© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Managing Within Your Company 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? Some questions answered in this chapter are: 16-2 CHAPTER 16 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin “By building close internal relationships with other sales representatives within my company, it not only benefits my sales, it also benefits the customers.” ~Amy Boynton Cardinal Health

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Building Internal Partnerships The importance of internal partnerships –The ability to work with groups inside the company can directly affect the sales rep’s pocketbook The role of sales –Salespeople also sell their customers’ needs to their companies Selling internally –Salespeople must often rely on personnel in other areas of the firm to do their respective jobs properly 16-4 McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1.Understand that it’s your problem. 2.Appeal to a higher objective. 3.Probe to find out and understand the personal and professional needs of the internal customer. 4.Use arguments for support that adequately address internal customers’ needs as well as your own. 5.Do not spend time or energy resenting the internal customers’ inability to accept or understand your sense of urgency. 6.Never personalize any issues. 7.Be prepared to negotiate Seven Principles of Selling Internally McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Manufacturing –Concerned with low production cost Administration –Processes orders and makes sure salespeople get paid for them Shipping –Need for expedited or special-handling deliveries Customer service –Great source of information Marketing –Responsible for generating leads Sales 16-6 Company Areas Important to Salespeople McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Sales management –The sales executive Size and organization of the sales force Forecasting Expense budgets Control and quota setting 16-7 Partners in the Sales Organization McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. –Types of quotas Sales quota Revenue quota Profit quotas/gross margin quotas Activity quotas 16-8 Partners in the Sales Organization (continued) McGraw-Hill/Irwin Quota Represents a quantitative minimum level of acceptable performance for a specific period.

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Salary –Regular payment regardless of performance Incentive pay –Pay tied to some level of performance Commission –Incentive pay for an individual sale Bonus –Incentive pay for overall performance in one or more areas Straight salary method 16-9 Compensation and Evaluation McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Straight commission –Pays a certain amount per sale and includes a base and a rate but not a salary Commission base –The item from which commission is determined Draw –Money paid to a salesperson against future commissions Combination plans –Provide salary and commission Compensation and Evaluation (continued) McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. How Different Types of Compensation Plans Pay McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved An Example of a Draw Compensation Plan McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Partners in the Sales Organization (continued) Field sales managers –Evaluating performance –Training –Behavioral Observation Scale: McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Managing Ethics in Sales Ethics and the sales executive –Open door policies –Review boards Ethics and the field sales manager Responding to unethical requests McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Leave the organization or ask for a transfer. Negotiate an alternative course of action. Blow the whistle, internally or externally. Threaten to blow the whistle. Appeal to a higher authority. Agree to the demand but fail to carry it out. Refuse to comply with the request. Ignore the request Strategies for Handling Unethical Requests from a Manager McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Geographic salespeople Account salespeople –Key accounts –National account managers (NAMs) –Strategic account managers (SAMs) –House account Salespeople as Partners McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved SAMs in the Sales Force McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Product specialists –Salespeople specializing by types of products Inside versus outside –Field sales people –Outside salespeople –Field support rep –Customer service rep Salespeople as Partners (continued) McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved Inside/Outside Sales Team McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved Team Selling Organization McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved Forming Sales Teams for Multilevel Selling McGraw-Hill/Irwin

© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Successful salespeople manage resources and build internal partnerships. Salespeople have a responsibility to carry the voice of the customer to other areas of the organization. Salespeople work with a sales executive and a field sales manager. The four basic methods of compensation are: straight salary, straight commission, bonus, and a combination plan. Sales executives are responsible for creating a culture that supports ethical activities. Partnerships must be built with the sales force, too Summary McGraw-Hill/Irwin