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Chapter 18 - Personal Selling and Sales Management
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TEACHING NOTE FOR VIDEO CASE VC-18
Xerox: Building Customer Relationships through Personal Selling
Synopsis
Xerox was founded in 1906 as a manufacturer of photographic paper called the Haloid
Company. In 1947, the company purchased the license to xerographic patents and began a
period of rapid growth through the development and sales of plain paper copiers. In 2001,
[Video 18-2: Xerox Video Case (kerin.tv/cr8e/v18-2)]
Teaching Suggestions
1. Ask the class if any of them have had experience working in sales. Have the students with
some sales experience describe (a) their training, (b) how the sales force was organized,
(c) the compensation plan, and (d) key motivators. After watching the video, compare the
Answers to Questions
1. How does Xerox create customer value through its personal selling process?
Answer: Xerox uses several steps of the personal selling process to create customer value.
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2. How does Alison Capossela provide solutions for Xerox customers?
Answer:
Alison spends about fifty percent of her day with her customers, twenty-five percent on
3. Why is the Xerox training program so important to the company’s success?
Answer:
Xerox is has a worldwide reputation for its extraordinary sales representative training
program. Each new sales representative receives eight weeks of training in the field and at
Epilogue
Xerox experienced extraordinary growth for many years, based on the success of its
flagship product—the photocopier. Despite substantial investments by Xerox in new printing
device innovation, demand began to decline as consumers shifted to electronic copies of
documents. The company appointed Anne Mulcahy as CEO in 2001. She quickly used her
experience as a Xerox sales representative to turn the company around by focusing on customer
Chapter 18 - Personal Selling and Sales Management
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Xerox is also expanding into emerging markets such as Brazil, Russia, India, and
Mexico. Mid-sized countries such as Turkey, Poland, Chile, Peru and Columbia represent
opportunities too because organizations in the public sector of those countries are embracing new
information technology. One indication of Xerox’s success is the increase in its stock price. It
recently reached its highest level in nearly three years!
Some interesting facts about Xerox include:
• Number of federal, state, county and local government clients: 1,700.
Sources: “Xerox Corp. Sets New 1-year High at $11.25,” American Banking and Market News, November 20, 2013;
“Corporate Strategy - Company Profile—Can Xerox Duplicate Its Paper Success?” Foreign Direct Investment,
Chapter 18 - Personal Selling and Sales Management
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ICA 18-1: IN-CLASS ACTIVITY
Students’ Perceptions of Selling
Learning Objective. To have students investigate the stereotypes of sales and selling.
Nature of the Activity. Using a “quick quiz” on sales and selling, have students
compare their perceptions and ideas about selling to actual practice.
Estimated Class Time and Teaching Suggestions. About 10 minutes using active class
participation.
Steps to Teach this ICA.
1. Explain that the media have reinforced negative stereotypes of personal selling held
2. Ask students to describe what salespeople do as part of their selling jobs.
3. Ask students if any of them plan on a sales career. For those who say, ‘Yes,’
4. Sales and Selling Quiz. Ask students to discuss the 3 statements made about selling
and give their reasons. The responses should all be fallacious.
5. Respond to the students’ comments with the “key observations” from the Sales and
Selling Quiz: Some Key Observations:
a. Sales people push products on people.
Observations. The most successful companies and sales forces increasingly are
Chapter 18 - Personal Selling and Sales Management
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• Good selling is like a charm: Without it, nothing else matters!
b. Anybody can get a job in sales. You don’t need a degree to work in sales.
c. Sales people are born, not trained.
Observations. Knowledge is key for a successful sales person. This means more
Marketing Lesson. Sales and selling will continue to change. After all, if you were a
buyer, would you want to waste your time talking to the stereotypical pushy, obnoxious sales
person? Selling will continue to emphasize “finding solutions to customers’ problems.”1
Chapter 18 - Personal Selling and Sales Management
SALES AND SELLING QUIZ
Are the following statements
“Fact” or “Fallacy?”
A. Sales people push products on
people.
B. Anybody can get a job in sales.
You don’t need a degree to
work in sales.
C. Sales people are born, not
trained.
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ICA 18-2: IN-CLASS ACTIVITY
Personal Selling Process: Direct Selling of the Mary Kay® Lip Protector
Learning Objectives. To have students engage in a segment of the personal selling
process known as direct selling to illustrate one kind of sales job many of them can consider
while in college or after graduation.
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer:
2. Give the following mini-lecture on the direct selling industry:
“According to the Direct Selling Association (DSA), ‘Direct selling is the sale of a
consumer product or service, person-to-person, away from a fixed retail location, and
marketed through independent sales representatives.’2 Direct selling is a subset of
With direct selling, consumers can:
a. See the product demonstrated or try it before they buy it.
b. Ask more in-depth questions about the offering.
Chapter 18 - Personal Selling and Sales Management
You may be familiar with notable direct sellers Mary Kay, Tupperware, Avon, Fuller
Brush, Pampered Chef, Cutco, etc. The most popular direct selling methods that
3. Click on the Internet icon “Mary Kay Video” [TRT = 1:06] to view a recent video
4. Give the following mini-lecture on Mary Kay:
“In 1963, Mary Kay Ash founded Mary Kay Cosmetics in Dallas, TX with $5,000
in savings. Today, Mary Kay is one of the largest direct selling firms in the
(1) supplement their incomes, (2) buy the products they sell at a discount,
(3) meet others in business and social settings, and (4) be recognized for
achieving success. As the video indicates, Mary Kay Independent Beauty
Consultants one must have the following are key characteristics to be successful:
• Has an entrepreneurial spirit.
