Chapter 19 - personal selling and sales management

personal or professional selling can be a satisfying career for several reasons

1. people love the LIFESTYLE (typically out on their own; although they occasionally work with their managers and other colleagues, salespeople tend to be responsible for planning their days. this flexibility translates into an easier balance between work and family than many office-bound jobs can offer. many salespeople can now rely on virtual offices, which enable them to communicate from anywhere and at any time with their colleagues and customers (via the Internet). because salepeople are evaluated primarily on the results they produce, as long as they meet and exceed their goals, they experience little day-to-day supervision. for example, you might find a salesperson at the gym in the middle of the day, when there are few people there, because no one keeps track of the length of his or her lunch break; 2. the VARIETY in the job often attracts people to sales. EACH DAY IS DIFFERENT, bringing different clients and customers, often in a variety of places. their issues and problems and the solutions to those problems all differ and require creativity. 3. professional selling and sales management can be a very LUCRATIVE CAREER; it is among the highest-paying careers for college graduates, and compensation often includes perks such as the use of a company car or bonuses for high performance. a top performer can have a total compensation package of more than $150,000; even starting salespeople can make more than $50,000; although the monetary compensation can be significant, the satisfaction of being involved in interesting, challenging, and creative work is rewarding in and of itself; 4. Because salespeople are the frontline emissaries for their firms, they are very VISIBLE TO MANAGEMENT. Therefore, their performance is fairly straightforward to measure, which means that high-performing salespeople who aspire to management positions are in a GOOD POSITION TO BE PROMOTED;

the value added by personal selling

-salespeople provide information and advice -salespeople save time and simplify buying -salespeople build relationships;

the personal selling process

1. Generate and qualify leads 2. Preapproach 3. Sales presentation and overcoming reservations 4. Closing the sale 5. Follow-up

Five Service Quality Dimensions

1. Reliability 2. Responsiveness 3. Assurance 4. Empathy 5. Tangibles

ethical and legal issues arise in three main areas

1. the relationship between the sales manager and the sales force, 2. in some situations, an inconsistency might exist between corporate policy and the salesperson's ethical comfort zone, 3. ethical as well as legal issues arise when the salesperson interacts with the customer, especially if that salesperson or the selling firm collects significant information about the customer. to maintain trustworthy customer relationships, companies must take care that they respect customer privacy and respect the information comfort zone - that is, the amount of information a customer feels comfortable providing

handling reservations

An integral part of the sales presentation is handling reservations or objections that the buyer might have about the product or service; although reservations can arise during each stage of the selling process, they are very likely to occur during the sales presentation; customers may raise reservations pertaining to a variety of issues, but they usually relate in some way to value, such as that the price is too high for the level of quality or service. good salespeople KNOW the types of reservations buyers are likely to raise. although not all reservations can be forestalled, effective salespeople can anticipate and handle some. (can know these reservations and have information ready on how to respond to these concerns to flip the worry around); the best way to handle reservations is to relax and listen, then ask questions to clarify any reservations. for example, if they think it is too expensive, could respond with something like, "how much do you think the bank is losing through checking account errors?". the answer might open up a conversation about the positive trends in a cost-benefit analysis. such QUESTIONS are usually more effective than trying to prove the customer's reservation not valid, because the latter approach implies the salesperson isn't really listening and could lead to an argument - the last thing a customer usually wants

Step 1: Generate and Qualify Leads

The first step in the selling process is to GENERATE A LIST OF POTENTIAL CUSTOMERS (LEADS) and assess their potential (qualify); what people might be willing to buy the product? salespeople who already have an established relationship with a customer will skip this step, and it is not used extensively in retail settings; in B2B situations, however, it is important to work. continually to find new and potentially profitable customers (GENERATING AND QUALIFYING LEADS IS VERY IMPORTANT IN B2B SITUATIONS!! NEED TO CONSTANTLY TRY TO FIND POTENTIAL CUSTOMERS)

personal selling

The two-way flow of communication between a buyer or buyers and a seller, designed to influence the buyer's purchase decision.

salary

a fixed sum of money paid at regular intervals

role playing

a good technique for practicing the sales presentation prior to meeting with a customer; the salesperson acts out a simulated buying situation while a colleague or manager acts as the buyer (PRACTICING PRESENTATION BEFORE MEETING WITH THE CUSTOMER); afterward, the practice sales presentation can be critiqued and adjustments can be made.

