Chapter 16 PERSONAL SELLING AND SALES PROMOTION

MARKETING STARTER: CHAPTER 16

IBM: A Classic Model for Modern Customer-Focused Selling
Synopsis Building upon nearly a century of successful product innovation and solutions selling, IBM has grown into a $107 billion company. Since 1915, what IBM sells has changed dramatically. But what hasnt changed is how IBM sells. IBM salespeople have always been customer relationship developers and solutions providers. Consider Vivek Gupta, who became IBMs top salesperson in its fastest-growing industry (telecommunications) and fastest-growing market (India). When Gupta first joined IBM in 2003, he launched his own extensive investigative effort, getting to know people, learning about IBM and its customers, and developing a rock-solid knowledge of how the companys products and services fit customer needs. Gupta thrives on rooting out customer problems to solve. You have to understand (customers) pain points, he explains. And they are not going to spell them out. Fueled by keen insights and hard work, Gupta has broken into a number of lucrative new markets for Big Blue. IBMs culture has always dictated that its salespeople be part teacher, part psychologist, and part glad -hander, observes one IBM watcher. But Guptas success demonstrates that to be really good in sales today, they also must be part diplomat, part entrepreneur, and part inventorcomplete customer problem solvers. Thus, over the past 100 years, many things have changed as IBM has adapted to the turbulent technological environment. But one thing has remained constantIBM salespeople are still inspired by founder Thomas J. Watsons principles of selling.

Discussion Objective
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A brief and focused 10- to 15-minute discussion of IBMs solutions selling approach will give students a clearer understanding of modern, customer-centered sales. The discussion should also extinguish any lingering, stereotypical perceptions of salespeople as pushy glad-handers. IBM salespeople are well-educated, well-trained professionals who succeed by partnering with corporate customers and solving their problems for mutual gain.

Starting the Discussion

After a brief discussion to highlight the differences between standard selling and IBMs solutions selling, go online at http://www-01.ibm.com/software/commerce/selling-solutions/ to give students a glimpse into the collaborative, professional nature of personal selling at IBM. In fact, it might even significantly boost the number of students interested in learning more about sales careers with organizations such as IBM. Move along quickly guided by the following questions.

Discussion Questions 1. What is the history of IBMs solutions-oriented sales approach? Where does it find its roots? (Founder
Thomas J. Watson hired only top-performing graduates from Ivy League universities, and he insisted that they wear conservative suits and white dress shirts. He demanded the highest ethical standards. IBM provided intensive sales training that focused on developing a deep knowledge of the company and its customers. Above all, Watson stressed, be a good listener, observe, study through observation. This advice became the foundation of what the company later ca me to call solutions selling.)

2. Describe IBMs corporate culture and how it supports a successful customer-focused sales force. (IBMs
customer-focused sales force has been the model for modern personal selling for nearly a century. IBM salespeople have always been customer relationship developers and solutions providers. The companys Copyright2014 Pearson Education

culture has always dictated that its salespeople be part teache r, part psychologist, and part glad-hander. However, to be really good in sales today, salespeople also must be part diplomat, part entrepreneur, and part inventorcomplete customer problem solvers.)

3. How does the IBM story relate to the concepts in Chapter 16 on personal selling? (When it comes to almost
any aspect of managing a sales force, IBM sets the gold standard. Its a great example of the role sales forces play in creating and managing customer relationships. Keep the IBM solutions selling example in hand as you discuss various aspects of designing and managing a sales force.)

CHAPTER OVERVIEW
Use Power Point Slide 16-1 here This chapter concentrates on two more IMC elementspersonal selling and sales promotion. Personal selling is the interpersonal arm of marketing communications, in which the sales force interacts with customers and prospects to build relationships and make sales. Sales promotion consists of short-term incentives to encourage purchase or sale of a product or service. Although this chapter examines personal selling and sales promotion as separate tools, they must be carefully integrated with other elements of the promotion mix.

CHAPTER OBJECTIVES
Use Power Point Slide 16-2 here 1. Discuss the role of a companys salespeople in creating value for customers and building customer relationships. 2. Identify and explain the six major sales force management steps. 3. Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. 4. Explain how sales promotion campaigns are developed and implemented.

CHAPTER OUTLINE
p. 460 INTRODUCTION Building upon nearly a century of successful product innovation and solutions selling, IBM has grown into a $107 billion company. Since 1915, what IBM sells has changed dramatically. But what hasnt changed is how IBM sells. IBM salespeople have always been customer relationship developers and solutions providers. IBMs culture has always dictated that
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p. 461 Ad: IBM

its salespeople be part teacher, part psychologist, and part glad-hander. However, to be really good in sales today, they also must be part diplomat, part entrepreneur, and part inventor complete customer problem solvers. Thus, over the past 100 years, many things have changed as IBM has adapted to the turbulent technological environment. But one thing has remained constantIBM salespeople are still inspired by founder Thomas J. Watsons principles of selling. Assignments, Resources Use Web Resources 1 and 2 here Opening Vignette Questions 1. How would you describe the solutions selling sales culture at IBM? 2. At its heart, what is fundamentally different about IBMs approach compared to competitors? What makes it work better for customers? 3. In your own words, explain how IBMs Vivek Gupta succeeded in India where competitors may have failed. p. 462 PERSONAL SELLING Robert Louis Stevenson once noted everyone lives by selling something. p. 462 The Nature of Personal Selling Personal selling is one of the oldest professions in the p. 462 world. Key Term: Personal Selling The people who do the selling go by many names: salespeople, sales representatives, district managers, p. 465 account executives, sales consultants, sales engineers, Photo: Boeing agents, and account development reps to name just a few. The term salesperson covers a wide range of positions. At one extreme, a salesperson might be an order taker, such as the department store salesperson standing behind the counter. At the other extreme are order getters, whose positions demand creative selling and relationship building for
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Chapter Objective 1

products and services ranging from appliances to industrial equipment. p. 463 The Role of the Sales Force Personal selling is the interpersonal arm of the promotion mix. The role of personal selling varies from company to company. Some firms have no salespeople at allfor example, companies that sell only online or through catalogs, or companies that sell through manufacturers reps, sales agents, or brokers. In most firms, however, the sales force plays a major role. PPT 16-4 Linking the Company with Its Customers The sales force serves as a critical link between a company and its customers. p. 464 They represent the company to customers. They represent customers to the company. p. 464 Photo: Salesperson Links to Customer

PPT 16-3

Coordinating Marketing and Sales A company can take several actions to help bring its marketing and sales functions closer together. It can increase communications between the two groups by arranging joint meetings and by spelling out when and with whom each group should communicate. The company can create joint assignments. The company can create joint objectives and reward systems for sales and marketing. They can appoint marketing-sales liaisonspeople from marketing who live with the sales force and help to coordinate marketing and sales force programs and efforts. The firm can appoint a high-level marketing executive who oversees both marketing and sales.

