Sales And Distribution Management

Unit 2
Sales Organization

Sales organization are structural entities which are designed to achieve mutually agreed sales goals with clear
roles and responsibilities for each person , group and department within the organization

Building sales organization

Organizations adopt different kinds of structures based on

• nature and size of organization

• product
• market coverage strategy
• competition
• market conditions
Characteristics of a Sales Organization

1. Formulation of sales policies

2. Formulation of sales budget and forecast

3. Designing of sales plans

4. Trade marketing

5. Monitoring of market execution

6. Study of distribution trends

7. Recruitment , selection and training of field force

8. Performance appraisal

9. Overall control of sales function

 Types Of Sales Organization
1. Horizontal organization

2. Vertical organization

3. Line organization

4. Line and Staff organization

 CEO

HUMAN SUPPLY
MARKETING FINANCE
RESOURCE CHAIN

PRODUCTION R&D SALES

Horizontal / Flat Sales Organization

Prevalent in smaller organizations e.g. Start ups
 National sales manager

Regional or Zonal Sales

Manager

Features : District Sales Manager

1. Better control
2. Responsibility at
various levels Sales Supervisor
3. Large product range
4. Distribution of
products prevalent at
the national level
Vertical Sales Organization
Prevalent in large organizations
 Vice President
(Sales)

General Sales
Manager

Regional Sales Regional Sales Regional Sales

Manager Manager Manager
A B C

Line Organization
A line function is a primary activity
Line and Staff Organization Exec. Asstt to
Vice President
Vice President
(Mktg.)
(Mktg.)

Marketing Research Advertising

General Sales
Manager

Sales Sales Sales

Trade Marketing Analytics Training
Development

Regional Sales Regional Sales Regional Sales

Manager N Manager S Manager W

Key --- --- --- Staff Organization

______________Line Organization

A line function is a primary activity and a staff function is a supporting activity

Basis of Specialization within Sales Organization
Basis of specialization

1. Geography

2. Type of product

3. Market

4. Combination of above

5. Sales Organization in co.s providing Tech.solutions

 Sales Organization on basis of Geography
VP Sales

WEST REGION HEAD NORTH REGION HEAD EAST REGION HEAD

Area Sales Manager Area Sales Manager Area Sales Manager

-Mumbai -Delhi -Kolkata
- Surat - Jaipur - Patna
- Chandigarh

Features

Some advantages of such organizations are (a) Proper coverage of territory (b) Familiarity with demography
and competition (c) Better placed to serve local customers (d) Large product range (e) Distribution of products
prevalent at the national level
 Sales Organization based on Product

Dabur India Limited

Features
1. Each product / product

Consumer care division Health care division group gets specialized

attention from sales force
East East 2. Leads to increased sales
West West
due to proper focus
Central Central
3. Trade (retailers and
wholesalers) selling a
PARTICULAR PRODUCT
CATEGORY ARE
COMMON)
 Sales Organization on basis of Markets
Country Mgr. Sales orgn. as per specific customer
Indonesia
Head of Sales
Intl. Divn. groups e.g. Institutional Sales ,
Country Mgr.
VP Sales Nepal International Division , Domestic
RSM CSD Operations , CSD operations
AGM CSD
North
Features :
RSM CSD
GM Domestic South 1. Meets needs of specific customer
Sales
RSM North groups – national , international etc.

RSM South
Example of innovationM is attached in form of a separate PDF sheet

Sales Organization in co.s providing

Tech.solutions
 Functions And Responsibilities Of A Salesperson
The duties and responsibilities of a salesman differ from one business to another depending upon
the nature of the business, the size of the business, the type of selling job, the sales policies of the
concern, etc.

However, there are certain duties and responsibilities which are common to all types of business

1. Duties pertaining to Selling

Prospecting , sales call, presentations, follow ups and closing sales call

2. Guiding the buyers

3. Attending to customer complaints

4. Collection of information related to credit worthiness of customers

5. Reporting

Travel expense report , Daily sales report, report competitive activities stock and sales statement
 Functions And Responsibilities Of A Salesperson

7.Preparing a travel plan

8. Promotion of goodwill

9.Recruiting and Training – applicable to on roles only

10. Working with middleman

Working with franchisee or DB salesperson in market

Sales force planning
This requires consideration of quite a no. of variables such as

1. No. of existing territories

2. Type of territory (rural , urban , metro , tier 2 and tier 3 cities)
3. Geographical expansion (state , countries)
4. Launching of new product division
5. Any specific (S&D) initiative of co.
(van operation , new channel etc.)