Setting Up A Sales Organization

Let us see how a sales organization is set?

Defining Objectives

The initial step is to define the sales department’s objectives. Top management, of course, defines the long run objectives for the company, and from these, the general, or long run, objectives for the sales department are derived Quantitative

Personal selling objectives, in turn, are set with an eye on the qualitative objectives. Survival, for instance, is the most basic qualitative objective of any enterprise as well as its sales department, and this requires, among other things, a continuing flow of sales revenue; so, securing a given level of sales volume is an important sales department quantitative objective.

Survival also requires profits. Hence, a second qualitative personal selling objective is to produce profits, not only by making profitable sales but by controlling departmental costs and expenses.

It follows that a third qualitative personal selling objective is to realize long term growth in sales and profits. Therefore, three of the sales department’s general objectives all traceable to management’s desire for survival of the firm may be summed up in three words: sales, profits, and growth.

Quantitative personal selling objectives are required as operating guideposts. Thus, the qualitative personal selling objective of producing profits may be translated into specific quantitative personal selling objectives