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Selling and sales people

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    Selling and sales people Selling and sales people Document Transcript

    • First PagesFPOc h a p t e r1SELLING AND SALESPEOPLESOME QUESTIONS ANSWERED IN THIS CHAPTER ARE:■ What is selling?■ Why should you learn about selling even if you do notplan to be a salesperson?■ What is the role of personal selling in a firm?■ What are the different types of salespeople?■ What are the rewards of a selling career?1PARTTheFieldofSellingwei8108x_ch01_002-027.indd 2wei8108x_ch01_002-027.indd 2 7/9/08 8:43:46 PM7/9/08 8:43:46 PM
    • First PagesPROFILEI always knew a careerin sales was some-thing I would like. It was the chal-lenge of providing a product to avariety of customers with differentneeds and building genuine rap-port and relationships with eachof them. But, most importantly,the incentives! I am money moti-vated. It is comforting to know thatthe harder I work, the more money Iwill make. I like being in control of mydestiny!Hi, my name is Heather Carr. I am a 2005 Uni-versity of Minnesota Duluth graduate with amarketing major. It was my Fundamentals ofSelling class that confirmed my decision topursue a career in sales. I would be lying if Isaid I didn’t get a knot in my stomach whenDr. Castleberry first explained the sales pitchthat we were expected to present in front ofthe entire class. Just like everyone who hasnever made a cold call or sales pitch before,the unknown was very frightening. Howeverafter just doing it, I found my passion andrealized this was for sure the career for me.In college I was active in a variety of extra-curricular activities, clubs, organizations, andvolunteer events. These experiences demonstratedto recruiters my skills in leadership—the ability tomultitask, prioritize, and juggle a busy workload—and my commitment to achieve team goals.My first position out of college was as a mortgageloan officer at a small brokerage firm in Minneapo-lis. My salary was 100 percent commission with notraining and no leads provided. Basically, I was givena phone and a desk and expected to make money! Itwas a rough road and very stressful, but I instantlylearned the importance of networking in a referral-based business. I joined many chamber of commerceclubs, Rotary clubs, and B&I groups and always hada stack of business cards with me. I never knew whoI was going to meet that might potentially need myservice. I also built reciprocal busi-ness relationships with many real-tors, new home construction builders,divorce attorneys, other loan officers,appraisers, and apartment managers. Itwas my goal to set myself apart from every otherloan officer, think outside the box, and network cre-atively to get my name out there.The real estate–mortgage industry eventually tooka hit. Being proactive, I started interviewing and wasapproached by Career Professionals, a direct hire–permanent placement agency. While assisting me inmy search, it turned the table and asked if I wouldever consider being a recruiter (account executive)for Career Professionals. I said yes! I solicit poten-tial employers that could benefit from utilizing ourservice by showing how we can save them time andmoney. I also sell the free service to job candidates.Qualified candidates are brought in to see whichpositions would match their background, and thenI sell and present the opportunity.I truly enjoy what I do, and it is a very rewardingcareer. I am providing a win-win situation both forthe employer and the candidate. Our target mar-ket is the entry level, so I help candidates rangingfrom a fresh college graduate with no experience tosomeone with up to five years of postcollege experi-ence. We also act as their career coach throughoutthe entire interview process. We provide résumésuggestions, give pointers on what to say and notto say during interviews, and offer advice on howto solidify an offer with a company. It is a verythorough and extremely helpful service. I hope youenjoy sales as much as I do.Visit our Web site at www.gocpi.com.PROFILE“I truly enjoy what I do and it is a veryrewarding career. I am providing a win-win situation both for the employer and thecandidate.”Heather Carr, Career Professionalswei8108x_ch01_002-027.indd 3wei8108x_ch01_002-027.indd 3 7/9/08 8:43:46 PM7/9/08 8:43:46 PMThe distancebetween thelast text andtrim is 1p3.Is it ok?
    • First Pages4 Part 1 The Field of SellingWHY LEARN ABOUT PERSONAL •What’s the first thing that pops into your mind when you hear the phrase: “per-sonal selling”? Do you conjure up images of fast-talking, nonlistening, pushyguys who won’t take no for an answer? Does the cartoon in Exhibit 1.1 resonatewith your idea of a seller? Maybe your definition would be something like this:“Personal selling is the craft of persuading people to buy what they do not wantand do not need for more than it is worth.”1If so, it’s not all that surprising, sincethat is exactly how television and the movies have represented salespeople forover 100 years.2If that is your view of selling, we encourage you to read and study this bookcarefully. You’re going to learn things about selling that you never knew before.Let’s start with a more accurate definition of a professional salesperson, whichis quite different from the one just mentioned. Personal selling is a person-to-person business activity in which a salesperson uncovers and satisfies the needs ofa buyer to the mutual, long-term benefit of both parties. This definition stressesthat selling is more than making a sale and getting an order. Selling involves help-ing customers identify problems, offering information about potential solutions,and providing after-the-sale service to ensure long-term satisfaction. The phraseoften used to describe this is customer-centric, which means making the customerthe very center of everything that the salesperson does.3Quite a bit different fromthe image of the seller in the cartoon, isn’t it?THE FAR SIDE By GARY LARSONRalph Harrison, king of salespersonsTheFarSidebyGaryLarsonc1990FarWorks,Inc.AllRightsReserved.TheFarSideandtheLarsonsignatureareregisteredtrademarksofFarWorks,Inc.Usedwithpermission.1990 FarWorks, Inc. All Rights Reserved/Dist. by Creators SyndicateRCRRRExhibit 1.1wei8108x_ch01_002-027.indd 4wei8108x_ch01_002-027.indd 4 7/9/08 8:43:47 PM7/9/08 8:43:47 PM
    • First PagesChapter 1 Selling and Salespeople 5The days of salespeople dragging around briefcases overstuffed with brochuresand knocking on every door they can find to drum up interest in their companies’products are waning. Buyers simply don’t tolerate such salespeople. Buying firmstoday compete in global markets, using sophisticated communication, transpor-tation, and management information systems. And these sophisticated buyers aredemanding 24/7 service (which means they expect a selling firm to be availablefor them 24 hours a day, 7 days a week). Today’s professional salespeople coordi-nate the resources of their companies to help customers solve complex problems.They use e-mail and videoconferencing to communicate with customers and sup-port staff around the world; download information from their firms’ data ware-houses into laptop computers so they can know more about their prospects andcustomers; and develop client-specific multimedia presentations to illustrate thebenefits of their firms’ products and services. In all of this, the seller’s goal is toadd value, which is the total benefit that the seller’s products and services provideto the buyer. When describing this to prospects, the seller often refers to the col-lection of buyer-specific benefits as the value proposition. A recent study foundthat 70 percent of Fortune 1,000 firms are “distinguishing customers by valueand allocating marketing budgets based on that unique value.”4This text discusses personal selling as a business activity undertaken by sales-people. But keep in mind that the principles of selling are useful to everyone, notjust people with the title of salesperson. Developing mutually beneficial, long-term relationships is vital to all of us. In fact, the author team has taught theprinciples in this book to many groups of nonsalespeople. Let’s look at someexamples of how nonsalespeople sell ideas.As a college student, you might use selling techniques when asking anotherstudent to go out on a date or to ask a professor to let you enroll in a coursethat is closed out. When you near graduation, you will certainly confront a veryimportant sales job: selling yourself to an employer.To get a job after graduation, you will go through the same steps used in thesales process (discussed in Part 3, Chapters 7 through 14). First you will iden-tify some potential employers (customers). On the basis of an analysis of eachemployer’s needs, you will develop a presentation (as well as answers to questionsyou might encounter) to demonstrate your ability to satisfy those needs. Duringthe interview you will listen to what the recruiter says, ask and answer questions,and perhaps alter your presentation based on the new information you receiveduring the interview. At some point you might negotiate with the employer overstarting salary or other issues. Eventually you will try to secure a commitmentfrom the employer to hire you. This process is selling at a very personal level.Chapter 17 reviews the steps you need to undertake to get a sales job.Nonsalespeople in business use selling principles all the time. Engineers con-vince managers to support their R&D projects; industrial relations executivesuse selling approaches when negotiating with unions; and aspiring managementtrainees sell themselves to associates, superiors, and subordinates to get raisesand promotions.It’s not just businesspeople who practice the art of selling. Presidents encour-age politicians in Congress to support certain programs; charities solicit con-tributions and volunteers to run organizations; scientists try to convincefoundations and government agencies to fund research; and doctors try to gettheir patients to adopt more healthful lifestyles. People skilled at selling value,influencing others, and developing long-term relationships are usually leaders inour society.5wei8108x_ch01_002-027.indd 5wei8108x_ch01_002-027.indd 5 7/9/08 8:43:48 PM7/9/08 8:43:48 PM
