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Organizing

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

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Organizing

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

  2. Line vs. Staff Personnel • 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 functions are added to advise and support line functions. • Staff personnel must rely on the power of persuasion and influence.

  3. Use Product-based Structure when: • A firm sells very dissimilar or unrelated 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

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

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

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

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

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

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

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

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