Fundamentals of Selling

Why So Many People Take Sales Courses ?

They want to improve their communication skills to be more successful in both their personal and business lives.

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Table of Contents

Part1: Selling as a Profession

Chapter 1: The Life, Time, and Career of the Professional Salesperson

Chapter 2: Relationship Marketing: Where Personal Selling Fits

Chapter 3: Ethics First . . . Then Customer relationships

Part 2: Preparation for Relationship Selling

Chapter 4: The Psychology of Selling: Why People Buy

Chapter 5: Communication for Relationship Building: It's Not All Talk

Chapter 6: Sales Knowledge: Customers, Products, Technologies

Part 3: The Relationship Selling Process

Chapter 7: Prospecting – The Lifeblood of Selling

Chapter 8: Planning the Sales Call Is a Must! Chapter 9: Carefully Select Which Sales Presentation Method to

Use

Chapter 10: Begin your Presentation Strategically

Chapter 11: Elements of a Great Sales Presentation

Chapter 12: Welcome Your Prospect's Objections

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Chapter 13: Closing Begins the Relationship

Chapter 14: Service and Follow-Up for Customer Relation

Part 4: Managing Yourself, Your Career, and Others Chapter 15: Time, Territory, and Self-Management: Keys to

Success

Chapter 16: Planning, Staffing, and Training Successful Salespeople

Chapter 17: Motivation, Compensation, Leadership, and Evaluation of Salespeople

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Part1Selling as a Profession

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Chapter 1

The Life, Time, and Career of the

Professional Salesperson

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Chapter 1

The Life, Time, and Career of the

Professional Salesperson

What is Selling?

Many people consider selling and marketing synonymous terms.

However, selling is actually only one of many marketing components.

In business, A traditional definition of personal selling refers to the personal communication of information to persuade a prospective customer to buy something – a good, service, idea, or something else – that satisfies that individual's needs.

This definition of selling involves a person helping another person.

The salesperson often works with customers to examine their needs, provide information, suggest a product to meet their needs, and provide after - the – sale service to ensure long- term satisfaction.

The definition also involves communications between seller and buyer.

The salesperson and the buyer discuss needs and talk about the product relative to how it will satisfy the person's needs.

Everybody Sells : Selling is not just for salespeople; it is must for everyone.

From an early age, you are developing communications techniques for trying to get your way in life.

You are involved in selling when you want someone to do something.

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A New Definition of Personal Selling

Refers to the personal communication of information to unselfishly persuade a prospective customer to buy something – a good, a service, or something else – that satisfies that individual's needs.

The new definition inserts the word unselfish into the traditional definition of personal selling.

When the word unselfishly is added to the definition, it makes a big different in how someone might look at selling.

The word unselfish tells salespeople to be caring toward customers and to serve – help – the person or organization without expecting to get something in return.

The Golden Rule of Personal Selling

Refers to the sales philosophy of unselfishly treating the others as they are would like to be treated.

The more the salesperson considers the customer's interest, the better the customer service.

The Golden Rule of Personal Selling are prescribe guide for conduct or action.

The Golden Rule is all about trying to keep somebody else warm.

This important concept will be applies to personal selling because it is effective in explaining differences in salespeople and explain why

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many people have a negative view of some salespeople and a positive view of other salespeople.

Would you want to be the Traditional, the Professional, or the Golden Rule Salesperson? why?

The difference between Traditional Salespeople, Professional Salespeople and Golden rule Salespeople

Traditional Salespeople

Professional Salespeople

Golden rule Salespeople

Do what they think they can get away with.

Guided by self-interests

Attribute results to personal efforts.

Seek recognition for efforts; sharing not important. Pride and ego driven

Money is life's main motivator

Do what they are legally required to do.

Take care of customers

Attribute results to personal effort, employer, customers, economy

Enjoy recognition, may share if it suits their purpose. Pride and ego driven

Money is important, but not to the

Do the right thing.

Find others' interest most important.

Attribute results to others.

Feel that an individual's performance is due to others, thus not motive by pride and ego.

Service most important; money is to be shared

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customer's detriment

Why Choose Sales Career?

Six major reasons for choosing a sales career:

1)The opportunity to provide service to others

Service refers to makes a contribution to the welfare of others.

