Chapter 3

Personal Sales in a Global

Context
Sales Management:
A Global Perspective
Important to Understand
Forces Affecting Personal
Selling
 Current sales force qualifications

 Evolution of sales activities

 Firm orientation
 Sales force activities
 Sales careers
 Ethics
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
Firm Philosophies

 Each orientation affects sales force

 Production orientation
 Product orientation
 Sales orientation
 Marketing orientation
 Relationship orientation
 Global orientation
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
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
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!
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
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!
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
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
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
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
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
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
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?
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)
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
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
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?
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!
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?