The document discusses the structure and functions of sales organizations, highlighting the need for effective management to achieve sales objectives. It details the roles of sales managers, including setting sales goals, creating plans, recruiting, training, and motivating sales teams, as well as the importance of specific characteristics in successful salespeople. Additionally, it outlines various sales organizational structures and the responsibilities tied to them, emphasizing the significance of adapting to changing market conditions.

1. SALES
MANAGEMENT
UNIT - 2
PRESENTED BY
K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC), (Ph.D)(MGU)
ASSISTANT PROFESSOR IN MANAGEMENT
VISHWA VISHWANI INSTITUTIONS, HYDERABAD

2. Unit-2
Sales Organization
Need for Sales Organizations, their structures
Sales Manager’s functions and responsibilities
Planning for major customers and sales budget
Specific characteristics of a successful salesman

3. Sales Organization
 A sales organization is responsible for the sale and distribution of goods and
services.
 It represents the selling unit as a legal entity.
 A sales organization subsists of a group of people who handle different activities
like distribution, advertising selling etc.
 It works to achieve the sales objectives, like increasing sales volume and
maximizing profit and market share of the company.
 The sales organization is an organizational unit within logistics, that structures the
company according to its sales requirements.
 A sales organization is responsible for the sale and distribution of goods and
services.
 It represents the selling unit as a legal entity. It is responsible for product
guarantees and other rights to recourse, for example. Regional subdividing of the
market can also be carried out with the help of sales organizations. Each business
transaction is processed within a sales organization.
 The sales organization must be specified in all sales documents.

4. • The sales organization is concerned with planning, controlling of
activities such of recruitment of employee, training the employees,
equipping, assigning, rating, supervising, paying and motivating the sales
force.
• sales organization is concerned with profitable and efficient distribution
of goods and services to the ultimate consumer.

5. Need for a Sales Organization
1. Demand for the goods has to be created through efficient salesmen.
2. Effective advertising campaign 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.

6. Functions of Sales Organization
A sales organization performs a number of functions. The main functions of a sales organization are given below:
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 trademarks, 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 channels 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.

7. 8. It has to perform the task of supervision and control of salesmen.
9. It has to devise suitable plans for remunerating the salesmen.
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.

8. Structures of Sales Organization
There are four main types of sales organizational structures:
Functional Structure
Geographic Structure
Market-Based Structure
Product Sales Force Structure
Each one has its own pros and cons that you should consider before implementing
any of the structures in your business.
1. Functional Structure
Function structure refers to the sales organization structure that focuses on
specialization within the marketing team. This means that everyone has their own
purpose to fulfill within the team based on their specialties, interests, and other
factors.

9. Having a sales team that runs by a functional structure is more
efficient, but it does come with a plethora of problems.
It may sound great to have each person specialize in their tasks, but
sales is a very interwoven department.
This means that people need to coordinate a lot in a sales team that
runs by a functional structure.
Having duplicate processes going around may sound efficient at first,
but it can be detrimental to an account.
This is especially if both sales associates are interacting with a
customer at the same time.
It can be overwhelming to perform multiple processes on the same
client at once.

10. 2. Geographic Structure
 Sales teams that run by this structure organize by location.
 Sales teams that are organized based on the geographical location of their
clients cost much less.
 A successful sales team in one geographic area leads to continued growth in
that area as well as the surrounding areas.
 Clients in a certain geographical area will come to know your sales rep in that
area extremely well.
3. Market-Based Structure
Also known as a customer sales force structure, refers to a sales team that is
organized by customers or industry.
By placing your sales reps in a specific industry, you're giving them a chance to
specialize in that industry and the needs of the companies within that industry.

11.  Market-based structures come with higher costs and difficulties in
sorting the location of different companies.
4. Product Sales Force Structure
The product sales force structure focuses on the products that clients
make. This can be based on individual products or product types.
With this kind of sales organizational structure, sales reps are more
accustomed to how to sell to certain companies based on the products
they have.
In fact, sales reps that can handle one product type at one company
and the same product type at another company.

12. Sales Manager’s functions and responsibilities
 Sales manager is a role that most sales professionals aspire to.
 Sales managers are generally paid very well, on a nice commission package, and have
plenty of responsibility in a fast-paced environment.
Identifying Sales Goals
 Setting sales goals is one of the main aspects of a sales manager’s job description.
 Sales goals need to be exciting, but they also need to be realistic – consistently failing
to hit targets will not be well-received by the board and will quickly de-motivate your
team.
 But if you set them too low, you may be holding back the business’s bottom line.
 A sales manager’s role involves analyzing both historic and real-time data to deduce:
• What the sales goals and targets should be
• How close their team is to hitting them
• What needs to change in order to get their team on track to hit their sales goals

13. Creating Sales Plans
Building a comprehensive sales plan that maps out a clear route to
hitting these goals and targets.
This task is pretty involved, as it should incorporate different sales
techniques and strategies and play to the strengths of their team and
value proposition.
In order to develop a workable sales plan, they will also need to
proactively experiment with different techniques and perform A/B
testing to see which plan gets optimal results.
Once the plan has been implemented, the sales manager will assign
quotas to each individual and team, considering their experience and
strengths.
They will then monitor their team’s progress and may increase or
decrease the quotas accordingly.

14. Providing Training Opportunities
It’s likely that training will be required in order for sales teams to hit
their quotas.
Sales is a fast-moving industry – particularly since the advent of
social and online selling.
It’s important to keep up with the latest, most effective techniques,
and to provide the necessary training for sales teams to be able to
make the most of them.
The sales manager should be able to identify gaps in knowledge and
provide the relevant sales training.
If individual sales reps are struggling – or are new to the business –
they should also provide one-to-one mentoring.

