Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 1-1

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 1-2 Chapter 1 The Field of Sales Force Management The best executive is the one who has enough sense to pick good people to do what he wants done and self-restraint enough to keep from meddling with them while they do it. Theodore Roosevelt

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 1-3 Percentage of Companies Using the Internet for Sales Activities ( Figure 1-1) Help on the Net Product Explanation Proposal Development Competitive Reporting Expense Reports Order Entry Prospecting Source: “G-BB,” Sales and Marketing Management, June 2000, pp. 64&65.

Position Product Examples Customers Selling Responsibility: To Increase Sales By Industrial sales representative Industrial Products Manufacturers Providing technical Cummins Wholesalers information and Alcoa assistance V.S. Steel Milacron Fanuc Microsoft Business products representative Business Products & Services Manufacturers Providing product Xerox Wholesalers information and Eli Lilly Retailers assistance Lincoln National Insurance Institutions Consolidated Freightways Leo Burnett Consumer products representative Consumer Products & Services Wholesalers Providing product Proctor and Gamble Retailers information, merchandising Ford Motor Company Consumers and promotional General Electric assistance, and Metropolitan Life Insurance management consulting Avon American Cancer Society producer or a wholesaler producer, wholesaler, retailer, or nonprofit organization for a ( Figure 1-2) Types of Sales Jobs

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 1-5 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 high-profit- potential accounts

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 1-6 Selected Activities of Salespeople (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

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 1-7 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. develop innovative solutions to difficult problems. 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.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 1-8 Sales Management Responsibilities (Figure 1-5) Strategic Planning Organizing the sales force Recruiting, selection, assimilation Training and development Motivation and supervision Performance Evaluation Communication Coordination Integration

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 1-9 Executive Ladder in Personal Selling (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 advice and support at any step along the ladder.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved Executive Ladder in Team Selling (Figure 1-7) Customer sales/service representative Distribution logistics specialist Client-team leader Product engineer Vice president of marketing President

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved Sales Force Management Challenges in the 21 st Century Customer relationship management (CRM) Sales force diversity Electronic communication systems and computer-based technology Selling teams Complex channels of distribution An international perspective Ethical behavior and social responsibility