Chapter 12 selling overview Section 12.1 The Sales Function Sales Careers

The Sales Function Section 12.1 REFLECT Team up with one other person and “sell them” on the product you have picked up from me!

Textbook material – formative activities Quizzes over material Unit Overview Textbook material – formative activities Quizzes over material Guest speakers Team project Formative check-ins Presentation

The Sales Function Section 12.1 Explain the purpose and goal of the selling function. Discuss how selling is related to the marketing concept. Describe Customer Relationship Management. Analyze sales trends and techniques. Summarize sales management responsibilities. Explain legal and ethical sales issues.

The Sales Function Section 12.1 The marketing concept comes alive in the sales function with the help of emerging trends and technology. Customer Relationship Management (CRM) and sales management efforts help to achieve the purpose and goal of selling.

The Marketing Concept Section 12.1 The idea that a business should strive to satisfy customers’ needs and wants while generating a profit for the business.

The Sales Function customer relationship management (CRM) call report Section 12.1 customer relationship management (CRM) call report sales quota

Selling and the Marketing Concept The Sales Function Section 12.1 Selling and the Marketing Concept Purpose of Selling Goal of Selling To help customers make satisfying buying decisions. To create ongoing, profitable relationships with customers. The marketing concept has created a customer-centered focus.

Selling and the Marketing Concept The Sales Function Section 12.1 Selling and the Marketing Concept Customer relationship management (CRM) has flourished due to new computer technology. customer relationship management (CRM) A system that involves finding customers and keeping them satisfied.

Details on Selling and the Marketing Concept and Sales Management The Sales Function Section 12.1 Details on Selling and the Marketing Concept and Sales Management

Details on Selling and the Marketing Concept and Sales Management The Sales Function Section 12.1 Details on Selling and the Marketing Concept and Sales Management

Web sites – online purchases, games, information, salespeople Technology Trends Section 12.1 Web sites – online purchases, games, information, salespeople Social Media – receiving & sending communications E-mail - thank customers, address customer service issues, track orders, targeted emails (new promotions)

Customer Loyalty Programs – rewards programs, special bonuses Technology Trends Section 12.1 Customer Loyalty Programs – rewards programs, special bonuses Computer software – sales automation, sales territory management, sales forecasting Mobile devices – phones & laptops – check on customers past purchases, product availability Partnerships – Companies are partners. Example – Oracle & IBM – effort to design an Oracle CRM system for Konica Minolta Business Solutions.

Four main areas of focus: Company policies Training Sales Management Four main areas of focus: Company policies Training Compensation & Sales Quota Legal & Ethical Issues

Company Policies Establishes the guidelines & policies for the sale team Required Reports Teamwork & Integrity

The Sales Function Sales Management Section 12.1 Sales Management Sales personnel may be required to complete call reports each time they visit a customer. call report A written report that documents a sales representative’s visit with a customer, including the purpose and outcome of the visit.

Training Four step process: Explanation Demonstration Trial Critique

Application Get with a partner Determine roles – Sales Manager and Sales Rep. Use the 4-step process to sell a GPS device Explanation Demonstration Trial Critique Be ready to share out with others!

Compensation Straight commission Straight salary Salary + commission Expense accounts Incentives Straight Commission – usually higher percentage – only get paid if you sell something! Examples: Automobiles 20-25%; Advertising – 50%; Retail – Appliances & Electronics – 8-10%; Furniture – 2-6%; Insurance – 30-70% for the first year, smaller amount if they renew Straight Salary – higher salary – but probably lower than commission. Steady income Salary + Commission – Base salary + Commission %. This % will be lower than straight commission. Expense accounts – food, travel, car, dry cleaning, . . . . Incentives – recognition, gift and/or monetary bonus

The Sales Function Sales Management Section 12.1 Sales Management Regardless of the method of compensation, sales managers often establish sales quotas. sales quota A dollar or unit sales goal set for the sales staff to achieve in a specified period of time.

Compensation Conclusions Which of the three compensation methods do you think is the most risky? Which do you think can potentially lead to the greatest income? Why? How might having a sales quota affect the behavior of a salesperson?

Legal and Ethical Issues The Sales Function Section 12.1 Sales Management Sales Management Considerations Legal and Ethical Issues Sales Pressure Sales Contracts Sales Regulations

Examples of Legal and Ethical Behavior The Sales Function Section 12.1 Sales Management Examples of Legal and Ethical Behavior

Examples of Legal and Ethical Behavior The Sales Function Section 12.1 Sales Management Examples of Legal and Ethical Behavior

Sales or Purchase Order Legal Document: An Offer An Acceptance Consideration (price & terms) Competent parties (buyer & seller) Legal form Legal Subject matter

Examples: Sales Regulations Time period to cancel the agreement (24-48 hr) Full disclosure – real estate Pricing info - accurate Ethical selling practices

The Sales Function 1. Explain the purpose and goal of selling. Section 12.1 Section 12.1 1. Explain the purpose and goal of selling. The purpose of selling is to help customers make satisfying buying decisions with the goal of creating ongoing, profitable relationships with them.

The Sales Function Section 12.1 Section 12.1 2. Discuss which trends and technologies help businesses with customer management. Company Web sites, targeted customer e-mails, customer loyalty programs, computer sales software, mobile devices, and partnerships between businesses help with CRM.

The Sales Function Section 12.1 Section 12.1 3. Explain the role that sales management plays in the sales process. Sales management establishes the guidelines and policies under which sales people function. Sales managers plan, organize, and control the sales function.

Code of Sales Ethics Why do you think salespeople are sometimes depicted in movies as dishonest? With a partner, research sales ethics in business magazines, on the Web, or through interviews with salespeople. Make a list of the characteristics of ethical salespeople. Use that list to prepare a simple “Code of Sales Ethics.” Make sure to cite your research sources. Turn in the written document to the class folder.