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Sales Management Analysis and Decision Making 11th Edition
Thomas N. Ingram & Raymond W. Laforge & Ramon A. Avila &
Charles H. Schwepker & Michael R. Williams

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Sales Management

This 11th edition of Sales Management continues the tradition of blending the most
recent sales management research with the real-life “best practices” of leading sales
organizations and sales professionals.
Refecting today’s emphasis on analytics and customer experience (CX), this edition
focuses on the importance of employing different data-based selling strategies for dif-
ferent customer groups, as well as integrating corporate, business, marketing, and sales-
level strategies and plans. Sales Management includes coverage of the current trends and
issues in sales management, along with real-world examples from the contemporary
business world that are used throughout the text to illuminate chapter discussions.
The new 11th edition includes:

• Emphasis on data-driven decision making, ethics, the use of artifcial intelligence,

the customer experience, leadership, sales enablement technology, and new commu-
nication technologies;
• Updated end-of-chapter cases with application questions and role plays, along with
skill-building experiential exercises with discovery investigations and focused role
plays, which place students in the role of sales manager;
• Updated ethical dilemmas for students to practice ethical decision making;
• Revised ‘Sales Management in Action’ boxes;
• Multiple vignettes embedded in each chapter featuring sales management profession-
als and well-known companies discussing key topics from that chapter.

This text is core reading for postgraduate, MBA, and executive education students
studying sales management. An updated online instructor’s manual with solutions to
cases and exercises, a revised test bank, and updated PowerPoints is available to adopters.

Thomas N. Ingram is a Department Chair Emeritus and Professor of Marketing

Emeritus at Colorado State University, USA.
Raymond W. LaForge is the Brown-Forman Professor of Marketing Emeritus at
University of Louisville, USA.
Ramon A. Avila is the George and Frances Ball Distinguished Professor of Marketing
Emeritus and the founding director of the Center for Professional Selling at Ball State
University, USA.
Charles H. Schwepker, Jr. is the Randall and Kelly Harbert Distinguished Marketing
Professor at University of Central Missouri, USA.
Michael R. Williams is the American Floral Services Chair in Marketing and Professor
of Marketing at Oklahoma City University, USA, and Professor of Marketing Emeritus
at Illinois State University, USA.
Sales Management
Analysis and Decision Making

11TH EDITION

Thomas N. Ingram
Raymond W. LaForge
Ramon A. Avila
Charles H. Schwepker, Jr.
Michael R. Williams
Designed cover image: ipopba

Eleventh edition published 2024

by Routledge
605 Third Avenue, New York, NY 10158

and by Routledge
4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN

Routledge is an imprint of the Taylor & Francis Group, an informa business

© 2024 Thomas N. Ingram, Raymond W. LaForge, Ramon A. Avila, Charles H. Schwepker Jr.,
and Michael R. Williams

The right of Thomas N. Ingram, Raymond W. LaForge, Ramon A. Avila, Charles H. Schwepker
Jr., and Michael R. Williams to be identifed as authors of this work has been asserted in
accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form
or by any electronic, mechanical, or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or retrieval system, without
permission in writing from the publishers.

Trademark notice: Product or corporate names may be trademarks or registered trademarks,

and are used only for identifcation and explanation without intent to infringe.

Every effort has been made to contact copyright-holders. Please advise the publisher of any errors
or omissions, and these will be corrected in subsequent editions.

First edition published by Routledge 2003

Tenth edition published by Routledge 2019

Library of Congress Cataloging-in-Publication Data

Names: Ingram, Thomas N., author.
Title: Sales management : analysis and decision making / Thomas N. Ingram,
Raymond W. LaForge, Ramon A. Avila, Charles H. Schwepker Jr., Michael R. Williams.
Description: Eleventh edition. | Abingdon, Oxon ; New York, NY : Routledge, Taylor & Francis
Group, 2024. | Includes bibliographical references and index.
Identifers: LCCN 2023025546 (print) | LCCN 2023025547 (ebook) | ISBN 9781032426341
(hbk) | ISBN 9781032426358 (pbk) | ISBN 9781003363583 (ebk)
Subjects: LCSH: Sales management.
Classifcation: LCC HF5438.4 .I54 2024 (print) | LCC HF5438.4 (ebook) |
DDC 658.8/1—dc23/eng/20230906
LC record available at https://lccn.loc.gov/2023025546
LC ebook record available at https://lccn.loc.gov/2023025547

ISBN: 978-1-032-42634-1 (hbk)