2) The wide variety of sales jobs available

Salespeople are a vital element in the firm's effort to marketing goods and services profitability.

So that most companies presents a large number of career opportunities.

Types of sales job

Most salespeople work in one of three categories:As a retail salesperson, a wholesaler's salesperson, or a manufacturer's sales representative

These categories are classifies according to the type of products sold and the salesperson's type of employer.

Selling in Retail

A Retail Salesperson sells goods or services to consumers for their personal, non-business use.

Selling for a wholesaler

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Wholesalers (also called distributors) buy products from manufacturers and other wholesalers and sell to other organizations.

A whole salesperson sells products to parties for: Resale, such as grocery retails buy items and selling these items to the consumers.Use in producing other goods or services, such as a home builder buying electrical and plumbing supplies.

Operating an organization, such as the schools buy the supplies

Selling for Manufacturer Manufacturers' salespeople work for organizations producing the product.

The types of manufacturer's representative positions range from people who deliver milk and bread, to specialized salesperson selling highly technical products.

3) Freedom of Action

A sales job provides possibly the greatest relative freedom of any career.

Job duties and sales goals are explained by the managers , and Salespeople are expected to carry out their job duties and achieve goals with minimum guidance.

4) Job Challenge

Salespersons often deal with many of different people and firm over time, this environment adds great variety to a sales job. It is much like operating your own business without the burdens of true ownership.

5) Opportunities for Advancement Are Great

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Successful salespeople have many opportunities to move into top management positions.

Beginning as a salesperson allows person to:

* Learn about the attitudes and activities of the company's salespeople.

* Become familiar with customer attitudes toward the company, its products, and its salespeople.

* Gain first-hand knowledge of products and their application, which is most important in technical sales.

* Become seasoned in the business world.

6) The rewards from a sales career

Both financial rewards and non-financial rewards, such as the great challenge and the feeling of making a valuable contribution to their salespeople and to the company

In addition to performance, the higher the sales position the greater benefits offered.

The financial rewards

Many professional salespeople have opportunities to earn large salaries, their salaries average even higher than salaries for other types of workers at the same organizational level.

Non-financial Rewards

Sometimes called psychological income or intrinsic rewards, it is generate by the individual, not given by company.

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Successfully meeting the challenges of the job produces a good feeling of self-worth, A selling career allows to experience these good feelings and intrinsic rewards daily.

Salespeople often report that the non-financial rewards of their jobs are just as important to them as financial rewards.

Personal characteristics needed for a sales career.

Any discussion of what it takes to be successful in a sales job should have including these sales personal characteristics:

Caring, Joy, and Harmony

Today's salesperson needs personal characteristics that allow for true caring for customers, through caring comes the joy of helping others, the caring attitude helps to create harmony in the relationship.

Patience, Kindness, and Moral Ethics

Salespeople are often under pressure to make the sale today! They need to be able to handle the pressure to sell now through demonstrating patience in the working relationship with the customer.

Having patience the customers shows the salesperson understands the customer's needs and wants to help (kindness).

When salespeople show that the customer comes first, people are more likely to trust them, the salesperson's actions show that she or he is a morally ethical person.

Faithful, fair, self-controlled

The person who cares, like the job, kind, morally ethical is certainly someone who will be faithful in taking care of customers.

Faithfulness shows the employer, customers, and competitors that the salesperson is fair and kind. Customers can trust this person.

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Self-control concerns our emotions, passions, and desires, which is the most difficult trait for salesperson to develop.

Sales Jobs Are Different

Selling is hard work! It requires intelligence, the desire to achieve, and the ability to overcome difficulties. So that sales jobs are different from other jobs in several ways:

* Salespeople represent their companies to the outside world. Consequently, opinions of a company and its products are often formed from impressions left by the sales force.

* Other employees usually work under close supervisory control, whereas the outside salesperson typically operates with little or no direct supervision.

Moreover, to be successful, salespeople must often be creative, persistent, and show great initiative – all of which require a high degree of motivation.

* Salespeople probably need more tact, diplomacy, and social poise than other employees in an organization.

Many sales jobs require the salesperson to display considerable emotional and social intelligence in dealing with buyers.