leads

a list of potential customers

cold calls

a method of prospecting in which salespeople telephone or go to see potential customers WITHOUT APPOINTMENTS; (could be in person)

the sales manager and the sales force

a sales manager must treat everyone fairly and equally in everything he or she does. with regard to the sales force, this fairness must apply to hiring, promotion, supervision, training, assigning duties and quotas, compensation and incentives, and firing. federal laws cover many of these issues. for instance, equal employment laws make it unlawful to discriminate against a person in hiring, promotion, or firing because of race, religion, nationality, sex, or age;

order getter

a salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale "getting the order" "persuading them to want to order"; an order getter is also responsible for following up to ensure that the customer is satisfied and to build the relationship; In B2B settings, order getters are primarily involved in new buy and modified new buy situations. as a result, they require extensive sales and product knowledge training. (person who goes to a headquarters to sell a product or service is the order getter);

order taker

a salesperson whose primary responsibility is to process routine orders, reorders, or rebuys for products; for example, Colgate employs order takers around the globe who go into stores and distribution centers that already carry Colgate products to check inventory, set up displays, write new orders, and make sure everything is going smoothly.

sales contest

a short-term incentive designed to elicit a specific response from the sales force; prizes might be cash or other types of financial incentives (for example, may give a free trip to Germany to the person who sells the most of this specific item)

combination duties

although some salespeople's primary function may be order getting, order taking, or sales support, others fill a combination of roles. For instance, a computer salesperson at Staples may spend an hour with a customer educating him or her about the pros and cons of various systems and then make the sale. the. next customer might simply need a specific printer cartridge; a third customer might bring in a computer and seek advice about an operating system problem. the salesperson was first an order getter, next an order taker, and finally a sales support person.

Step 2: Preapproach and the Use of CRM Systems

although the salesperson has learned about the customer during the qualification stage, in this step he or she must conduct ADDITIONAL RESEARCH and DEVELOP PLANS for meeting with the customer. for example, if a management consulting firm wants to sell a bank a new system for finding checking account errors, the consulting firm's salesperson should first find out everything possible about the bank. answering these questions provides the basis for establishing value for the customer - can tailor the presentation to them and their specific needs, etc. (THIS PREAPPROACH STEP CONSISTS OF DOING A LOT OF RESEARCH ABOUT THE POTENTIAL BUYER!! SO CAN USE THIS TO THEIR ADVANTAGE IN THE SALE); need information on how these buyers differ from existing clients. would be helpful to use customer data in preapproach planning (example of what Vonage did on page 413);

Motivating and Compensating Salespeople

an important goal for any effective sales manager is to get to know his or her salespeople and determine what motivates them to be effective. some salespeople prize their freedom and like to be left alone; others want attention and are more productive when they receive accolades for a job well done. still others are motivated primarily by monetary compensation. these motives vary according to the selling context. great sales managers determine how best to motivate each of their salespeople according to what is most important to each individual

the salesperson and the customer

as the frontline emissaries for a firm, salespeople have a duty to be ethically and legally correct in all their dealings with their customers. not only is it the right thing to do, it simply means good business. Long-term relationships can deteriorate quickly if customers believe that they have not been treated in an ethically proper manner. unfortunately, salespeople sometimes get mized signals from their managers and simply do not know when their behaviors might be considered unethical or illegal. formal guidelines can help, but it is also important to integrate these guidelines into training programs in which salespeople can discuss various issues that arise in the field with their peers and managers. most important, however, is for sales managers to lead by example. if managers are known to cut ethical corners in their dealings with customers, it shouldn't surprise them when their salespeople do the same. SALES MANAGERS SHOULD LEAD BY EXAMPLE - MOST IMPORTANT. - THEY SHOULD LEAD BY EXAMPLE USING ETHICAL BEHAVIOR

self-motivation

as we have already mentioned, salespeople have lots of freedom to spend their days the way they believe will be most productive; but if the salespeople are not self-motivated to get the job done, it probably won't get done.

tangibles

because tangibles reflect the physical characteristics of the seller's business, such as its website, marketing communications, and delivery materials, their influence is subtler than that of the other four service quality dimensions. that doesn't mean it is any less important. retail customers are generally more pleased with a purchase if it is carefully wrapped in nice paper instead of being thrown into a crumpled plastic bag. the tangibles offer a signal that the product is of high quality, even though the packaging has nothing to do with the product's actual performance.

