David Jobber Geoff Lancaster Barbara Jamieson
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This course text is part of the learning content for this Edinburgh Business School course. In addition to this printed course text, you should also have access to the course website in this subject, which will provide you with more learning content, the Profiler software and past examination questions and answers. The content of this course text is updated from time to time, and all changes are reflected in the version of the text that appears on the accompanying website at http://coursewebsites.ebsglobal.net/. Most updates are minor, and examination questions will avoid any new or significantly altered material for two years following publication of the relevant material on the website. You can check the version of the course text via the version release number to be found on the front page of the text, and compare this to the version number of the latest PDF version of the text on the website. If you are studying this course as part of a tutored programme, you should contact your Centre for further information on any changes. Full terms and conditions that apply to students on any of the Edinburgh Business School courses are available on the website www.ebsglobal.net, and should have been notified to you either by Edinburgh Business School or by the centre or regional partner through whom you purchased your course. If this is not the case, please contact Edinburgh Business School at the address below:
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developments. If you'd like to suggest a change to this course, please contact us: comments@ebs.hw.ac.uk. Sales Force Management David Jobber is an internationally recognised marketing academic and is Professor of Marketing at the University of Bradford School of Management. Before joining the faculty at the School of Management, he worked in sales and marketing for the TI Group and was Senior Lecturer in Marketing at Huddersfield University. He has wide experience of teaching sales and marketing at undergraduate, postgraduate and executive levels and has held visiting appointments at the universities of Aston, Lancaster, Loughborough and Warwick. Supporting his teaching is a record of achievement in academic research and scholarship. David has published four books and over 100 research papers in such internationally-rated journals as the
Adviser to the Research Assessment Exercise panel. Geoff Lancaster MSc, PhD, FCIM, FLCC, MCMI, MCIPS Geoff is Professor of Marketing at London Metropolitan University. He is chairman of a corporate communications company Durham Associates Group Ltd, Castle Eden, County Durham with offices in London and Hull; Bahrain; Jeddah, Riyadh and Dhahran – Kingdom of Saudi Arabia; Oman; Dubai; Iran (Kish); Ghana; Zambia; Nigeria and South Africa. The company has received the Queen's Award for Exporting. He was previously Senior Examiner and Senior Academic Adviser to the Chartered Institute of Marketing. He is now Chief Examiner to the Institute of Sales and Marketing Management. He has published marketing textbooks with McGraw-Hill, Macmillan, Butterworth-Heinemann and Kogan-Page. Barbara Jamieson is a Senior Teaching Fellow and Marketing course leader. With an extensive career in industry and academia, she brings a wealth of practical and theoretical knowledge to her teaching. Before entering academia she built up more than 15 years’ commercial experience in advertising, marketing research and marketing consultancy. She holds an MBA, an honours degree in business organisation, and is a Chartered Marketer. Barbara Jamieson delivers a broad range of marketing-related courses across the MBA, MSc and DBA programmes. As well as her teaching roles, she supports faculty in the Edinburgh Business School international learning partner network to promote quality in programme delivery, with particular emphasis on using the case method approach. Since 2005 she has played a leading role in several projects supported by the Global Business School Network to build management education capacity in Kenya, involving seminars and workshops to promote case method teaching and develop case writing skills among university faculty. She is pursuing doctoral-level research on the relationship between distance learning student characteris- tics, the student learning experience and learning outcomes. She is leading a related initiative to explore how new technology can enrich the student learning experience.
First Published in Great Britain in 2004. © Jobber, Lancaster 1990 Partly adapted from: Selling and Sales Management 6th Edition by David Jobber and Geoffrey Lancaster ISBN 0 273 674 153 First published as Sales Technique and Management by Macdonald and Evans Ltd. in 1985. Sixth edition published by Pearson Education Limited in 2003. © Macdonald and Evans Ltd. 1985© David Jobber and Geoffrey Lancaster 1990 © Longman Group UK Ltd. 1994 © Pearson Professional Ltd. 1997 © Financial Times Professional Ltd. 2000 © Pearson Education Ltd. 2003 All other material © Barbara Jamieson 2004 The rights of David Jobber, Geoff Lancaster and Barbara Jamieson to be identified as Authors of this Work has been asserted in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved; no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publishers. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers.
