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Fundamentals of Selling
Customers for Life Through Service

TWELFTH EDITION

CHARLES M. FUTRELL
Texas A & M University

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FUNDAMENTALS OF SELLING: CUSTOMERS FOR LIFE THROUGH SERVICE
Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the
Americas, New York, NY, 10020. Copyright © 2011, 2009, 2008, 2006, 2004, 2002, 1999, 1996, 1993, 1990, 1988,
1984 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced
or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written
consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic
storage or transmission, or broadcast for distance learning.

ISBN-10: 0-07-352999-0 (alk. paper)
1. Selling. I. Title.
HF5438.25.F87 2011
658.85—dc22
2010038114

www.mhhe.com

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To my Father, who calls us all to a life of unselfish love
for all people of our world.

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ABOUT THE AUTHOR


Award for commitment to excellence and service in the area
of sales. In 1999, the Association of Former Students awarded
him the Lowry Mays College and Graduate School of Business
Distinguished Teaching Award. Mu Kappa Tau, the National

Marketing Honor Society, recognized Charles for exceptional
scholarly contributions to the sales profession in 2000. This is
only the fourth time this recognition has been bestowed since
its creation in 1988. Charles was the recipient of Sales & Marketing Executives International’s (SMEI) Educator of the Year
in 2007. Among many other things, SMEI founded Pi Sigma
Epsilon (PSE), the only national, co-educational, professional
fraternity in marketing, sales management, and selling. PSE
has more than 45,000 members at 123 campuses. From January
1997 to August 2007, he was the Federated Professor in Marketing Studies at Texas A&M University.
In the spring of 2001, Dr. Futrell was chosen as a Fish
Camp (Texas A&M University’s Freshman Orientation Camp)
Namesake. Fish Camps are named after faculty members who
have made a significant impact on Texas A&M, and nominations for the award are made by students, which makes it a very
prestigious honor for instructors. He has been an associate faculty adviser for Impact, a four-day Christian summer camp for
entering freshmen involving 1,000 freshmen and 300 advisers. Charles was on the leadership team of TAMU’s officially
recognized Christian Faculty Network of over 250 scholars.
Finally, in 2010 Charles was selected by students to represent
Texas A&M as Guest Coach for the baseball game against the
University of Texas.
Dr. Futrell has written or co-written eight successful books
for the college and professional audience. Two of the most
popular books are Fundamentals of Selling: Customers for
Life through Service, twelfth edition, and ABC’s of Relationship Selling through Service, twelfth edition, both published
by McGraw-Hill/Irwin. These books are used in hundreds of
American and international schools. Over 300,000 students

afford to lose customers. It is always easier to sell to a satisfied
customer than an unsatisfied one. The cost of acquiring a new
customer is higher than keeping a present customer.
Obtaining new customers and retaining present ones are the
main challenges of salespeople. Increase in sales and profits
is up to the sales personnel—the people who represent their
employers through interacting with present or prospective customers. Sales professionals strive to create a long-term business
relationship, which implies that personal relationships with clients are formed. Consumers want to buy from someone who
cares about their needs. People do business with the people they
trust, and they trust the people they know.
This textbook focuses on taking care of the customer through
exceptional customer service. Service means making a contribution to the welfare of others. Salespeople exist to help others.
New Additions, Expansions, and
Reexaminations to This Edition
Using this textbook each year in my sales classes has resulted in
a constant study of the text by students who provide feedback on
its content. Present users of the textbook have offered detailed
critiques providing direction for revision of the book, as have
the reviewers noted in the Acknowledgments. The relationships
and interactions in the various steps of the selling process have
been carefully examined to form a more seamless flow from
one chapter to the next, and special emphasis is placed on the
importance of ethical behavior in working with prospects and
customers. Other changes include:
■

Many examples with some illustrated using new photographs.

■


versions. Numerous sales trainers around the globe use our selling process to prepare their salespeople.

