Sales Management

1
Sales Management

• Social, Ethical, and Legal Responsibilities of
  Sales Personnel

2
Sales Management

• Managements Social Responsibilities
• Organizational Stakeholders
• Customers
• Community
• Creditors
• Government
• Owners
• Managers
• Employees
• Suppliers

3
Sales Management

• Managements Social Responsibilities
• Economic Responsibilities
• Produce Goods and Services
• Maximize Profits

• Legal Responsibilities
• Fulfill their Economic Goals Within a Legal
  Framework

4
Sales Management

• Managements Social Responsibilities
• Ethical Responsibilities
• Act with Equity, Fairness Impartiality
• Respect the Rights of Individuals

• Discretionary Responsibilities
• Voluntary Guided by Companys
• Desire to Make Social Contributions

5
Sales Management

• Managements 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

• Managements 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

• Managements 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

• Managements Ethical Responsibilities
• Company to Salesperson dilemmas
• Level of Sales Pressure
• Setting Sales Goals (realistic/obtainable)
• Management Style

9
Sales Management

• Managements Ethical Responsibilities
• Company to Salesperson dilemmas
• Territorial Decisions
• Expanding Territories
• Decreasing Territories
• Creating House Accounts

10
Sales Management

• Managements 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

• Managements Ethical Responsibilities
• Company to Salesperson dilemmas
• Employee Rights
• Termination-at-will
• Privacy
• Sexual Harassment

12
Sales Management

• Managements 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

• Salespersons Ethical Responsibilities
• Salesperson ethics re The Company
• Misuse of Company Assets
• Automobiles
• Expense Accounts
• Samples
• Damaged merchandise credits
• Moonlighting

14
Sales Management

• Salespersons Ethical Responsibilities
• Salesperson ethics re The Company
• Cheating
• Contests
• Holding Sales
• Overloading Customer
• Affecting Fellow Salespeople
• Taking Customers

15
Sales Management

• Managements Salespersons 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

• Managements Salespersons 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

• Managements Salespersons 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

• Managements Salespersons 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

• Managements Salespersons Mutual Ethical
  Responsibilities
• How to Treat The Customer
• Exclusive Dealership
• Purchase from one manufacturer - Clayton Act
• Reciprocity
• Ill Buy Yours If Youll Buy Mine
• FTC and Justice Scrutinize

20
Sales Management

• Managements Salespersons 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