Sales Organisation Meaning ,Concept & Importance in Business

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Sales Organisation

Sales Organisation consists of human beings or persons working together for the effective marketing of products manufactured by the firm or the products purchased for resale. Sales organisation co-ordinates the efforts of members of a group to bring about a desirable result. It provides an efficient, economic and flexible administrative set up to ensure timely movement of products from the warehouse to the ultimate consumer. Thus it provides satisfactory job to buyers and sellers.

Sales Management is the planning, direction and control of the personal selling activities of a business unit including recruiting, selecting, training, equipping, assigning, routing, supervising, paying and motivating their tasks applied to the personal selling activities. Sales are the life lines of business. Sales organization is part and parcel of a business firm. A sales organization 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.

Sales Organisation

Importance of Sales Organisation

Therefore, there arises the necessity of organizing the sales department. so long as the firm is a small one, there is no need for sales organization, 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 expands itself, because of extension of markets, production in large-scale, competitive market etc., the need for a sales organization is left.

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 vehicle through which these decisions are implemented.

“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.”

The term sales organization is combination of two words sales and organization. Sales means the transfer of ownership of some goods or service from one party to another for a given consideration, while organization is a structure as well as a process of putting together this structure. Thus sales organization consists of human being or persons working together for the effective marketing of products manufactured by them firm or the products purchased for resale. It coordinates the efforts of members of a group to bring about a desirable result.

It provides efficient, economic and flexible administrative set up to ensure timely movement of products from the warehouse to the ultimate consumers.

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