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sales force management
Sales Force Management Leadership Innovation Technology 12th Edition Mark W. Johnston, Greg W. Marshall - Solutions
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 success of these teams depends, in part, on the reward systems used to motivate and recognize
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 the area’s largest printers. With more than 50 salespeople in the Chicago area, the company had
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 eight stores throughout Italy by the beginning of 2016. Francesco is the owner and acts as the
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 strategy seemed to work—sales volume climbed and the Ruppert Company captured more market share.
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 years, however, the company had a large base business and customers began to complain that salespeople
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 you design sales compensation plans to match the following different company objectives and sales
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? How can everyone be equally motivated when certain territories have a built-in edge because of
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 Matsui. The company experienced a loss last year for the first time, and founder and CEO Hiroshi
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 these tough times, Morgan executives decided to introduce monthly draws. Sales reps whose commission
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, in what situation and why?
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) and each team is headed by a key account manager. He or she is ultimately held responsible for the
“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 sales force.” With a 235-person sales force, Broadway sells computer hardware and software
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 how much it was costing the company for a salesperson to make a customer call. Certainly the
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 on the company as well. Besides, dollars spent in one period have a carryover effect to future
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 ROAM of 8.3 percent, well below the 23.5 percent average for the other products. Management
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 results, then we’ll increase sales by at least 10 percent. But we’ll have to cut prices by 5 percent
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 delinquency objectives aimed at reducing accounts receivables by 20 percent. Those meeting their
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 expenses Salaries Salespeople Sales manager Office personnel Warehouse
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 accounting department. The discussion revolved around the new cost system the accounting department was
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 expenses are $2 per unit. Order processing costs total $1 per order. Travel expenses amount to $0.50
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 function. Your task is to determine each district’s ROAM. Sales Cost of goods sold Gross
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 sales were not as expected. Sylvie suggested she should first determine the district’s return on
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 further review, you determine that the salesperson has been submitting personal travel expenses (hotels,
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 Allied’s major accounts had changed suppliers due to problems with Kevin. The purchasing agent
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. For several years, the company has been second in UK market share to industry leader Thames
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 products to restaurants. It competed with large distributors such as Sysco and had developed a very
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 achieve her own quota. What can be done by the sales manager to determine whether the slump in the
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 each is not making quota)?a. Representative 1: Achieved goals for sales calls, telephone calls, and
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 10 calls, get one sale. So to get two sales, make 20 calls. Is this the right approach? Why or why
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 Coombs traditionally leads the company in sales but also leads the company in problems. He has broken
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 and told you that sales expenses must be reduced by 20 percent for the next fiscal year. This has a
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 represent? How does this recognition of who is represented influence sales management?
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 grocer.• Selling Planter’s Peanuts to Southwest Airlines to be given to its customers.•
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 marketplace?
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 replace salespeople?
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 consumer electronic products to corporate customers and electronics retailers. iTeam, formed as an
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 the nonprofit community. While not “selling” a product or service, public service organizations
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 Technologies (MIT) sought her out to become one of five regional sales managers. MIT was a much larger
Changes in the technological environment have the potential to significantly affect the activities of the sales force. Automation can offer the sales force a competitive advantage—if the sales force is motivated to use computers and other technological methods that are part of automation. What
Describe the typical salesperson as illustrated in movies, books, and television shows. Why does that image exist as the stereotypical salesperson (be specific)? What role does ethics play in perpetuating the stereotype? Whose responsibility is it to see that a company’s code of ethics is carried
Charles Renner has been considering the implications of senior management’s new growth strategy. As head of sales for Integrity Building Supplies, he had been responsible for a sales force of more than 300 salespeople that sold building supplies to contractors and large developers around the
What does it mean to be “nimble” as a salesperson and as a sales organization? Identify one or more sales organizations that you believe are nimble.
