Sales Management
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Transcript Sales Management
Sales Management
Social, Ethical, and Legal
Responsibilities of Sales
Personnel
Sales Management
Management’s Social Responsibilities
Organizational Stakeholders
Customers
Community
Creditors
Government
Owners
Managers
Employees
Suppliers
Sales Management
Management’s Social Responsibilities
Economic Responsibilities
Produce
Goods and Services
Maximize Profits
Legal Responsibilities
• Fulfill their Economic Goals Within a
Legal Framework
Sales Management
Management’s Social Responsibilities
Ethical Responsibilities
Act
with Equity, Fairness & Impartiality
Respect the Rights of Individuals
Discretionary Responsibilities
• Voluntary & Guided by Company’s
• Desire to Make Social Contributions
Sales Management
Management’s Ethical Responsibilities
“Ethics”
A set of moral principles and values
that governs the behavior of a
person or a group with respect to
what is right and wrong.
Sales Management
Management’s Ethical Responsibilities
What is an Ethical Dilemma?
There is no uniform codification of
ethics so differences and dilemmas
about proper behavior can occur.
A situation when all of the choices for a
solution to a problem have some element
that could create negative ethical or
personal consequences.
Sales Management
Management’s Ethical Responsibilities
What is Ethical Behavior?
Being honest
Maintaining confidence and trust
Following the rules
Conduct yourself in proper manner
Treat others fairly
Loyalty to company and associates
Carry your share - 100% effort
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas:
Level
of Sales Pressure
Setting Sales Goals
(realistic/obtainable)
Management Style
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas:
Territorial Decisions
Expanding Territories
Decreasing Territories
Creating House Accounts
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas :
To
Tell The Truth?
Performance
At Termination
The
Ill Salesperson
Alcohol or Drug Abuse Treatment
Employee
Rights
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas :
Employee
Rights
Termination-at-will
Privacy
Sexual Harassment
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas :
Reason
to Respect Employee
Rights
High quality of work life
Attracting/Retaining good people
Avoid costly back-pay and awards
Establish balance between employee and
employer rights/obligations
Sales Management
Salesperson’s Ethical Responsibilities
Salesperson ethics re: The Company
Misuse
of Company Assets
Automobiles
Expense Accounts
Samples
Damaged merchandise credits
Moonlighting
Sales Management
Salesperson’s Ethical Responsibilities
Salesperson ethics re: The Company
Cheating
Contests
Holding Sales
Overloading Customer
Affecting
Fellow Salespeople
Taking Customers
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Treat The Customer
Bribes
or Gifts
Offering
Buyer Originated
Misrepresentation
“Sales Puff ” vs. Statements of Fact
Legal Ramifications
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Stay Legal
Know capabilities and characteristics of
company products and service
Statements of Praise vs. Statements of Fact
Educate Customers before the Sales
State Product Capabilities Accurately
Know Technical Specifications
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Stay Legal
Avoid Exaggerated Product Safety Claims
Know Federal and State Laws
Keep Current with Design Changes and
Revisions
Avoid Opinions Stick to Testing Statistics
Never Overstep Authority (Pricing or Policy)
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Treat The Customer
Price
Discrimination
Customers who buy similar
quantities should receive same
pricing
Tie-in
Sales
Violates Clayton Antitrust Act
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Treat The Customer
Exclusive
Dealership
Purchase from one manufacturer Clayton Act
Reciprocity
“I’ll Buy Yours If You’ll Buy Mine”
FTC and Justice Scrutinize
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Treat The Customer
Sales
Restrictions
“Cooling Off ” Laws - 3 days
Green River Ordinances
Sales Management
International Ethical Issues
U.S. Laws Do Not Stop at The Border
Employees
of American Business
Should Know the Law
Stick
to Features and Benefits and
Sell to Companies Not Individuals
Sales Management
Selling Ethics
Surveys Indicate Managers’ Experience
Most Managers:
Face Ethical Problems
Believe Managers and Employees
Should Be More Ethical
Are More Ethical with Friends than
Strangers
Lower Ethics to Meet Job Goals
Sales Management
Selling Ethics
Surveys Indicate Managers’ Experience
Most Managers:
Are Aware of Ethical Issues in Industry
and Company
Believe
Ethics Can Be affected by
Supervisors and Company Environment
Sales Management
Selling Ethics
Management Practices Help Responsiveness
Some Guidelines:
Top
Management Takes Lead
CEO, President, Vice Presidents Must
Champion
Carefully
Select Leaders
Establish/Follow Code of Ethics
Sales Management
Selling Ethics
Management Practices Help Responsiveness
Some Guidelines:
Establish/Follow
Principle Based
Policy Based
Create
Code of Ethics
Ethical Structures
Ethical Committee
Ethical Ombudsman
Sales Management
Selling Ethics
Management Practices Help Responsiveness
Some Guidelines:
Encourage
“Silent Witness” Program
Create
Whistle Blowing
Ethical Sales Environment
Actions of Top-Level Managers
Sales Management
Selling Ethics
Management Practices Help Responsiveness
Some Guidelines:
Establish
Control Systems
Low Bid Review Process
Expense Report Audits