Fundamentals of Selling

Fundamentals of Selling Customers for Life Through Service THIRTEENTH EDITION CHARLES M. FUTRELL Texas A & M University Me Graw Hill McGraw-Hill Irwin

,'rt Preface vii PARTI Selling as a Profession CHAPTER 1 The Life, Times, and Career of the Professional Salesperson 4 What is Selling? 5 A New Definition of Personal Selling 6 Think of Your Grandmother 6 The Golden Rule of Personal Selling 7 Salesperson Differences 7 Everybody Sells! 8 What Salespeople are Paid to Do 8 Why Choose a Sales Career? 9 Service: Helping Others 9 A Variety of Sales Jobs Are Available 9 Freedom of Action: You're on Your Own 12 Job Challenge Is Always There 13 Opportunities for Advancement Are Great 13 Rewards: The Sky's the Limit 14 You Can Move Quickly into Management 15 Is a Sales Career Right for You? 15 Success in Selling What Does it Take? 15 S Success Begins with Love 16 S Service to Others 16 U Use the Golden Rule of Selling 16 C Communication Ability 16 C Characteristics for the Job 16 E Excels at Strategic Thinking 16 S Sales Knowledge at the M.D. Level 17 S Stamina for the Challenge 17 C Characteristics for the Job Examined 18 Caring, Joy, and Harmony 18 Patience, Kindness, and Moral Ethics 18 Faithful, Fair, Self-Controlled 19 Self-Control Involves Discipline 19 Relationship Selling 20 Sales Jobs are Different 21 What Does a Professional Salesperson Do? 21 Reflect Back 24 The Future for Salespeople 24 Learning Selling Skills 24 Preparing for the 21st Century 25 Ethical Megatrend Shaping Sales and Business 28 Selling Is for Large and Small Organizations 28 The Plan of this Textbook 29 Building Relationships Through the Sales Process 29 Summary of Major Selling Issues 31 Key Terms for Selling 32 Sales Application Questions 32 Further Exploring the Sales World 32 Selling Experiential Exercise: Aerobic, Strength, and Flexibility Exercise Guidelines 32 CASE 1.1 What They Didn't Teach Us in Sales Class 33 Appendix: The Golden Rule of Personal Selling as Told by a Salesperson 36 The Golden Rule of Selling 36 Others Includes Competitors 36 Sales Is Your Calling to Serve 36 To Serve, You Need Knowledge 37 Customers Notice Integrity 37 Personal Gain Is Not Your Goal 38 Others Come First 38 The Golden Rule Is Not 38 Corruptible It Is Not 38 Self-Serving It Is Not 39 Comprehensive It Is Not 39 Easy to Follow It Is Not 39 The-Great Harvest Law of Sales 39 A Corny Example 39 The Common Denominator of Sales Success 40 The Fruits of the Selling Spirit 40

xxiv Contents CHAPTER 2 Relationship Marketing: Where Personal Selling Fits 41 What is the Purpose of Business? 42 The Primary Goal of Business 42 What is Marketing? 42 Marketing's Definition 42 Marketing's Not Limited to Business 43 Exchange and Transactions 43 Customer Orientation's Evolution 43 The Production Concept 43 The Selling Concept 44 ~ The Marketing Concept 44 Marketing's Importance in the Firm 45 Marketing Generates Sales 46 Marketing Provides Quality Customer Service 46 Essentials of a Firm's Marketing Effort 46 Product: It's More Than You Think 46 Price: It's Important to Success 47 Distribution: It Has to Be Available 48 Promotion: You Have to Tell People about It 49 Relationship Marketing 51 Relationship Marketing and the Sales Force 51 Personal Selling Builds Relationships 51 Salespeople Implement Relationship Marketing 53 Levels of Relationship Marketing 54 Partnering with Customers 54 The New Consultative Selling 55 Three Roles of Consultative Selling 55 E-Selling: Technology and Information Build Relationships 58 What's a Salesperson Worth? 58 The Key to Success 60 Summary of Major Selling Issues 61 Key Terms for Selling 62 Sales Application Questions 62 Further Exploring the Sales World 62 Selling Experiential Exercise: What Should Your Children's College Majors Be? 62 CASE 2.1 Reynolds & Reynolds 63 CHAPTER 3 Ethics First... Then Customer Relationships 66 What Influences Ethical Behavior? 