1. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 1 The Field of Sales Force Management Management is the art of getting things done through people. Theodore Roosevelt

2. 1-2 Percent of Customers with Complaint ( Figure 1-1) Top Five Customer Complaints About Salespeople Source: The HR Chally Group, Ten Year Research Report, 2002.

3. 1-3 Types of Outside Sales Forces ( Figure 1-2) Product Sold for Purpose of: ↓ To Businesses That Are To Consumers ManufacturersIntermediariesInstitutions Consumption Avon selling lipstick to women consumers Xerox selling a photocopier to office staff of Eli Lilly Pharma- ceuticals Maintenance company selling snow plowing service to grocery store 3M selling overhead projectors to a local school district Incorporationn.a. Owens Illinois selling custom-fit windshields to Ford for its Mustang n.a.n.a. Resalen.a.n.a. Goodyear selling tires to Tire America Florist selling dried flowers to hospital gift shop

4. 1-4 The Nature of Personal Selling Transaction 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 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

5. 1-5 6 Categories of Sales Jobs  Consultative seller  Key account seller  New business seller  Sales support  Missionary seller  Delivery seller

6. 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/technic al 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

7. 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.  frequently face rejection.  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.

8. 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

9. 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.

10. 1-10 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

11. 1-11 Sales Force Management Challenges in the 21 st Century  Selling by executives  Customer relationship management (CRM)  Sales force diversity  Complex channels of distribution  An international perspective  Ethical behavior and social responsibility