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Fundamentals of Selling

Fundamentals of Selling

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Fundamentals of Selling

Why So Many People Take Sales Courses ? They want to improve their communication skills to be more successful in both their personal and business lives.

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Table of Contents
Part1: Selling as a Profession
Chapter 1: The Life, Time, and Career of the Professional Salesperson Chapter 2: Relationship Marketing: Where Personal Selling Fits Chapter 3: Ethics First . . . Then Customer relationships

Part 2: Preparation for Relationship Selling
Chapter 4: The Psychology of Selling: Why People Buy Chapter 5: Communication for Relationship Building: It's Not All Talk Chapter 6: Sales Knowledge: Customers, Products, Technologies

Part 3: The Relationship Selling Process
Chapter 7: Prospecting – The Lifeblood of Selling Chapter 8: Planning the Sales Call Is a Must! Chapter 9: Carefully Select Which Sales Presentation Method to Use Chapter 10: Begin your Presentation Strategically Chapter 11: Elements of a Great Sales Presentation Chapter 12: Welcome Your Prospect's Objections

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Chapter 13: Closing Begins the Relationship Chapter 14: Service and Follow-Up for Customer Relation

Part 4: Managing Yourself, Your Career, and Others
Chapter 15: Time, Territory, and Self-Management: Keys to Success Chapter 16: Planning, Staffing, and Training Successful Salespeople Chapter 17: Motivation, Compensation, Leadership, and Evaluation of Salespeople

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Part1 Selling as a Profession 5 .

and Career of the Professional Salesperson 6 . Time.Chapter 1 The Life.

idea. In business. 7 . selling is actually only one of many marketing components. A traditional definition of personal selling refers to the personal communication of information to persuade a prospective customer to buy something – a good.the – sale service to ensure long. service.term satisfaction. Everybody Sells: Selling is not just for salespeople. and provide after . Time. However. suggest a product to meet their needs. you are developing communications techniques for trying to get your way in life. provide information.Chapter 1 The Life. The salesperson and the buyer discuss needs and talk about the product relative to how it will satisfy the person's needs. From an early age. You are involved in selling when you want someone to do something. it is must for everyone. The definition also involves communications between seller and buyer. This definition of selling involves a person helping another person. The salesperson often works with customers to examine their needs. or something else – that satisfies that individual's needs. and Career of the Professional Salesperson What is Selling? Many people consider selling and marketing synonymous terms.

a service.A New Definition of Personal Selling Refers to the personal communication of information to unselfishly persuade a prospective customer to buy something – a good. The new definition inserts the word unselfish into the traditional definition of personal selling. This important concept will be applies to personal selling because it is effective in explaining differences in salespeople and explain why many people have a negative view of some salespeople and a positive view of other salespeople. the better the customer service. The Golden Rule of Personal Selling Refers to the sales philosophy of unselfishly treating the others as they are would like to be treated. The word unselfish tells salespeople to be caring toward customers and to serve – help – the person or organization without expecting to get something in return. or something else – that satisfies that individual's needs. When the word unselfishly is added to the definition. The Golden Rule of Personal Selling are prescribe guide for conduct or action. 8 . The more the salesperson considers the customer's interest. The Golden Rule is all about trying to keep somebody else warm. it makes a big different in how someone might look at selling.

Do what they think they Do what they are can get away with.Would you want to be the Traditional. Pride and ego driven Attribute results to others. Attribute results to personal effort. economy Enjoy recognition. thus not motive by pride and ego. Guided by self-interests Take care of customers Find others' interest most important. but not to the customer's detriment 9 . Service most important. Attribute results to personal efforts. money is to be shared Money is life's main motivator Money is important. customers. sharing not important. Seek recognition for efforts. employer. the Professional. may share if it suits their purpose. or the Golden Rule Salesperson? why? The difference between Traditional Salespeople. Professional Salespeople and Golden rule Salespeople Traditional Salespeople Professional Salespeople Golden rule Salespeople Do the right thing. Pride and ego driven Feel that an individual's performance is due to others. legally required to do.

