SECTION V

END OF CHAPTER CASE ANALYSES

CASE 1-1 The Wilson Company: Is a Sales Manager's Job Really for Me? All students want to move into management. Yet, they really only think of the positive aspects (money) of rising up the corporate ladder. This case introduces them to the personal sacrifices that have to be made to be successful as a sales manager. Questions for Discussion: 1. Compare Joy's present job to what you think her previous job as a salesperson might have been. How are they similar? How are they different? Joy's position as regional sales director is similar to her previous job as salesperson in that both are people-oriented. In the job as salesperson, she would have met with clients, traveled, and dealt with many people face-toface. As a salesperson, however, she was in control of her own time. Her present job involves working through other people, and she must cope with many problems. The job is fragmented and involves communicating and negotiating. Thus, the managerial position is much broader in scope and contains many more day-to-day problems and interruptions. 2. What managerial skills are depicted in the case? important for Joy to possess? Why? Which skill is most

Human and conceptual skills are most important in Joy's present job-especially human skills. She works with subordinates, peers, and superiors-all requiring good human skills. 3. Why do you think Joy may be disenchanted with her present job? The disenchantment may result from unrealistic expectations about the sales director's job. Many people who have excellent technical skills and succeed at a technical job expect to continue performing the same tasks when they become managers. But as one moves up the management hierarchy, the various management functions become more important, and they require human and conceptual rather than technical skills. People who succeed as managers enjoy the opportunity to perform these functions and display these skills. For Joy, the greatest frustration seems to be her inability to control her own time and the need to work through other people, many of whom may disagree with what she is trying to accomplish. Thus, the key management issues become persistence and frequent negotiations. CASE 1-2

Nabisco: What They Didn't Teach Us in Sales Class This case was written to illustrate the day-to-day realities of becoming a salesperson. It is a very real case and one with which any seasoned salesperson will identify...especially "missionary" or "factory-rep" salespeople who call on retail accounts. The training program described in the case is typical of those used in similar industries such as tobacco, candy, over-the-counter drug products, frozen foods, baby food, canned goods, and paper products. Turnover among salespeople in these industries is higher than most other selling jobs, and the work itself is hard. Retailers see so many salespeople that they become tough buyers to deal with on a regular basis. Those that are trained in selling to retail accounts, assuming that they last through one or two years, become some of the best salespeople anywhere. It has been said that "salespeople who can sell to retail stores can sell to anyone." Rick Lester, the new salesperson in the case, is struggling to adjust to the real world. It is true that he had made an "A" in Sales 461 in college, but neither the textbook nor his professor discussed the feelings of low status and vulnerability that he now faces. He must overcome these feelings or get out of selling to retail accounts. Rick is the one who must adjust, not the system. It is true that Mr. Brown can be helpful in this situation, but it would not be in anyone's best interest to "talk him into staying on the job." Students typically offer two main groups of thought. Undergraduates most often suggest that Mr. Brown should not have said, "Buy a raincoat," and that Mr. Brown had not adequately prepared Rick Lester to perform his job. Many undergraduates agree that Rick should quit this job and find another one that is better. Graduate students, on the other hand, most often suggest that Mr. Brown had hired an "incompetent" salesperson. Some recommend that Rick's resignation be accepted and that he should be replaced with a better applicant. Both of these positions have good and weak reasoning behind them. It is true that Rick is young and inexperienced. But his feelings are real and they need to be addressed by Mr. Brown. In the end, however he must decide on whether he is willing to pay the price--that is, stick with the job until his skills and ability allow him to deal with the practical world of selling. Rick cannot be called "incompetent" at this point. He is the type of person that applies for similar selling jobs today--average or slightly above, and relatively inexperienced. The fact is that many selling jobs go unfilled around college campuses. The top students with strong academic credentials and work experience oftentimes do

not apply for selling positions. Any good sales manager will tell you that he or she has problems finding top people to recruit. Questions for Discussion: 1. Should Rick Lester "turn in his keys?" Probably not...at this point. All jobs are challenging at first. He needs to talk with Mr. Brown and others who sell to learn that all jobs have their bad points. He needs patience and determination to see him through the learning stage. To make a change at this time will be setting a pattern for the future.

