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Chapter 1
The Field of
Sales Force
Management
Management is the art of getting
things done through people.
Theodore Roosevelt
McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
( Figure 1-1)
Top Five Customer Complaints
About Salespeople
Percent of Customers with Complaint
17%
Does not understand our business
15%
Inadequate product knowledge
13%
Does not respond to our needs
12%
Does not listen to our needs
11%
Should be more of our advocate
0%
5%
10%
15%
20%
Source: The HR Chally Group, Ten Year Research Report, 2002.
1-2
( Figure 1-2)
Types of Outside Sales Forces
Product
Sold for
Purpose
of:
↓
Consumption
Incorporation
Resale
To Businesses That Are
To Consumers
Manufacturers
Intermediaries
Institutions
Avon selling
lipstick to women
consumers
Xerox selling a
photocopier to
office staff of Eli
Lilly Pharmaceuticals
Maintenance
company
selling snow
plowing
service to
grocery store
3M selling
overhead
projectors to a
local school
district
n.a.
Owens Illinois
selling custom-fit
windshields to Ford
for its Mustang
n.a.
n.a.
n.a.
Goodyear
selling tires to
Tire America
Florist selling
dried flowers to
hospital gift shop
n.a.
1-3
The Nature of Personal Selling
Transaction
Selling
– Get new accounts
– Get the order
– Cut the price to get the
sale
– Manage all accounts to
maximize short-term
sales
– Sell to anyone
Relationship
Selling
– Retain existing
accounts
– Become the preferred
supplier
– Price for profit
– Manage each account
for long-term profit
– Concentrate on highprofit-potential
accounts
1-4
6 Categories of Sales Jobs
Consultative
Key
seller
account seller
New
business seller
Sales
support
Missionary
Delivery
seller
seller
1-5
(Figure 1-3)
Selected Activities of Salespeople
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/technic
al 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
Professional
development:
Company service:
Participate in:
• Train new
salespeople
• Sales meetings
• Perform civic duties
• Professional
associations
• Training programs
• Develop sales
strategies and plans,
forecasts, and
budgets.
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Sales jobs differ from other jobs because
salespeople…
implement a firm’s marketing strategies in the field.
are authorized to spend company funds.
represent their company to customers and to society in general.
represent the customer to their companies.
operate with little or no direct supervision and require a high degree
of motivation.
frequently face rejection.
need more tact and social intelligence.
travel extensively, which takes time from home and family.
have large role sets.
face role ambiguity, role conflict, and role stress.
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(Figure 1-5)
Sales Management Responsibilities
Strategic
planning
Organizing
the sales
force
Performance
evaluation
Communication
Coordination
Motivation
and
supervision
Integration
Recruiting,
selection,
assimilation
Training and
development
1-8
(Figure 1-6)
Executive Ladder in Personal Selling
President
Vice president of sales
National sales manager
Regional/divisional sales manager
District sales manager
Sales supervisor
Salesperson
Staff assistants
available for advice
and support at any
step along the ladder.
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(Figure 1-7)
Executive Ladder in Team Selling
President
Vice president of marketing
Distribution
logistics
specialist
Client-team
leader
Product
engineer
Customer
sales/service
representative
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Sales Force Management
Challenges in the 21st Century
Selling
by executives
Customer
Sales
force diversity
Complex
An
relationship management (CRM)
channels of distribution
international perspective
Ethical
behavior and social responsibility
1-11