Question

Classification of function sales of sales organisation

Answer 1

Sales organization is a part of the total business organization of a firm. This unit of the firm is concerned with the distribution of goods. These products may either be produced by the organization itself or may be purchased from manufacturers for resale.

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.
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 researchand 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.

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 advertisingand publicity.