The Uniqueness of Fundamentals of Selling
The appendix to Chapter 1: “The Golden Rule of Personal Selling as Told by a Salesperson,” reveals this textbook’s unique
central focus—serving others unselfishly. To aid in this message, the acclaimed worldwide Golden Rule was incorporated
in order to stress treating others as you would like to be treated
in the marketplace and workplace.
The textbook’s foundation is based upon service. Its cornerstone is love (caring) of others. Fundamentals of Selling’s
values are supported by the pillars of an organization’s—and
individual’s—integrity, trustworthiness, and character (see
Exhibit 3.13). The center of business and personal life revolves
around personal interactions; as a result, a theme of this textbook is that ethical service, based upon truth between people,
builds strong long-term relationships.
Fundamentals of Selling seeks to prepare people for the 21st
century’s demand for moral and ethical treatment—a universal
declaration for human rights. It is a calling for a higher standard
than what previously exists in many organizations worldwide.
The General Assembly of the United Nations has proclaimed
that humans possess reason and conscience and should act
toward one another in a spirit of brotherhood. Organizations
should not be engaged in war within the marketplace, but committed to serving mankind.
Many people seem to separate their personal life from their
business life. Some individuals, when entering the business
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■

Preparation for Relationship Selling. Presents the background information salespeople use to develop their sales
presentations.

■

The Relationship Selling Process. At the heart of this book,
this part covers the entire selling process from prospecting
to follow-up. State-of-the-art selling strategies, practices,
and techniques are presented in a “how-to” fashion.

■

Managing Yourself, Your Career, and Others. The importance of the proper use and management of one’s time and
sales territory is given thorough coverage. Two chapters
cover the fundamentals of managing salespeople. For many
students, this is their only exposure to what a sales manager
does in this challenging job.

The Philosophy behind This Book
The title should help you understand the philosophy of this
book. A student of sales should understand the fundamentals—
the basics—of personal selling. All of them. I do not advocate
one way of selling as the best route to success! There are many
roads to reaching one’s goals.
I do feel a salesperson should have an assortment of selling skills and should be very knowledgeable, even an expert, in
the field. Based on the situation, the salesperson determines the
appropriate actions to take for a particular prospect or customer.

The Tree of Business Life Icon. Beginning with Chapter 3,
The Tree of Business Life icon is used to remind the reader of
one of the main themes of the book. This theme emphasizes that
by providing ethical service you build true relationships. This
section was developed in hopes of having the reader consider
how a salesperson would incorporate ethical service into the
chapter’s topic.
The Golden Rule Icon. The Golden Rule icon appears in
each chapter to help reinforce the Tree of Business Life. The
combination of the Golden Rule and the “Tree” guidelines
for business and selling form the core theme of this textbook.
Unselfishly treating prospects/customers as you would like
to be treated without expecting something in return results in
ethical service which builds true long-term relationships. If you
think about it, this is how you build true personal friendships.
Why not build your business relationships on this rock?
Comprehensive Cases. At the end of the book are comprehensive sales cases. These cases approach sales from the
broader sales management perspective.

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Preface
Video Cases. Cases 3.1, 3.2, 5.3, 6A.5, 8.3, 11.3, 13.4, and
14.3 can be used independently or with eight of the videos
accompanying this book. Each of the eight cases highlights a
tough ethical dilemma often faced by sales personnel in today’s
competitive marketplace. Use any or all of these cases to

Making the Sale. These boxed items explore how salespeople,
when faced with challenges, use innovative ideas to sell.
Selling Tips. These boxes offer the reader additional selling
tips for use in developing their role-plays.

Student Application Learning Exercises (SALES). Chapters
directly related to creating the role-play have SALES that aid
students in better understanding how to construct this popular
class project. These were first used in my classes in the fall of
1997. Students unanimously felt they were great in helping
them correctly construct their role-plays. SALES appear at the
end of Chapters 4, 6A, 8, 10, 11, 12, and 13.

Artwork. Many aspects of selling tend to be confusing at
first. “What should I do?” and “How should I do it?” are two
questions frequently asked by students in developing their
role-plays. To enhance students’ awareness and understanding,
many exhibits have been included throughout the book. These
exhibits consolidate key points, indicate relationships, and
visually illustrate selling techniques.