* Salespeople are among the few employees authorized to spend company funds. They spend this money for entertainment, transportation, and other business expenses.

* Some sales jobs frequently require considerable traveling and time spent away from home and family.

What Does A Professional Salesperson Do?

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The salesperson's roles or activities can vary from company to another, depending on whether sales involve goods or services, the firm's market characteristics, and the location of customers.

Most people believe that a salesperson only makes sales presentations, but there is much more to the job than person-to-person selling.The salesperson functions include planning, organizing, and executing activities that increase sales and profits.

The salesperson performs the following functions:

1) Creates New Customers

In order to increase sales and replace customers that will be lost over time, many types of sales jobs require a salesperson to prospect.Prospecting is the lifeblood of sales because it identifies potential customers.

2) Sells More to Present Customers

Tomorrow's sales come from selling to new customers and selling to present customers again.

3) Builds Long-Term Relationships with Customers

Earning the opportunity to sell a present customer more product means the salesperson must have a positive, professional business relationship with people and organizations who trust the salesperson and the products purchased.

4) Provides Solutions to Customers' Problems Customers have needs that can be met and problems that can be solved by purchasing goods or services.Salespeople seek to uncover potential or existing needs or problems and show how the use of their products or services can satisfy needs or solve problems.

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5) Provides Service to Customers

Salespeople provide wide range of services, including handling complaints, providing samples, suggestion business opportunities, and developing recommendations on how the customer can promote products purchased from the salesperson.

6) Helps Customers Resell Products to Their Customers

A major part of many sales jobs is the salesperson to help wholesalers and retailers resell the products that they have purchased.The salesperson helps wholesales customers sell products to retail customers and helps retail customers sell products to consumers.

7) Helps Customers Use Products after purchase

The salesperson's job is not over after the sale is made. Often, customers must be shown how to obtain full benefit from the product.

8) Builds Goodwill with Customers

A selling job is people oriented, entailing face-to-face contact with the customer. Many sales are based, to some extent, on friendship and trust.

The salesperson needs to develop a personal, friendly, businesslike relationship with everyone who may influence a buying decision.

This ongoing part of the salesperson's job requires integrity, high ethical standards, and a sincere interest in satisfying customers' needs.

9) Provides Company with Market information

Salespeople provide information to their companies on such topics as competitors' activities, customers' reactions to new products,

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complaints about products or policies, market opportunities, and their job activities.This information is so important for many companies that their salespeople are required to send in weekly or monthly reports on activities of the firm's competition.

Selling is an art and science

Selling is both an art and a science, it is an art because many skills cannot be learned from a textbook, many skills- such as understanding buyers' nonverbal communication messages, listening, handling objections, these skills are learned through experience.

Selling is also a science because a growing body of knowledge and objective facts describes selling.

A formal course work in sales can help a salesperson become more competent and be prepared for challenges of the future.

The study of selling helps people see and understand things about sales that others cannot.

Learning Selling Skills

Training helps salespeople acquire the conceptual, human, and technical skills necessary for selling.

Conceptual skills

Conceptual Skills is the ability to see the selling process as a whole and the relationship among its parts, and it is involve the seller's thinking and planning abilities.

Human Skills

Human Skill is the seller's ability to work with and through other people.

Technical Skills

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Technical Skill is the understanding of and proficiency in the performance of specific tasks.

Technical skill includes specialized knowledge, analytical ability, and the competent use of tools and techniques to solve problems in that specific discipline.

Preparing for the 21 st century

Salespeople will continue to rely heavily on their technical, human, and conceptual skills; however, they will apply them in different ways.

Major changes occurring today will continue to occur in the distant future and require salespeople to be knowledgeable in areas they didn't need to know about only a few years ago, these include (1) international/ global selling, (2) diversity of salespeople and customers, (3) customer partnerships, (4) technology, and (5) ethics.

(1) International/ global selling

Salespeople need to think globally because companies are enmeshed with foreign competitors, suppliers, and customers.

Successful salespeople of tomorrow will be able to cross borders, speak other languages, and understand cultural differences.

(2) Diversity of salespeople and customers

As the general population becomes more diverse, so does the workforce. With more diversity in the workplace comes more diversity in the seller's customers.

