Chapter 17 Topics

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Chapter 17 Topics

• Which areas of the company work with salespeople
  to satisfy customer needs?
• How do salespeople coordinate the efforts of
  various functional areas of the company?
• How do salespeople work with sales managers and
  with sales executives?
• How do company policies, such as compensation
  plans, influence salespeople?
• How do salespeople work within the company to
  resolve ethical issues?
• What is the organizational structure, and how
  does it influence salesperson activities?

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Sales Representatives
Who does a sales representative represent?
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Role Clarity
The degree to which the salespersons perceptions
of the sales role are correct.
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Role Conflict
Occurs when two partners demand incompatible
actions of the salesperson.
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A Role Conflict Example, Part 1
Management wants to clear out the inventory of
PD2s. They have cut the price 10 and added a 5
commission bonus for every PD2 sold. The
technicians (the ones who install and fix your
companys products, including the PD2) think the
PD2 is a piece of junk. They told you not to sell
it customers will hate it plus it makes the
technicians lives miserable because they have to
fix it all the time.
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A Role Conflict Example, contd.

• A customers needs are such that you think the
  PD2 is the best product. The technician says to
  sell them the TW7, but you believe it costs too
  much. The credit department says it doesnt
  matter, they cant get credit anyway. Your
  manager reminds you that you need one more sale
  this month to make your quota.
• What do you do?

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Role Ambiguity
Occurs when the salesperson is not sure what
actions are required.
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Selling skills are needed even within the
salespersons own firm.
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Predicting the Future

• What industry to you expect to work in when you
  graduate?

• What are your expectations about this industrys
  future?
• What will happen if you are wrong?

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Examples of Quotas
Points (1) Margin/10K (2) all others are 5 pts
each
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Alternative Point Method
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An Example of a Draw Compensation Plan
Exhibit 17.3
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Strategies for Handling Unethical Requests from a
Manager, Part 1

• Your manager tells you to recommend the deluxe
  model of your product to a particular customer.
  The customers needs are such that the economy
  model is better suited.
• The customer trusts you and has not shopped the
  competition at all.
• The customer, being a school system, qualifies
  for a government discount but your manager told
  you to charge full price.

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Strategies for Handling Unethical Requests from a
Manager, contd.
Which of these strategies would you feel
comfortable using? What risks are associated with
the strategies?

• Leave the organization or ask for a transfer.
• Negotiate an alternative course of action.
• Blow the whistle, internally or externally.
• Threaten to blow the whistle.
• Appeal to a higher authority.
• Agree to the demand, but fail to carry it out.
• Deny to comply with the request.
• Ignore the request.

Exhibit 17.5
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Team-Selling Organization
V.P., Sales
Exhibit 17.7
Account Sales Manager
Account Manager
Account Manager
Account Manager
Computer Specialist
Computer Specialist
Test Equip. Specialist
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Multi-level Selling
Exhibit 17.8
Buying Company
Selling Company
Vice Presidentof Purchasing
Vice Presidentof Sales
Director of Purchasing
Account Manager
Engineer
Product Specialist
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Any questions about the terminology?

• Activity quota
• Bonus
• Bottom-up forecasting
• Cap
• Combination plan
• Commission
• Commission base
• Commission rate
• Customer service rep
• Draw
• Ethics review board
• Field sales manager
• Field salespeople

• Open-door policy
• Out-bound
• Profit-quota
• Quota
• Revenue quota
• Salary
• Sales quota
• Straight commission
• Straight salary
• Strategic account manager (SAM)
• Team selling

• Field support rep
• Geographic salesperson
• Gross margin quota
• House account
• In-bound
• Incentive pay
• Inside salespeople
• Internal partnerships
• Key accounts
• Multilevel selling
• National account manager (NAM)

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