Sales Careers. Career information has been expanded
throughout so students will better understand that there are sales
jobs in all organizations—business, service, and nonprofit.

Chapter Summary and Application Questions. Each chapter
closes with a summary of key points to be retained. The
application questions are a complementary learning tool that
enables students to check their understanding of key issues, to
think beyond basic concepts, and to determine areas that require

explanation of ethical behavior in Chapter 3 before discussing
the ethical dilemmas.

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x

Preface

Further Exploring the Sales World. These projects ask
students to go beyond the textbook and classroom to explore
what’s happening in the real world. Projects can be altered
or adapted to the instructor’s school location and learning
objectives for the class.
Cases for Analysis. Each chapter ends with brief but substantive cases for student analysis and class discussion. These
cases provide an opportunity for students to apply concepts
to real events and to sharpen their diagnostic skills for sales
problem solving. Comprehensive cases are found in the back
of the book.
As you see, the publisher and I have thoroughly considered
how best to present the material to readers for maximizing their
interest and learning. Teacher, reviewer, and student response to
this revision has been fantastic. They are pleased with the readability, reasonable length, depth, and breadth of the material.
You will like this edition better than the previous one.
Teaching and Learning Supplements
McGraw-Hill/Irwin has spared no expense to make Fundamentals of Selling the premier text in the market today. Many
instructors face classes with limited resources, and supplementary materials provide a way to expand and improve the

exams.
Course Web Site. At you
can access downloadable versions of instructor support materials, as well as a student tutorial and student self-assessment
quizzes.
■

A PowerPoint Presentation. A state-of-the-art program
offering hundreds of lecture slides. These slides can be customized for any course. They are great!

■

Computerized Test Bank. The Computerized Test Bank
allows instructors to select and edit test items from the
printed Test Bank and to add their own questions. Various
versions of each test can be custom printed.

■

Electronic Version of the Instructor’s Manual

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ACKNOWLEDGMENTS

Working with the dedicated team of professionals
at McGraw-Hill/Irwin, who were determined to
produce the best personal selling book ever, was

Cassler, University of Houston; Michael Cicero,
Highline Community College; Norman Cohn,
Milwaukee Tech; Marjorie Cooper, Baylor University; Gerald Crawford, University of North
Alabama; William H. Crookston, California
State University–Northridge; Gary Donnelly,
Casper College; Casey Donoho, Northern
Arizona University; Sid Dudley, Eastern Illinois University; Dennis Elbert, University of
North Dakota; Earl Emery, Baker Junior College of Business; O. C. Ferrell, Colorado State
University; Fred H. Fusting, Loyola College in
Maryland; Douglas E. Gatton, Dallas Baptist
University; Myrna Glenny, Fashion Institute of
Design and Merchandising; Ric Gorno, Cypress
College; David Gripp, Milwaukee Area Technical College; Kevin Hammond, Community College of Allegheny County; LeaAnna Harrah,
Marion Technical College; Jon Hawes, University of Akron; Deborah Jansky, Milwaukee
Area Technical College; Albert Jerus, Northwestern College; Donna Kantack, Elrick &
Lavidge; Dennis Kovach, Community College

xi

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xii

Acknowledgments


Illinois University; Raymond Wimer, Syracuse University; Timothy W. Wright, Lakeland

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Community College; and George Wynn, James
Madison University.
I would also like to thank the many Texas
A&M students who have used the book in their
classes and provided feedback. Thanks also to
the many instructors who call me each year
to discuss the book and what they do in their
classes. While we have never met face-to-face,
I feel I know you. Your positive comments,
encouragement, and ideas have been inspirational to me.
In addition, salespeople and sales managers
have provided photographs, selling techniques,
answers to end-of-chapter exercises and cases,
and other industry materials that enrich the
reader’s learning experience. They include the
following:
Kim Allen, McNeil Consumer Products
Company; Alan Baker, Noxell Corporation;
Michael Bevan, Parbron International of Canada; Richard Ciotti, JCPenney Company; John
Croley, The Gates Rubber Company; Terry
and Paul Fingerhut, Steamboat Party Sales,
Inc., Tupperware; Bill Frost, AT&T Communications; Steve Gibson, Smith Barney;
Gary Grant, NCR; Jerry Griffin, Sewell Village Cadillac–Sterling, Dallas; Martha Hill,
Hanes Corporation; Debra Hutchins, Sunwest
Bank of Albuquerque; Mike Impink, Aluminum
Company of America (ALCOA); Bob James,