or a manufacturer's sales representative These categories are classifies according to the type of products sold and the salesperson's type of employer. 2) The wide variety of sales jobs available Salespeople are a vital element in the firm's effort to marketing goods and services profitability. Selling for a wholesaler Wholesalers (also called distributors) buy products from manufacturers and other wholesalers and sell to other organizations. So that most companies presents a large number of career opportunities. Selling in Retail A Retail Salesperson sells goods or services to consumers for their personal. non-business use. Types of sales job Most salespeople work in one of three categories: As a retail salesperson. A whole salesperson sells products to parties for: 10 . a wholesaler's salesperson.Why Choose Sales Career? Six major reasons for choosing a sales career: 1)The opportunity to provide service to others Service refers to makes a contribution to the welfare of others.

4) Job Challenge Salespersons often deal with many of different people and firm over time. such as grocery retails buy items and selling these items to the consumers. such as the schools buy the supplies Selling for Manufacturer Manufacturers' salespeople work for organizations producing the product. 3) Freedom of Action A sales job provides possibly the greatest relative freedom of any career. Beginning as a salesperson allows person to: 11 . The types of manufacturer's representative positions range from people who deliver milk and bread. It is much like operating your own business without the burdens of true ownership. and Salespeople are expected to carry out their job duties and achieve goals with minimum guidance. such as a home builder buying electrical and plumbing supplies. Use in producing other goods or services. this environment adds great variety to a sales job. 5) Opportunities for Advancement Are Great Successful salespeople have many opportunities to move into top management positions. Operating an organization. Job duties and sales goals are explained by the managers .Resale. to specialized salesperson selling highly technical products.

and its salespeople. it is generate by the individual. Non-financial Rewards Sometimes called psychological income or intrinsic rewards. The financial rewards Many professional salespeople have opportunities to earn large salaries. its products. 6) The rewards from a sales career Both financial rewards and non-financial rewards. the higher the sales position the greater benefits offered. * Become seasoned in the business world. such as the great challenge and the feeling of making a valuable contribution to their salespeople and to the company In addition to performance. * Become familiar with customer attitudes toward the company. not given by company.* Learn about the attitudes and activities of the company's salespeople. which is most important in technical sales. * Gain first-hand knowledge of products and their application. 12 . A selling career allows to experience these good feelings and intrinsic rewards daily. their salaries average even higher than salaries for other types of workers at the same organizational level. Successfully meeting the challenges of the job produces a good feeling of self-worth.

kind. passions. and desires. the salesperson's actions show that she or he is a morally ethical person. the caring attitude helps to create harmony in the relationship. through caring comes the joy of helping others. and competitors that the salesperson is fair and kind. Having patience the customers shows the salesperson understands the customer's needs and wants to help (kindness). Self-control concerns our emotions. Kindness. Faithfulness shows the employer. Patience. 13 . self-controlled The person who cares. and Harmony Today's salesperson needs personal characteristics that allow for true caring for customers. like the job. morally ethical is certainly someone who will be faithful in taking care of customers. fair. Any discussion of what it takes to be successful in a sales job should have including these sales personal characteristics: Caring. customers. When salespeople show that the customer comes first. Faithful. which is the most difficult trait for salesperson to develop. and Moral Ethics Salespeople are often under pressure to make the sale today! They need to be able to handle the pressure to sell now through demonstrating patience in the working relationship with the customer. Personal characteristics needed for a sales career.Salespeople often report that the non-financial rewards of their jobs are just as important to them as financial rewards. people are more likely to trust them. Joy. Customers can trust this person.

and the ability to overcome difficulties. Most people believe that a salesperson only makes sales presentations. and the location of customers. the desire to achieve. So that sales jobs are different from other jobs in several ways: * Salespeople represent their companies to the outside world.Sales Jobs Are Different Selling is hard work! It requires intelligence. * Salespeople are among the few employees authorized to spend company funds. They spend this money for entertainment. * Other employees usually work under close supervisory control. transportation. What Does A Professional Salesperson Do? The salesperson's roles or activities can vary from company to another. * Some sales jobs frequently require considerable traveling and time spent away from home and family. * Salespeople probably need more tact. and show great initiative – all of which require a high degree of motivation. to be successful. whereas the outside salesperson typically operates with little or no direct supervision. Moreover. but there is much more to the job than person-to-person selling. persistent. diplomacy. and other business expenses. 14 . and social poise than other employees in an organization. Many sales jobs require the salesperson to display considerable emotional and social intelligence in dealing with buyers. salespeople must often be creative. the firm's market characteristics. opinions of a company and its products are often formed from impressions left by the sales force. Consequently. depending on whether sales involve goods or services.

