McGraw-Hill/IrwinMcGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1Chapter 1The Field of The Field of Sales Force Sales Force ManagementManagement

Management is the art of getting things done through people. Theodore Roosevelt

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Percent of Customers with ComplaintPercent of Customers with Complaint

( Figure 1-1) Top Five Customer Complaints About Salespeople

Source: The HR Chally Group, Ten Year Research Report, 2002.

11%

12%

13%

15%

17%

0% 5% 10% 15% 20%

Should be more of our advocate

Does not listen to our needs

Does not respond to our needs

Inadequate product knowledge

Does not understand our business

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Types of Outside Sales Forces

( Figure 1-2)( Figure 1-2)

Product Product Sold for Sold for

Purpose Purpose of:of:↓↓

To Businesses That AreTo Businesses That AreTo ConsumersTo Consumers ManufacturersManufacturers IntermediariesIntermediaries InstitutionsInstitutions

ConsumptionConsumptionAvon selling Avon selling lipstick to women lipstick to women consumersconsumers

Xerox selling a Xerox selling a photocopier to photocopier to office staff of Eli office staff of Eli Lilly Pharma-Lilly Pharma-ceuticalsceuticals

Maintenance Maintenance company company selling snow selling snow plowing plowing service to service to grocery storegrocery store

3M selling 3M selling overhead overhead projectors to a projectors to a local school local school districtdistrict

IncorporationIncorporation n.a.n.a.Owens Illinois Owens Illinois selling custom-fit selling custom-fit windshields to Ford windshields to Ford for its Mustangfor its Mustang

n.a.n.a. n.a.n.a.

ResaleResale n.a.n.a. n.a.n.a.Goodyear Goodyear selling tires to selling tires to Tire AmericaTire America

Florist selling Florist selling dried flowers to dried flowers to hospital gift shophospital gift shop

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The Nature of Personal SellingThe Nature of Personal Selling

Transaction Transaction SellingSelling– Get new accountsGet new accounts

– Get the orderGet the order

– Cut the price to get the Cut the price to get the salesale

– Manage all accounts to Manage all accounts to maximize short-term maximize short-term salessales

– Sell to anyoneSell to anyone

Relationship Relationship SellingSelling– Retain existing accountsRetain existing accounts

– Become the preferred Become the preferred suppliersupplier

– Price for profitPrice for profit

– Manage each account for Manage each account for long-term profitlong-term profit

– Concentrate on high-Concentrate on high-profit-potential accountsprofit-potential accounts

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6 Categories of Sales Jobs6 Categories of Sales JobsConsultative sellerConsultative sellerKey account sellerKey account sellerNew business sellerNew business sellerSales supportSales supportMissionary sellerMissionary sellerDelivery sellerDelivery seller

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Selected Activities of SalespeopleSelected Activities of Salespeople(Figure 1-3)(Figure 1-3)

Salesperson

Generate sales:•Precall planning

•Prospecting

•Make sales presentations

•Overcome objections

•Close by asking for the orders

•Arrange for delivery

•Entertain

•Arrange for credit/financing

•Collect payments

•Participate in trade shows

Provide service to customers:

• Provide management/technical consulting

• Oversee installations and repairs

• Check inventory levels

• Stock shelves• Provide

merchandising assistance:

• Co-op advertising, point-of-purchase displays, brochures

• Oversee product and equipment testing

• Train wholesalers’ and retailers’ salespeople

Territory management:

• Gather and analyze information on customers, competitors’ general market developments

• Disseminate information to appropriate personnel within salesperson’s company

• Develop sales strategies and plans, forecasts, and budgets.

Professional development:

Participate in:

• Sales meetings

• Professional associations

• Training programs

Company service:

• Train new salespeople

• Perform civic duties

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Sales jobs differ from other jobs because Sales jobs differ from other jobs because salespeople…salespeople…

implement a firm’s marketing strategies in the field.implement a firm’s marketing strategies in the field.

are authorized to spend company funds.are authorized to spend company funds.

represent their company to customers and to society in general.represent their company to customers and to society in general.

represent the customer to their companies.represent the customer to their companies.

operate with little or no direct supervision and require a high degree of operate with little or no direct supervision and require a high degree of motivation.motivation.

frequently face rejection. frequently face rejection.

need more tact and social intelligence.need more tact and social intelligence.

travel extensively, which takes time from home and family.travel extensively, which takes time from home and family.

have large role sets.have large role sets.

face role ambiguity, role conflict, and role stress.face role ambiguity, role conflict, and role stress.

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Sales Management ResponsibilitiesSales Management Responsibilities(Figure 1-5)(Figure 1-5)

Strategic planning

Organizing the sales

force

Recruiting, selection,

assimilation

Training and developmen

t

Motivation and

supervision

Performance evaluation

Communication

Coordination

Integration

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Executive Ladder in Personal SellingExecutive Ladder in Personal Selling(Figure 1-6)(Figure 1-6)

Salesperson

Sales supervisor

District sales manager

Regional/divisional sales manager

National sales manager

Vice president of sales

President

Staff assistants available for adviceand support at anystep along the ladder.

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Executive Ladder in Team SellingExecutive Ladder in Team Selling(Figure 1-7)(Figure 1-7)

Customer sales/service representative

Distributionlogistics

specialist

Client-teamleader

Productengineer

Vice president of marketing

President

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Sales Force Management Sales Force Management Challenges in the 21Challenges in the 21stst Century Century

Selling by executivesSelling by executives Customer relationship management (CRM)Customer relationship management (CRM) Sales force diversitySales force diversity Complex channels of distributionComplex channels of distribution An international perspectiveAn international perspective Ethical behavior and social responsibilityEthical behavior and social responsibility