    • First Pages6 Part 1 The Field of SellingCREATING VALUE: THE ROLE OF SALESPEOPLE INBUSINESS •Firms exist only when their products and services are sold. And salespeople sellby creating value for their customers.6It takes skill for salespeople to uncoverexactly what a customer is looking for and how a potential product or servicecould add such value. Since this is so critical, this topic is covered in great detailin many chapters in this book.Firms have many options in how they can approach customers as they addvalue, and the various methods are sometimes called go-to-market strategies.Strategies include selling through the Internet, field sales representatives, businesspartners, resellers, manufacturer agents, franchises, telemarketers, and others.Selling firms determine which strategy to use for each customer based on suchfactors as the estimated value of the customer over the lifetime of the relation-ship, often called lifetime customer value. (Because this concept is so important,it is more fully discussed in Chapter 2.) Organizations whose go-to-market strat-egies rely heavily on salespeople are called sales-force intensive organizations.Naturally, some firms use several strategies at the same time, and this is calledmultichannel strategy. For example, Motorola uses the Internet for very smallcustomers, telemarketers for midsized customers, and a field sales force for large,important customers.Another way to view the role of salespeople in business is to realize that theyare one element in the firms’ marketing communications program, as Exhibit 1.2indicates. Advertising uses impersonal mass media such as newspapers and TV togive information to customers, while sales promotions offer incentives to custom-ers to purchase products during a specific period. Salespeople provide paid per-sonal communication to customers, whereas publicity is communication throughsignificant unpaid presentations about the firm (usually a news story). Finally,communication also occurs at no cost through word of mouth (communicationamong buyers about the selling firm).Each of the communication methods in Exhibit 1.2 has strengths and weak-nesses. For example, firms have more control when using paid versus unpaidmethods. However, because publicity and word of mouth are communicatedby independent sources, their information is usually perceived as more credibleImpersonalPaidUnpaidPersonalPersonal selling/e-mailWord of mouthAdvertising/sales promotionPublicityBig Election Todayhttp://www.newsforyou.comWeb News!Exhibit 1.2CommunicationMethodswei8108x_ch01_002-027.indd 6wei8108x_ch01_002-027.indd 6 7/9/08 8:43:48 PM7/9/08 8:43:48 PM
    • First PagesChapter 1 Selling and Salespeople 7than information by paid communication sources. When using advertising,Internet sites, and sales promotions, companies can determine the message’sexact content and the time of its delivery. They have less control over the com-munication delivered by salespeople and have very little control over the con-tent or timing of publicity and word-of-mouth communication. Personal sellingcomes out on top when it comes to flexibility because salespeople can talk witheach customer, discover the customer’s specific needs, and develop unique pre-sentations for that customer. Not surprisingly, personal selling is the most costlymethod of communication. The average cost of a sales call can be 10,000 timesmore expensive than exposing that single customer to a newspaper, radio, orTV ad.Because each communication vehicle in Exhibit 1.2 has strengths and weak-nesses, firms often use integrated marketing communications, which are com-munication programs that coordinate the use of various vehicles to maximize thetotal impact of the program on customers.7For example, when Stouffer’s introduced its new Spa Cuisine Classics, din-ners that were inspired by chefs from wellness spas across the country, it usedintegrated marketing communications. Salespeople called on supermarkets andwholesale clubs. Advertising was created to generate awareness in consumers’minds. Coupons were offered to consumers to create interest and spur morerapid sales. Taste testings in stores were offered to build excitement and word ofmouth. Publicity was generated that focused on the dinners’ balance of great tastecombined with the nutrition of whole grains.Many students think—incorrectly—that advertising is the most important partof a firm’s promotion program. However, industrial companies place far moreemphasis on personal selling than on advertising.8Even in consumer productfirms such as Procter & Gamble which spends more than $8 billion annually onadvertising, personal selling plays a critical role.Students sometimes also have the mistaken notion that the growing world ofe-commerce is causing the demise of salespeople. Studies have shown, however,that customers still want to interact with a salesperson and value their interac-tions with salespeople. As you will learn as you read this book, salespeople addvalue that the buyer can’t get by simply relying on e-commerce.WHAT DO SALESPEOPLE DO •The activities of salespeople depend on the type of selling job they choose. Theresponsibilities of salespeople selling financial services for General Electric dif-fer greatly from those of salespeople selling pharmaceuticals for Merck or paperproducts for James River. Salespeople often have multiple roles to play, includingclient relationship manager, account team manager, vendor and channel manager,and information provider for their firms.CLIENT RELATIONSHIP MANAGERSales jobs involve prospecting for new cus-tomers, making sales presentations, dem-onstrating products, negotiating price anddelivery terms, writing orders, and increas-ing sales to existing customers. But thesesales-generating activities (discussed inChapters 7 through 14) are only part of thejob. As Exhibit 1.3 indicates, salespeoplespend less than 35 percent of their timeSales reps help withinstallations to ensureproper use.wei8108x_ch01_002-027.indd 7wei8108x_ch01_002-027.indd 7 7/9/08 8:43:49 PM7/9/08 8:43:49 PM
    • First Pages8 Part 1 The Field of Sellingon-site in a face-to-face meeting with customers and prospects. It is interestingto note that for world-class firms, that percentage rises to 40 percent, while forpoorly performing firms, the percentage drops to just 20 percent.9The rest ofsalespeople’s time is spent in meetings, working with support people in their com-panies (internal selling), traveling, waiting for a sales interview, doing paperwork,and servicing customers.Rather than buying from the lowest-cost suppliers, many buyers now arebuilding competitive advantages by developing and maintaining close, coopera-tive relationships with a select set of suppliers, and salespeople play a key role inthese relationships.10When salespeople fail in maintaining these relationships,the results are catastrophic, as From the Buyer’s Seat 1.1 illustrates.Exhibit 1.3How Salespeople SpendTheir Time Each WeekHowsalespeople spendtheir time eachweekOthersellingcontacts(22%)On-sitecontacts(33%)Travel time(15–20%)Administrativetasks(10–20%)Nonselling timeSelling timeServicing theaccount(10–20%)Source: Adapted from the Alexander Group, Inc., SalesTime Maker, Software Services, February 8, 2002, tools.saleslobby.com/perfmgmt/2001_stm_presentation.pdf.1.1From the BUYER’S SEATWHEN YOU LOSE TRUST, IT CAN REALLY COST YOUWe’re a chain of pizza parlors spread across five states.About 18 years ago there were only four Sammy’s Pizzaestablishments, and about 35–40 percent of all our costswere for cheese. During that time we only worked with onevendor for just about everything, rather than working withmultiple reps and trying to save a dollar here or there.We had been associated with this one vendor for quitesome time and would have remained if the rep hadn’tburnt our relationship. It turns out that my father was sotrusting of this rep that he wouldn’t even check the inven-tory documents listing pricing information. My fatherwould just sign the check and move on—he was too trust-ing. We later came to find out that Jason, the young manrepresenting this company, was robbing us right under-neath our nose. He knew how trusting my father was andtook advantage of the situation for quite some time beforebeing caught.So we fired him and discontinued our contract with thatcompany. Today we have 16 more stores in four newstates. The company that Jason once worked for is still try-ing to work their way back into our business. The thingsit has offered us have been unreal, but we will never goback with that company no matter how good the dealssounds, or how nice the gifts are that periodically showup at our downtown branch.Once you have burnt a bridge with the Perrella family,it’s not easy to rebuild that trust.Source: Terry Perrella, president and owner of Sammy’sUnited. Personal correspondence. Used with permission.✺wei8108x_ch01_002-027.indd 8wei8108x_ch01_002-027.indd 8 7/9/08 8:43:52 PM7/9/08 8:43:52 PM
