---
title: "Seven Laws of Sales Management"
description: "This article outlines seven fundamental laws for sales managers, covering topics such as understanding human behavior, leveraging advertising, overcoming setbacks, building effective teams, motivating through incentives, fair competition, and strategic market expansion. It emphasizes the importance of balancing relationships, using both material and spiritual incentives, and learning from historical and military strategies."
author: "孙曰瑶"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2014-12-04"
language: "en"
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# Seven Laws of Sales Management

> This article outlines seven fundamental laws for sales managers, covering topics such as understanding human behavior, leveraging advertising, overcoming setbacks, building effective teams, motivating through incentives, fair competition, and strategic market expansion. It emphasizes the importance of balancing relationships, using both material and spiritual incentives, and learning from historical and military strategies.

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**I. The Chair Law**
A sales manager's job is not to go out and sell products; it is primarily about dealing with people. Therefore, to determine if someone has the potential to become an excellent sales manager, they should ask themselves whether they genuinely enjoy interacting with people. This requires sales managers to understand human behavior. I believe human behavior can be illustrated using a common chair. Everyone in society has a chair, just like titles: President Zhao, Director Qian, Chairman Sun, Chairperson Li, etc. However, every chair has two sides: one is the chair itself, like General Manager, Director, Chairman, etc., which can be permanent; the other is the specific biological person sitting on the chair, who changes frequently. As the saying goes, "Iron barracks, flowing soldiers." Thus, sales managers must always be clear about who they are dealing with: the unchanging chair or the person on the chair. If dealing with the chair, it's official business; if dealing with the person, it's dealing with someone who has desires like you and me.

As a sales manager, you must create conditions to transform the person you seek from their chair into a natural person, then discover their needs, create needs, and satisfy them.

That's why I believe sales managers don't sell products directly but sell through others: How to gain consumer trust? How to convince merchants that distributing this product will be profitable? How to motivate your sales staff's enthusiasm, initiative, and creativity? Through years of practice, I believe the key is to use the three characters: "benefit," "emotion," and "law."

**First, lure with benefit.** As Sun Tzu said, "Act when it benefits you, stop when it doesn't." As a sales manager, you must be clear: what benefits does your product bring to consumers or users? What advantages does it have compared to competitors' similar products or substitutes? You must make distributors firmly believe that distributing this product will definitely be profitable. You must make your sales staff understand that good performance leads to higher income. It's important to emphasize that benefits come in various forms: material interests, spiritual wealth, direct cash, or travel rewards. Whatever the form, they must be what the recipients need. Also, the subject of "benefit" can be diverse: the person themselves or their family.

**Second, move with emotion.** As natural beings with social attributes, we are inseparable from emotions. Therefore, when satisfying others' needs, you must wrap it in a veil of warmth, not a naked money relationship. Every sales manager must establish customer files: each customer's characteristics, hobbies, parents' birthdays, wedding anniversaries, children's birthdays, etc. This is an important resource for building relationships, and more importantly, it's low-cost with high returns. For your sales staff, your best choice is: less temper, more guidance; less blame, more encouragement! If you persist in recognizing their strengths, even trivial ones, let them know you not only see them but also appreciate them. They will greatly boost their confidence and repay you not only with sales but also with valuable friendship! When you tap into these emotional resources, you step down from the chair, drop the pretense; it's the natural you communicating with the natural them, transcending the barriers set by the chair. Therefore, in natural sciences, the shortest distance between two points is a straight line, but in social life, the shortest distance is a curve.

**Third, bind with law.** No matter how good the relationship, it's between natural persons; always remember: official business is official. Any commercial transaction must be backed by a legal contract; this is the chair-to-chair relationship.

I often hear sales managers say: "I'd rather fight in the market than return to the company for orders." The reason isn't that the outside world is exciting, but that the company is frustrating. In the market, you can devote yourself fully to work, but once back at the company, you face complex interpersonal relationships. Among these, the most important is how to get along well with superiors. Sales managers must remember: your superior is both a chair and a flesh-and-blood person like you. As a chair, you must show respect; as a flesh-and-blood person, you must treat them with sincerity. I believe the relationship between subordinates and superiors can be divided into five combinations:

1. Flattering superiors: always sweet-talking; if the superior is wise, they'll see this subordinate as likable and trustworthy but not usable.
2. Obedient to superiors: always following orders; the superior may see this subordinate as trustworthy but not usable or likable.
3. Defying superiors: daring to challenge superiors' statements; the superior may see this subordinate as trustworthy and usable but not likable.
4. Threatening superiors: posing a threat to the superior's position; the superior will inevitably see this subordinate as untrustworthy, unusable, and unlikable.
5. Understanding superiors: comprehending the superior's fundamental interests, clarifying their thinking or implementation plans, rationally handling instructions, and intelligently completing tasks; the superior will see this subordinate as trustworthy, usable, and likable.