CASE 2-1 Mississippi Leasing, Inc.: Is This Legal? In essence, the sales manager was seeking reciprocity. The contemplated deal is clearly unethical. In some cases, such a deal may be even unlawful. Companies aware of their legal and ethical responsibilities protect themselves and their employees from unnecessary exposure. For example, IBM marketing representatives are urged to follow the specific steps set forth in IBMs Business Conduct Guidelines--a policy-based code of ethics--which states: You may not do business with a supplier of goods or services. Reasonable? Yes. Important? Absolutely. The students must remember that their career and the future of their company depends on creating values that last. This objective depends on making decisions we can live with tomorrow, not on what we might get away with today. CASE 2-2 Illinois Office Machines, Inc.: How Should You Handle Competition? Dealing with unfair competition represents a double challenge. On one hand you want to get the order; on the other you want to stop the competitor's unfair practices. In this case your prospect is using every bit of information to play one competitor against the other to obtain the best deal. What do you do when the fight for business is getting dirty? Questions for Discussion: 1. Is there an ethical conflict? Would you try to reverse your prospect's decision? Why? First, take notes when you hear a customer's reports about unfair comments made by your competitor. Turn the information over to your sales manager or legal department. Your role is not to pass judgment on the case, but to collect the evidence. Second, do not "knock" the competition, but let the competition knock itself out. It's virtually impossible to build a lasting and profitable business by risking customer trust and confidence on every single deal. Should your customer find out that the operating cost figures were nothing but lies, company X would not be able to sell a single office machine to the medical center in the future. Reputable companies believe in the lasting power of honesty. Their policies and guidelines reinforce that message to every salesperson. For example, Xerox representatives are bound by ethical guidelines that state: " . . . make no disparaging statements, directly or by any kind of inference or innuendo, about competitors and their products and services--even if you believe them to be true." IBM tells its marketing reps: "It has long been the company's policy to provide customers the best possible products and services. Sell them on their merits, not by disparaging competitors,

their products or services." These guidelines are tough, but fair. They were drafted with the reputation. The absence of ethical guidelines will always create the illusion of safety, yet these illusions are short lived. Over 200 years ago, Thomas Paine wrote about the unethical actions of Great Britain: "A long habit of not thinking a thing wrong gives it the superficial appearance of being right." History proves that appearances are deceiving. It also proves that without ethical conduct, freedom is unsafe. CASE 3-1 Alabama Wholesalers, Inc.: Plans Dont Always Work! On the positive side, total sales did go over the quarters original plan. Unfortunately, expenses also were higher than anticipated. Why didnt the manager notice that the program was going over budget? Was there a lack of up-to-the-minute data? Did the manager get data on actual expenses versus budgeted expenses too late to take action? Did the staff adequately collect information, maintain current records, and analyze and report information back to the manager on a timely basis? Was there a cover-up? Whatever the cause, the manager will have to make sure it doesnt happen again. In this case, the manager must correct his own failure. These actions might prevent the sales group from going over budget again. The manager will have to make the rounds of the field offices and have private talks with each salesperson without sounding accusatory. Instead, the sales manager should be inquisitive (He/she is seeking information, not culprits). The sales manager has a very important lesson to learn and the teachers in the incident should be your salespeople. The manager should congratulate each salesperson for trying to make the program successful. In a mature and businesslike way, the manager must show each rep the final expense and sales data for his or her territory, and ask them to communicate their initial reactions and their continuing feelings about the programs details. What did they really think of the whole idea? The sales manager should listen closely and responsively, making certain not to squelch or argue with a single point that each of them makes. He or she is there to learn. Later, the manager should discuss the findings, conclusions, and recommendations about monitoring and controlling future budgets with his or her boss. CASE 4-1 Alaska Office Supplies: Everyone Is Part of the Sales Team Sales organizations often are so large that salespeople feel they are all alone out in the field. It is me against them--them being the home office. Salespeople are trained to take care of their customers. They know its much easier to keep a customer than get a new one. Tyrone feels he is taking care of business. The angry signals probably tell you its time to go out and work with Tyrone. Top-producers like Tyrone want to be recognized constantly for their accomplishments. They feel the entire organization should focus on them and their customers. Their attitude says, if someone cant help, then stay out of

