©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Building Trust and Sales Ethics Developing Trust and Mutual Respect with Clients 2

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Learning Objectives Explain what trust is. Explain why trust is important. Understand how to earn trust. Know how knowledge bases help build trust and relationships. Understand the importance of sales ethics. L 1 L 2 L 3 L 4 L 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Key Thoughts Trust is crucial to developing successful relationships with customers. Build trust by being competent, compatible, candid, customer-oriented, and dependable. You must have the initiative and motivation to learn about your company, your customers, and the markets in which you and they compete. Professional salespeople, by definition, must be ethical or they are not professional.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Q. 1. What is Trust?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 What is Trust?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Why is Trust Important? A fundamental competitive strategy of a growing number of organizations is to build long-term mutually beneficial relationships with their customers. The ability of those organizations’ salespeople to earn their customers’ trust is essential to the success of that strategy.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Q. 2. How does a salesperson earn trust?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 How to Earn Trust Trust Expertise Customer Orientation DependabilityCandorCompatibility

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Expertise The ability, knowledge, and resources to meet customer expectations. Expertise must translate into observable results and contribution for the buyer.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Dependability Predictability of a person’s actions. The salesperson must also demonstrate an ability to handle confidential information.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Candor Honesty of the spoken word. It means being upfront with others, especially with regard to issues/factors that may impact those others. It takes only one misleading event to lose all credibility.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Customer Orientation The act of salespeople placing as much emphasis on the customer’s interests as their own. Salespeople with a customer orientation advise rather than “sell”.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Compatibility A salesperson’s commonalities with other individuals. Customers generally like to deal with salespeople whom they can feel a bond.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Readiness to Earn Trust

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Knowledge Bases Help Build Trust and Relationships Companies provide extensive training to prepare salespeople for the field.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Training

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Ethical Dilemma

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Q. 3. What are the knowledge bases that help build trust and relationships?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Industry Knowledge Knowledge Need: the dynamics, structure, culture, and forces that affect the industry or industries in which they work. Benefit: ability to 1) develop and execute effective selling strategies, and 2) be viewed as a market information resource.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Company Knowledge Knowledge Need: understand their company’s culture, mission, goals, policies, and procedures. Benefit: ability to effectively and accurately represent the company when interacting (e.g., negotiating) with its prospective and current customers.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Product Knowledge Knowledge Need: a thorough understanding of their product offerings and the various sources of value they provide Benefit: be perceived (by the customer) as experts and capable of accurately matching solutions to the needs of the customer

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Service Knowledge Knowledge Need: understand their company’s service capabilities, including limitations, fees, time-frames, and the value they add Benefit: ability to match their company’s service capabilities to the needs of their customers

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Service Knowledge Areas

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Promotion and Price Knowledge Knowledge Need: understand the details of, and how to manage, promotional programs and the pricing policies of their products Benefit: ability to 1) facilitate their customers’ participation in promotional programs and 2) effectively negotiate terms

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Market and Customer Knowledge Knowledge Needs: understand the markets they serve and their customers, including needs, personalities, and communication styles. Benefit: ability to 1) develop and implement effective selling strategies, and 2) clearly communicate relevant solutions.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Competitor Knowledge Knowledge Need: their competitors and respective market offers and how they are perceived in the market. Benefit: to position their products against those of their competitors’.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Technology Knowledge Knowledge Need: understand how utilize sales technology hardware and software (e.g., internet, CRM, laptops, smart phones) Benefit: to leverage technology to me more competitive... work smarter not harder

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Technology in the Sales Effort

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Ethical Dilemma

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Q. 4. What is Ethics?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Ethics Ethics refers to right and wrong conduct of individuals and institutions of which they are a part.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Clearly Wrong Clearly Right Ethical Decisions Ethics Ethics refers to right and wrong conduct of individuals and institutions of which they are a part. Ethical Dilemma

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 What is Ethics “…that behavior which is the ‘right’ thing to do, given the circumstances” Four principles: –H–Honesty –I–Integrity –F–Fairness –C–Concern for others

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Image of Salespeople

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Unethical Behavior

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Advice for Salespeople

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Q. 5. What are the three most important unethical practices that bring about a negative image of salespeople?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Categories of Unethical Behavior

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Non-Customer-Oriented Behavior

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Methods for Ethical Decision Making Teleology – morality of decision based on the consequence (Consequentialism) – Egoism (self-interest) – Utilitarianism (greatest good for greatest number) Deontology – morality of decision based on intentions (Categorical Imperatives) Relativism – morality of decision based on individual and past experience Absolutes – morality is the same for everyone

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Q. 6. How must companies deal with sales ethics?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Dealing with Sales Ethics Training Specific guidelines in all areas Method for reporting unethical behavior Must be aware of all international laws

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Q. 7. What are the five common ethical traps?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Five Common Ethical Traps The False Necessity trap The Doctrine-of-relative-filth trap The Rationalization trap The Self-deception trap The Ends-justify-the-means trap

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Q. 8. What are the tools for doing the right thing?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Doing the right thing! Is the action you are considering legal? How would you see the problem if you were on the opposite side? What are alternate solutions? Can you discuss the problem with someone whose advice you can trust? How would you feel if your family, friends, employer, or coworkers learned of your actions?