salespeople build relationships

building strong marketing channel relationships is a critical success factor; who in the organization is better equipped to manage this relationship than the salesperson, the frontline emissary for the firm? (SALESPEOPLE TAKE A BIG PART IN MAINTAINING THE CUSTOMERS RELATIONSHIP WITH THE FIRM - just as I, a salesperson as a waitress, has to maintain the customers good relationship with Carrabbas; the MOST SUCCESSFUL SALESPEOPLE are those who build STRONG RELATIONSHIPS with their customers - a rule that holds across ALL sorts of sales - whether you are selling yourself as a job candidate, a product produced by your company, or a concept to a client, your sale is not successful if it leads to just a one-time transaction (WANT TO BUILD A LOYAL CUSTOMER WHO COMES BACK AND HAS MORE THAN ONE TRANSACTION - BUILDING RELATIONSHIPS AS A SALESPERSON DOES THIS); GOOD SALESPEOPLE of all stripes consistently take a LONG-TERM!!! PERSPECTIVE; this long-term perspective in turn demands effective customer relationship management!! SHOULD AIM TO MAKE A SALE THAT WILL CONTINUE TO SELL IN THE LONG-RUN, MAKING A RELATIONSHIP THAT MAKES IT SO THEY WILL COME BACK FOR MORE

selling teams

combinations of sales specialists whose primary duties are order getting, order taking, or sales support but who WORK TOGETHER to service important accounts (some firms use selling teams); as companies become larger and products more complicated, it is nearly impossible for one person to perform all the necessary sales functions;

company sales force

comprised of people who are employees of the selling company and are engaged in the selling process

Assurance

customers must be assured through adequate guarantees that their purchase will perform as expected "assurance"

sales support personnel

enhance and help with the overall selling effort. For example, if a Best Buy customer begins to experience computer problems, the company has a Geek Squad door-to-door service as well as support in the store. Those employees who respond to the customer's technical questions and repair the computer SERVE TO SUPPORT the overall sales process (example: customers can rely on sales support from Best Buy's Geek Squad)

sales training

even people who possess all these personal traits need training. all salespeople benefit from training about selling and negotiation techniques, product and service knowledge, technologies used in the selling process, time and territory management, and company polices and procedures

although sales managers can emphasize different motivating factors, except in the smallest companies, the methods used to compensate salespeople must be fairly standardized and can be divided into two categories:

financial and nonfinancial

personality

good salespeople are friendly, sociable, and, in general, like being around people. customers won't buy from someone they don't like

resilience

good salespeople don't easily take no for an answer. they keep coming back until they get a yes

optimism

good salespeople tend to look at the bright side of things. optimism also may help them be resilient - the third trait

sales people provide information and advice

imagine how difficult it would be to buy a custom suit, a house, or a car without the help of a salesperson (can provide customer information of technical aspects, economic justification for the purchase, etc.); a retail sales associate might even help tell you what colors are hot this season, how to tie a bowtie, how each garment tends to fit, what the latest fashions are in formalwear, and how long your dress should be for a function that starts at 6:00pm; certainly you could figure out most of this information on your own, but many customers find VALUE IN and are willing to pay for the EDUCATION (INFORMATION) and ADVICE that SALESPEOPLE PROVIDE;

sales management

involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force; managing a sales force is is a rewarding yet complicated undertaking; it is also dynamic and constantly shifting

empathy...

is one of the five dimensions of service quality. good salespeople must care about their customers, their issues, and their problems

trade shows

major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry (for example, consumer electronics buyers always make sure to attend the annual Consumer Electronics Show (CES) in Las Vegas, the world's largest trade show for consumer technology (vendors, developers, and suppliers of consumer-technology hardware, content, technology delivery systems, and related products and services all attend - set up exhibits in the hopes to sell their products or services to customers looking to buy (often use this to introduce new products - HDTV and first camcorder was introduced this way); in addition to providing an opportunity for RETAIL BUYERS to see the latest products, the CES conference program features prominent speakers from the technology sector

commission

money paid as a percentage of the sales volume or profitability;

closing the sale

obtaining a commitment from the customer to make a purchase

preapproach

occurs PRIOR to meeting the customer for the first time and extends the qualification of leads procedure described in Step 1.

