MKT 370 - Chapter 16

Internal Partnerships

Partnering relationships between a salesperson and another member of the same company for the purpose of satisfying customer needs.

Importance of Internal Partnerships to Salespeople

Sometimes, success in landing a sale may depend on the salespersons ability to manage its own companies efforts. (faster shipping times, altering manufacturing specifications to meet customer needs, etc.)

Role of Salespeople in their own company

represent their company to their client, but also represent their client to their company

Company departments that are important to salespeople

Customer Service

Why the Manufacturing department is important to salespeople

Salespeople may have to negotiate compromises between this department and the customer. Salespeople should also develop relationships with this department so they can make accurate promises and guarantees to customers.

Why the Administration department is important to salespeople

This department processes orders and sees that the salesperson gets paid for them. Employees in this area are often evaluated on how quickly they process orders and how quickly the company receives customer payment. Salespeople can greatly influence both

Why the Shipping department is important to salespeople?

When salespeople make special promises to expedite a delivery, they actually must depend on this department to carry out the promise. Managers in this department focus on costs, and they often keep their costs under control by planning efficient routes an

Why the Installation department is important to salespeople

In some businesses, this service is part of the purchase. From the customer's perspective, the product doesn't deliver benefits until it is working to solve the problem. The salesperson has to coordinate with this departments team and make sure that promi

Why the Customer Service department is important to salespeople

Close relationships and support of these representatives mean not only better service but faster and more direct information flow to the salesperson. This information will help the salesperson gain and keep customers.

Why the Marketing Department is important to salespeople

Both departments are concerned with providing the right product to the customer in the most efficient and effective manner. Sales acts as the eyes and ears of this department, while this department develops the promotions and products that salespeople sel

Bottom-up Forecasting

Forecast compiled by adding up each salesperson's forecast for total company sales.


Quantitative level of performance for a specific time period.

Sales Quota

The minimum number of sales in units.

Revenue Quota

The minimum amount of sales revenue necessary for acceptable performance.

Profit Quota

Another name for gross margin quota, the minimum levels of acceptable profit or gross margin performance.

Activity Quota

A type of quota that sets minimal behavioral expectations for a salesperson's activities. Used when the sales cycle is long and sales are few. Controls activities of salespeople.


Compensation paid periodically to an employee independently of performance.

Incentive Pay

Compensation based on performance, two types: Commission and Bonus


Incentive payment for an individual sale; often a percentage of the sale price.


Lump-sum incentive payment often based on performance.

Straight Salary

Compensation method that pays a fixed amount of money for working a specified amount of time.

Straight Commission

Compensation method of a certain amount per sale; plan includes a base and a rate but not a salary.

Commission Base

Unit of analysis used to determine commissions�for example, unit sales, dollar sales, or gross margin.

Commission Rate

Percentage of base paid or the amount per base unit paid in a commission compensation plan�for example, a percentage of dollar sales or an amount per unit sold.


Advance from the company to a salesperson made against future commissions. Essentially, a loan a salesperson can take out to guarantee a stable cashflow

Combination Plan

Compensation plan that provides salary and commission; offers the greatest flexibility for motivating and controlling the activities of salespeople.

Field Sales Manager

Hire salespeople, evaluate their performance, train them, and perform other important tasks. First level manager

Open-door policies

General management technique that allows subordinates to bypass immediate managers and take concerns straight to upper management when the subordinates feel a lack of support from the immediate manager.

Ethics Review Board

A group of experts inside and outside the company who are responsible for reviewing ethics policies, investigating allegations of unethical behavior, and acting as a sounding board for employees.

Things a salesperson can do to handle an unethical request from a manager


Geographic Salesperson

Salesperson assigned a specific territory in which to sell all the company's products and services. Often utilizing Zip Codes

Key Accounts

Large accounts, usually generating more than a specified amount in revenue per year, that receive special treatment.

National Account Manager (NAM)

Sales executive responsible for managing and coordinating sales efforts on a single account nationwide. Also called Strategic account managers (SAMs)

House Account(s)

Accounts assigned to a sales executive rather than to the specific salesperson responsible for the territory containing the account.

Field Salespeople

Salespeople who spend considerable time in the customer's place of business, communicating with the customer face-to-face.

Inside Salespeople

Salespeople who work at their employer's location and interact with customers by telephone or computer.

Field Support Rep

Telemarketer who works with field salespeople and does more than prospect for leads.

Customer Service Representative (CRP)

Inbound salesperson who handles customer concerns.

Inbound CRPs

Salespeople or customer service reps who respond to calls placed to the firm by customers rather than placing calls out to customers.

Outbound CRPs

Salespeople, customer service reps, prospectors, account managers, and field support telemarketers who place phone calls out to customers.

Team Selling

Type of selling in which employees with varying areas of expertise within the firm work together to sell to the same account(s).

Multilevel Selling

Strategy that involves using multiple levels of company employees to call on similar levels in an account; for example, the VP of sales might call on the VP of purchasing.