Sales Force Management Edinburgh Business School v
Preface xi Acknowledgements xiii PART 1 SALES PERSPECTIVE Module 1 Development and Role of Selling in Marketing 1/1 1.1
Background 1/2 1.2 The Nature and Role of Selling 1/2 1.3
Types of Selling 1/3
1.4 Image of Selling 1/6 1.5
The Nature and Role of Sales Management 1/8
1.6 The Marketing Concept 1/9 1.7
Implementing the Marketing Concept 1/11
1.8 The Relationship between Sales and Marketing 1/21 Learning Summary 1/26 Review Questions 1/27 Case Study 1.1: Mephisto Products 1/32
Module 2 Sales Strategies 2/1 2.1
Sales and Marketing Planning 2/1 2.2
The Planning Process 2/2
2.3 Establishing Marketing Plans 2/2 2.4
The Place of Selling in the Marketing Plan 2/12
Learning Summary 2/21
Review Questions 2/22
Case Study 2.1: Auckland Engineering 2/26
Consumer and Organisational Buyer Behaviour 3/1 3.1
Differences between Consumer and Organisational Buying 3/2 3.2
Consumer Buyer Behaviour 3/4
3.3 Factors Affecting the Consumer Decision-Making Process 3/8 3.4 Organisational Buyer Behaviour 3/15 3.5
Factors Affecting Organisational Buyer Behaviour 3/21
3.6 Developments in Purchasing Practice 3/24 3.7 Relationship Management 3/28
Learning Summary 3/29
Review Questions 3/29
Contents vi
Edinburgh Business School Sales Force Management Case Study 3.1: The Lost Computer Sale 3/37
PART 2 SALES TECHNIQUE Module 4 Sales Responsibilities and Preparation 4/1 4.1
Sales Responsibilities 4/1 4.2 Preparation 4/8 Learning Summary 4/14 Review Questions 4/15 Case Study 4.1: The O’Brien Company 4/18
Module 5 Personal Selling Skills 5/1 5.1
The Opening 5/3 5.2
Need and Problem Identification 5/4
5.3 The Presentation and Demonstration 5/6 5.4 Dealing with Objections 5/11 5.5 Negotiation 5/15 5.6
Closing the Sale 5/17
5.7 Follow-Up 5/21
Learning Summary 5/22
Review Questions 5/23
Case Study 5.1: The Mordex Photocopier Company 5/26
Key Account Management 6/1 6.1
What Is Key Account Management? 6/2 6.2
Advantages and Dangers of Key Account Management 6/3
6.3 Deciding Whether to Use Key Account Management 6/4 6.4
The Tasks and Skills of Key Account Management 6/5
6.5 Key Account Management Relational Development Model 6/6 6.6
Global Account Management 6/9
6.7 Building Relationships with Key Accounts 6/10 6.8
Key Account Information and Planning System 6/13
Learning Summary 6/16
Review Questions 6/17
Case Study 6.1: Cloverleaf 6/20
Contents Sales Force Management Edinburgh Business School vii
Module 7 Relationship Selling 7/1 7.1
From Total Quality Management to Customer Care 7/2 7.2
From JIT to Relationship Marketing 7/6
7.3 Reverse Marketing 7/8 7.4
From Relationship Marketing to Relationship Selling 7/9
7.5 Tactics of Relationship Selling 7/11 Learning Summary 7/15 Review Questions 7/16 Case Study 7.1: Midlands Switchgear 7/19
Module 8 Direct Marketing 8/1 8.1
What Is Direct Marketing? 8/2 8.2 Database Marketing 8/4
8.3 Managing a Direct Marketing Campaign 8/6 Learning Summary 8/15 Review Questions 8/16 Case Study 8.1: RU Receiving Me? 8/18
Module 9 Internet and IT Applications in Selling and Sales Management 9/1 9.1
The Changing Nature of the Salesforce 9/2 9.2
The Wireless and ‘Mobility’ Revolution 9/4
9.3 The Real Impact of the Internet on Selling 9/6 9.4
Customer Relationship Management 9/10
9.5 The Use of Technology in the Retail Industry 9/11 9.6
The Use of Technology to Improve Sales Management 9/14
Learning Summary 9/17
Review Questions 9/17
SALES ENVIRONMENT Module 10 Sales Settings 10/1 10.1
Environmental and Managerial Forces Impacting Sales 10/2 10.2 Sales Channels 10/6
10.3 Industrial, Commercial or Public Authority Selling 10/11
10.4 Selling for Resale 10/13
10.5 Selling Services 10/18 10.6 Sales Promotions 10/20
10.7 Exhibitions 10/25
10.8 Public Relations 10/29
Contents viii
Edinburgh Business School Sales Force Management Learning Summary 10/35 Review Questions 10/36 Case Study 10.1: Yee Wo Plastic Piping Components 10/39
Module 11 International Selling 11/1 11.1
