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Sales Management

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  1. Sales Management Social, Ethical, and Legal Responsibilities of Sales Personnel

  2. Sales Management Management’s Social Responsibilities Organizational Stakeholders • Customers • Community • Creditors • Government • Owners • Managers • Employees • Suppliers

  3. Sales Management Management’s Social Responsibilities Economic Responsibilities • Produce Goods and Services • Maximize Profits • Legal Responsibilities • Fulfill their Economic Goals Within a Legal Framework

  4. Sales Management Management’s Social Responsibilities Ethical Responsibilities • Act with Equity, Fairness & Impartiality • Respect the Rights of Individuals • Discretionary Responsibilities • Voluntary & Guided by Company’s • Desire to Make Social Contributions

  5. Sales Management Management’s Ethical Responsibilities “Ethics” • A set of moral principles and values that governs the behavior of a person or a group with respect to what is right and wrong.

  6. Sales Management Management’s Ethical Responsibilities What is an Ethical Dilemma? • There is no uniform codification of ethics so differences and dilemmas about proper behavior can occur. • A situation when all of the choices for a solution to a problem have some element that could create negative ethical or personal consequences.

  7. Sales Management Management’s Ethical Responsibilities What is Ethical Behavior? • Being honest • Maintaining confidence and trust • Following the rules • Conduct yourself in proper manner • Treat others fairly • Loyalty to company and associates • Carry your share - 100% effort

  8. Sales Management Management’s Ethical Responsibilities Company to Salesperson dilemmas: • Level of Sales Pressure • Setting Sales Goals (realistic/obtainable) • Management Style

  9. Sales Management Management’s Ethical Responsibilities Company to Salesperson dilemmas: • Territorial Decisions • Expanding Territories • Decreasing Territories • Creating House Accounts

  10. Sales Management Management’s Ethical Responsibilities Company to Salesperson dilemmas: • To Tell The Truth? • Performance • At Termination • The Ill Salesperson • Alcohol or Drug Abuse Treatment • Employee Rights

  11. Sales Management Management’s Ethical Responsibilities Company to Salesperson dilemmas: • Employee Rights • Termination-at-will • Privacy • Sexual Harassment

  12. Sales Management Management’s Ethical Responsibilities Company to Salesperson dilemmas: • Reason to Respect Employee Rights • High quality of work life • Attracting/Retaining good people • Avoid costly back-pay and awards • Establish balance between employee and employer rights/obligations

  13. Sales Management Salesperson’s Ethical Responsibilities Salesperson ethics re: The Company • Misuse of Company Assets • Automobiles • Expense Accounts • Samples • Damaged merchandise credits • Moonlighting

  14. Sales Management Salesperson’s Ethical Responsibilities Salesperson ethics re: The Company • Cheating • Contests • Holding Sales • Overloading Customer • Affecting Fellow Salespeople • Taking Customers

  15. Sales Management Management’s & Salesperson’s Mutual Ethical Responsibilities How to Treat The Customer • Bribes or Gifts • Offering • Buyer Originated • Misrepresentation • “Sales Puff” vs. Statements of Fact • Legal Ramifications

  16. Sales Management Management’s & Salesperson’s Mutual Ethical Responsibilities How to Stay Legal • Know capabilities and characteristics of company products and service • Statements of Praise vs. Statements of Fact • Educate Customers before the Sales • State Product Capabilities Accurately • Know Technical Specifications

  17. Sales Management Management’s & Salesperson’s Mutual Ethical Responsibilities How to Stay Legal • Avoid Exaggerated Product Safety Claims • Know Federal and State Laws • Keep Current with Design Changes and Revisions • Avoid Opinions Stick to Testing Statistics • Never Overstep Authority (Pricing or Policy)

  18. Sales Management Management’s & Salesperson’s Mutual Ethical Responsibilities How to Treat The Customer • Price Discrimination • Customers who buy similar quantities should receive same pricing • Tie-in Sales • Violates Clayton Antitrust Act

  19. Sales Management Management’s & Salesperson’s Mutual Ethical Responsibilities How to Treat The Customer • Exclusive Dealership • Purchase from one manufacturer - Clayton Act • Reciprocity • “I’ll Buy Yours If You’ll Buy Mine” • FTC and Justice Scrutinize

  20. Sales Management Management’s & Salesperson’s Mutual Ethical Responsibilities How to Treat The Customer • Sales Restrictions • “Cooling Off” Laws - 3 days • Green River Ordinances

  21. Sales Management International Ethical Issues U.S. Laws Do Not Stop at The Border • Employees of American Business Should Know the Law • Stick to Features and Benefits and Sell to Companies Not Individuals

  22. Sales Management Selling Ethics Surveys Indicate Managers’ Experience Most Managers: • Face Ethical Problems • Believe Managers and Employees Should Be More Ethical • Are More Ethical with Friends than Strangers • Lower Ethics to Meet Job Goals

  23. Sales Management Selling Ethics Surveys Indicate Managers’ Experience Most Managers: • Are Aware of Ethical Issues in Industry and Company • Believe Ethics Can Be affected by Supervisors and Company Environment

  24. Sales Management Selling Ethics Management Practices Help Responsiveness Some Guidelines: • Top Management Takes Lead • CEO, President, Vice Presidents Must Champion • Carefully Select Leaders • Establish/Follow Code of Ethics

  25. Sales Management Selling Ethics Management Practices Help Responsiveness Some Guidelines: • Establish/Follow Code of Ethics • Principle Based • Policy Based • Create Ethical Structures • Ethical Committee • Ethical Ombudsman

  26. Sales Management Selling Ethics Management Practices Help Responsiveness Some Guidelines: • Encourage Whistle Blowing • “Silent Witness” Program • Create Ethical Sales Environment • Actions of Top-Level Managers

  27. Sales Management Selling Ethics Management Practices Help Responsiveness Some Guidelines: • Establish Control Systems • Low Bid Review Process • Expense Report Audits