Sales organization has an important place in business. It undertakes effective marketing of products. It ensures the timely distribution of goods. It helps to create a demand pattern for products.
It fixes responsibility and divides authority. It also helps to stimulate the efforts of the salesman and enforce proper control over them. It handles all tasks of distribution.
It is responsible for recruiting, selecting, training, equipping, assigning, routing, supervising, paying and motivating sales personnel.
In fact, the sales organization is the hub of sales activities of the firm.
A well-designed sales organization, light a well-designed automobile, accomplishes more, and more economically, then does one that it is an artefact.
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The organisation may be considered as the vehicle of the ways and means the release and channel the intellectual and physical energies of men for the achievement of desired goals or results.
Need and Importance of Sales Organization
The need and importance of sales organization can be described is under the following points:
1. Promotes Specialisation
The sales organization divides and subdivides various sales functions.
Suitable persons are appointed to handle their respective activities.
Thus, the ‘right person’ performs the ‘right job‘.
2. Facilitates Co-ordination
A sound sales organization coordinates the efforts of different departments and sub-departments, offices and employees for the attainment of sales goals and common objectives.
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3. Facilities Delegation of Authority
A sales organization defines the rights and responsibilities of every individual.
This helps in the delegation of power to discharge their job and responsibilities.
4. Facilities Timely Contacts with Customers
By assigning proper duties and by structuring the roles of employees, it is quite possible to make regular contact with customers.
This also helps in obtaining valuable information relating to customers’ problems and suggestions. 6 Main Concepts of Marketing (Explained with Examples).
5. Increases Efficiency
In the sales organization, jobs are properly distributed, duties are defined and direction and control are properly provided.
This helps to avoid duplication of work and to increase work efficiency.
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6. Proper Attention Towards All Activities
By setting up a separate sales department, more attention can be paid to sales and non-sales activities and to individual and group sales functions.
7. Contributes to Success of Business
A good sales organization achieves goals at the minimum costs.
It helps achieve the desired success in selling as well as the other areas of business.
The salesman can work at the optimum level. This contributes to the overall progress of the Enterprise.
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8. Promotes Innovations
A good sales organization can contribute to the development of new ideas and innovation.
It encourages salespeople to bring new changes in products by gathering information from salesmen.
It promotes sales research, consumer survey, and market analysis. This helps to innovate products.
9. Increases Morale
A good sales organization helps in building the morale of sales employees.
Every person engaged in the selling field has a clear knowledge about his position, rights, and responsibilities.
This framework of roles motivates him to perform in an excellent way. His morale is always raised.
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10. Handles the Task of Personnel Management
To perform the sales operations, sales forced are recruited, trained, placed, transferred, promoted, motivated, maintained and controlled.
Thus, each aspect of Manpower development and management is handled.
This helps in Human Resource Management.
11. Facilities Organisation Growth
A good sales organization always helps in increasing sales and maximizing profits, thereby achieving the overall growth of the enterprise. 21 Benefits and Limitations of E-Commerce Businesses.
12. Other Benefits
- To plan purchases.
- To create a pattern of demand for products.
- To handle the orders received.
- To collect the dues.
- To Reconcile the complaints.
- To eliminate corruption.
- To maintain good relations with customers.
Thus, now you know the need and importance of sales organization.
