1. Why is it important to build customer relationships?

a) To increase customer turnover

b) To lower customer feedback
c) To improve employee morale
d) All of the above
2. What can a focus on long-term customer relationships lead to?
a) Immediate profits
b) Customer turnover
c) Increased sales
d) Short-term satisfaction
3. What is one key factor in building trust in customer
relationships?
a) High product prices
b) Dependability
c) Frequent advertising
d) High employee turnover
4. Which of the following is NOT a component of trust in
customer relationships?
a) Competence
b) Customer orientation
c) Honesty
d) Aggressiveness
5. What stage in relationship development involves a promise to
work together over multiple transactions?
a) Awareness
b) Expansion
c) Commitment
d) Dissolution
6. What type of company prioritizes quick gains over lasting
customer connections?
a) Short-Term Thinking Company
b) Long-Term Thinking Company
c) Customer-Centric Company
d) Both a and b
7. What is the primary benefit of retaining existing customers?
a) Lower customer turnover
b) Reducing customer acquisition costs
c) Immediate profits
d) Focusing on quick gains
8. What is the most cost-effective way to grow a business?
a) Focusing on customer loyalty
b) Acquiring new customers
c) Ignoring customer relationships
d) Reducing employee morale
9. What can satisfied customers become for your business?
a) Detractors
b) Critics
c) Advocates
d) Competitors
9. What can satisfied customers become for your business?
a) Detractors
b) Critics
c) Advocates
d) Competitors
10. What is a crucial element for permission to stay in touch with
customers?
a) Consistent advertising
b) Frequent sales pitches
c) Building trust and providing value
d) Sending spam emails
11. What does a consistent identity in communication help build?
a) Customer turnover
b) Customer trust
c) Employee morale
d) Negative reviews
12. What can long-term customer relationships create?
a) Emotional connections
b) Disinterest
c) Faceless corporations
d) Increased employee turnover
13. How can building customer relationships benefit research and
development?
a) By reducing employee morale
b) By ignoring customer feedback
c) By gaining insights and improving products
d) By lowering customer turnover
14. What can address to negative customer experiences lead to?
a) Increased customer turnover
b) Negative reviews
c) Unhappy employees
d) Brand advocates
15. What is the result of ongoing dialogue with customers?
a) Employee turnover
b) Decreased employee morale
c) Improved customer support
d) Lower customer feedback
16. How do positive customer relationships impact employee
morale?
a) They have no impact on employee morale
b) They lead to higher employee stress
c) They lead to happier employees
d) They increase employee turnover
17. Which type of company focuses on nurturing lasting customer
connections?
a) Short-Term Thinking Company
b) Long-Term Thinking Company
c) Customer-Centric Company
d) Quick Gains Company
18. What is the primary focus of Short-Term Thinking Company?
a) Long-term customer satisfaction
b) Quick profits
c) Building trust
d) Employee empowerment
19. What is the benefit of staying connected with customers,
according to George Farris?
a) Increased customer turnover
b) Decreased sales
c) Increased sales
d) Negative word of mouth
20. What is the best way to save money on customer acquisition
costs?
a) Acquiring new customers frequently
b) Prioritizing post-sale follow-ups
c) Focusing on quick gains
d) Nurturing existing customer relationships
• d 6. a 11. b 16. c
• c 7. b 12. a 17. b
• b 8. a 13. c 18. b
• d 9. c 14. d 19. c
• c 10. c 15. c 20. d
 Marketing Presentation

ETHICAL AND LEGAL

ISSUES IN SELLING
PRESENTED BY: RHONALYN C. PAPA
ETHICS AND
PERSONAL
SELLING
Ethics in personal selling refers to the
guiding principles governing conduct in
sales activities.

Moral Compass: It acts as a moral

compass, determining right from wrong in
sales and customer interactions.
ETHICS AND
PERSONAL
SELLING

"Ethics is what you do when no one is

looking." - George Bernard Shaw
Challenging Scenarios

Should you give an expensive gift to a

buyer?
Challenging Scenarios

Is it acceptable to use high-pressure tactics

when your product is the best for the
consumer's needs?
Challenging Scenarios

Should you sell a product when a better one

exists for the customer?
Challenging Scenarios

Is it ethical to disclose a competitor's

product weaknesses?
Challenging Scenarios

Can you expense a hotel room while

staying at a friend's house on a business
trip?
Importance of Ethics

Ethical considerations are vital in personal

selling to maintain integrity and credibility.

Principles: Uphold honesty, transparency,

and fairness in sales interactions.
Ethical Behavior

Ethical behavior is influenced by

various factors in personal and
professional settings.
Individual Influences

Personal Moral and Ethical

Values
• An individual's ethical
behavior is guided by their
personal moral and ethical
values.
Individual Influences

Foundation for Ethical Conduct

• These internal principles and
beliefs form the foundation
for ethical behavior.
Organizational
Influences
Integrity of Top Management and
Managers
• Ethical climate is impacted
by the integrity and ethical
standards set by leaders.
Organizational
Influences

Leadership's Role
• Leadership's example shapes
the behavior of employees at
all levels.
Combining
Influences

Ethical behavior is a result of the

interplay between individual and
organizational influences.
Impact on Decision-
Making

Ethical behavior guides decision-

making in personal and
professional contexts.
Real-Life Example

Share a real-life case or example

illustrating how personal values
and organizational integrity
influence ethical behavior.
Importance of
Ethical Behavior

Discuss the significance of

ethical behavior in maintaining
trust, reputation, and healthy
work environments.
Legal Considerations
in Sales and Ethical
Issues
Levels of Moral
Development
• Understanding Ethical
Behavior
⚬ Level 1: Principled
⚬ Level 2: Conventional
⚬ Level 3: Pre-conventional
Principled

