Purpose of a Sales Organization

Functions of a Sales Organisation

The modem sales organisation is not only profit-oriented but also customer-oriented.


Importance of Sales Organisation


A sales organisation is the mechanism through which a sales manager’s philosophy is translated into action. The sales organisation provides the vehicle for making decisions on planning, organisation, selection and training of salesmen, their motivation, directing and controlling them. It also provides the vehicle through which these decisions are implemented.

“A business organisation is like a home. It has a characteristic atmosphere. In some homes the head of the household and all its members are vitally concerned about religion, politics or some other interest—the occupations of the individual members being only of minor interest. In other homes where the personality of the head of the household dominates the activities and spirit of the members the opposite occurs. Like any group a business organisation has its own culture, traditions, and to some extent its own language and climate. ” —Hepner

“A sale organisation is like a power station sending out energy which is devoted to the advertising and selling of particular lines and there is a tremendous waste of energy between the power station and the points where it reaches the consumers. Therefore, there arises the necessity of organizing the sales department. ” —Boiling

“Sales are the lifeblood of business,” Sales organisation is part and parcel of a business firm. All the departments are carefully plaited in a good sales organisation.


Need for a Sales Organisation


“A sales organisation is like a power station sending out energy, which is devoted to the advertising and selling of particular lines; and there is a tremendous waste of energy between the power station and the points where it reaches the consumers. Therefore, there arises the necessity of organizing the sales department. ”

So long as the firm is a small one, there is no need for the sales organisation, as the proprietor himself can sell all the output or in certain cases, he is assisted by one or two salesmen, under his direct control. But when the firm or the business itself expands, because of extension of markets, production in large-scale, competitive market etc., the need for a sales organisation is felt.



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