Questions and Answers of Sales Force Management

Intronics Corporation, a manufacturer of electronic circuit boards, reaches the market through the services of 75 manufacturers’ agencies. Most of the agencies average two sales agents who call on
Susan Jones was thinking about the future as she drove home from an important day at her company, Satin Organic Products. In a little over nine years, she had taken a small organic milk company and
Fondren Publishing, Inc., based in Paris, France, is one of the leading worldwide publishers of academic journals in the area of science and technology. It has more than 2,000 titles in its stable of
IBM, Xerox, P&G, and many other companies have reorganized to better serve their largest customers. How might a global company reorganize itself to maximize effectiveness with its most important
The chapter mentions the theory of transaction cost analysis (TCA). What role does TCA play in the decision to use a company sales force rather than independent manufacturers’ agents?Theory
Telemarketing has resulted in the development of inside sales forces. Some companies assign sales trainees to the inside or telephone sales force as part of the training program in preparation for an
LaMarche’s Enterprise manufactures both technical and nontechnical products. Its sales forces are organized in the same manner. The technical sales force has 175 people, and the nontechnical group
As sales director for On-the-Go Logistics you have been tasked with creating a sales team for a new major account—Gigatron (an online multi-product vendor similar to Amazon). Gigatron is based in
A common problem faced by those responsible for making sales forecasts is “selling” the predictions to others such as the vice presidents of marketing, production, and human resources, and to the
Lasting Impressions is a small Orlando, Florida, company that provides trade-show marketing solutions to customers of all sizes. The company offers to design a plan for trade-show exhibiting from
Ralph Dickerson knew an adjustment was needed. In more than 20 years with Bright Right Plastics, he had been around for many changes, and as director of sales for the company, he had initiated a
A survey of local business firms to determine how they forecast sales will produce a variety of answers. Some will claim they do not use any formal techniques to forecast sales. You know they must be
To estimate market potential for the garden tractor division of the M–F Implement Co., Mark Haynes, the statistician, estimated the following relationship using multiple regression analyses:Using
For the following products, indicate what factor(s) you would use to estimate market potential:a. Yoplait yogurtb. Rolex watchesc. Apple iPadsd. Toro power riding lawnmowerse. Ektelon racquetball
A new cake mix is to be introduced by Miracle Foods. To develop territory potentials, a corollary index has been proposed. The index contains several factors, such as income, population, and retail
Once a quarter, every six months, or annually, each salesperson should estimate the buying potential of each account for each major product or product line. Such a request usually causes the sales
Most sales managers hesitate to modify sales territories unless supported by compelling reasons. Likewise, sales managers are reluctant to make major changes in the sales compensation package. On the
The chapter describes the process to follow to develop territories. After territories have been developed, changes may occur that indicate the territories need to be realigned. What changes can you
In the typical case, management by exception leads to a close examination of belowpar situations. Only sales representatives who are not meeting objectives, products that are not selling according to
The Recall Computer Co. has six territories, each represented by one salesperson. After extensive planning, the company determines that each territory would be expected to achieve the following
The use of scanner data collected at the time of checkout in supermarkets has increased dramatically in sales analysis. One company has recruited families nationwide to participate in a panel study.
In planning a sales analysis system, one must consider that information needs vary from district sales manager to regional sales manager to vice president of sales. Give specific examples of how
JUS-GRA Industries is an automotive aftermarket parts distributor based in Munich, Germany. As VP of sales for JUS-GRA industries you have been tasked with opening and staffing the first new sales
The president of Part-I-Tyme, manufacturer of salty snack foods, was dismayed over the dismal sales results reported for the first six months. A new product, a deluxe cookie, had been taste tested
Michael Yardley was worried as he hung up from a phone call with Megan Barnes, the most promising salesperson at Spring Board Technologies (SBT). Michael had hired Megan out of college only four
Vaughn Manufacturing is a London-based automobile parts manufacturer. Specifically, it manufactures crankshafts, a key component of the engine, and sells directly to automobile manufacturers (also
Although many different kinds of tests exist, their ability to predict sales performance has been weak. How do you account for this?
A sales representative for High Speed Technologies is faced with a demand from an important customer that is in direct conflict with company policies. The customer wants several product modifications
The sales force at Fire Protection Systems, a manufacturer of fire prevention systems for industrial applications, have been told they will now have to sell small fire extinguishers to the retail
Maria Gomez-Simpson, a customer service rep with GRA–JUS Associates, spends considerable time traveling to various customer offices. As a result, she often arrives home late. Maria asked her
You are the sales manager at Uptick pharmaceuticals and have been reviewing the sales performance of your team. One of your best salespeople, William Bedford, has been performing significantly below
Sales support personnel include customer service reps, account coordinators, sales assistants, and others whose efforts have a critical impact on a sales force’s success. The chapter discusses
Terri Ann Masters, Vice President of Sales for Startech Corporation, was wrestling with a critical issue related to one of her longtime and, until recently, most talented salespeople, Jason Benjamin.
