A sales organization consists of human beings working together for the marketing of products manufactured by the firm or the commodities which have been purchased for resale.
A good sales organization is one where functions of departments have been carefully planned and coordinated towards the objective of pulling the product in the hands of the customers, the whole efforts being efficiently supervised and managed so that each function is carried out in the desired manner.
Characteristics of Sales Organization
Following are the major feature of the sales organization:
- The sales organization is a part of the total enterprise dealing with sales activities.
- It consists of a group of people engaged in selling activities.
- Here, individual members corporate to attain selling ends.
- It is not an end in itself but rather the vehicle by which individuals achieve given ends.
- It consists of patterns of relationships among subgroups and individuals established to facilitate the accomplishment of the groups’ aims.
- It is the vehicle through which a personal selling strategy is implemented.
- It works for the attainment of common objectives of selling.
- It defines the duties, responsibilities, and rights of people in selling job.
- It has a direct and significant bearing on the implementation of strategic planning.
- It performs under the direct control of the sales manager.
- Its essence is the coordinated efforts of salespeople.
- It groups selling activities under various departments and sections.
- It accumulates resources to perform selling functions.
Objectives of Sales Organization
In the ideally organized sales department, wasted motion and duplication of effort would be eliminated, friction would be minimized and cooperation maximized.
The basic objectives of the sales organization as stated by them are as follows:
1. To Permit the Development of Specialists
As a business expands, marketing and selling activities multiply and become increasingly Complex.
One objective of recognizing the sales department is to facilitate the assignment of responsibilities and delegation of authority.
This requires reshaping the structure so that it is easier for specialists to develop. 22 Importance of Salesmanship to Producers (With Examples).
2. To Ensure that All Necessary Activities are Performed
As a sales organization grows and specialization increases, it becomes important to perform all necessary activities.
3. To Achieve Coordination
Individuals vary Incompetence and potentially good sales organizations achieves balance.
The sales department can be divided into small, freely communicating, face to face groups to decrease the possibilities of uncoordinated growth.
4. To Define Authorities
Sales executives should know whether their authorities is a line, staff, or functional.
Line authority is the power to execute orders. Staff authority is the power to suggest.
Functional authority enables specialists in particular areas.
Salespeople receive directions from several resources. All sales officers should understand the nature of their authority with respect to each aspect of the operation.
A sales organization helps define the various types of authority.
5. To Economise on Executive Time
As a sales department’s operations and activities increase, additional subordinates are added.
This permits top sales executives to delegate more authority. It also allows for the more effective use of specialization.
This helps executives devote less time to routine operations and More planning.
6. Other Objectives
This includes the following:
- To choose the right span of supervisors.
- To organize activities related to recruitment, selection, and placement of salesmen.
- To accumulate resources to meet out the goals of the sales department.
- To maintain the free flow of communication systems.
- To limit the expenses.
- To create a cordial atmosphere of work with the sales department.
Thus, now you know the characteristics and objectives of sales organization.