67 The Individual's Role 67 The Organization's Role 69 Are There any Ethical Guidelines? 69 What Does the Research Say? 69 What Does One Do? 69 Is Your Conscience Reliable? 70 Sources of Significant Influence 71 Three Guidelines for Making Ethical Decisions 71 Will the Golden Rule Help? 72 Management's Ethical Responsibilities 72 What Is Ethical Behavior? 73 What Is an Ethical Dilemma? 73 Ethics in Dealing with Salespeople 74 Level of Sales Pressure 74 Decisions Affecting Territory 75 To Tell the Truth? 75 The III Salesperson 76 Employee Rights 76 Salespeople's Ethics in Dealing with their Employers 78 Misusing Company Assets 78 Moonlighting 78 Cheating 78 Affecting Other Salespeople 78 Technology Theft 79 Ethics in Dealing with Customers 79 Bribes 79 Misrepresentation 79 Price Discrimination 84 Tie-in Sales 84 Exclusive Dealership 84 Reciprocity 84 Sales Restrictions 84 The International Side of Ethics 85 Managing Sales Ethics 86 Follow the Leader 86 Leader Selection Is Important 86 Establish a Code of Ethics 86 Create Ethical Structures 87 Encourage Whistle-Blowing 87 Create an Ethical Sales Climate 87 Establish Control Systems 88 Ethics in Business and Sales 88 Do Your Research! 89 Golden Rule of Personal Selling 91 Ethics Rule Business 91 Summary of Major Selling Issues 92 Key Terms for Selling 92 Sales Application Questions 92 Further Exploring the Sales World 93 Selling Experiential Exercise: Ethical Work Climates 93 3.1 Ethical Selling at Perfect Solutions: The Case of the Delayed Product 94 3.2 Sales Hype: To Tell the Truth or Stretch It, That Is the Question 96

Contents xxv PART I! Preparation for Relationship Selling CHAPTER 4 The Psychology of Selling: Why People Buy 100 The Golden Rule: Benefits 101 Why People Buy The Black Box Approach 101 Psychological Influences on Buying 102 Motivation to Buy Must Be There 102 Economic Needs: The-Best Value for the Money 102 Awareness of Needs: Some Buyers Are Unsure 103 A Fabulous Approach to Buyer Need Satisfaction 104 The Product's Features: So What? 104 The Product's Advantages: Prove It! 104 The Product's Benefits: What's in It for Me? 105 How to Determine Important Buying Needs A Key to Success 107 The Trial Close A Great Way to Uncover Needs and Sell 108 Sell Sequence 109 You Can Classify Buying Situations 111 Some Decisions Are Routine 112 Some Decisions Are Limited 112 Some Decisions Are Extensive 112 Technology Provides Information 113 View Buyers as Decision Makers 113 Need Arousal 114 Collection of Information 114 Information Evaluation 114 Purchase Decision 115 Postpurchase 116 Satisfied Customers are Easier to Sell to 117 ' To Buy or Not to Buy A Choice Decision 117 Summary of Major Selling Issues 119 Key Terms for Selling 120 Sales Application Questions 120 Further Exploring the Sales World 123 Student Application Learning Exercises (SALES) 124 SALE 1 of 7 Chapter 3 124 Selling Experiential Exercise: Is Organizational Selling for You? 124 4.1 Economy Ceiling Fans, Inc. 125 4.2 McDonald's Ford Dealership 125 CHAPTER 5 Communication for Relationship Building: It's Not All Talk 127 The Golden Rule: Communication 128 Communication: It Takes Two 129 Salesperson-Buyer Communication Process Requires Feedback 129 The Buyer's Personality Should be Considered 131 Self-Concept 131 Adaptive Selling Based on Buyer's Personality Style 131 Personality Typing 131 Adapt Your Presentation to the Buyer's Style 133 Nonverbal Communication: Watch for It 135 Concept of Space 135 Communication through Appearance and the Handshake 137 Body Language Gives You Clues 140 Master Persuasive Communication to Maintain Control 143 Feedback Guides Your Presentation 143 Remember the Trial Close 144 Empathy Puts You in Your Customer's Shoes 144 Keep It Simple 145 Creating Mutual Trust Develops Friendship 146 Listening Clues You In 146 Your Attitude Makes the Difference 149 Proof Statements Make You Believable 150 Summary of Major Selling Issues 150 Key Terms for Selling 151 Sales Application Questions 152 Further Exploring the Sales World 153 Selling Experiential Exercise: Listening Self-Inventory 153 5.1 Skaggs Manufacturing 154 5.2 Alabama Office Supply 155 5.3 Vernex, Inc. 155 Appendix: Dress for Success... and to Impress for Business Professional and Business Casual Occasions! 