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 Assignments, Resources Use Discussion Question 1 here Use Additional Project 1 here Use Individual Assignment 1 here p. 464 PPT 16-5 MANAGING THE SALES FORCE Chapter Objective 2

p. 465

PPT 16-6

PPT 16-7

Sales force management is defined as the analysis, planning, implementation, and controlling of sales force p. 465 activities. (Figure 16.1) Key Terms: Sales Force Management, Designing Sales Force Strategy and Structure Territorial Sales Force Structure, The Sales Force Structure Product Sales Force A company can divide sales responsibilities along any of Structure, Customer (or Market) Sales several lines. Force Structure Territorial Sales Force Structure: Each salesperson is assigned to an exclusive geographic area and sells the companys full line of products or services to all customers p. 465 Figure 16.1: Major in that territory. Steps in Sales Force Management Characteristics: The organization defines each salespersons job and fixes accountability. The organization increases the salespersons desire to build local customer relationships. Because each salesperson travels within a limited geographic area, travel expenses are relatively small.

PPT 16-8

Product Sales Force Structure: The sales force sells along product lines. This structure can lead to problems if a single large customer buys many different company products.

PPT 16-9

Customer Sales Force Structure: The sales force is organized along customer or industry lines. Separate sales forces may be set up for different industries, for serving current customers versus finding new ones, and for major accounts versus regular accounts.

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PPT 16-10 Complex Sales Force Structures: A company often p. 466 combines several types of sales force structures when it Photo: Whirlpool sells a wide variety of products to many types of customers over a broad geographic area. p. 466 Sales Force Size

PPT 16-11 Sales force size may range in size from only a few salespeople to tens of thousands. Sales people are one of the companys most productive and expensive assets. Therefore, increases in the size of the sales force can increase sales as well as costs. Workload approach: A company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain them. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. Other Sales Force Strategy and Structure Issues Outside and Inside Sales Forces PPT 16-12 Outside salespeople travel to call on customers in the field. Inside salespeople conduct business from their offices via p. 467 telephone, the Internet, or visits from buyers. Photo: Climax Portable Machine Technical sales support people provide technical Tools information and answers to customers questions. Sales assistants provide administrative backup for outside salespeople. Telemarketers and Internet sellers use the phone and Internet to find new leads and qualify prospects or to sell and service accounts directly. Most companies now use team selling to service large, complex accounts. Sales teams can unearth problems, solutions, and sales opportunities that no individual salesperson could. p. 470 Such teams might include experts from any area or level of Key Terms: Outside the selling firmsales, marketing, technical and support Sales Force (Field services, R&D, engineering, operations, finance, and others. Sales Force), Inside Sales Force
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p. 466

p. 467

In team selling situations, the salesperson shifts from soloist to orchestrator. Shortcomings of team selling: p. 467 1. Salespeople who are used to having customers all to Key Term: Team themselves may have trouble learning to work with Selling and trust others on a team. 2. Selling teams can confuse or overwhelm customers who are used to working with only one salesperson. 3. Difficulties in evaluating individual contributions to the team selling effort can create some sticky compensation issues. Assignments, Resources Use Real Marketing 16.1 here Use Marketing by the Numbers here Use Additional Project 2 here Use Think-Pair-Share 1 here Use Web Resource 3 here p. 468 Recruiting and Selecting Salespeople

In a typical sales force, the top 30 percent of the salespeople might bring in 60 percent of the sales. p. 468 Photo: Great PPT 16-13 The best salespeople possess four key talents: Salespeople 1. 2. 3. 4. Intrinsic motivation Disciplined work style The ability to close a sale The ability to build relationships with customers

When recruiting, companies should analyze the sales job itself and the characteristics of its most successful salespeople to identify the traits needed by a successful salesperson in their industry. Sources of new potential hires: The human resources department gets names from current salespeople, using employment agencies, placing classified ads, searching the Internet, and working through college placement services. Another source is to attract top salespeople from other companies.
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Training Salespeople p. 469 Training programs have several goals. PPT 16-14 1. The training program must teach them about different types of customers and their needs, buying motives, and buying habits. 2. It must teach them how to sell effectively and train them in the basics of the selling process. 3. The training program teaches them about the companys objectives, organization, and chief products and markets, and about the strategies of major competitors. Many companies are adding e-learning to their sales training programs. Most e-learning is Internet-based but many companies now offer on-demand training via mobile devices. Assignments, Resources Use Individual Assignment 2 here p. 470 Compensating Salespeople p. 469 Ad: Rep Race

PPT 16-15 Compensation is made up of several elementsa fixed amount, a variable amount, expenses, and fringe benefits. Management must decide what mix of compensation elements makes the most sense for each sales job. Different combinations of fixed and variable compensation give rise to four basic types of compensation plans: 1. 2. 3. 4. Straight salary Straight commission Salary plus bonus Salary plus commission

The average salespersons pay consists of about 67 percent salary and 33 percent incentive pay. Compensation should direct salespeople toward activities that are consistent with overall sales force and marketing objectives.
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p. 470

Supervising and Motivating Salespeople

PPT 16-16 The goal of supervision is to help salespeople work smart by doing the right things in the right ways. The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals. Supervising Salespeople Companies vary in how closely they supervise their salespeople. p. 471 Figure 16.2: How The annual call plan shows which customers and Salespeople Spend prospects to call on and which activities to carry out. Their Time PPT 16-17 The time-and-duty analysis shows the time the salesperson spends selling, traveling, waiting, taking breaks, and doing administrative chores. (Figure 16.2) On average, active selling time accounts for only 11 percent of total working time! Sales force automation systems: Computerized, digitized sales force operations that let salespeople work more p. 472 Photo: SAP effectively anytime, anywhere. p. 471 Selling and the Internet PPT 16-18 Perhaps the fastest-growing technology tool is the Internet. p. 473: Sales organizations around the world are now using the Photo: Cisco Internet to support their personal selling effortsnot just for selling but also for everything from training salespeople to conducting sales meetings and servicing accounts. Motivating Salespeople PPT 16-19 Salespeople often need special encouragement to do their best. Organizational climate describes the feeling that salespeople have about their opportunities, value, and rewards for a good performance. Sales Quotas are Standards stating the amount they should
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sell and how sales should be divided among the companys products. Compensation is often related to how well salespeople meet their quotas. Companies use various positive incentives to increase sales force effort: Sales meetings provide social occasions, breaks from routine, chances to meet and talk with company brass, and opportunities to air feelings and to identify with a larger group. Companies also sponsor sales contests to spur the sales force to make a selling effort above what would normally be expected. Other incentives include honors, merchandise and cash awards, trips, and profit-sharing plans.