ISBN: 978-1-032-42635-8 (pbk)
ISBN: 978-1-003-36358-3 (ebk)

DOI: 10.4324/9781003363583

Typeset in Galliard
by Apex CoVantage, LLC

Access the Support Material: www.routledge.com/9781032426358

 B r ie f C o n t e n t s

Preface xv
About the Authors xxi

Chapter 1. Changing World of Sales Management 1

Part 1. Describing the Personal Selling Function 13

Chapter 2. Overview of Personal Selling 15

Part 2. Defning the Strategic Role of the Sales Function 37

Chapter 3. Organizational Strategies and the Sales
Function 39
Chapter 4. Sales Organization Structure, Salesforce
Deployment, and Forecasting 71
Appendix 4. Developing Forecasts 109

Part 3. Developing the Salesforce 123

Chapter 5. Acquiring Sales Talent: Recruitment and
Selection 125
Chapter 6. Continual Development of the Salesforce:
Sales Training 161

Part 4. Directing the Salesforce 193

Chapter 7. Sales Leadership, Management, and
Supervision 195
Chapter 8. Motivation and Reward System
Management 221

Part 5. Determining Salesforce Effectiveness and

Performance 249
Chapter 9. Evaluating the Effectiveness of the
Organization 251
Chapter 10. Evaluating the Performance of
Salespeople 279
Glossary 313
Notes 323
Index 341

v
 C o n t e n t s

Preface xv
About the Authors xxi

Chapter 1. Changing World of Sales Management 1

Challenges in the Sales Organization
Environment 1
Sales Management Responses 2
Create Customer Value 3
Increase Sales Productivity 4
Improve Sales Leadership 4
Best Sales Organizations 6
Effective Sales Managers 7
Sales Management Process 7
Describing the Personal Selling Function 7
Defning the Strategic Role of the Sales
Function 8
Developing the Salesforce 9
Directing the Salesforce 9
Determining Salesforce Effectiveness and
Performance 10
Chapter Format 10
Concluding Statement 11
Sales Executive Panel 11

Part 1. Describing the Personal Selling Function 13

Chapter 2. Overview of Personal Selling 15
Hard Work Leads to Sales Success 15
The Role of Personal Selling in Marketing 16
The Signifcance of Personal Selling 16
Types of Sales Jobs 17
Key Roles of Salespeople 17
Trust-Based Relationship Selling Process 19
Selling Foundations: Knowledge, Skills, and
Trust-Building 19
Selling Strategy 22
Personal Selling Approaches 23

vii
viii Contents

Themes in Sales Professionalism 27

Complexity 27
Collaboration 27
Accountability 28
Sales Career Insights 28
Summary 30
Making Sales Management Decisions 34
Case 2.1: Food Services, Inc. 34
Case 2.2: Integrated Technology Specialists, Inc. 35

Part 2. Defning the Strategic Role of the Sales Function 37

Chapter 3. Organizational Strategies and the
Sales Function 39
Integrating Multilevel and Multiproduct
Strategies at Red Bull 39
Organizational Strategy Levels 40
Corporate Strategy and the Sales Function 41
Corporate Mission 41
Defnition of Strategic Business Units 42
Objectives for Strategic Business Units 42
Corporate Strategy Summary 44
Business Strategy and the Sales Function 44
Business Strategy Types 44
Business Strategy Summary 46
Marketing Strategy and the Sales Function 46
Advantages and Disadvantages of
Personal Selling 46
Target Market Situations and
Personal Selling 48
Marketing Mix Elements and
Personal Selling 49
Integrated Marketing Communication 50
Marketing Strategy Summary 51
Sales Strategy Framework 51
Organizational Buyer Behavior 51
Buying Situation 53
Buying Center 53
Buying Process 54
Buying Needs 55
Sales Strategy 55
Account Targeting Strategy 56
Customer Experience and Relationship Strategy 56
Selling Strategy 58
Sales Channel Strategy 58
The Internet 59
Distributors 59
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Contents ix

Independent Representatives 60
Team Selling 61
Telemarketing 63
Trade Shows 64
Channel Confict 64
Summary 65
Making Sales Management Decisions 68
Case 3.1: My Home Superstores 68
Case 3.2: Global Tracker Technologies 69