■

■
■

xiii

James L. Taylor, University of Alabama
George Wynn, James Madison University

I hope you learn from and enjoy the book. I
enjoyed preparing it for you. Readers are urged
to forward their comments on this text to me. I
wish you great success in your selling efforts.
Remember, it’s the salesperson who gets the customer’s orders that keeps the wheels of industry
turning. America cannot do without you.
Finally, I wish to thank the sales trainers,
Gerald Crawford, Keith Absher, Bill Stewart, salespeople, and sales managers who helped
teach me the art of selling when I carried the
University of North Alabama
sales bag full time. I hope I have done justice to
Fred W. Kniffin, University of Connecticut
Zarrell V. Lambert, Southern Illinois Univer- their great profession of selling.
sity at Carbondale
Charles M. Futrell
Dick Nordstrom, California State University–

Fresno


Once learned, a student
has the basic background
to sell any product.

The Facing a Sales Challenge feature at the beginning of each chapter
presents students with real-life challenges sales professionals face. The
challenge pertains to the topic of the
chapter and will heighten students’
interest in chapter concepts. The challenge is then resolved at the end of
the chapter where chapter concepts
guiding the salesperson’s actions are
highlighted.
p

FACING A SALES
CHALLENGE

p

As the sales manager of a printing company, you are about to invest in a car leasing program
that involves 18 company cars for your sales staff. Together with your comptroller, you have
examined several leasing programs. You have narrowed down your selection to two leasing
companies that offer very similar terms. You are meeting with the president of Equilease, a
company with which you have never done business. You know from your own prospect files
that one of your sales representatives has tried to call on the purchasing manager of Equilease before to get some of their printing business; however, he could not sell the account.
As you meet with the president for lunch, you gently steer the conversation in the direction of printing services. Since he is very knowledgeable about printing services and prices,
you ask him about ballpark prices charged by his existing supplier. You believe you could
provide his company with higher-quality service at a better price.
Since the president of Equilease is in a good mood, you think about setting up a win–win
situation. You are considering making this offer: Let’s make this a double win. I’ll give you

SOCIAL
RESPONSIBILITIES

In one sense, the concept of corporate social responsibility is easy to understand; it
means distinguishing right from wrong and doing right. It means being a good corporate citizen. The formal definition of social responsibility is management’s obligation to make choices and take actions that contribute to the welfare and interests of
society as well as to those of the organization.

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Ethics in personal selling is a primary focus of this text. The Ethical
Dilemma boxes in each chapter are
meant to be challenging exercises
that provide students with an opportunity to experience ethical dilemmas
faced in the sales field.

ETHICAL DILEMMA
Mexico Here I Come

A



Salespeople Have Made America Great!

H

e came on muleback, dodging outlaws as he went, with
a pack full of better living and a tongue full of charms.
For he was the great American salesman, and no man ever
had a better thing to sell.
He came by rickety wagon, one jump behind the pioneers, carrying axes for the farmer, fancy dress goods for his
wife, and encyclopedias for the farmer’s ambitious boy. For
he was the great practical democrat, spreader of good things
among more and more people.

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SELLING TIPS
Using Trial Closes
he trial close is an important part of the sales presentation. It asks for the prospect’s opinion concerning what
you have just said. The trial close does not ask the person to
buy directly. Here are examples:
■

How does that sound to you?

■

What do you think?


■

It appears that you have a preference for this model. Is
this what you had in mind?

■

I can see that you are excited about this product. On a
scale from 1 to 10, how do you feel it will fit your needs?

That’s great—isn’t it?

■

I notice your smile. What do you think about . . . ?

Is this important to you?

■

Am I on the right track with this proposal?

