Chapter
17
Some questions answered in
Chapter 17
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 1
Which areas of the company work with
salespeople to satisfy customer needs?
How do salespeople coordinate the efforts of
various functional areas of the company?
How do salespeople work with sales
managers and sales executives?
How do company policies, such as
compensation plans, influence salespeople?
How do salespeople work within the
company to resolve ethical issues?
What is the organizational structure, and
how does it influence salesperson activities?
Chapter
17
Sales representatives
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 2
Who does a sales
representative
represent?
Chapter
17
Role clarity
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
The degree to which the salesperson’s
perceptions of the sales role are correct.
17 - 3
Chapter
17
Role conflict
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 4
Occurs when two
partners demand
incompatible actions
of the salesperson.
Chapter
17
A role conflict example, part 1
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Management wants to clear out the
inventory of PD2s. They have cut
the price 10% and added a 5%
commission bonus for every PD2
sold.
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 5
The technicians, who install and fix
your company’s products, think the
PD2 is a piece of junk. They told
you not to sell it – customers will
hate it plus it makes the technician’s
lives miserable because they have to
fix it all the time.
Chapter
17
A role conflict example, part 2
Questions
answered
Representation
Role
clarity
Role
conflict
A customer’s needs are such that
you think the PD2 might work for
them.
Role
ambiguity
Forecasting
Compensation
Unethical
requests
The technician says to sell them the
TW7, but you believe it costs too
much for this customer.
Selling
organization
Terminology
Your manager reminds you that you
need one more sale this month to
make your quota.
What do you do?
17 - 6
Chapter
17
Role ambiguity
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 7
Occurs when the
salesperson is not
sure what actions
are required.
Chapter
17
Predicting the future
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
What industry to you expect to
work in when you graduate?
Forecasting
Compensation
Unethical
requests
What are your expectations
about this industry’s future?
Selling
organization
Terminology
What will happen if you are
wrong?
17 - 8
Chapter
17
Which compensation plan
offers the least security?
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 9
1. Straight salary
2. Straight commission
3. Drawing plan
4. Combination plan
Examples of quotas
Chapter
17
Questions
answered
Representation
Role
clarity
Role
conflict
Exhibit 17.3
Type of Quota:
Revenue
Quota
Margin
$1,000K
Role
ambiguity
Points
300K
100 pts.
Actual Performance
Forecasting
Salesperson 1
987K
296K
125
Compensation
Salesperson 2
1,238K
285K
84
Salesperson 3
1,134K
304K
100
Unethical
requests
Selling
organization
Points: (1) Margin/10K; (2) all others are 5 pts each
Terminology
Point Performance
17 - 10
Margin
Ads
Displays New Accts.
Total
Salesperson 1
30
30
45
20
125
Salesperson 2
29
20
15
20
84
Salesperson 3
30
25
30
15
100
Alternative point method
Chapter
17
Questions
answered
Representation
Exhibit 17.3
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
Type
Margin point quota
= 30
30
100%
Ad quota (6 ads)
= 30
25
84%
Display quota (4 displays)
= 20
30
150%
New account quota
(4 new accounts)
= 20
15
75%
Total
17 - 11
Salesperson 3 % Quota
Quotas Performance Performance
100
points
100
An example of a
draw compensation plan
Chapter
17
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Exhibit 17.3
ON:
Jan. 1
Feb. 1
Mar. 1
Apr. 1
in salary
$ 500
$ 500
$ 500
$ 500
in draw
1,500
-0-
in commission
-0-
1,500
2,000
2,500
Total paycheck
$2,000
$2,000
$2,000
$2,000
Amount owed to
the company
$1,500
$1,500
$1,000
-0-
The rep is paid:
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 12
(500) (1,000)
Chapter
17
Strategies for handling unethical requests
from a manager, part 1
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
Your manager tells you to
recommend the deluxe model
of your product to a particular
customer. The customer’s
needs are such that the
economy model is better
suited.
The customer trusts you and
has not shopped the
competition at all.
The customer, being a school
system, qualifies for a
government discount but your
manager told you to charge
full price.
17 - 13
Chapter
17
Strategies for handling unethical requests
from a manager, part 2
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 14
Which strategy do you
think is best to use?
1. Leave the organization
or ask for a transfer.
2. Blow the whistle or
threaten to blow the
whistle.
3. Appeal to a higher
authority.
4. Agree to the demand,
but fail to carry it out.
5. Ignore the request.
Chapter
17
Promotion from sales
to sales management
Questions
answered
Representation
Role
clarity
Role
conflict
List the skills you think
would be most needed
by a sales manager.
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 15
Are these the skills of a
superior salesperson?
Team-selling organization
Chapter
17
Questions
answered
Representation
Exhibit 17.7
Role
clarity
Role
conflict
V.P.,
Sales
Role
ambiguity
Forecasting
Account
Sales Manager
Compensation
Unethical
requests
Selling
organization
Account
Manager
Terminology
Computer
Specialist
Computer
Specialist
Test Equip.
Specialist
17 - 16
Account
Manager
Account
Manager
Multi-level selling
Chapter
17
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Exhibit 17.8
Buying company
Selling company
Vice President
of Purchasing
Vice President
of Sales
Director of
Purchasing
Account Manager
Engineer
Product Specialist
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 17
Chapter
17
Any questions about the terminology?
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 18
Activity quota
Bonus
Bottom-up
forecasting
Cap
Combination plan
Commission
Commission base
Commission rate
Customer service
rep
Draw
Ethics review
board
Field sales
manager
Field salespeople
Field support rep
Geographic
salesperson
Gross margin
quota
House account
Inbound
Incentive pay
Inside salespeople
Internal
partnerships
Key accounts
Multilevel selling
National account
manager (NAM)
Open-door policy
Outbound
Profit quota
Quota
Revenue quota
Salary
Sales quota
Straight
commission
Straight salary
Strategic account
manager (SAM)
Team selling
Chapter
17
Questions
answered
Representation
Role
clarity
Role
conflict
Role
ambiguity
Forecasting
Compensation
Unethical
requests
Selling
organization
Terminology
17 - 19