Most sales reps dislike inputting data into the company’s CRM system. They think their time could be spent more profitably, such as calling on accounts. Using Exhibit 7.3, trace the thought process
Land Escape Vacation Club sells fractional interests in time-share vacation properties at various beach locations. For example, an owner will purchase an interest of four weeks a year at a Land
“What’s all this stuff about different pay packages and different incentive plans based on how long a sales rep has been with the company?” demanded the irate sales manager. “Around here,
How do you motivate sales representatives when money is not effective? What can a sales manager do to motivate the successful salesperson?
How would you respond to a salesperson who says the following? “You are asking me to spend more time calling on new accounts, but I do not see the point in doing so; most of my business comes from
You are Vice President of Sales for a global chemical company. How would you address the concerns of Emma Smith who has asked to go to part time for the next 3 years while she takes care of new
Mark and Cynthia have just finished a long session that produced a heated discussion concerning hiring people who are overweight. Mark stressed that overweight people are considered lazy, sloppy, and
Thad Williams had the kind of problem many sales managers wish they could experience more often. He just came out of a strategic planning meeting with senior management at his company, Logistics
Raymond Baker is J.P. Reynolds Investments’ district sales manager for the Southeastern Region (covering Florida, Georgia, South Carolina, Tennessee, and Alabama). J.P. Reynolds sells a variety of
As we saw in the chapter, women are playing an increasingly important role in selling both as salespeople and as sales managers. What are the challenges facing women and other minorities as they
Enthusiasm is one of the more important attributes sales executives look for in new salespeople. How would you measure or determine whether an applicant possessed enthusiasm? If an applicant lacks
The sales manager of a company manufacturing orthopedic medical equipment attempts to hire salespeople based on the personalities of the customers. The sales manager uses the same process when
You are the sales director for a company with operations around the world and have been asked by the vice president of sales to identify a candidate to open up a new territory in the Middle East. The
The sales manager for one of the nation’s largest producers of consumer goods has identified eight factors that appear to be positively related to effective performance. The manager of human
Ron Deaple considered all his options. As key account sales manager for Cutting Edge Technology (CET), a London-based manufacturer of special purpose computer circuits, he was responsible for sales
Digital Age Games is a video game publisher that took gaming to a new level in the early 1990s with its well-known “Sack Attack—Extreme Football” game. Unfortunately, it has not had a popular
In a recent discussion on the use of the Internet to generate applications, the following quote was made and illustrates the application of the Internet to the recruiting and selection process:It
College recruiters were discussing some of the students they had interviewed that day. One interviewer described a female applicant with excellent credentials as follows: “She looked too feminine,
One potential source of applicants for sales positions are sales representatives who work for competitors. One sales manager indicated, “Pirating sales representatives from other companies makes
The vice president of human resources has called you and asked you to consider using a new personality test for recruiting salespeople. The test measure skills that you don't believe are relevant for
The response from a few of the sales reps from Marlow Technologies toward the new sales training topic was not encouraging. Geoff Marlow, vice president of sales, was dismayed at what he perceived to
As Susan Jamison, director of sales training at O&F Products, a world leader in consumer packaged products based in Munich Germany, leaned back in her chair, she was thinking about the upcoming
Fletcher Ball Bearings, based in Lewiston, Maine, is one of the world’s leading manufacturers of precision bearings and bearing products. Fletcher sells its products to many industries, including
The newly assigned sales representative was perplexed about her inability to learn about consumers’ needs. She contends her customers are not willing to tell her what problems they are
One expert contends that sales training is not at all as complicated as some would claim. He predicts that regardless of the advances in communication, resources, technology, and training tools, the
One of the challenges in evaluating sales training is developing effective assessment measures. What are some of the ethical challenges sales leaders face in creating unbiased effective training
We know that the use of selling teams, sometimes including both salespeople and others from the firm, to accomplish relationship selling is common practice today. As with individual salespeople, the
Danielle Drexel was getting ready to make some important decisions for her company, Dynamic Printing. She had started the company in Chicago and in a little more than 12 years it had become one of
Francesco Rizzo established Francesco’s Bike World, a retailer of bicycles and related parts and gear, in 2010 in Milan, Italy. The company saw steady growth in its first few years and had opened
The Ruppert Company needed to build market share quickly. To motivate sales growth, Ruppert installed a straight commission compensation plan: The more the sales reps sold, the more they made. This
When OfficeSolutions, a software producer, went into business, it needed to establish market share quickly. To accomplish this, it decided to pay the sales force on a commission basis. After two
When designing sales compensation plans, it is important to meet the relationship selling objectives and at the same time appropriately reward the person who has to meet those objectives. How would
Sales contests, although very popular, raise questions concerning their value. Questions asked include: Don’t they simply shift into the contest period sales volume that would have occurred anyway?
A sales manager says, “You can never hold enough sales contests for your salespeople. The more the merrier. . . . They are guaranteed to increase your business.” Evaluate this statement.