and executing activities that increase sales and profits. providing samples. 5) Provides Service to Customers Salespeople provide wide range of services. many types of sales jobs require a salesperson to prospect. Salespeople seek to uncover potential or existing needs or problems and show how the use of their products or services can satisfy needs or solve problems. and developing recommendations on how the customer can promote products purchased from the salesperson.The salesperson functions include planning. 4) Provides Solutions to Customers' Problems Customers have needs that can be met and problems that can be solved by purchasing goods or services. The salesperson performs the following functions: 1) Creates New Customers In order to increase sales and replace customers that will be lost over time. suggestion business opportunities. Prospecting is the lifeblood of sales because it identifies potential customers. professional business relationship with people and organizations who trust the salesperson and the products purchased. organizing. including handling complaints. 15 . 2) Sells More to Present Customers Tomorrow's sales come from selling to new customers and selling to present customers again. 3) Builds Long-Term Relationships with Customers Earning the opportunity to sell a present customer more product means the salesperson must have a positive.

friendly. complaints about products or policies. on friendship and trust. The salesperson needs to develop a personal. market opportunities.6) Helps Customers Resell Products to Their Customers A major part of many sales jobs is the salesperson to help wholesalers and retailers resell the products that they have purchased. Many sales are based. to some extent. 7) Helps Customers Use Products after purchase The salesperson's job is not over after the sale is made. customers' reactions to new products. This ongoing part of the salesperson's job requires integrity. This information is so important for many companies that their salespeople are required to send in weekly or monthly reports on activities of the firm's competition. 9) Provides Company with Market information Salespeople provide information to their companies on such topics as competitors' activities. entailing face-to-face contact with the customer. and a sincere interest in satisfying customers' needs. Often. high ethical standards. businesslike relationship with everyone who may influence a buying decision. 8) Builds Goodwill with Customers A selling job is people oriented. customers must be shown how to obtain full benefit from the product. and their job activities. The salesperson helps wholesales customers sell products to retail customers and helps retail customers sell products to consumers. Selling is an art and science 16 .

17 . human. and technical skills necessary for selling. Technical skill includes specialized knowledge. Learning Selling Skills Training helps salespeople acquire the conceptual. and the competent use of tools and techniques to solve problems in that specific discipline.such as understanding buyers' nonverbal communication messages.Selling is both an art and a science. Selling is also a science because a growing body of knowledge and objective facts describes selling. Human Skills Human Skill is the seller's ability to work with and through other people. handling objections. Conceptual skills Conceptual Skills is the ability to see the selling process as a whole and the relationship among its parts. and it is involve the seller's thinking and planning abilities. A formal course work in sales can help a salesperson become more competent and be prepared for challenges of the future. many skills. listening. it is an art because many skills cannot be learned from a textbook. these skills are learned through experience. Technical Skills Technical Skill is the understanding of and proficiency in the performance of specific tasks. The study of selling helps people see and understand things about sales that others cannot. analytical ability.

suppliers. (4) technology. these include (1) international/ global selling. speak other languages. and (5) ethics. and understand cultural differences. and realize by working together both benefit. (2) Diversity of salespeople and customers As the general population becomes more diverse. (2) diversity of salespeople and customers. With more diversity in the workplace comes more diversity in the seller's customers. human. (3) Customer Partnerships Finding a new customer is much harder than keeping an old one. (1) International/ global selling Salespeople need to think globally because companies are enmeshed with foreign competitors. they will apply them in different ways. Successful salespeople of tomorrow will be able to cross borders. trust each other. however. The buyer and seller know each other. and conceptual skills. Major changes occurring today will continue to occur in the distant future and require salespeople to be knowledgeable in areas they didn't need to know about only a few years ago. and customers. (4) Technology used by salespeople 18 . so does the workforce. (3) customer partnerships.Preparing for the 21st century Salespeople will continue to rely heavily on their technical.