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(3) Customer Partnerships Finding a new customer is much harder than keeping an old one.

The buyer and seller know each other, trust each other, and realize by working together both benefit.

(4) Technology used by salespeople

To better doing their jobs and service customers, Salespeople are going high technology which becoming part of selling process.(5) Ethics

We have a deep personal need for meaning in our lives and a need to makes contribution to society. We should ask ourselves serious, personal questions as:

Who am I?Why am I here?What should I do with my life?What do I have to offer?Does anyone else feel like what I do?

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Chapter 2Relationship Marketing

Where Personal Selling Fits

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Chapter 2

Relationship Marketing Where Personal Selling Fits

Relationship marketing

What is marketing?

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing involves a diverse set of activities directed at a wide range of goods, services, and ideas.

These activities involve the development, pricing, promotion, and distribution of want-satisfying goods and services to consumers and industrial users.

Customer orientation’s evolution

The production concept

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Before the great depression of the 1930s, a common saying in industry was,” Build a better good, and the world will beat a path to your door”.

Companies were basically production oriented.

In those days, few firms had marketing departments, and many did not even have a formal sales department.

The selling concept

By the early 1940s, it become clear that the attitude and needs of the consumer had changed, a few years after the war, consumers had many products to choose from and firms found they had to go to the consumer, instead of waiting for consumers to buy.

Companies still produced goods with little regard for the consumers’ needs. However, they recognized that personal selling and advertising were important selling methods.

The Marketing concept

Beginning in the 1950s, marketing, rather than selling, became the focus of business sales activities.

As businesspeople recognized that marketing was vitally important to the success of a firm, the marketing concept has three fundamental beliefs:

- All company planning and operating operations should be customer oriented.

- The goal of the firm should be profitable sales volume and not just volume for the sake of volume alone.

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- All marketing activities in a firm should be organizationally coordinated.

Selling Concept Marketing Concept1. Emphasis is on the

product.

2.Company first makes the product and then Figures out how to sell it

3. Management is sales-volume oriented.

4. Planning is short-run, in terms of today’s and markets.

5. Stresses needs of seller

1. Emphasis is on customers’ wants.

2. Company first determines customers’ wants and Then figures out how to make and deliver a product to satisfy those wants.

3. Management is profit oriented.

4. Planning is long- run, in term of new products, Tomorrow’s, and future growth.

5. Stresses wants of buyers

Marketing importance in the firm

Marketing considerations should be the most critical factor guiding all short-range and long-range planning in any organization.

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Marketing group is the link between customers and the organization. Salespeople are part of marketing. They are in direct contact with customers.

Marketing people typically have these four basic objectives to accomplish:

1. Maximize the sales of existing products in existing markets.

2. Develop and sell new products.

3. Develop new markets for existing or new products.4. Provide the quality of service necessary for customers to be

satisfied with their transactions and to continue doing business with the organization.

Essentials of a firm's marketing effort

The essentials of a firm's marketing effort include their abilities (1) to determine the needs of their customers and (2) to create and maintain an effective marketing mix that satisfies customer needs.

Marketing mix consists of four main elements- product, price, place or distribution, and promotion.

It is the marketing manager's responsibility to determine how to use each element in the firm's marketing efforts.

The 4 Ps of Marketing:

The four Ps of marketing (product, price, place, and promotion) aid salesperson's to selling efforts.

The salesperson's organization provides the product to sell, at a price and place to be delivered or for pickup.

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Often a company's promotions inform the buyers about the product.

The salesperson personally contacts the buyer to analyze needs, present product benefits, and gain commitment or close the sale, and to provide service to ensure customer satisfaction.

Together marketing and personal selling provide the needed service for customers to build long-term relationships.

(1) Product: It is more than you think

A good is a physical object that can be purchase like a house or a car.

A service is an action or activity done for others for a fee like lawyers or teachers.

The term product refers to both goods and services.

A product is a bundle of tangible and intangible attributes, including packaging, color, and brand, plus the services and even the reputation of the seller.

People buy more than a set of physical attributes; they buy-satisfaction, such as what the product will do, its quality, and the image of owing the product.

There are two general types of products:

Consumer products are produced for, and purchased by, households or end consumers for their personal use

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Industrial products are sold primarily for, use in producing other products.

