Sales organization is a part of the total organization which is given the responsibility of selling of products manufactured by a company It is another organization within the larger organization which is given the responsibility of selling function It involves people working together for attaining the sales objectives of the company It is concerned with planning, organizing, leading and controlling the activities of the sales force

1. Sales Organization
Dr. Amitabh Mishra

2. Sales Organization
• Sales organization is a part of the total organization
which is given the responsibility of selling of products
manufactured by a company
• It is another organization within the larger
organization which is given the responsibility of
selling function
• It involves people working together for attaining the
sales objectives of the company
• It is concerned with planning, organizing, leading and
controlling the activities of the sales force
Dr. Amitabh Mishra

3. • A sales force is a group of people who work to
achieve the quantitative and qualitative
objectives of the organization.
Dr. Amitabh Mishra

4. Functions of Sales Organization
• The functions of sales organization are
– To develop, train and groom specialists
– To helps in performance of key activities;
– To helps in achieving coordination
– To define authority
– To optimize time and resources
Dr. Amitabh Mishra

5. Sales Organization Structure
• The sales organization structure is a part of the bigger
organization that identifies how various positions/posts
in an organization are arranged for the achievement of
organizational objectives.
• It is a chart which will indicate the grouping of
activities into positions in a structural form,
• It clearly mention
– Who reports to whom i.e. reporting relationships,
– Superior-subordinate relationships
– Mechanisms of coordination and control.
Dr. Amitabh Mishra

6. • Basic management concepts which relate to sales
organization:
– Concept of centralization and decentralization
– The degree of specialization
– The line and staff functions
– Coordination and control.
• Centralized structures are suitable for smaller organizations.
There is one person control many positions/jobs; he handles
several of the activities, and there are a large number of
people reporting to one
• In decentralized structures, there are many levels, several
reporting relationships. Several layers of superior and
subordinate reporting relationships and power in decision
making is very-very decentralized.
Dr. Amitabh Mishra

7. Forms of Sales organization structures
• Various type of sales organization structures,
i. Line sales organizations
ii. Line and staff sales organizations, and
iii. Functional sales organizations.
• Line sales organizations is more of the superior issuing orders and directives, and
the people at the lower level are supposed to abide by them.
• The line and staff roles are where there is a staff or a support activity in the form of
people who help the line.
• And in functional sales organizations these are highly specialized roles which are
given importance.
Dr. Amitabh Mishra

8. i. Line sales organizations
• It is the simplest and the oldest organizational
structures.
• The chain of command runs from top to
bottom.
Dr. Amitabh Mishra
General manager
Sales Manager
Assistant
Manager Div 1
Salespeople
Assistant
Manager Div 2
Salespeople
Assistant
Manager Div 3
Salespeople
Assistant
Manager Office
Office Staff

9. • Sales people for a particular division, report to
the assistant sales manager for that division;
and the assistant sales manager for the
different divisions, reports to the sales
manager; and the sales manager is under the
general manager.
• Responsibility is fixed totally
• Reporting relationships are clearly defined
Dr. Amitabh Mishra

10. Advantages of Line sales organizations
– Very simple to use
– As a department members will report only to one
supervisor, confusions is minimized
– Clear definition of authority and responsibilities. Clear
delegation of authority
– Close relationships between superior and subordinate
– Administrative expenses are low
• Disadvantages of Line sales organizations
– A lot depends upon the head
– The head must be highly capable to manage the whole
department
– Because of huge responsibilities, he may not be able to
devote much time to policy making
Dr. Amitabh Mishra

11. ii. Line and staff sales organization
• Line and staff sales organizations are found in
medium & large sized firms.
• It provides to the higher sales executive, a
group of specialists i.e. people who are
trained in functions such as:
– Logistics, Accounting, Report generation, Sales
promotion, Sales analysis, etc.
• Because of delegation of authority, top
executives get more time for crucial planning
Dr. Amitabh Mishra

12. President
Vice President Marketing
Advertising Manager General Sales Manager
Director of
sales training
Sales Personal
Director
Assistant General
Sales Manager
District sales manager
Branch sales manager
Sales Personal
Assistant to
General Sales
Manager
Sales
Promotion
Manager
Director of
Dealer and
Distributor
Relationship
Manger of
Marketing Research
Dr. Amitabh Mishra