Many sales managers say they are too straightforward and complain that their superiors don't understand them. I suggest studying Judge Bao. Bao often clashed with the emperor, but the emperor didn't kill him. The fundamental reasons: first, Bao understood the emperor's fundamental interest—keeping the throne and the chair; second, when the emperor faced problems, Bao always helped clarify his thinking and propose solutions, not just complain or watch from the sidelines; third, he rationally handled the emperor's decrees, and if they were wrong, he argued from the emperor's fundamental interests; fourth, once the emperor agreed to his plan, Bao executed it rationally. Rationality means strictly following the law, never using public office for private gain, and fully using intelligence rather than simply relying on power.

**II. The Balloon Law**
Every time I attend monthly sales manager meetings, I hear complaints about insufficient advertising, and at distributor meetings, the factory always wants distributors to increase sales, while distributors invariably remind the factory to increase ad spending. In my view, under intense market competition, advertising is necessary, but it's not the only factor nor isolated. Advertising's role is to add the finishing touch: you must first draw the dragon—build a sales team, produce excellent products, competitive prices, and an effective sales network—then add the eyes: based on target consumers' information channels, use media mix to invest in advertising. Only then can the dragon soar. But many companies only want to "add eyes" without "drawing the dragon."

If the sales manager is the frontline commander of ground infantry, then advertising is the artillery. In every battle, after deployment and drawing the dragon, the artillery fires first to support the infantry. Thus, sales managers must understand advertising's role, especially regional sales managers. Advertising, whether hard or soft, is a beautiful lie, only mentioning advantages, designing a beautiful trap. But when advertising, you must be like blowing a balloon: if you don't blow, it won't expand or rise, but you must not over-blow, or it will burst. Even if it doesn't burst, you must tie a string and hold it tightly, or it may easily lose control in the wind. Once out of control, it's "success through advertising, failure through advertising."

Sales managers, advertising budgets are always limited, and ad agencies' skills need improvement. In such cases, you must stay clear-headed: use the limited ad budget where it counts!

**III. The Basketball Law**
Sales management isn't for everyone. Besides the inner drive to interact with people, you must overcome your own obstacles: the crisis of confidence from repeated rejections and failures. Though "failure is the mother of success" offers some comfort, and "fight and fail, fail and fight" gives some self-mockery, the market doesn't believe in tears. The market is not like a battlefield; the battlefield treats prisoners well, but the market doesn't. Sales managers, when facing setbacks, remember: learn from the basketball! A basketball doesn't bounce by itself; it needs the downward force of a slap. The harder the slap, the higher it bounces. But the premise is that the basketball itself must not be broken or deflated. As long as you don't fall, no one can knock you down! Deng Xiaoping fell three times and rose three times, each time increasing his status and power. When facing setbacks, complain less and think more about solutions! Imitate less and innovate more! Only then can you overcome setbacks and rise with borrowed force! To do this, you must know how to pool wisdom. Let's look at two models:

**1. Gold Prospecting Model**
This model was proposed by American knowledge economist Romer to explain the contingency of knowledge and technological innovation. Romer argued that the contingency of knowledge and technological innovation actually contains inevitability; the key is whether the enterprise or society has an environment and practice that encourages learning or innovation. Romer illustrated: just like searching for gold, if you search alone, your chances are minuscule, almost requiring a miracle. But if 1,000 people search over a geographic area, the chances increase greatly.

I believe two prerequisites need clarification: first, whether the prospector recognizes gold ore, i.e., their knowledge constraints in gold geology; second, what prospecting tools they use, i.e., detection technology constraints, including physical observation, chemical analysis, and high-tech (remote sensing). Importantly, well-trained geological experts can find not only gold but also other mineral resources. Remote sensing technology is similar. Therefore, there are two approaches to finding gold quickly: one is the human wave tactic—training more professionals to cover small areas using physical and chemical methods; this is China's path. The other is the technology tactic—focusing on developing remote sensing technology with fewer professionals; this is America's path.