Introduction 11/2 11.2 Economic Aspects
11/2 11.3 International Selling at Company Level 11/4 11.4 Cultural Factors in International Selling 11/5 11.5 Organisation for International Selling 11/12 11.6 Pricing 11/20 11.7 Japan: A Study in International Selling 11/22 Learning Summary 11/27 Review Questions 11/28 Case Study 11.1: Wardley Investment Services 11/32
Module 12 Law and Ethical Issues 12/1 12.1
The Contract 12/2 12.2 Terms and Conditions 12/3 12.3 Terms of Trade 12/4 12.4 Business Practices and Legal Controls 12/7 12.5 Ethical Issues 12/11
Learning Summary 12/12
Review Questions 12/12
Case Study 12.1: Kwiksell Cars 12/15
SALES MANAGEMENT Module 13 Recruitment and Selection 13/1 13.1
13/1 13.2 Preparation of the Job Description and Specification 13/4 13.3 Recruitment and Communication 13/8 13.4 Designing an Effective Application Form and Preparing a Shortlist 13/10 13.5 The Interview 13/11
13.6 Supplementary Selection Aids 13/16
Learning Summary 13/18
Review Questions 13/19
Case Study 13.1: Plastic Products Ltd 13/22
Contents Sales Force Management Edinburgh Business School ix
Module 14 Motivation and Training 14/1 14.1
Motivation 14/1 14.2 Leadership 14/13
14.3 Training 14/15
Learning Summary 14/24
Review Questions 14/25
Case Study 14.1: Selling Fountain Pens 14/28
Organisation and Compensation 15/1 15.1
Organisational Structure 15/1 15.2 Determining the Number of Salespeople 15/7 15.3 Establishing Sales Territories 15/9 15.4 Compensation 15/11 Learning Summary 15/15 Review Questions 15/15 Case Study 15.1: Silverton Confectionery 15/20
PART 5 SALES CONTROL Module 16 Sales Forecasting and Budgeting 16/1 16.1
Purpose 16/2 16.2 Planning 16/2
16.3 Levels of Forecasting 16/6
16.4 Qualitative Techniques 16/7 16.5 Quantitative Techniques 16/10
16.6 Budgeting Purposes 16/21 16.7 Budget Determination 16/21
16.8 The Sales Budget 16/23
16.9 Budget Allocation 16/24 Learning Summary 16/25 Review Questions 16/26 Case Study 16.1: Pizza Ristorante Thaws the Frozen Pizza Market 16/32
Module 17 Salesforce Evaluation 17/1 17.1
The Salesforce Evaluation Process 17/1 17.2 The Purpose of Evaluation 17/2 17.3 Setting Standards of Performance 17/3 17.4 Gathering Information 17/4 Contents x Edinburgh Business School Sales Force Management 17.5 Measures of Performance 17/4
17.6 Appraisal Interviewing 17/13 Learning Summary 17/13 Review Questions 17/14 Case Study 17.1: MacLaren Tyres 17/16
Appendix 1 Practice Final Examinations A1/1 Practice Final Examination 1 1/2 Practice Final Examination 2 1/4
Appendix 2 Answers to Review Questions A2/1 Module 1 2/1 Module 2 2/3 Module 3 2/5 Module 4 2/7 Module 5 2/9 Module 6 2/11 Module 7 2/14 Module 8 2/15 Module 9 2/16 Module 10 2/16 Module 11 2/17 Module 12 2/18 Module 13 2/19 Module 14 2/20 Module 15 2/22 Module 16 2/23 Module 17 2/24
Index I/1 Sales Force Management Edinburgh Business School xi
Preface The text covers what must still be the most important element of the marketing mix for most students and practitioners. With a move away from the selling function towards more esoteric areas of marketing over the past few years, this vital aspect of marketing has been somewhat neglected. However, in the end it has to be face-to- face contact that eventually wins the order, and this text therefore explains and documents the selling and sales management process from both the theoretical and practical viewpoints. More precisely, the text is split into five logical parts: Sales Perspective, Sales Technique, Sales Environment, Sales Management and Sales Control. Sales Perspec- tive examines selling in its historical role and then views its place within marketing and a marketing organisation. Different types of buyers are also analysed in order to help us achieve an understanding of their thinking and organise our selling effort accordingly. Sales Technique is essentially practical and covers preparation for selling, the personal selling process and sales responsibilities. Sales