Key Term: Sales Quota

Assignments, Resources Use Discussion Questions 2 and 3 here Use Think-Pair-Share 2 here Use Web Resource 4 here Troubleshooting Tip The issues surrounding managing the sales force can be difficult for some students. Individually, each of the decisions a sales manager needs to make seem reasonable enough, but bringing them all together to actually plan how to develop and manage the sales force appears complicated to most undergraduates. These issues can be made simpler by going through each of the concepts carefully and thoroughly. You may also want to have students design their own sales force for a product or service idea they have. This will really drive home the concepts of how you design the sales force, as well as all the management processes. p. 474 Evaluating Salespeople and Sales Force Performance

PPT 16-20 Management sources of salesperson information: Sales reports Call reports
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Expense reports

Formal evaluation forces management to develop and communicate clear standards for judging performance and provides salespeople with constructive feedback and motivates them to perform well. As with other marketing activities, the company wants to measure its return on sales investment. Troubleshooting Tip Sales to most students equate to retail sales, a field that many people dislike. Therefore, many students will not be planning on going into sales as a career, and this could cause them to tune out during this section. You can bring them back by talking about the nature of selling in various kinds of service firms (e.g., accounting firms) that many students may be heading toward after graduation. Also, a discussion of the sophistication and professionalism of the salespeople in companies such as IBM and other business-to-business companies can generate some enthusiasm for this important field. p. 475 THE PERSONAL SELLING PROCESS Chapter Objective 3 p. 475 Figure 16.3: Steps in the Selling Process

PPT 16-21 Steps in the Selling Process (Figure 16.3) The selling process consists of seven steps: 1. 2. 3. 4. 5. 6. 7. Prospecting and qualifying Preapproach Approach Presentation and demonstration Handling objections Closing Follow-Up

Prospecting and Qualifying PPT 16-22 Prospecting is identifying qualified potential customers. The best source of prospects is referrals. Sources of referrals: Current customers
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p. 475 Key Terms: Selling Process, Prospecting, Qualifying

Suppliers and dealers Noncompeting sales-people The Web or other social networks Dropping in unannounced on various offices (a practice known as cold calling)

Qualifying a lead is learning how to identify the good ones PPT 16-23 and screen out the poor ones. Prospects can be qualified by: Their financial ability Volume of business Special needs Location Possibilities for growth

Preapproach PPT 16-24 Preapproach is the stage in which the salesperson learns as p. 476 much as possible about the organization (what it needs, who Key Terms: is involved in the buying) and its buyers (their Preapproach, characteristics and buying styles). Approach, Presentation Call objectives is the task of qualifying the prospect, gathering information, or making an immediate sale. Other call objectives include deciding on the best approach, the best timing, and a determination of the overall sales strategy for the account.

p. 476

PPT 16-25 Approach During the approach step, the salesperson should know how to meet and greet the buyer and get the relationship off to a good start. PPT 16-26 Presentation and Demonstration When presenting, the salesperson tells the value story to the buyer, showing how the companys offer solves the customers problems. The customer-solution approach fits better with a relationship marketing focus.

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But before salespeople can present customer solutions, they must develop solutions to present. PPT 16-27 The qualities that buyers dislike most in salespeople include being: Pushy Late Deceitful Unprepared or disorganized Overly talkative p. 476 Ad: Boise

The qualities that buyers value most in salespeople include: Good listening Empathy Honesty Dependability Thoroughness Follow-through

PPT 16-28 Handling Objections In handling objections, the salesperson should: pp. 477 Use a positive approach Seek out hidden objections Ask the buyer to clarify any objections Take objections as opportunities Turn the objections into reasons for buying

Every salesperson needs training in the skills of handling objections. Closing

PPT 16-29 Salespeople can use one of several closing techniques: Ask for the order Review points of agreement Offer to help write up the order Ask whether the buyer wants this model or that one p. 477 Note that the buyer will lose out if the order is not Key Terms: Handling placed now Objections, Closing,
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PPT 16-30 Follow-Up Follow-up is necessary if the salesperson wants to ensure customer satisfaction and repeat business. Assignments, Resources Use Additional Project 3 here Use Think-Pair-Share 3 and 4 here Use Outside Examples 1 and 2 here Troubleshooting Tip The personal selling process will be a surprise to many students, again because they typically think of retail sales, if theyve thought about sales at all. The importance of all of these steps in the sales process can be highlighted in the discussion of business-tobusiness sales. p. 477 Personal Selling and Managing Customer Relationships

Follow-Up

PPT 16-31 Transaction orientation: The purpose is to help salespeople close a specific sale with a customer. Relationship orientation: The purpose is to serve the p. 478 customer over the long haul in a mutually profitable Photo: P&G relationship. Todays large customers favor suppliers who can sell and deliver a coordinated set of products and services to many locations, and who can work closely with customer teams to improve products and processes. Assignments, Resources Use Real Marketing 16.2 here Use Video Case here Use Small Group Project 1 here Use Individual Assignment 2 here p. 479 SALES PROMOTION Sales promotion consists of short-term incentives to encourage purchase or sale of a product or service now. p. 480 Rapid Growth of Sales Promotion Chapter Objective 4 p. 479 Key Term: Sales Promotion

PPT 16-32 Sales promotion tools are targeted toward final buyers p. 480 (consumer promotions), retailers and wholesalers (trade Ad: Bed Bath & promotions), business customers (business promotions), and Beyond
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members of the sales force (sales force promotions). Today, in the average consumer packaged-goods company, sales promotion accounts for 77 percent of all marketing expenditures. PPT 16-33 Several factors have contributed to the rapid growth of sales promotion: 1. Product managers face greater pressures to increase their current sales. 2. The company faces more competition and competing brands are less differentiated. 3. Advertising efficiency has declined. 4. Consumers have become more deal oriented. The growing use of sales promotion has resulted in promotion clutter. Consumers are increasingly tuning out promotions, weakening their ability to trigger immediate purchase. p. 480 Sales Promotion Objectives Sales promotion objectives vary widely. PPT 16-34 Consumer promotions: Urge short-term customer buying or to enhance customer brand involvement. Trade promotions: Get retailers to carry new items and more inventory, buy ahead, or promote the companys products and give them more shelf space. Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. Sales force: Get more sales force support for current or new products or getting salespeople to sign up new accounts.

