ASSIGNMENT MEMORANDUM. SUBJECT : SALES MANAGEMENT (SALM) SALES MANAGEMENT 1 (SAM101) (Updated)

Transcription

1 Page 1 of 5 ASSIGNMENT MEMORANDUM SUBJECT : SALES MANAGEMENT (SALM) SALES MANAGEMENT 1 (SAM101) (Updated) ASSIGNMENT : 2 ND SEMESTER 2011 Prescribed text: Johnston, M.W., and Marshall, G.W Relationship Selling and Sales Management. 3 rd edn. McGraw-Hill. The 2008, 2 nd edn may also be used. QUESTION 1 [25] This case prompts students to begin thinking about the organisational buying process and the various roles individuals within the company play in the purchase decision. Students should determine Larry s role in the process and how he should identify the responsibilities and influence of the various National employees. 1.1 Refer to table. 1.2 Refer to table. (10) (10) Name Sue Wilson Tom Roberts Vicki Sievers Position Plant Buying Center Role(s) Primary Needs Level of Influence Gatekeeper and Buyer Initiator and Decider Following company policy. Satisfying the needs of other buying center members. Equipment that will accomplish company objectives. Plant Engineer Influencer Quality equipment. Meeting the deadline of 6 months. Low to moderate depending on latitude allowed for negotiating. Low initially but high at the end as the final decision is made. Medium to high given her position as plant engineer and Tom s reliance on her expertise.

2 Page 2 of 5 Greg Runyon Vijay Sethi Jim Fisher Production V.P. of Hawarden, IA Influencer and, as production manager, he also represents the Users in the buying process. Influencer Influencer Efficient manufacturing process and keeping operating costs low. Ease of maintenance. Adherence to company purchasing policies. Overall corporate success and adherence to company policies. Medium to high given his position as production manager and Tom s reliance on his expertise. Low to moderate. Medium because of his past relationship and experience with suppliers for this type of equipment. The buying process National Agri-Products is using mirrors that provided in the chapter. Sue, Tom, Vicki, and Greg have just finished a meeting that can represent stage one of the process recognition of a problem or need. Vicki is now in the process of developing specifications for the equipment, which represents stage two of the process. Concurrently, Sue is working on stage three, searching for and qualifying potential suppliers. From this point, the process will move on to acquiring and analysing proposals (stage four), evaluation of those proposals and supplier selection (stage five), selection of an order routine (stage six), and finally, performance evaluation and feedback (stage seven). 1.3 The point at which it becomes beneficial for Larry to get involved is at stage two of the process. Larry does not want his company, New Products Steel, to get left out of the proposal process because the equipment specifications being developed by Vicki include aspects that New Products can not provide. Therefore, Larry needs to make sure that the equipment desired by National Agri-Products includes specifications that his company can supply. Larry already has an advantage in this process because of his previous work with the Hawarden, IA manufacturing facility. Consequently, Larry needs to duplicate this previous success with Sue and the other National Agri-Products employees at the Tennessee plant. (5) QUESTION 2 [20] Johnston & Marshall 2009: Chapter 2 The six critical drivers of change in relationship selling are: Building long-term relationships with customers Creating sales organisational structures that are more nimble and adaptable to the needs of different customer groups

