Block: Basics of Sales Management

Ch-3

Sales Organisation

Introduction
Sales Organization is a department of the organization which establish for
the purpose of directing, coordinating and controlling the sales organization.
A sales organization structure evolved in such a way that sales people and
sales manager carry out their activity effectively and efficiently. It gives a blue
print that what activity is performed by which person. The basic concept
include are following:
i.

Centralisation

ii.

Specialization

iii. Staff position

iv. Marketing orientation
v.

Co-ordination

vi. Control
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Block: Basics of Sales Management

Ch-3

Sales Organisation

Setting up a Sales Organization

There are five major steps in setting up a sales organization
1.

Defining the objective

2.

Delineating the necessary activities

3.

Grouping activities into jobs or positions

4.

Assigning personal to positions

5.

Providing for coordination and control

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Block: Basics of Sales Management

Ch-3

Sales Organisation

Factors determining the structure of Sales Organization

1.

Price of Product

2.

Nature of Product

3.

Nature of Market

4.

Size of the enterprise

5.

Ability of the Executives

6.

Sales Policies of the Enterprise

7.

Distribution System

8.

Finance

9.

Number of Products

10. Miscellaneous
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Block: Basics of Sales Management

Ch-3

Sales Organisation

Functions of Sales Organisation

The functions of sales organisation can be classified as follows
1.

2.

3.

3-4

Planning functions
a.

Sales forecasting

b.

Sales budgeting

c.

Selling policy

Administrative functions
a.

Selecting salesmen

b.

Training salesmen

c.

Control of salesmen

d.

Remuneration of salesmen

Executive functions
a.

Sales promotion

b.

Selling routineexecution of customers orders.

Sales and Distribution Management

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S L Gupta

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Block: Basics of Sales Management

Ch-3

Sales Organisation

Role of Sales Administration

Total customer satisfaction by way of prompt and safe delivery.

Proper maintenance of stock ensuring defect free delivery to customers.

Effective coordination and communication between regional offices and

dealers.

FIRST CLASSIFICATION
1.

Order processing and

vehicle dispatch

SECOND CLASSIFICATION
1.1. Domestic order
processing and dispatch

THIRD CLASSIFICATION
1.1.1 Receipt and screening of orders
1.1.2 Authentication from accounts for
dispatch
1.1.3 Processing of orders and
communication for confirmation
1.1.4 Allocation of vehicles
1.1.5 Collection of toolkit/mats from
storeCont.
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Block: Basics of Sales Management

Ch-3

Sales Organisation

1.1.6 Arrangement of transit insurance

1.1.7 Documentation for dispatch
1.1.8 Excise challan
1.1.9 Physical dispatch of vehicle
1.2 Export order processing
and vehicle dispatch

1.2.1 Receipt of export from export dept.

1.2.2 Allocation and documentation for
dispatch
1.2.3 Coordination with excise for
bond/AR4A
1.2.4 Excise clearance and physical
dispatch of vehicle

2. Production coordination

2.1 Spy/bus activities

2.1.1 Movement of chassis to body

builders
2.1.2 Movement of body built up vehicle
from body builders to Surajpur and
other destinations
Cont.

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Block: Basics of Sales Management

Ch-3

Sales Organisation

2.2.1 Collection of production and data

entry of production/ RGPIN
2.2

Delivery of vehicle
from plant/body builder
to marketing

2.2.2 Inspection/checking of vehicle

2.2.3 Parking in yard

2.2.4 Communication to H.O.
marketing/export
2.2.5 Intimations of daily production
details to excise
3.

Logistics planning

3.1

Movement of vehicle

3.1.1 Coordination with transporters

3.1.2 Ensuring safe and faster delivery
3.1.3 Procuring of transport bills

4.

Vehicle inventory
control/maintenance
to stocks

4.1

Inventory control

4.1.1 Proper control of inventory by

preparing daily MIS
4.1.2 Maintain manual FIFO system
Cont.

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Block: Basics of Sales Management

Ch-3

Sales Organisation

4.2 Maintenance of stocks

4.2.1 Visual inspection

4.2.2 Periodic maintenance for tyre
pressure, coolant, battery oils etc.

5.

RTO coordination

5.1 Temporary registration

trade certificate

5.1.1 Obtaining T/R No. and T.C.

5.1.2 Remittance of monthly T/R and
road tax payment to RTO

6.

Office Administration

6.1 Maintenance of records

6.1.1 Preserving of old records of LCV

6.1.2 Maintenance of general files,
invoice, stationery and computer
stationery
6.2.1 Correspondence with dealers/R.O.
6.2.2 Correspondence with sales dept.
6.2.3 Correspondence with RTO etc.

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Block: Basics of Sales Management

Ch-3

Sales Organisation

Role of Sales Organisation

Once the sales plan has been formulated, the next logical step is to organise a
sales force to achieve the organisational objectives.
Major Qualified Sales Objectives
Overall Objectives

Break Up or Division

1.

Total volume of products

1.

Quarter, month and week

2.

Total annual value of products

2.

Product line and range

3.

Total annual selling costs

3.

Region and sales area

4.

Total annual profit contribution

4.

Type of customer

Cont.
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Sales and Distribution Management

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Block: Basics of Sales Management

Ch-3

Sales Organisation

Sales Organisations: Basic Purposes

1.

Define the line of authority

2.

Ensure that all necessary activities are assigned and performed

3.

Establish lines of communication

4.

Provide for coordination and balance

5.

Provide insights into avenues of advancement

6.

Economics of executive time.

Sales organisation also depends on the type of sales force which is used, for
example, field sales force, national account management, team selling,
telemarketing, part-time sales forces, direct selling, etc.
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Sales and Distribution Management

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Block: Basics of Sales Management

Ch-3

Sales Organisation

Developing a Sales Organisation

Sales organisation development refers to the formal, coordinating process of
communication, authority and responsibility for sales groups and individuals.
A sales manager must recognise and deal with some basic problems faced by
organisations, when developing his own sales organisation. The five major issues
are:
1.

Formal and informal organisations

2.

Horizontal and vertical organisations

3.

Centralised and decentralised organisations

4.

The line and staff components of organisations

5.

The size of the company.

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Block: Basics of Sales Management

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Sales Organisation

Field Sales Organisation

The following are the important field sales Organisations:
1.

Geographic sales specialisation organisation

2.

Product-based sales specialisation organisation

3.

Customer-based specialisation organisation

4.

Activity/function-based specialisation

5.

Hybrid sales organisation

6.

Team-based organisation.

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Block: Basics of Sales Management

Ch-3

Sales Organisation

Coordination
Sales personnel should be aware that there is need for a great deal of
coordination in the organization.
The coordination may be:
1.

Formal: To group the allied activities.

2. General Administration: Where various officers discuss company related

matters and find solutions.
3. Departmental: Where each department of the company attends the
coordination committee meeting and a decision is taken in such meetings which
is binding on all.
4. Informal Coordination: When an occasion or difficulty arises, the concerned
personnel meet each other and sort out the matter.
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