Step 3: Sales Presentation and Overcoming Reservations

once all the background information has been obtained and the objectives for the meeting are set, the salesperson is ready for a person-to-person meeting. during the first part of the meeting, the salesperson needs to get to know the customer, get the customer's attention, and create interest in the presentation to follow. the beginning of the presentation may be the. most important part of the entire selling process because it is when the salesperson establishes exactly where the customer is in the buying process (exhibit 19.2 aligning the personal selling process with the B2B buying process on page 414); knowing what point the customer is at in the buying process is important because it can help knowing what information to present - what part the customer has reached and thought about - talk about the relevant information of where they are in the process); asking a series of questions, the salesperson can assess the company's need for the product or service and adapt or customize the presentation to match the customer's need and stage in the decision process; asking questions is only half the battle, carefully listening to the answers is equally important - helps understand where the customer really is - listen for subtle nuances of what the customer is really thinking (so can respond effectively);

although the life of a professional salesperson is highly varied, salespeople generally play three important roles:

order getting, order taking, and sales support

When recruiting salespeople, it helps to possess certain traits. What are those personal traits? Managers and sales experts generally agree on the following:

personality, optimism, resilience, self-motivation, and empathy;

companies must also take care to avoid biased practices such as hiring on the basis of stereotypes instead of qualifications

true "saying that an Avon salesperson needs to be a middle aged woman, etc."

objective measures are quantitative

true (facts - numbers)

nonfinancial rewards

recognition from peers and management. for example, the internal monthly magazine and blog at the cosmetics firm Mary Kay provides an outlet not only for selling advice but also companywide recognition of individual salespeople's accomplishments - mary kay gives their high-performing salespeople an award that has both high symbolic value and material value - a pink Cadillac; nonfinancial rewards should have high symbolic value, as plaques, pens, or rings do. free trips or days off are also effective rewards. more important than. what the reward is, however, is the way it is operationalized. for instance, an award shoudl be given at a sales meeting and publicized in the company newsletter. it should also be done in good taste, because if the award is percieved as tacky, no one will take it seriously.

relationship selling

refers to a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties. (SELLING TO MAINTAIN A GOOD RELATIONSHIP WITH THE BUYER IN THE HOPES THAT IT WILL KEEP A GOOD RELATIONSHIP IN THE LONG TERM AND WANT THE OPPORTUNITIES. TO MUTUALLY BENEFIT ALL PARTIES); relationship-oriented salespeople work with their customers to find mutually beneficial solutions to their wants and needs - because they want to build a long term relationship with them. "work towards long-term agreements and relationships so focus on how to mutually benefit all parties"

financial rewards

salepeople's compensation usually has several components; most salespeople receive at least part of their compensation as a salary. another common financial incentive is a commission. bonuses usually are given only periodically, such as at the end of the year. the bulk of any compensation package is made up of salary, commission, or a combination of the two. the advantage of a salary plan is that salespeople know exactly when they will be paid, and sales managers have more control. salaried salespeople can be directed to spend a certain percentage of their time handling customer service issues. under a commission system, however, salespeople only have one objective - make the sale! thus, a commission system provides the most incentive for the sales force to sell

evaluating salespeople by using marketing metrics

salepeople's evaluation process must be tied to their reward structure. salespeople should be evaluated and rewarded for ONLY those activities and outcomes that fall under their control

inbound marketing

salespeople curate blogs to draw in customers and generate leads

independent agents (also known as manufacturer's representative's, or reps)

salespeople who sell a manufacturer's products on an extended contract basis but are NOT employees of the manufacturer; they are compensated by commissions and do not take ownership or physical possession of the merchandise; manufacturer's representatives are useful for smaller firms or firms expanding into new markets because such companies can achieve instant and extensive sales coverage without having to pay full-time personnel (because they get paid by commission); good sales representatives have many established contacts and can sell mulitple products from noncompeting manufacturers during the same sales call. also, the use of manufacturer's reps facilitates flexibility. it is much easier to replace a rep than an employee and much easier to expand or contract coverage in a market with a sales rep than with a company sales force; company sales forces are more typically used for ESTABLISHED product lines. because the salespeople are company employees, the manufacturer has more control over what they do. in this case, a sales manager can specify exactly what actions a company sales force must take. in contrast, because manufacturer's reps are paid on a commission basis, it is difficult to persuade them to take any action that doesn't directly lead to sales (independent agents/manufacturer's reps are mostly used for companies that are just starting - not company employees, company does not have control over what they do, and company sales forces are mostly used for established product lines - company employees, company has more control over what they do, if they want a specific thing can have them do those things);

telemarketing

similar to a cold call, but it ALWAYS occurs over the TELEPHONE; sometimes professional telemarketing firms rather than the firm's salespeople make such calls.