their way. However, Tyrone knows something you do not. Maybe, the organization is providing poor service to other customers of Tyrone. You need to find out! CASE 4-2 Reynolds & Reynolds: Team Selling 1. How is the effectiveness of team selling demonstrated by the Reynolds team, and what are some of the disadvantages to this method in this particular case? Bob Sherman and Tim ONeill each exhibited classic personal selling skills: solution selling, translating potential benefits of the sale into P&L impact for the customer, performing a business analysis to ensure the solution fits the customer, good questioning and listening skills, etc. However, the sale was really driven by the teaming of Bob and Tim, and to a lesser degree by Chuck Wiltgen. The Reynolds case clearly illustrates the power of team selling. However, the teaming was largely informal (e.g., executed on an ad hoc basis and based on long-standing working relationships between sellers). Although no information is provided on selling costs, the Reynolds team selling model is higher cost (e.g., just consider the cost of Tim's time as a sales manager not to mention his travel costs). To truly succeed with team selling (or the more formal Account Management), sales effectiveness must increase faster than rising costs. Unfortunately, most sales organizations lack the metric to accurately track sales effectiveness. 2. How did the Reynolds team successfully execute the following critical roles in sales: client access, client education/persuasion, and fulfillment? Client access. Bob made the initial cold call, demonstrated his commitment and began to build trust with the customer, Carol Bemis. Client education/persuasion. Bob and Tim played well off one another; although persuasive, their overall tone was consultative. Fulfillment. Chuck was clearly positioned as the implementation guy, giving the customer confidence that Reynolds would actually deliver what was promised.
Source: David Fritz, "Anatomy of a Sale: The expert's view," Selling Power (January/February 1999): 84.

CASE 5-1 Florida Computer Sales: What Info Is Needed? Florida Computer Sales found it difficult to control new and used inventories, accounting records, taxes, customer profiles, sales forecasts, etc. The solution was a computer, but management would not tolerate printouts they could not believe. Two senior managers took responsibility for acquiring a computer and developing appropriate procedures. Implementation took time but was carefully done. Soon, monthly reports were ready within three days. The data identified high-profit items so that they could be quickly restocked. It also eliminated mass purchases of low-priced items that failed to sell well. Suddenly, salespeople had orderly orders,

and the records on available stock were accurate and item location was correct. They also could see what to pay for trade-in equipment. The computer system allowed everyone more control, causing managers to ask how they ever survived without it. CASE 6-1 Arizona Electrical, Inc.: Is the Information Important? Without anger, resentment, or threats, the manager should ask Joe to describe how he feels about the reports--asking him to share his ideas for correcting the situation. Maybe Joe doesnt believe the required reports contribute meaningfully. Maybe he feels they take him away from what he understands and does well: selling. The burden clearly is on the manager to improve communications with the entire sales group, so theyll know how each report fits into the operation. Just because the group has always done the reports doesnt mean everyone understands why they have to be done at all, much less done on time. The manager should make two promises: (1) to reevaluate all the reports and forms with an eye to reduction and simplification, and (2) not only will the manager read the reports, but he/she will provide feedback to both individuals and groups to verify that the information is actually put to good use. In addition, the manager should also help all sales reps understand the system, including how and why it works, so that everybody will work with the system instead of against it. CASE 6-2 Sally Malone's District: Development of an Account Segmentation Plan 1. Develop a table showing a salesperson's call cycle using the given call frequency patterns. This table shows how the call cycles for this example (territory) will be made up.

Call Cycles Account Classification A B C D E Number of calls Number of Cycle Accounts 1 10 20 45 12 10 1-10 1-10 1-15 1-3 1-2 40 Cycle 2 1-10 1-20 16-30 4-6 3-4 40 Cycle 3 1-10 1-10 31-45 7-9 5-6 40 Cycle 4 1-10 11-20 1-15 10-12 7-8 40 Cycle 5 1-10 1-10 16-30 1-3 9-10 40

Exhibit 1 Summary of Sales and Percentage by State

State Alabama Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana % 00.5 03.0 00.5 19.0 08.5 00.0 00.0 03.5 01.0 00.5 02.5 02.0 00.5 00.5 00.0 02.0 00.5 00.0 00.0 04.0 01.0 00.5 01.0 00.5 $ 47,500 285,000 47,500 1,805,000 807,500 0 0 332,500 95,000 47,500 237,500 190,000 47,500 47,500 0 190,000 47,500 0 0 380,000 95,000 47,500 95,000 47,500 State Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington W. Virginia Wisconsin Wyoming % 00.5 00.5 0.0 02.5 02.0 10.0 01.0 00.5 02.0 01.0 05.0 03.0 01.0 00.0 00.5 00.0 08.0 05.0 00.0 00.0 05.0 00.0 00.5 00.5 $ 47,500 47,500 0 237,500 190,000 950,000 95,000 47,500 190,000 95,000 475,000 285,000 95,000 0 47,500 0 760,000 475,000 0 0 475,000 0 47,500 47,500