Sales promotions should help to reinforce the products position and build long-term customer relationships. Assignments, Resources Use Discussing the Concepts 4 here p. 483 Major Sales Promotion Tools PPT 16-35 Many tools can be used to accomplish sales promotion p. 481
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objectives. Descriptions of the main consumer, trade, and Photo: Kroger business promotion tools follow. Consumer Promotions Consumer promotions include a wide range of tools. PPT 16-36 Samples are offers of a trial amount of a product. Sampling is the most effectivebut most expensiveway to introduce a new product or to create new excitement for an existing one. Coupons are certificates that give buyers a savings when p. 482 Ad: Walgreens they purchase specified products. Most major consumer goods companies are issuing fewer coupons and targeting them more carefully. Rebates (or cash refunds are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. Price packs (also called cents-off deals) offer consumers savings off the regular price of a product. Premiums are goods offered either free or at low cost as an PPT 16-37 incentive to buy a product. Advertising specialties, also called promotional products, are useful articles imprinted with an advertisers name, logo, or message that are given as gifts to consumers. Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale. Contests, sweepstakes, and games give consumers the PPT 16-38 chance to win something. A contest calls for consumers to submit an entry to be judged. A sweepstakes calls for consumers to submit their names for a drawing. A game presents consumers with something every p. 483
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p. 481 Key Term: Consumer Promotions

p. 483

Photo: Red Bull p. 482 Event marketing (or event sponsorships) allows companies Key Term: Event to create their own brand marketing events or serve as sole Marketing (Event or participating sponsors of events created by others. Sponsorship) p. 483 Key Term: Trade Trade Promotions Promotions Trade promotions persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. Manufacturers use several trade promotion tools:

time they buy.

PPT 16-39 A straight discount (also called a price-off, offinvoice, or off-list) An allowance (usually so much off per case) Free goods Push money Free specialty advertising items

Business Promotions p. 483

p. 483 Business promotions are used to generate business leads, Key Term: Business stimulate purchases, reward customers, and motivate Promotions salespeople.

Conventions and trade shows: Firms selling to the industry p. 484 PPT 16-40 show their products at the trade show. Photo: Trade Show Vendors receive many benefits: Opportunities to find new sales leads Contact customers Introduce new products Meet new customers Sell more to present customers Educate customers with publications and audiovisual materials Reach many prospects not reached through their sales forces

Sales contests: Contests for salespeople or dealers to motivate them to increase their sales performance over a given period.
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Developing the Sales Promotion Program Marketers must decide: p. 484 PPT 16-41 1. 2. 3. 4. 5. Size of the incentive Conditions for participation Promotion and distribution Length of the promotion Evaluation

Assignments, Resources Use Discussion Questions 4 and 5 here

Use Critical Thinking Exercise 3 here Use Marketing Technology here Use Marketing Ethics here Use Additional Projects 4 and 5 here Use Think-Pair-Share 5 here Use Web Resource 5 here
Use Company Case here

END OF CHAPTER MATERIAL

Discussion Questions 1. Discuss how the salesperson is a critical link between the company and the customer. (AASCB: Communication; Reflective Thinking) Answer: Salespeople serve as a critical link between a company and its customers. First, they represent the company to customers. They find and develop new customers and communicate information about the companys products and services. At the same time, salespeople represent customers to the company, acting inside the firm as champions of customers interests and managing the buyer-seller relationship. Salespeople relay customer concerns about company products and actions back inside to those who can handle them. They learn about customer needs and work with other marketing and nonmarketing people in the company to develop greater customer value. In fact, to many customers, the salesperson is the companythe only tangible manifestation of the company that they see. Hence, customers may become loyal to salespeople as well as to the companies and products they represent. This concept of salesperson-owned loyalty lends even more importance to the salespersons customer relationship building abilities. Strong relationships with the salesperson will result in strong relationships with the company and its products. Conversely, poor relationships will probably result in poor company and
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product relationships. 2. Compare the three sales force structures outlined in the chapter. Which structure is most effective? (AACSB: Communication; Reflective Thinking) Answer: In the territorial sales force structure, each salesperson is assigned to an exclusive geographic area and sells the companys full line of products or services to all customers in that territory. With a product sales force structure, the sales force sells along product lines. More and more companies are now using a customer sales force structure, in which they organize the sales force along customer or industry lines. Separate sales forces may be set up for different industries, for serving current customers versus finding new ones, and for major accounts versus regular accounts. One structure is not necessarily better than the others. A company must develop one that is appropriate for its needs. A good sales structure can mean the difference between success and failure. Over time, sales force structures can grow complex, inefficient, and unresponsive to customers needs. Companies should periodically review their sales force organizations to be certain that they serve the needs of the company and its customers. 3. Discuss the activities involved in sales force management. (AACSB: Communication) Answer: Sales force management is the analysis, planning, implementation, and control of sales force activities. It includes designing sales force strategy and structure and recruiting, selecting, training, compensating, supervising, and evaluating the firms salespeople. These major sales force management decisions are shown in Figure 16.1. Marketing managers face several sales force strategy and design questions. How should salespeople and their tasks be structured? How big should the sales force be? Should salespeople sell alone or work in teams with other people in the company? Should they sell in the field or by telephone or on the Internet? At the heart of any successful sales force operation is the recruitment and selection of good salespeople who must be given proper training. To attract good salespeople, a company must have an appealing compensation plan. Compensation is made up of several elementsa fixed amount, a variable amount, expenses, and fringe benefits. New salespeople need more than a territory, compensation, and trainingthey need supervision and motivation. This process requires good feedback. And good feedback means getting regular information, from sales reports, call reports, and expense reports, about salespeople to evaluate their performance. The company can also monitor the sales and profit performance data in the salespersons territory. Additional information comes from personal observation, customer surveys, and talks with other salespeople. 4. Define sales promotion and discuss its objectives. (AACSB: Communication) Answer:
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Sales promotion consists of short-term incentives to encourage purchase or sales of a product or service and includes tools such as coupons, sweepstakes, premiums, and trade allowances. Sales promotion objectives vary widely. Sellers may use consumer promotions to urge short-term customer buying or to enhance customer brand involvement. Objectives for trade promotions include getting retailers to carry new items and more inventory, buy ahead, or promote the companys products and give them more shelf space. For the sales force, objectives include getting more sales force support for current or new products or getting salespeople to sign up new accounts. 5. Name and describe the types of consumer promotions. (AACSB: Communication; Reflective Thinking) Answer:

Consumer promotions include a wide range of toolsfrom samples, coupons, refunds,

premiums, and point-of-purchase displays to contests, sweepstakes, and event sponsorships. Samples are offers of a trial amount of a product. Coupons are certificates that give buyers a saving when they purchase specified products. Cash refunds (or rebates) are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. The consumer sends a proof of purchase to the manufacturer, who then refunds part of the purchase price by mail. Price packs (also called cents-off deals) offer consumers savings off the regular price of a product. The producer marks the reduced prices directly on the label or package. Price packs can be single packages sold at a reduced price (such as two for the price of one), or two related products banded together (such as a toothbrush and toothpaste). Premiums are goods offered either free or at low cost as an incentive to buy a product. A premium may come inside the package (in-pack), outside the package (on-pack), or through the mail. Advertising specialties, also called promotional products, are useful articles imprinted with an advertisers name, logo, or message that are given as gifts to consumers. Typical items include T-shirts and other apparel, pens, coffee mugs, calendars, key rings, mouse pads, matches, tote bags, coolers, golf balls, and caps. Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale. Contests, sweepstakes, and games give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort. A contest calls for consumers to submit an entry to be judged by a panel that will select the best entries. A sweepstakes calls for consumers to submit their names for a drawing. A game presents consumers with something every time they buy, which may or may not help them win a prize. Finally, marketers can promote their brands through event marketing (or event sponsorships). They can create their own brand marketing events or serve as sole or participating sponsors of events created by others. The events might include anything from mobile brand tours to festivals, reunions, marathons, concerts, or other sponsored gatherings. 6. Discuss the different types of trade sales promotions and distinguish these types of promotions from business promotions. (AACSB: Communication) Answer:
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Trade promotions can persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. Shelf space is so scarce these days that manufacturers often have to offer price-offs, allowances, buy-back guarantees, or free goods to retailers and wholesalers to get products on the shelf and, once there, to keep them on it. Manufacturers use several trade promotion tools. Many of the tools used for consumer promotions contests, premiums, displayscan also be used as trade promotions. Or the manufacturer may offer a straight discount off the list price on each case purchased during a stated period of time (also called a price-off, off-invoice, or off-list). Manufacturers also may offer an allowance (usually so much off per case) in return for the retailers agreement to feature the manufacturers products in some way. An advertising allowance compensates retailers for advertising the product. A display allowance compensates them for using special displays. Manufacturers may offer free goods, which are extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor or size. They may offer push money cash or gifts to dealers or their sales forces to push the manufacturers goods. Manufacturers may give retailers free specialty advertising items that carry the companys name, such as pens, pencils, calendars, paperweights, matchbooks, memo pads, and yardsticks. Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. Business promotions include many of the same tools used for consumer or trade promotions, but there are two additional major business promotion toolsconventions and trade shows, and sales contests.

Critical Thinking Exercises

1. Suppose you are the marketing coordinator responsible for recommending a sales promotion plan for the market launch of new brand of energy drink sold in supermarkets. What promotional tools would you consider for this task and what decisions must be made? (AACSB: Communications; Reflective Thinking) Answer: There is a long list of consumer promotional tools: samples, coupons, cash refunds, price packs, premiums, advertising specialties, patronage rewards, point-of-purchase displays and demonstrations, contests, sweepstakes, and games. The likely choices for an intensively distributed consumer product are samples and point-of-purchase displays and demonstrations. Samples are often used when introducing new products. POPs include POP signs and demonstrations (samples) that take place at the point of sale. They can be useful in breaking down resistance to new and different products. A coupon that provides an incentive to buy the product is usually given at the POP site. Trade promotions should also be considered including price-offs, allowances, buy-back guarantees, or free goods.

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Beyond selecting the types of promotions to use, marketers must make several other decisions in designing the full sales promotion program. First, they must decide on the size of the incentive. A certain minimum incentive is necessary if the promotion is to succeed; a larger incentive will produce more sales response. The marketer also must set conditions for participation. Incentives might be offered to everyone or only to select groups. Marketers must decide how to promote and distribute the promotion program itself. A $2-off coupon could be given out in a package, at the store, via the Internet, or in an advertisement. Each distribution method involves a different level of reach and cost. Increasingly, marketers are blending several media into a total campaign concept. The length of the promotion is also important. If the sales promotion period is too short, many prospects (who may not be buying during that time) will miss it. If the promotion runs too long, the deal will lose some of its act now force. Evaluation is also very important. The most common evaluation method is to compare sales before, during, and after a promotion.