To better doing their jobs and service customers. Salespeople are going high technology which becoming part of selling process. personal questions as: Who am I? Why am I here? What should I do with my life? What do I have to offer? Does anyone else feel like what I do? 19 . We should ask ourselves serious. (5) Ethics We have a deep personal need for meaning in our lives and a need to makes contribution to society.

Chapter 2 Relationship Marketing Where Personal Selling Fits 20 .

These activities involve the development. Marketing involves a diverse set of activities directed at a wide range of goods. and ideas. communicating. and the world will beat a path to your door”. and many did not even have a formal sales department. promotion. a common saying in industry was. Companies were basically production oriented.Chapter 2 Relationship Marketing Where Personal Selling Fits Relationship marketing What is marketing? Marketing is an organizational function and a set of processes for creating. 21 . pricing. Customer orientation’s evolution The production concept Before the great depression of the 1930s.” Build a better good. In those days. and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. services. few firms had marketing departments. and distribution of want-satisfying goods and services to consumers and industrial users.

marketing. 22 . rather than selling. The Marketing concept Beginning in the 1950s.The selling concept By the early 1940s. The goal of the firm should be profitable sales volume and not just volume for the sake of volume alone. However. it become clear that the attitude and needs of the consumer had changed. All marketing activities in a firm should be organizationally coordinated. became the focus of business sales activities. Companies still produced goods with little regard for the consumers’ needs. As businesspeople recognized that marketing was vitally important to the success of a firm. a few years after the war. consumers had many products to choose from and firms found they had to go to the consumer. instead of waiting for consumers to buy. they recognized that personal selling and advertising were important selling methods. the marketing concept has three fundamental beliefs: All company planning and operating operations should be customer oriented.

Stresses wants of buyers 3. and future growth. Marketing people typically have these four basic objectives to accomplish: 1.Emphasis is on the product.Management is salesvolume oriented. Emphasis is on customers’ wants. 5.Selling Concept 1. They are in direct contact with customers. Planning is long. Marketing group is the link between customers and the organization.Company first makes the product and then Figures out how to sell it Marketing Concept 1. Maximize the sales of existing products in existing markets. 3. 4. 5. 23 . Tomorrow’s. Management is profit oriented. Company first determines customers’ wants and Then figures out how to make and deliver a product to satisfy those wants. Stresses needs of seller Marketing importance in the firm Marketing considerations should be the most critical factor guiding all short-range and long-range planning in any organization. 2. 2.run.Planning is short-run. 4. in terms of today’s and markets. Salespeople are part of marketing. in term of new products.

and to provide service to ensure customer satisfaction. at a price and place to be delivered or for pickup. The salesperson personally contacts the buyer to analyze needs. The salesperson's organization provides the product to sell. and gain commitment or close the sale. Often a company's promotions inform the buyers about the product. present product benefits. The 4 Ps of Marketing: The four Ps of marketing (product. and promotion) aid salesperson's to selling efforts. place. place or distribution. Develop and sell new products. It is the marketing manager's responsibility to determine how to use each element in the firm's marketing efforts. Essentials of a firm's marketing effort The essentials of a firm's marketing effort include their abilities (1) to determine the needs of their customers and (2) to create and maintain an effective marketing mix that satisfies customer needs. Develop new markets for existing or new products. Provide the quality of service necessary for customers to be satisfied with their transactions and to continue doing business with the organization. 24 .2. 3. price.product. Marketing mix consists of four main elements. Together marketing and personal selling provide the needed service for customers to build long-term relationships. and promotion. 4. price.