Take a piece of paper and draw a line down the middle. Write “Pros” on the top left and “Cons” on the top right. Now, from your own perspective, come up with as many issues as you can on both sides regarding relationship selling as a career choice for you. Be sure to note why you list each
Joe Reeka is a senior sales representative for Power Flour, LLC, a supplier of flour to private-label brands in supermarkets as well as to bakeries across Europe. Power Flour has developed a new white flour with a nontraditional bleaching agent, which will allow for the baking of bread products
Creativity is important to sales success. What is creativity? Give a specific example of something or several things you have done that you think are especially creative. How might creativity be taught or trained to salespeople?
Pick any three of the selling activities presented in Exhibit 2.3 that you would most like to perform and then pick any three you would least like to perform. Explain your rationale for listing each as you did. EXHIBIT 2.3 Sales job factors and selected associated activities Factor I Relationship
Telecommuting and using a virtual office are major aspects of many professional sales positions. How do you feel about telecommuting and a virtual office in a job? What aspects of telecommuting and a virtual office are you most and least attracted to?
Review the 20 key success factors for relationship selling as listed in Exhibit 2.2. Which of these factors are currently your strongest points? Which need the most work? How do you plan to capitalize on the strengths and improve on the weaknesses? Success Factors in Selling Highest level of
What aspects of sales jobs do you believe provide a strong foundation for moving up in an organization?
The chapter outlines the roles different members of a buying center play within an organizational buying context. Think of an example of a purchase process you were involved in as an end-user consumer (i.e., not an organizational buyer). Can you come up with examples of people who played these same
The organizational buying center varies as a function of size of the company and product or service being purchased. How does size of the company influence the composition of the buying center? How might the composition of the buying center differ for each of the following products?a. Purchasing a
Explain the differences among a new-task purchase, modified rebuy, and straight rebuy. How is each situation likely to alter the way a salesperson approaches a client?
You are the sales manager for a leading services company in a large metropolitan area. Recently you were appointed to the board of directors of a major nonprofit community organization in your city. This brings you and the company a great deal of visibility. The chairman of the board has asked you
In the past, salespeople tended to have the edge over most buyers in terms of information. However, over the past 15 years access to timely and accurate information related to their business has changed how purchasing agents view their jobs. For one thing, they have been able to get a better handle
One of the great debates in CRM is who should have ownership of the process. In many firms, IT people seem to be the guardians of CRM’s secrets. This is because, as we have learned, a key facet of CRM is its information management capabilities. Who do you think should have ownership of CRM in a
Alice Klein wondered what she should do next as she hung up the phone. As vice president of sales for New World Manufacturing, she was responsible for more than 200 salespeople around the country. New World was a manufacturer of precision components for bicycles (gear shift mechanisms). Among the
You are a consultant for an international management strategy consulting firm. Your firm has been approached by Herr (Mr.) Hans Wursching, CEO of TransSprech, A.G., a newly formed cellular phone service and phone provider based in Stuttgart, Germany. TransSprech has a satellite GSM network with
Refer to Exhibit 3.4. Using the Miles and Snow typology, how might the marketing strategies and programs of a prospector SBU vary from those adopted by a defender SBU within the same company? Which of these options do you believe would be best:(a) A sales force that sells only for the prospector
The promotion mix (also known as the integrated marketing communications mix) consists of the various ways the firm communicates with its customers about its product offerings. These include personal selling, advertising, public relations and publicity, sales promotion (sales support of the
Consider the three basic relationship types described in the chapter: market exchanges (transactional), functional relationships, and strategic partnerships. For each, provide an example of a different sales organization that you believe does a good job with that particular relationship type. What
Based on what you have learned about strategic partnerships, what two organizations (either supplier–customer or supplier–supplier) can you identify that are not currently in a partnership but you believe would benefit from one? List the benefits to both parties of forging such an alliance.
Strategic partnerships often require direct peer-to-peer communication at the senior executive level between buying firm and selling firm. What are the advantages of having top corporate officers, CEOs in some cases, become directly involved in the selling process? What are the disadvantages? What
You are the Sales Manager for a paint manufacturer that sells to various global automobile manufacturers. Your key account manager for a large, global German automobile company has come to you with big news—she has learned from her company contacts that they are planning to introduce a
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