157 CHAPTER 6 Sales Knowledge: Customers, Products, Technologies 161 The Golden Rule: Knowledge 162 Sources of Sales Knowledge 162

xxvi Contents Knowledge Builds Relationships 163 Knowledge Increases Confidence in Salespeople... 163... and in Buyers 163 Relationships Increase Sales 164 Know Your Customers 164 Know Your Company 164 General Company Information 164 Know Your Product 165 Know Your Resellers 166 Advertising aids Salespeople 166 Types of Advertising Differ 167 Why Spend Money on Advertising? 168 Sales Promotion Generates Sales 169 Point-of-Purchase Displays: Get Them Out There 169 Shelf Positioning Is Important to Your Success 169 Premiums 170 What's it Worth? Pricing Your Product 170 Know Your Competition, Industry, and Economy 171 Personal Computers and Selling 173 Knowledge of Technology Enhances Sales and Customer Service 173 Personal Productivity 174 Communications with Customers and Employer 176 Customer Order Processing and Service Support 178 Sales: Internet and the World Wide Web 179 The Internet 179 World Wide Web 179 Global Technology Provides Service 180 Technology Etiquette 181 Netiquette 181 Cell Phones 182 Voice Mail 182 Faxes 183 Speakerphones and Conference Calls 183 Summary of Major Selling Issues 183 Key Terms for Selling 184 Sales Application Questions 184 Further Exploring the Sales World 185 Selling Experiential Exercise: How Is Your Self-Confidence? 185 Appendix: Sales Arithmetic and Pricing 187 Types of Prices 187 Discounts Lower the Price 188 Quantity Discounts: Buy More, Pay Less 188 Cash Discounts Entice the Customer to Pay on Time 188 Trade Discounts Attract Channel Members' Attention 189 Consumer Discounts Increase Sales 189 Resellers: Markup and Profit 190 Markup and Unit Price 191 Markup and Return on Investment 191 Organizations: Value and ROI 193 Compare Product Costs to True Value 194 Unit Costs Break Down Price 195 Return on Investment Is Listened To 195 Key Terms for Selling 195 Sales Application Questions 195 Student Application Learning Exercises (SALES) 197 SALE 2 of 7 Chapter 5 197 6A.1 Claire Cosmetics 197 6A.2 McBath Women's Apparel 198 6A.3 Electric Generator Corporation 199 6A.4 Frank's Drilling Service 199 6A.5 FruitFresh, Inc. 200 PART Sff The Relationship Selling Process CHAPTER 7 Prospecting The Lifeblood of Selling 204 The Golden Rule: Prospecting 205 The Sales Process Has 10 Steps 206 Steps Before the Sales Presentation 206 Prospecting The Lifeblood of Selling 207 The Leaking Bucket Customer Concept 208 Where to Find Prospects 208 Planning a Prospecting Strategy 208 Prospecting Methods 209 E-Prospecting on the Web 209 Cold Canvassing 210 Endless Chain Customer Referral 210 Orphaned Customers 211 Sales Lead Clubs 211 Prospect Lists 211 Getting Published. 212 Public Exhibitions and Demonstrations 212 Center of Influence 213 Direct Mail 214 Telephone and Telemarketing 214 Observation 214 Networking 215 Prospecting Guidelines 216 Referrals Used in Most Prospecting Methods 217 The Prospect Pool 217

