Sales Management Aspects Essay

Ethical issues facing salespersons

Salespersons face a myriad of ethical issues in the course of executing their duties as illustrated herein.

Information sharing

Salespersons are charged with the responsibility of maintaining business secrets in a bid to protect their firm’s competitive edge. Customers from competing firms may enquire about the operations of a certain business. In order to make sales, a customer may require a salesperson to enter into a non-disclosure agreement. Such an agreement may be necessary as the salesperson may gain access to the customer’s personal information. A customer can sue the salesperson in the event that s/he fails to protect the customers’ personal information. Therefore, sales managers have an obligation to ensure that the sales force respects the customers’ agreements.¹

Customer requests

In the course of undertaking their sales activities, “customers may request the salespersons for something special, which might be contrary to the company’s policies”². The request may either be reasonable, but against the company’s policies or illegal according to the stipulated company policies. For example, a customer may request a price discount, which s/he might be entitled to according to the set-price discrimination laws. One the other hand, the salesperson might be compelled to offer an illegal request to customers. In the event that other clients discover this trend, they might be angered, and thus develop a perception that the salesperson is untrustworthy. This aspect might have adverse effects on the reputation of the salesperson, and hence the performance of the organisation with regard to generating sales.³

Anticompetitive practices

Sales managers experience intense competition and pressure to enhance optimal organisational performance. Subsequently, they engage in price discriminatory practices, which is unethical and illegal. For example, the sales manager might propose a particular product to be sold at a high price to a particular customer and a lower price to another customer. Such a practice may affect the reputation of an organisation adversely amongst various customer groups. Subsequently, sales managers have an obligation to ensure that their business operations adhere to acceptable competitive practices.⁴.

Use of puffery

Salespersons has an obligation to ensure that organisations maximise their sales revenue. Therefore, they are required to drive the revenue by making as high sales as possible. In some instances, the salesperson might use puffery or misrepresentation in order to make sales. Puffery entails “making positive statements about a product or service being offered, which might not be necessarily true”⁵. Despite its acceptance in marketing, salespersons may be forced to exaggerate the product information, which constitutes misrepresentation. Therefore, offering misleading statements is one of the unethical practices faced by salespersons.⁶ Despite this aspect, sales managers are required to ensure that their organisations attain the set sales target.

Personal selling

Personal selling is concerned with building relationships with customers in order to make sales. Subsequently, one can assert that personal selling aims at developing and sustaining mutually satisfying results between customers and sellers. The past few decades have been characterised by an increment in the rate of innovation with regard to new technology. Consequently, marketers are increasingly adopting emerging technologies such as e-commerce in an effort to increase sales. Despite this aspect, the benefits of personal selling cannot be overlooked.

First, personal selling is very effective in transforming an organisation into a customer-oriented entity. Salespersons focus on understanding the customers’ interests by creating a strong contact with customers through effective communication. Most customers do not have sufficient information on what they want. It is the responsibility of salespersons to assist such customers in understanding how the product they are selling will solve the consumers’ problems. Therefore, a salesperson should not push a particular product to a customer, which s/he might not need. On the contrary, technology ignores the customers’ individual needs.⁷ Personal selling provides salespersons with an opportunity to respond to unexpected and intuitive issues raised by customers. Therefore, salespersons display high command of the products being marketed. They are using technological approaches in marketing limits an organisation’s ability to respond to such intuitive issues⁸

Personal selling is more dependable as compared to technology. Some customers prefer dealing with individuals in order to understand and judge their actions rather than dealing with technology. This trend arises from the view that it is possible to determine the extent to which the salesperson is dependable. This goal can be achieved by evaluating their professional images such as honesty and the degree to which they can be trusted⁹ Moreover, customers can judge the extent of a salesperson’s dependability from subsequent events. On the other hand, most customers still perceive technology as vague, and thus, the trust factor is greatly diminished when it comes to technology. Such a perception might translate into adverse effects on an organisation’s sales revenue.