There are two general types of products: Consumer products are produced for. it is an important part of marketing mix. its quality. color. use in producing other products. plus the services and even the reputation of the seller. People buy more than a set of physical attributes. Since product price often is critical to customers. including packaging. The term product refers to both goods and services. (2) Price: it is important to success The corporate marketing department also determines each product's initial price. households or end consumers for their personal use Industrial products are sold primarily for. they buysatisfaction. A service is an action or activity done for others for a fee like lawyers or teachers.(1) Product: It is more than you think A good is a physical object that can be purchase like a house or a car. This process involves establishing each product's normal price and possible special discount prices. such as what the product will do. and the image of owing the product. A product is a bundle of tangible and intangible attributes. 25 . and purchased by. and brand.

all producers called firms.Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product. A household refers to a decision-making unit buying for personal use. and (3) governments. (3) publicity. The four basic parts of a firm's promotional effort are (1) personal selling. customers fall into one of three groups: (1) households. Distribution refers to the channel structure used to transfer products from an organization to its customers. 26 . Some households consist of a single person whereas others consist of families. It is important to have the product available to customers in a convenient and accessible location when they want it. Customers can be individuals or organizations. (2) firms. (4) Promotion: you have to tell people about it Promotion. and (4) sales promotion. A firm is an organization that produces goods and services. as part of the marketing mix. increases company sales by communicating product information to potential customers. (3) Distribution: it has to be available The marketing manager also determines the best method of distributing the product. (2) advertising. A government is an organization that has two functions: the provision of goods and services to households and the redistribution of income and wealth.

Consumer sales promotion includes free samples. Publicity. coupons. catalogs. Advertising. involve activities or materials used to create sales for goods or services. contests. non-personal communication of information paid for by an identified sponsor such as an individual or an organization. and benefits. Non-personal communication of information that is not for by an individual or organization. radio.Promotion educates customers about the product's features. Relationship marketing 27 . direct mail. special purchase prices. Promotional activities: Personal selling: Personal communication of information to unselfishly persuade a prospective customer to buy something. Modes of advertising include television. Information appears in media such as television. radio.a good. tells them where to buy it. and makes them aware of its price versus value. service. and demonstrations to consumers. and free merchandise. Trade sales promotion encourages wholesalers and retailers to purchase and to sell aggressively using devices such sales contests. and newspapers. or something else. Sales promotion. advantages. idea. and newspapers.that satisfies an individual’s needs. Two types of sales promotion are consumer and trade sales promotion . The marketing manager determines what proportion of the firm's budget will be allocating to each product and how much emphasis on each of the promotional variables will be give to each product. displays.

and (3) the importance of personal selling in the marketing mix. Thus. 28 . distribution. Firms use salespeople in many ways. price. This helps determine (1) sales force objective. in terms of cost and results? 3. and service to achieve this goal.will be necessary? 4.allocated to sales force activities. compared to advertising and other sales promotion methods. and the firm’s product offerings.Is the sales force the best marketing tool.for example. Can the firm gain strength relative to its competition with its sales force? The answers to these questions come largely form an analysis of competition. The emphasis is shifting from selling customer today to creating customers for tomorrow. the target markets. promotions. business is thinking more long term than short term. Organizations use combinations of product. Relationship marketing is based on the idea that important customers need continuous attention. technical assistance. What type of sales activities. Relationship marketing is the creation of customer loyalty. How much selling effort is necessary to gain and hold customers? 2. A major issue in an organization’s relationship marketing program is the role of the sales force. these four basic questions are guidelines that define the role of the sales force: 1.(2) the level of resourcessuch as personnel and money. frequent or infrequent sales calls.Organizations today have targeted new and present customers. However.

Chapter 3 Ethics First Then Customer relationships 29 .

it means distinguishing right from wrong and doing right. Managers. Community. * Management’s social responsibilities The concept of corporate social responsibility is easy to understand. Suppliers 30 .Chapter 3 Ethics First Then Customer relationships Ethics First….Then Customer Relationships The Organization’s Environment is a major influence on how the firm sells its products. Owners. price. The formal definition of social responsibility is management’s obligation to make choices and take actions that contribute to the welfare and interest of society as well as to those of the organization. ethical. and legal (SEL) influences and considerations surround the firm's product. Organizational Stakeholders The stakeholders are any groups inside or outside the organization's that has a stake in the organization’s performance. Employees. Major stakeholders in the organization’s performance (CCC GOMES) Customer. Creditors. and promotion. Each stakeholder has a different interest in the organization. Government. place. Social.