Contents xxvii The Referral Cycle 218 The Parallel Referral Sale 218 The Secret Is to Ask Correctly 218 The Preapproach 219 The Presentation 220 Product Delivery 220 Service and Follow-Up 221 Don't Mistreat the Referral 221 Call Reluctance Costs You Money! 222 Obtaining the Sales Interview 222 The Benefits of Appointment Making 222 Wireless E-Mail Helps you Keep in Contact and Prospect 226 Summary of Major Selling Issues 227 Key Terms for Selling 227 Sales Application Questions 228 Further Exploring the Sales World 228 Selling Experiential Exercise: Your Attitude toward Selling 228 7.1 Canadian Equipment Corporation 230 7.2 Montreal Satellites 230 CHAPTER 8 Planning the Sales Call Is a Must! 231 The Golden Rule: Planning 232 Begin Your Plan with Purpose! 232 Plan to Achieve Your Purpose 232 What's a Plan? 233 What Is Success? 233 Strategic Customer Sales Planning The Preapproach 235 Strategic Needs 236 Creative Solutions 236 Mutually Beneficial Agreements 236 The Customer Relationship Model 236 Reasons for Planning the Sales Call 236 Elements of Sales Call Planning 238 Always Have a Sales Call Objective 238 The Prospect's Mental Steps 244 Attention 244 Interest 245 Desire 245 Conviction 245 Purchase or Action 245 Overview of the Selling Process 246 Summary of Major Selling Issues 246 Key Terms for Selling 247 Sales Application Questions 247 Further Exploring the Sales World 248 Selling Experiential Exercise: SMART Course Objective Setting 248 Student Application Learning Exercises (SALES) 249 SALE 3 of 7 Chapter 8 249 8.1 Ms. Hansen's Mental Steps in Buying Your Product 250 8.2 Machinery Lubricants, Inc. 251 8.3 Telemax, Inc. 251 CHAPTER 9 Carefully Select Which Sales Presentation Method to Use 252 The Golden Rule: Presentation 253 Sales Presentation Strategy 254 Sales Presentation Methods Select One Carefully 255 The Memorized Sales Presentation 255 The Formula Presentation 257 The Need-Satisfaction Presentation 259 The Problem-Solution Presentation 262 Comparison of Presentation Methods 262 What Is the Best Presentation Method? 263 The Group Presentation 263 Give a Proper Introduction 264 Establish Credibility 264 Provide an Account List 264 State Your Competitive Advantages 264 Give Quality Assurances and Qualifications 264 Cater to the Group's Behavioral Style 264 Negotiating So Everyone Wins 266 Phases of Negotiation 267 Sales Presentations go High-Tech 269 Select the Presentation Method, Then the Approach 269 The Parallel Dimensions of Selling 270 First Column 271 Second Column 271 Third Column 271 Fourth Column 271 The Sales Presentation and Techniques 271 Your Sales Presentation 272 The Golden Rule Makes Sense 275 Dale Carnegie Gives a Word of Warning! 275 Practice and Time 276 Summary of Major Selling Issues 276 Key Terms for Selling 277 Sales Application Questions 277 Further Exploring the Sales World 278 Selling Experiential Exercise: What Are Your Negotiation Skills? 278

xxviii Contents 9.1 Cascade Soap Company 279 9.2 A Retail Sales Presentation 279 9.3 Negotiating with a Friend 280 CHAPTER 10 Begin Your Presentation Strategically 282 The Golden Rule: The Beginning 283 What is the Approach? 283 The Right to Approach 285 The Approach Opening the Sales Presentation 285 Your Attitude during the Approach 285 The First Impression You Make Is Critical to Success 287 Approach Techniques and Objectives 288 Small Talk Warms 'em Up 288 The Situational Approach 288 Opening with Statements 289 Demonstration Openings 291 Opening with Questions 292 Technology in the Approach 299 Is the Approach Important? 299 Using Questions Results in Sales Success 299 The Direct Question 300 The Nondirective Question 301 The Rephrasing Question 301 The Redirect Question 301 Three Rules for Using Questions 302 Is the Prospect Still Not Listening? 302 Be Flexible in Your Approach 303 Summary of Major Selling Issues 304 Key Terms for Selling 305 Sales Application Questions 305 Further Exploring the Sales World 307 Selling Experiential Exercise: Plan Your Appearance It Projects Your Image! 