Building Trust and Sales EthicsBuilding Trust and Sales Ethics

Module TwoModule Two

Learning ObjectivesLearning Objectives

1.1. Discuss the distinguishing characteristics of trust-Discuss the distinguishing characteristics of trust-based selling. based selling.

2.2. Explain the importance of trust. Explain the importance of trust.

3.3. Discuss how to earn trust.Discuss how to earn trust.

Learning ObjectivesLearning Objectives

4.4. Explain how the knowledge bases help Explain how the knowledge bases help build trust and relationships.build trust and relationships.

5.5. Understand the importance of sales Understand the importance of sales ethics.ethics.

6.6. Discuss three important areas of unethical Discuss three important areas of unethical behavior. behavior.

Key ThoughtsKey Thoughts

• Trust is crucial to developing successful relationships Trust is crucial to developing successful relationships with customers.with customers.

• Build trust by being competent, compatible, candid, Build trust by being competent, compatible, candid, customer-oriented, and dependable.customer-oriented, and dependable.

• You must have the initiative and motivation to learn You must have the initiative and motivation to learn about your company, your customers, and the about your company, your customers, and the markets in which you and they compete.markets in which you and they compete.

• ProfessionalProfessional salespeople, by salespeople, by definition, must be ethical or theydefinition, must be ethical or theyare not are not professionalprofessional..

Trust refers to the degree to which Trust refers to the degree to which one person can rely on another one person can rely on another when the former is dependent on when the former is dependent on the latter.the latter.

TrustTrust

Trust refers to the Trust refers to the degree to which degree to which one person can one person can rely on another rely on another when the former is when the former is dependent on the dependent on the latter.latter.

Why is Trust Important?Why is Trust Important?

A fundamental competitive strategy of a A fundamental competitive strategy of a growing number of organizations is to build growing number of organizations is to build long-term mutually beneficial relationships long-term mutually beneficial relationships with their customers. The ability of those with their customers. The ability of those organizations’ salespeople to earn their organizations’ salespeople to earn their customers’ trust is essential to the success customers’ trust is essential to the success of that strategy.of that strategy.

CustomerCustomerOrientedOriented

ExpertiseExpertise

DependabilitDependabilityy

CompatibilityCompatibility

CandorCandor

Trust - ComponentsTrust - Components

Trust Builder – ExpertiseTrust Builder – Expertise

The extent to which a salesperson The extent to which a salesperson possesses relevant knowledge and possesses relevant knowledge and capability.capability.

The salesperson knows what he/sheThe salesperson knows what he/she needs to know. The salesperson and needs to know. The salesperson and his/her company have the ability and his/her company have the ability andresources to get the job done right.resources to get the job done right.

ExpertiseExpertise

Trust Builder – DependabilityTrust Builder – Dependability

The extent to which a salesperson The extent to which a salesperson consistently and predictably follows consistently and predictably follows through on commitments he/she through on commitments he/she makes to others.makes to others.

Buyers can rely on the salesperson.Buyers can rely on the salesperson. The salesperson keeps his/her The salesperson keeps his/her promises.promises.

DependabilitDependabilityy

Trust Builder – CandorTrust Builder – Candor

The extent to which a salesperson is The extent to which a salesperson is honest and upfront with others, especially honest and upfront with others, especially with regard to issues/factors that may with regard to issues/factors that may impact those others.impact those others.

The salesperson is honest in his/herThe salesperson is honest in his/her spoken word. The salesperson’s spoken word. The salesperson’s presentation is fair and balanced.presentation is fair and balanced.

CandorCandor

Trust Builder – Customer OrientationTrust Builder – Customer Orientation

The extent to which a salesperson The extent to which a salesperson values and protects the interests of values and protects the interests of his/her customers.his/her customers.

The salesperson truly cares about theThe salesperson truly cares about the partnership. The salesperson will go to partnership. The salesperson will go to bat for the customer. bat for the customer.

CustomerCustomerOrientedOriented

Trust Builder - CompatibilityTrust Builder - Compatibility

The extent to which a salesperson’s The extent to which a salesperson’s behaviors, actions, and personality are behaviors, actions, and personality are consistent with and/or appreciated by consistent with and/or appreciated by his/her customers.his/her customers.

The buyer likes doing business withThe buyer likes doing business with the salesperson. The buyer likes the salesperson. The buyer likes doing business with the salesperson’s doing business with the salesperson’s company.company.

