1 -1 Copyright 2003 by The Mc

Chapter 1 1 -2 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 Mc. Graw-Hill Companies, Inc. All rights reserved.

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

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

1 -5 The Nature of Personal Selling Transaction Selling l l l 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 l l l Copyright © 2003 by The Mc. Graw-Hill Companies, Inc. All rights reserved. Retain existing accounts Become the preferred supplier Price for profit Manage each account for long-term profit Concentrate on high-profitpotential accounts

1 -6 (Figure 1 -3) Selected Activities of Salespeople 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: Territory management: Professional development: Company service: • Provide management/technical consulting • Gather and analyze information on customers, competitors’ general market developments Participate in: • Perform civic duties • 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 • Disseminate information to appropriate personnel within salesperson’s company • Develop sales strategies and plans, forecasts, and budgets. • Train wholesalers’ and retailers’ salespeople Copyright © 2003 by The Mc. Graw-Hill Companies, Inc. All rights reserved. • Sales meetings • Professional associations • Training programs • Train new salespeople

Sales jobs differ from other jobs because salespeople… 1 -7 l implement a firm’s marketing strategies in the field. l are authorized to spend company funds. l represent their company to customers and to society in general. l represent the customer to their companies. l operate with little or no direct supervision and require a high degree of motivation. l develop innovative solutions to difficult problems. l need more tact and social intelligence. l travel extensively, which takes time from home and family. l have large role sets. l face role ambiguity, role conflict, and role stress. Copyright © 2003 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

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

1 -9 (Figure 1 -6) Executive Ladder in Personal Selling President Vice president of sales National sales manager Regional/divisional sales manager District sales manager Sales supervisor Salesperson Copyright © 2003 by The Mc. Graw-Hill Companies, Inc. All rights reserved. Staff assistants available for advice and support at any step along the ladder.

1 -10 (Figure 1 -7) Executive Ladder in Team Selling President Vice president of marketing Distribution logistics specialist Client-team leader Customer sales/service representative Copyright © 2003 by The Mc. Graw-Hill Companies, Inc. All rights reserved. Product engineer

Sales Force Management Challenges in the 21 st Century l Customer 1 -11 relationship management (CRM) l Sales force diversity l Electronic communication systems and computer-based technology l Selling teams l Complex channels of distribution l An international perspective l Ethical behavior and social responsibility Copyright © 2003 by The Mc. Graw-Hill Companies, Inc. All rights reserved.