    • First PagesChapter 1 Selling and Salespeople 9The salesperson’s job does not end when the customer places an order. Salesrepresentatives must make sure customers get the benefits they expect from theproduct. Thus salespeople work with other company employees to ensure thatdeliveries are made on time, equipment is properly installed, operators are trainedto use the equipment, and questions or complaints are resolved quickly.11Progres-sive selling firms like Standard Register and Johnson & Johnson’s Ortho-ClinicalDiagnostics are beginning to implement six sigma selling programs, which aredesigned to reduce errors introduced by the selling system to practically zero.12Chapter 14 provides more insights on developing on-going relationships throughcustomer services.ACCOUNT TEAM MANAGERSalespeople also coordinate the activities within their firms to solve customerproblems.13Many sales situations call for team selling, and at least one studyshows that salespeople who attempt to go it alone (sometimes called being “lonewolves”) perform poorly, have lower job satisfaction, and have higher turn-over intentions.14An example of team selling is when Dick Holder, president ofReynolds Metal Company, spent five years “selling” Campbell Soup Companyon using aluminum cans for its tomato juice products. He coordinated a team ofgraphic designers, marketing people, and engineers that educated and convincedCampbell to use a packaging material it had never used before. Approaches forimproving efficiency by working closely with other functional units in the firmare fully discussed in Chapter 16.VENDOR AND CHANNEL MANAGERSometimes it is necessary to interact with other partners and vendors to meeta customer’s needs, and salespeople are often the key managers of these manyrelationships. For example, if a customer buys a new jet from Boeing BusinessJets, with features that will be added by a third-party vendor, the salespersonwill need to coordinate the efforts of the vendor with Boeing. Glenn Price, whosells life and disability insurance with Northwestern Mutual, realizes the impor-tance of working with channel partners. “Today, the financial services industryis very complex, as are the needs of my clients, and I can’t be all things to allpeople. I can, however, create a team of specialists. For areas outside of myexpertise all I have to do is identify which specialists are needed and bring themin. This approach allows me to operate at maximum efficiency while provid-ing the highest level of expertise and service to myclients.”15INFORMATION PROVIDER TO THEIR FIRMSalespeople are the eyes and ears of the company inthe marketplace. For example, when Bob Meyer, asalesperson at Ballard Medical Products, was dem-onstrating a medical device, a surgeon commentedthat he could not tell whether the device was work-ing properly because the tube was opaque. Meyerrelayed this information to the vice president ofengineering, and the product was redesigned, sub-stituting a clear tube for the opaque tube.To truly have effective impact on their organiza-tion, salespeople need to be skillful at disseminatingthe knowledge they have acquired from customers toother people in their companies.16In their reportingSalespeople share important market information withtheir boss and others in the firm.Mark Richards/Photoeditwei8108x_ch01_002-027.indd 9wei8108x_ch01_002-027.indd 9 7/9/08 8:43:52 PM7/9/08 8:43:52 PM
    • First Pages10 Part 1 The Field of Sellingactivities, salespeople provide information to their firms about expenses, callsmade, future calls scheduled, sales forecasts, competitor activities, business con-ditions, and unsatisfied customer needs. Much of this information is now trans-mitted electronically to the company, its salespeople, and its customers and iscontained in a customer relationship management (CRM) system.17For example,each night salespeople at Curtin Matheson Scientific, a distributor of clinical andlaboratory supplies in Baton Rouge, Louisiana, enter call report information anddownload all the ordering and shipping information for their customers from thecompany mainframe to their laptop computers. Chapter 16 discusses the relation-ship between salespeople and their companies in great detail.TYPES OF SALESPEOPLE •Almost everyone is familiar with people who sell products and services to con-sumers in retail outlets. Behind these retail salespeople is an army of salespeopleworking for commercial firms. Consider an MP3 player you might purchase in astore. To make the player, the manufacturer bought processed material, such asplastic and electronic components, from various salespeople. In addition, it pur-chased capital equipment from other salespeople to mold the plastic, assemble thecomponents, and test the player. Finally, the player manufacturer bought servicessuch as an employment agency to hire people and an accounting firm to auditthe company’s financial statements. The manufacturer’s salespeople then sold theplayers to a wholesaler. The wholesaler purchased transportation services andwarehouse space from other salespeople. Then the wholesaler’s salespeople soldthe players to a retailer.SELLING AND DISTRIBUTION CHANNELSAs the MP3 player example shows, salespeople work for different types of firmsand call on different types of customers. These differences in sales positions comefrom the many roles salespeople play in a firm’s distribution channel. A distribu-tion channel is a set of people and organizations responsible for the flow of prod-ucts and services from the producer to the ultimate user. Exhibit 1.4 shows theprincipal types of distribution channels used for business-to-business and con-sumer products and the varied roles salespeople play.Business-to-Business ChannelsThe two main channels for producers and providers of business-to-business, orindustrial, products and services are (1) direct sales to a business customer and(2) sales through distributors. In the direct channel, salespeople working for themanufacturer call directly on other manufacturers. For example, Nucor sales-people sell steel directly to automobile manufacturers, Dow Chemical salespeoplesell plastics directly to toy manufacturers, and Nielsen salespeople sell marketingresearch services directly to business customers.In the distributor channel the manufacturer employs salespeople to sell to dis-tributors. These salespeople are referred to as trade salespeople because they sellto firms that resell the products (i.e., they sell to the trade) rather than using themwithin the firm. Distributor salespeople sell products made by a number of manu-facturers to businesses. For example, some Intel salespeople sell microprocessorsto distributors such as Arrow Electronics, and Arrow salespeople then resell themicroprocessors and other electronic components to customers such as HP.Many firms use more than one channel of distribution and thus employ severaltypes of salespeople. For example, Dow Chemical has trade salespeople who callon distributors as well as direct salespeople who call on large companies.wei8108x_ch01_002-027.indd 10wei8108x_ch01_002-027.indd 10 7/9/08 8:43:53 PM7/9/08 8:43:53 PM
    • First PagesChapter 1 Selling and Salespeople 11In the second business-to-business channel (see Exhibit 1.4), a missionarysalesperson is employed. Missionary salespeople work for a manufacturer andpromote the manufacturer’s products to other firms. However, those firms buythe products from distributors or other manufacturers, not directly from thesalesperson’s firm. For example, sales representatives at Driltech, a manufacturerof mining equipment, call on mine owners to promote their products. The mines,however, place orders for drills with the local Driltech distributor rather thanwith Driltech directly. Normally missionary and local distributor salespeoplework together to build relationships with customers.Exhibit 1.4Sales Jobs and theDistribution ChannelDistributorManufacturer2Business customerDistributorsalespersonTradesalespersonMissionarysalespersonBusiness-to-Business ChannelsConsumer ChannelsManufactureror Service Provider3ConsumerDirect salespersonBusiness customerIndustrialsalespersonManufactureror Service Provider1Manufacturer4ConsumerTradesalespersonRetailerRetailsalespersonManufacturer5ConsumerTradesalespersonRetailerDistributorTradesalespersonRetailsales-personwei8108x_ch01_002-027.indd 11wei8108x_ch01_002-027.indd 11 7/9/08 8:43:53 PM7/9/08 8:43:53 PM
