NAAC ACCRIDITED

& types of Sales force.

By Prof. Jameel
 What is Sales Organization?
 Sales organization is a part of the total business
organization of a firm. This unit of the firm is concerned
with the distribution of goods. These products may either
be produced by the organization itself or may be purchased
from manufacturers for resale.
 The sales organization is concerned with planning,
controlling of activities such of recruitment of employees,
training the employees equipping, assigning, rating,
supervising, paying and motivating the sales force.
 In short, sales organization is concerned with profitable
and efficient distribution of goods and services to the
ultimate consumer.
 Importance of Sales Organization
 “Sales are the life blood of business”. So, every business
undertaking must have an efficient sales organization for
selling its products.
 In case of small firms, the proprietor does this exercise
himself or with the help of a few salesmen under his direct
supervision and control, and so, the need for sales
organization does not arise. But as the business expands
and the market to be covered becomes wider, it becomes
too difficult for the proprietor to undertake and control the
sales activities personally. So, there arises the need infavour
of efficient sales organization.
 Need for a Sales Organization
 1. Demand for the Goods has to be created through
efficient salesmen.
 2. Effective advertising camp. has to be undertaken to
inform the consumers about the availability of the products
and their special attributes.
 3. Arrangements have to be made for the prompt execution
of the orders received from the customers.
 4. Complaints or grievances of the customers have to be
attended to and redressed quickly.
 5. Outstanding bills have to be collected.
 6. Production or Purchase of Goods has to be planned and
adjusted in accordance with the marketing conditions.
 7. Marketing conditions have to be studied so as to adjust
the business according to the changing market conditions.
 Functions of Sales Organization
 1. It has to collect marketing information through market
research and other sources.
 2. It has to undertake product planning i.e., decide about the
package, brand and trade mark, etc. for the products.
 3. It has to forecast the sales and plan the sales campaign
accordingly.
 4. It has to undertake sales budgeting i.e., estimate the probable
gross revenue from sales and the selling and distribution costs so
as to regulate and control the selling and distribution expenses.
 5. It has to lay down a clear and sound selling policy, i.e., policy
relating to the methods or channel of distribution , terms and
conditions of sale, prices of the products, the rate of trade and
cash discounts, conditions regarding the return of goods, the
period of credit, the mode of payments, etc.
 6. It has to undertake the work of recruitment and selection of
salesmen.
 7. It has to undertake the task of training salesmen.
 8. It has to perform the task of supervision and control of
salesmen.
 9. It has to devise suitable plans for remunerating the
salesman
 10. It has to arrange for advertising and publicity.
 11. It has to undertake sales promotion activities.
 12. It is also concerned with the selling routine i.e, it has to
do the routing work relating to the sale of goods, such as
answering the inquiries, accepting the orders, execution of
the orders, sanctioning of credit, preparation of invoices
and bills. Sending of statement of accounts, collection of
outstanding amount, etc.
 Types of sales force
 1. Inside Sales
 2.Outside Sales
 3. Sales Support
 4. Client Services
 5. Lead Generation/Development
 6. Business Development Managers