Marketing Technology: Another Day, Another Deal The humble coupon has gotten a boost from social media. Groupon, the group deal-of-the-day coupon service that started in late 2008, is exceeding even Googles and Facebooks phenomenal early growth rates. It now offers about 1,000 deals every day to more than 70 million subscribers in almost 50 countries. The business model is simple. A business sets up a deal through Groupon, such as offering $50 worth of merchandise for $25, but the deal is only honored if enough people sign up for it. Groupon typically takes a 50 percent cut of all the revenue generated on the deal (that is, $12.50 of the $25 the consumer pays for the groupon). In return, the business gets a lot of store traffic from the deal. Because the business model is so simple and the entry barriers so small, there are now more than 600 of these digital daily-deal online sites. 1. Debate the pros and cons of offering coupons through digital deal-of-the-day Internet sites such as Groupon from the perspective of businesses offering the deal. (AACSB: Communication; Use of IT; Reflective Thinking) Answer: Students will be able to find ample information regarding how these types of sites operate and the pros and cons for businesses using them. While some retailers report great success, others point out that they only receive $12.50 on a $25-for-$50-worth-of- merchandise deal. More importantly, most customers do not return and many businesses are overwhelmed by the response and cannot fulfill the demand generated by the offer. Several useful articles are listed below: Is Groupon a Good Business Deal? Entrepreneur, (March 2011), p. 61. Sometimes Groupon Coupons Work Too Well, Bloomberg Businessweek, (June 14, 2011), p. 33-34. Charlotte McEleny, Groupon Uses High Reach to Show Retailers Its Better Than TV and
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Print, New Media Age, (March 17, 2011), pp. 4-5. Brent Burkey, Social Coupon Service Groupon Yields High Returns If Used Tactically, Local Clients Said, Central Penn Business Journal, (April 29, 2011), pp. 19-21. Have Your Drawn New Customers With Deals From Groupon or Living Social? Bicycle Retailer & Industry News, (July 1, 2011), p. 22. Utpal Dholakia, Why Employees Can Wreck Promotional Offers, Harvard Business Review, (Jan/Feb 2011), p. 28. Utpal Dholakia, How Businesses Fare With Daily Deals As They Gain Experience: A Multi-Time Period Study of Daily Deal Performance, available at http://news.rice.edu/wpcontent/uploads/2012/07/2012-07-05-DailyDeals.pdf. 2. Create an idea for a local group-buying promotional service based on Groupons model as a class project or as a fundraiser for a student organization at your school. Students will be the target market of this digital deal online site. Develop a sales plan to recruit local businesses to offer deals as well as the promotion plan to attract students to the site. Present your plans to the class. (AACSB: Communication; Reflective Thinking) Answer: Students answers will vary, but they should be expected to apply the steps in the selling process for recruiting businesses to offer deals and for attracting students as customers. Students should also be prepared to counter many of the cons they discussed in the previous question when developing their sales presentation.

Marketing Ethics: Off Label Marketing Johnson & Johnson agreed to a $2.2 billion settlement over the marketing of its antipsychotic drug, Risperdal. Pfizer agreed to a $2.3 billion settlement and Eli Lilly paid $1.4 billion to settle disputes with the U.S. government. Glaxo recently agreed to a $3 million settlement its fourth settlement with the government over the marketing of its products. By law, pharmaceutical companies are allowed to market their drugs only for uses approved by the Food and Drug Administration, but doctors may prescribe any approved drug as they see fit. Drug manufacturers have been training their sales forces to educate doctors on non-approved uses and dosages, called off-label marketing. Almost 75 percent of the largest pharmaceutical settlements with the government are for off-label marketing. Glaxo even went so far as to have a questionable article ghost-written by a company and later published in a medical journal under the names of academic authors to convince doctors that Paxil was proven effective in treating depression in children, a use that the FDA has not approved. The reported clinical trial was later criticized by the medical community, but doctors probably are not aware of that because a majority of them rely on pharmaceutical companies for information on drugs. Most unlawful
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practices by the pharmaceutical industry come to light only because an insidersomeone in management or a sales repblows the whistle. Fortunately, the Federal False Claim Act provides protection and even incentive for employees to come forward. Pharmaceutical companies settle these types of investigations because, even if they plead guilty to criminal charges, which J&J and Glaxo did, they dont lose the ability to sell drugs to the government as they would if found guilty after a trial. 1. What would you do if you were a pharmaceutical sales rep and were told to promote a drug for off-label use? What protections and incentives are available under the Federal False Claim Act to encourage employees to report illegal behavior? (AACSB: Communication; Ethical Reasoning; Reflective Thinking) Answer: Students answers will vary. Some useful sources are: Description of off-label marketing: http://www.whistleblowerfirm.com/pharmaceutical-fraud/off-label-marketing/ Study finding that doctors receive most drug information from pharmaceutical companies: http://www.plosmedicine.org/article/info%3Adoi%2F10.1371%2Fjournal.pmed.1000431 List of the top 20 pharmaceutical settlements, 14 of which are the result of off-label marketing: http://en.wikipedia.org/wiki/List_of_Largest_Pharmaceutical_Settlements Information on the False Claims Act: http://www.whistleblowerlaws.com/false-claims-act/federal-false-claims-act/. This law was enacted during the Civil War and is also referred to as the Lincoln Law. Its intent is to reduce the amount of fraud when selling to the government. Since pharmaceutical companies sell to government programs such as Medicare, the law has been used to prosecute companies. Under this act, whistleblowers are given the incentive of earning a percentage of the governments settlement. 2. What traits and behaviors should an ethical salesperson possess? What role does the sales manager play in ethical selling behavior? (AACSB: Communication; Ethical Reasoning; Reflective Thinking) Answer: The sales manager is important in selecting and training the salesforce. Thus, ensuring individuals possess ethical traits is important in the hiring decision, but also training is important to make salespeople aware of ethical behavior. An interesting article discussing characteristics of an ethical sales person can be found at: http://ewweb.com/mag/electric_sales_ethics/. This article discusses factors, such as trust,
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credibility, anticipate problems, set high standards from the beginning, avoid legalism, and facing up to your mistakes. National and international trade associations have defined codes of ethics. For example, the pharmaceuticals industry, which is under fire from regulatory groups and others, has codes of conduct regarding interactions with healthcare professionals. Visit the Web sites of the Pharmaceutical Research and Manufacturers of America (PhRMA) (www.phrma.org) and the International Federation of Pharmaceutical Manufacturers Association (IFPMA) (http://ifpma.org/) to see their codes of ethics regarding sales activities. The IFPMA enacted new codes that went into effect in 2007 but PhRMA has had a code in place for several years. Pharmaceutical marketers are restricted through self-regulation to providing educational activities and that meals must be reasonable. Thus, bringing lunch to the workers in doctors offices is fine as long as there is some educational component. Also, paying for trips to educational seminars is still acceptable, but providing travel for guests, such as spouses, and entertainment are not allowed. Companies violating the code will be publically named.

