OrganizingOrganizing Arranging the people and work activities Arranging the people and work activities

within an organization to achieve greater within an organization to achieve greater efficiency and effectivenessefficiency and effectiveness

Results in an Results in an organization chartorganization chart Organization chart – a diagram showing the Organization chart – a diagram showing the

relationships of jobs and positions within an relationships of jobs and positions within an organizationorganization

Line vs. Staff PersonnelLine vs. Staff Personnel

Line Personnel – have the authority to issue Line Personnel – have the authority to issue orders and make decisions for those below orders and make decisions for those below in the chain of commandin the chain of command

Staff Personnel – have no power to issue Staff Personnel – have no power to issue orders over othersorders over others

Staff functions are added to advise and Staff functions are added to advise and support line functions.support line functions.

Staff personnel must rely on the power of Staff personnel must rely on the power of persuasion and influence.persuasion and influence.

Use Product-based Structure Use Product-based Structure when:when:

A firm sells very dissimilar or unrelated A firm sells very dissimilar or unrelated productsproducts

A firm sells many hundreds or thousands of A firm sells many hundreds or thousands of productsproducts

A firm sells products that are very complex A firm sells products that are very complex or technical and require a lot of serviceor technical and require a lot of service

Product-based Structures:Product-based Structures:

Are decreasing in popularity (to Are decreasing in popularity (to market/customer structures)market/customer structures)

Can result in duplication of effort – more Can result in duplication of effort – more than one salesperson calls on the same than one salesperson calls on the same customercustomer

Strategic Accounts:Strategic Accounts:

Very large-volume, important accountsVery large-volume, important accounts Examples: Wal-Mart to P&G; Examples: Wal-Mart to P&G;

McDonalds’s to Coca-ColaMcDonalds’s to Coca-Cola Also called corporate, national, or major Also called corporate, national, or major

accountsaccounts

Options for Handling Strategic Options for Handling Strategic Accounts:Accounts:

Let top company executives handle the Let top company executives handle the accountsaccounts

Have a separate sales force (dept) for these Have a separate sales force (dept) for these accountsaccounts

Have a separate company division for these Have a separate company division for these accountsaccounts

General trend: not mixed in with the regular General trend: not mixed in with the regular sales forcesales force

Buying Center:Buying Center:

All individuals All individuals involvedinvolved in the purchase in the purchase processprocess

Roles in the Buying CenterRoles in the Buying Center:: UsersUsers InfluencersInfluencers DecidersDeciders GatekeepersGatekeepers BuyersBuyers

Manufacturer’s RepresentativeManufacturer’s Representative

An agent who represents several An agent who represents several manufacturers at the same timemanufacturers at the same time

Handles related but non-competing types of Handles related but non-competing types of merchandisemerchandise

An independent contractor who is paid by An independent contractor who is paid by commission onlycommission only

When are manufacturer’s reps When are manufacturer’s reps used?used?

By small companies who don’t have their By small companies who don’t have their own sales forceown sales force

To introduce new products or to enter new To introduce new products or to enter new territoriesterritories

To supplement a company’s own sales To supplement a company’s own sales forceforce

Staffing Options for Staffing Options for International SalesInternational Sales

Use home-country intermediariesUse home-country intermediaries Examples: export merchant, trading Examples: export merchant, trading

company, international distributorcompany, international distributor Use intermediaries in the foreign countryUse intermediaries in the foreign country Examples: mfg’s agent, foreign wholesaler, Examples: mfg’s agent, foreign wholesaler,

foreign retailerforeign retailer Send your home-country sales force abroadSend your home-country sales force abroad