Page 77 - DMGT205_SALES_MANAGEMENT

Unit 5: Sales Organisation

Notes
Figure 5.10

The salesman in such organisations gets to know more about the customers, their problems and
methods of purchase. Builds relationship which a long way and give fruits when the customer is
satisfied with the product and the service. The disadvantage is the duplication of facilities &
resources. Extra expenditure is involved in maintaining a large sales force.

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Caution One of the disadvantages of this structure is that a particular sales person can
handle only a limited number of uncomplicated products or product lines.

Combined Base Organisation
In this type of organization two or more bases are combined to form an organisation structure.
It may overcome the problem of individual sales organization.
Sales organisation is the framework of relations of different people in the enterprise. Its function
is to provide an efficient, economical and flexible administrative set up to ensure timely
movement of products from the warehouses to consumers.

Importance of sales organisation can be judged from the following points:
1. To plan the purchase.
2. To create demand pattern for the products.
3. To handle the orders received.
4. To collect the dues.

5. To reconcile the complaints.
6. To handle the tasks of personnel management.
A sales organisation can exist in numerous forms. It can be a line organisation or a line-staff
organisation or functional organisation. The sales organisation structure can also exist in two
other forms which are vertical sales organisation and horizontal sales organisation. Depending
on the needs and requirements various organisations choose their organisational structure.

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