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1/50SALESMANAGEMENT761JIMSTODDARDANOVERVIEWOFCONTEMPORARYSALESMANAGEMENT31PLANNING32IMPLEMENTATION43EVALUATIONANDCONTROL4ANOVERVIEWOFPERSONALSELLIN51ALTERNATIVESELLINGTECHNIQUES52PROSPECTING63THEPREAPPROACH74QUALIFYINGTHEPROSPECT75THEAPPROACH76THEPRESENTATION87MEETINGOBJECTIONS98CLOSE99FOLLOWUPCAREERSTAGES10CORPORATE,BUSINESS,ANDMARKETINGSTRATEGIES111PORTERSTYPOLOGYOFCOMPETITIVESTRATEGIES122MILESANDSNOWCOMPETITIVESTRATEGYTYPOLOGY12ACCOUNTMANAGEMENTANDACCOUNTCOVERAGESTRATEGIES141COMMUNICATIONTASKSAPPROPRIATEFORPERSONALSELLING152PARTICIPANTSINTHEORGANIZATIONALBUYINGPROCESS16ORGANIZINGTHEACTIVITIESOFSALESMANAGERSANDSALESPEOPLE171ECONOMICMETHODOFDETERMININGIFOUTSIDEAGENTSAREAPPROPRIATE182CONTROLANDSTRATEGICCRITERIAFORDETERMININGIFACOMPANYSALESFORCESHOULDBEUSED183HORIZONTALORGANIZATIONALSTRUCTURES19ALLOCATINGSELLINGEFFORTANDDESIGNINGSALESTERRITORIES22STAFFINGTHESALESFORCERECRUITMENTANDSELECTION241CONTENTOFTHEJOBDESCRIPTION242METHODSFORDECIDINGONSELECTIONCRITERIA253SOURCESOFRECRUITS25CONTINUALDEVELOPMENTOFTHESALESFORCESALESTRAINING27SALESFORCEMOTIVATION30MANAGINGSALESFORCEREWARDSYSTEMS332/50LEADERSHIP36DEMANDASSESSMENTANDSALESQUOTAS40EVALUATIONANDCONTROL45PERFORMANCEEVALUATION48ACKNOWLEDGEMENTS503/50CHAPTER1ANOVERVIEWOFCONTEMPORARYSALESMANAGEMENTSALESFORCEMANAGEMENTISTHEMANAGEMENTOFTHEPERSONALSELLINGCOMPONENTOFANORGANIZATIONSMARKETINGPROGRAMTHEACTIVITIESINVOLVEDINMANAGINGTHEPERSONALSELLINGFUNCTIONINCLUDE1THEFORMATIONOFTHESTRATEGICPLANPLANNING2THEIMPLEMENTATIONOFTHESALESPROGRAMIMPLEMENTATION3THEEVALUATIONANDCONTROLOFSALESFORCEPERFORMANCECONTROL1PLANNINGTHEFORMATIONOFASTRATEGICSALESPROGRAMREQUIRESFIVEMAJORSETSOFDECISIONS1HOWCANTHEPERSONALSELLINGEFFORTBESTBEADAPTEDTOTHECOMPANYSENVIRONMENTANDINTEGRATEDWITHOTHERELEMENTSOFTHEFIRMSMARKETINGSTRATEGY2HOWCANVARIOUSTYPESOFPOTENTIALCUSTOMERSBEBESTAPPROACHEDPERSUADEDSERVICEDWHATACCOUNTMANAGEMENTPOLICIESSHOULDBEADOPTED3HOWSHOULDTHESALESFORCEBEORGANIZEDTOCALLONANDMANAGEVARIOUSTYPESOFCUSTOMERSASEFFICIENTLYANDEFFECTIVELYASPOSSIBLE4WHATLEVELOFPERFORMANCESHOULDEACHMEMBEROFASALESFORCEBEEXPECTEDTOATTAINDURINGTHENEXTPLANNINGPERIODTHISINVOLVESFORECASTINGDEMANDANDSETTINGQUOTASANDBUDGETS5HOWSHOULDTHESALESFORCEBEDEPLOYEDHOWSHOULDSALESTERRITORIESBEDEFINEDWHATISTHEBESTWAYFOREACHSALESPERSONSTIMETOBEALLOCATEDWITHINHISORHERTERRITORYTHISINVOLVESDECISIONSABOUTTIMEANDTERRITORYMANAGEMENT4/502IMPLEMENTATIONIMPLEMENTINGASALESPROGRAMINVOLVESMOTIVATINGANDDIRECTINGTHEBEHAVIOROFTHESALESFORCEATLEAST5FACTORSINFLUENCEASALESPERSONSJOBBEHAVIORANDPERFORMANCE1ENVIRONMENTALVARIABLES2ROLEPERCEPTIONS3APTITUDE4SKILLLEVEL5MOTIVATIONLEVELIMPLEMENTINGASALESPROGRAMINVOLVESDESIGNINGPOLICIESANDPROCEDURESSOTHATTHEJOBBEHAVIORANDPERFORMANCEOFEACHSALESPERSONISSHAPEDANDDIRECTEDTOWARDTHEFIRMSOBJECTIVESANDPERFORMANCEGOALS3EVALUATIONANDCONTROLEVALUATIONANDCONTROLISTHEPROCESSOFMEASURINGANDASSESSINGTHEPERFORMANCEOFASALESPERSONORSALESFORCETHEREARE3MAJORAPPROACHESTHATACOMPANYMIGHTUTILIZETOEVALUATEANDCONTROLTHESALESFORCEANDMONITORSALESPROGRAMPERFORMANCE1SALESANALYSISAPPROACHVOLUME2COSTANALYSISAPPROACHCOSTS3BEHAVIORANALYSISAPPROACH5/50CHAPTER2ANOVERVIEWOFPERSONALSELLINGRETAILSELLINGINVOLVESSELLINGGOODSANDSERVICESTOULTIMATECONSUMERSFORTHEIROWNPERSONALUSEEXAMPLESDOORTODOORSALESPEOPLEINSURANCEAGENTSREALESTATEBROKERSRETAILSTORECLERKSINDUSTRIALSELLINGISTHESALEOFGOODSANDSERVICESATTHEWHOLESALELEVELINDUSTRIALSELLINGINVOLVES3TYPESOFCUSTOMERS1SALESTORESELLERSIE,RETAILERS2SALESTOBUSINESSUSERSIE,MANUFACTURERS3SALESTOINSTITUTIONSIE,HOSPITALSORGOVERNMENTSSIMILARITIESBETWEENRETAILANDINDUSTRIALSELLINGREQUIREINTERPERSONALSKILLREQUIRESOLIDKNOWLEDGEOFTHEPRODUCTSBEINGSOLDREQUIREANABILITYTODISCOVERTHECUSTOMERSNEEDSANDPROBLEMSDIFFERENCESBETWEENRETAILANDINDUSTRIALSELLINGINDUSTRIALGOODSANDSERVICESAREMOREEXPENSIVEANDTECHNICALLYCOMPLEXINDUSTRIALCUSTOMERSTENDTOBELARGERANDENGAGEINEXTENSIVEDECISIONMAKINGPROCESSESINVOLVINGMANYPEOPLEWITHINTHEIRCOMPANY1ALTERNATIVESELLINGTECHNIQUESMOSTSELLINGTECHNIQUESCONFORMTOONEOFFOURBROADPHILOSOPHICALORIENTATIONSORAPPROACHESTOWARDDEALINGWITHCUSTOMERS1THESTIMULUSRESPONSEAPPROACHBASEDONTHENOTIONTHATEVERYSENSORYSTIMULUSPRODUCESARESPONSESALESRECRUITSLEARNWHATTOSAYTHESTIMULUSANDWHATTHEBUYERS6/50ARELIKELYTOSAYTHERESPONSEINMOSTCIRCUMSTANCES2MENTALSTATESAPPROACHBASEDONTHEIDEATHATABUYERSMINDPASSESTHROUGHSUCCESSIVESTAGESBEFOREHEORSHEDECIDESTOMAKEAPURCHASEBASEDONTHEAIDATHEORYOFPERSUASIONATTENTION,INTEREST,DESIRE,ACTIONSELLING“FORMULAS“AREUSEDTODESIGNASALESPRESENTATIONTHATCOINCIDESWITHTHEBUYERSMOVEMENTTHROUGHTHESTAGES3NEEDSATISFACTIONAPPROACHBASEDONTHEIDEATHATCUSTOMERSARETOBESERVEDRATHERTHANPRODUCTSSOLDCUSTOMERSNEEDSARETHESTARTINGPOINTINMAKINGASALETHESALESPERSONSTASKISTOIDENTIFYTHEPROSPECTSNEEDS,MAKETHEPROSPECTAWAREOFTHATNEED,ANDTHENPERSUADETHEPROSPECTTHATHISORHERPRODUCTORSERVICEWILLSATISFYTHATNEEDBETTERTHANANYOTHERALTERNATIVE4PROBLEMSOLVINGAPPROACHSIMILARTOTHENEEDSATISFACTIONAPPROACHEXCEPTTHATTHESALESPERSONGOESONESTEPFURTHERTOHELPTHEPROSPECTIDENTIFYSEVERALALTERNATIVESOLUTIONS,ANALYZETHEIRADVANTAGESANDDISADVANTAGES,ANDSELECTTHEBESTSOLUTION2P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