and (4) discretionary. Economic Responsibilities ( be profitable) The business institution is economic unit of society. what are its main responsibilities to them? Companies have four types of responsibilities: (1) economic. organizational decision makers should act with equity and fairness. law. (3) ethical. Discretionary responsibilities Discretionary responsibility is purely voluntary and guided by a company's desire to make social contributions not mandated by economics. Ethical responsibilities Ethical responsibilities include behaviors that not necessarily codified into low and may serve the corporation’s direct economic interest. Its responsibility to produce the goods and services that society wants and to maximize profits for its owners and shareholders Legal responsibilities All modern societies lay down ground rules. Organizations expected to fulfill their economic goals within the legal framework. or ethics. Legal responsibility defines what society deems as important with respect to appropriate corporate behavior. Discretionary activities include generous philanthropic contributions that offer no monetary return to the company and not expected. laws. 31 . (2) legal. and regulations that organizations expected to follow. To be ethical.The organization’s main responsibilities Once a company is aware of its stakeholders.

Working to establish industry-wide standards and self. How to demonstrate social responsibility A corporation can demonstrate social responsibility in numerous ways.Discretionary responsibility is the highest criterion of social responsibility. particularly regarding their ethical conduct What influences ethical behavior? Organizations are composed of individuals. including these: 1. and discretionary responsibilities to stakeholders are important concerns organizations must face. Striving to make profits on an ongoing basis Economic. Taking needed public stands on social issues 10. Establishing and enforcing a corporate code of conduct 9. legal. Societies is demanding more responsible actions of organizations. Monitoring the changing social environment 8. Getting involved in appropriate social programs 6. Helping correct environmental problems 7. ethical. These individuals’ morals and ethical values help shape those of the organization. Taking corrective action before it is required 2.regulation 4. Publicly admitting mistakes 5. Working with affected constituents to resolve mutual problems 3. because it goes beyond societal expectations to contribute to the community's welfare. 32 .

These beliefs direct our daily decisions. two major influences on the ethical behavior of sales personnel are employees and the organization itself. such as family. This individual would break moral and legal laws. employer. an individual acts in his or her own best interest and thus follows rules to avoid punishment or receive rewards. Thus. At the conventional moral development level. boss. and upholds moral and legal laws. salesperson at this level might ask. and ethics regardless of punishments or majority opinion. At the pre-conventional moral development level. especially those in top management positions. The levels of moral development Level one: pre-conventional. A salesperson at this level might ask. an individual lives by an internal set of morals. In making an ethical or moral decision. At the principle moral development level. 33 . Level Three: principled. bring certain beliefs about the world to a job.” What am I legally required to do?” when making an ethical or moral decision. friends. an individual conforms to the expectations of others. values.” what can I get away with?” Level Two: Conventional. Employees and managers alike.Critical to making decisions in an ethical manner is the individual integrity of the organization’s managers. or society.

What is ethical behavior? Ethical behavior refers to treating others fairly. This person follows the golden rule. and it is estimated that less than 20 percent of individuals reach level three. thereby eliminating the need foe additional laws governing right and wrong. as well as in general.The individual would disobey Orders. Ethics set standards for what is good or bad in conduct and decisions making. it must be ethical. When making an ethical or moral decision a salesperson at this level might ask” What is the right thing to do? The majority of sales personnel. a few individuals are at level one. * Management's Ethical Responsibilities Ethics are the codes of moral principles and values that govern the behaviors of a person or a group with respect to what is right or wrong. it refers to: - Being honest and truthful Maintaining confidence and trust Following the rules Conducting yourself in the proper manner 34 . and Consequences to follow what he or she believes is right. Companies can use code of ethics and their corporate culture to govern behavior. Many companies and their sales personnel get into trouble by making the mistaken assumption that if it's not illegal. However. Specifically. Laws. operate at the conventional level.

or leaving the organization. carefully trained. and given important responsibility. Ethics in dealing with salespeople Sales managers have both social and ethical responsibilities to sales personnel. Many sales practices are in a gray area somewhere between completely ethical and completely unethical. They are recruited. 35 . They represent a large financial investment and must be treated in a professional manner. Salespeople are a valuable resource. The company may place managers and /or salespeople in positions that force them to choose among compromising their ethics. disagreements and dilemmas about proper behavior often occur. An ethical dilemma arises in a situation when each alternative choice or behavior has some undesirable elements due to potentially negative ethical or personal consequences.- Treating others fairly Demonstrating loyalty to company and associates Caring your share of the work and responsibilities with most effort What is an ethical dilemma? Because ethical standards are not classified. not doing what is required. The situations arise wherein it is difficult to say whether a sales practice is ethical or unethical.

