1. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-1 Salespeople Born or Made? Training and development represent critical determinants of future success. A strong ego, self-confidence, decisiveness, and a need for achievement must also be extant in sales force candidates.

2. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-2 Continued on next slide

3. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-3

4. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-4 Variables That Cause Differences in Performance Factors controlled or influenced by sales mangers account for the largest variance in sales performance. –role perception –Skills –motivation Research suggests successful salespeople are both born and made.

5. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-5 Costs of Inappropriate Selection Odds a salesperson will quit or be terminated in first five years of employment = 50/50. People lacking the necessary personal traits/abilities tend to leave the company before training and experience can turn them into productive sales performers.

6. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-6 Characteristics of Successful Salespeople Aptitude and personal characteristics may place an upper limit on an individual's ability to perform in a sales job. Enthusiasm consistently ranks among the most important personal attributes in selling. General sales experience typically means more than specific product or industry experience.

7. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-7 Research into Personal Characteristics Personal factors influencing variance in sales performance fall into: –physical and behavioral characteristics –psychological traits and abilities

8. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-8 Summary of the Effect of Variables on Salesperson Performance VariablePercentage of Variance in Performance Explained Demographic and physical characteristics—physical traits Age*< 5% Gender*< 5% Physical appearance< 5% Background and experience—developmental education and work experience Personal history and family background*Almost 21% Level of educational attainment< 5% Educational content< 5% Sales experience< 5% Nonsales work experience< 5% *Inappropriate or illegal in selecting a job candidate.

9. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-9 Summary of the Effect of Variables on Salesperson Performance VariablePercentage of Variance in Performance Explained Current status and lifestyle—present marital, family, and financial status Marital/family status*Almost 12% Financial statusApproximately 6% Activities/lifestyle*< 5% Aptitude—enduring personal characteristics that determine an individual’s overall ability to perform a sales job Intelligence< 5% Cognitive abilityAlmost 7% Verbal intelligence< 5% Math ability< 5% Sales aptitude< 5% *Inappropriate or illegal in selecting a job candidate.

10. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-10 Summary of the Effect of Variables on Salesperson Performance VariablePercentage of Variance in Performance Explained Personality—enduring personal traits that reflect an individual’s consistent reactions to situations encountered in the environment Responsibility<5% Dominance<5% Sociability< 5% Self-esteem< 5% Creativity/flexibility<5% Need for achievement/intrinsic reward<5% Need for power/extrinsic reward< 5% *Inappropriate or illegal in selecting a job candidate.

11. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-11 Summary of the Effect of Variables on Salesperson Performance VariablePercentage of Variance in Performance Explained Skills—learned proficiencies and attitudes necessary for effective performance of specific job tasks (these can change with training and experience) Vocational skillsAlmost 9.5% Sales presentationAlmost 5% Interpersonal< 5% General managementA little over 9% Vocational esteem<5% *Inappropriate or illegal in selecting a job candidate.

12. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-12 The Importance of Image What type of sales representative has a tougher time making sales? A sloppily dressed sales rep94% An unstylish sales rep (haircut, out of style outfit)75 A physically unattractive sales rep59 An overweight sales rep54 A sales rep with a heavy accent54 A very young looking sales rep32 An older looking sales rep8 Source: Melinda Ligos, “Does Image Matter?” Sales & Marketing Management, March 2001, pp. 52–56.

13. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-13 The Importance of Image What type of sales representative would you avoid hiring? A sloppy dresser 80% A rep who used salty language 78 A rep with visible body piercing or tattoos 77 An unstylish look 51 Male overweight 37 Female overweight 23 A heavy regional foreign accent 20 An unattractive female 20 An unattractive male 13 A very youthful appearance 12 Any older look 2 Source: Melinda Ligos, “Does Image Matter?” Sales & Marketing Management, March 2001, pp. 52–56.

14. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-14 The Educated Sales Force Percent with College Degree by Industry Health service100Electronic components67 Pharmaceuticals100Communications56 Air transportation100Banking46 Printing/Publishing84Construction40 Rubber/Plastics83Trucking/Warehousing33 Manufacturing78Real estate33 Electronics77Retail29 Chemicals73Transportation equipment28 Business services72 Source: Christen P. Heide, Dartnell’s 30th Sales Force Compensation Survey (Chicago: The Dartnell Corporation, 1999), p. 173.

15. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-15

16. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-16

17. McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 8-17