307 Student Application Learning Exercises (SALES) 308 SALE 4 of 7 Chapter 10 308 10.1 The Thompson Company 309 10.2 The Copy Corporation 309 10.3 Electronic Office Security Corporation 310 CHAPTER 11 Elements of a Great Sales Presentation 313 The Golden Rule: Presentation 315 The Purpose of the Presentation 315 Three Essential Steps within the Presentation 317 Remember Your FABs! 318 The Sales Presentation Mix 318 Persuasive Communication 319 Participation Is Essential to Success 323 Proof Statements Build Believability 324 The Visual Presentation Show and Tell 326 Visual Aids Help Tell the Story 327 Dramatization Improves Your Chances 327 George Wynn the Showman 328 Demonstrations Prove It 329 A Demonstration Checklist 330 Use Participation in Your Demonstration 330 Reasons for Using Visual Aids, Dramatics, and Demonstrations 331 Guidelines for Using Visual Aids, Dramatics, and Demonstrations 331 Technology Can Help! 332 The Sales Presentation Goal Model 332 The Ideal Presentation 333 Be Prepared for Presentation Difficulties 333 How to Handle Interruptions 333 Should You Discuss the Competition? 334 Where the Presentation Takes Place 336 Diagnose the Prospect to Determine Your Sales Presentation 336 Summary of Major Selling Issues 336 Key Terms for Selling 337 Sales Application Questions 337 Further Exploring the Sales World 338 Student Application Learning Exercises (SALES) 339 SALE 5 of 7 Chapter 11 339 11.1 Dyno Electric Cart Company 340 11.2 Major Oil, Inc. 340 11.3 Dumping Inventory: Should This Be Part of Your Presentation? 343 CHAPTER 12 Welcome Your Prospect's Objections 345 The Golden Rule: Objections 346 Welcome Objections! 346 What are Objections? 347 When Do Prospects Object? 347 Objections and the Sales Process 347 Basic Points to Consider in Meeting Objections 348 Plan for Objections 349 Anticipate and Forestall 349 Handle Objections as They Arise 350 Be Positive 350 Listen Hear Them Out 350 Understand Objections 350 Six Major Categories of Objections 353 The Hidden Objection 353 The Stalling Objection 354

Contents xxix The No-Need Objection 356 The Money Objection 357 The Product Objection 360 The Source Objection 360 Techniques for Meeting Objections 362 The Dodge Neither Denies, Answers, nor Ignores 362 Don't Be Afraid to Pass Up an Objection 362 Rephrase an Objection as a Question 363 Postponing Objections Is Sometimes Necessary 364 Send It Back with the Boomerang Method 365 Ask Questions to Smoke Out Objections 366 Use Direct Denial Tactfully 369 The Indirect Denial Works 369 Compensation or Counterbalance Method 370 Let a Third Party Answer 370_ Technology Can Effectively Help Respond to Objections! 371 After Meeting the Objection What to Do? 371 First, Use a Trial Close Ask for Opinion 371 Move Back into Your Presentation 372 Move to Close Your Sale 373 If You Cannot Overcome the Objection 373 In all things Be Guided by the Golden Rule 374 Summary of Major Selling Issues 374 Key Terms for Selling 375 Sales Application Questions 375 Further Exploring the Sales World 376 Student Application Learning Exercises (SALES) 377 SALE 6 of 7 Chapter 12 377 12.1 Ace Building Supplies 377 12.2 Electric Generator Corporation (B) 378 CHAPTER 13 Closing Begins the Relationship 379 The Golden Rule: Closing 380 When Should I Pop the Question? 381 Reading Buying Signals 381 What Makes a Good Closer? 382 Ask for the Order and Be Quiet 383 Get the Order Then Move On! 383 How Many Times Should You Close? 