MKT1003

Principles of Marketing

Lesson 11
A) Personal Selling & Sales
Management
B) Ethics in Marketing
A) Personal Selling and Sales
Management
Personal Selling: two-way communication between
buyer and seller
Can be face-to-face, over telephone, Internet, etc.
Roles: order-taker, order-getter, service support
Sales Management: planning the selling program,
managing the salesforce
Setting objectives
Organizing the salesforce structure
Recruiting, training, compensating
Evaluating salespeople
Personal Selling Process
Sales Plan
1. Sales Objectives
Output-oriented: quota/sales targets, number of new
customers, profit
Input-oriented: number of calls/sales visits
Behavior-related: product knowledge, customer service,
customer relationships, knowledge of industry, sales
reports
2. Salesforce Organization
By geography, product types, customer types
How many salespeople needed?
3. Salesforce Recruitment and Training
Product knowledge and selling skills
4. Compensation and Motivation
Salary versus commission: depends on degree of
non-selling activities
Non-monetary rewards are important
E.g., awards, letters of commendations, prizes
Highly independent and performance-oriented nature
of job
5. Evaluation of salesforce
 B. Ethics in Marketing
Societys criticisms of marketing

6 2012 Principles of Marketing: An Asian Perspective

 Ethics are moral principles and values
Laws are enforceable in court
Factors that influence definition of ethical:
 Ethics of Exchange
Caveat emptor: buyers beware
Consumer Bill of Rights to:
Safety
Be informed
To choose
To be heard
 Singapore: CASEs
Consumer Protection
(Fair Trading) Act
The Act sets out a
list of specific unfair
trade practices and
empowers
consumers to seek
civil remedies. It is
the responsibility of
the business to prove
that it did not
commit the unfair
practice.
 Ethics of Competition
Espionage
Gifts, bribes, kickbacks
Predatory business practices by large firms

Sustainable marketing calls for socially and

environmentally responsible actions that meet the
present needs of consumers and businesses while
also preserving or enhancing the ability of future
generations to meet their needs.
 Consumer Actions to Promote
Sustainable Marketing
Consumerism:
Traditional buyers rights include:
The right not to buy a product that is offered for sale.
The right to expect the product to be safe.
The right to expect the product to perform as claimed.
Consumer advocates call for additional consumer rights:
The right to be well informed about important aspects of the
product.
The right to be protected against questionable products and
marketing practices.
The right to influence products and marketing practices in ways
that will improve the quality of life.
The right to consume now in a way that will preserve the world
for future generations of consumers.
11 2012 Principles of Marketing: An Asian Perspective
 Environmentalism
an organized movement of concerned citizens,
businesses, and government agencies to protect and
improve peoples living environment
E.g., prevent pollution, new clean technology for zero
CO2 emission

Two Sides of a Coin

Consumers can be unethical too!
E.g., cheating on return policies and insurance claims
They have an obligation to be ethical too.
Are you willing to pay a higher price for eco-friendly
products?
 Corporate Social Responsibility
Profit responsibility to owners
Stakeholder responsibility
Societal responsibility
Link corporate mission to societal objectives
Code of ethics
Social audit to assess companys CSR efforts

Ben & Jerrys not only sells ice

cream, it also donates 7.5% of
The Tata Group believes in corporate social responsibility. It builds pre-tax profits to support worthy
irrigation systems for villagers, and schools and hospitals for the poor. causes.