Chapter 4. Sales Organization Structure, Salesforce

Deployment, and Forecasting 71
Improved Territory Design at New Balance 71
Sales Organization Concepts 72
Specialization 72
Centralization 74
Span of Control versus Management
Levels 74
Line versus Staff Positions 74
Selling Situation Contingencies 76
Sales Organization Structures 78
Geographic Sales Organization 78
Product Sales Organization 79
Market Sales Organization 80
Functional Sales Organization 81
Strategic Account Organization 81
Identifying Strategic Accounts 82
Organizing for Strategic Account Coverage 82
Comparing Sales Organization Structures 84
Salesforce Deployment 85
Allocation of Selling Effort 86
Salesforce Size 90
Designing Territories 94
Procedure for Designing Territories 96
Using Technology 99
“People” Considerations 99
Summary 101
Making Sales Management Decisions 105
Case 4.1: Containers Inc. 105
Case 4.2: Websites Unlimited 106

Appendix 4. Developing Forecasts 109

Forecasting by Sales Managers 109
Types of Forecasts 109
Uses of Forecasts 111
Top-Down and Bottom-Up
Forecasting Approaches 112
x Contents

Forecasting with Regression Analysis 117

Using Different Forecasting Approaches
and Methods 118

Part 3. Developing the Salesforce 123

Chapter 5. Acquiring Sales Talent: Recruitment
and Selection 125
Filling a Talent Gap at Moneris 125
Importance of Recruitment and Selection 126
Introduction to Salesforce Socialization 127
Recruitment and Selection Process 128
Planning for Recruitment and Selection 128
Recruitment: Locating Prospective
Candidates 133
Selection: Evaluation and Hiring 140
Legal and Ethical Considerations in
Recruitment and Selection 150
Key Legislation 150
Guidelines for Sales Managers 150
Ethical Issues 151
Summary 153
Making Sales Management Decisions 157
Case 5.1: Searching for Sales Talent 157
Case 5.2: Stuck in a Time Warp? 158

Chapter 6. Continual Development of the Salesforce: 161

Sales Training
Improving Performance Through Sales Training
at Paychex, Medical Solutions and Visa 161
Role of Sales Training in Salesforce
Socialization 162
Sales Training as a Crucial Investment 163
Managing the Sales Training Process 164
Assess Training Needs 164
Sales Technology 172
Set Training Objectives 172
Evaluate Training Alternatives 173
Design the Sales Training Program 180
Perform Sales Training 181
Conduct Follow-Up and Evaluation 182
Ethical and Legal Issues 184
Summary 186
Making Sales Management Decisions 190
Case 6.1: Sales Training at Natural Feeling
Soap 190
Case 6.2: A Sales Call on Fixall Hardware:
A Harbinger for Sales Training? 191
Contents xi

Part 4. Directing the Salesforce 193

Chapter 7. Sales Leadership, Management, and
Supervision 195
Sales Leadership: Navigating Turbulent Times 195
Situational Sales Leadership Perspectives 197
Sales Leadership Styles 198
Sales Leadership Relationships 199
Power and Sales Leadership 200
Sales Leadership Infuence Strategies 202
Sales Leadership Communications 204
Important Sales Leadership Functions 205
Coaching Salespeople 205
Conducting Sales Meetings 209
Promoting Ethical Behavior 210
Summary 213
Making Sales Management Decisions 217
Case 7.1: What Happened to Oliver? 217
Case 7.2: Seventh Level Technologies, Inc. 217

Chapter 8. Motivation and Reward System Management 221

Cash Incentives May Get Attention, but
Salespeople Eventually Stop Listening 221
Motivation and Reward Systems 223
Optimal Salesforce Reward System 224
Types of Salesforce Rewards 224
Financial Compensation 225
Straight Salary 225
Straight Commission 226
Performance Bonuses 228
Combination Plans (Salary Plus Incentive) 229
Determining Appropriate Financial
Compensation Levels 230
Nonfnancial Compensation 230
Opportunity for Promotion 231
Sense of Accomplishment 231
Opportunity for Personal Growth 231
Recognition 232
Sales Expenses 233
Additional Issues in Managing Salesforce
Reward Systems 236
Sales Contests 236
Team Compensation 238
Global Considerations 239
Changing the Reward System 239
Guidelines for Motivating and Rewarding
Salespeople 241
xii Contents

Recruitment and Selection 241

Incorporation of Individual Needs 241
Information and Skills 241
Job Design 242
Building Self-Esteem 242
Proactive Approach 242
Summary 242
Making Sales Management Decisions 246
Case 8.1: Kenco Supply 246
Case 8.2: Purity Products 247