15. Motivating the Team
Motivating the sales team is a huge part of being a sales manager.
Many sales managers cultivate energetic work personalities, designed to
encourage their team and get them to close more deals.
Work perks – such as social events, dress down days, and office beers – are
common tactics worth considering.
However, in a money-driven industry like sales, financial incentive programs are
huge.
The sales manager is typically in charge of administering incentive programs,
which involves finding a delicate balance between motivating sales reps and
protecting profit.

16. Managing Accounts
Every company has a bunch of key accounts that are too important or too
valuable to leave to a newbie.
This is why sales managers will typically keep an active watch over these
accounts – and step in to help where required.
At smaller organizations, they may even take on these accounts
themselves.
Recruiting and Hiring
The sales manager is in the best position to identify the people they need
on their sales team in order to hit their targets.
At some businesses, they will be in charge of hiring and firing, whereas at
others they will still be highly involved in the process.
Once new hires are made, they will also be tasked with onboarding them.

17. Skills for Sales Managers
•General sales skills
•Recruitment skills
•People skills
•Training and mentoring skills
•Communication skills
•Forecasting skills
•Financial, and general numeracy, skills
•Public speaking skills
•Leadership skills
•Technology skills
•Organizational skills

18. Specific characteristics of a successful salesman
1. Asking The Right Questions
Conventional wisdom will normally dictate that listening is the best
characteristic to look for in a good salesperson.
Questioning not only uncovers needs, but it can also be the most effective skill
for reframing a prospect's understanding of their own problem.
2. Having Problem-Solving Skills
A problem-solving mentality is key for a good salesperson.
They should be able to actively listen to a prospect, ask guiding questions to
truly identify personal pain points and use that knowledge to tailor a solution for
the individual customer.

19. 3. Anticipating Customer Needs
A good sales person recognizes a person’s pre-existing wants and needs and
helps them find the solution that works for them rather than trying to convince
them that they need your product or service.
They have the ability to listen closely to a person and engage in dialogue instead
of subjecting them to a monologue.
This approach builds more trusting, long-lasting relationships.
4. Being Patient
Patience is key for a good salesperson. All salespeople want urgency, but you
can't force or fabricate it if it's not there.
The prospect is in the driver's seat, and you're going at their pace.
Without patience, you risk alienating them without properly creating a complete
business case for the sale.

20. 5. Being Consistent
In sales, there is no one on top of you to make sure you are hitting your
appointments, following through on your next steps and keeping up with your
pipeline.
A consistent salesperson will have sales and deals closing on a regular basis. It is
lower stress and the money is more predictable.
When you combine those two things, you have a much more effective
salesperson.
6. Adapting To Change
One characteristic that makes a good salesperson is the ability to adapt.
A good salesperson never stops learning, and they can adjust their strategy and
approach to fit their audience and the situation.
They're able to adapt to changes in the market and make adjustments as needed
so they always have their finger on the pulse of what's going on around them.

21. 7. Having Interpersonal Skills
Being a salesperson in a tech company is very different from the
traditional concept of salespeople.
It requires interpersonal skills, creativity, an in-depth understanding of a
product that constantly evolves in a market that changes constantly and
requires customization for clients' needs.
Listening is the most crucial characteristic for sales, knowing your product
and your audience.
8. Being A Good Listener
Someone who has strong listening skills is a great salesperson.
There is a misconception that salespeople do a lot of talking, but a good
salesperson actually does more listening.
By listening, a salesperson can understand what a potential client truly
wants and understand their concerns.
The salesperson can then use what they have learned to best describe their
service or product.

22. 9. Having Emotional Empathy
Empathy can play into success. The higher the cognitive empathy, the greater the
margins accounted for in the business.
Emotional empathy tended to provide lower margins as it moved toward feeling-
based sales vs. logic-based empathy.
There needs to be a sound level of understanding that comes from listening to
understand the other and presenting well.
10. Accepting Delayed Gratification
The one characteristic that makes for a great salesperson is the ability to accept
and tolerate delayed gratification.
In nearly all industries, there are two basic types of sales: those to your target
market and those to a less than desirable market.
When a salesperson is patient and able to delay their gratification, they will
bypass the small/insignificant sales and win the great ones.

23. 11. Acting As Caring Industry Experts
The best sales people care. They’re client-centric, and doing the
minimum is never in their vocabulary.
Since sales is more about leading than selling, good salespeople are
experts in their industries and able to provide knowledge, advice and
guidance to their clients or customers.
They build relationships, provide support and typically exceed their
sales goals.
12. Staying Curious
So much of sales is finding out exactly what it is that drives a
prospective client or customer and aligning your pitch there.
Curiosity begets curiosity, allowing both sides to gather the
information needed for a mutually productive conversation.

24. 13. Reading Customer Behaviors
A salesperson who understands the needs of a customer and is able to
relate on a deeper level will have a much better chance of gaining their trust
than a salesperson who just wants to hit another sales target.
You need to be able to accurately read the customer's emotions and
behavioral cues.
This makes them feel safe and helps them open up about what they are
really thinking and experiencing.
14. Actively Listening
Far too few people understand just how important listening is to being able
to sell.
The best salespeople gain a deep understanding of their prospects' needs
and wants.
The more implicitly you understand your customers, the more when you
do start to "sell" you can focus on the things you know matter to your
prospect, because you listened to what they wanted.

25. 15. Communicating Well
A good salesperson must know how to listen.
Communicating and having a personal relationship with the client won’t
happen if you do not listen.
It can also show a person’s sincerity if he listens.
However, the ability to hear is different from listening.

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