Exam 1 (Ch. 1, 2, 3, 4)

Situational approach: Vroom and Yetton model

-GROUP decision making -examines situation structure, info available, and how important acceptance is to implementation -Proposes how much followers should be involved in DM -Benefits: followers typically will be more committed; followers may have additional info that can help make better decisions -Weaknesses: decisions take more time, and can have conflict when course of action is not clear

sales related laws: civil rights act

-Governs hiring practices, among other for sales managers

Contemporary approach: leader-member exchange (LMX) theory

-Unique relationship between a leader and each group member -In-group and out-group (out group more formal, less satisfied and productive) -Led to leadership-making concept: every leader should work to have as many in-group relationships as possible and few no out-group relationships

Closing the sale

-When salesperson asks buyer for commitment -Good close: 1. reinforce reason to buy 2. confirm implementation schedule 3. thanks the buyer 4. ask for a referral

Seamless integration

-a firm's customers can easily shift transactions across various channels -Goal: allow customers to choose the method of doing business that makes most sense for them

Behavioral approach

-consideration behaviors and initiating structure (maintaining good social interaction and relationships with members and build trust and respect) -employee-centered vs. production-centered (more productive leaders were more employee centered) -concern for production, concern for people -Application: engage in behavior addressing both social needs of individuals and task accomplishment and demonstrating MORE CONCERN should result in group satisfaction -Limitations: no theory found one best way to lead, leadership depends upon the characteristics of the group not just the leader

sales related laws: uniform commercial code

-defines key elements of a sale, such as what is a "sale" and a "warranty" -Determines who has the ability to make a binding agreement (agent) -Defines the term sale as the transfer of title from the seller to the buyer in exchange for consideration -One of the most important set of laws salespeople must follow -Legal guide to commercial practices

Leadership practices

-direction -aligning people -motivating and inspiring -change

Utilitarian ethic

-do what has the best outcome for most people -pros and cons: Outcomes, and honorable intent, are important; requires taking responsibility for others; It's unclear who gets to decide what outcomes are "best"

Identify and respond to ethical breaches

-encourage whistle-blowing -use technology to identify questionable activities

Advantages of outsourced sales force

-firms selling costs can be shared with other manufacturers, reducing cost per sales call -Est. relationships with customers from which the manufacturer can benefit -These can yield greater coverage of the market for the manufacturer

Situational approach: Hersey and Blanchard

-leader CAN ADAPT to situation -Must adapt group's level of task competency and commitment -adapt behavior based on directive and supportive behaviors -Approach: directing, coaching, supporting, delegating -Weaknesses: are leaders truly able to diagnose level of development of followers?

Prospect pyramid

-leads -suspects -prospects -customers

Management practices

-planning and budgeting -organizing and staffing -controlling and problem solving -predictability

Dealing personally with ethical breaches

-quit -take a stand -negotiate an alternative -appear to agree

Leadership challenges for the sales executive

-recruiting and selecting good employees -keeping good employees -executing virtual leadership -diversifying the sales force -removing limitations facing females -avoiding ethical mistakes -maintaining motivating sales teams -integrating technology

Misrepresentation

-salesperson exaggerates the benefits and minimizes weaknesses, leading customer to draw to a big decision

Who does the salesperson represent?

-the company -the customer

Multichannel environment

-using a number of methods, or channels to accomplish the selling function -includes all of marketing's efforts, such as Trade shows, web-marketing, and other activities

sales related laws: Can-SPAM act

Federal law prohibiting spam and governing how companies can contact customers; related is the Do Not Call registry

sales related laws: Robinson-Patman Act

Federal law regarding fair pricing

sales related laws: Gram-Leach-Bliley Act

Federal law regarding privacy policies

What is the role of a salesperson?

