1-1
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
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 McGraw-Hill Companies, Inc. All rights reserved.
( Figure 1-1)
Help on the Net
1-3
Percentage of Companies Using the Internet for Sales Activities
100%
80%
60%
40%
20%
0%
Source: “G-BB,” Sales and Marketing Management, June 2000, pp. 64&65.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
( Figure 1-2)
Types of Sales Jobs
Position
Product Examples
Customers
Manufacturers
Wholesalers
Selling Responsibility:
To Increase Sales By
Industrial sales representative
for a
producer
or a wholesaler
Industrial Products
Cummins
Alcoa
V.S. Steel
Milacron
Fanuc
Microsoft
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 technical
information and
assistance
Providing product
information, merchandising
and promotional
assistance, and
management consulting
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





Copyright © 2003 by The McGraw-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
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
•Arrange for delivery
•Check inventory levels
•Entertain
•Stock shelves
•Arrange for
credit/financing
•Provide merchandising
assistance:
•Collect payments
•Co-op advertising,
point-of-purchase
displays, brochures
•Participate in trade
shows
•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 McGraw-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

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
(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 McGraw-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 McGraw-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 McGraw-Hill Companies, Inc. All rights reserved.
Product
engineer
Sales Force Management
Challenges in the 21st Century
 Customer
1-11
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
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.