SALESPEOPLE ARE EXPENSIVE FOR FIRMS; experts estimate that the average cost of a single B2B sales call is about $600; so why include them at all in the marketing channel?

some firms have turned to the Internet and technology to lower the costs of personal selling; other firms, especially retailers, have made the decision not to use a sales force and thus require customers to perform the sales function on their own; BUT firms that continue to use personal selling as part of their integrated marketing communications program recognize the VALUE it adds to their product or service mix; ((((PERSONAL SELLING IS WORTH MORE THAN IT COSTS; personal selling ADDS VALUE by educating customers and providing advice, saving the customer time, making things easier for customers, and building long-term strategic relationships with customers;))) <-important answer to this question

the sales force and corporate policy

sometimes salespeople face a conflict between what they believe represents ethical selling and what their company asks them to do to make a sale (for example, withholding important information from a customer to make a sale: example: should insurance salespeople disclose inadequate hurricane coverage and risk not making the sale?); salespeople must live within their own ethical comfort zone. if any situation is morally repugnant to the salesperson, he or she must question the choice to be associated with such a company; salespeople can also be held accountable for illegal actions sanctioned by the employer (they could get in trouble and not. the employer); both the salesperson AND the insurance dealership could be susceptible to legal action (this is why it is good to work within your own moral compass and not work for a company that does things you do not agree with or think is wrong or illegal)

qualify

the process of assessing the potential of sales leads (how much are they actually willing to buy? how much are they actually a potential customer?)

Responsiveness

the salesperson and support group must be ready to deal quickly with any issue, question, or problem that may arise "responsive"

empathy

the salesperson and support group must have a good understanding of the problems and issues faced by their customers. otherwise, they cannot give them what they want

Reliability

the salesperson and the supporting organization must deliver the right product or service on time "reliable"

salespeople can generate and qualify leads in a variety of ways

they might discover potential leads by 1. talking to current customers, 2. doing research on the Internet, or 3. NETWORKING at events such as trade shows, industry conferences, or chamber of commerce meetings, 4. can also generate leads through cold calls and social media, 5. trade shows also offer an excellent forum for finding leads

personal selling involves a one-to-one, and often face-to-face, encounter with the customer (unlike like other firm communications with customers like advertising which are strategically planned on a corporate level); therefore, sellers' actions are not only highly visible to customers but also to other stakeholders, such as the communities in which they work

this is why it is important to be aware of ethical and legal issues regarding personal selling

the most important activity in the recruiting process is to determine EXACTLY what the salesperson will be doing and what personal traits and abilities a person should have to do the job well

true (might need significant sales experience, with great communication and analytical skills, etc.)

Salespeople Save Time and Simplify Buying

time is money! customers perceive value in time and labor savings; in many grocery and drugstore chains, salespeople employed by the vendor that. supplies the merchandise straighten stock, set up displays, assess inventory levels, and write orders. in some cases, such as bakeries or soft drink sales, salespeople and truck drivers even bring in the merchandise and stock the shelves; these are all tasks that retail employees would otherwise have to do. to appeal to end customers, manufacturers might send salespeople into stores to provide cooking demonstrations or free samples in the case of grocery stores, or trunk or made-to-measure shows in the case of apparel or shoe retailers. in this case, the vendor increases convenience for both its immediate customer (the retailer) and the end consumer (SALESPEOPLE MAKE THINGS EASIER FOR ITS IMMEDIATE CUSTOMER - THE RETAILER - AND THE END CONSUMER.