-Trusted advisor -Be knowledgeable -Know and understand customers wants/needs

Golden rule

-Treat others as you would want to be treated -pros and cons: Personalizes ethical decisions, making it easy to determine what to do; Fails to account for situations in which "others" are in conflict

Conventionalist

-Acts are OK as long as everyone else is doing it -pros and cons: Fails to account for gray areas, in which acts are not specified as either "legal" or "illegal"

Implementation/follow up

-After delivery, ensure that the customer has a good experience with the product/service -Training, service, policies and procedures

Emerging concepts: develop your followers, Jim Collins Level 5 leadership model

-Based on study of leaders of great companies: modest and willful; humble and fearful; set up their successors for greater success; diligent -Individuals level of skills builds successively on skills and abilities of previous levels -Hierarchy describes skills and abilities individuals should possess as they move into more skilled and esteemed Level 5 leadership positions -combines concepts from earlier leadership approach

Outsourcing

-Can outsource call centers -Can outsource different parts of the sales cycles (to different sales organizations) -Often used to: 1. enter new markets 2. keep costs variable (no overhead) 3. leverage market coverage costs (share with others)

Advantages of a company-employed sales force

-Company can exert greater control their efforts -greater control over who is getting hired -focus on only the company's products, whereas an outsourced rep might be free to sell many different companies products

Strategy hierarchy pyramid

-Corporate strategy (top) -Marketing strategy (middle) -Sales strategy (bottom)

The strategy hierarchy

-Corporate strategy encompasses plans and goals for the entire organization -Address questions such as what markets and sourcing options company should engage -Business units create their plans to support the corporate strategy

Protestant ethic

-Do what you can defend to a group of peers -Pros and cons: What's "ethical" is based on the intended, not actual, outcome; Can lead to more concern about doing what can be defended than what is right

Libertine ethic

-Do what you want, as long as it doesn't hurt anyone else -Pros and cons: Outcomes are important, and a responsibility for others is assumed; Can lead to problems when others are harmed indirectly or harm is not obvious

Labor laws

-Fair pay issues, appropriate employee selection and retention issues -Reporting processes and legal requirements for sexual harassment claims

Approach

-First decision a buyer makes is to see you or talk with you -Opening statement must get the buyers attention

Market laws (to promote fair competition)

-Foreign Corrupt Practices Act -Robinson-Patman Act and antitrust acts that forbid price discrimination and noncompeting agreements -Whistle-blower laws

Types of company-employed salespeople

-Inside salesperson: sells at a company's facilities, either by phone or in person -Field rep: sells at the customer's location -Account manager: has responsibility for building sales within specific accounts or accounts within a specific area -Vertical market rep: accounts all operate in the same industry -Retail sales rep: sell to customers who come into stores -Trade rep: sells to organizations in the supply chain, usually retailers -Missionary salesperson: sells to people who recommend or prescribe a product to others but do not personally use it

Est. the parameters of the firm's strategy: the Mission Statement

-Inspire the members of the organization -give purpose to their actions -guide their decision-making -serve as a standard against which decisions can be weighed -once the mission statement objectives are set, strategy can be created

Due process systems for responding to ethical breaches

-Investigation & punishment: upper management investigates potential violations, determines guilt, and assesses punishment to the guilty -Grievance & arbitration: guilt and punishment investigated and discussed by progressively higher levels of management and labor -Mediator/counselor: manager investigates, leads discussion, builds consensus about the potential guilt of an accused person and need for changes in organizations practices/policies -Employee-board: mediator/counselor role taken on by board of accused employee's

What is leadership?

-Is a process -Occurs in a group -involves influence -involves movement toward a goal

Contemporary approach: transformational leadership theory

-Leader is determined and has charisma to inspire, change, or otherwise transform followers -Stimulate followers intellectually, encourage them, support development -Give personal attention and make each other feel valued and important -Followers trust, respect, and want to emulate leaders -Positively correlates with job satisfaction and better performance

Emerging concepts: develop your followers, Robert Greenleaf Servant Leadership model

-Leaders should serve their followers, set an example -emphasizes collaboration, empathy, and ethical use of power -Listening, empathy, healing, awareness, persuasion, stewardship, commitment to growth of people, building community

Situational approach: Fred Fiedler - Contingency theory of leadership

-Leaders style is stable and not open to major changes -Only the situation can change, and this impacts effectiveness -Approach focuses on: leader-member relations, task structure, and leader power -Weaknesses: findings not replicated; doesn't consider that a leader can learn and adapt to situation

boundary spanner

-Operates both company and customer of organizations boundaries -Because salespeople are boundary spanners, they encounter ethical dilemmas externally with customers and internally with other employees

