Chapter 3 Personal Sales in a Global Context

1. Chapter 3Personal Sales in a Global Context Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis Simintiras

2. Important to Understand Forces Affecting Personal Selling • Current sales force qualifications • Evolution of sales activities • Firm orientation • Sales force activities • Sales careers • Ethics

3. Sales Force Evolution • Sales has existed since man formed settlements • Marco Polo, Phoenicians, Chinese merchants • Industrial revolution in Europe • Central manufacturing for dispersed clients • World Wars and Depression impacted • 21st Century Expectations • Professional, well-trained, helpful

4. Firm Philosophies • Each orientation affects sales force • Production orientation • Product orientation • Sales orientation • Marketing orientation • Relationship orientation • Global orientation

5. Production Orientation • Firm’s focus is on economies of scale and efficient production of goods/services • Efficiencies lead to lower costs and greater availability of products • Sales viewed as after thought • Travel and communicate availability of goods • Little consultation with sales area • Help dispose of goods once they are made

6. Product Orientation • Customers purchase product for features and benefits • “Better mousetrap” syndrome • Sales force role is seen as taking orders and delivering goods • Sales often viewed as playing a less significant role in the firm

7. Sales Orientation • When markets are saturated with goods, firms may believe a strong sales effort needed to convince customers to buy • Sales force told to make sale any way possible • Sales viewed as necessary as long as goals met • Use of threats or bribes by management • Use charm to persuade customers to buy • Sell what is made rather than what is needed!

8. Marketing Orientation • Firm uses marketing research to learn customer needs that are satisfied through marketing program for a profit • Buyers and sellers will benefit • Sales force role is to produce satisfied clients • Customers not always aware of needs • Technology not always known • This orientation does not guarantee success

9. Relationship Orientation • Firm and Customer form a long-term relationship (win-win terms) • Easier to maintain relationship than find new customer • Customer viewed as stream of income • Sales force helps customer solve problems • Customer shares information • Not all customers want a relationship!

10. Global Orientation • Firms view the world as one market and approach this market with a unified strategy • Standardized products/programs = savings • Sales personnel recruited globally • Must be culturally and linguistically competent • May be expatriate, local, or third-country • Highly educated, competent, and equal member of corporation’s business team

11. Sales Force Activities • Functions performed vary by: • Job type, industry, and country • Many similarities, but degree of intensity varies considerably (e.g. entertaining) • Also cultural differences: • German sales force engages in more training of customers and setting up displays • US sales force expedited more customer orders • Danish sales force engages in less travel

12. Personal Selling Jobs • Types of selling careers can be arranged on a continuum from standing behind a counter waiting for the customer to arrive and ask for a product to a salesperson who sells intangible services by phone. • Five specific sales jobs include: • Selling Support, Account Maintenance, Account Winners, Inside Sales, and Direct Sales

13. Personal Selling Jobs • Selling Support – advise clients about the technical aspects of product through samples, literature, and personal visits • Sales Engineers and Pharmaceutical Reps • Account Maintenance – Maintain an on-going relationship with current customers • An order taker • Grocery salespersons

14. Personal Selling Jobs • Account Winners – Open new accounts and introduce new products to new and established customers • Industrial suppliers, beverage companies • Inside Sales – Handle phone, fax, and internet inquiries • Direct Sales – firms that recruit salespersons to represent products/services • Amway, Mary Kay, Tupperware

15. Ethical Forces • Ethics has many meanings in business • Decisions based upon sound moral principles • Firm must be profitable to survive = dilemma? • Firm must balance needs for profitability with society’s needs = social responsibility • A number of philosophies define ethical behavior for the sales force and firm

16. Ethical Philosophies • Teleological focuses on outcome of action • Egoism – focuses on maximizing the benefits of the individual = wealth, fame, power • Decisions made based upon self-interest • Utilitarianism – the greatest good for the largest number of people • Many business decisions take this approach • Who computes and defines benefits?

17. Ethical Philosophies • Deontological – decisions should be made based upon rights of individuals and their intentions • Never acceptable to harm an individual • Under no circumstances should certain actions be taken – lying, cheating, killing, etc. • Can adhere to rules (e.g. Golden Rule)

18. Ethics in Global Marketplace • Potential Ethical Dilemmas Found in Global Marketplace: • Discrimination – often justified by cultural norms, but these justifications come into conflict when two cultures interact • Bribery – occurs in many cultures • Product issues – inferior quality or banned • Pricing issues – gouge or dump? • Compliance issues – firm and salesperson must behave ethically toward one another

19. Ethical Codes of Conduct • Many firms provide ethical guidance • Policy guidance for how to behave in market • Not all situations can be anticipated • Will code be followed during difficult times? • Local laws only provide “minimum” guidance

20. Ethical Questions • If you are uncertain how to proceed, ask yourself these questions: • Does the action maximize the benefits of all parties? • Are individual rights respected? • Are actions just and fair for all parties? • How would I feel if my parents (or children) were to learn of my actions?

21. Summary • History and origins provide a basis for better understanding personal selling and sales management • Orientation affects role played by sales force • Sales position determines actions and behaviors • Ethical dilemmas faced by all business people, including salespersons • Understand the what, why, and when of job!

22. Discussion Questions • Compare and contrast the focus of the firm orientation on the sales force. • Discuss the distinct job categories presented and how the job affects skills, knowledge, and abilities. • What are the long-term outcomes of most unethical behavior? How might unethical behavior impact buyer/seller relationships?