PREAPPROACH - STEP 2 CONTINUED: having done the additional research, the salesperson ESTABLISHES GOALS for meeting with the customer. it is important that the salesperson knows ahead of time exactly what should be accomplished. for instance, the consulting firm's salesperson cannot expect to get a purchase commitment from the bank after just the first visit, but a demonstration of the system and a short presentation about how the system would benefit the customer would be appropriate (KNOW THE GOALS IN THE PREAPPROACH STAGE AND ALSO BE REALISTIC ABOUT THEM)

true

The Internet, and sites such as LinkedIn and Twitter in particular, have been a boon for generating and qualifying leads - salespeople connect with potential customers through these sites

true

a salesperson's product knowledge and ability to facilitate the sale can make buying a car easy possibly even enjoyable

true

although these are all important tools, they are unlikely to replace cold calling anytime soon, as many customers cannot be reached via social media

true

with geolocators, the mobile CRM systems also can make recommendations to salespeople in the field, such as when they happen to be in proximity to a customer whose purchase history suggests that this customer might be ready to buy again. accordingly, the sales reps likely achieve better sales, which benefits them in the form of increased commissions or bonuses. finally, the increase in sales benefits the firm, which gains not only more sales in the short term but also greatly enhanced data to improve its sales performance in the long term

true

cold calls and telemarketing have become less popular over time, primarily because their success rate is fairly LOW. during cold calls, the salesperson is not able to establish the potential customer's specific needs because the reciever of the call is not expecting it and therefore may not be willing to participate in it; these methods can also be very EXPENSIVE (telemarketing and cold calls can be expensive). also, federal and state governments regulate the activities of telemarketers. federal rules prohibit telemarketing to consumers whose names appear on the national Do-Not-Call list, which is maintained by the Federal Trade Commission. even for those consumers whose names are not on the list, the rules prohibit calling before 8:00am or after 9:00pm (in the consumer's time zone) or after the consumer has told the telemarketer not to call. federal rules also prohibit unsolicited fax messages, calls, or messages to cell phones

true

effective sales demand extensive knowledge about customers, which suggests the need for customer relationship marketing (CRM); CRM demands data because these systems can not work without information being put in to them, for salespeople to take out later as they need it; but convincing salespeople to take time out of their schedules to file CRM reports (rather than engaging in more lucrative sales efforts) has long been a challenge for managers and companies; the challenge has been particular acute for sales reps in the field. because these sales reps rarely come into the office, the firms cannot support them as well in their efforts to make informed pitches to customers, and sales managers have little insight into what the sales reps are doing, when, how, and with whom. not only does this leave the firm unable to monitor its employees, but it also makes the calculation of incentives or bonuses more difficult and less accurate, which ultimately could diminish sales performance overall. in an effort to address these issues, sales companies increasingly are relying on mobile technologies to make the reporting task and updates to the CRM system easy and nearly automatic. rather than waiting until the end of the day - when they may have forgotten some of the details of an interaction with a client, or might forget to file their report altogether - mobile access to the firm's CRM system means that sales reps can input information immediately, possibly even before they leave the client site. some of the best mobile CRM offerings even gather data automatically. for example, mobile apps can gather immediate data about phone calls and emails between the sales rep and each client. these data then get cataloged and entered into the CRM system, without the salesperson needing to do anything further. voice recognition technology also enables them to dictate a summary of their meetings and interactions, without having to fill in forms or write a formal report. all of these technologies in turn help sales managers keep tabs on what sales reps are doing, provide immediate feedback on their successful and unsuccessful efforts, and offer suggestions or training as needed;

true

ethical and legal issues are particularly important for personal selling

true

evaluate and reward salespeople for what they do and NOT for what they DON'T do. the answer is never easy because measures must be tied to performance, and there are many ways to measure performance in a complex job such as selling. for example, evaluating performance on the basis of monthly sales alone fails to consider how profitable the sales were, whether any progress was made to build new business that will be realized sometime in the future, or the level of customer service the salesperson provided. because the sales job is multifacted with many contributing success factors, sales managers should use multiple measures

true

for this reason, firms use ratios such as profit per customer, orders per call, sales per hour, or expenses compared to sales as their objective measures

true

hiring based on misplaced assumptions about gender or other categories can be damaging to the company, as well as discriminatory

true

in a retail setting, however, qualifying potential customers is both dangerous and potentially illegal. retail salespeople should never judge a book by its cover and assume that a person in the store doesn't fit the store's image or cannot afford to purchase there. such actions can quickly rise to the level of unethical and illegal discrimination, as recently alleged by several African American shoppers against well-known retail names as Macy's and Barneys.