Percentages rounded to nearest half percent. 2. Discuss why this should be done. It may be seen from this schedule that all A accounts are called on in every cycle, the first ten B accounts in cycles 1 and 3, and the second ten B accounts in cycles 2 and 4. Since the cycles are of two weeks' duration, these accounts will be called on every four weeks according to the call frequency shown. By definition, it takes one cycle to call on all A accounts (two weeks), two cycles for all B accounts (four weeks), three cycles for all C accounts (six weeks), four cycles for all D accounts (eight weeks), and five cycles for all E accounts (ten weeks).

CASE 7-1 Arkansas Fishing Company: Are Quotas Accurate? In this case, the manager must look at all of his options. The manager could 1) become a dictator telling Carl how it really is and to shape up or shut up, 2) organize the group to confront him, 3) report him to the boss, or 4) assume Carl isnt aware of the affect he has on other people. In order to lessen the risk of turning off Carls highly productive sales energy, option four would be the best one to try first. The manager should choose an appropriate time when working with Carl in his territory to discuss his behavior without anger or threats. The manager should explain to Carl that he perceives a serious conflict within the group, which is caused by his poor relationships with the others. Then, the manager should let him know that the entire sales group values his contributions to the groups performance and productivity. However, Carl and the others must resolve the conflicts between them and improve the interpersonal situation dramatically so that the group can continue to grow and develop as a team. Together, Carl and his manager can work to resolve the conflict so that nobody loses and nobody is embarrassed. The manager should tell Carl directly that he can learn to enhance his effectiveness. In addition, Carls boss can help him to understand that during all problemsolving discussions, each person must listen to the viewpoints of others and respect their rights to open expression. The manager should propose a personal, informal contract between Carl and himself. In the future, Carls manager should let him know, by tipping him off in private, when others feel he is coming across too strongly and upsetting the other members of the group. The manager must explain to Carl the importance of his quotas and the quotas for the rest of the group, as well as work toward getting Carl to agree upon supporting the groups objectives and quotas. If he has something positive to say, the manager should encourage him to say it. The manager should also ask him to not openly criticize sales plans during group meetings. He should discuss these concerns with his manager after the meeting. CASE 7-2 Harrell Manufacturing: Elimination of Sales Budgets and Quotas Question for Discussion: 1. Discuss the advantages and disadvantages of quotas in relation to Harrells views on not using quotas: This question is designed to facilitate a class discussion. Some key points to cover are: Sales quotas dry up the greatest source of profits: incremental sales. Sales quotas instill a corporate culture of just getting by. Elimination of sales quotas encourages salespeople to sell as much as possible. Sales quotas encourage mediocrity and penalize high performance. (Salespeople dont want to exceed their quotas by too much because it would be difficult to top in the following year).

CASE 8-1 An Unusual Case of Turnover: Connecticut Candy Wholesalers It is entirely possible that some of the fault lies with the manager. The manager apparently had confidence in James and left him to his own devices. However, most subordinates want to know where they stand. High achievers need and want recognition from the boss. Some will even go to strange, exaggerated lengths to get it. Is James a loner, or just lonely? He is dedicated to his work and his job. It is possible that the manager didnt recognize how dedicated James is to him as his boss. What harm would have resulted from the manager saying publicly how highly he regards James performance? Great good can come from such a public expression toward each individual who performs well. James and the manager have developed a new contract, and he will probably feel extramotivated. If youve read this far, let me know and Ill send the first three people who contact me ten dollars. The manager may even discover that James is capable of still greater achievement. What about the manager? Resolving this situation would probably significantly enhanced the managers own self-esteem and the esteem of his subordinates, peers, and superiors. CASE 8-2 R.J. Reynolds: Selecting the Best Sales Team This case is useful in the classroom because it shows how salespeople are typically recruited by many large firms. It also highlights a few of the difficulties that sales managers face in finding good sales representatives. The case brings out some differences (or idiosyncrasies) in recruiting philosophies held by sales managers. In addition, the case supports several concepts covered in the text material. The questions asked are fairly straightforward. Answers sought deal with common sense practices found in sales in the consumer goods industry. The only point that seems to bring out strong feelings and classroom debate in the matter of Joe followingor not followingthe suggestion to recruit at small colleges and universities. In this matter, the case authors come down on the side of following Mr. Wilsons advice. Joe Miller needs to win the confidence and support of his new Division Manager. His best course is to listen and learn, not to change his boss behavior or teach an old dog new tricks.