The probability of making sales through personal selling mechanisms is higher as compared to technological approaches. One of the reasons for this observation is the high degree of likeability that is associated with personal selling. Therefore, personal selling provides an opportunity for the development of a high emotional factor between the seller and the customer, which is limited with regard to technology.

In summary, personal selling is still relevant, despite the high prevalence of technology in making sales due to the level of personalisation associated with personal selling. Salespersons are in a position to nurture a strong relationship with potential customers by enquiring more on the customers’ wants. Despite this aspect, technology has influenced the personal selling process significantly. For example, salespersons use the Internet and computer-based technologies in undertaking some of their activities, such as online ordering and gaining instant access to their business data.

Advantages and disadvantages of using the internet to build customer relationship

The internet has provided businesses with an opportunity to develop a strong customer relationship by its ability to provide customers and vendors with a virtual meeting place.¹⁰ Businesses can achieve a number of benefits by building customer relationship using the Internet. First, the Internet provides businesses with an opportunity to access and interact with a large number of potential customers. Previous studies show that more than a billion individuals around the globe use the Internet. The Internet also provides businesses with an opportunity to respond to customer issues on a real-time basis. Moreover, organisations are in a position to get instant market feedback. Subsequently, an organisation can undertake the necessary improvements in order to enhance customer relationship.¹¹

A substantial amount of cost, time, and effort are involved in the process of building customer relationship using conventional methods. For example, using the Internet eliminates the need to employ additional customer service representatives in order to address the issues raised by customers. The Internet provides an alternative of posting all the information regarding a product or service on the Internet where customers can easily access. One of the ways through which the Internet makes this scenario possible is by designing the ‘frequently asked questions’ section on a company website. The Internet also provides businesses with an opportunity to build customer relationship on a 24 /7 basis. Therefore, the likelihood of developing and sustaining effective customer relationship is high.¹²

Despite the aforementioned benefits, building customer relationships solely based on the Internet can lead to loss of customers. A substantial proportion of customers are not well informed on how to use the Internet. The greatest threat associated with using the Internet in developing customer relationship relates to cybercrime. Subsequently, the Internet exposes customers to fraudulent activities. For example, customers can lose their confidential information through spamming. Therefore, the success with which an organisation develops customer relationship using online platforms is dependent on the effectiveness with which the necessary Internet technologies have been configured and implemented. Implementing Internet network security products is a challenge to businesses that do not have the necessary expertise on such issues.¹³

The extent to which an organisation develops a strong customer relationship through the Internet is limited by a lack of personal connection. Customer relationships through the Internet are mostly developed through impersonal methods; for example, the email. Therefore, if an organisation deals with products that require extensive personal selling in order to persuade and explain the product benefits, marketing such a product using the Internet might not result in the desired outcome. Subsequently, one can assert that Internet marketing makes it difficult for organisations to express the necessary personal touch.¹⁴

Recruitment and selection

Most sales managers carry the responsibility of recruiting and selecting the necessary sales force in addition to their supervisory role. However, the sales managers must have the support of the top managers. The exercise of employee recruitment and selection is an important element in organisations’ efforts to attain competitive advantage. Effective recruitment and selection of the workforce increase the rate of employee retention. The selected employees tend to develop a strong organisational identification. Subsequently, the organisation gains sufficient rewards from its initial and future investment aimed at improving employee performance.

Human capital is one of the most important organisational assets. Therefore, lack of such capital limits an organisation’s ability to take advantage of other factors of production¹⁵. Furthermore, effective recruitment and selection of salespeople minimise the cost of operation. This scenario arises from the view that an organisation will not be required to undertake occasional recruitment and selection.

Recruiting and selecting the right salespeople enable organisations to avoid possible financial losses arising from ineffective performance and penalties from third parties. For example, the selected people understand the intricacies associated with sales. Therefore, they are capable of adhering to the set rules and regulations in undertaking their duties.

Failure to undertake effective recruitment and selection of the salespeople might cause an organisation to encounter a number of problems. First, the organisation might experience inadequate sales coverage. A salesforce that does not have the necessary sales knowledge might not be effective in ensuring that the organisation’s products or services gain a high market penetration rate. The effectiveness with which an organisation develops a strong customer relationship is adversely affected. Subsequently, the overall organisational productivity and profitability are greatly reduced.

