1. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are good salespeople born or made?" Define the characteristics of successful salespeople Explain the role of sales aptitude in sales performance Understand the different success characteristics for different sales positions Learning Objectives

2. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.2 Most managers believe that the things a firm does to train and develop it salespeople represent the most critical determinants of their future success. They also believe that a strong ego, self- confidence, decisiveness, and a need for achievement must be extant in sales force candidates. Born or Made?

3. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.3 Variable affecting performanceManagement actions Aptitude Personal characteristics Skill levels Role perceptions Motivation Organizational and environmental factors Recruitment/selection policies Training and supervision Compensation/ reward systems Sales force organization Variables That Cause Differences in Performance

4. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.4 Past research indicates that factors controlled or influenced by sales mangers -- such as role perception, skills, and motivation -- account for the largest proportion of the variance in sales performance. These research conclusions suggest that successful salespeople are both born and made. Variables That Cause Differences in Performance

5. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.5 The odds a given salesperson will quit or be terminated in his/her first five years of employment are 50/50. People lacking the personal traits and abilities to succeed in a sales job tend to become frustrated, to quit... or be fired, before training and experience can turn them into productive sales performers. Costs of Inappropriate Selection

6. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.6 Aptitude and personal characteristics may place an upper limit on an individual's ability to perform in a sales job. Enthusiasm consistently ranks among the most important personal attributes in selling. General sales experience typically means more than specific product or industry experience. Characteristics of Successful Salespeople

7. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.7 Personal factors influencing variance in sales performance fall more precisely into these defined groupings: (a) physical and behavioral characteristics (b) psychological traits and abilities Research into Personal Characteristics

8. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.8 Demographic and Physical Characteristics Age, sex, physical appearance Background and experience Personal history and family background, level of education, educational content, sales experience, nonsales work experience Current status and lifestyle Marital/family status, financial status, activities/lifestyle Categories of Physical and Behavioral Variables

9. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.9 Aptitude Intelligence Cognitive Abilities Verbal Intelligence Math Ability Sales Aptitude Personality Responsibility Dominance Sociability Self-esteem Creativity/flexibility Need for achievement/intrinsic rewards Need for power/extrinsic rewards Skills Vocational skills Sales presentation Interpersonal General management Vocational esteem Psychological Traits and Abilities

10. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.10 What type of sales representative has a tougher time making sales? (Percent of respondents indicating it was an issue) A sloppily dressed sales rep94% An unstylish sales rep (haircut, out of style outfit)75% A physically unattractive sales rep59% An overweight sales rep54% A sales rep with a heavy accent54% A very young looking sales rep32% An older looking sales rep8% The Importance of Image

11. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.11 What type of sales representative would you avoid hiring? (Percent of respondents indicating it was an issue) A sloppy dresser80% A rep who used salty language78% A rep with visible body piercing or tattoos77% An unstylish look51% Male overweight37% Female overweight23% A heavy regional foreign accent20% An unattractive female20% An unattractive male13% A very youthful appearance12% Any older look 2% The Importance of Image

12. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.12 Percent with College Degree Industry Health service 100% Pharmaceuticals 100 Air transportation 100 Printing/Publishing 84 Rubber/Plastics 83 Manufacturing 78 Electronics 77 Chemicals 73 Business services72% Electronic components67 Communications56 Banking46 Construction40 Trucking/Warehousing33 Real estate33 Retail29 Transportation equipment28 The Educated Sales Force

13. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.13 Customers and salespeople were asked, "What kind of rep is most trustworthy?" Salespeople indicated listening skills were most important in building trust with the customer while customers believe product knowledge was the key in winning trust. Let’s look at the results… Most Trustworthy

14. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.14 Characteristic% of Customers% of Salespeople Product knowledge79.5%79.6% Understands business63.973.1 Reliable63.175.1 Understands customer needs63.185.3 Confidence in product54.163.8 Likable53.355.6 Positive attitude50.871.2 Good listening skills44.387.2 Intelligent41.840.3 Asks good questions39.365.9 Self-confident22.145.6 Well-dressed14.829.1 Most Trustworthy (continued)

15. Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.15 Variables Affecting Performance Personal history/family background Marital/family status Sales aptitude Dominance Self-esteem Sales presentation skills Interpersonal skills Type of Product Being Sold Industrial Goods Consumer Goods Services Weak Strong Weak Strong Moderate Weak Moderate Weak Moderate Strong Weak Moderate Weak Characteristics Related to Sales Performance