CompatibilityCompatibility

Knowledge BasesKnowledge Bases

• IndustryIndustry• CompanyCompany• ProductProduct• Price and PromotionPrice and Promotion• ServiceService• Market/CustomerMarket/Customer• CompetitorCompetitor• TechnologyTechnology

Industry KnowledgeIndustry Knowledge

Objective:Objective: 1) develop and execute 1) develop and execute effective selling strategies, and 2) effective selling strategies, and 2) be viewed as a market information resourcebe viewed as a market information resource

Knowledge Need:Knowledge Need: the dynamics, structure, the dynamics, structure, culture, and forces that affect the industry or culture, and forces that affect the industry or industries in which they work.industries in which they work.

Company KnowledgeCompany Knowledge

Objective:Objective: effectively and accurately effectively and accurately represent the company when represent the company when interacting (e.g., negotiating) with its interacting (e.g., negotiating) with its prospective and current customers.prospective and current customers.

Knowledge Need:Knowledge Need: understand their understand their company’s culture, mission, goals, policies, company’s culture, mission, goals, policies, and procedures so that they mayand procedures so that they may

Product KnowledgeProduct Knowledge

Objective:Objective: be perceived (by the be perceived (by the customer) as experts and capable customer) as experts and capable of accurately matching solutions to the needs of accurately matching solutions to the needs of the customerof the customer

Knowledge Need:Knowledge Need: a thorough understanding a thorough understanding of their product offering(s) and various of their product offering(s) and various sources of value it (they) providesources of value it (they) provide

Promotion and Price KnowledgePromotion and Price Knowledge

Objective:Objective: 1) facilitate their customers’ 1) facilitate their customers’ participation in promotional programs participation in promotional programs and 2) effectively negotiate termsand 2) effectively negotiate terms

Knowledge Need:Knowledge Need: understand the details of, understand the details of, and how to manage, promotional programs and how to manage, promotional programs and the pricing structure of their productsand the pricing structure of their products

Service KnowledgeService Knowledge

Objective:Objective: match their company’s match their company’s service capabilities to the needs of service capabilities to the needs of their customerstheir customers

Knowledge Need:Knowledge Need: understand their understand their company’s service capabilities (other than company’s service capabilities (other than the core product) and the value they addthe core product) and the value they add

Market and Customer KnowledgeMarket and Customer Knowledge

Objective: 1) develop and implement Objective: 1) develop and implement effective selling strategies, and 2) clearly effective selling strategies, and 2) clearly communicate relevant solutionscommunicate relevant solutions

Knowledge Needs: understand the markets they Knowledge Needs: understand the markets they serve and their customers, including needs, serve and their customers, including needs, personalities, and communication stylespersonalities, and communication styles

Competitor KnowledgeCompetitor Knowledge

Objective: to position their products Objective: to position their products against those of their competitors’ against those of their competitors’

Knowledge Need: their competitors and Knowledge Need: their competitors and respective market offers and how they are respective market offers and how they are perceived in the marketperceived in the market

Technology KnowledgeTechnology Knowledge

Objective:Objective: to leverage technology to me to leverage technology to me more competitive . . . work smarter not more competitive . . . work smarter not harderharder

Knowledge Need:Knowledge Need: understand how utilize sales understand how utilize sales technology hardware and software (e.g., technology hardware and software (e.g., internet, CRM, laptops, smart phones) internet, CRM, laptops, smart phones)

Clearly Clearly WrongWrong

Clearly Clearly RightRight

Ethical DecisionsEthical Decisions

EthicsEthics

Ethics refers to right and wrong conduct Ethics refers to right and wrong conduct of individuals and institutions of which of individuals and institutions of which they are a part.they are a part.

Ethical Ethical DilemmaDilemma

Image of SalespeopleImage of Salespeople

Areas of Unethical BehaviorAreas of Unethical Behavior

ExaggerateExaggerateWithholdWithholdDeceiveDeceiveHustleHustleScamScamBluffBluff

Deceptive PracticesDeceptive PracticesMisuse CompanyMisuse Company

AssetsAssetsDefraudDefraud

ConCon

Illegal ActivitiesIllegal Activities

PushyPushyHard SellHard Sell

Fast TalkingFast TalkingHigh PressureHigh Pressure

Non-Customer-Oriented BehaviorNon-Customer-Oriented Behavior