true

it is important to ask questions at the beginning of a sales presentation to establish where the customer is in the buying process

true

many firms give candidates personality tests, but they stress different personality attributes, depending on the requisite traits for the position and the personality characteristics of their most successful salespeople (will be different for different firms);

true

more than 11 million people are employed in sales positions in the United States, including those involved in business-to-business (B2B) transactions, such as manufacturer's representatives selling to retailers or other businesses, and those completing business-to-consumer (B2C) transactions, such as retail salespeople, real estate agents, and insurance agents

true

most professions rely on personal selling to some degree

true

personal selling can take place in various situations: face-to-face, via video teleconferencing, on the telephone, or over the Internet

true

sales force requires management

true

salespeople are referred to in many ways: sales representatives or reps, account executives, agents

true

salespeople don't always get the best coverage in popular media; however, there are millions of hardworking professional salespeople who have fulfilling and rewarding careers and add value to their firm and provide value for their customers

true

technology has changed the lives of salespeople and the delivery methods of sales training. companies can conduct distance learning and training through videoconferencing

true

telemarketing is a type of cold call in which salespeople generate or qualify leads on the telephone

true

using the answers to some of the questions the salesperson posed earlier in the meeting, the sales person can clarify the product's advantages over current or past practices, as well as the overall benefits of adopting the new system (or product)(convince them of what it might help the company do or money it will save, etc.)(how it will add value to them)

true

when customers' expectations are not met, they often complain - about deliveries, the billing amount or process, the product's performance, or after-sale services such as installation or training. effectively handling complaints is critical to the future of the relationship. the best way to handle complaints is to listen to the customer, provide a fair solution to the problem, and resolve the problem quickly.

true

when the salesperson has gotten a good feel for where the customer stands, he or she can apply that knowledge to help the customer solve its problem or satisfy its need

true

firms use varied delivery methods to train their salespeople, depending on the topic of the training, what type of salesperson is being trained, and the cost versus the value of the training

true (on-the-job training is good for communicating selling and negotiation skills because managers can observe the sales trainees in real selling situations and provide instant feedback; they can also engage in role playing exercises in which the salesperson acts out a simulated buying situation and the manager critiques the saleperson's performance

subjective measures seek to assess salespeople's behavior: what they do and how well they do it. subjective measures seek one person's opinion about another's performance. thus, subjective evaluations can be biased and should be used cautiously and only in conjunction with multiple objective measures

true (subjective is opinion based and is NOT based on actual numbers or facts)

the best way to nip a postsale problem in the bud is to check with the customer right after he or she takes possession od the product or immediately after the service has been completed. this speed demonstates responsiveness and empathy. it also shows the customer that the salesperson and the firm care about customer satisfaction. finally, a postsale follw-up call, e-mail, or letter takes the salesperson back to the first step in the sales process for intitating a new order and sustaining the relationship.

true (there's a need for person attention and follow-up efforts);

salespeople input customer information into their tablets to develop a customer database for CRM systems

true - back in the day, before technology was available, people would keep track of this information, if it was available at all, using manual systems that each individual salesperson kept such as using a notebook or a series of cards. today, salespeople often can access all thia information immediately and conveniently from their firm's customer relationship management (CRM) system

after salespeople generate leads, they must qualify those leads by determining whether it is worthwhile to pursue them and attempt to turn them into customers

true -> THIS IS WHAT QUALIFYING MEANS

successful salespeople must follow several steps

true; depending the sales situation and the buyer's readiness to purchase, the salesperson might not use every step, and the time required for each step varies with the situation; for example, if a customer goes into The Gap already prepared to purchase some chinos, the selling process will be fairly quick. but if lenovo is attempting to sell personal computers for the first time to your university, the process may take several months (process could be long or quick, depending on the situation; some might have to go through all the steps while others might not have to); if customer is ready to buy or not - might need extra convincing

personal selling also relies on an old-fashioned skill: storytelling

true; even if they use advanced technologies and Internet-based communication media, salespeople must communicate their messages and sales pitches in ways that resonate with their audience of potential customers. virtually everyone uses at least some level of emotional reaction in determining their choices. to appeal to customers, salespeople thus need to tell a story that engages people's imaginations!!!