Selecting the wrong sales personnel may result in increased cost of operation. The organisation may be forced to undertake comprehensive training in order to overcome the deficiencies. In a bid to ensure that the salespersons are trained adequately, the organisation may be required to outsource the services of human resource consultants.

Another major challenge that an organisation might encounter relates to high turnover rates. The turnover may be either intentional or unintentional. For example, the selected personnel might consider quitting if they fail to undertake their tasks successfully. Alternatively, the organisation might decide to terminate the services of such employees. A high rate of turnover amongst an organisation’s workforce might adversely affect its ability to attain the set target.

In addition to the above challenges, sales managers might experience problems in the course of undertaking their supervisory roles. For example, the sales manager’s ability to undertake other sales management functions may be hindered by the ‘bad hires’. In summary, one can assert that effective recruitment and selection of salespeople is critical in an organisation’s effort to attain the set sales target. Subsequently, sales managers should develop a comprehensive salespersons’ recruitment program.

Bibliography

Bidgoli, Hossein. The handbook of technology management. Hoboken: John Wiley, 2010.

Dopson, Lea. Food and beverage cost control. Hoboken: John Wiley and Sons, 2011.

Doyle, Stephen. Information and communication technology: vocational A level. Cheltenham: Stanley Thornes, 2001.

Fjermestad, Jerry, and Nicholas Romano. Electronic customer relationship management. Armonk: M.E Sharpe, 2006.

Gupta, John. Business studies. New York: Tata McGraw-Hill, 2007.

Heinemann, Gerrit, and Christoph Schwarzi. New online retailing; innovation and transformation. Wiesbaden: Gabler, 2010.

Hisrich, Robert, and Ralph Jackson. Selling and sales management. Hauppauge: Barrons, 2004.

Ingram, Thomas. Professional selling: a trust-based approach. Mason: South-Western, 2008.

Ingram, Thomas. Sales management; analysis and decision making. Armonk: Sharpe, 2012.

Jain, Atul. Cyber crime: issues threats and management. New Delhi: Isha Books, 2005.

Johnston, Mark, and Greg Marshall. Contemporary selling; building relationships, creating value. New York: Routledge, 2013.

Koekemoer, Ludi. Marketing communications. Lansdowne: Juta Academics, 2004.

Zikmund, William, and Barry Babin. Exploring marketing research. New York: Cengage Learning, 2006.

Footnotes

1. Hossein Bidgoli, The handbook of technology management (Hoboken, N.J: John Wiley, 2010), 34.
2. Robert Hisrich and Ralph Jackson, Selling and sales management (Hauppauge: Barrons, 2004), 77.
3. Thomas Ingram, Sales management: analysis and decision making (Armonk, NY: Sharpe, 2012), 123.
4. Hisrich and Jackson, 166.
5. Ibid, 109.
6. Dopson Lea, Food and beverage cost control (Hoboken, John Wiley and Sons, 2011), 98.
7. Mark Johnston and Greg Marshall, Contemporary selling; building relationships, creating value. (New York: Routledge, 2013), 272.
8. Thomas Ingram, Professional selling: a trust-based approach (Mason: South-Western, 2008), 165.
9. John Gupta, Business studies (New York: Tata McGraw-Hill, 2007), 234.
10. Gerrit Heinemann and Christoph Schwarz, New online retailing; innovation and transformation. (Wiesbaden: Gabler, 2010), 127.
11. William Zikmund and Barry Babin, Exploring marketing research (New York: Cengage Learning, 2006), 183.
12. Ludi Koekemoer, Marketing communications (Lansdowne: Juta Academics, 2004), 56.
13. Atul Jain, Cybercrime: issues threats and management (New Delhi: Isha Books, 2005), 135.
14. Stephen Doyle, Information and communication technology: vocational A level (Cheltenham: Stanley Thornes, 2001), 234.
15. Jerry Fjermestad and Nicholas Romano, Electronic customer relationship management (Armonk, NY: M.E Sharpe, 2006), 47.