Trait approach

-People are born with traits that help develop leadership skills (intelligence, self-confidence, determination, integrity, sociability) -Limitations: lacks a universal list of traits; not evident which trait is more important and how they interact; traits and their strength change

Code of ethic

-Provides: salesperson and other employees with guidelines and standards for conduct -Helps: salespeople inform others that they intend to conduct business in an ethical way -Supports: salespeople's intentions to remain ethical, offering salespeople an "out" when under pressure -Attracts: high-quality salespeople

Strategies to reduce sales force costs without sacrificing performance

-Purifying: shifting low value or easily automated activities to lower-cost alternatives -Outsourcing: hiring someone outside the company to carry out a task or set of tasks

Handling objections

-Reasons a buyer gives for declining to buy your product -Can occur at any time -Salesperson should find out root of issue and resolve it

Bribery

-Salesperson attempts to influence a buyer unfairly by giving them something in return of something else -Companies choose not to accept gifts so they won't have any unfair biases

Needs Identification

-Salesperson confirms prospect is MAD -There are 3 elements 1. Questioning 2. Identification of DM 3. Pre-commitment

Presentation

-Salesperson describes the features and benefits and how it meets the buyers needs -Feature, evidence, benefit, and agreement

Sexual harassment

-Salesperson experiences unwanted attention or physical contact

Privacy

-Salesperson fails to protect the privacy of another customer by talking about their private info

Stealing

-Salesperson fails to work a full day, stealing time -Salesperson pads expense reports

Claiming credit

-Salesperson steals other people's leads -Salesperson misrepresent location of customer to receive credit for an order belonging to someone else

Pre-approach

-Salesperson tries to learn everything they can about the account -Can take a considerable amount of time

US Federal Sentencing guidelines (1987)

-Set of suggested guidelines for sales organizations developing programs for preventing, detecting, and halting unethical or illegal misconduct by their employees -Sales leaders must clearly and regularly remind salespeople of the guidelines, monitor activity, and can't say one thing and do something else

Areas to align in an organization

-Technology: software system used by salespeople also supports marketing -Processes and Goals: management working together to reach a common goal -Sales metrics: metrics & sales have same sales targets for a new product

Market imperative approach

-The market will determine what's right -Pros and cons: Provides clear responsibilities for individuals; Can devolve into "might is right" scenario

Understanding leadership: a historical perspective of approaches

1. trait: 1900s-1940s, 2000s; these are the traits you need to be a leader 2. behavioral: 1950s-1960s; this is how leaders behave 3. Situational: 1960s-1970s; assess the situation and adjust behavior to it 4. Contemporary: 1980s-1990s; motivate your followers through your leadership 5. Emerging: 1990s-2000s; develop your followers

types of outsourced salespeople

1. Mfg rep, mfg agent rep: independent contractor who does not take ownership of the product and does not maintain an inventory 2. Distributor: sells for many manufacturers and takes ownership of products, sells them on consignment, or otherwise maintain an inventory -Broker: represents either buyer or seller and sometimes both, carries and inventory of products but does not take ownership of them

4 aspects of being a sales manager

1. coaching: see people improve 2. developing _______ and delegating the responsibility for implementation to others 3. motivating: figuring out how to motivate people, some who are older than you 4. convincing: convincing others what is right for the sales force is right for their departments too

8 steps of the selling approach

1. prospecting 2. pre-approach 3. approach 4. needs-identification 5. present 6. handle objections 7. close 8. implement/follow-up

Alignment occurs at 3 levels

1. strategic: executives create 2. tactical: managers support 3. operational: salespeople engage

Prospecting

A prospect is a mad buyer -the Money to spend -the Ability to buy -the Desire to buy it

Emerging concepts: develop your followers, Steven Covey Seven Habits of Highly Effective People

People-centered leadership model 1. be proactive 2. begin with the end in mind 3. put first things first 4. think win-win 5. seek first to understand, then to be understood 6. synergize 7. sharpen the saw 8. Find your voice and inspire others to find theirs

sales related laws: business defamation

State laws that govern what businesses can say about competitors

What is the most expensive channel?

The sales channel

sales related laws: foreign corrupt practices act

US law that makes bribery and other activities illegal in other countries for US companies