...CHAPTER 1: THE AGE OF SELLING, SELLING AND SALESPEOPLE SELLING IS PERVASIVE The pervasiveness of selling in practically all human endeavors, occupations, preoccupations, and professions that require contact and engagement with people is by itself a compelling reason to formally study the art and science of selling. It is an art because it requires skills that have to be constantly practiced to achieve, at least, a decent level of excellence or perfection; on the other hand, it is also a science because it is an organized common sense and borrows a lot from applied sciences like psychology and sociology. SALESPEOPLE, UNDER THE LENS Salespeople engage in a wide range of activities for the firm. They provide information about the firm’s products and services to target market or customers; they remind and persuade customers to buy them. They are the revenue-earners of the firm. The types of job salespeople do depend on the firm’s mission/vision, goals and objectives, and the role the firm plays in the channel of distribution. Basically, the nature of the job is affected by the type of accounts salespeople handle, such as manufacturers, distributors, wholesalers, retailers, or individual customers. Fred Wiersema, the author of Customer Intimacy, has put it quite candidly that firms are in business because of their customers. Without satisfied and loyal customers, businesses will not grow and prosper. Not even the brilliance of their finance people, neither the charisma...
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...Hire Rookie or Green Salespeople Pros | Cons | Someone new to the territory can create his/hers own relationships with customers and may bring new ideas for prospecting for clients | Recent graduates, may not cost very much but they don’t generate much revenue either, it can take them months to generate revenue. | Green Salespeople do not have a defined sales process, you can train and develop newer recruits in how to do things your way | Hiring green salespeople is a long-term investment | Green Salespeople may be more willing to work for their commissions, and if you give them the right tools, they will be hungrier and sharper as they look to close their deals. | They can be unstable | Since Green sellers are new in the field and don’t have any experience, they will focus on selling exactly what you have, not what they think your services or product could or should be. | | They have just learned the most up to date information from school | | Hire Salespeople with Experience Pros | Cons | Salespeople with experience may know the market and the territory and have a strong track record of selling related products. | Even if they have the experience they might not be able to sell your product, or how to handle your customers. | Sales people with experience will enter your company with skills and established networks that can get you immediate results. | Sales agents with experience generally have deep-rooted habits that could be difficult to break if...
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...The extent of technology usage and salespeople: an exploratory investigation Sylvain Senecal HEC Montreal, Montreal, Canada, and Ellen Bolman Pullins and Richard E. Buehrer University of Toledo, Toledo, Ohio, USA Abstract Purpose – Increasingly, salespeople adopt, or are being asked to adopt, and use a variety of technologies to increase their selling productivity and efficiency. Given this trend, many researchers have begun to explore the question of sales force adoption of technology. However, little work has been done to consider what happens once this technology is adopted. The purpose of this paper is to report two studies that investigated if and why salespeople had different technology usage and if the extent of usage had an impact on their performance. Design/methodology/approach – First, a qualitative study was performed to gain insights about extent of technology usage and the reasons that may explain differences. In order to test some of the research propositions that emerged from the qualitative study, an empirical study was conducted with 130 salespeople. Findings – Innovativeness was found to be helpful in distinguishing between different technology usage levels across various technologies (internet, e-mail, intranet, etc.). Results also suggest three potential antecedents of technology use, as well as a potential moderator of the usage to performance relationship. Originality/value – This paper provides a research agenda for studying this important area. Further...
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...countries. There are three key findings. 1.Culture has an effect on salespersons' use of "smart" selling techniques. 2. Latin salespeople seem to use "smart" selling techniques significantly more than their British counterparts but not more than their German counterparts. 3.The more behavior-based the sales force control system, the stronger positive/negative effect on sales- persons' likelihood to select key decision-makers at higher hierarchical positions in a customer's organization for Latin salespeople versus for Anglo and Germanic salespeople. The key variables and the key hypotheses There are two control variables in the research -- sales experience and selling context (i.e., industrial, consumer, or services) because experience affects salespersons' motivation and selling context may be relevant to the choice of selling strategies. Also, compensation is another variable was used to figure out the outcome. Under the research aspect of the effect of culture on salespeople’s behavioral strategies, there are three hypotheses. HI: Latin salespeople are more likely to use "smart" selling techniques than Anglo and Germanic salespeople. H2a: The more behavior- (outcome-) based the sales force control systems, the stronger positive (negative) effect on salespersons' use of ''smart" selling techniques for Anglo and Germanic salespeople than for Latin salespeople. H2b: The higher (lower) level of fixed salary in total...