Part 5. Determining Salesforce Effectiveness and Performance 249

Chapter 9. Evaluating the Effectiveness of the
Organization 251
The Backbone of High Performing Sales
Organizations: Acquiring and Utilizing
the Right Data 251
Sales Organization Audit 253
Sales Organization Effectiveness Evaluations 256
Sales Analysis 256
Cost Analysis 262
Proftability Analysis 265
Productivity Analysis 268
Improving Sales Organization Effectiveness 269
Benchmarking 269
Six Sigma 270
Ethical Issues 271
Concluding Comments 272
Summary 272
Making Sales Management Decisions 276
Case 9.1: National Distributing 276
Case 9.2: GSW Technology Group 277

Chapter 10. Evaluating the Performance of Salespeople 279

Sales Metrics are a Must, but Moving the
Needle on Performance Requires Management
of Salespeople and their Activities 279
Purposes of Salesperson Performance
Evaluations 281
Salesperson Performance Evaluation
Approaches 281
Key Issues in Evaluating and Controlling
Salesperson Performance 284
Criteria for Performance Evaluation 286
Performance Evaluation Methods 293
Performance Evaluation Bias 300
Contents xiii

Evaluating Team Performance 300

Using Performance Information 303
Salesperson Job Satisfaction 305
Measuring Salesperson Job Satisfaction 305
Using Job Satisfaction Information 306
Summary 307
Making Sales Management Decisions 311
Case 10.1: Western Windows and Doors 311
Case 10.2: XFinity Molding 312

Glossary 313
Notes 323
Index 341
 P r e fa c e

Our objective in writing the 11th edition of Sales Management: Analysis and Decision
Making was to continue to present comprehensive and rigorous coverage of contempo-
rary sales management in a readable, interesting, and challenging manner. Findings
from recent sales management research are blended with examples of current sales man-
agement practice into an effective pedagogical format. Topics are covered from the
perspective of a sales management decision maker. This decision-making perspective is
accomplished through a chapter format that typically consists of discussing basic con-
cepts, identifying critical decision areas, and presenting analytical approaches for im-
proved sales management decision making. Company examples from the contemporary
business world are used throughout the text to supplement chapter discussion.

STRENGTHS OF THIS EDITION

The 11th edition of Sales Management: Analysis and Decision Making continues what has
been effective in previous editions, but contains changes that improve the content and
pedagogy in the book. The authors teach sales management courses, are involved in sales
management research, and interact with sales managers and professors on a regular basis.
These activities ensure that the text covers the appropriate sales management topics and
employs the most effective pedagogy. The key strengths of the 11th edition include:
• The 10 chapters and paperback, hardback, and ebook formats from the previous
edition have been maintained. This makes it easy for professors to cover the text in a
semester or quarter, and still have suffcient time to use active learning exercises
throughout the course. Students can purchase the 11th edition for much less than
the cost of a typical hardcover sales management book.
• New Opening Vignettes generate student interest in the chapter content by provid-
ing recent examples of leading sales organizations employing the chapter material.
• “Sales Management in Action” boxes include new sales executives or updated per-
sonal comments that reinforce important sales management concepts in each
chapter.
• Revised “Ethical Dilemma” boxes provide students the opportunity to address impor-
tant ethical issues facing sales managers with many set up as role-play exercises.
• Revised chapter cases with related role plays put students in the role of a sales
manager in a specifc sales organization situation. The cases require students to
analyze the situation, decide on the appropriate action, and then implement their
decisions through role-play scenarios.
• New and revised pedagogy is available in the “Developing Sales Management
Knowledge” and “Building Sales Management Skills” activities at the end of each
chapter.
• All chapters have been updated to incorporate the latest fndings from sales manage-
ment research and the best practices from leading sales organizations. Topics receiving
new or expanded coverage include: sales cycle and opportunity forecasting; social net-
working, digital and artifcial intelligence in recruitment and selection; ethics in
xv
xvi Preface

selection; use of buyer personas, virtual reality and artifcial intelligence in sales train-
ing; leadership skills, infuence tactics and coaching.

