FUNCTIONS OF SALES ORGANISATION
The sales organization performs the following functions:
1. Personnel or Staff Functions. These functions include the following:
(i) To recruit and select the sales personnel.
(ii) To train the sales personnel as per the needs of the organization
(iii) To remunerate the sales personnel so as to encourage them more work.
(iv) To motivate them and enhance their morale.
(v) To provide amenities and welfare, facilities to the employees
(vi) To transfer, promote, demote, terminate, and retire the sales personnel
2. Sales Control Functions. These functions include the following:
(i) To forecast sales.
(ii) To prepare sales budget and control accordingly.
(iii) To control selling expenses.
(iv) To receive reports and act accordingly.
(v) To maintain statistical information and sales records.
(vi) To control the overall cost of the sales department.
3. Sales Direction Functions. These functions include the following:
(i) To plan sales and review them from time to time.
(ii) To allocate territories to different sales personnel.
(iii) To fix quotas for different sales personnel.
(iv) To review sales reports and make future planning accordingly,
(v) To finalize routing and scheduling of calls.
(vi) To supervise the activities of the sales personnel.
(vii) To chart out the product and control the office.
(viii) To conduct conferences, seminars, and meetings.
(ix) To prepare sales manual.
(x) To evaluate sales performance and prepare reports accordingly.
(xi) To prepare accounts of sales.
4. Product Development Functions. These functions include suggestions regarding-
(i) Price;
(ii) Color, style, and design of products
(iii) Packaging, designing, and development;
(iv) Standardization and grading;
(v) New product designing and development;
(vi) Warehousing and transportation;
(vii) Competitive selling;
(viii) Selection of distribution channels;
(ix) Servicing.
5. Sales Programme Functions. The functions are understanding the policies of the firm, formulating sales plans, implementing them, and following up on policies in the future. (MCom 2nd Year Advertising Sales Management Study Material Notes)
6. Sales Promotion and Advertising Functions. These include:
(i) Sales Promotion Programmes. Like organizing exhibitions and fairs, issuing catalogues and brochures, motion picture displays and demonstrations, contests, price reduction, prize distribution, premiums or coupons, window displays, credit policy, market research, and after-sales services.
(ii) Advertising. Advertising budget, advertising copy, advertising media, and selection.
7. Co-ordination Function. This function relates to effective coordination within the department, with other departments, and with the public in general. (MCom 2nd Year Advertising Sales Management Study Material Notes)
PRINCIPLES OF SALES ORGANISATION
The success of an enterprise depends upon its sales organization. The sales organization of an enterprise should be determined, keeping in view the specific needs and requirements of the enterprise, so that it may contribute to achieving the predetermined objectives of the enterprise. Therefore, it should be based on some specific principles.
Important principles of sales organization are as follows:
1. Principle of Objective. According to this principle, there should be a similarity between the objects of enterprise and the objects of the sales organization. Every part of the sales organization and every activity of the enterprise should exclusively be object-oriented. In other words, the objectives of the sales organization should be clear, definite, and in accordance with the overall objectives of the enterprise. (MCom 2nd Year Advertising Sales Management Study Material Notes)
2. Principle of Specialization. According to this principle, the distribution of work among employees of the enterprise should be made in a manner that each employee may get the job according to his ability and taste. Only then he will be able to fulfill his duties satisfactorily. (MCom 2nd Year Advertising Sales Management Study Material Notes)
3. Principle of Authority. According to this principle, the authority of all the employees working in the enterprise must be clearly defined and this must be in accordance with the duties assigned to them.
4. Principle of Responsibility. The sales organization of the enterprise must be determined in a manner that may specifically define and determine the responsibilities of all the employees. Every employee of the enterprise must know his responsibilities
5. Principle of Assignment of Work. The assignment of work! among various employees must be very specific. Every employee must know what he has to do and what he has not to do.
6. Principle of Exception. According to this principle, duties and rights should be assigned to all the employees, so that they may discharge their duties successfully. The sales manager should be responsible for taking decisions only on key problems. Problems of routine nature should be solved by the concerned employees.
7. Principle of Span of Control. According to this principle, the Span of control of all the officers should be limited, so that they may exercise effective control over the activities of the enterprise. According to L. Urwick, an executive can control the performance up to subordinate easily. (MCom 2nd Year Advertising Sales Management Study Material Notes)
8. Principle of Co-ordination. All the departments of the sales organization and all the activities of an enterprise must be mutually ordinated. (MCom 2nd Year Advertising Sales Management Study Material Notes)
9. Principle of Unity of Command. According to this principle, one particular employee should get the orders and instructions of one particular executive only, so that he may follow this instruction.
10. Principle of Unity of Direction. According to this principle, the plans of the organization should be very clear and all the activities of all the departments of the enterprise must be carried out in accordance with these plans.
11. Principle of Flexibility. This is an important principle of the sales organization. Sales organizations should be prepared in the manner that they may corporate the changes required in it from time to time. Flexibility does not mean that the organization can be changed at any time to any extent. It only means the adjustment of necessary changes.
12. Principle of Continuity. According to this principle, the sales organization must be prepared for a very very long time. According to Peter F. Drucker, “The organizational structure of the enterprise must meet its requirements for a period of 10 to 15 years.” |
13. Scalar Principle. The scalar principle states which employee will work under the supervision of which executive and which executive will supervise which team of subordinates, this all must be clearly defined and properly communicated to all concerned.
14. Principle of Leadership. The sales organization of the enterprise should provide for effective leadership of the activities of the enterprise, so that all the employees of the enterprise may contribute to achieving the predetermined objectives under the leadership.
15. The Principle of Simplicity. According to this principle, the organizational structure should be kept as simple as possible.