Industry and company in salesmanship *

A broad background of knowledge and its importance

We have already pointed out on a different page, the several bodies of knowledge which it is necessary for the salesman to acquire if he would be thoroughly prepared. In the more detailed discussion of these several fields of investigation and study, it is the plan of this Text to proceed from the general to the particular—the industry, the company, the sales department, the product, the prospect and his problems and the selling process itself. It is rarely possible for the salesman, in the course of his selling talk, to air any considerable amount of his knowledge of his industry or of the raw materials which enter into his product. It is a little more probable that he may be able to talk of his company, but, the chances are, only briefly.

It would, as a matter of fact, be most unwise for him to do so. Any considerable talk, except under unusual circumstances, would undoubtedly bore his prospect and throw his entire selling talk out of balance. The buyer is naturally more interested in the offering and what it will do for him. Why then go to the trouble of acquiring this knowledge?

A salesman noted for the unusual size and weight of his briefcase of selling equipment, was asked why he carried so much material. In answer, he took from his bag a pamphlet of a few pages. "This secured an order for me to-day which I am convinced would otherwise have been lost," he declared. "Just one little point in it brought the signature. I made thirty-five dollars commission. I have been carrying it for a month. First time I've used it. Would you be willing to carry that for a month for thirty-five dollars ? I am.

Not a month goes by that I can't trace four, five, sometimes more, orders to some extra piece of equipment that the other boys don't carry. I never know which particular piece is going to turn the trick, so I carry them all."

In the same way, the salesman never knows when one bit of information concerning his company, raw material, or manufacture will make the difference between victory and defeat. Confidence is frequently established in the mind of the prospect by the salesman's close attention to these details. He may not discern that it has had that effect. The salesman who knows he has a real organization behind him and why, who knows that the material and manufacture of his offering leave nothing to be desired, who knows that his superiors are men of ability and reputation, will register a convincing confidence though • he never mentions these things specifically.

A knowledge of his industry and his company is essential to good salesmanship. It may be compared to the solid foundation of a large building. Though little or none of it may be in sight, it is a necessary support. And you cannot rear a twenty-four story building on a four-story foundation.

Knowledge of raw materials

Naturally, the particular knowledge that a salesman will wish to acquire will vary widely with the nature of his offering. It will be realized, too, that to give a fairly complete, even though by no means exhaustive, treatise on any one commodity or line of goods would more than fill such a text book as this.

Therefore, without going into any particular commodity except for illustration, and in no case completely, let us determine what the salesman should know about his industry, the raw materials, including sources from which supplies are drawn, and manufacturing process of his product or line, the differences in processes which make for differences in quality and cost—and the early history of the industry if it possesses interest or romance—if he is to feel confident in presenting his employer's wares. Such data will serve as an outline in laying out a short course of reading and study and will suggest sources of information.

History and background of commodities

The history of merchandise is, to a larger extent than one might imagine, the history of the world. Wars have been fought and new countries settled for markets or access to raw materials. One of the turning points of history, the Industrial Revolution of England, marking the change from the handicraft stage to the factory era, with all its dissension and hardship, centred upon the production of manufactured commodities.

The hardy frontiersmen of early America were largely hunters and trappers penetrating the wilderness in search of pelts for commerce. The transition of furs from a covering for primitive peoples to a raiment for royalty and then to one of the dominant fashion notes of the day marks milestones in civilization.

It is interesting to know that the process of producing silk was originally kept secret and retained for royalty; that the many articles of aluminium in use today were made possible by the discovery of a method of producing aluminium which reduced its cost from somewhat over $8 a pound to a price of some 20 cents.

Aluminium cooking utensils were popularised by college boys in summer-vacation selling long before they found their way into department and house furnishing stores. Worsted gets its name from the fact that the people of an English community, which produced an unusually high grade of woollen cloth, were persecuted, forced to move, and referred to by those among whom they came to live as the "Worsted People." Rubber, one of the basic materials of our modern civilization, owes its name to an 18th century discovery that it would erase pencil marks. These are illustrations of the intensely interesting historical value of facts that may be offered up in connection with almost any industry.

Some commodities, or the raw materials which go into them, may be secured, in whole or in part, from foreign countries. In many cases tariff duties influence the price. There may be uncertainties of supply, such as economic or political conditions which may lead to a scarcity or shutting off of the supply and a consequent sharp increase in price. The English government's control of crude rubber some years ago is a case in point and one which had a wide significance in the price of many products in this country. Here again we can do little more than serve notice that there are these considerations in connection with sources of supply.

Knowledge of manufacturing processes

Cotton which has been combed as well as carded is a more expensive material than the usual grade of cotton, but makes a softer and more evenly knitted material. Aluminium goods may be stamped and spun from the sheet metal, or cast in moulds.

The cast material is heavier and more expensive. Two finished suits may look alike. It makes considerable difference, however, whether each piece of material which goes into the making of the coat has been pressed separately, or the materials put together, and only the finished coat pressed. The former is much better workmanship and, of course, justifiably increases the cost of manufacture.