(2) Price : it is important to success

The corporate marketing department also determines each product's initial price.

This process involves establishing each product's normal price and possible special discount prices.

Since product price often is critical to customers, it is an important part of marketing mix.

Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product.

(3) Distribution : it has to be available

The marketing manager also determines the best method of distributing the product.

Distribution refers to the channel structure used to transfer products from an organization to its customers.

It is important to have the product available to customers in a convenient and accessible location when they want it.

Customers can be individuals or organizations, customers fall into one of three groups: (1) households, (2) firms, and (3) governments.

A household refers to a decision-making unit buying for personal use. Some households consist of a single person whereas others consist of families. A firm is an organization that produces goods and services, all producers called firms.

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A government is an organization that has two functions: the provision of goods and services to households and the redistribution of income and wealth.

(4) Promotion: you have to tell people about it

Promotion, as part of the marketing mix, increases company sales by communicating product information to potential customers.

The four basic parts of a firm's promotional effort are (1) personal selling, (2) advertising, (3) publicity, and (4) sales promotion.

Promotion educates customers about the product's features, advantages, and benefits; tells them where to buy it; and makes them aware of its price versus value.

The marketing manager determines what proportion of the firm's budget will be allocating to each product and how much emphasis on each of the promotional variables will be give to each product.

Promotional activities:

Personal selling: Personal communication of information to unselfishly persuade a prospective customer to buy something- a good, service, idea, or something else- that satisfies an individual’s needs.

Advertising, non-personal communication of information paid for by an identified sponsor such as an individual or an organization. Modes of advertising include television, radio, direct mail, catalogs, and newspapers.

Publicity, Non-personal communication of information that is not for by an individual or organization, Information appears in media such as television, radio, and newspapers.

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Sales promotion, involve activities or materials used to create sales for goods or services.

Two types of sales promotion are consumer and trade sales promotion .Consumer sales promotion includes free samples, coupons, contests, and demonstrations to consumers.

Trade sales promotion encourages wholesalers and retailers to purchase and to sell aggressively using devices such sales contests, displays, special purchase prices, and free merchandise.

Relationship marketing

Organizations today have targeted new and present customers. The emphasis is shifting from selling customer today to creating customers for tomorrow. Thus, business is thinking more long term than short term.

Relationship marketing is the creation of customer loyalty. Organizations use combinations of product, price, distribution, promotions, and service to achieve this goal.

Relationship marketing is based on the idea that important customers need continuous attention.

A major issue in an organization’s relationship marketing program is the role of the sales force.

Firms use salespeople in many ways. However, these four basic questions are guidelines that define the role of the sales force:

1. How much selling effort is necessary to gain and hold customers?

2.Is the sales force the best marketing tool, compared to advertising and other sales promotion methods, in terms of cost and results?

3. What type of sales activities- for example, technical assistance, frequent or infrequent sales calls- will be necessary?

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4. Can the firm gain strength relative to its competition with its sales force?

The answers to these questions come largely form an analysis of competition, the target markets, and the firm’s product offerings. This helps determine (1) sales force objective,(2) the level of resources-such as personnel and money- allocated to sales force activities, and (3) the importance of personal selling in the marketing mix.

Chapter 3

Ethics First

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Then Customer relationships

Chapter 3

Ethics First

Then Customer relationships

Ethics First….Then Customer Relationships

The Organization’s Environment is a major influence on how the firm sells its products. Social, ethical, and legal (SEL) influences and considerations surround the firm's product, price, place, and promotion.

* Management’s social responsibilities

The concept of corporate social responsibility is easy to understand; it means distinguishing right from wrong and doing right.

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The formal definition of social responsibility is management’s obligation to make choices and take actions that contribute to the welfare and interest of society as well as to those of the organization.

Organizational Stakeholders

The stakeholders are any groups inside or outside the organization's that has a stake in the organization’s performance. Each stakeholder has a different interest in the organization.