It's important to note that many sales managers undervalue theoretical learning, thinking theory is one thing and practice another. But in my experience, many sales managers lack development potential because they lack theoretical learning. I always believe theory has two values: first, theory is essentially a thinking tool; whether you use it depends on whether you truly understand and master it. Like remote sensing, it's a good tool, but if you can't use it, it's useless to you. Second, practice guided by theory may still encounter setbacks, but when setbacks occur, you clearly know where you went wrong and can correct it easily. I urge sales managers: learn more theory, drink less alcohol!

**2. Cross Model**
From practical results, the technology tactic is most effective and economically efficient. But this high-tech's biggest feature is the effective comprehensive innovation of multiple disciplines and technologies, not just geological expertise. Since China's higher education follows the Soviet model, emphasizing specialization over interdisciplinary education, it leads to "different trades are as separated as mountains." Without mutual understanding, effective multidisciplinary research is impossible, resulting in severe technological innovation lag. Actually, as technical division of labor becomes finer, many gaps emerge between disciplines; studying these gaps is edge science. From the innovation practices of developed countries, more innovations come from interdisciplinary cross-research. Famous American futurist Toffler said: major breakthroughs often come not from single isolated technologies but from parallel or combined technologies. And the chief designer of the Apollo rocket, Weber, said: all the technologies I used were existing; the key was integration. In practice, cross-integration is the most important and effective.

As a professional, after a period of study and practice, you form a relatively stable knowledge structure. If you don't continuously absorb knowledge from other disciplines to update your structure, your thinking will develop a track effect: forming a stable structure, like a railway track, where the train (thinking) can only run on the fixed track (knowledge structure), resulting in linear thinking. This thinking style lacks innovation. To improve innovation, you need high cross-thinking ability, which requires a multidisciplinary knowledge structure. There are two basic ways to form this: first, individual mode—each professional undergoes formal cross-disciplinary learning, either vertical (different majors for bachelor's, master's, PhD) or horizontal (two or more bachelor's, master's, or PhD programs). Second, group mode—having professionals from different disciplines work together on a common research topic. The best is group cross based on individual cross. The higher the talent, the higher the innovation opportunities, increasing exponentially. Sales managers, if your staff join you in finding gold and discussing solutions, there's no obstacle you can't overcome, no market you can't open!

**IV. The Canal Law**
If the enterprise is a reservoir, consumers are farmland, then the sales team is water: products don't move from the enterprise to consumers by themselves; they need the sales team's efforts to realize value conversion, i.e., irrigating the farmland. Therefore, I always believe: without a strong sales team, the enterprise has nothing! The problem is that forming a team is easy, managing it is hard, and managing a sales team is even harder! If you manage strictly, they have no power, no initiative, no creativity; if you manage loosely, goods get lost, payments are hard to collect. First, understand that management is not control.

1. The nature of sales work is collective cooperation, individual assault, dispersed operations; no one can obtain timely and accurate information about them, so one-on-one control is impossible. Like irrigation, you can't transport water molecules one by one; you must build canals, allowing water molecules (salespeople) to flow freely within the canal but also to reach designated points as required.

I believe whether it's the general manager of a sales company or a regional sales manager, the primary management duty is to shape the unit's culture: through the softest culture, unite all salespeople's minds. This cultural environment is mainly a shared value system and a decision-making process everyone participates in. From many companies' experiences, I see that any sales company or branch with internal unity will definitely see sustained growth. How to achieve this? As a sales manager, you must point out a bright future for your salespeople. Psychologist Leen once said: if people can't see their future, they won't be motivated to strive. In other words, if anyone has no hope or imagination for their future, their work motivation will vanish.

A psychological experiment proves this: when the possibility of achievement is completely hopeless, desire is lost. The experiment: put a pike and small fish in a tank. The greedy pike develops a habit of eating small fish. After a while, insert a glass plate in the middle, separating them. When hungry, the pike tries to eat the fish but hits the glass each time, living in this "drawing a cake to satisfy hunger" environment for days. One day, suddenly remove the glass. Logically, the pike should pounce and feast. But the opposite happens: the pike loses its appetite for the fish, gradually weakens, and dies.