Steel is made in a variety of compounds, each having its own special property which makes it best for special purposes. The quality of tools depends, of course, upon the treatment and tempering of the steel and possibly the alloy which goes into them. Drop-forged 'parts in any type of machine will outwear cast parts which look very much the same.

Such a seemingly insignificant thing as a reliable clinical thermometer goes through 46 separate manufacturing operations and 24 tests and inspections before it is completed, and the glass tubing from which it is made is placed between processes in a seasoning vault for six months. What is the process of manufacture of full-fashioned hose which makes them superior to seamless hosiery?

Whether the hair in a brush has been merely set in and cemented or glued, or the hairs loop through the back and are wired in, or are set in a hard rubber, cannot be discerned from a surface examination but makes a vast difference in the wearing qualities of the brush, and incidentally in the price which must be charged for it. Silk is sometimes "weighted" by soaking the yarn in metallic salts to increase its body, and thus give it, for a short time, an appearance of quality which is anything but real.

These suggestions indicate the interesting information which it is possible to obtain about manufacturing processes. And one need not go further than a library and an encyclopaedia for the kind of information regarding raw materials and manufacturing processes that will frequently make the selling talk more effective.

One may decide, at first glance, that the suggestions made above do not particularly apply to his type of selling. Possibly the illustrations do not, but inevitably the principle involved does. The seller of life insurance, for example, will certainly want to know something of the history and development of the business, have an intelligent talking knowledge of actuarial science, know something of the tables of the expectation of life, and possess a knowledge of the principles underlying the different forms of life insurance protection policies written.

Likewise, the security salesman will want to possess, as a background for his knowledge of the specific security he may be selling at a given time, a knowledge of the principles of corporate organization and finance and of investment and speculation; and, in addition, a knowledge of the plant or business back of the security. The salesman selling electric refrigerators will want to know the underlying principles of operation and have a knowledge of the advantages and disadvantages of the several different chemicals employed in mechanical refrigeration.

Personnel of the salesman's company

No business can be any bigger than the men back of it. This may be more apparent in some types of business than in others, but, in general, it applies to all. Confidence in a particular automobile is engendered in the mind of the prospect partly at least by the ability of the designers, and the integrity and ability of the company's executives, these characteristics giving some assurance of the continued servicing of the car. In the sale of a security the personnel of the house of issue sponsoring the security, together with the reputations and business ability of those connected with the issuing company itself, its officers and directors, are of paramount importance.

The salesman, then, will want to learn something about the principal personalities in his organization. While a study of corporate organization and of business organization and management cannot properly be regarded as an integral part of the study of salesmanship, these considerations form a somewhat logical starting point for a study of the company and its personnel.

The salesman will want to know something of the general administration of the business, that is, who are the president of the company, the vice presidents, the treasurer and the secretary. Is there a general manager aside from the president? Who are the members of the board of directors ? What are their respective functions, duties and authorities? How capable are they?
In this connection his study will be better organized if he keeps in mind that, in addition to most businesses today being in the corporate form, practically all businesses break down into their production, marketing, financial and accounting departments or activities.

He will want to know who is in charge of these, whether they are corporate officers or otherwise. In general, he will want to know who the individual officers and department heads are, something of their functions, and of the experience and ability of each. He will want to know something of the history, growth and present standing of his company. There is almost always some degree of romance in that.

So far as the present day situation and reputation of the company is concerned, it may be large and an outstanding leader in the industry; or it may be small and hence in a position to give to its activities and service to its customers that careful, personal supervision which is so difficult for the larger concern.

Almost every concern, large or small, has some policies which are distinctive with it and some phases of service to its customers which are superior. These may be matters of price, selling terms, special facilities and superior ability for production or service along some specialized line, strategic location of plants or warehouses, or the like. Whatever they are, the salesman must know them and be able to use them effectively in his selling work. In short, the salesman must locate and orient himself in the organization of which he is a part.

He does this to be able to weave his knowledge of his industry and his company into his selling talk and to be able to lend full cooperation to his house in all its activities as they tie into and affect his work.

Cooperation with the company

There are definite reasons for the credit policies, discounts and terms of credit of the salesman's house. He must know and understand these reasons if he is to explain the credit policies of his house to his customers and if he is to cooperate effectively with the credit manager in their administration in his territory.

The salesman who knows the reasons for certain methods of packing arid shipping can handle effectively the complaint of an irate customer in such a manner as to tie him closer than ever to the house. The salesman whose knowledge of these things is vague is likely, in the same circumstances, to be apologetic and weak and may even, because of his lack of information, be half convinced that the house is as careless and inefficient as the customer's insinuation would seem to imply.

There are definite reasons behind the sizeable advertising expenditure of an efficiently managed concern. The salesman who knows those reasons and has a clear conception of the company's advertising methods and their objectives will be able to render a maximum service to his customer in connection with his company's advertising program and thus be in a position to benefit both the customer and the house.

Marketing policies of the company

If the company specializes in a certain grade and consequent price line—for example, a comparatively low grade at a low price, a medium grade at a medium price, or a high grade at a high price—or if, on the other hand, its policy is to carry all three price lines, what are the reasons for this, and what are the advantages, to the house and to the customer, inherent in the policy?

