CH03_PARTNERING+ ni gdyjkRELATIONSHIPS.pptx

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1. Selling Today Fourteenth Edition Chapter 3 Ethics—The Foundation for Partnering Relationships t hat Create Value Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

2. Learning Objectives (1 of 2) 1. Explain the importance of developing a relationship strategy. 2. Describe issues that challenge the ethical decision making of salespeople. 3. Describe the factors that influence the ethical conduct of sales personnel.

3. Learning Objectives (2 of 2) 4. Describe how ethical decisions influence the building of partnering relationships in selling. 5. Discuss guidelines for developing a personal code of ethics that creates value.

4. Developing a Relationship Strategy Relationship skills are needed in today’s complex sales environment. Develop a relationship strategy with three key prescriptions: Maintain high ethical standards Project professional image Manage the relationship process

5. Emotional Intelligence (EI) Emotional intelligence refers to the capacity for monitoring our own feelings and those of others, for motivating ourselves, and for managing emotions. Qualities associated with high emotional intelligence: Self-awareness Self-confidence Trustworthiness Adaptability Initiative Optimism Empathy Well-developed social skills

6. Information-Age Selling: Relationship Challenges Building new relationships Transforming relationships Management of relationships

7. Ethical Decision Making: Issues Challenging the Ethics of Salespeople (1 of 3) What would you do? If … A customer asks you to create a set of product specifications for completing a sales proposal. Then … A new supplier of yours indicates a sizable direct cash payment would be made to you if you listed the supplier’s technical data in the specifications.

8. Ethical Decision Making: Issues Challenging the Ethics of Salespeople (2 of 3) How would you respond? If … You work with the research and development departments of the companies you call on, and therefore are trusted with confidential information about strategic new product development. Then … One of your larger clients has asked if you could help them with a project by answering some questions about their competitor’s research activities. How would you respond?

9. Ethical Decision Making: Issues Challenging the Ethics of Salespeople (3 of 3) What would you do? If … You have visited the buyer twice, and each time the person displayed a great deal of interest in your proposal. Then … During a recent negotiations meeting, the buyer hinted that the order might be signed if you could provide tickets to a national sporting event. Given … Your company has a longstanding policy that gifts are not to be given under any circumstances.

10. Ethical Decision Making: A Foundation Figure 3.2

11. Figure 3.3 Factors Influencing the Ethical Behavior of Salespeople

12. Culture and Ethics Culture is the sum total of beliefs, values, knowledge, ethnic customs, and objects that people use to adapt to their environment. Cultural differences can make building relationships more difficult. Cultural differences may present direct ethical challenges.

13. Doing Business in China Be patient and avoid taking the initiative until knowing the rules Be prepared for negotiations around meals (typically banquet style) Harmonious relationships matter Introduce the oldest first Give gifts after transactions Be careful of the meaning of gifts

14. Legal Issues Doing business in the global marketplace continues to be an ethical and legal minefield. Foreign Corrupt Practices Act prohibits U.S. companies from using bribes or kickbacks to influence foreign officials. U.K. Anti-Bribery Act prohibits any form of commercial bribery.

15. Influence of Senior Management Ethical standards tend to filter down from the top of an organization. Employees look to company leaders for guidance. The organization’s moral tone, as established by management personnel, is the most important single determinant of employee ethics.

16. Influence of Company Policies Company policies and practices can have a major impact on the ethical conduct of salespeople. These policies cover Distributor relations Customer service Pricing Product development

17. Mutual of Omaha “Values for Success” Mutual of Omaha executives provide their employees with a carefully worded document titled “Values for Success” to encourage ethical behavior. This document covers Openness and trust Honesty and integrity Customer-focus

18. Situations Benefitting from Corporate Guidance Sharing confidential information Reciprocity Bribery Giving gifts Entertainment Business defamation Use of the internet

19. Figure 3.4 Influence of Values

20. Making Ethical Decisions that Build Selling Relationships Business ethics comprises principles and standards that guide behavior in the world of business. They help translate values into appropriate and effective foundational behaviors that build and strengthen partnering relationships in day-to-day life. Whether a specific behavior is right or wrong, ethical or unethical, is often determined by company leaders, customers, investors, the legal system, and the community.

21. Developing a Personal Code of Ethics Relationship comes first, task second Be honest with yourself and with others Personal selling must be viewed as an exchange of value

22. Review (1 of 2) Explain the importance of developing a relationship strategy. Describe issues that challenge the ethical decision making of salespeople. Describe the factors that influence the ethical conduct of sales personnel.

23. Review (2 of 2) Describe how ethical decisions influence the building of partnering relationships in selling. Discuss guidelines for developing a personal code of ethics that creates value.