Marketing by the Numbers: Sales Force Analysis Brown, Inc. is a manufacturer of furniture sold through retail furniture outlets in the southeastern United States. The company has two salespeople that do more than just sell the products they manage relationships with retail customers to enable them to better meet consumers needs. The companys sales reps visit retail customers several times per year, often for hours at a time. Brown is considering expanding to other regions of the country and would like to have distribution through 1,000 retail customer accounts. To do so, however, the company would have to hire more salespeople. Each salesperson earns $50,000 plus 2 percent commission on all sales. Another alternative is to use the services of sales agents instead of its own salesforce. Sales agents would be paid 10 percent of sales. 1. Refer to Appendix 2 to answer this question. Determine the number of salespeople Brown needs if it has 1,000 retail customer accounts that need to be called on five times per year. Each sales call lasts approximately 2.5 hours, and each sales rep has approximately 1,250 hours per year to devote to customers. (AACSB: Communication; Analytical Reasoning) Answer: The workload method uses the following formula to determine the sales force size: NS where, NS = number of salespeople NC = number of customers
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NC FC LC = TA

FC = average frequency of customer calls per customer LC = average length of customer call TA = time an average salesperson has available for selling per year so, 1,000 5 2.5 NS = = 10 salespeople 1,250 2. At what level of sales would it be more cost efficient for Brown to use its own sales force compared to sales agents? To determine this, consider the fixed and variable costs for each alternative. What are the pros and cons of using a companys own sales force over independent sales agents? (AACSB: Communication; Analytical Reasoning; Reflective Thinking) Answer: To determine the level of sales at which one alternative would be as efficient as the other, we must set the costs equal to each other. Because variable costs are a function of sales, we can solve for the sales level at which the two would be equal: Total Costssalesforce = Total Costssales agents Total costs consist of fixed costs and variable costs, so for the salesforce option, total costs would equal the total salaries for the 10 salespeople (fixed costs) plus the commissions on sales (variable costs). Total costs for the sales agent option are just variables costs. Therefore: Total costssalesforce = ($50,000 x 10 salespeople) + (0.02 x sales) Total costssales agents = (0.10 x sales) Set the two equations equal to each other and solve for sales: Total Costssaleforce = Total Costssales agents ($50,000 x 10) + (0.02 x sales) = (0.10 x sales) $500,000 + (0.02 x sales) = (0.10 x sales) $500,000 = (0.10 x sales) (0.02 x sales) $500,000 = (0.08 x sales) Therefore,

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$500,000 Sales = = $6,250,000 0.08 If Brown expects sales to be greater than $6,250,000, then using its own salesforce will be more efficient than using sales agents. If sales are less than this level, then it would be more efficient to use sales agents because the company would not incur the fixed costs associated with maintaining a salesforce. Sales agents are independent of the manufacturers organization and typically are paid on commission, so a manufacturer does not have the fixed costs that are necessary to maintain a full-time sales force. A manufacturers selling costs are based on the amount the sales agent sells for the manufacturer. On the downside, however, sales agents typically sell multiple products from different manufacturers, although agents dont normally sell a competitors product. However, they cannot devote all of their selling efforts on a given manufacturers products nor are they as knowledgeable about a specific product as a manufacturers sales representative. Sales agents might be a smart choice if the manufacturer does not have the resources to maintain its own salesforce. A manufacturers sales representative is an employee of the company, and the company incurs all the costs of employment. Even if a sales representative only receives compensation based on commission, there are still other employment costs involved, such as benefits. Unlike sales agents, however, a manufacturers sales force devotes all of its effort to selling the manufacturers products and are more knowledgeable about the products.

Company Case Notes

Salesforce.com: Helping Companies Super-Charge The Selling Process Synopsis When Salesforce.com launched in 1999, its model for providing CRM software to businesses was ahead of its time. In a field of providers that created customer proprietary software installed on client desktop computers and servers, Salesforce.coms big thing was no software. It focused on creating standardized and semi-custom products made available to customers via the Internet. With no software to install and a more simple interface, Salesforce.com was easier to use, faster to get up and running, and less expensive. Salesforce.com has since remained ahead of the pack by focusing on innovation. It now has various CRM products that are available to clients large and small. It is a market leader that appears to have revolutionized its market and shows no signs of slowing down. Teaching Objectives The teaching objectives for this case are to: 1. Allow students to consider the role of a companys salespeople in creating value for and building relationships with customers.
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2. Help students understand how companies make sales force strategy decisions. 3. Give students exposure to the different steps in the sales process. 4. To consider the dynamics of the marketing environment and their impact on sales organizations.

Discussion Questions 1. When Salesforce.com launched as an Internet-based service, how did that innovation help sales reps to interact better with customers? With no software to install, companies could have the salesforce.com tools up and running in very little time with less investment. SF was ahead of its time in using an online and cloud model for this kind of service. This method also gave sales reps easy access to the system from any location with Internet access. This was also not common at the time. With quicker, easier, and more convenient access, this gave sales reps plenty of benefits for servicing customers. 2. Describe the differences that Salesforce.com has made for customers NBCU and GE Capital. Integrating customers sales forces can be integrated across customers. All sales reps in every department and division can access client activity across all different touch points for the company. Collaboration sales forces can distribute the right social information to account execs and the right time, improving customer relationships. Cross-selling As these companies are big and complex with many different divisions, the above-mentioned benefits have resulted in more opportunities for cross-selling. That not only improves revenues, it makes for stronger customer relationships. 3. Consider the selling process. How might any of the Salesforce.com tools described in this case facilitate each step? Data.com prospecting and qualifying. Database.com prospecting and qualifying, handling objections, closing, follow-up. Site.com preapproach, approach, presentation and demonstration, handling objections, closing, follow-up. Desk.com preapproach, approach, presentation and demonstration, handling objections, closing, follow-up. Sales Cloud presentation and demonstration, handling objections, closing, follow-up. 4. Looking forward, what products will Salesforce.com have to develop in order to remain on the cutting edge of supporting sales staffs with information and collaboration? Push students to consider and speculate on the direction they think social media and mobile devices are headed. That should provide direction on what they think Salesforce.com will need to develop in order to remain ahead of the market. Answers will vary.
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Teaching Suggestions Have students break out into groups. Have them visit www.salesforce.com. Assign each one of them a Salesforce.com product. Give them 10-15 minutes and have them report on what that product is, the benefits that it provides to client users, and the stages of the selling process it facilitates. This case can also be used with the chapter on competitive advantage (Chapter 18).