This experiment shows: if a state of insufficient desire persists for a certain period, the desire itself declines.

Similarly, most young people have desires to achieve their ideals. If they are kept in an environment where realization is impossible for a long time, their desires and will gradually disappear. Therefore, an excellent sales manager should perceive this psychological trait, point out a bright future for salespeople, giving them hope and pursuit.

Panasonic's current status is inseparable from Mr. Matsushita's "250-year long-term plan." In 1937, on the first anniversary of founding, he announced to all employees: Panasonic will, in 250 years, produce a large quantity of affordable daily necessities, as plentiful and fast as running water, so cheap they're almost free. His dream, by ordinary standards, would usually be scoffed at, but Matsushita had a way to make employees believe in this bright future. He divided the long-term plan into 10 stages, each 25 years. Each 25-year stage was divided into three periods: the first 10 years for construction, the second 10 for activity, and the last 5 for social service. His first-stage plan was detailed, clear, and convincing; the later stages were more general.

The first 10 years were crucial. To make employees pursue this goal together, he took the first step steadily and seriously, implementing the first stage. As the plan progressed, employees' beliefs strengthened, greatly motivating them, and Panasonic eventually grew into an international company.

It should be noted that if goals are too low, they lack charm; if too high, they create despair. To keep the plan attractive, the key is ensuring its realization: divide the grand goal into smaller, shorter goals, focusing on the long term while grounding in reality. Mao Zedong divided the Anti-Japanese War into three stages: strategic defense, strategic stalemate, and strategic offensive. Deng Xiaoping divided China's modernization into three steps: first, solving food and clothing; second, achieving a moderately prosperous society; third, reaching the level of moderately developed countries. A Japanese marathon runner who won his first race divided the course into many short segments, setting a new goal after each segment until the finish.

This concept, applied to marketing, can effectively overcome spatial decay effects and greatly promote market expansion. Traditional location economics theory holds that the farther from the enterprise, the higher transport costs and prices, leading to lower sales. Market competition among same-industry enterprises weakens with distance from the enterprise's location, gradually forming circular market areas. Gaps between circular areas are squeezed, overlapping market networks appear, and finally hexagonal market structures form, ending competition. But in reality, many enterprises have high market shares not only in their local area but also in distant regions. For example, from my limited survey: at one time, Qingdao Hisense TV had about 30% market share in the northwest region, up to 60% in Qinghai Province, which geographically should be the absolute control area of Shaanxi Konka and Sichuan Changhong. Qufu's Sankong Beer had about 60% market share in Xuzhou for five consecutive years. Yantai Laizhou Beer had over 85% market share in Qingdao Jiaozhou, within Tsingtao Beer's sphere, for over a decade.

So, besides distance factors like increased freight and prices, non-distance factors are key to competing for markets outside the local area. Among non-distance factors, the most critical is the management capability of regional market managers.

**2. What factors constitute a regional market manager's management capability?**

First, intellectual factors: mainly education. In China's fiercely competitive college entrance exams, getting into university at least proves higher intelligence. After years of study, besides professional knowledge, it strengthens thinking ability, enhancing problem-solving skills.

Second, experience factors: mainly actual work time and performance. The more experience, the more experiential knowledge, or the stronger the ability to apply book knowledge, especially social skills in dealing with people.

Third, personality factors: mainly whether one is introverted or extroverted. From market competition practice, extroverts adapt better and communicate better with distributors and staff. Also, whether conservative or aggressive: conservative suits mature markets, while aggressive suits new market development.

Fourth, effort level: directly determines enthusiasm, creativity, and initiative. For regional market managers, factors affecting effort include identification with the company, income incentives, internal competition pressure, task allocation, and company support. Among these, identification and income incentives are internal drivers; competition pressure, task allocation, and support are external drivers. The key to external drivers is fairness. If the assessment system is fair, task allocation and support are relatively fair, managers' effort will increase or at least not decrease.