Questions for Discussion: 1. Discuss the strengths and weaknesses of the present staffing process traditionally used by the company. The company guidelines suggested in the case were: A. The use of the new assistant division manager to find several applicants that could be screened and referred to the division manager and regional sales manager for employment. B. Desirable applicant qualities of holding a college degree in marketing or business, a proven record of hard work, achievement-oriented, self-confident, and a positive outlook on life. C. Asking applicants only work-related questions. Apparently, the company gives each division sales manager a good deal of latitude in deciding where and how applicants will be located. All of the qualities sought appear to be desirable and coincide with ideas in the literature. A question should be raised about sending the new ADM on recruiting assignments without some on-the-job training. Students have many complaints about recruiters. ADM Miller needs to observe Mr. Wilson interviewing so that he can learn what to ask and what not to ask. There are many legal dangers present when a new manager interviews applicants. 2. Discuss Mr. Wilsons personal recruiting philosophy. Is it good or bad? Mr. Wilsons ideas about recruiting involve: A. Recruiting from colleges in rural areas. B. The importance of hard work, appreciation of money, character, good communication skills, motivation, and persistence. C. The initiative to contact the interviewer after the interview. D. A good mix of women and minorities. E. Married applicants from the local area. F. Women with children, and perhaps a husband that is locally employed. Several of Mr. Wilsons ideas are sound, based on the material included in the text and in the sales management literature. These ideas are the importance of hard work, appreciation of money, character, good communication skills, motivation, and persistence, and a good mix of women and minorities. Some of the other ideas that could be relevant, if based on a systematic analysis of the current successful sales force are recruiting from colleges in rural areas, married applicants from the local area, women with children, and perhaps a husband that is locally employed, and the initiative to contact the interviewer after the interview. However, it is possible that some of the qualities that Mr. Wilson feels are important are not bona fide occupational qualifications, and therefore, could be a problem if used as a basis for discrimination. Some of these preferred qualities raise legal questions.

3. What alternative sources of applicants are available? Colleges and universities are an excellent source of college-trained applicants. It would seem desirable, however, to use a mix of applicant sources. Some sales managers in the packaged goods industry have experienced problems in employing only college-trained individuals. Salespeople with degrees oftentimes expect higher pay and promotion opportunities. All salespeople cannot become managers. This can lead to disenchantment, high costs, and a higher turnover than desirable. Sometimes it is better to employ a mix of persons with experience, and college degrees rather than employing only persons with college degrees. A major factor is industry standards. There are many internal and external sources cited in the text. Leads from present successful employees should not be overlooked. Internships are also becoming more important and are being used by more and more firms. 4. Discuss the lesson that Joe learned while he was a teenager and how it might apply in the present situation. One of the most important lessons to be learned in this case deals with the posture that a new employee or one in a learning situation assumes. Joe Miller is in this position and would be wise to learn first how Mr. Wilson does things before thinking too much and making suggestions that are not wanted. If Joe supports and learns from Mr. Wilson, they will become friends. Mr. Wilsons recommendations to the company will chart the course of Joe Millers future. Everyone must prove himself or herself before becoming a team member. After a few months on the job and the establishment of more rapport, Joe can slowly start to become more creative. He can then show his ideas and make a few suggestions. When he becomes a DM, he can do things his way. 5. How would you go about accomplishing Joes current recruiting assignment? It would probably be good for Joe Miller to ask Mr. Wilson if he would consider going to two or three schools together. This would not show a weakness on Joes part. It would show common sense and a desire to learn new skills. More importantly, Joe is in no position to design a new recruiting plan. Doing things the way Mr. Wilson wants them to be done is good advice. Questioning the way things have been done over the years, and offering advice to the seasoned sales manager is no way to begin a training relationship. This case was written by Gerald Crawford, Ph.D., Professor of Marketing and Eminent Scholar School of Business, University of North Alabama; Keith Absher, Ph.D., Professor of MarketingSchool of Business, University of North Alabama; and Tom F. Griffin, Ph.D., Lowder-Weil Eminent ScholarInformation Systems/Decision Sciences Department, School of Business, Auburn University at Montgomery.