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...9-507-039 REV: DECEMBER 1, 2006 MODULE NOTE Personal Selling and Sales Management Salespeople represent a large part of labor in most economies. In its latest report,1 the U. S. Bureau of Labor Statistics estimates that nearly fourteen million people are employed in sales and salesrelated occupations and that these people earn over $450 billion in wages. Moreover, salespeople represent a major investment for many companies, accounting for as much as 40% of their costs. A company’s fortune often rises and falls on the productivity of its salespeople. The goal of this module is to develop a better understanding of what salespeople do, what motivates them to succeed, and how to effectively manage their efforts. The Salesperson - A Boundary-Spanning Role Salespeople work on the boundary between a company and its customers. To the company, the salesperson is the voice of the customer. To the customer, the salesperson is the physical embodiment of the company. This boundary-spanning role creates unique tension for salespeople because they are constantly forced to reconcile the competing interests of both the buying and the selling organizations. Figure A: The Salesperson’s Boundary-Spanning Role Company Salesperson Customer Source: Casewriter. 1 These data come from the May 2005 National Occupational Employment and Wage Estimates report, which was accessed online at http://www.bls.gov/oes/current/oes_nat.htm#b41-0000 on 1 December 2006. See occupation code...
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...skills. Customers report that Alliance salespeople don’t seem to care about the customers or their needs. The salespeople are not taking the time to get the information they need in order to help the customers resolve their needs. They seem to be focused on closing the sale instead of building a long-term relationship with the customers and customizing their sales to their customer’s needs. Alliance’s salespeople need to develop a relationship strategy with their customers and then a selling strategy for each of those individual accounts. Alliance needs to look at what criteria they currently use in their hiring decisions and conduct a needs assessment. It seems that they are good at finding people who can learn about their products and persuade a customer to buy it. However, this is not the way to form long-term relationships with their customers. Alliance should revamp their sales job qualifications and focus a little more on a candidate’s aptitude and personal traits. Their customers said Alliance’s salespeople seem arrogant and self-centered. Next, Alliance should set their training objectives. They may like that their salespeople are knowledgeable and can close the deal, however they need to improve their relationship skills. They could have leaders or managers mentor their salespeople. They could role play in order to practice their listening and response skills. These managers could also go along with their salespeople and observe how they handle their accounts...
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... | | Karla M. Kassey Dr. Hwang Lu Bus 520 Assignment 2 July 29, 2012 Discuss why Joe’s employees need to understand the importance of how people form perceptions and make attributions: Great Northern American, according to (Hellriegel, 2011), is a telemarketing organization that sells office supplies, promotional products, arts-and-crafts, and computer supplies over the phone. This publication will study the importance of how people form perceptions and make attributions as well as well as which learning theory (either the operant conditioning, social learning theory or learning theory) would be most appropriate for Joe Salatino to apply to motivate his salespeople. This publication will also study how Joe Salatino can use the value of self-efficacy to ensure that he hires quality salespeople that have the potential to be highly successful in a telemarketing environment. According to (Hellriegel, 2011, p. 104), “Perception is the process by which the individual selects, organizes, interprets, and responds to information.” Based on information from (Duggan, 2012), perception also includes the gathering of sensory information through the body via sight, sound, touch, taste and smell. The Attribution Process, according to (Hellriegel, 2011, p. 119), “refers to the ways in which people come to understand the causes of their own and others’ behaviors.” The need to understand a person’s perceptions and attribution processes is due to the nature of the environment...