    • First Pages12 Part 1 The Field of SellingFrequently missionary salespeople call on people who influence a buyingdecision but do not actually place the order. For example, Du Pont sales represen-tatives call on Liz Claiborne and other clothing designers to encourage them todesign garments made with Teflon, and Merck sales representatives call on physi-cians to encourage them to prescribe Merck pharmaceutical products.Consumer ChannelsThe remaining channels shown in Exhibit 1.4 are used by producers and provid-ers of consumer products and services. The third channel shows a firm, such asState Farm Insurance, whose salespeople sell insurance directly to consumers.The fourth and fifth channels show manufacturers that employ trade salespeopleto sell to either retailers or distributors. For example, Revlon uses the fourthchannel when its salespeople sell directly to Wal-Mart. However, Revlon uses thefifth channel to sell to small, owner-operated stores through distributors.Some of the salespeople shown in Exhibit 1.4 may be manufacturers’ agents.Manufacturers’ agents are independent businesspeople who are paid a commis-sion by a manufacturer for all products or services sold. Unlike distributors andretailers, agents never own the products. They simply perform the selling activi-ties and then transmit the orders to the manufacturers.DESCRIBING SALES JOBSDescriptions of sales jobs often focus on six factors:181. The stage of the buyer-seller relationship.2. The salesperson’s role.3. Importance of the customer’s purchase decision.4. Location of salesperson-customer contact.5. The nature of the offering sold by the salesperson.6. The salesperson’s role in securing customer commitment.Stage of Buyer-Seller Relationship: New or ContinuingSome sales jobs emphasize finding and selling to new customers. Selling to pros-pects requires different skills from selling to existing customers. To convince pros-pects to purchase a product they have never used before, salespeople need to beespecially self-confident and be able to deal with the inevitable rejections thatoccur when making initial contacts. On the other hand, salespeople responsiblefor existing customers place more emphasis on building relationships and servic-ing customers. For example, Lou Pritchett of Procter & Gamble, in a continuingrelationship with Wal-Mart, increased sales to Wal-Mart from $400 million a yearto over $6 billion a year by being creative and building partnerships.19And themore important the buyer, the larger the group of sellers engaged in selling to thatbuyer. Hormel has a team of 50 who sell to Wal-Mart in Bentonville, Arkansas.Salesperson’s Role: Taking Orders or Creating New SolutionsSome sales jobs focus primarily on taking orders. For example, most Frito-Laysalespeople go to grocery stores, check the stock, and prepare an order for thestore manager to sign. However, some Frito-Lay salespeople sell only to buyersin the headquarters of supermarket chains. Headquarters selling requires a muchhigher level of skill and creativity to do the job effectively. These salespeoplework with buyers to develop new systems and methods, and sometimes even newproducts, to increase the retailer’s sales and profits.wei8108x_ch01_002-027.indd 12wei8108x_ch01_002-027.indd 12 7/9/08 8:43:54 PM7/9/08 8:43:54 PM
    • First PagesChapter 1 Selling and Salespeople 13Importance of the Purchase to the CustomerConsumers and businesses make many purchase decisions each year. Somedecisions are important to them, such as purchasing a building or a businesstelephone system. Others are less crucial, such as buying candy or cleaningsupplies.Sales jobs involving important decisions for customers differ greatly from salesjobs involving minor decisions. Consider the company that needs a computer-controlled drill press. Buying the drill press is a big decision. The drill press salesrepresentative needs to be knowledgeable about the customer’s needs and thefeatures of drill presses. The salesperson will have to interact with a number ofpeople involved in the purchase decision.Location of Salesperson-Customer Contact: Field or Inside SalesField salespeople spend considerable time in the customer’s place of business,communicating with the customer face to face. Inside salespeople work at theiremployer’s location and typically communicate with customers by telephoneor letter.Field selling typically is more demandingthan inside selling because the former entailsmore intense interactions with customers.Field salespeople are more involved in prob-lem solving with customers, whereas insidesalespeople often respond to customer-initiated requests.The Nature of the Offering Sold bythe Salesperson: Products or ServicesThe type of benefits provided by productsand services affects the nature of the sales job. Products such as chemicals andtrucks typically have tangible benefits: Customers can objectively measure achemical’s purity and a truck’s payload. The benefits of services, such as businessinsurance or investment opportunities, are more intangible: Customers cannoteasily see how the insurance company handles claims or objectively measure theriskiness of an investment.Intangible benefits are harder to sell than tangible benefits because it is diffi-cult to demonstrate intangible benefits to customers. It is much easier to show acustomer the payload of a truck than the benefits of carrying insurance.Salesperson’s Role in Securing Customer Commitment: Informationor Placing an OrderSales jobs differ by the types of commitments sought and the manner in which theyare obtained. For example, the Du Pont missionary salesperson might encouragea clothing designer to use Du Pont Teflon fibers. The salesperson might ask thedesigner to consider using the fiber but does not undertake the more difficulttask of asking the designer to place an order. If the designer decides to use Teflonfabric in a dress, the actual order for nylon will be secured by the fabric manufac-turer salesperson, not the Du Pont salesperson.Field salespeople godirectly to the customer’splace of business.How do you think the greater use of technology will affect the different types of salesjobs? Will some types of sales jobs decline in importance? Why?thinking it throughwei8108x_ch01_002-027.indd 13wei8108x_ch01_002-027.indd 13 7/9/08 8:43:54 PM7/9/08 8:43:54 PM
    • First Pages14 Part 1 The Field of SellingTHE SALES JOBS CONTINUUMExhibit 1.5 uses the factors just discussed to illustrate the continuum of sales jobsin terms of creativity. Sales jobs described by the responses in the far right columnrequire salespeople to go into the field, call on new customers who make impor-tant buying decisions, promote products or services with intangible benefits, andseek purchase commitments. These types of sales jobs require the most creativityand skill and, consequently, offer the highest pay.The next section examines the responsibilities of specific types of salespeoplein more detail.EXAMPLES OF SALES JOBSBest Buy Retail SalespersonBest Buy salespeople sell to customers who come into their stores. In many cases thecustomers know what they want; the salesperson just rings up the sale. However,Best Buy, like most progressive retailers, is upgrading its salespeople from ordertakers to relationship builders. The company is training salespeople to understandand meet the specific needs of five types of customers: affluent professionals; active,young males; family men; busy suburban mothers; and small business customers.Hershey Foods SalespersonHershey salespeople increase the sales of their firm’s chocolate and candy productsby influencing retailers and distributors to stock Hershey brands and then servic-ing them. Most Hershey salespeople typically make regularly scheduled calls onexisting customers in an assigned territory and generally are not expected to findnew customers. Some of the responsibilities of a Hershey trade salesperson are:• Convincing retailers to buy and display all Hershey products in their stores.• Making sure that retailers have enough stock displayed on shelves and storedin the back room so that an out-of-stock condition will not arise.• Counting stock and preparing orders for store managers if inventories are low.• Checking to see that Hershey products are priced competitively.• Trying to get Hershey products displayed on shelves where consumers cansee them easily.• Encouraging managers to develop special displays for Hershey and helpingbuild the displays.• Convincing store managers to feature Hershey products in advertising andplace in-store ads and signs to promote the sale of Hershey products.Abbott Labs Pharmaceutical SalespersonSalespeople working for pharmaceutical companies such as Abbott have beenclassic examples of missionary salespeople. They provide information on theirExhibit 1.5Creativity Level of SalesJobsFactors in Sales Jobs Lower Creativity Higher Creativity1. Stage of the customer-firm relationship Existing customer New customer2. The salesperson’s role Order taking Creating new solutions3. Importance of the customer’s purchase decision Low High4. Location of salesperson-customer contact Inside company Field customer5. Nature of the offering sold by the salesperson Products Services6. Salesperson’s role in securing customercommitmentLimited role Significant rolewei8108x_ch01_002-027.indd 14wei8108x_ch01_002-027.indd 14 7/9/08 8:43:55 PM7/9/08 8:43:55 PM