in B2B settings, the costs of preparing and making a presentation are so substantial that the seller must assess a lead's potential (first, before they decide to make the presentation, don't want to spend all that money and go through all the work for nothing). salespeople consider whether the potential customer's needs pertain to a product or a service. they should assess whether the lead has the financial resources to pay for the product or service (can the lead afford the product? does the customer's needs fit the product? must answer these questions and qualify before trying to sell them the product - could save a lot of time, energy, and money

true; for example, clients looking to sell multimillion-dollar properties want real estate agents to qualify potential buyers first (can they afford it?). such qualifications save both the agent and the seller trouble of showing properties to just curious people who could never actually afford to buy

data driven analytics have changed things with management

true; managers' roles even have become obsolete in some cases, such as when an alogorithm exists to make operational decisions that previously were the responsibility of a sales manager; in cases where technology made take the place, managers may tend to function like coaches or mentors, guiding the teams' existing efforts to complete their diverse, multifunctional job tasks; trends seem clearly to be moving to less hierarchy, fewer managers, more shared authority, and increasing reliance on technological tools. for prospective managers, they also suggest some clear prerequisites: gain some familiarity with agile management, expand information technology and big data skills, and be ready to be flexible when it comes to what the job ultimately will involve.

when the firm has determined how the sales force will be structured, it must find and hire salespeople

true; must be performend carefully so the firm doesn't hire the wrong person - salespeople are very expensive to train

a much less expensive, but for some purposes equally valuable, training method is the Internet

true; online training programs have revolutionized the way training happens in many firms. firms can provide new product and service knowledge, spread the word about changes in company polices and procedures, and share selling tips in a user-friendly environment that salespeople can access anytime and anywhere. distance learning sales training programs through teleconferencing enable a group of salespeople to participate with their instructor or manager in a virtual classroom, and testing can occur online as well. online sales training may never replace the one-on-one interaction of on-the-job training for advanced selling skills, but it is quite effective and efficient for many other aspects of the sales training task

selling well, efficiently, effectively, and with the ability to add value requires thoughtful considerations combined with insights based on experience and perhaps a natural sales ability that gives sellers a good feel for buyers

true; personal selling is inevitably personal (but can also be greatly improved by advanced analytical technologies; (example of IBM's Watson sales tool on page 408 - gives access to powerful computing capabilities - gives massive amounts of data to further present to consumers - Watson lessens the challenges associated with selling by providing more in-depth and actionable information that salespeople and their managers can use - all members of a sales team can access immediately updated information at any time - the analytical capabilities help develop and design new sales initiatives, promotions, and sales plans "which customers are likely to respond to which sales campaigns" with this "pattern selling" approach, the sales patterns can be easily customized for each sales team or for each individual sales rep to help them focus on the customers with the best potential for their. specific product lines, for new engagements or for cross-selling and up-selling to existing accounts) - Watson's output is strongly graphical as well, making it easy for salespeople to gain. a sense of patterns or trends quickly and easily, without having to perform intricate calculations or analyses on their own; the Watson unit dedicated to expanding its abilities even further by, for example, providing sales opportunities with new customers and prescriptions for HOW to sell to new and existing customers in dynamic markets;

in most cases, CRM systems have several components

true; there is a customer database or data warehouse. whether the salesperson is working for a retail store or managing a selling team for an aerospace contractor, he or she can record transaction information, customer contact information, customer preferences, and market segment information about the customer. once the data have been analyzed and CRM programs developed, salespeople can help implement the programs.

in business practice, salesperson evaluation measures can be objective or subjective. sales, profits, and the number of orders represent examples of objective measures (FACTS); although each is somewhat useful to managers, such measures do not provide an adequate perspective for a thorough evaluation because there is no means of comparison with other salespeople

true; two salespeople may have sold close to a similar amount with one more than another, but one territory may be harder, meaning the other person actually did the better job

putting together a sales force from scratch

will you hire your own salespeople, or should they be manufacturer's representatives? what will each sales person's primary duties be? finally, will they work together in teams?

step 5: follow up

with relationship selling, it is never really over, even after the sale is closed. the attitudes customers develop after the sale become the basis for how they purchase in the future. the follow-up therefore offers a prime opportunity for a salesperson to solidify the customer relationship through great service quality.

Step 4: Closing the Sale

without a successful close, the salesperson goes away empty-handed, so many salespeople find this part of the sales process very stressful. although losing a sale is never pleasant, salespeople who are involved in a relationship with their customers must view any specific sales presentation as part of the progression toward ultimately making the sale or building the relationship (failing is just a step in the process to actually succeeding). an unsuccessful close one day may just be a means of laying the groundwork for a successful close during the. next meeting. although the selling process was presented as a series of steps, closing the sale rarely follows so neatly. however, good salespeople listen carefully to what potential customers say and pay attention to their body language. by reading these signals, they can achieve an earlier close (might pick up on these signals and ask for the sale);