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5. Form students into 6-person teams, each representing a particular stage in the Mary
Kay direct (personal) selling process (but don’t tell them that at this point!).
Students on these teams will act as an Independent Beauty Consultant for the Mary
6. Pass out copies of the Mary Kay Direct (Personal) Selling Process Handout to each
student.
7. Mary Kay Lip Protector Sunscreen SPF 15. Briefly describe the product below:
“This little stick applicator contains a lot of protection. Exclusively formulated with
8. Describe the setting for this activity:
“For the next few minutes, each person in your team will be responsible for one stage
9. Give students the following instructions:
“In your teams, each person must now choose one of the six stages of the direct
(personal) selling process that he or she will ‘role play’ as the Mary Kay Independent
10. Have all student teams complete the Mary Kay Direct (Personal) Selling Process
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11. Spend 8 minutes and ask a representative from 2 or 3 teams each to share their
(1) needs/wants assessment and (2) suggestions regarding the actions to be taken for
the specific stage of the direct (personal) selling process listed below:
• Prospecting. Person 1—Direct selling suggestions. Assume prospects at the
house party were identified through a response to TV advertising and then went to
a personalized Mary Kay hosted Independent Beauty Consultant website, referrals
other sales materials, allow prospect to try the product, etc.
• Presentation. Person 4—Direct selling suggestions. Use suggestive selling,
focus on needs/wants (to protect one’s lips from the damaging effects of the sun,
such as premature aging, skin cancer, dryness/chapped lips, etc., compare the
benefits to the cost, probe by asking questions then listen and act on the
inform her about new products she might be interested in, etc.
Marketing Lessons. Marketers use the direct (personal) selling process to develop
satisfied, long-term customer relationships. When executed properly, it leads to satisfied
customers who may generate additional sales through increased sales and referrals, which leads
to the first stage of the process. Also, in the case of Mary Kay, some customers may become
Chapter 18 - Personal Selling and Sales Management
MARY KAY DIRECT (PERSONAL) SELLING PROCESS HANDOUT
(1) Needs and wants fulfilled with the Mary Kay Lip Protector SPF 15 product:
________________________________________________________________________________
STAGE
SALES OBJECTIVE
(2) IDEAS TO MEET OBJECTIVE IN THE
DIRECT (PERSONAL) SELLING PROCESS
Prospecting
Search for and
qualify prospects
•
•
•
Preapproach
Gather information
and decide how to
approach the
prospect
•
•
•
Approach
Gain prospect’s
attention, stimulate
interest, and make
the transition to the
presentation
•
•
•
Presentation
Begin converting a
prospect into a
customer by
creating a desire for
the product or
service
•
•
•
Close
Obtain a purchase
commitment from
the prospect and
create a customer
•
•
•
Follow-up
Ensure that the
customer is satisfied
with the product or
service
•
•
•
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Exercise 1: Personal Selling Process
Activity Summary: In this case analysis, students apply the personal selling process to new
home sales. Students review the personal selling process and learn about Pulte Homes’ history.
After reviewing the mini-case, students answer 5 questions covering the stage of the personal
Exercise 2: The Many Forms of Personal Selling
Activity Summary: In this click and drag activity, students are provided with six forms of
personal selling (outside order taker, inside order taker, outside order getter, inside order getter,
missionary sales, and sales engineer). Students drop the appropriate job description (salesperson
visits, sales clerks, finds and closes, finds and closes by phone, perform promotions, identifies
Exercise 3: Sales Management Process
Chapter 18 - Personal Selling and Sales Management
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Activity Summary: In this click and drag activity, students are given the three stages of the
sales management process (sales plan formulation, sales plan implementation, and salesforce
evaluation) as the drop areas. The clickable items representing sales tasks (setting objectives,
Exercise 4: Xerox: Building Customer Relationships through Personal Selling
Activity Summary: In this 11-minute video, students learn about the history of Xerox and the
role personal selling has played in its success. After watching the video, students are answer five
LO 18-03 Explain the stages in the personal selling process.
LO 18-04 Describe the major functions of sales management.
AACSB: Knowledge Application, Analytical Thinking
Blooms: Apply
Exercise 5: iSeeit! Video Case: Business to Business Marketing Strategy
Chapter 18 - Personal Selling and Sales Management
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Activity Summary: In this straightforward whiteboard animation video, students learn about the
LO 18-02 Identify the different types of personal selling.
AACSB: Knowledge Application
Blooms: Understand
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could ask students to assume the role of the salesperson at Hope
Springs and the role of the customer at the Coffee Collective. Provide the students with a
Marketing Analytics Exercise: Evaluating Sales Force Performance
Activity Summary: In this analytics activity, students read a mini-case about a business to
business technology solutions company supported by four salespeople. The sales manager is
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Marketing Analytics
Learning Objectives: LO 18-04 Describe the major functions of sales management.
AACSB: Analytical Thinking
Blooms: Analyze
Difficulty Level: 3 Hard
Follow-Up Activity: Instructors could ask the students to assume the role of the sales manager