    • First PagesChapter 1 Selling and Salespeople 15products to physicians, surgeons, and other people licensed to provide medicalservices in their territories. Typically, they make about eight calls on doctors eachday, usually without an appointment. The salespeople spend 2 to 15 minutes withdoctors on each call. The presentations include accurate information about thesymptoms for which a pharmaceutical is effective, how effective it is, and the sideeffects that might occur. Doctors consider these presentations a source of infor-mation about new products.IBM Computer Servers SalespersonSome of the most challenging sales jobs involve selling capital goods. IBM sellsworld-class server technology that helps businesses adapt to new conditionsquickly and easily. IBM salespeople outline the benefits of a customized computerserver configuration for each department in the buyer’s company.Because these capital equipment sales are made infrequently, IBM salespeopleoften approach new customers. The selling task requires working with custom-ers who are making a major investment and are involved in an important buy-ing decision. Many people are involved in this sort of purchase decision. IBMsalespeople need to demonstrate both immediate, tangible benefits and future,intangible benefits to executives ranging from the chief information officer (CIO)to the chief financial officer (CFO).The next section reviews some of the skills required to be effective in the salespositions just discussed.CHARACTERISTICS OF SUCCESSFUL SALESPEOPLE •The market is full of books and articles discussing why some people are success-ful in selling and others are not.20Yet no one has identified the profile of the“perfect” salesperson because sales jobs are so different. As the job descriptionsin the preceding section show, the characteristics and skills needed for successwhen selling for Hershey Foods differ from those needed for success when sellingfor IBM. In addition, each customer is unique. However, the following are traitsgenerally associated with successful salespeople.SELF-MOTIVATEDMost salespeople work in the field without direct supervision. Under these con-ditions they may be tempted to get up late, take long lunch breaks, and stopwork early. But successful salespeople are self-starters who do not need the fearinspired by a glaring supervisor to get them going in the morning or to keep themworking hard all day. Furthermore, successful salespeople are motivated to learn,and work at improving their skills by analyzing their past performance and usingtheir mistakes as learning opportunities.DEPENDABILITY AND TRUSTWORTHINESSThis book focuses on business-to-business selling situations in which the customerand salesperson often have a continuing relationship. Such salespeople are inter-ested not only in what the customers will buy this time but also in getting ordersin the years to come. Customers develop long-term relationships only with sales-people who are dependable and trustworthy.21When salespeople say the equip-ment will perform in a certain way, they had better make sure the equipmentperforms that way! If it doesn’t, the customer will not rely on them again. Andthis dependability and trustworthiness can’t just be a false front: salespeople whoare genuine and come across as authentic are better performing salespeople.22wei8108x_ch01_002-027.indd 15wei8108x_ch01_002-027.indd 15 7/9/08 8:43:55 PM7/9/08 8:43:55 PM
    • First Pages16 Part 1 The Field of SellingETHICAL SALES BEHAVIORHonesty and integrity are critical for developing effective relationships, as Build-ing Partnerships 1.1 illustrates. Over the long run, customers will find out whocan be trusted and who cannot. Good ethics are good business. Ethical salesbehavior is such an important topic that Chapter 3 is devoted to it.CUSTOMER AND PRODUCT KNOWLEDGEEffective salespeople need to know how businesses make purchase decisions andhow individuals evaluate product alternatives. In addition, effective salespeopleneed product knowledge—how their products work and how the products’ fea-tures are related to the benefits customers are seeking. Chapter 4 reviews the buy-ing process, and Chapter 6 discusses product knowledge.ABILITY TO USE INFORMATION TECHNOLOGYSalespeople need to know how to use the Internet, databases, and software toeffectively sell in today’s marketplace.23Information technology will be discussedin every chapter in this book.COMMUNICATION SKILLSThe key to building strong long-term relationships is to be responsive to a custom-er’s needs. To do that, the salesperson needs to be a good communicator. But talk-ing is not enough; the salesperson must also listen to what the customer says, askquestions that uncover problems and needs, and pay attention to the responses.To compete in world markets, salespeople need to learn how to communi-cate in international markets. For example, business is conducted differently✺at the front of my mind as I continued to deal with thisbuyer over the next several weeks. I made sure to followthrough completely with everything I had promised. I wascompletely honest, like the time when I made a mistakeby misquoting a price. The result? I landed the biggestsale of my life with this customer. I owe it all to integrity.Integrity means to me following through on promises, tak-ing personal responsibility for mistakes, being totally hon-est, and being modest. It also means treating everyone atthe buyer’s firm with respect and courtesy, through suchactions as sending thank-you cards to everyone involved,even the smallest person on the totem pole. Integrity is thekey to success.Source: Chad R. Stinchfield, salesperson at Hospira Worldwide;used by permission.This story starts back when I was interviewing for my salesjob with Hospira, a specialty pharmaceutical and medi-cation delivery company. During the interview the salesmanager told me this company is built on integrity. I hateto admit it, but before Hospira, I couldn’t even define theword integrity.Now it means the difference between landing a big saleand being content with the small ones. When I startedmy sales calls, one of my accounts opened up a perfectopportunity for me to trash the competition. As I sat therein the buyer’s office, I thought about many things I couldsay to really cut the competition. But then I thought backto my interview with Hospira and also what I had beentaught after getting hired. Integrity is the only way.I decided to take the high road and not trash the competi-tion. Instead, I brought the conversation back to what Hos-pira could offer the buyer. I kept the concept of integrity1.1BUILDING PartnershipsINTEGRITY: IS THERE ANY OTHER WAY?ethicswei8108x_ch01_002-027.indd 16wei8108x_ch01_002-027.indd 16 7/9/08 8:43:55 PM7/9/08 8:43:55 PM
    • First PagesChapter 1 Selling and Salespeople 17in Europe than in the United States. In the United States business transactionsgenerally proceed at a rapid pace, whereas Europeans take more time reachingdecisions. European customers place more emphasis on the rapport developedwith a salesperson, whereas U.S. firms look more at the size and reputationof the salesperson’s company. Because Europeans want to do business withsalespeople they like and trust, the latter devote a lot of time to building closepersonal relationships with customers. Chapter 5 is devoted to developingcommunication skills, with considerable emphasis on communicating in othercultures.FLEXIBILITY AND AGILITYThe successful salesperson realizes that the same sales approach does not workwith all customers; it must be adapted to each selling situation.24The salespersonmust be sensitive to what is happening, and agile enough to make those adapta-tions during the sales presentation. Again, it is this flexibility that causes com-panies to spend so much money on personal selling instead of just advertising,which can’t be tailored as easily or quickly to each individual.CREATIVITYCreativity is the trait of having imagination and inventiveness and using it tocome up with new solutions and ideas. Sometimes it takes creativity to get anappointment with a prospect. It takes creativity to develop a long-rememberedpresentation in the buyer’s mind. It takes creativity to solve a sticky installationproblem after the product is sold.CONFIDENCE AND OPTIMISMSuccessful salespeople tend to be confident about themselves, their company, andtheir products.25They optimistically believe that their efforts will lead to success.Don’t confuse confidence, however, with wishful thinking. According to research,truly confident people are willing to work hard to achieve their goals. They areopen to criticism, seek advice from others, and learn from their mistakes. Theyexpect good things to happen, but they take personal responsibility for their fate.People who lack confidence, according to these same studies, are not honest abouttheir own limits, react defensively when criticized, and set unrealistic goals.EMOTIONAL INTELLIGENCEEmotional intelligence is the ability to effec-tively understand and use one’s own emo-tions and the emotions of people with whomone interacts, and this is am important traitfor salespeople.26Emotional intelligence hasfour aspects: (1) knowing one’s own feel-ings and emotions as they are experienced,(2) controlling one’s emotions to avoid act-ing impulsively, (3) recognizing customers’emotions (called empathy), and (4) usingone’s emotions to interact effectively withcustomers. We discuss aspects of emotionalintelligence as they relate to adaptive sellingand effective verbal and nonverbal intel-ligence in Chapters 5 and 6. You can usevarious tools to measure and improve your emotional intelligence as Sales Tech-nology 1.1 describes.Salespeople need emotional intel-ligence to be able to recognize cus-tomers’ emotions.wei8108x_ch01_002-027.indd 17wei8108x_ch01_002-027.indd 17 7/9/08 8:43:56 PM7/9/08 8:43:56 PM
