chapter eight mcgraw-hill/irwin copyright © 2003 by the mcgraw-hill companies, inc. all rights...

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8.1 Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. •Understand the answer to the question, "Are good salespeople born or made?" • Define the characteristics of successful salespeople • Explain the role of sales aptitude in sales performance • Understand the different success characteristics for different sales positions Learning Objectives

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Page 1: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.1

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

•Understand the answer to the question, "Are good salespeople born or made?"

• Define the characteristics of successful salespeople

• Explain the role of sales aptitude in sales performance

• Understand the different success characteristics for different sales positions

Learning Objectives

Page 2: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.2

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Most managers believe that the things a firm does to train and develop it salespeople represent the most critical determinants of their future success.

They also believe that a strong ego, self-confidence, decisiveness, and a need for achievement must be extant in sales force candidates.

Born or Made?

Page 3: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.3

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Variable affecting performance Management actions

Aptitude

Personal characteristics

Skill levels

Role perceptions

Motivation

Organizational and environmental factors

Recruitment/selection policies

Recruitment/selection policies

Training and supervision

Training and supervision

Compensation/ reward systems

Sales force organization

Variables That Cause Differences in Performance

Page 4: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.4

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Past research indicates that factors controlled or influenced by sales mangers -- such as role perception, skills, and motivation -- account for the largest proportion of the variance in sales performance.

These research conclusions suggest that successful salespeople are both born and made.

Variables That Cause Differences in Performance

Page 5: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.5

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

The odds a given salesperson will quit or be terminated in his/her first five years of employment are 50/50.

People lacking the personal traits and abilities to succeed in a sales job tend to become frustrated, to quit . . . or be fired, before training and experience can turn them into productive sales performers.

Costs of Inappropriate Selection

Page 6: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.6

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Aptitude and personal characteristics may place an upper limit on an individual's ability to perform in a sales job.

Enthusiasm consistently ranks among the most important personal attributes in selling.

General sales experience typically means more than specific product or industry experience.

Characteristics of Successful Salespeople

Page 7: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.7

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Personal factors influencing variance in sales performance fall more precisely into these defined groupings:

(a) physical and behavioral characteristics

(b) psychological traits and abilities

Research into Personal Characteristics

Page 8: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.8

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Demographic and Physical Characteristics

•Age, sex, physical appearance

Background and experience

•Personal history and family background, level of education, educational content, sales experience, nonsales work experience

Current status and lifestyle

•Marital/family status, financial status, activities/lifestyle

Categories of Physical and Behavioral Variables

Page 9: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.9

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Aptitude

• Intelligence

• Cognitive Abilities

• Verbal Intelligence

• Math Ability

• Sales Aptitude

Personality

• Responsibility

• Dominance

• Sociability

• Self-esteem

• Creativity/flexibility

• Need for achievement/intrinsic rewards

• Need for power/extrinsic rewards

Skills

• Vocational skills

• Sales presentation

• Interpersonal

• General management

• Vocational esteem

Psychological Traits and Abilities

Page 10: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.10

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

What type of sales representative has a tougher time making sales?

(Percent of respondents indicating it was an issue)

 A sloppily dressed sales rep 94%

An unstylish sales rep (haircut, out of style outfit) 75%

A physically unattractive sales rep 59%

An overweight sales rep 54%

A sales rep with a heavy accent 54%

A very young looking sales rep 32%

An older looking sales rep 8%

The Importance of Image

Page 11: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.11

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

What type of sales representative would you avoid hiring?

(Percent of respondents indicating it was an issue)

A sloppy dresser 80%

A rep who used salty language 78%

A rep with visible body piercing or tattoos77%

An unstylish look 51%

Male overweight 37%

Female overweight 23%

A heavy regional foreign accent 20%

An unattractive female 20%

An unattractive male 13%

A very youthful appearance 12%

Any older look 2%

The Importance of Image

Page 12: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.12

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Percent with College Degree

Industry

Health service 100%

Pharmaceuticals 100

Air transportation 100

Printing/Publishing 84

Rubber/Plastics 83

Manufacturing 78

Electronics 77

Chemicals 73

Business services 72%

Electronic components 67

Communications 56

Banking 46

Construction 40

Trucking/Warehousing 33

Real estate 33

Retail 29

Transportation equipment 28

The Educated Sales Force

Page 13: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.13

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Customers and salespeople were asked, "What kind of rep is most trustworthy?" Salespeople indicated listening skills were most important in building trust with the customer while customers believe product knowledge was the key in winning trust.

Let’s look at the results…

Most Trustworthy

Page 14: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.14

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Characteristic % of Customers % of Salespeople

Product knowledge 79.5% 79.6%

Understands business 63.9 73.1

Reliable 63.1 75.1

Understands customer needs 63.1 85.3

Confidence in product 54.1 63.8

Likable 53.3 55.6

Positive attitude 50.8 71.2

Good listening skills 44.3 87.2

Intelligent 41.8 40.3

Asks good questions 39.3 65.9

Self-confident 22.1 45.6

Well-dressed 14.8 29.1

Most Trustworthy (continued)

Page 15: Chapter Eight McGraw-Hill/Irwin Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 8.1 Understand the answer to the question, "Are

8.15

Chapter Eight

McGraw-Hill/Irwin

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Variables Affecting Performance

Personal history/family background

Marital/family status

Sales aptitude

Dominance

Self-esteem

Sales presentation skills

Interpersonal skills

Type of Product Being Sold

IndustrialGoods

Consumer Goods

Services

 Weak

Weak

Strong

Weak

Strong

Strong

Moderate

Weak

Moderate

Moderate

Weak

Moderate

Moderate

Moderate

Strong

Strong

Weak

Moderate

Moderate

Weak

Weak

Characteristics Related to Sales Performance