383 Example of Closing More than Once 384 Closing Under Fire 384 Difficulties With Closing 386 Essentials of Closing Sales 386 Prepare Several Closing Techniques 388 The Alternative-Choice Close Is an Old Favorite 389 The Assumptive Close 390 The Compliment Close Inflates the Ego 390 The Summary-of-Benefits Close Is Most Popular 391 The Continuous-Yes Close Generates Positive Responses 392 The Minor-Points Close Is Not Threatening 392 The T-Account or Balance-Sheet Close Was Ben Franklin's Favorite 393 The Standing-Room-Only Close Gets Action 395 The Probability Close 395 The Negotiation Close 396 The Technology Close 396 Prepare a Multiple-Close Sequence 397 Close Based on the Situation 397 Research Reinforces These Sales Success Strategies 397 Keys to Improved Selling 401 The Business Proposition and the Close 401 Use a Visual Aid to Close 401 Closing Begins the Relationship 401 When You Do Not Make the Sale 403 Summary of Major Selling Issues 404 Key Terms for Selling 405 Sales Application Questions 405 Further Exploring the Sales World 407 Student Application Learning Exercises (SALES) 408 SALE 7 of 7 Chapter 13 408 13.1 Skaggs Omega 409 13.2 Central Hardware Supply 409 13.3 Furmanite Service Company A Multiple-Close Sequence 410 13.4 Steve Santana: Pressured to Close a Big Deal 411 CHAPTER 14 Service and Follow-Up for Customer Retention 412 The Golden Rule: Service 413 The Importance of Service and Follow-Up 414 Words of Sales Wisdom 415 True Caring Builds Relationships and Sales 416 Building a Long-Term Business Friendship 417 What Is a Business Friendship? 417 How to Build a Business Friendship 417 What Is Most Important? 419 How Many Friends? 420 Relationship Marketing and Customer Retention 420 Relationship Marketing Builds Friendships 420 The Product and Its Service Component 420 Expectations Determine Service Quality 421 Customer Satisfaction and Retention 421 Excellent Customer Service and Satisfaction Require Technology 422 So, How Does Service Increase Your Sales? 422 Turn Follow-Up and Service Into a Sale 423 Account Penetration is a Secret to Success 424

xxx Contents Service Can Keep Your Customers 425 You Lose a Customer Keep on Trucking 428 Returned Goods Make You a Hero 429 Handle Complaints Fairly 429 Is the Customer Always Right? 429 This Customer Is Not in the Right! 429 Dress in Your Armor 430 Build a Professional Reputation 430 Do's and Don'ts for Business Salespeople 431 The Path to Sales Success: Seek, Knock, Ask, Serve 432 Summary of Major Selling Issues 434 Key Terms for Selling 435 Sales Application Questions 435 Further Exploring the Sales World 435 Selling Experiential Exercise: What's Your Attitude toward Customer Service? 436 14.1 California Adhesives Corporation 437 14.2 Sport Shoe Corporation 437 14.3 Wingate Paper 438 PART IV Managing Yourself, Your Career, and Others CHAPTER 15 Time, Territory, and Self-Management: Keys to Success 442 The Golden Rule: Time 443 Customers Form Sales Territories 444 Why Establish Sales Territories? 444 Why Sales Territories May Not Be Developed 445 Elements of Time and Territory Management 445 Salesperson's Sales Quota 446 Account Analysis 446 Develop Account Objectives and Sales Quotas 450 Territory-Time Allocation 450 Return on Time Invested 451 Customer Sales Planning 454 Scheduling and Routing 455 Using the Telephone for Territorial Coverage 457 Territory and Customer Evaluation 458 Summary of Major Selling Issues 459 Key Terms for Selling 460 Sales Application Questions 460 Selling Experiential Exercise 461 Further Exploring the Sales World 462 15.1 Your Selling Day: A Time and Territory Game 462 15.2 Sally Malone's District Development of an Account Segmentation Plan 463 CHAPTER 16 Planning, Staffing, and Training Successful Salespeople 465 The Golden Rule: Management 466 Transition from Salesperson to Sales Manager 467 What Changes Occur? 467 The Experience of Being Promoted 468 Problems New Managers Experience 468 The Key to Making a Successful Transition 469 Technology is Needed in the Job 470 Being a First-Line Sales Manager is a Challenging Job 470 What is the Salary for Management? 