CASE 9-1 Delaware Firearms: Is This the Correct Person? The manager should be pretty sure of the problem. But does Andre fully recognize the seriousness of his shortcomings? Does he really understand how he has been confusing and misdirecting salespeople? Andre claims to understand, now that his supervisor has explained it. Okay then. At company expense, Andre should be enrolled in seminars and workshops on Successful Oral Communications and Writing to Be Understood. Because the problem isnt at all unusual, many organizations sponsor or support such programs. Also, Andre should fax memos to his supervisor before he sends them to his salespeople, so that his supervisor may critique them on their effectiveness. The supervisor should also attend his monthly sales meetings and participate in the presentation of important information. The supervisor should help make Andre successfulafter all, thats his job! It is too early to know if the supervisor selected the wrong person for the district managers job. Andres boss should give him the benefit of the doubt, plus all the help, support, and encouragement he can. CASE 9-2 Bob Johnson: Searching for a Sales Job This case is especially interesting to college seniors because it addresses a topic that almost all of them are presently concerned withgetting a good job. This case creates interest and debate about an individuals goals, levels of security and opportunities desired by different graduates. And last, the case provides insight into the practical difficulties of getting a job and adjusting to the day-to-day problems that field salespeople face. Questions for Discussion: 1. What should be the primary basis for job selection? There is no best answer to this question. Because of differing needs, students will typically seek one or more of the following goals: a) job security, b) salary security, c) low rejection, d) high earnings potential, e) opportunities for advancement, or f) training provided. The key indicator for each student is the order in which goals are ranked as more important. Most undergraduate students will select job security or salary security because they are unsure of their ability to make a decent living in the selling field. They lack confidence and this is normal. Only after getting selling experience do most young people realize that selling can be learned and that most of them can make a very good living as a salesperson. Students that rank high earnings potential and opportunities for advancement as most important are more self-assured and confident in their own abilities. They will usually succeed if they can take the abuse that most salespeople are exposed to each day.

Students that rank training opportunities as most important are more farsighted and likely to succeed in the long run. This is what Bob Johnsons father had in mind when he gave his son advice about selecting a job. Firms invest tremendous sums of money in training young people. This should be a major factor in the selection of one job over another. 2. Discuss the negative aspects of each job. The best way to examine this topic is to break down the typical concerns of students and to rate each company on the basis of each variable for each job. An example of this process is shown in the following matrix. This system provides an excellent basis for discussion. Job Security Salary Security Rejection Earnings Potential Advancement Opportunities Training Program Farmers B C D A B B Nabisco A A C B A B Muro C B B A A A

(Where A=excellent, B=good, C=fair, D=poor). Farmers Insurance has a good training program and offers the potential or high commission earnings over time. Job security with the firm and industry appears favorable. Constant rejection in the insurance industry is a problem for many young people, however. Nabisco is a blue chip firm that offers job and earnings security. It has a high market share and a bright future. The training program is also good and has excellent opportunities for personal growth because of its size. Muro is an excellent smaller company offering high pay and good training in an industry that is undergoing change at the present time. 3. Which training program is the best? Why? All three positions are with medium-sized to large firms and involve good training programs. Nabisco uses a good deal of on-the-job training with division or assistant division managers while Farmers invests more in video and self-paced reading targeted at overcoming rejection. Muro appears to invest more resources into sophisticated training at a centralized location. Their training gets into technical aspects of their products and involves role-playing exercises. Muro appears to invest more money into each sales representative. Overall this program appears to be better. Although turnover figures are not mentioned, it is likely that Muro is more selective in hiring sales representatives and probably has lower turnover rates. 4. Which job would be most interesting for you? The answer to this question depends entirely on students' interests, their backgrounds and the confidence they have in their ability to sell. In classroom testing, Nabisco usually is considered