• Focus on determining what's

right.
• Strong moral compass guides
decisions.
Conventional

• Adherence to legal and

societal norms.
• Legal requirements influence
ethical decisions.
Pre-conventional
• Decision-making influenced
by personal advantage or
avoidance of punishment.
• What can be "got away with"
matters.
What is Ethical
Behavior?
• Being Honest and Truthful
• Maintaining Confidence and Trust
• Following the Rules
• Conducting Yourself Properly
• Treating Others Fairly
• Demonstrating Loyalty
• Carrying Your Share of the Work
Building
Relationships with
Customers

The Foundation of Trust

Deception

Definition: Deliberate
inaccurate information or
lying
Bribes

Bribes: Eroding Trust for a Quick

Sale
• Definition: Payments to
buyers to influence decisions
Kickbacks

Damaging Trust through

Incentives
• Definition: Payments based
on order volume
Ethical Gift-Giving

Ethical Gift-Giving Guidelines

• Motives: To foster a long-term
relationship
• Reciprocity: No expectation of
return
• Policies: Align with your and
customer's policies
• Safe Gifts: Inexpensive items with
company branding
Special Treatments

• Consistency: Maintain
fairness for all customers
Confidential
Information
• Confidential Information:
Protecting Integrity
• Definition: Offering
competitor info for an order
Backdoor Selling

• Backdoor Selling: Respect

Purchasing Policies
⚬ Definition: Bypassing the
purchasing agent's policy
Building
Relationships with
your Company

A Key to Professional
Integrity
Expense
Account
• Ethical Use of Expense Account
⚬ Definition: Resources
provided by the company
Reporting Work-
Time Information
• Accurate Reporting: The Ethical
Imperative
• Purpose: Monitor work activities
Switching Jobs Ethically

PROVIDE AMPLE NOTICE

Importance: Avoid disruptions and lost sales

opportunities.
OFFER ASSISTANCE IN TRANSITION

Professional courtesy to help your successor.

BRAND VISUALS

Benefits: Maintain a positive relationship for

the future.
Professional
Integrity and
Positive Work
Environment
Essential for building trust and
maintaining positive relationships
with your employer.
Building Ethical
Relationships with
Colleagues and
Competitors

Essential for Professional Success

Sexual
Harrassment
• Dealing with Sexual
Harassment
• Definition: Unwelcome
advances, requests, jokes, or
physical conduct
Handling Sexual
Harassment
• Avoid compromising ethics
for a single customer.
• Confront the harasser
directly, asserting your
stance.
• Utilize your company's
harassment policies.
Unethical Behavior
with Colleagues

• Balancing Personal Goals and

Teamwork
Ethical Relationships
with Competitors
Competitor Practices

What NOT to Do
• Making false claims about
competitors' products.
• Engaging in sabotage - unethical
and illegal actions.
• Criticizing competitors' products
or policies - generally ineffective.
Legal Considerations
in Sales

Navigating the Legal Landscape

Navigating the Legal
Landscape

Ensuring Compliance with Laws

and Regulations
Navigating the Legal
Landscape

Ensuring Compliance with Laws

and Regulations
Legal Guidelines in
Selling
• Ensure all product performance
statements are accurate.
• Positive claims must be backed by
evidence.
• Emphasize warnings and instructions.
• Guide customers on proper product use.
• Adapt to customer experience and
knowledge.
Ethical and Legal
Issues in
International Selling

Lubrication vs. Subordination

Payments
• Lubrication: Small payments to
expedite tasks.
• Subordination: Larger sums for
illegal acts.
Cultural Relativism

Understand cultural differences in

ethics.
Legal Issues in Sales

• Sales puffery: Exaggerated product

claims.
⚬ Example: "The best coffee in the
world."
• Misrepresentation
⚬ Misrepresentation: Falsely claiming
a used car is brand new.
Legal Issues in Sales

• Sales puffery: Exaggerated product

claims.
⚬ Example: "The best coffee in the
world."
• Misrepresentation
⚬ Misrepresentation: Falsely claiming
a used car is brand new.
Legal Issues in Sales

• Sales puffery: Exaggerated product

claims.
⚬ Example: "The best coffee in the
world."
• Misrepresentation
⚬ Misrepresentation: Falsely claiming
a used car is brand new.
Unlawful Business
Practices

• Business defamation: Untrue

statements about competitors.
Unlawful Business
Practices

• Business defamation: Untrue

statements about competitors.
Unlawful Business
Practices
• Reciprocity in Business
⚬ Reciprocity is a two-way
commitment.
⚬ Both companies willingly
agree to buy from each other.
⚬ It's illegal if one company
forces the other into the
agreement.
Unlawful Business
Practices

• Understanding Tying Agreements:

A seller offers two products as a
bundle.
• Legal when it's demonstrated they
must be used together for proper
functionality.
Unlawful Business
Practices

• Conspiracy and Collusion in

Sales: Competitors collaborating
on pricing before bidding.
• It can be illegal and lead to
penalties.
Unlawful Business
Practices

• Unlawful Competitor
Interference: Salespeople enticing
a customer to breach a contract.
• This unethical practice can harm
competitors.
Unlawful Business
Practices

• Legal Restrictions on Resellers:

Companies setting a minimum
resale price is illegal.
Unlawful Business
Practices
• Spiffs and Price Discrimination:
Spiffs or push money can be
offered by resellers if approved.
• Price discrimination is acceptable
based on cost or quality
differences.
Complying with
Legal Guidelines

Understanding and adhering to

legal guidelines and principles is
essential for ethical and compliant
sales practices.
“Bago siya - ikaw
muna”
#MAAMRHON