To effectively improve regional managers' enthusiasm, initiative, and creativity, sales management must emphasize delegation of power, i.e., "if the general is capable, the ruler does not interfere." If there are only tasks and responsibilities without corresponding power, regional managers cannot function effectively. This is like in military command: Mao Zedong and Chiang Kai-shek had a significant difference. Mao only set the campaign's operational policy, leaving field command to frontline commanders, mainly the field army commanders and commissars during the Liberation War. Chiang, however, always commanded by skipping levels, often moving troops without notifying campaign commanders.

Sun Tzu's "The Art of War" chapter on offensive strategy says: "There are three ways in which a ruler can bring misfortune upon his army: by commanding the army to advance when it should not, or to retreat when it should not, which is called hobbling the army; by trying to govern an army the way he governs a kingdom, which confuses the soldiers; by entangling the army with political considerations, which creates doubt and invites disaster."

In practice, level-skipping commands almost always come from senior managers, bypassing middle managers to directly instruct grassroots managers or even staff, disrupting the internal command system. Senior managers must learn from Chiang's mistakes and also from Zhuge Liang's over-involvement, avoiding being bogged down in trivial matters that lead to strategic errors. Otherwise, not only will there be "the master works, the subordinates idle," but also decision errors and management chaos. Therefore, top decision-makers must avoid this. Delegating power not only greatly motivates regional managers but also creates fertile soil for them to play their roles and realize their value. With that, would they still want to switch jobs?

**V. The Ladder Law**
When mentioning the cat theory, most think of Deng Xiaoping's famous saying: "It doesn't matter if it's a black cat or a white cat, as long as it catches mice, it's a good cat." But the cat theory I refer to was proposed by Mao Zedong. In Xiao Shimei's book "Mao Zedong's Strategies," there's a story from 1950s Shanghai: After meeting capitalists, Mao summoned Liu Shaoqi and Zhou Enlai and asked: "How can you make a cat eat chili?" Liu said: "Easy! Have someone hold the cat, stuff the chili in its mouth, and push it down with chopsticks." Mao shook his head in dissatisfaction: "Never use violence; everything should be voluntary." Zhou said: "First, I'd starve the cat for three days, then wrap the chili in a piece of meat. If the cat is very hungry, it will swallow it whole." Mao clearly disagreed, as he thought you shouldn't deceive people. His method: "It's easy. Rub the chili on the cat's bottom. When it feels the burning, it will lick it off itself and be happy to do so."

Actually, Mao's proposition itself is worth analyzing. Cats don't eat chili; no matter what measures, a cat eating chili is unhappy. Even with Mao's method, the cat would think: who rubbed chili on my bottom? Therefore, to achieve Mao's goal, three assumptions are needed: first, the cat has no thoughts; if no thoughts, there's no happiness or unhappiness; second, the cat never investigates who rubbed chili on its bottom; third, the cat can never find out who did it. I believe once the cat knows the truth, it will hate the person even more!

To motivate their enthusiasm, initiative, and creativity, first understand their behavioral traits: what do they "like to eat"? If they don't like chili but like fish, let them eat fish. The question is where the fish comes from. Some company bosses propose the cormorant theory: let cormorants catch fish in the river; small fish for the cormorant, big fish for the owner. But to achieve this, there are three possibilities: first, feed the cormorant fully so it has no appetite and hands over all fish—impossible, because once full, it won't want to catch fish; second, keep it hungry to motivate it, and when it catches a fish, the owner grabs its neck and takes the big fish—but with many cormorants, you can't manage; third, train the cormorant in advance to give all fish to the owner, who then gives it small fish.

People are not cormorants or cats!

To effectively establish an incentive mechanism, I think the ladder theorem can illustrate. The theorem states: a stable ladder must have four vertical sides, forming two corresponding horizontal rungs. I believe the four vertical sides include two pairs: one pair is position and title forming the promotion ladder (promotion incentive). Currently, most enterprises only have position promotion as the benefit mechanism, leading to bureaucracy and internal friction. Title levels reflecting technical skills hardly motivate, causing the promotion "ladder" to be deformed. The other pair is material and spiritual forming the reward ladder (reward incentive). In the traditional system, spiritual incentives were overemphasized, while in reality, material incentives are overemphasized; both extremes make the reward "ladder" unstable. Regarding material rewards for sales managers, most companies currently use commission incentives. I believe commission incentives have significant negative effects. Commission means sales managers get a percentage of sales; the mechanism is: the higher the sales, the higher the commission. Generally, sales managers don't have pricing power, so to increase sales, they may take two measures: cross-regional selling and colluding with distributors to pressure the sales general manager for better prices, distribution, or payment terms. Under this incentive, regional sales managers' income comes from the general manager's pocket, with unclear expectations, leading to a "wait and see" attitude.