    • First Pages18 Part 1 The Field of Selling✺SALES TechnologyHOW CAN YOU BUILD YOUR EMOTIONAL INTELLIGENCE? BY USINGTECHNOLOGY, OF COURSEIdentifying strengths and weaknesses is a critical first stepin improving emotional intelligence. TalentSmart offers anonline Emotional Intelligence Appraisal to do just that.The company also encourages your peers to evaluate youbecause chances are they are better judges than you are.New Training Ideas offers a similar online appraisal. Fora free appraisal from the Institute for Health and HumanPotential, go to www.ihhp.com/quiz.php. You can alsofind tests at allthetests.com.Okay, now you know where you stand. What’s next? Anumber of tools are available. TalentSmart offers inter-esting videos that include Hollywood movies, TV showclips, and historical events to teach the topic. Of course,interactive training is usually called for, including video-taped role playing.Salespeople can also engage in Web-based training.Emotional Literary Education and TalentSmart are twomajor vendors of such services. For example, TalentSmart’sEmotional Intelligence Appraisal–Team Edition allows anentire group to be appraised and then delivers a custom-ized six-month e-learning course that the entire team worksthrough.Source: www.emotional-literacy-education.com,www.talentsmart.com; www.newtrainingideas.com/emotional-intelligence.html; www.ihhp.com/quiz.php;www.allthetests.com.1.1ARE SALESPEOPLE BORN OR MADE?On the basis of the preceding discussion, you can see that most of the skillsrequired to be a successful salesperson can be learned. People can learn to workhard, plan their time, and adapt their sales approach to their customers’ needs. Infact, companies show their faith in their ability to teach sales skills by spendingbillions of dollars each year on training programs. The next section discusses therewards you can realize if you develop the skills required for sales success.REWARDS IN SELLING •Personal selling offers interesting and rewarding career opportunities. More than8 million people in the United States currently work in sales positions, and thenumber of sales positions is growing. In fact, based on a study of nearly 37,000employers in 27 countries, the demand for salespeople is greater than the sup-ply.27Exhibit 1.6 provides a breakdown of employment by the type of sales job.INDEPENDENCE AND RESPONSIBILITYMany people do not want to spend long hours behind a desk, doing the samething every day. They prefer to be outside, moving around, meeting people, andworking on various problems. Selling ideally suits people with these interests.The typical salesperson interacts with dozens of people daily. Most of these con-tacts involve challenging new experiences.Which of the characteristics listed in this section are needed to be an effective teacher,engineer, banker, or actor?thinking it throughwei8108x_ch01_002-027.indd 18wei8108x_ch01_002-027.indd 18 7/9/08 8:43:56 PM7/9/08 8:43:56 PM
    • First PagesChapter 1 Selling and Salespeople 19Selling also offers unusual freedom and flexibility. It is not a nine-to-five job.Most salespeople decide how to spend their time; they do not have to report in.They have the freedom to determine what they do during a day, to decide whichcustomers to call on and when to do paperwork. Long hours may be required onsome days, and other days may bring fewer demands.Because of this freedom, salespeople are like independent entrepreneurs. Theyhave a territory to manage and few restrictions on how to do it. They are respon-sible for the sales and profits the territory generates. Thus their success or failurerests largely on their own skills and efforts.FINANCIAL REWARDSSalespeople tend to earn more money the longer they sell, as Exhibit 1.7 clearlyindicates. Occasionally the top salespeople in a firm will even earn more than thesales executives in that firm. The average amount earned by salespeople dependsExhibit 1.6Employment in SalesPositionsType of Sales Job Employed in 2006 Projected Employed for 2016Retail salesperson 4,777,000 5,034,000Manufacturers’ and wholesale salesreps1,973,000 2,155,000Insurance sales agents 436,000 492,000Securities, commodities, and financialsales agents320,000 399,000Real estate agents and brokers 564,000 624,000Sales engineers 76,000 82,000Advertising sales agents 170,000 205,000Totals 8,316,000 8,991,000Source: Occupational Outlook Handbook, 2008–2009 edition, U.S. Department of Labor, Bureau of LaborStatistics.Exhibit 1.7Average AnnualCompensation forSalespeople by Yearsof Sales/MarketingExperience3–5 years200,000125,000$92,676$124,329$150,445$189,569100,000Averageannualsalescompensation75,0006–10 years 11–25 years Over 25 yearsYears of sales/Marketing experienceSource: Rebecca Aronauer, “Trends,” Sales and Marketing Management Magazine 159, no. 4 (May 2007), pp. 38–39.wei8108x_ch01_002-027.indd 19wei8108x_ch01_002-027.indd 19 7/9/08 8:43:57 PM7/9/08 8:43:57 PM
    • First Pages20 Part 1 The Field of Sellingsomewhat on the annual revenues of the firm: For firms with revenues of less than$1 million, the average salesperson earns $99,058, while for companies earningfrom $1 to $10 billion, the average is $199,590.28The financial rewards of selling depend on the level of skill and sophisticationneeded to do the job. For example, salespeople who sell to businesses typicallyare paid more than retail salespeople. Exhibit 1.8 shows the average compensa-tion for salespeople in various jobs.MANAGEMENT OPPORTUNITIESSelling jobs provide a firm base for launchinga business career. For example, Mark Alvarezstarted his sales career in the Medical SystemsDivision at General Electric (GE) selling diag-nostic imaging equipment to hospitals in cen-tral Illinois. Over the years he held positionsin the firm that included district and regionalsales manager and product manager; at onepoint he had responsibility for all MedicalSystems Division business in Latin America.Sixteen years later, he was in corporate mar-keting and was responsible for managing therelationships between GE’s 39 divisions andkey customers in the southeastern UnitedStates. These include such accounts as FederalExpress, Disney, and Home Depot. Some of hisbusinesses do more than $500 million worthof business with GE annually. His entry-leveljob in selling provided great experience forhis current assignment. As another example,Yang Yuanqing, the current CEO of the Chi-nese firm Lenovo, is like many CEOs in thathe started his career as a salesperson.29THE BUILDING PARTNERSHIPS MODEL •This book is divided into four parts, as illustrated in Exhibit 1.9. Part 1 discussesthe partnering landscape—the field of selling. Topics include the nature, role, andrewards of selling and what partnering really means.This young manager learned theropes as a salesperson before mov-ing into product management at hisfirm.Industry Average Sales CompensationServices $182,500Finance/insurance/real estate 178,458Wholesale trade 156,727Health care services 151,528Manufacturing 151,480Retail trade 143,588Entertainment/media 131,327Publishing 125,867Note: These are just the averages. Some salespeople in these positions make much more than theseaverages indicate, while others make much less.Source: Rebecca Aronauer, “Trends,” Sales and Marketing Management Magazine 159 no. 4 (May 2007),pp. 38–39.Exhibit 1.8Average Compensationfor Salespeople inVarious Positionsethicswei8108x_ch01_002-027.indd 20wei8108x_ch01_002-027.indd 20 7/9/08 8:43:57 PM7/9/08 8:43:57 PM
    • First Pages21The knowledge and skills needed for successful partnerships are covered inPart 2. You will learn about the legal and ethical responsibilities of salespeople,the buying process, the principles for communicating effectively, and methods foradapting to the unique styles and needs of each customer.In Part 3 you will explore the partnership development process and the activitiesneeded for this to occur. After completing this section, you should have enhancedskills and understanding about prospecting, planning, discovering needs, using visualaids and conducting demonstrations effectively, responding to objections, obtainingcommitment, formally negotiating, and providing excellent after-sale service.Finally, Part 4 discusses the role of the salesperson as a manager. You’ll learnhow you can improve your effectiveness as a salesperson by managing your timeand territory and by managing the relationships within your own company. Thissection also discusses ways to manage your career.Exhibit 1.9The Building PartnershipsModel1The partneringlandscape4The salespersonas a managerBuildingPartnerships2Knowledge andskills neededfor partnerships3The partnershipdevelopmentprocessSUMMARY You should study personal selling because we all use selling techniques. If youwant to work in business, you need to know about selling because salespeopleplay a vital role in business activities. Finally, you might become a salesperson.Selling jobs are inherently interesting because of the variety of people encoun-tered and activities undertaken. In addition, selling offers opportunities for finan-cial rewards and promotions.Salespeople engage in a wide range of activities, including providing informa-tion on products and services to customers and employees within their firms.Most of us are not aware of many of these activities because the salespeople wemeet most frequently work in retail stores. However, the most exciting, reward-ing, and challenging sales positions involve building partnerships: long-term,win-win relationships with customers.The specific duties and responsibilities of salespeople depend on the type ofselling position. However, most salespeople engage in various tasks in additionto influencing customers. These tasks include managing customer relations, serv-ing as the account team manager for their firm, managing the relationships withvendor and channel members, and providing information to their firm.Sales jobs can be classified by the roles salespeople and their firms play in thechannel of distribution. The nature of the selling job is affected by whom sales-people work for and whether they sell to manufacturers, distributors, or retailers.wei8108x_ch01_002-027.indd 21wei8108x_ch01_002-027.indd 21 7/9/08 8:43:58 PM7/9/08 8:43:58 PM