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...edition is protected against unauthorized copying under Title 17, United States Code. ProQuest Information and Learning Company 300 North Zeeb Road P.O. Box 1346 Ann Arbor, MI 48106-1346 © Theresa Hueftle, 2005 Abstract The purpose of this study was to determine the most effective way to deliver just-in-time learning using mobile technology for newspaper salespeople working in the field. The goal was to produce a pedagogical platform that was time sensitive, had on the job accessibility, and did not overload the salesperson’s mental abilities. The instructional design prototype used an action research approach. The study was based on the works of Gloria Gery (electronic performance support) and Ruth Clarks (building expertise). This study provided the information from an authentic newspaper environment to develop a mobile performance support prototype for newspaper salespeople. Results revealed the hardware, authoring software, content, architecture, and learning theory for developing a prototype. The Pocket PC could deliver the mobile EPSS because the device met the needs of the mobile EPSS and salespeople based on survey results and small group interviews. The researcher selected RoboHelp for developing the prototype because the software was easy to use and had the ability to output multiple formats. Emergent evidence suggested that the mobile EPSS should...
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... |suitable area | | Salespeople |Activeness |口 1 mark for salespeople use a |ˇ0 mark for none | | |friendly greeting to make the customer | | | |feel welcome and important when the | | | |customer enter the store | | | |口 1 mark for salespeople say good bye |ˇ0 mark for none | | |to customers welcome customers for next| | | |time shopping when customers are | | | |leaving. | | | |口 1 mark for salespeople approach |ˇ0 mark for none | | |actively customer in the store | | | |口 1 mark for salespeople always tell |ˇ0 mark for none...
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...best customers to describe their best/worst experiences in dealing with your company. 2. Many sales technologies are designed so that salespeople spend more time in front of a computer than in front of a potential customer. We see salespeople spending less than 30% of their time seeing customers. Action step: In addition to next month’s sales quota, set a time quota and mandate that salespeople spend X amount of their time with customers or prospects. Customers should come first, everything else second. 3. Fewer salespeople are reaching their quota this year. CSO Insights research confirms that only 47.8% of all forecasted deals are closed. Action step: Improve your pipeline analytics. There are great solutions on the market that are waiting to be explored. 4. Sales managers are not sufficiently trained in coaching their salespeople, yet most sales leaders agree that of all their development initiatives, sales coaching will deliver the biggest payback. Action step: There are a number of highly effective sales-coaching programs on the market. Select one that fits. 5. Customers have radically changed their buying behaviors. Traditional sales-training programs rely on obsolete tools that are ineffective to meet tomorrow’s sales challenges. Action step: Bring customers to your sales-training sessions. Your salespeople will be eager to learn from them. 6. Collaboration between sales and marketing needs to be improved. Sales leaders agree that the majority...
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...construct consisting of the following: Intensity or the magnitude of mental activity and physical effort expended towards a certain action; Persistence or the extension of the mental activity and physical effort over time; and Direction or the choice of specific actions in specific circumstances. Understanding motivation Motivation should be understood at two levels: What motivates salespeople (the reasons behind the intensity and persistence of mental and physical effort expended) How salespeople choose their action (the direction or decision to engage in specific actions in specific circumstances) Motivational theories addressing the issue: “what” motivates salespeople Need Hierarchy Theory Self-actualisation needs Esteem needs Belongingness needs Security needs Physiological needs Physiological needs (e.g., basic salary); security needs (e.g., pension plan); belongingness needs (e.g., friends in work group); esteem needs (e.g., job title); self actualisation needs (e.g., challenging job). Motivational theories addressing the issue: “what motivates salespeople” wo Factor Theory otivation factors (e.g., achievement, recognition, responsibility) ygiene factors (e.g., supervision, pay, job security, working conditions) he theory argues that: he motivation factors or motivators are the primary causes of otivation and...
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...the value of salespersons’ mapping of buying centre structure Prabakar Kothandaraman, William Paterson University, NJ, USA Raj Agnihotri, William Paterson University, NJ, USA* Rolph E. Anderson, Drexel University, Philadelphia, USA Perhaps the most important, yet underutilised resources in customer relationship management are salespeople. Drawing upon literature from social network theory, personal selling, sales management, and industrial buying behaviour, buying centre mapping is proposed as a tool for salespeople to improve customer relationship management (CRM). A framework linking a salesperson’s systematic mapping of buying centre structure to the CRM strategy development and implementation is outlined. Implications for theory and practice are discussed in detail. Keywords Industrial buying, Salespeople, CRM, Social network keywords Introduction The man who correctly understands how a particular structure works can prevent it from working or make it work differently with much less effort than a man who does not know these things. Bailey (1969, p. 108) Development of marketing strategies and tactics relies heavily on the ability of salespeople to understand buying organisations that they deal with and to bring that knowledge back to disseminate throughout the selling organisation for better customer relationship management (CRM). Managing customer relationships is the focus of successful business-tobusiness marketing in today’s hypercompetitive market environment. CRM...