LEVEL AND ORGANIZATION

This text was written for the undergraduate student enrolled in a one-semester or one-
quarter sales management class. However, it is suffciently rigorous to be used at the MBA
level.
A sales management model is used to present coverage in a logical sequence. The text
is organized into fve parts to correspond with the fve stages in the sales management
model.
Part One, “Describing the Personal Selling Function,” is designed to provide stu-
dents with an understanding of personal selling prior to addressing specifc sales man-
agement areas. We devote one chapter at the beginning of the text to this topic.
Part Two, “Defning the Strategic Role of the Sales Function,” consists of two chap-
ters. One discusses important relationships between personal selling and organizational
strategies at the corporate, business, marketing, and sales levels. This chapter focuses on
how strategic decisions at different organizational levels affect sales management deci-
sions and personal selling practices.
The second chapter in this part investigates alternative sales organization structures
and examines analytical methods for determining salesforce size, territory design, and
the allocation of selling effort.
Part Three, “Developing the Salesforce,” changes the focus from organizational
topics to people topics. The two chapters in this part cover the critical decision areas in
the recruitment and selection of salespeople and in training salespeople once they have
been hired.
Part Four, “Directing the Salesforce,” continues the people orientation by discussing
the leadership, management, and supervisory activities necessary for successful sales man-
agement and examining important areas of salesforce motivation and reward systems.
Part Five, “Determining Salesforce Effectiveness and Performance,” concludes the
sales management process by addressing evaluation and control procedures. Differences
in evaluating the effectiveness of the sales organization and the performance of sales-
people are highlighted and covered in separate chapters.

PEDAGOGY
The following pedagogical format is used for each chapter to facilitate the learning
process.
• Learning Objectives. Specifc learning objectives for the chapter are stated in behav-
ioral terms so that students will know what they should be able to do after the
chapter has been covered.
• Opening Vignettes. All chapters are introduced by an opening vignette that typically
consists of a recent, real-world company example addressing many of the key points
to be discussed in the chapter. These opening vignettes are intended to generate
student interest in the topics to be covered and to illustrate the practicality of the
chapter coverage.
• Key Words. Key words are highlighted in bold type throughout each chapter
and summarized in list form at the end of the chapter to alert students to their
importance.
• Boxed Inserts. Each chapter contains two boxed inserts titled “Sales Management in
Action.” The comments in these boxes are provided by members of our Sales
Executive Panel and were made specifcally for our text.
• Figure Captions. Most fgures in the text include a summarizing caption designed to
make the fgure understandable without reference to the chapter discussion.
Preface xvii

• Chapter Summaries. A chapter summary recaps the key points covered in the chapter
by restating and answering questions presented in the learning objectives at the
beginning of the chapter.
• Developing Sales Management Knowledge. Ten discussion questions are presented at
the end of each chapter to review key concepts covered in the chapter. Some of the
questions require students to summarize what has been covered, while others are
designed to be more thought-provoking and extend beyond chapter coverage.
• Building Sales Management Skills. Application exercises are supplied for each chapter,
requiring students to apply what has been learned in the chapter to a specifc sales
management situation. Several of the application exercises require data analysis.
Many chapters also have an Internet exercise to get students involved with the latest
technology. Role plays are also included in most chapters.
• Making Sales Management Decisions. Each chapter concludes with two short cases.
Most of these cases represent realistic and interesting sales management situations.
Some require data analysis. Most are designed so that students can role-play their
solutions.

CASES
The 18 short cases at the end of the chapters can be used as a basis for class discussion,
short written assignments, or role plays. These are designed to help bring the material in
each chapter to life for students by illustrating how chapter concepts can be applied in
practice.

SUPPLEMENTS
Instructor’s Resources
The Instructor’s Resources (www.routledge.com/9781032426358) deliver all the tra-
ditional instructor support materials in one handy place. Electronic fles are provided
for the complete Instructor’s Manual, Test Bank, and chapter-by-chapter PowerPoint
presentation fles that can be used to enhance in-class lectures.
Instructor’s Manual
The Instructor’s Manual for the 11th edition of Sales Management: Analysis and
Decision Making contains many helpful teaching suggestions and solutions to text
exercises to help instructors successfully integrate all the materials offered with this text
into their class. Each chapter includes the following materials designed to meet the
instructor’s needs.
• Learning objectives
• Chapter outline and summary
• Ideas for student involvement
• Possible answers to review sections in the text, Developing Sales Management
Knowledge, Building Sales Management Skills and the end of chapter cases
• Ideas for how to incorporate the role-play exercises found in the text into the class-
room setting, as well as suggestions for conducting the role plays
(The Instructor’s Manual fles are located at: www.routledge.com/9781032426358)
Test Bank
The revised and updated Test Bank, with over 100 new questions, includes a variety of
multiple choice and true/false questions, which emphasize the important concepts
presented in each chapter. The Test Bank questions vary in levels of diffculty so that
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best prices!
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