The manager who shows a sincere. Sick leave and workers’ compensation often cover expenses until the salesperson recovers. I don’t want to hart his future. they treated the salespeople unprofeesionally. managers should set realistic and obtainable goals. the salesperson is taken out of the territory. 1.Five ethical considerations sales managers face the level of sales pressure to place on a salesperson. 2. 36 . To tell the truth Do you tell the truth when you fire a salesperson? One manager put it this way: I feel he can do a good job for another company. Instead. 3. 4. Level of sales pressure What is acceptable level of pressure to place on salespeople? Some managers motivate their people to produce at high levels without applying pressure whereas others place tremendous pressure on salespeople to attain sales beyond quotas. It would have been better for managers of these salesperson to go to their hometowns and explain the changes personally. Decisions affecting territory Companies must deal with their employees in a fair and straightforward manner. personal interest in helping the ill salesperson greatly contributes to the person’s chances recovery. The ill salesperson Once the illness has a negative effect on business.

This makes recruitment and selection more effective and less frequent. Employee rights are rights desired by employees regarding their job security and their treatment by employers while on the job.5. moonlight. .Avoiding costly back-pay awards and fines . Companies must recognize these important strategic purposes served by respecting employee rights: .Providing a high quality of work life Attracting and retaining good sales personnel. irrespective of whether those rights are currently protected by law or collective bargaining agreements of labor unions. Employee rights The sales manager must be current on ethical and legal considerations regarding employee right and must develop strategies for the organization in addressing those rights. .Misusing company assets 37 .Establishing a match between employee rights and obligations and employer rights and obligations Salespeople’s ethics in dealing with their employers Both salespeople and sales managers may occasionally misuse company assets. Such unethical practices can affect co-workers and need to be prevented before they occur. or cheat.

The salesperson also may overload the customer to win the contest.perhaps on company time. expense accounts.Affecting other salespeople Often. these guidelines thoroughly discuss business conduct and clearly state what is proper 38 . Ethics in dealing with customers Ethical policies called business conduct guidelines. samples. and takes the organization’s customer records to use for his or her or a future employer’s benefit. and damaged-merchandise credits. the unethical practices of one salesperson can affect other salespeople within the company.Moonlighting Salespeople are not closely supervised and.Technology theft A salesperson or sales manager quits. . . The customer holds the merchandise until payment is due and then returns it to the company after the contest is over. consequently. Someone who cheats in winning a contest is taking money and prizes from other salespeople. . . All can be used for personal gain. A salesperson also may not split commissions with co-workers or may take customers away from co-workers. they may be tempted to take a second job.Company assets most often misused are automobile. or is fired.Cheating A salesperson may not play fair in contests.

and sales organizations may create specific business conduct guideline to deal with them.Price discrimination Some customers may receive price reductions. 39 . we all know that salespeople that sometimes oversell. . exclusive dealership.conduct and how to report improper conduct and how to report improper conduct. Numerous ethical situations may arise in dealing with customers. All sales personnel review them and even sign a statement that they understand the guidelines. . even casual misstatements by salespeople can put a company on the wrong side of the law.Misrepresentation Today. and support while others do not. . Some common problems sales personnel face include bribes.Bribes A salesperson may attempt to bribe a buyer by offering money. However. reciprocity. and sales restrictions. promotional allowances. misrepresentation. price discrimination. entertainment. They exaggerate the capabilities of their products or services and sometimes make false statements just to close a sale. and travel opportunities. Many large companies have taken steps to control giving and receiving gifts. tie-in sales. gifts. Most salespeople are unaware that they assume legal obligations -with accompanying risks and responsibilities – every time they approach a customer.