He came by upper berth and dusty black coupe, selling
tractors and radios, iceboxes and movies, health and leisure,
ambition and fulfillment. For he was America’s emissary of
abundance, Mr. High-Standard-of-Living in person.
He rang a billion doorbells and enriched a billion lives.
Without him there would be no American ships at sea, no
busy factories, and fewer jobs. For the great American salesman is the great American civilizer, and everywhere he goes

In the past, warranty work accounted for as much as 70 percent of an auto dealership’s service load.8 That number is steadily dropping to around 30 percent. Because
of this large decline, dealerships must now proactively target service retention and
loyalty among new car buyers. That’s where the sales team of Reynolds & Reynolds
comes in.
Reynolds helps dealerships become more effective at retaining new car buyers as
service customers and building loyalty among the customers to keep them coming
back. They help dealers to better understand their customer base, figure out who
their most profitable customers are, and then target them with focused incentives to
get the customers back into the dealerships when service is needed.
The Opportunity

Bob Sherman, a Minneapolis-area sales associate with Reynolds, and his regional
sales manager, Tim O’Neill, along with Chuck Wiltgen, marketing specialist, met
with representatives from Ben Frothingham’s American Ford Dealership. American
Ford was in need of a new retention plan to boost service sales, and Reynolds provided them with one. The group effectively presented their marketing strategies and
tied up the deal successfully.
Sherman established the contact with American Ford’s service department and
discussed their options. His next call was more promising and he talked with them
more about a new initiative from Ford called “Quality Care Maintenance.” They gave
him negative feedback, so he suggested that they meet with his boss, Tim O’Neill.
By the close of the third meeting, American Ford agreed to have reports run on their
customer retention rate and their database system.

Cases for Analysis appear at the
end of each chapter, plus the back
of the book has several comprehensive sales cases for those wanting
to emphasize both personal selling
and sales management within the
course.


Sales Call Role-Plays

Appendix A: Sales Call Role-Plays
provide complete information on four
sales situations that students can use
to create their class role-plays. The first
three role-plays have an accompanying
video illustrating our ProSelling Process using Professor Futrell’s students
selling a consumer or business product.

How would you like to take a computer class without ever using a computer? To learn, you
need an instructor, a textbook, and a computer. To learn to sell, you need an instructor, a textbook, and one or more role-plays. Role-plays are where the true learning takes place, where
you see how to use all of the classroom instruction materials your instructor and textbook
provided.
I have worked with thousands of people to help them develop role-plays similar to those
presented in a sales training class. The following role-plays have been created from actual
organizations’ sales information provided to their salespeople. The names of the companies
and their products have been changed to provide anonymity.

ROLE-PLAY ONE:
CONSUMER
SALES

Product
Description

Category/Segment
Performance

You are a salesperson for a multi-billion-dollar consumer goods manufacturer. Today

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Appendix B: Personal Selling Experiential Exercises
■

■

■

■

Sell Yourself on a Job Interview explains how to incorporate sales communication and techniques into a job interview. This is a favorite role-play of students.
How to Create a Portfolio shows students how to create information for the job interview highlighting their abilities, accomplishments, and experiences.
Sales Team Building is great for the instructor wanting to incorporate a team selling assignment
into class.
What’s Your Style has students determine their core personality style in order to become a better
communicator.
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GUIDED TOUR
Appendix C: Comprehensive Sales Cases are provided especially for the class wanting to
combine personal selling and sales management.


United
Kingdom
Saudi
Arabia

Japan

Dress conservatively, except in the south where more casual
clothes are worn. Do not refer to people by their first names—the
French are formal with strangers.
Be especially punctual. An American businessperson invited to
someone’s home should present flowers, preferably unwrapped, to
the hostess. During introductions, greet women first and wait until
they extend their hands before extending yours.
Whether you dress conservatively or go native in a Giorgio Armani
suit, keep in mind that Italian businesspeople are style conscious.
Make appointments well in advance. Prepare for and be patient
with Italian bureaucracies.
Toasts are often given at formal dinners. If the host honors you
with a toast, be prepared to reciprocate. Business entertaining is
done more often at lunch than at dinner.
Although men kiss each other in greeting, they never kiss a woman
in public. An American woman should wait for a man to extend
his hand before offering hers. When a Saudi offers refreshment,
accept; declining it is an insult.
Don’t imitate Japanese bowing customs unless you understand
them thoroughly—who bows to whom, how many times, and when.
It’s a complicated ritual. Presenting business cards is another ritual.

