Chapter 10

Define each key term you find..
Summarize each term in your own words. List the important points for each term. Give a "real life" example of each term.

Crossword Puzzle

(hover your mouse over the word for a popup definition)  

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Answer the Objectives.

1. Define selling activities.
   The following ten activities are common to nearly all selling jobs:

1. Performing the Sales Function.
2. Working with Orders.
3. Servicing the Product.
4. Servicing the Account.
5. Providing Information to Management.
6. Participating in Conference and Meetings.
7. Training and Recruiting Salespeople.
8. Entertaining Customers.
9. Traveling.
10. Working with Distributors.

2. Discuss characteristics of successful salespeople.
   Sales performance is based on various considerations; to expect any single factor (or even several factors) to adequately explain a complex behavior is expecting too much. Researchers have identified six general characteristics that determine salesperson performance: (1) aptitude, (2) skill level, (3) motivational level, (4) role perceptions, (5) personal characteristics, and (6) adaptability.

   High-performing salespeople do the following:

   1. Represent the interests of their companies and their clients simultaneously to achieve two-way advocacy.
   2. Exemplify professionalism in the way they perform the sales job.
   3. Are committed to selling and the sales process, because they believe the sales process is in the customer's best interest.
   4. Actively plan and develop strategies that will lead to programs benefiting the customer.

   The excellent salesperson is seen by the customer as trustworthy and dependable.

3. Analyze the steps in the personal selling process.
   There are six steps involved in the selling process.
   1. Prospecting is the process of identifying the best potential customers.
   2. The approach entails making contact and establishing a relationship with the customer.
   3. In the sales presentation, the salesperson relays information about the product and its benefits to the buyer.
   4. A well-prepared salesperson anticipates all objections and overcomes the objections with thoughtful, positive responses.
   5. Once the buyer shows a interest in the product, the salesperson must close the sale.
   6. Follow-up is almost as important as getting the order in order to ensure that the customer is satisfied.

4. Discuss the basic functions of sales management.
   Sales management involves acquiring, directing, and stimulating competent salespeople to perform tasks that move the organization toward accomplishment of its objectives and mission. A sales manager translates plans into action, implements sales programs, directs the sales effort, trains salespeople, appraises their performance, determines their compensation, and has a longer-term responsibility for market development and account coverage in his or her area. Sales management involves the performance of five basic functions: (1) planning, (2) organizing, (3) staffing, (4) directing, and (5) evaluating and controlling sales-force performance and satisfaction.
   
5. Analyze the methods of organizing the sales function.

1. geographically

advantages - low cost, no geographic duplication, no customer duplication, fewer management levels

disadvantages - limited specialization, lack of management control over product or customer emphasis

2. by product types

advantages - salespeople become experts in product attributes and applications, management control over selling effort allocated to products

disadvantages - high cost, geographic duplication, customer duplication

3. by market or customer classes

advantages - salespeople develop better understanding of unique customer needs, management control over selling effort allocated to different markets

4. by function

advantages - efficiency in performing selling activities, customer duplication

disadvantages - geographic duplication, need for coordination

6. Discuss the methods of sales force compensation.
   Sales managers use three basic compensation plans: salary plan, commission plan, and a combination plan (salary plus commission). Within the three basic plans, there are many possible combinations involving base earnings and incentive pay. Six of the most common methods of paying the sales force are (1) straight salary, (2) straight commission, (3) draw against commission, (4) salary plus commission, (5) salary plus bonus, and (6) salary plus bonus plus commission.

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Answer the Discussion Questions.

1. Tom Browne has received an offer from Procter and Gamble to join their sales force. Uncertain about personal sales as a choice of a career, he has turned to you for advice. What are the attractive features and misconceptions of personal selling?
2. Dell Computers have traditionally sold their products to business and industry by direct marketing (phone orders). Dell’s marketing manager is considering establishing a sales force to call on major industrial prospects. What are the advantages of this type of promotional strategy?
3. Discuss the general characteristics that a company might use to determine the level of a salesperson’s performance.
4. What is meant by the "modern selling philosophy"? (marketing orientation - satisfy the customer)

Chapter10

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