    • First Pages22KEY TERMScreativity 00customer-centric 00customer relationship management (CRM) 00distribution channel 00emotional intelligence 00go-to-market strategies 00field salespeople 00inside salespeople 00integrated marketing communications 00lifetime customer value 00manufacturers’ agents 00missionary salespeople 00multichannel strategy 00personal selling 00sales-force intensive organization 00six sigma selling programs 00trade salespeople 00value 00value proposition 0024/7 service 00ETHICS PROBLEMS1. Many buyers are now demanding 24/7 response(24 hours a day, 7 days a week) from their sup-pliers. What impact do you think that wouldhave on a salesperson’s personal life?2. The chapter says that selling jobs can be agreat way to get your foot in the door at anemployer. Let’s say you really want to be inproduct development, not sales, yet the positionthat is being offered at the company is in sales.You hope that after doing the sales job for sixmonths to a year you’ll get promoted to theproduct development job. Should you be hon-est and tell the interviewer (the sales manager)that now? Or should you act like you want tobe a career salesperson?QUESTIONS AND PROBLEMS1. There are many different go-to-market strat-egies. For which of the following products/services do you think a sales-force intensivestrategy would probably not be used? Why?Make any assumptions needed and list yourassumptions in your answer.a. Golf balls.b. Oil change service.c. Paper for copy machines.d. Energy-efficient air conditioning system fora commercial building.2. Think of two people you know whom youwould identify as very confident. Make a gridof the following traits, and indicate whethereach of these people exhibits the trait:a. Open to criticism.Other factors affecting the nature of selling jobs are the customer’s relationshipto the salesperson’s firm, the salesperson’s duties, the importance of the buyingdecision to the customer, where the selling occurs, the tangibility of the benefitsconsidered by the customer, and the degree to which the salesperson seeks a com-mitment from customers.Research on the characteristics of effective salespeople indicates that manydifferent personality types can be successful in sales. However, successful sales-people do share some common characteristics. They are self-motivated, depend-able, ethical, knowledgeable, good communicators, flexible, creative, confident,emotionally intelligent, and aren’t afraid of technology.wei8108x_ch01_002-027.indd 22wei8108x_ch01_002-027.indd 22 7/9/08 8:43:58 PM7/9/08 8:43:58 PM
    • First Pages23b. Seeks advice from others.c. Seems to learn from mistakes.d. Honest about his or her own limits.e. Sets realistic goals.3. Comment on each of the following:a. Salespeople rip people off.b. Salespeople are born, not made.c. Selling is just a big bag of tricks.d. A salesperson should never take no for ananswer.e. A good salesperson can sell anything toanybody.4. Maria Smith has been working as a reception-ist at her father’s business for two years sincegraduating from college. She is consideringtaking a selling job with a pharmaceuticalcompany. The job involves calling on doctorsand explaining the benefits of the firm’s prod-ucts. What are the similarities and differencesbetween her receptionist job and the selling jobshe is considering?5. Jerry White worked his way through collegeby selling Home Theatre Systems at Best Buy.He has done well on the job and is one of thetop salespeople in the home electronics depart-ment. Last week Safety Harness Inc. offeredhim a job selling seat belt kits to school busmanufacturers. Explain the differences betweenselling in a consumer electronics store and theSafety Harness Inc. sales job.6. Poll at least five students who are not takingyour selling course (and who, better yet, areoutside the business school or program). Whatare their opinions about salespeople? Howaccurate are their opinions based on whatyou’ve read in this chapter?7. Think about what you want in your first jobout of college. Based on what you know so farfrom this chapter, how well does selling matchyour desires in a job?8. According to the text, some sales jobs involvetaking orders instead of creating new solutions.Why would anyone want a job that involvesonly taking orders?9. Would society benefit if new car companieseliminated salespeople and sold new cars at alower price to the customer over the Internet?10. Assume you are a sales manager and you needto recruit someone for the following sales posi-tions. For each position, list the qualities youwould want in the recruit:a. Salesperson selling Web design services tosmall businesses.b. Salesperson calling on college bookstores,selling university logo backpacks.c. Used-car salesperson.d. Salesperson selling janitorial services to acounty courthouse.11. Review the story told in “From the Buyer’sPerspective 1.1”. Assume you are a new sales-person for the company that originally soldmost everything to Sammy’s Pizza. You werenot around when someone lost the Perrallafamily trust, and you would really like to getthem back as an account. What would you doto try and regain that trust?CASE PROBLEMScase 1.1Peter’s ValetPeter’s Valet is a well-established commercial dry cleaning company that has beenin business since 1986. The company is located in Maplewood, Minnesota, withannual sales of $1,750,000.The company provides same-day full services to over 50 major hotels andprivate clubs in the area. Additionally, the company has a successful wholesalecleaning business (offered to independent retail outlets); valet/delivery services tooffice complexes and individual residences; and commercial drapery and linencleaning. Peter’s Valet also does a small amount of retail dry cleaning for localresidents at its dry cleaning plant.Peter’s Valet has a well-established customer base that has recurring serviceneeds. Its reputation in the community is excellent. However, there has been asevere decline in its primary market (travel and lodging establishment) over the lastthree years due to national economic conditions beyond its control. Peter’s Valetis currently seeing indications of an improving marketplace and wants to activelypursue new business. Its workforce is relatively stable and very productive.In the past Peter’s Valet has had only one salesperson. However, it would liketo add a new position to seek new business in the area.wei8108x_ch01_002-027.indd 23wei8108x_ch01_002-027.indd 23 7/9/08 8:43:59 PM7/9/08 8:43:59 PM
    • First Pages24Questions1. This chapter described sales jobs in terms of six factors (the stage of the buyer-seller relationship, the salesperson’s role, the importance of the customer’spurchase decision, the location of salesperson-customer contact, the nature ofthe offering sold by the salesperson, and the salesperson’s role in securing cus-tomer commitment). Based on what you know about the new selling positionat Peter’s Valet, describe the position in terms of the six factors.2. To what extent do you think this new selling position would require the sales-person to be a client relationship manager? A vendor and channel manager?Kristin Johnson is a junior at Auburn University. Yesterday she was talking totwo friends, Ryan Domin and Ty Boyd, at the cafeteria. Let’s pick up at one pointin their conversation.RYAN: My class in Modern Middle East is going to be so cool!KRISTIN: Really? What kind of stuff would you cover in a class like that?RYAN: We’re going to be looking at the Ottoman Empire and how thingshave progressed to the present. I’ve heard that the prof usually doesthis really big debate in the middle of the semester. I hear that it getspretty hairy. Shouting and that kind of stuff!TY: That does sound slick. So what’s your favorite course this semester,Kristin?KRISTIN: I think it’s going to be selling. [Ryan laughs under his breath.] Well,that’s what I want to do when I graduate, you know.RYAN: Why!? I mean, I’ve got lots of friends who are selling right now, outat the mall, without a college education or anything.TY: Yeah, and who wants to be a pushy salesman, anyway? I can’t standthe guys who are always calling on the phone. No offense, of course,Kristin. You can call me anytime! You’ve got my number, right?RYAN: [Laughing] Besides Kristin, I’m not sure you’ve got enough of apoker face to pull off a selling job. You’re too honest. I’ll never for-get your telling the cashier at the bookstore that she gave you back$5 too much in change!TY: I’ve got to agree with Ryan, Kristin. You’re just too honest to be aseller. And you’re too sharp. Let’s face it. You’ve got a lot of cre-ativity. Just think about that poster competition you won last yearfor the Health Services. That was awesome! You need a job thatcan use your creativity, not stifle it. Something like graphic design,like I’m in. That’s what I think you should consider. You’d be anatural.RYAN: No, I’m not so sure about the graphic design idea, Kristin. Youdon’t seem like a computer jockey to me. But didn’t you say youwanted to have a family someday? How are you going to pull thatoff when you’re on the road all the time?Questions1. How would you reply to each statement by Ty and Ryan?2. Why do Ty and Ryan have the perceptions they have? Are they at all accurate?case 1.2Kristin Johnsonwei8108x_ch01_002-027.indd 24wei8108x_ch01_002-027.indd 24 7/9/08 8:43:59 PM7/9/08 8:43:59 PM
