Organizing Arranging the people and work activities within an organization to achieve greater efficiency and effectiveness Arranging the people and work activities within an organization to achieve greater efficiency and effectiveness Results in an organization chart Results in an organization chart Organization chart – a diagram showing the relationships of jobs and positions within an organization Organization chart – a diagram showing the relationships of jobs and positions within an organization

Line vs. Staff Personnel Line Personnel – have the authority to issue orders and make decisions for those below in the chain of command Line Personnel – have the authority to issue orders and make decisions for those below in the chain of command Staff Personnel – have no power to issue orders over others Staff Personnel – have no power to issue orders over others Staff functions are added to advise and support line functions. Staff functions are added to advise and support line functions. Staff personnel must rely on the power of persuasion and influence. Staff personnel must rely on the power of persuasion and influence.

Use Product-based Structure when: A firm sells very dissimilar or unrelated products A firm sells very dissimilar or unrelated products A firm sells many hundreds or thousands of products A firm sells many hundreds or thousands of products A firm sells products that are very complex or technical and require a lot of service A firm sells products that are very complex or technical and require a lot of service

Product-based Structures: Are decreasing in popularity (to market/customer structures) Are decreasing in popularity (to market/customer structures) Can result in duplication of effort – more than one salesperson calls on the same customer Can result in duplication of effort – more than one salesperson calls on the same customer

Strategic Accounts: Very large-volume, important accounts Very large-volume, important accounts Examples: Wal-Mart to P&G; McDonalds’s to Coca-Cola Examples: Wal-Mart to P&G; McDonalds’s to Coca-Cola Also called corporate, national, or major accounts Also called corporate, national, or major accounts

Options for Handling Strategic Accounts: Let top company executives handle the accounts Let top company executives handle the accounts Have a separate sales force (dept) for these accounts Have a separate sales force (dept) for these accounts Have a separate company division for these accounts Have a separate company division for these accounts General trend: not mixed in with the regular sales force General trend: not mixed in with the regular sales force

Buying Center: All individuals involved in the purchase process All individuals involved in the purchase process Roles in the Buying Center: Roles in the Buying Center: Users Users Influencers Influencers Deciders Deciders Gatekeepers Gatekeepers Buyers Buyers

Manufacturer’s Representative An agent who represents several manufacturers at the same time An agent who represents several manufacturers at the same time Handles related but non-competing types of merchandise Handles related but non-competing types of merchandise An independent contractor who is paid by commission only An independent contractor who is paid by commission only

When are manufacturer’s reps used? By small companies who don’t have their own sales force By small companies who don’t have their own sales force To introduce new products or to enter new territories To introduce new products or to enter new territories To supplement a company’s own sales force To supplement a company’s own sales force

Staffing Options for International Sales Use home-country intermediaries Use home-country intermediaries Examples: export merchant, trading company, international distributor Examples: export merchant, trading company, international distributor Use intermediaries in the foreign country Use intermediaries in the foreign country Examples: mfg’s agent, foreign wholesaler, foreign retailer Examples: mfg’s agent, foreign wholesaler, foreign retailer Send your home-country sales force abroad Send your home-country sales force abroad