. there is legislation.Exclusive dealership When a contact requires that a wholesaler or retailer purchase products from one manufacturer.Sales restrictions To protect customers against the sometimes unethical sales activities of door-to-door salespeople. Price discrimination refers to selling the same quantity of the same product to different buyers at different prices. This can be illegal if it injures or reduces competition. it is an exclusive dealership. The ones that don’t cannot be defined by geographic location or culture. a buyer may be required to buy other.Reciprocity Reciprocity refers to buying a product from someone if the person or organization agrees to buy from you.Individual salespeople or managers may practice price discrimination to improve sales.Tie-in sales To buy a particular line of merchandise. 40 . Ethics relating to employees and community are often more difficult to understand. . This is called a tie-in sale. . It is certainly unethical and no way to treat customers. . unwanted products. The international side of ethics The vast majority of international companies you will deal with have high ethical standards.

We should treat our international community and personnel with the same respect. (3) establishing and following a code of ethics.Business ethics can be influenced by an employee’s superior and by the company environment. some managers lower their ethical standards to meet job goals Managers are aware of unethical practices in their industry and company ranging from price discrimination to hiring discrimination. - - . Management methods for helping organizations to be more responsive include (1) top management taking the lead.(4) creating ethical structures. Organizations are concerned about how to improve their social responsiveness and ethical climate. A manager of surveys to determine managers’ views of business ethics have found the following: - All managers feel they face ethical problems Most managers feel they and their employers should be more ethical Managers are more ethical with their friends than with people they do not know Even though they want to be more ethical. (5) formally encouraging whistle – 41 . (2) carefully selecting leaders. All we can do in such cases is to lead by example.We are confronted with situations that seem strange and unfair. Managing sales ethics Over the years. Managers must take active steps to ensure that the company stays on ethical ground.

It states those values or behaviors that expected and those that are not tolerated. without top management support. (7) establishing . Others will follow their lead.blowing.Leader selection is important It is critical to carefully choose managers. . or the president should clearly champion the efforts for ethical conduct. define fundamental values. Principal-based statement are designed to affect corporate culture. and control systems. quality of products. . and values should assume leadership positions. standards.Establish a code of ethics A code of ethics is formal statement of the company’s values concerning ethics and social issues. there is little assurance that code will be followed. and contain general language about company responsibilities. and treatment of employees.(6) creating an ethical sales climate. only people who have highest level of integrity.Follow the leader The organization’s chief executive officer. These values and behaviors must be backed by management’s action. The two types of code of ethics are principal-based statements and policy-based statements. 42 .

43 . The committee provides rulings on questionable ethical issues. This responsibility is essential if the organization is to directly influence employee behavior. All employees who observe or become aware of criminal practices or unethical behavior should be encouraged to report the incident to their superiors. This situations include marketing practice. political gifts. Companies can provide a mechanism for whistle-blowing as a matter of policy. . such as an ethics committee. immoral. or illegitimate practices on the employer’s part is called whistle-blowing. conflicts of interest.blowing Employee disclosure of illegal. Policy-based statements generally outline the procedures to be used in specific ethical situations. and equal opportunities.Encourage whistle. An ethics ombudsman is an official given the responsibility of corporate conscience who hears and investigates ethics complaints and informs top management of potential ethics issues. or to an appropriate unit of the organization.Create ethical structures An ethics committee is a group of executives appointed to oversee company ethics. Formalized procedures for complaining can encourage honest employees to report questionable incidents.General statements of principle are often called corporate credos. . to a higher level of management. observance of laws. proprietary information. The ethical committee assumes responsibility for disciplining wrongdoers.

Overall. A stronger level of ethical awareness can be achieved during sales meetings. management must make a concerted effort to create an ethical climate within the workplace to best serve customer and organizational goals. falsify reports. Methods should be employed to determine whether salespeople give bribes. and when contacting customers while working with salespeople.. training sessions. 44 . They should publicize the code and their opposition to unethical sales practices to their subordinate managers and their salespeople.Establish control system Control systems must be established. Sales managers must help develop and support their code of ethics. . or pad expenses.Create an ethical sales climate The single most important factor in improving the climate for ethical behavior in a sales force is the action taken by top-level managers.

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