470 Overview of the Job 471 Sales Management Functions 472 Sales Force Planning 472 Sales Forecasting 473 The Sales Manager's Budget 473 Organizing the Sales Force 474 Staffing: Having the Right People to Sell 475 People Planning 476 Employment Planning 478 The Multicultural Sales Organization 480 Recruitment Finding the Right People 480 A Sales Manager's View of the Recruit 481 Interview Follow-Up 484 Training the Sales Force 485 Purposes of Training 485 Training Methods 486 Where Does Training Take Place? 487 When Does Training Occur? 488 Who Is Involved in Training? 489 Summary of Major Sales Management Issues 491 Key Terms for Managing 492 Sales Application Questions 492 Further Exploring the Sales World 492 Selling Experiential Exercise: What Are Your People Skills? 493 CASE 16.1 The Wilson Company: Is a Sales Manager's Job Really for Me? 494

Contents xxxi CHAPTER 17 Motivation, Compensation, Leadership, and Evaluation of Salespeople 495 The Golden Rule: Management 496 Motivation of the Sales Force 496 The Motivation Mix: Choose Your Ingredients Carefully 497 Compensation is More than Money 498 Straight Salary Plans 498 Straight Commission Plans 500 Combination Plans 504 The Total Compensation Package 505 Nonfinancial Rewards are Many 506 Leadership is Important to Success 507 The Leader's Task and Relationship Behavior 507 Choosing a Leadership Style 509 On-the-Job Coaching 509 Performance Evaluations Let People Know Where they Stand 510 Performance Evaluation What Is It? 510 Reasons for Performance Evaluation 511 Who Should Evaluate Salespeople? 511 When Should Salespeople be Evaluated? 511 Performance Criteria 511 Quantitative Performance Criteria 511 Qualitative Performance Criteria 512 Conducting the Evaluation Session 512 Sales Managers Use Technology 515 To Manage Customers 515' To Manage Salespeople 516 Summary of Major Sales Management Issues 517 Key Terms for Managing 518 Sales Application Questions 518 Further Exploring the Sales World 518 Selling Experiential Exercise: A Failure to Communicate? 518 Sales Management Quiz 519 17.1 Baxter Surgical Supplies Incorporated 520 17.2 The Dunn Corporation 521 APPENDIX A: Sales Call Role-Plays can also be Used as Cases 525 Role-Play One: Consumer Sales Student Role-Play Video 525 Role-Play Two: Distributor Sales Student Role-Play Video 527 Role-Play Three: Business-to-Business Student Role-Play Video 530 Role-Play Four: Business-to-Business 532 Travolta Engineering (B) 534 Travolta Engineering (A) 541 APPENDIX B: Personal Selling Experiential Exercises 550 Sell Yourself on a Job Interview 550 Resume, Follow-Up Letter, E-Mail 552 How to Create a Portfolio 560 What's Your Style Senser, Intuitor, Thinker, Feeler? 563 APPENDIX C: Comprehensive Sales Cases can also be Used as Role-Plays 566 1 Zenith Computer Terminals, Inc.: Development of a Total Business Plan 566 2 Wallis Office Products: Defining New Sales Roles 570 3 United Cosmetics, Inc.: Creating a Staffing Program 573 4 Mead Envelope Company Is a New Compensation Plan Needed? 575 5 McDonald Sporting Goods Company: Determining the Best Compensation Program 577 APPENDIX D: Selling Globally 583 When in Rome, Do What the Romans Do 583 Customer Gift Giving in Japan 584 Respecting the Traditions of India 584 Wanted: Global Sales Managers and Salespeople 585 A Typical Sales Day in China: What to Expect 585 Little Cold Calling in Japan 586 Chinese Culture: Don't Shy Away from Negotiating 587 Salespeople Are Making It Happen in China 588 Watch Out in Russia and China They May Bug Your Room to Find Out Your Secrets 588 French versus American Salespeople 589~ Israel The Home Court Advantage 590 Working a Deal in the Arab World 590 The Japanese Take Relationship Selling Seriously 590 Europe and IBM Changes had to be Made 591 Selling Experiential Exercise 592 Glossary of Selling Terms 593 Notes 603 Photo Credits 608 Index 610