Chapter 3 Sales ion -Sales and Distribution Management
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Transcript of Chapter 3 Sales ion -Sales and Distribution Management
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-1
Sales Organisation
Basics of Sales Management
Ch-3
Block: I
Chapter
3Sales Organisation
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-2
Sales Organisation
Basics of Sales Management
Ch-3
Block: I
Introduction Sales Organization is a department of the organization which establish for
the purpose of directing, coordinating and controlling the sales organization.
A sales organization structure evolved in such a way that sales people and sales manager carry out their activity effectively and efficiently. It gives a
blue print that “what activity is performed by which person”. The basic concept include are following:
i. Centralisation
ii. Specialization
iii. Staff position
iv. Marketing orientation
v. Co-ordination
vi. Control
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-3
Sales Organisation
Basics of Sales Management
Ch-3
Block: I
Setting up a Sales Organization
There are five major steps in setting up a sales organization
1. Defining the objective
2. Delineating the necessary activities
3. Grouping activities into “jobs” or “positions”
4. Assigning personal to positions
5. Providing for coordination and control
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-4
Sales Organisation
Basics of Sales Management
Ch-3
Block: I
Factors determining the structure of Sales Organization1. Price of Product
2. Nature of Product
3. Nature of Market
4. Size of the enterprise
5. Ability of the Executives
6. Sales Policies of the Enterprise
7. Distribution System
8. Finance
9. Number of Products
10. Miscellaneous
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-5
Sales Organisation
Basics of Sales Management
Ch-3
Block: I
Functions of Sales OrganisationThe functions of sales organisation can be classified as follows
1. Planning functions
a. Sales forecasting
b. Sales budgeting
c. Selling policy
2. Administrative functions
a. Selecting salesmen
b. Training salesmen
c. Control of salesmen
d. Remuneration of salesmen
3. Executive functions
a. Sales promotion
b. Selling routine—execution of customers’ orders.
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-6
Sales Organisation
Basics of Sales Management
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Cont….
Role of Sales Administration Total customer satisfaction by way of prompt and safe delivery.
Proper maintenance of stock ensuring defect free delivery to customers.
Effective coordination and communication between regional offices and
dealers.
FIRST CLASSIFICATION SECOND CLASSIFICATION THIRD CLASSIFICATION
1. Order processing and vehicle dispatch
1.1. Domestic order processing and dispatch
1.1.1 Receipt and screening of orders
1.1.2 Authentication from accounts for dispatch
1.1.3 Processing of orders and communication for confirmation
1.1.4 Allocation of vehicles
1.1.5 Collection of toolkit/mats from store
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-7
Sales Organisation
Basics of Sales Management
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Cont….
1.1.6 Arrangement of transit insurance
1.1.7 Documentation for dispatch
1.1.8 Excise challan
1.1.9 Physical dispatch of vehicle
1.2 Export order processing and vehicle dispatch
1.2.1 Receipt of export from export dept.
1.2.2 Allocation and documentation for dispatch
1.2.3 Coordination with excise for bond/AR4A
1.2.4 Excise clearance and physical dispatch of vehicle
2. Production coordination 2.1 Spy/bus activities 2.1.1 Movement of chassis to body builders
2.1.2 Movement of body built up vehicle from body builders to Surajpur and other destinations
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-8
Sales Organisation
Basics of Sales Management
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2.2.1 Collection of production and data entry of production/ RGPIN
2.2 Delivery of vehicle from plant/body builder to marketing
2.2.2 Inspection/checking of vehicle
2.2.3 Parking in yard
2.2.4 Communication to H.O. marketing/export
2.2.5 Intimations of daily production details to excise
3. Logistics planning 3.1 Movement of vehicle 3.1.1 Coordination with transporters
3.1.2 Ensuring safe and faster delivery
3.1.3 Procuring of transport bills
4. Vehicle inventory control/maintenance to stocks
4.1 Inventory control 4.1.1 Proper control of inventory by preparing daily MIS
4.1.2 Maintain manual FIFO system
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-9
Sales Organisation
Basics of Sales Management
Ch-3
Block: I
4.2 Maintenance of stocks 4.2.1 Visual inspection
4.2.2 Periodic maintenance for tyre pressure, coolant, battery oils etc.
5. RTO coordination 5.1 Temporary registration trade certificate
5.1.1 Obtaining T/R No. and T.C.
5.1.2 Remittance of monthly T/R and road tax payment to RTO
6. Office Administration 6.1 Maintenance of records 6.1.1 Preserving of old records of LCV
6.1.2 Maintenance of general files, invoice, stationery and computer stationery
6.2.1 Correspondence with dealers/R.O.
6.2.2 Correspondence with sales dept.
6.2.3 Correspondence with RTO etc.
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-10
Sales Organisation
Basics of Sales Management
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Cont….
Role of Sales OrganisationOnce the sales plan has been formulated, the next logical step is to organise a sales force to achieve the organisational objectives.
Major Qualified Sales Objectives
Overall Objectives Break Up or Division
1. Total volume of products 1. Quarter, month and week
2. Total annual value of products 2. Product line and range
3. Total annual selling costs 3. Region and sales area
4. Total annual profit contribution 4. Type of customer
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-11
Sales Organisation
Basics of Sales Management
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Sales Organisations: Basic Purposes
1. Define the line of authority
2. Ensure that all necessary activities are assigned and performed
3. Establish lines of communication
4. Provide for coordination and balance
5. Provide insights into avenues of advancement
6. Economics of executive time.
Sales organisation also depends on the type of sales force which is used, for
example, field sales force, national account management, team selling,
telemarketing, part-time sales forces, direct selling, etc.
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-12
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Basics of Sales Management
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Developing a Sales Organisation
Sales organisation development refers to the formal, coordinating process of
communication, authority and responsibility for sales groups and individuals.
A sales manager must recognise and deal with some basic problems faced by
organisations, when developing his own sales organisation. The five major issues
are:
1. Formal and informal organisations
2. Horizontal and vertical organisations
3. Centralised and decentralised organisations
4. The line and staff components of organisations
5. The size of the company.
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-13
Sales Organisation
Basics of Sales Management
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Field Sales Organisation
The following are the important field sales Organisations:
1. Geographic sales specialisation organisation
2. Product-based sales specialisation organisation
3. Customer-based specialisation organisation
4. Activity/function-based specialisation
5. Hybrid sales organisation
6. Team-based organisation.
Copyright © 2010, S L Gupta
Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta3-14
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Basics of Sales Management
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CoordinationSales personnel should be aware that there is need for a great deal of
coordination in the organization.
The coordination may be:
1. Formal: To group the allied activities.
2. General Administration: Where various officers discuss company related
matters and find solutions.
3. Departmental: Where each department of the company attends the
coordination committee meeting and a decision is taken in such meetings
which is binding on all.
4. Informal Coordination: When an occasion or difficulty arises, the
concerned personnel meet each other and sort out the matter.