If using annual salary incentives, it's the opposite. Under annual salary, regional sales managers have a clear expected annual income. If they complete tasks per company policy, their income is clear; if not, their salary is reduced. This gives the feeling that the company takes money from their pocket, unlike commission where they take from the company. Therefore, I believe annual salary incentives are better for sales managers.

For example, set annual salary at X ten-thousand, pay Y yuan monthly as living expenses, and the rest at year-end based on assessment. The actual annual salary paid is: X × task completion rate - 12Y. If completion rate exceeds 100%, annual salary can exceed X, so no extra bonus needed. Regional managers' annual salary is directly assessed and paid by the company.

For distributors, to solve issues like rebates, consider combining agency and distribution systems, adopting the "four determinations" policy: "fixed point + fixed quantity + fixed price + fixed profit." "Fixed point" determines the distribution area; "fixed quantity" sets sales volume; "fixed price" means distributors sell and pay at the company's retail price; "fixed profit" means after completing tasks, the company gives distributors a year-end rebate. This method ensures distributor interests. If distributors agree, sign a contract, assess quarterly, and pay seasonal rebates. The assessment method: (quarterly task / annual task) × annual rebate × (quarterly actual sales / quarterly task). Regional managers can organize all distributors in their area, determine total sales and individual sales. Then, based on total sales, calculate seasonal rebates with the company, then distribute rebates proportionally to actual sales. This tests the regional manager's organizational ability.

But when material rewards reach a certain level, their incentive effect diminishes. Then spiritual incentives are especially needed. For spiritual incentives, I suggest four effective methods: first, establish a honor room, hanging large photos of outstanding regional market managers and salespeople selected fairly each year, with captions; second, set up a merit wall, carving images and texts of those who made significant contributions; third, publish a company development chronicle, promoting their achievements; fourth, provide key training for outstanding managers or salespeople, including domestic and international training.

**VI. The Horse Racing Law**
As early as the Three Kingdoms period, Cao Cao said: "I use the wisdom of the world, guiding it with the Way, and nothing is impossible." And the second president of IBM, Thomas Watson Jr., wrote in his memoirs: "I never hesitate to promote someone I don't like. The likable assistant, the good-natured fellow who likes to go fishing with you, is a trap in management. Instead, I look for sharp, critical, sharp-tongued, almost obnoxious people who will tell you the truth. If you can surround yourself with such people and listen to them patiently, your achievements will be limitless."

Mao Zedong believed that once the correct line is determined, cadres are the decisive factor. So how are sales managers produced? I believe the long history of feudal dynasties proves that the "horse appraising" theory is unreliable. Even the son of Bole, using his father's manual, found a frog instead of a horse. I insist: whether it's a mule or a horse, take it out for a run! Only through fair horse racing can you find a good horse.

The horse racing theory means the enterprise must provide a fair competitive environment for all employees, allowing them to be fully and effectively utilized and reasonably allocated, thus producing higher knowledge-economic benefits. To establish an effective fair competition environment, enterprises should take two measures: first, implement an internal open bidding system for regional market manager positions, dividing the market into regions with sales targets, time, and budgets, and opening each position to internal bidding; second, for new sales staff, correctly handle the relationship between education and performance: for new graduates, in the first year, look at education; in the second year, half education and half performance; in the third year, look at performance. This provides development opportunities for new graduates while offering fair opportunities for all employees.

To this end, a scientific horse racing procedure is needed:

Step 1: Announcement. The HR department posts a notice for sales staff or regional sales manager positions. Interested employees can submit applications, self-recommending, and provide reasons why they are qualified.

Step 2: Examination. First, physical fitness test: sales work requires stamina, so various methods assess applicants' fitness. Second, essay test: given a topic range, applicants write an essay within a time limit, assessing knowledge breadth, viewpoint novelty, and writing ability. Third, written knowledge test: for the specific position, including true/false, multiple choice, and fill-in-the-blank, assessing knowledge preparation, thinking, judgment, and memory. Fourth, oral test: assessing adaptability.