Appendix E: Answers to Crossword Puzzles are given for puzzles that are at the back of each

course management system, PageOut.

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BRIEF TABLE OF CONTENTS

PART I
Selling as a Profession

3

1 The Life, Times, and Career of the Professional
Salesperson 4
2 Relationship Marketing: Where Personal Selling
Fits 43
3 Ethics First . . . Then Customer Relationships 70

Begin Your Presentation Strategically 303
Elements of a Great Sales Presentation 335
Welcome Your Prospect’s Objections 368
Closing Begins the Relationship 404
Service and Follow-Up for Customer Retention 439



15 Time, Territory, and Self-Management: Keys to
Success 470
16 Planning, Staffing, and Training Successful
Salespeople 493
17 Motivation, Compensation, Leadership, and
Evaluation of Salespeople 525
Appendix A: Sales Call Role-Plays 556
Appendix B: Personal Selling Experiential
Exercises 566
Appendix C: Comprehensive Sales Cases 584
Appendix D: Selling Globally 601
Appendix E: Answers to Crossword Puzzles 611
Glossary of Selling Terms 617
Notes 627
Photo Credits 632
Index 634

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CONTENTS
Preface vii


Success in Selling—What Does It Take? 17
S—Success Begins with Love 18
S—Service to Others 18
U—Use the Golden Rule of Selling 18
C—Communication Ability 18
C—Characteristics for the Job 18
E—Excels at Strategic Thinking 18
S—Sales Knowledge at the M.D. Level 18
S—Stamina for the Challenge 18

C—Characteristics for the Job Examined 19
Caring, Joy, and Harmony 19
Patience, Kindness, and Moral Ethics 20

Faithful, Fair, Self-Controlled 20
Self-Control Involves Discipline 20

Do Success Characteristics Describe You? 22
Relationship Selling 22
Sales Jobs Are Different 23
What Does a Professional Salesperson Do? 24
Reflect Back 26

The Future for Salespeople 27
Learning Selling Skills 27
Preparing for the 21st Century 28
Ethical Megatrend Shaping Sales and Business 30
Selling Is for Large and Small Organizations 31

The Plan of This Textbook 31

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xxii

Contents

CHAPTER 2
Relationship Marketing: Where Personal Selling Fits 43
What Is the Purpose of Business? 44
The Primary Goal of Business 44

What Is Marketing? 44
Marketing’s Definition 44
Marketing’s Not Limited to Business 45
Exchange and Transactions 45

Customer Orientation’s Evolution 45
The Production Concept 45
The Selling Concept 46
The Marketing Concept 46

Marketing’s Importance in the Firm 47
Marketing Generates Sales 48


Reynolds & Reynolds 67

CHAPTER 3
Ethics First . . . Then Customer Relationships 70
Social, Ethical, and Legal Influences 71
Management’s Social Responsibilities 71
Organizational Stakeholders 72
An Organization’s Main Responsibilities 73
How to Demonstrate Social Responsibility 74

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What Influences Ethical Behavior? 75
The Individual’s Role 75
The Organization’s Role 76

Are There Any Ethical Guidelines? 77
What Does the Research Say? 77
What Does One Do? 77
Is Your Conscience Reliable 77
Sources of Significant Influence 78
Three Guidelines for Making Ethical Decisions 78
Will the Golden Rule Help? 79

Management’s Ethical Responsibilities 80
What Is Ethical Behavior? 80
What Is an Ethical Dilemma? 80

Ethics in Dealing with Salespeople 81

Create an Ethical Sales Climate 95
Establish Control Systems 96

Ethics in Business and Sales 96
Helpful Hints in Making Career Decisions 96
Do Your Research! 97

The Tree of Business Life 99
Ethics Rule Business 100

Summary of Major Selling Issues 100
Key Terms for Selling 101

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