2. C HAPTER 4 T HE M ARKET- D RIVEN S ALES O RGANIZATION

5. FIGURE 4.1 THE RELATIONSHIPS AMONG MARKETS, JOBS, AND ACTIVITIES INFLUENCE SALES JOB DESIGN AND ORGANIZTATIONAL STRUCTURE

6. M ARKETING AND M ARKETS Marketing is the process of planning and executing the conception, pricing, promotions, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

12. People with the prerequisite traits and attributes for success in creative sales are rare. Often, 100 to 150 or even more applicants must be interviewed to find one qualified candidate. T RUE S ALESPEOPLE ARE H ARD TO F IND

14. S ALES O RGANIZATIONAL D ESIGN Organizational design refers to the formal, coordinated process of communication, authority, and responsibility for sales groups and individuals.

16. S ALES O RGANIZATIONAL S TRUCTURE Organizational structure is the relatively fixed, formally defined relationship among jobs within the firm.

17. T HE L INE O RGANIZATION In the pure line organization, the chief executive – usually the president – does the decision making for the firm. The president has complete authority.

18. FIGURE 4.2 COMPUTE CORPORATION’S LINE ORGANIZATION

19. S PECIALIZED D ESIGN Functional organizational design is the grouping of work according to its characteristics.

20. FIGURE 4.3 ALARM SYSTEM CORPORATION’S FUNCTIONAL ORGANIZATIONAL DESIGN

21. 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. Staff Positions with Line Authority

22. 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.

23. FIGURE 4.4 TEXTRON CHEMICAL CORPORATION GEOGRAPIC SPECIALIZATION

24. 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.

25. Customer Specialization Companies with several separate and distinct markets accounting for major portions of their sales often organize based on these markets or customers.

26. Combination of Design Elements Many companies organize on the basis of some combination of functional, geographic, product, or customer design.

27. FIGURE 4.5 MULTIPLE DESIGN FACTORS

29. N EW F ORMS OF O RGANIZATIONS A strategic alliance is a formal relationship created with the purpose of joint pursuit of mutual goals. S TRATEGIC A LLIANCES

30. FIGURE 4.6 CROSS-FUNCTIONAL SELLING TEAM

31. T EAM- B ASED O RGANIZATIONS Many organizations are more responsive to their environment because they use work teams as their basic building blocks.

32. C OORDINATION AND T ECHNOLOGY Coordination refers to the quality of collaboration across groups.

33. I NTERNATIONAL C OORDINATION The most important methods for achieving coordination are information systems, task forces and teams, and integrating managers.

34. T HE B OTTOM L INE Markets, job types, and job activities influence the design of the various sales jobs and, consequently, even the structure of the sales organization. Sales activities are very diverse and easier to understand if classified in one of seven categories. A salesperson’s job activities involve much more than person-to-person selling. Companies can structure their organizations in numerous ways.