Step 3: Balancing. HR conducts preliminary evaluation, then proposes a list for the manager to decide.

Step 4: Interview. Shortlisted employees must be interviewed by a selection committee of business and HR personnel. After each interview, the committee scores applicants based on selection criteria. Those passing receive training eligibility.

Step 5: Training. Training covers new position skills and related knowledge, including theoretical study and sales department internship.

Step 6: Evaluation. Through training, evaluate candidates' judgment, learning ability, adaptability, concepts, work quality, and coordination.

Step 7: Formal Appointment.

**VII. The Spider Law**
A spider's ecological habits: first, it identifies where insects frequently pass, then chooses a favorable position to weave a large, sturdy web. Once everything is ready, it patiently waits for insects to enter.

The most basic work for a sales manager to expand the market is to establish effective sales channels in the right place and in the right way. Sales channels are the bridge between manufacturers and consumers. In market competition, whoever controls effective sales channels controls the market.

In today's Chinese market, almost every industry has formed a ranking. Companies in lower positions must clearly recognize that they are not opponents of the leading companies in the national market, nor can they compete in major cities, but they can surpass them in more specific and effective points like point-of-sale, especially major retail stores. Therefore, they must strengthen counter promotions in central shopping malls in large and medium cities.

Take Qingdao Hisense Electric as an example. Its specific measures: first, use various methods to strengthen personal relationships with mall appliance managers, investing in emotional connections; second, differentiate situations and increase promoters. Service includes pre-sale, during-sale, and after-sale. If pre-sale and after-sale form a bridge, then during-sale service is the pier supporting the bridge. Hisense does well in after-sales, but pre-sale (advertising) is limited by budget. Even with more investment, without strong during-sale point-of-sale promotion as the "pier," it's hard to be effective.

Regarding promoter selection, three methods based on circumstances: first, if the mall agrees, the company recruits and trains promoters; second, if the mall doesn't allow manufacturer promoters, build personal relationships with TV counter salespeople; third, negotiate with the mall to directly recruit from existing salespeople.

Regarding potential promotional effects, analyze buyers' point-of-sale behavior. Each TV buyer, before leaving home, may have some impression of brands like Changhong, TCL, Konka, Hisense, but after arriving at the mall, they will definitely visit various brand booths to compare. This shows these buyers' brand loyalty isn't high; although they have a preference, it's not unchangeable. In this comparison process, according to a survey, about 20% of potential consumers think promoters have a big influence, about 60% think some influence, and 20% think none. Clearly, promoters' on-site guidance is very important. If promoters explain in detail, customers understand more and feel more confident, increasing purchase likelihood. Especially price differences: if you explain why the price is higher, a certain price difference not only doesn't hinder the deal but can have a positive effect.

In an environment where it's hard to have a clear overall competitive advantage, to create more effective sales advantages at major points of sale, Hisense takes the following measures: first, include the number of promoters in the assessment of each office and branch, assessing not only sales but also market share in major shopping malls in their area; second, videotape excellent promoters' actual promotional activities as training materials; third, strengthen communication with promoters, including helping them and their families, motivating them emotionally; the company's general manager dines with them during market inspections; fourth, hold promoter performance competitions, with heavy rewards for outstanding performers, including converting temporary workers to contract workers, increasing base salary, and establishing senior promoter titles within the company; fifth, issue a certain number of discount coupons monthly for them to use as they wish. This increases sales and gives them opportunities to help friends and family.

Hisense's strategy fully aligns with Mao Zedong's military theory of base areas—developing in rural areas where enemy forces are weak (especially border regions, hilly areas, lakes and surroundings), expanding from there, and ultimately achieving total victory.

Mao's main criteria for choosing base areas: first, enemy forces are relatively weak; second, it can have a strategic effect of radiating from point to area; third, there is ample room for advance and retreat; fourth, they can support each other.

In competition, no matter how strong one side is, it cannot have a uniformly strong presence nationwide; there are always strengths and weaknesses, and vulnerable points. By analyzing regional differences in the opponent's strength, find their weak points, concentrate your forces, use a wedge strategy, aim for market share, and persist—success is certain. Therefore, in market competition, we must first use consumer needs as the standard, carefully investigate competitors' strengths and weaknesses, and promptly develop products or services that better satisfy consumers and replace competitors' offerings.

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