HEMTOPURSUEANDWHETHERTHEYCANBESUCCESSFULSALESPEOPLE2ESTABLISHMENTPEOPLEINTHISSTAGELATE2SEARLY30SHAVESETTLEDONANOCCUPATIONANDDESIRETOBUILDITINTOASUCCESSFULCAREERPRIMARYCONCERNIMPROVINGSKILLSANDPERFORMANCEANDVALUECOMPENSATIONANDPROMOTION3MAINTENANCETHISSTAGENORMALLYBEGINSAROUNDTHESALESPERSONSLATE30SOREARLY40SPRIMARYCONCERNRETAININGPRESENTPOSITION,STATUS,ANDPERFORMANCELEVELWITHINTHESALESFORCE,WHICHARELIKELYTOBEQUITEHIGHBYTHISSTAGEBOTHTHEOPPORTUNITYANDDESIREFORPROMOTIONDIMINISHES4DISENGAGEMENTPEOPLEBEGINPREPARINGTHEMSELVESFORRETIREMENTANDTHEPOSSIBLELOSSOFSELFIDENTITYTHATCANACCOMPANYSEPARATIONFROMTHEJOBLATE50SEARLY60SDURINGTHISSTAGE,SALESPEOPLEPSYCHOLOGICALLYWITHDRAWFROMTHEIRJOB,AFTERSEEKINGTOMAINTAINJUSTAN“ACCEPTABLE“LEVELOFPERFORMANCEWITHAMINIMUMAMOUNTOFEFFORTSOTHATTHEYCANDEVELOPTHEIRINTERESTSOUTSIDEOFWORK11/50CHAPTER5CORPORATE,BUSINESS,ANDMARKETINGSTRATEGIESIRELATIONSAMONGENVIRONMENTALFACTORS,MARKETINGPLANS,ANDTHESALESPROGRAMATOBESUCCESSFUL,AFIRMSPLANSMUSTBEADAPTEDTOTHEINFLUENCESOFTHEEXTERNALANDINTERNALCORPORATEENVIRONMENTSASTHESEENVIRONMENTSCHANGE,APPROPRIATEADJUSTMENTSSHOULDBEMADEINTHEFIRMSMARKETINGSTRATEGYBAFIRMSSALESPROGRAMISONLYONEPARTOFANINTEGRATEDMARKETINGSTRATEGYASCHANGESAREMADEINOTHERPARTSOFTHEMARKETINGSTRATEGY,THESALESPROGRAMMUSTBEADJUSTEDIFITISTOREMAINEFFECTIVECREGARDLESSOFHOWWELLCONCEIVEDASALESPROGRAMIS,ORHOWWELLITISINTEGRATEDINTOAFIRMSOVERALLMARKETINGSTRATEGY,ITSIMPLEMENTATIONDEPENDSONTHEWILLINGNESSANDABILITYOFINDIVIDUALMEMBERSOFTHESALESFORCETOCARRYOUTITSPOLICIESANDPROCEDURESFACTORSINTHEEXTERNALANDCORPORATEENVIRONMENTSCANDIRECTLYINFLUENCEASALESPERSONSACTIONSINTHEFIELDANDHISORHERABILITYTOACHIEVETHEDESIREDLEVELOFPERFORMANCEIIMARKETINGPLANNINGAIMPORTANCEOFPLANNINGPLANNINGISDECIDINGWHATTODOINTHEPRESENTTOACHIEVEWHATISDESIREDINTHEFUTUREITREQUIRESDECISIONSCONCERNINGTHEFIRMSGOALSANDOBJECTIVESFORTHEFUTUREANDTHEACTIONSTHATSHOULDBETAKENTOACCOMPLISHTHEMASTRATEGYISASTATEMENTOFTHEFUNDAMENTALPATTERNOFPRESENTANDPLANNEDOBJECTIVES,RESOURCEDEPLOYMENTS,ANDINTERACTIONSWITHMARKETS,COMPETITORS,ANDOTHERENVIRONMENTALFACTORSTHATINDICATEHOWANORGANIZATIONORSUBUNITORDEPARTMENTWITHINANORGANIZATIONINTENDSTOSURVIVEANDPROSPEROVERTIMEBTHEPLANNINGPROCESSTYPESOFPLANSASALESPROGRAMCONSTITUTESONLYONEPARTOFAMARKETINGPLAN,ANDTHEMARKETINGPLANISONLYONEELEMENTOFTHETOTALSTRATEGICPLANINMOSTFIRMS12/50STRATEGICPLANNINGINMOSTLARGEFIRMSTYPICALLYOCCURSINSEVERALSTAGESWHICHGUIDEACTIVITIESATDIFFERENTLEVELSWITHINTHEORGANIZATIONTHISHIERARCHYOFPLANSCOMMONLYINCLUDESTHEFOLLOWING1THECORPORATESTRATEGICPLAN2STRATEGICBUSINESSUNITPLANS3MARKETINGPLANS4PROGRAMSFORINDIVIDUALMARKETINGFUNCTIONSCTHEMARKETINGPLANNINGPROCESS1PORTERSTYPOLOGYOFCOMPETITIVESTRATEGIES1LOWCOSTSTRATEGIESPOSITIONASUPPLIERASAHIGHVOLUMEPRODUCERWITHTIGHTCOSTANDOVERHEADCONTROLCAPITALIZESONECONOMIESOFSCALEASSOCIATEDWITHRELATIVELYHIGHMARKETSHARE2DIFFERENTIATIONSTRATEGIESTHECREATIONOFSOMETHINGPERCEIVEDINDUSTRYWIDEASBEINGUNIQUEPROVIDESINSULATIONAGAINSTCOMPETITIVERIVALRYBECAUSEOFBRANDLOYALTYANDDECREASEDPRICESENSITIVITY3NICHESTRATEGIESSERVINGAPARTICULARTARGETMARKET,ALTHOUGHMARKETSHAREINTHEINDUSTRYMIGHTBELOW,THEFIRMDOMINATESASEGMENTWITHINTHEINDUSTRY2MILESANDSNOWCOMPETITIVESTRATEGYTYPOLOGY1PROSPECTORSATTEMPTTOPIONEERINBOTHPRODUCTANDMARKETDEVELOPMENT2DEFENDERSOFFERALIMITED,STABLEPRODUCTLINETOAPREDICTABLEIE,NONCHANGINGMARKETEMPHASIZEBEINGTHELOWCOSTPRODUCER3ANALYZERSPIONEERINNEWPRODUCTSANDMARKETSWHILEATTHESAMETIMERETAINAFOOTHOLDINMATUREMARKETS4REACTORSDONTDOANYTHINGPROACTIVE,THEYSIMPLYATTEMPTTOSURVIVEBYREACTINGTOENVIRONMENTALCONDITIONSIIIENVIRONMENTALIMPACTONMARKETINGANDSALESPLANNINGFACTORSBOTHINTERNALANDEXTERNALTOTHEFIRMAFFECTTHEFEASIBILITYOFMARKETINGSTRATEGIESANDPROGRAMS13/50ENVIRONMENTALFACTORSINFLUENCEMARKETINGSTRATEGIESSANDPROGRAMSINFOURBASICWAYS1ENVIRONMENTALFACTORSCANCONSTRAINTHEORGANIZATIONSABILITYTOPURSUECERTAINMARKETINGSTRATEGIESORACTIVITIES2ENVIRONMENTALVARIABLES,ANDCHANGESINTHOSEVARIABLESOVERTIME,HELPDETERMINETHEULTIMATESUCCESSORFAILUREOFMARKETINGSTRATEGIES3CHANGESINTHEENVIRONMENTCANCREATENEWMARKETINGOPPORTUNITIESFORANORGANIZATION4ENVIRONMENTALVARIABLESTHEMSELVESAREAFFECTEDANDCHANGEDBYMARKETINGACTIVITIESTHEREFORE,ONEOFTHEMOSTIMPORTANTPARTSOFAMARKETINGMANAGERSJOBISTOMONITORTHEENVIRONMENTANDPREDICTHOWITMIGHTCHANGEANDDEVELOPMARKETINGSTRATEGIESSUITEDTOENVIRONMENTALCONDITIONSEXTERNALENVIRONMENTALVARIABLES1ECONOMICATOTALPOTENTIALDEMANDBLEVELOFCOMPETITIONCDISTRIBUTIONSTRUCTURE2SOCIALADEMOGRAPHICBEDUCATIONAL3LEGAL/POLITICALAANTITRUSTLAWBCONSUMERPROTECTIONLEGISLATION4NATURAL5TECHNICAL14/50CHAPTER6ACCOUNTMANAGEMENTANDACCOUNTCOVERAGESTRATEGIESWHENDECIDINGONTHEROLEOFPERSONALSELLINGINAFIRMSMARKETINGSTRATEGY,AFIRMSMARKETINGANDSALESMANAGERSMUSTANSWERTWOSETSOFQUESTIONS1WHATPROPORTIONSOFAFIRMSTOTALPROMOTIONALBUDGETSHOULDBEDEVOTEDTOTHESALESFORCEHOWMUCHEMPHASISSHOULDBEGIVENTOPERSONALSELLINGVERSUSOTHERPROMOTIONALTOOLSIE,MEDIAADVERTISINGANDSALESPROMOTION2HOWSHOULDEACHCURRENTANDPROSPECTIVECUSTOMERBEMANAGEDWHATACTIVITIESSHOULDTHEFIRMSSALESPEOPLECARRYOUTTOACCOMPLISHTHECOMPANYSCOMMUNICATIONOBJECTIVESWHATACCOUNTMANAGEME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