ADDITIONAL PROJECTS, ASSIGNMENTS, AND EXAMPLES

Projects
1. Take a look at Microsoft (www.microsoft.com). What is the role of the personal sales force in that company? (Objective 1) 2. Examine Dell (www.dell.com). How is Dells sales force structured? (Objective 2) 3. List and describe each step of the personal selling process. Analyze your own potential as a salesperson at each step of the process. What steps of the process would be the easiest for you to handle and what steps the most difficult? Why? (Objective 3) 4. Consider your college/university. How could they effectively use sales promotion as a recruiting tool? (Objective 4) 5. Think about the popular Web-based travel site, Kayak (www.kayak.com). How could Kayak use event marketing to effectively promote its business? (Objective 4)

Small Group Assignments

1. Form students into groups of three to five. Each group should read the opening vignette to the chapter on IBM. Each group should then answer the following questions and share their answers with the class. (Objective 1, 2, and 3) a. How would you describe the solutions selling sales culture at IBM? b. At its heart, what is fundamentally different about IBMs approach compared to competitors? What makes it work better for customers? c. In your own words, explain how IBMs Vivek Gupta succeeded in India where competitors may have failed. 2. Form students into groups of three to five. Each group should read Real Marketing 16.2: P&G: Its Not Sales, Its Customer Business Development. Each group should then answer the following questions and share their answers with the class. (Objective 3) a. What does Customer Business Development mean at P&G? How does it differ from the standard sales approach? b. How do P&G salespeople deal with large, complex accounts? c. Why do customers allow P&G to advise them on the stocking and placement of competitors brands as well as its own?
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Individual Assignments
1. The sales force serves as a critical link between a company and its customers. They represent the company to customers and they represent customers to the company. Explain how this would work for a company such as CDW. (Objective 1) 2. Recruiting qualified sales applicants is a difficult job for a sales manager. Review the position openings for sales people at Boeing (https://jobs.boeing.com/), IBM (www.ibm.com/us/) and Mars (www.mars.com/global/home.htm). See the requirements for a sales position with each of these companies. (Objective 2)

Think-Pair-Share
Consider the following questions, formulate an answer, pair with the student on your right, share your thoughts with one another, and respond to questions from the instructor: 1. What do you believe to be the major advantages and disadvantages of team selling? (Objective 2) 2. What are the major forms of sales force compensation? Which do you believe to be superior? Why? (Objective 2) 3. List and briefly describe the stages of the personal selling process. (Objective 3) 4. In the personal selling process, when would you consider the sell over? Why? (Objective 3) 5. In the past, pharmaceutical companies have provided and paid for educational seminars in exotic locations for physicians to which they were promoting a specific drug. The hope was that the physician would then prescribe their medication. Do you believe this is ethical? Why or why not?

Outside Examples
1. Consider that you are a salesperson for the local Toyota dealership. A young, newly married couple enters the lot. Walk us through the personal selling process, using this couple as your target. (Objective 3) Possible Solution: Step 1: Prospecting and Qualifying. In this case, there is no prospecting involved. The potential customer comes to you. It becomes your job to qualify them as potentials as quickly as possible. However, the qualification will have to wait until the actual approach. Step 2: Preapproach. The salesperson has the responsibility of preparing his/her initial greeting and direction he/she believes the presentation should take.

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Step 3: Approach. The opening lines are important. It is necessary not only to build an immediate rapport with the couple, it is important to learn their needs, wants, and abilities as quickly as possible. Step 4: Presentation and Demonstration. The salesperson should have their method of presentation decided at this point. Here the salesperson tells the value story. This is where the buyers see how this product fits their requirements. Step 5: Handling Objections. If the (potential) buyers believe the price is too much, the salesperson can demonstrate how their financing options can get the monthly amounts to a reasonable level. If they want to think about it, the salesperson may offer an incentive to purchase now. Whatever the objection may be, the well-informed salesperson will already have the information and skills to overcome. Step 6: Closing. This is the moment where it is important for our salesperson to ask for the sale. In many cases, it becomes necessary for the salesperson to take the lead and direct the buyer to come on inside and lets write this up. At this point, the majority of significant objections should have been met. Step 7: Follow-Up. The sale is never over. It is important to remain in contact with the buyer as time goes by. They may come back to you for their next vehicle or they may refer their friends to you. 2. Rent the classic movie Death of a Salesman. This was originally a play on Broadway authored by Arthur Miller, in 1949. It was later made into a successful movie. Watch it and review the approach to selling discussed. (Objective 3) Possible Solution: Death of a Salesman deals only tangentially with sales and the selling process. But it does so enough to drive home the points. Willy Loman, a salesman based in New York City, returns home from a trip to Yonkers where his sons, Biff and Happy, and his wife, Linda, greet him. Willy is reminded of his brother Ben. Through flashbacks, Ben begins a dialogue with Willy, who contemplates why he can never seem to become successful. Throughout the play, Willy has these imaginary conversations with Ben, during most of which he asks Ben how he made his millions. Ben had tried to go to Alaska to get involved in logging but ended up in Africa. In Africa, he stumbled upon the diamond business and become wealthy by the time Willy was old enough to care about his own career. Willy feels that he can also become successful by luck alone.

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Whenever Willy asks Ben (in his flashbacks) how he made his millions, Ben only answers When I walked into the jungle, I was 17. When I walked out, I was 21, and by God I was rich. In addition, Willy worked for a man who only had to wake up in the morning, put his slippers on, and make phone calls, and had made millions of dollars. Willy assumes that one does not need to work hard or have ambition; that all these men needed was a smile and a shoeshine to be successful. This philosophy does not work out for Willy. The primary point to drive home is that success in selling does not come by accident. Professional salespeople succeed through thorough research and planning for contingencies.

Web Resources
1. http://247.prenhall.com This is the link to the Prentice Hall support link. 2. www.IBM.com Information here will be helpful as you read the opening vignette. 3. www.hp.com/hpinfo/ This is Hewlett-Packards corporate homepage. 4. www.proudfootconsulting.com/ Proudfoot Consulting maintains useful information on sales force management 5. www.bestbuy.com Check out Best Buys weekly newspaper insert for an example of sales promotion.

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