Major stakeholders in the organization’s performance

(CCC GOMES) Customer, Community, Creditors, Government, Owners, Managers, Employees, Suppliers

The organization’s main responsibilities

Once a company is aware of its stakeholders, what are its main responsibilities to them? Companies have four types of responsibilities: (1) economic, (2) legal, (3) ethical, and (4)

discretionary.Economic Responsibilities ( be profitable)

The business institution is economic unit of society. Its responsibility to produce the goods and services that society wants and to maximize profits for its owners and shareholders

Legal responsibilities

All modern societies lay down ground rules, laws, and regulations that organizations expected to follow.

Legal responsibility defines what society deems as important with respect to appropriate corporate behavior.

Organizations expected to fulfill their economic goals within the legal framework.

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Ethical responsibilities

Ethical responsibilities include behaviors that not necessarily codified into low and may serve the corporation’s direct economic interest.

To be ethical, organizational decision makers should act with equity and fairness.

Discretionary responsibilities

Discretionary responsibility is purely voluntary and guided by a company's desire to make social contributions not mandated by economics, law, or ethics.

Discretionary activities include generous philanthropic contributions that offer no monetary return to the company and not expected.

Discretionary responsibility is the highest criterion of social responsibility, because it goes beyond societal expectations to contribute to the community's welfare.

How to demonstrate social responsibility

A corporation can demonstrate social responsibility in numerous ways, including these:

1. Taking corrective action before it is required

2. Working with affected constituents to resolve mutual problems

3. Working to establish industry-wide standards and self- regulation

4. Publicly admitting mistakes

5. Getting involved in appropriate social programs

6. Helping correct environmental problems

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7. Monitoring the changing social environment

8. Establishing and enforcing a corporate code of conduct

9. Taking needed public stands on social issues

10. Striving to make profits on an ongoing basis

Economic, legal, ethical, and discretionary responsibilities to stakeholders are important concerns organizations must face.

Societies is demanding more responsible actions of organizations, particularly regarding their ethical conduct

What influences ethical behavior?

Organizations are composed of individuals. These individuals’ morals and ethical values help shape those of the organization.

Critical to making decisions in an ethical manner is the individual integrity of the organization’s managers, especially those in top management positions.Thus, two major influences on the ethical behavior of sales personnel are employees and the organization itself.

Employees and managers alike, bring certain beliefs about the world to a job. These beliefs direct our daily decisions.

The levels of moral development

Level one: pre-conventional .

At the pre-conventional moral development level, an individual acts in his or her own best interest and thus follows rules to avoid punishment or receive rewards. This individual would break moral and legal laws.

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In making an ethical or moral decision, salesperson at this level might ask,” what can I get away with?”

Level Two: Conventional.

At the conventional moral development level, an individual conforms to the expectations of others, such as family, friends, employer, boss, or society, and upholds moral and legal laws.

A salesperson at this level might ask,” What am I legally required to do?” when making an ethical or moral decision.

Level Three: principled.

At the principle moral development level, an individual lives by an internal set of morals, values, and ethics regardless of punishments or majority opinion.

The individual would disobey Orders, Laws, and Consequences to follow what he or she believes is right.This person follows the golden rule. When making an ethical or moral decision a salesperson at this level might ask” What is the right thing to do?

The majority of sales personnel, as well as in general, operate at the conventional level. However, a few individuals are at level one, and it is estimated that less than 20 percent of individuals reach level three.

* Management's Ethical Responsibilities

Ethics are the codes of moral principles and values that govern the behaviors of a person or a group with respect to what is right or wrong.

Ethics set standards for what is good or bad in conduct and decisions making.

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Many companies and their sales personnel get into trouble by making the mistaken assumption that if it's not illegal, it must be ethical.

Companies can use code of ethics and their corporate culture to govern behavior, thereby eliminating the need foe additional laws governing right and wrong.

What is ethical behavior?

Ethical behavior refers to treating others fairly. Specifically, it refers to:

- Being honest and truthful

- Maintaining confidence and trust

- Following the rules

- Conducting yourself in the proper manner

- Treating others fairly

- Demonstrating loyalty to company and associates

- Caring your share of the work and responsibilities with most effort

What is an ethical dilemma?

Because ethical standards are not classified, disagreements and dilemmas about proper behavior often occur.

An ethical dilemma arises in a situation when each alternative choice or behavior has some undesirable elements due to potentially negative ethical or personal consequences.

Ethics in dealing with salespeople

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Sales managers have both social and ethical responsibilities to sales personnel.

