Question

Que 1a) Explain the folowing sales management activities (i) managing the sales force (ii) recruiting and selecting salespeople (iii) sales training (iv) motivating and compensenting sales people ( noting these as well , financial rewards , commission , salary , bonus sales contest ).

   1b) Explain what is ethical and legal issues in personal selling.

   1c) Describe the following in sales management in relation to ethical and legal issues in personal selling (i) the sales manager and the salesforce (ii) the sales force and corporate policy (iii) the sales person and the customer.

Answer 1

1 a) i. Managing the sales force

Managing the sales force is a process of handling the sales team in various aspects of selling. Allotment of territories, setting up of targets, revenue collections, sales promotions and periodic review of sales achievement vis-a-vis targets are some of the activities associated with managing the sales force.

ii) Recruiting and selecting sales people

This activity pertains to hiring of competent sales personnel for handling sales of the company. Recruitment critieria is set and expected competencies of sales personnel is defined with regards to qualification, age and experience. Based on applications received, suitable candidates are interviewed and selected.

iii) Sales training

Recruited sales personnel are given training with regards to company policy, product information, pricing and dealing with distributors and stake holders to make them market ready

iv) Motivating and compensating sales people

Motivation is necessary for keeping morale of sales force high to achieve sales target. This is done by devising adequate rewards in the forms of sales commissions or additional perks on achievement of targets and bonuses. Rewards may also be in kind by way of gifts or holiday trips.

1 b) Personal selling involves direct interaction with the customer. The customer buys the product based on personal interaction and as promoted by the sales personnel. Ethical or legal issues herein is the honesty and accuracy of product description and contract terms as explained to the customer.

1 c) i) Sales manager needs to explain and sensitize its sales force on the importance of being ethical while promoting products and signing contracts. Sales force may go overboard in trying to promote the product and incorporate some not so true aspects. This needs to be controlled by the sales manager.

ii) Sales force needs to be explained corporate policy on ethical way of working and its pitfalls.

iii) Sales person upon interaction with customer for finalizing of deals needs to be ethical in approach and should not deviate from corporate policy and true facts.