Copyright © 2010, S L Gupta Excel Books Sales and Distribution Management Text & Cases ( 2 nd Edition) S L Gupta3-1 Sales Organisation Basics of Sales

Copyright © 2010, S L Gupta

Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-1

Sales Organisation

Basics of Sales Management

Ch-3

Block: I

Chapter

3Sales Organisation



Sales Organisation


Ch-3

Block: I

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



Sales Organisation


Ch-3

Block: I

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



Sales Organisation


Ch-3

Block: I

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



Sales Organisation


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Functions of Sales OrganisationThe functions of sales organisation can be classified as follows

1. Planning functions

a. Sales forecasting

b. Sales budgeting

c. Selling policy

2. Administrative functions

a. Selecting salesmen

b. Training salesmen

c. Control of salesmen

d. Remuneration of salesmen

3. Executive functions

a. Sales promotion

b. Selling routine—execution of customers’ orders.



Sales Organisation


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Cont….

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 SECOND CLASSIFICATION THIRD CLASSIFICATION

1. Order processing and vehicle dispatch

1.1. Domestic order processing and dispatch

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 store



Sales Organisation


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Cont….

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



Sales Organisation


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Cont….

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



Sales Organisation


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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.



Sales Organisation


Ch-3

Block: I

Cont….

Role of Sales OrganisationOnce 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



Sales Organisation


Ch-3

Block: I

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.



Sales Organisation


Ch-3

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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.



Sales Organisation


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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.



Sales Organisation


Ch-3

Block: I

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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Copyright © 2010, S L Gupta Excel Books Sales and Distribution Management Text & Cases ( 2 nd Edition) S L Gupta3-1 Sales Organisation Basics of Sales