Cyclopedia of Commerce, Accountancy, Business Administration, v. 02 (of 10)American School of Correspondence
General
Cyclopedia of Commerce, Accountancy, Business Administration, v. 02 (of 10)
American School of Correspondence
Accounting; Business; Commerce
In this case the production division is by far the most numerous and
complex. This, however, is not always the case──as, for instance,
in the case of a manufacturing concern selling its product through
local agents. Frequently the territory over which sales are made is
divided along state lines, and a _District Agent_ appointed for each
state. These, in turn, appoint the _Local Agents_. This necessitates
an organization of hundreds of local agents, supervised by state or
district agents, and these in turn by a _General Agent_. Thus a very
large organization is built up for disposing of the product.
[Illustration: Fig. 2. Chart Illustrating Plan of Organization of a
Typical Manufacturing Plant. Showing channels of authority connecting
officials and departments.]
Another plan is the employment of _Traveling Canvassers_, each having
a certain territory to cover, who make their reports to either state
or district agents, or to the general agent located at a central
point──sometimes at the factory, but not necessarily so.
As competition becomes stronger and net profits smaller, the problem
of marketing the product becomes more and more important; greater and
more complex selling organizations are necessary; and the expense of
selling increases. The advertising organization, or what has come to be
known as the _Publicity Department_, is a most important adjunct to the
modern manufacturing business; and large amounts of money are annually
expended in its maintenance.
In the case under consideration, the selling of the product is in
charge of a _Sales Manager_, who has as his office staff the _Publicity
Manager_; the _Preliminary Engineer_, and the draftsmen and estimators
who assist him; the _General Salesman_, who is in reality the personal
assistant to the Sales Manager; and the _Credit and Collection Clerk_.
The _Publicity Manager_, sometimes called the _Advertising Manager_,
has charge of all advertising of whatever kind, demonstrations at
expositions and at agencies, and, in fact, all work that may be
properly comprised under the term "publicity"──that is, keeping the
public informed as to the product of the company and its adaptability
to meet the needs of the public in the special lines it manufactures.
Public-domain text, read in full here on John Shaqi.
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