Salespeople are a valuable resource;

They are recruited, carefully trained, and given important responsibility,

They represent a large financial investment and must be treated in a professional manner.

The company may place managers and /or salespeople in positions that force them to choose among compromising their ethics, not doing what is required, or leaving the organization.

The situations arise wherein it is difficult to say whether a sales practice is ethical or unethical.

Many sales practices are in a gray area somewhere between completely ethical and completely unethical.

Five ethical considerations sales managers face the level of sales pressure to place on a salesperson.

1. Level of sales pressure

What is acceptable level of pressure to place on salespeople?

Some managers motivate their people to produce at high levels without applying pressure whereas others place tremendous pressure on salespeople to attain sales beyond quotas, managers should set realistic and obtainable goals.

2. Decisions affecting territory

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Companies must deal with their employees in a fair and straightforward manner.

It would have been better for managers of these salesperson to go to their hometowns and explain the changes personally. Instead, they treated the salespeople unprofeesionally.

3. To tell the truth

Do you tell the truth when you fire a salesperson?

One manager put it this way: I feel he can do a good job for another company. I don’t want to hart his future.

4. The ill salesperson

Once the illness has a negative effect on business, the salesperson is taken out of the territory. Sick leave and workers’ compensation often cover expenses until the salesperson recovers.

The manager who shows a sincere, personal interest in helping the ill salesperson greatly contributes to the person’s chances recovery.

5. Employee rights

The sales manager must be current on ethical and legal considerations regarding employee right and must develop strategies for the organization in addressing those rights.

Employee rights are rights desired by employees regarding their job security and their treatment by employers while on the job, irrespective of whether those rights are currently protected by law or collective bargaining agreements of labor unions.

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Companies must recognize these important strategic purposes served by respecting employee rights:

- Providing a high quality of work life

- Attracting and retaining good sales personnel. This makes

recruitment and selection more effective and less frequent.

- Avoiding costly back-pay awards and fines

- Establishing a match between employee rights and obligations and

employer rights and obligations

Salespeople’s ethics in dealing with their employers

Both salespeople and sales managers may occasionally misuse company assets, moonlight, or cheat. Such unethical practices can affect co-workers and need to be prevented before they occur.

- Misusing company assets

Company assets most often misused are automobile, expense accounts, samples, and damaged-merchandise credits. All can be used for personal gain. - Moonlighting

Salespeople are not closely supervised and, consequently, they may be tempted to take a second job- perhaps on company time. - Cheating

A salesperson may not play fair in contests. The customer holds the merchandise until payment is due and then returns it to the company after the contest is over. The salesperson also may overload the customer to win the contest.

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- Affecting other salespeople

Often, the unethical practices of one salesperson can affect other salespeople within the company.

Someone who cheats in winning a contest is taking money and prizes from other salespeople.

A salesperson also may not split commissions with co-workers or may take customers away from co-workers.

- Technology theft

A salesperson or sales manager quits, or is fired, and takes the organization’s customer records to use for his or her or a future employer’s benefit.

Ethics in dealing with customers

Ethical policies called business conduct guidelines, these guidelines thoroughly discuss business conduct and clearly state what is proper conduct and how to report improper conduct and how to report improper conduct.

All sales personnel review them and even sign a statement that they understand the guidelines.Numerous ethical situations may arise in dealing with customers, and sales organizations may create specific business conduct guideline to deal with them.

Some common problems sales personnel face include bribes, misrepresentation, price discrimination, tie-in sales, exclusive dealership, reciprocity, and sales restrictions.

- Bribes

A salesperson may attempt to bribe a buyer by offering money, gifts, entertainment, and travel opportunities.

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Many large companies have taken steps to control giving and receiving gifts.

- Misrepresentation

Today, even casual misstatements by salespeople can put a company on the wrong side of the law.

Most salespeople are unaware that they assume legal obligations -with accompanying risks and responsibilities – every time they approach a customer.

However, we all know that salespeople that sometimes oversell.

They exaggerate the capabilities of their products or services and sometimes make false statements just to close a sale.

- Price discrimination

Some customers may receive price reductions, promotional allowances, and support while others do not.

Individual salespeople or managers may practice price discrimination to improve sales.