Takamatsu Sports is a Japanese sporting goods company based in Osaka, Japan, that manufactures and sells tennis equipment. It sells three different tennis racquets: the Nomo, the Ichiro, and the
Things are tough at Morgan, Inc. For the last several months, sales reps, who are paid on a commission basis, have barely covered their monthly personal expenses. To help the sales force through
Assume you are taking a job in relationship selling right out of college. What would be your own ideal compensation mix? Why do you prefer the one you propose?
What are the pros and cons of placing ceilings on salesperson incentives? If you were a sales manager, would there ever be a situation where you would advocate the use of incentive ceilings? If so,
Veteran salespeople can pose unique challenges in terms of compensation. Why? What would you suggest in terms of designing a compensation plan that would motivate a veteran sales rep?
You are the VP of sales for a large, global technology company. Each of your 15 key accounts is handled by a separate team of between four and seven specialists (depending on the size of the account)
“Our costs are out of control,” claimed Rosemary Harper, chief financial officer of Broadway United. “In particular, I am really concerned about the level of marketing costs, especially for the
Barry Jefferson could not understand why he was having a problem getting the information. As the regional vice president of sales (North America) for Digital Dimension Manufacturing he wanted to know
Advertising has a synergistic effect. For example, in the Hurricane Performance Bicycle Company case, the $254,000 advertising expenditure for product A had a positive impact on products B and C and
The Rite-Way Corporation, a manufacturer of a line of writing instruments, has completed a ROAM analysis for all products. The deluxe model in its line of fountain pens sells for $5.50 but produces a
The sales manager of Branch A (Exhibit 12.16) was dismayed with the results. The 20 percent ROAM for the branch was below expectations. The sales manager’s response was “OK, they want better
Accounts receivable are too high for Branch A in Exhibit 12.16. One sales analyst recommends giving credit and collection responsibilities to the sales force. Sales reps would be provided with
Given the following profit and loss statement for the XYZ Company, allocate the natural accounts to the functional accounts: Sales Cost of goods sold Gross margin Selling and administrative
Nancy Troyer, the sales manager for InterCraft, a manufacturer and distributor of picture frames and supplies, was in the midst of a heavy discussion with representatives from the company’s
You are given the following information on two salespeople: Salesperson A earns a $22,000 salary; salesperson B earns $23,000. Both earn 1 percent commission. Advertising costs $3 per unit. Shipping
As the sales manager of the M.N.O. Company, you are trying to evaluate the performance of two districts. You have decided to look at how each district has managed its assets employed in the selling
Sylvie Faivre, sales analyst for the Bouvre Cheese Company, had completed her analysis of one of the southern districts. The district was a candidate for consolidation because management believed
As a sales manager, you have been reviewing the travel expense reports for your sales team and noticed a discrepancy with the travel expenses turned in by your top performing salesperson. After
Kevin Harrison, sales rep for Allied Steel Distributors, had an appointment with his sales manager to discuss his first-year sales performance. Kevin knew that the meeting would not go well. One of
West Midlands Restaurant Appliances (WMRA), headquartered in Birmingham, UK, sells large, industrial appliances such as refrigerators, freezers, and dishwashers to restaurants all over Great Britain.
Mike Hunt had been in sales for 20 years, and, as sales manager for Market First Distributors, he was confident of his ability to evaluate salespeople. Market First was a regional distributor of food
A large corporation notices an irregular decrease in the sales of a particular representative. The sales rep, normally in very high standing among other salespeople and quotas, has of late failed to
Given the following information from evaluations of the performance of different sales representatives, what possible conclusions can be made about why the sales reps are not achieving quota (assume
Is sales “just a numbers game,” as one sales manager states? She believes that all you have to do is make the right number of calls of the right type, and the odds will work in your favor. Make
Jackie Hitchcock, recently promoted to district sales manager, faced a new problem she wasn’t sure how to resolve. The district’s top sales rep is also the district’s number-one problem. Brad
As sales manager for the largest sales region in your company (covering all of Asia), you are responsible for 20 salespeople that are widely geographically dispersed. The VP of sales has called you
Salespeople are also called sales representatives. Define the term representative. Whom does the salesperson represent? Why is it important to recognize the different groups that salespeople
What do you think the differences would be in the selling process for the following products and services? How would managing the sales process differ for each?• Selling Planter’s Peanuts to your
Is it possible for a firm to be successful without a market orientation? Can you come up with examples of firms that are not very market-oriented but still are leaders in their competitive
Does the Internet replace the need for salespeople? In what situations is the Internet most likely to replace salespeople? What characteristics of a situation would make the Internet least likely to
iTeam, Inc. is a high-tech company based in Walnut Creek, California (26 miles northeast of San Francisco), that produces, markets, and sells computer systems, computer peripherals, and other
A number of organizations that did not consider marketing part of their business activities in the past have found the need to begin to market their services. Nowhere is this more prevalent than in
Grace Hart had established herself as an exceptional salesperson at Digital Medical Instruments (DMI). Only seven years out of college, she had become a sales manager at DMI; then Medical Imaging

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