The Three Organizational Elements That Make Up a Sales Area

[Arthur Wang]

Question:

Which three organizational elements make up a sales area and briefly explain their function?

Answer:

Sales organization: An organizational unit that sells and distributes products, negotiates terms of sale, and is responsible for these transactions.

Distribution channel: Channel through which salable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales. You can assign a distribution channel to one or more sales organizations.

Division: Product groups can be defined for a wide-ranging spectrum of products. For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing.

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