Price discrimination refers to selling the same quantity of the same product to different buyers at different prices.

This can be illegal if it injures or reduces competition. It is certainly unethical and no way to treat customers.

- Tie-in sales

To buy a particular line of merchandise, a buyer may be required to buy other, unwanted products. This is called a tie-in sale.

- Exclusive dealership

When a contact requires that a wholesaler or retailer purchase products from one manufacturer, it is an exclusive dealership.

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- Reciprocity

Reciprocity refers to buying a product from someone if the person or organization agrees to buy from you.

- Sales restrictions

To protect customers against the sometimes unethical sales activities of door-to-door salespeople, there is legislation.

The international side of ethics

The vast majority of international companies you will deal with have high ethical standards.

The ones that don’t cannot be defined by geographic location or culture.

Ethics relating to employees and community are often more difficult to understand.

We are confronted with situations that seem strange and unfair.

All we can do in such cases is to lead by example. We should treat our international community and personnel with the same respect.

Managing sales ethics

Over the years, A manager of surveys to determine managers’ views of business ethics have found the following:

- All managers feel they face ethical problems

- Most managers feel they and their employers should be more

ethical

- Managers are more ethical with their friends than with people they

do not know

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- Even though they want to be more ethical, some managers lower

their ethical standards to meet job goals

- Managers are aware of unethical practices in their industry and

company ranging from price discrimination to hiring

discrimination.

- Business ethics can be influenced by an employee’s superior and by the company environment.

Organizations are concerned about how to improve their social responsiveness and ethical climate.

Managers must take active steps to ensure that the company stays on ethical ground.

Management methods for helping organizations to be more responsive include (1) top management taking the lead, (2) carefully selecting leaders, (3) establishing and following a code of ethics,(4)

creating ethical structures, (5) formally encouraging whistle – blowing,(6) creating an ethical sales climate, and (7) establishing control systems.

- Follow the leader

The organization’s chief executive officer, or the president should clearly champion the efforts for ethical conduct. Others will follow their lead.

- Leader selection is important

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It is critical to carefully choose managers, only people who have highest level of integrity, standards, and values should assume leadership positions.

- Establish a code of ethics

A code of ethics is formal statement of the company’s values concerning ethics and social issues.

It states those values or behaviors that expected and those that are not tolerated.

These values and behaviors must be backed by management’s action. without top management support, there is little assurance that code will be followed.

The two types of code of ethics are principal-based statements and policy-based statements.

Principal-based statement are designed to affect corporate culture, define fundamental values, and contain general language about company responsibilities, quality of products, and treatment of employees.

General statements of principle are often called corporate credos.

Policy-based statements generally outline the procedures to be used in specific ethical situations. This situations include marketing practice, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities.

- Create ethical structures

An ethics committee is a group of executives appointed to oversee company ethics.

The committee provides rulings on questionable ethical issues.

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The ethical committee assumes responsibility for disciplining wrongdoers.

This responsibility is essential if the organization is to directly influence employee behavior.

An ethics ombudsman is an official given the responsibility of corporate conscience who hears and investigates ethics complaints and informs top management of potential ethics issues.

- Encourage whistle- blowing

Employee disclosure of illegal, immoral, or illegitimate practices on the employer’s part is called whistle-blowing.

Companies can provide a mechanism for whistle-blowing as a matter of policy.

All employees who observe or become aware of criminal practices or unethical behavior should be encouraged to report the incident to their superiors, to a higher level of management, or to an appropriate unit of the organization, such as an ethics committee.

Formalized procedures for complaining can encourage honest employees to report questionable incidents.

- Create an ethical sales climate

The single most important factor in improving the climate for ethical behavior in a sales force is the action taken by top-level managers.

Sales managers must help develop and support their code of ethics.

They should publicize the code and their opposition to unethical sales practices to their subordinate managers and their salespeople.

A stronger level of ethical awareness can be achieved during sales meetings, training sessions, and when contacting customers while working with salespeople.

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- Establish control system

Control systems must be established.

Methods should be employed to determine whether salespeople give bribes, falsify reports, or pad expenses.

Overall, management must make a concerted effort to create an ethical climate within the workplace to best serve customer and organizational goals.

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