Page 75 - DMGT205_SALES_MANAGEMENT

Unit 5: Sales Organisation

Functional organisation is not feasible in all types of organisations. It is cumbersome and Notes
ineffective in its present form. Small and medium sized firms find it neither practical to implement
nor are financially strong enough to employ high degree of specialisation. Large organisations,
however, find it suitable for stable operations as there are no constraints with regard to finance,
labour and specialised executives. Large companies with stable selling operations are exceptions
rather than the rule.

Figure 5.6: Functional Type of Sales Organisation

Source: http://jijonq.com/image/picture/jijonq_chart_organization_en.gif

Notes Other committees found in sales organization include customer relations, operation,
personnel, merchandising, and new products. The use of committees in the sales department
has advantages.

5.10 Vertical and Horizontal Sales Organisation

This type of organisation has several levels of management. All the employees report in the
upward direction to their next level (i.e., all report vertically upwards).

Figure 5.7: Vertical Sales Organisation
Chief of Sales Executives

Regional or Zonal Sales Manager

Sales Supervisor

Sales Person

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