If the company manufactures under its own brand name, what are the advantages and selling points? If, in addition, the house manufactures the same line for jobbers to be put up under their private brand names, what are the reasons for this policy? What are its advantages and disadvantages? If the company refuses to put up its product under jobbers' private brands, what are the reasons for this refusal?

If it is house policy to limit the range of styles, sizes, colours, and to confine the output to standardized sizes and models, what are the advantages involved which prompted the company to establish this policy? What are the appeals to the prospects in connection with it?

It will be realized that each and every one of these seemingly diametrically opposed policies has been put into successful operation by different companies; and experience would indicate that the business which, through vacillating policies, tries to straddle them all, almost inevitably ends in failure. The successful company is the one that adopts a sound policy and sticks to it as long as the reasons for adopting it hold good. The salesman who can effectively and intelligently represent the policy is he who understands the reasons for it.

Credit policies

What are the trade discounts, if any, allowed by the company? What are the reasons for them? What cash discounts are allowed and why? Does the company allow future datings, and why? If not, why not? Is the product sold on deferred payments? If so, what are the advantages and disadvantages involved, and in what way are the service charges covered? What are the benefits to customers of a strict adherence, on the part of the company, to its credit policies? The salesman who understands these things can sell the company's credit policies to his customers and lend effective cooperation to his credit manager.

Advertising policies

Is the company a consistent advertiser? Is it a national advertiser? Does it use billboards, car cards, direct mail, radio broadcasting, newspapers? What are its distinctive methods of advertising, and what are the reasons for them? What are the advantages, to the customer of the house, of its advertising program? Does it provide special dealer helps in connection with its advertising? If so, what are they and what are their advantages to the dealer?

Policies of distribution

What methods of distribution does the company employ? Does it sell to the jobber, to the retailer, or direct to the consumer? If to the jobber, does it reach over the head of the jobber to the retailer through missionary men? What are the advantages of the company's marketing policies?

Are they those usual to the trade or is the company pioneering in new channels? If so, what are the reasons behind this policy? If the salesman represents a jobber, a knowledge of the history and development of the jobbing trade and the functions it performs in distribution will give him a realization of the necessity, in many lines, of a jobber's service performed through warehousing, accessibility to the retailer, and assumption of credit risks.

Many of these considerations will not apply, without modifications, to the study program of some salesmen who read these pages, but the general outline can be followed.

Sources of information

Sometimes a company finds it advisable to publish a book giving its history, growth, organization, personnel and business policies. In other concerns the sales manual devotes considerable space to this information. In those concerns which conduct a sales training course the leader will usually give it a place in the program.

Short talks will be given on the subject by executives and department heads. The intelligent salesman will also utilize opportunities to gain information from personal interviews with officers, department heads and other salesmen. He will gather all the printed matter available and make a study of it.

He will get into the plant and observe just how the orders that he secures from his customers are put through, if possible following the route of an order from the time it is received until the goods are shipped. This detailed knowledge will be of great help to him in looking after and adjusting complaints for his customers. Generally speaking, it must be admitted that the sources of information indicated as necessary on this page are not always well organized and that the salesman must use considerable ingenuity in acquiring his information and knowledge.

How the salesman will use this information

The salesman's main selling points will, of course, have reference ,to the product or service which he is offering but incidentally he will also sell the company. That is to say, he will sell the personnel of the concern. In every company there are some men of exceptional experience and ability. The salesman often finds an opportunity to use these men as a talking point. He takes advantage of the fact that men are' naturally interested in men. An efficient man arouses more interest than abstract efficiency and the "human interest" appeal brings the concern to life.

He will sell the distinctive policies of the company

A manufacturer of a line of food products under its own brand which was well known and extensively advertised, had established a strict policy never to add any ingredient, harmless or otherwise, that would lower the purity of the product. A salesman for this company, endeavoring to secure a contract, was met with a competing product which had an extensive sale. It was slightly inferior in quality and sold at a lower price.

The salesman said substantially, "It is a strict policy of our company never to lower the grade in order to lower the price. Our brand is the standard of purity in the trade. The best evidence of that is the fact that competitors represent their products as being just as good as our brand. That admits ours to be the standard. It would be very easy for us to lower the percentage of butter fat in our product and meet these lower prices but we propose that our brand shall be a guarantee of grade. That is our policy. It pays us to do that and pays you to take advantage of it.

To be sure, there are lots of consumers who never know the difference, but on the other hand there are just as many discriminating consumers who can detect a high quality and you cater to that class. You have built up a good business here by gaining a reputation for selling quality goods. You cannot afford to eliminate a brand which stands for the highest grade. We recently had a new chemical analysis made of our product and also of this competing product. I don't say that their product is a poor one. It is a very decent grade but not the highest.

The salesman will sell the company's special facilities for production and service. There are usually special features such as size, location, and equipment of plants or laboratories, expert operators, and the like, which the salesman will work into his selling talk. He will do this in a brief and pointed fashion and not make it complex or too technical.
A knowledge of the industry and the company is basic to good salesmanship. It stimulates confidence, furnishes good talking points and enables the salesman to cooperate effectively with the company.