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...months. We propose the following: 1. The sales structure will still be structured both geographically and by product. Salespeople who work on non-key accounts will either sell Hello or Blue Tern products, and will either work in the east or west coast divisions of each brand. In order to create specific geographic territories for Hello, we plan to ask Hello for customer account records and information to make this distinction as best as we can. Each division within the product structure will also have its own manager trained by the old Blue Tern regional managers and chosen from the top existing district managers. 2. Top salespeople will be invited to join key-accounts teams that will be trained on both Hello and Blue Tern products. They will obviously maintain the larger accounts of both companies. Key account managers will be in charge of these teams, chosen from the remaining district managers. 3. Some of the non-key accounts salespeople from the Hello division will be asked to maintain Hello’s online presence. Top sellers will not be needed to maintain the website because their talents need to be used elsewhere. (Online sales involve marketing/advertising but do not involve direct selling activities.) 4. We currently have 212 salespeople; however we plan to hire 100 more. We would like the salesforce to be broken up as follows: -20 top salespeople will be...
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...Research Paper 781 SALESFORCE COMPENSATION PLANS IN ENVIRONMENTS WITH ASYMMETRIC INFORMATION Rajiv Lal* and Richard Staelin** October, 1984 * Graduate Shool of Business, Stanford University, Stanford, California 94305 Fuqua School of Business, Duke University, Durham, North Carolina 27706 ** The authors wish to thank Professors Milton Harris, Joseph Hotz, Jim Noel, and Tom Paifrey for their several helpful comments and suggestions. ABSTRACT In this paper, we present a theory of salesforce compensation plans to explain the type of plans implemented by IBM and St. Regis Paper where the members of the salesforce are provided an opportunity to choose a compensation scheme from a menu of contracts offered by the firm~We model this interaction in an agency-theory framework, as in Basu, Lal, Srinivasan and Staelin (1984), but relax the assumptions of information symmetry and salesforce homogeneity to demonstrate the optimality of such compensation plans. We also show that even when these assumptions are relaxed there are situations where the plans characterized by Basu, Lal, Srinivasan and Staelin (1984) are still optimal. 1. Introduction Most salesforce compeiisation plans include not only a salary, but also some form of remuneration (e.g., comrni~~sions) based on the output of the salesperson. Recently, Basu, Lal, Srinivasan, and Staelin (1984), hereafter referred to as BLSS, proposed a model which provided insights into why the proportion of salary to total...
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...Salatino use to motivate his salespeople? Salatino’s methods are primarily based upon positive reinforcement methods, using secondary reinforcers. In the case study, it mentioned several devices in the salesroom. There are rotating blue lights that flash when a deal is on. There are large dry-erase boards where a manager would draw “snowballs” at the end of each sale, which would serve as visual cues to the salespeople. By providing commissions to his salespeople, Salatino uses secondary reinforcers, ie money, to incentivize his salesforce to keep selling. Salespeople can receive between 5% and 12% commission, and the level of commission would provide an increasing incentive to sell the higher-commission items. I would assume that the salespeople that had been there awhile also might enjoy the frenetic pace of the sales floor, and that would serve as a secondary reinforcer for them to come to work each day. It’s probably an exciting environment for them to work in. 2. What kind of reinforcement schedule is used by Great Northern American to pay salespeople? I would break this question into two portions. Simplistically, Great Northern American probably uses a fixed interval schedule to pay their salespeople according to a specified pay period, perhaps biweekly or monthly. If you consider the earning of commission as “payment,” though, you could also argue that they use a form of a fixed ratio schedule to pay their salespeople. When the “sale is on,” each...
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