Chapter 4 Salespeople Work In Two Markets 1. Consumer Markets 2. Business Markets: Industrial or organizational markets FACTORS INFLUENCING ORGANIZATIONAL DESIGN AND STRUCTURE * Examine customers in each market. * Determine the types of sales jobs needed to serve a market. * Note the job activities salespeople must do. * Design sales jobs around customers. * Set up the sales force organizational structure, which includes the various sales jobs and geographic territories.
Application Of The Sales Job Classifications 1. Order Takers: wait for the costumer to order 2. Order Getters: obtain, retain, and increase business with customers. This salesperson must often create discontent with what the prospect already has and has to overcome the most powerful and obstinate resistance. THE LINE ORGANIZATION In the pure line organization, the chief executive – usually the president – does the decision making for the firm. The president has complete authority.
Line authority means that people in management positions have formal authority to direct and control immediate subordinates. Staff authority is narrower and includes the right to advise, recommend, and counsel in the staff specialists’ areas of expertise. Geographic Specialization Many large corporations are organized by geographic territory. This type of organization is generally used by companies with more than strictly local distribution of their products Product Specialization Another common type of organization in large companies is based on the firm’s product.
The entire company may be organized by product, with separate sales, advertising, marketing, and so on, along with staffs for each, or some functional units may remain centralized. Customer Specialization Companies with several separate and distinct markets accounting for major portions of their sales often organize based on these markets or customers. Combination of Design Elements Many companies organize on the basis of some combination of functional, geographic, product, or customer design.