Environment looks at the institutions through which sales are made; this covers channels, including industrial, commercial and public authority selling followed by selling for resale. International selling is an increasingly important area in view of the ever increasing ‘internationalisation’ of business and this merits a separate chapter. Sales Management covers recruitment, selection, motivation and training, in addition to how we must organise and compensate salesmen from a managerial standpoint. Finally, Sales Control covers sales budgets and explains how this is the starting point for business planning. Sales forecasting is also covered in this final section, and a guide is given to the techniques of forecasting and why it is strictly a responsibility of sales management and not finance. Each module concludes with review ques- tions and a mini-case study, together with formal practice questions typical of those the student will encounter in the examination room. This edition includes a new module ‘Internet and Information Technology Ap- plications in Sales’. This reflects the advances made in technological tools to improve salesforce productivity and modes of doing business. This module includes a section on customer relationship management which is of growing importance to many companies. A full module is also devoted to direct marketing in recognition of the impact methods such as direct mail, telemarketing and database marketing are having on selling to customers. This new edition also contains many new and updated cases to support the effective teaching of selling and sales management. The use of ‘Selling and Sales Management in Action’ case histories has been expanded to show how principles can be applied in practice. Also the section on ethics in sales has been expanded. A new section covering leadership has been added to the module entitled ‘Motivation and Training’. Finally the new edition includes coverage of selling as a career in the first module. As always this edition continues to place emphasis on international aspects of selling and sales manage- ment to reflect the importance of international markets to companies. Preface xii
Edinburgh Business School Sales Force Management Finally, the authors would like to thank Gordon Lucas for information upon which ‘the diversion’ and ‘winning and losing orders’ are based. We should like to make it clear that in all cases in the text the words ‘he’ and ‘she’ or ‘him’ and ‘her’ are interchangeable and no discrimination is intended. We should also like to thank Richard Cork, Belinda Dew snap, Martin Evans, Jason Greenaway, Diana Luck, Paul Miller, Lynn Parkinson and Michael Starkey for providing excellent material on the applications of IT in sales. We also wish to thank all of the case contributors for supplying excellent case studies to enhance the practical aspects of the book. Sales Force Management Edinburgh Business School xiii
Acknowledgements We are grateful to the following for permission to reproduce copyright material: Figure 3.1 from Blackwell, R.D., Miniard, P.W. and Engel, J.F. (2000) Consumer
Western, a division of Thomson Learning www.thomsonrights.com ©2000; Table 3.1 adapted from National Reader Survey, July 2000–June 2001; Figure 8.1 adapted from ‘Direct Marketing Expenditure per capita’, European Marketing Pocket Book 2002, NTC Publications: Henley-on-Thames; Figure 8.3 adapted from ‘Addressed Direct Mail Volume’, European Marketing Pocket Book 2000, NTC Publications: Henley-on-Thames; Figure 9.3 from Foss, B. and Stone, M. (2001) Successful Customer
and Jobber, D. (1989) A study of the Training of Salespeople in the UK, University of Bradford Management Centre Working Paper. In some instances we have been unable to trace the owners of copyright material, and we would appreciate any information that would enable us to do so.
Sales Force Management Edinburgh Business School
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