3 Page 3 of 5 Gaining greater job ownership and commitment from salespeople Shifting sales management style from commanding to coaching Leveraging technology for sales success Evaluating salespersons performance more accurately. (6) Students answers will vary. Here is a sample answer: UPS has undergone many changes in recent years, and two of the drivers of change were the need to create sales organisational structures that are more nimble and adaptable to the needs of different customer groups, and leverage technology for sales success. (3) UPS does not just deliver packages anymore. It provides, among other things, comprehensive supply chain solutions to companies, which include logistics and distribution, transportation and freight (ground, sea, air, and rail), international trade management and customs brokerage. Like IBM, UPS s sales teams have had to adapt to these changing technologies and services in order to provide industry expertise in a multitude of areas such as retail, healthcare, high tech, consumer goods, manufacturing, and automotive. UPS also promotes itself as offering solutions, not products or services, to clients. Clearly, they are practicing consultative selling. (6) In addition, UPS has used technology to its advantage to add to its sales success. For example, they offer UPS Internet Shipping, which provides client organisations and their employees quick access to a web-based shipping application. The webapplication allows users to prepare domestic and international shipments using their UPS account number or credit card, determine rates, schedule a pickup, find drop-off locations, and track their shipments. (5) QUESTION 3 [10] Johnston & Marshall 2009: Chapter 3 Personal selling contributes to the overall marketing mix primarily through the promotion mix or marketing communications mix (1). The firm can use personal selling to communicate the value proposition to customers. However, salespeople can also contribute to the product itself by providing information back to marketing about customer product needs and wants, which can lead to adjustments in the product or even new products (2). Likewise, salespeople contribute to the place or distribution of the product and the price by providing information from the customer that is learned as part of their customer relationships (2). Marketing contributes to personal selling because each of the elements of the marketing mix product, place, price, and promotion plays a large part in forming and communicating the overall bundle of benefits that a customer ultimately will perceive as the value proposition (3). Thus, salespeople benefit from a wellexecuted marketing mix strategy. In addition, marketing contributes to successful relationship selling through systems, such as customer relationship management

4 Page 4 of 5 systems (CRM) that provide needed customer and market information for the selling process (2). QUESTION 4 [15] Johnston & Marshall 2009: Chapter 4 Although men and women work closely together in an environment of mutual respect and professional business behaviour, occasionally relationships become more intimate (2). Or sometimes one party makes inappropriate comments or actions (1). In any case, it is important to realise that there are serious implications, such as sexual harassment claims against the company, when crossing the line from professional to personal (3). Simple common sense can help avoid compromising situations (1): Always keep the conversation professional and on business topics, even when joking. (1) Don t put yourself in a situation that could be misinterpreted, such as dinner alone after business hours. (1) In the scenario described above, the head of sales should: Follow company guidelines and the law with respect to an employee making a sexual harassment complaint. (2) Investigate the facts of the situation. (1) Inform superiors and company attorneys. (1) Correct any improper behaviours, and educate the staff as to what constitutes harassment and how to avoid it (see points above), and maintain a climate where sexual harassment is not permitted. (2) QUESTION 5 [20] Johnston & Marshall 2009: Chapter 5 CRM provides information on prospects and customers that is readily available to anyone with a laptop computer. (1) It can help track and qualify leads to ensure that prospects are likely customers. (1) It can aid the research and planning necessary for the pre-approach and meeting the customer for the first time. (1) It allows the sales force to contribute its expertise and information on customers and relationships to the system. (1) It makes it easier to target specific customers by focusing on their needs. (1) It helps organisations compete for customers based on service, not price. (1) It reduces overspending on low-value clients and under spending on high-value ones. (1) It improves use of the customer channel, thus making the most of each contact with the customer. (1)

5 Page 5 of 5 Although a formal CRM system provides the technology to make data management easier, the CRM philosophy can still be implemented without a formal system in place (1). In fact, many firms are struggling with CRM initiatives because they have bought the sophisticated software but do not have the culture, structure, leadership, or internal technical expertise to make the initiative successful (2). CRM is not just a technology it is a way of approaching the customer side of your enterprise. If a firm doesn t have the software, salespeople can still do the research and recordkeeping necessary to achieve the goals of CRM (2). Specifically, without a CRM system: (any six of the following) Information could still be provided by computer, but it would be in a less manageable form, such as a database or spreadsheet. Salespeople could also keep their own records of information on clients, but it would be more difficult. (2) The information available could still be used to track and qualify leads, but there would be less integration of information from others in the firm who are in contact with customers. (2) Customer information would still be available to aid in research and planning, but the information may be less comprehensive than if a formal CRM system was in place. (2) It would be difficult for the sales force to contribute customer information to a central database. However, a company could implement a system of regular meetings and networking between salespeople in order to share customer information. (2) Salespeople could still target specific customers by focusing on their needs, but it would be more difficult to identify and track the customers and their needs. (2) The company could still place on emphasis on competing for customers based on service and not price by limiting price concessions, but encouraging additional customer service. (2) It would be more difficult to track which customers were of higher lifetime value than others, although salespeople must always be aware of the sales histories of a given client and which customers will generate the most sales. (2) PRESENTATION [10] ASSIGNMENT TOTAL: 100