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1 Introduction L1 MKT205
1 Introduction L1 MKT205
MANAGEMENT
MKT 205
Main references
Joseph F. Hair (Jr.), Rolph E. Anderson, Rajiv Mehta, Barry J. Babin (2020) Sales Force
Management, Wiley.
Johnston, Mark W. and Marshall, Greg W. (2020) Sales Force Management, 11th ed,
McGraw-Hill
1
CHAPTER 1:
INTRODUCTION TO SALES FORCE MANAGEMENT AND ITS EVOLVING
ROLES & MANAGING ETHICS IN A SALES ENVIRONMENT
2
What is Sales Force Management?
3
Types, Titles, and Hierarchical Levels of Sales Managers
V.P.
Sales
Salesmanagers are also known to As subordinates, these individuals
have other titles, such as: who report to sales managers
National
1. National Account Manager include, but are not limited to:
Sales Manager
(NAM), 1. Marketing
2. Key Account Manager (KAM), Representatives
3. Senior Account Executive, Zone, Division, Or 2. SalesRepresentatives
4. Account Manager, and 3. Account Managers, and
5. Assistant Sales ManagerRegional Sales Manager 4. SalesEngineers
District, Branch or
Field Sales Manager
Sales Supervisor
Responsibilities and Duties of Sales Managers: A Conceptual Framework
• The ‘building blocks” or tasks and • Sales managers organize, manage, and
functions sales managers perform can be control the selling activities of their firm.
categorized into:
5
Expanding Roles Of Sales Managers
1.
Manage Customer
Relationships
Sales Managers
Must:
3. 2.
Manage the Hybrid Serve as Customer
Sales Force Consultants
6
What Qualities Are Needed To Be A Sales Manager?
Successful sales managers today need to have some important qualities, such as:
1.
7.
Effective leaders and
Improving sales force motivators of people
2.
productivity and Good decision makers
profitability
Qualities of Sales
6. Managers: 3.
Monitoring competitive Creative
offerings problem solvers
5. 4.
Work with other Outstanding
functional areas communicators
of business
7
Megatrends Affecting Sales Force Management
8
Behavioral Megatrends Affecting Sales Force Management
Some behavioral forces that impact sales force
management are:
9
Technological Megatrends :Affecting Sales Force Management
1. 2.
Mobile Virtual 3.
Electronic
Sales Offices Sales Force
Commerce
Technological forces include, but are Automation
10
Managerial Megatrends :Affecting Sales Force Management
Some of these managerial forces 1.
are: Selling Cost
2.
Reduction Efforts
5. Shift to Direct
Developments in Marketing
1. Efforts to reduce selling Information Alternatives
costs Management • Direct Mail
• Database Managerial (catalogs,
2. Shift to direct marketing Marketing Megatrends brochures, and
methods • Data Affecting
sales letters)
• Telemarketing
Warehousing Sales • Teleselling
3. Certification of • Data Mining Management
• Push • Personalized E-
salespeople mail
Technology
• Kiosks
4. Shortage of business-to- • Facsimile
business salespeople, and
5. Developments in
information management 3.
4.
Professional
Few B2B
Certification
Salespeople
of Salespeople
11
Information Management Tools
The four key trends in
the management of Push Data
information are: technology mining
Information
Management
Trends
Database Data
marketing warehousing
12
Sales Management Hierarchy: Skill and Ability Requirements
ADMINISTRATIVE
AND LEADERSHIP
ABILITY
ABILITY National
Sales
Manager
levels SUPERVISORY
ABILITY
District
Sales
2. Managerial ability at Manager
13
Developing Sales Managers For The New Millennium
14
Ethics in Sales Environment
• What is ethics?
• Are personal ethical value systems so divergent that what is considered ethical to one individual
may constitute be an unethical situation to another?
15
Salespeople Are Boundary Spanners
• A boundary spanner is someone who performs his or her job in the “boundary” or the
“space” between a company and a customer.
• Frequent interactions with various with customers, may present salespeople with many
opportunities to take undue advantage of them by employing questionable practices.
16
Sources of Customer Vulnerability
When dealing customers, salespeople inherently have many added advantages over
buyers.
This makes buyers vulnerable due to: Ignorance, Naiveté, and Powerlessness.
1. Sources of 2.
Customer Vulnerability
Naivete Ignorance
19
Business Association Codes:
Unethical Sales Practices and Prohibited Actions
Unethical sales practices established by the Direct Selling Association of America ( check for
Malaysia if any) —such as those shown below—are prohibited in sales-related codes of ethics.
20
Bases of Moral Philosophy
Moral philosophy deals with the systematic ways that individuals recognize and
resolve decisions having moral content.
1. Bases of 2.
Moral Philosophy
Idealism Relativism
3.
Teleology
21
Bases of Moral Judgments
An ethical dilemma refers to a situation that has alternate courses of action, each
having different moral implications.
• Hiring, firing, and performance evaluations have moral content.
1. Bases of 2.
Moral Equity Moral Judgments Acceptability
3.
Contractualism
22
Creating An Ethical Work Climate
4.
Bottom-Line
Sales Emphasis
1.
3. Creating an
Policies and
Peer Behavior Ethical Climate
Rules
2.
Trust and
Responsibility
23
Managing the Ethical Climate
24
Federal Regulations Protecting Companies From Each Other
25
Federal Regulation Protecting Companies From Each
Other ( in country like the USA)
1. Laws Protect
Price Firms From Each 2.
Discrimination Other Against: Collusion
3.
Price Fixing
26
Federal Regulation Protecting Companies From Each
Other ( in country like the USA)
4.
Tie-in Sales
Laws Protect 5.
7.
Firms From Each Exclusive
Reciprocity
Other Against: Dealing
6.
Restraint of
Trade
27
Federal Regulation Protecting Companies
From Each Other ( in country like the USA)
8.
Unordered Goods
10.
Business
Descriptions
28
Federal Regulation Protecting Companies From
Each Other ( in country like the USA)
12.
Customer
Coercion
Laws
Protect Firms
From Each Other
Against:
13.
Business
Defamation
29
Federal Regulations Protecting Companies
From Each Other in the Sales Environment
1.
Business
Slander
4. 2.
Business
Unfair Business
Defamation
Competition Libel
3.
Product
Disparagement
30
Federal Regulations Protecting Companies From Each Other in
the Sales Environment in the USA
31
Federal Regulations Protecting Companies From Each
Other in the Sales Environment
• Federal laws are also instituted to ensure that a non-coercive marketplace exist where firms
don’t take advantage of consumers.
• Sales managers should be aware of Federal laws that protects consumers from unfair
business practices by firms, to ensure the sales force acts ethically and in compliance with
Federal laws.
32
Ethics and International Regulation of Sales
• Each country will have a unique culture and different business practices.
33
Model Good Ethical Behavior Among The Sales Force:
Maintaining A Positive Ethical Climate
Developing a positive ethical climate:
Salespeople reach ethical maturity when they place the moral treatment of others
ahead of short-term personal gain.
2. Leading by example means adopting a moral ethical work climate that begins with
top sales management brass.
34
THANK YOU
Tutorial:
1) What is Sales Management? Discuss some of its importance to company.
2) What qualities are needed to be a successful sales manager in the new millennium?
3) What role does a sales manager play in the management of a firm’s sales department?