2. Some questions answered in Chapter 17
Which areas of the company work with salespeople to satisfy customer needs?
How do salespeople coordinate the efforts of various functional areas of the company?
How do salespeople work with sales managers and sales executives?
How do company policies, such as compensation plans, influence salespeople?
How do salespeople work within the company to resolve ethical issues?
What is the organizational structure, and how does it influence salesperson activities?

3. Sales representatives
Who does a sales representative represent?

4. Role clarity
The degree to which the salesperson’s perceptions of the sales role are correct.

5. Role conflict
Occurs when two partners demand incompatible actions of the salesperson.

6. A role conflict example, part 1
Management wants to clear out the inventory of PD2s. They have cut the price 10% and added a 5% commission bonus for every PD2 sold.
The technicians, who install and fix your company’s products, think the PD2 is a piece of junk. They told you not to sell it – customers will hate it plus it makes the technician’s lives miserable because they have to fix it all the time.

7. A role conflict example, part 2
A customer’s needs are such that you think the PD2 might work for them.
The technician says to sell them the TW7, but you believe it costs too much for this customer.
Your manager reminds you that you need one more sale this month to make your quota.
What do you do?

8. Role ambiguity
Occurs when the salesperson is not sure what actions are required.

9. Predicting the future
What industry to you expect to work in when you graduate?
What are your expectations about this industry’s future?
What will happen if you are wrong?

10. Which compensation plan offers the least security?
Straight salary
Straight commission
Drawing plan
Combination plan

11. Examples of quotas Type of Quota: Revenue Margin Points Quota $1,000K
Exhibit 17.3
Type of Quota:
Revenue
Margin
Points
Quota
$1,000K
300K
100 pts.
Actual Performance
Salesperson 1
987K
296K
125
Salesperson 2
1,238K
285K 84
Salesperson 3
1,134K
304K
100
Points: (1) Margin/10K; (2) all others are 5 pts each
Point Performance
Margin
Ads
Displays
New Accts.
Total
Salesperson 1 30 45 20
125
Salesperson 2 29 15 84
Salesperson 3 25
100

12. Alternative point method
Exhibit 17.3
Type
Quotas
Salesperson 3 Performance
% Quota Performance
Margin point quota
= 30 30
100%
Ad quota (6 ads) 25
84%
Display quota (4 displays)
= 20
150%
New account quota (4 new accounts) 15
75%
Total
100 points
100

13. An example of a draw compensation plan
Exhibit 17.3
ON:
Jan. 1
Feb. 1
Mar. 1
Apr. 1
The rep is paid:
in salary
$ 500
in draw
1,500
-0-
(500)
(1,000)
in commission
2,000
2,500
Total paycheck
$2,000
Amount owed to the company
$1,500
$1,000

14. Strategies for handling unethical requests from a manager, part 1
Your manager tells you to recommend the deluxe model of your product to a particular customer. The customer’s needs are such that the economy model is better suited.
The customer trusts you and has not shopped the competition at all.
The customer, being a school system, qualifies for a government discount but your manager told you to charge full price.

15. Strategies for handling unethical requests from a manager, part 2
Which strategy do you think is best to use?
Leave the organization or ask for a transfer.
Blow the whistle or threaten to blow the whistle.
Appeal to a higher authority.
Agree to the demand, but fail to carry it out.
Ignore the request.

16. Promotion from sales to sales management
List the skills you think would be most needed by a sales manager.
Are these the skills of a superior salesperson?

17. Team-selling organization
Exhibit 17.7
V.P.,
Sales
Account
Sales Manager
Account
Manager
Account
Manager
Account
Manager
Computer
Specialist
Computer
Specialist
Test Equip. Specialist

18. Multi-level selling Buying company Selling company
Exhibit 17.8
Buying company
Selling company
Vice President of Purchasing
Vice President of Sales
Director of Purchasing
Account Manager
Engineer
Product Specialist

19. Any questions about the terminology?
Field sales manager
Field salespeople
Field support rep
Geographic salesperson
Gross margin quota
House account
Inbound
Incentive pay
Inside salespeople
Internal partnerships
Key accounts
Multilevel selling
National account manager (NAM)
Open-door policy
Outbound
Profit quota
Quota
Revenue quota
Salary
Sales quota
Straight commission
Straight salary
Strategic account manager (SAM)
Team selling
Activity quota
Bonus
Bottom-up forecasting
Cap
Combination plan
Commission
Commission base
Commission rate
Customer service rep
Draw
Ethics review board