    • First Pages25ROLE PLAY CASEAt the end of each chapter, beginning just below this paragraph, you’ll find ashort role play exercise that focuses on the product NetSuite. NetSuite is a lead-ing contact management software. Contact management software is a form ofsoftware designed to help salespeople increase their productivity by helping themkeep track of the customers they call. In addition to a calendar that tells themwhen to call on an account, the software can track account information concern-ing what has been bought, when it was bought, the decision-making process, andeven personal information about each person in the account. In addition, salesmanagers can generate reports automatically when reps download information tothe company network. Reps don’t have to type up as many reports as they wouldotherwise, such as sales forecasts and call reports. Further, the system can tieinto the company’s ordering system, which helps save the salesperson paperworktime. You can learn more about NetSuite from its Web page: www.netsuite.com.Congratulations, you’ve just graduated from college! Unfortunately, youfocused so much on your studies that you have not interviewed for any jobs.You moved back home, but you keep in touch with the school’s Career ServicesCenter, where you saw a job posting for NetSuite. Apparently it is some sort ofsoftware for salespeople. You’ve not had any serious interviews, so you thoughtyou’d sign up. Today is your interview. Be yourself; interview honestly as if youwere truly talking with NetSuite. To help you prepare for this role play of a jobinterview, you may want to take some time to find out about NetSuite by visitingwww.netsuite.com for more information.To the instructor: Additional information needed to complete the role play isavailable in the Instructor’s Manual.ADDITIONAL REFERENCESBatislam, Emine Persentili, Meltem Denizel, and Alpay Filiz-tekin. “Empirical Validation and Comparison of Mod-els for Customer Base Analysis.” International Journalof Research in Marketing 24, no. 3 (September 2007),pp. 201–209.Belonax Jr., Joseph J., Stephen J. Newell, and Richard E. Plank.“The Role of Purchase Importance on Buyer Perceptionsof the Trust and Expertise Components of Supplier andSalesperson Credibility in Business-to-Business Relation-ships.” Journal of Personal Selling & Sales Management27, no. 3 (Summer 2007), pp. 247–58.Bosworth, Michael, and John Holland. Customer-Centric Sell-ing. New York: McGraw-Hill, 2003.Bowman,Douglas,andDasNarayandas.“LinkingCustomerMan-agement Effort to Customer Profitability in Business Mar-kets.”JournalofMarketingResearch61(November2004),pp. 433–47.Crowder, Martin, David J. Hand, and Wojtek Krzanowski. “OnOptimal Intervention for Customer Lifetime Value.”European Journal of Operational Research 183 no. 3(December 16, 2007), pp. 1550–59.“Customer Analytics: Becoming Customer-Centric.” CRM Mag-azine, 11 no. 9 (September 2007), p. 1–3.“Determining ‘CLV’ Can Lead to Making Magical MarketingDecisions: Ask the Expert” (interview). B to B 92, no. 6(May 7, 2007), p. 18.Edwards, Cliff. “Death of a Pushy Salesman.” Business Week,July 3, 2006, pp. 108–09.Ehret, Michael. “Managing the Trade-Off between Relationshipsand Value Networks.” Industrial Marketing Management33, 2004, pp. 465–73.Fadar, Peter S., Bruce G. S. Hardie, and Ka Lok Lee. “More thanMeets Eye.” Marketing Research: A Magazine of Man-agement & Applications 18, no. 2 (Summer 2006), p. 9.Gaffney, John. “The Myth of Customer Loyalty.” 1 to 1 Maga-zine, March 2007, pp. 18–22.Goleman, Daniel. Emotional Intelligence: Why It Can MatterMore Than IQ. Bantam Books, 2005Guenzi, Paolo, and Gabriele Troilo. “The Joint Contribution ofMarketing and Sales to the Creation of Superior CustomerValue.” Journal of Business Research 60, no. 2 (February2007), pp. 98–107.wei8108x_ch01_002-027.indd 25wei8108x_ch01_002-027.indd 25 7/9/08 8:43:59 PM7/9/08 8:43:59 PM
    • First Pages26Gupta, Sunil, and Donald Lehmann. Managing Customers asInvestments: The Strategic Value of Customers in theLong Run. Wharton School Publishing, 2005.Haenlein, Michael, Andreas M. Kaplan, and Detlef Schoder.“Valuing the Real Option of Abandoning UnprofitableCustomers When Calculating Customer Lifetime Value.”Journal of Marketing 70 no. 3 (July 2006), pp. 5–20.Hawes, Jon M., Anne K. Rich, and Scott M. Widmeir. “Assess-ing the Development of the Sales Profession.” Journal ofPersonal Selling and Sales Management 24 (Winter 2004),pp. 27–38.Hosford, Christopher. “Measuring for the Long Haul: CustomerLifetime Value Metrics Give Marketers a Long View ofHow to Spend.” B to B 92 no. 6 (May 7, 2007), p. 18.Jones, Eli, Steven P. Brown, Andris A. Zoltners, and Barton AWeitz. “The Changing Environment of Selling and SalesManagement.” Journal of Personal Selling & Sales Man-agement 25 no 2 (Spring 2005), pp. 105–11.Kumar, V. “Profitable relationships.” Marketing Research: AMagazine of Management & Applications 18 no. 3 (Fall2006), p. 41.Landry, Timothy D., Todd J. Arnold, and Aaron Arndt. “ACompendium of Sales-Related Literature in CustomerRelationship Management: Processes and Technolo-gies with Managerial Implications.” Journal of PersonalSelling & Sales Management 25, no. 3 (Summer 2005),pp. 231–51.Lee, Nancy. “It’s All About the Customer: Commercial Perspec-tives on Customer-Centric Marketing and Managing theCustomer Relationship.” Social Marketing Quarterly 3,no. 3 (September 2007), pp. 12–16.Lopez, Tará Burnthorne, Christopher D. Hopkins, and MaryAnne Raymond. “Reward Preferences of Salespeople:How Do Commissions Rate?” Journal of Personal Selling& Sales Management 26, no. 4 (Fall 2006), pp. 381–90.Marone, Mark, and Seleste Lunsford. Strategies That Win Sales:Best Practices of the World’s Leading Organizations.Kaplan Business, 2005Mason, Katy, Peter Doyle, and Veronica Wong, “Market Ori-entation and Quasi-integration: Adding Value throughRelationships.” Industrial Marketing Management 35,no. 2 (February 2006), pp. 140–55.McArdle, Kevin. “Competing on Value: How to Get YourUnique Value Recognized and Rewarded by Customers.”Precision Manufacturing, May–June 2007, p. 18.Miao, C. Fred, and Kenneth R. Evans. “The Impact of Sales-person Motivation on Role Perceptions and Job Perfor-mance: A Cognitive and Affective Perspective.” Journalof Personal Selling & Sales Management 27, no. 1 (Win-ter 2007), pp. 89–101.Moncrief, William C., and Greg W. Marshall. “The Evolution ofthe Seven Steps of Selling.” Industrial Marketing Manage-ment 34 (2005), pp. 13–22.Pass, Michael W., Kenneth R. Evans, and John L. Schlacter.“Sales Force Involvement in CRM Information Systems:Participation, Support and Focus.” Journal of PersonalSelling & Sales Management 24, no. 3 (Summer 2004),pp. 229–34.Pettijohn, Charles E., Linda S. Pettijohn, and A.J. Taylor. “DoesSalesperson Perception of the Importance of Sales SkillsImprove Sales Performance, Customer Orientation, JobSatisfaction, and Organizational Commitment, andReduce Turnover?” Journal of Personal Selling & SalesManagement 27, no. 1 (Winter 2007), pp. 75–88.Pfeifer, Phil, and Paul Farris. “Defending the TraditionalApproach.” Marketing Research: A Magazine of Manage-ment & Applications 18 no. 3 (Fall 2006), p. 52.Raman, Pushkala, C. Michael Wittmann, and Nancy A. Rauseo.“A Leveraging CRM for Sales: The Role of Organiza-tional Capabilities in Successful CRM Implementation.”Journal of Personal Selling & Sales Management 26, no.1 (Winter 2006), pp. 39–53.Ross,W.T.,F.Dalsace,andG.T.M.Hult.“ShouldYouSetUpYourOwn Sales Force or Should You Outsource It? Pitfalls in theStandard Analysis.” Business Horizons 48, no. 1 (2005),pp. 23–36.Rouziès, Dominique, Erin Anderson, Ajay K. Kohli, RonaldE. Michaels, Barton A. Weitz, and Andris A. Zoltners.“Sales and Marketing Integration: A Proposed Frame-work.” Journal of Personal Selling & Sales Management25, no. 2 (Spring 2005), pp. 113–22.Schieffer, Robert, and Eric Leininger. “Customers at the Core.”Marketing Management 17 no. 1 (January–February2008), pp. 30–37.Schoder, Detlef. “The Flaw in Customer Lifetime Value.” Har-vard Business Review 85, no. 12 (December 2007),p. 26.Schwepeker, Charles H. Jr., and David J. Good. “Marketing Con-trolandSalesForceCustomerOrientation.”JournalofPer-sonalSelling&SalesManagement24,no.3(Summer2004),pp. 167–79.Siegfried, David. “The Outside-In Corporation: How to Builda Customer-Centric Organization for BreakthroughResults.” Booklist 102, no. 6 (November 15, 2005), p. 9.Silver, Lawrence S., Sean Dwyer, and Bruce Alford. “Learn-ing and Performance Goal Orientation of SalespeopleRevisited: The Role of Performance-Approach and Per-formance-Avoidance Orientations.” Journal of PersonalSelling & Sales Management 26, no. 1 (Winter 2006),pp. 27–38.Smith, J. Brock, and Mark Colgate. “Customer Value Creation:A Practical Framework.” Journal of Marketing Theory &Practice 15, no. 1 (Winter 2007), pp. 7–23.“Value thy customers.” CRM Magazine 9, no. 6 (June 2005),p. 17.wei8108x_ch01_002-027.indd 26wei8108x_ch01_002-027.indd 26 7/9/08 8:44:00 PM7/9/08 8:44:00 PM
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