Page 68 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes
Figure 5.1: Developing the Sales Organisation

Source: http://train-srv.manipalu.com/wpress/wp-content/uploads/2010/08/clip-image004-
thumb10.jpg

Steps in Sales Organisation Development

Helps in setting the quantitative objectives. Survival also requires profit, hence another
quantitative objective is earning profits by making miracle sales and also by reducing the costs
and the expenses of various departments. Another important qualitative objective is to realise
long term growth in sales and profits.
This means that sales, profit and growth are the three general objectives. Qualitative personal
selling objectives are translated with quantitative objectives, e.g., increasing the market share
by 20%. If the goals are clear and defined then time and effort are better utilised and progress is
more smooth.

Step II
The analysis of the type and volume of activities needed to be performed will lead to assessment
of how many executive and operating positions are required and how these positions would
relate to each other. This also helps in assessing the duties and responsibilities of the concerned
persons who are employed on these positions. The activities involved in modern sales organisation
are similar. Difference among the departments are those of details, of relative emphasis placed
upon individual activity and performance. These differences are more apparent than real.

Step III
This consists of the following tasks;
1. Identifying positions to whom these activities may be assigned.
2. Classify and group closely related activities and assign them to same positions.

3. Decide on hierarchy of activities by defining the level at which each activity will be
performed. This will depend upon the importance of the activity, e.g., in an organisation

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