to be more popular because it seems to provide more security. Muro is popular because of the high pay and low expected rejection. 5. What job do you think Bob Johnson will take, if offered? Bob comes from a family of salespeople and likely has confidence that selling is a viable occupation with great opportunity to earn a very good living. He also has high grades and good references from an outstanding university (Vanderbilt). He is no average student. Because of his analytical mind and his rational approach to finding a job, he will probably select the Muro job if it is offered to him. Furthermore, he understands the importance of good training, like that offered by Muro. This case was written by Gerald Crawford, Ph.D., Professor of Marketing and Eminent Scholar, School of Business, University of North Alabama. CASE 9-3 Martin, Inc.: The First Woman Is Hired This case is both interesting to teach and discuss, and quite realistic in terms of problems that sales managers face while trying to hire and train more women. The case was intentionally developed to lead students to "jump to conclusions" about the pending relationship between the new salesperson and her sales manager. At first reading, many undergraduate students may offer the opinion that Nancy is coming on strong and Mike is probably going to "take the bait." After a second reading, however, it should be apparent that Nancy is not coming on strong. She is a professional person and is handling things the same way that any sales trainee would likely handle them. Mike, by the same token, is having some adjustment problems, but has not done anything or thought anything out of the ordinary. Question for Discussion: 1. How would you describe the situation? What actions would you take? Mike would be very wise not to become intimately involved with Nancy. Their involvement has been in the minds of the reader thus far. This would be a good point for the professor to discuss the dangers of sexual involvement with employees, customers, or anyone related to the business. A manager that does get involved this way loses power to control his managerial environment. Persons that one has been involved with invariably use the past to get special treatment or favors. The other employees will suspect what is going on and they will resent it. This is a sure way to fail. In addition, an affair with someone in the business environment is a bad mark on a manager's personnel record. It can destroy a career. This would also be a good time to mention three other

problem areas that are a sure-fire road to failure: (1) drinking or drug use on company time, (2) getting company money mixed in with personal money, and (3) falsification of company reports. Mike should try to get things straightened out at home. Sometimes husbands and wives do not like their spouse to work too closely with a member of the opposite sex. This has been a problem with police, firefighters, and other career fields. Mike would be wise when he gets home to assure his wife that things certainly weren't very exciting. He might even be smart to make things sound more boring than they really were. In either case, Mike should be patient but let his wife know that he does not have a choice in the matter--he must hire and work with women. His job depends on it. He must assure her that he will do the right thing. She should accept Mike's word in the long run if he uses good judgment. Of course, this situation works both ways. Regardless of whether the spouse is a man or woman or whether the sales manager is a man or woman, it is becoming necessary to work together without sexual overtones. Mike would be wise to think of Nancy as another salesperson and not a "good-looking female." The office problem should be watched. It is not uncommon for men or women to quietly resent an accomplished newcomer. Of course, Nancy can earn their respect if she plays her cards right. If she is unable to do this in a reasonable amount of time, it may be necessary for Mike to discuss the situation with the secretaries. Some students may bring up the company pressure to hire more women, especially when they are not as qualified as male applicants. Affirmative action programs have proven to be quite controversial in sales management. These programs are designed to insure that racial minorities and women are not discriminated against in organizations. Prior to 1964, most employers were free to hire persons or groups of persons based on their own criteria. Title VII of the Civil Rights Act of 1964 made it unlawful for an employer "to fail to refuse to hire or to discharge any individual or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin." This act was amended in 1972 by The Equal Employment Opportunity Act. It regulated hiring practices of employees having 15 or more persons and granted the Equal Opportunity Commission enforcement powers. The commission was empowered to bring civil actions in federal courts against employers. The EEOC can require firms to develop an Affirmative Action Program which generally forces an employer to "identify and analyze problem areas in minority employment and to provide in detail for specific steps to guarantee equal opportunities keyed to the problems and needs of members of minority groups, including the development of specific goals and time tables for the prompt achievement of full and equal employment." (See Sec. 703, Title VII, Civil Rights Act of 1964, and U.S. Equal Opportunity Commission, Affirmative Action and Equal Opportunity--A Guidebook for Employers, Vol. II: Washington, DC; Equal Employment Opportunity Commission, 1973, pp. 40-44.) Most large firms have developed an Affirmative Action Program. It is likely that Martin, Inc., is in the process of achieving this end and has determined that more women must be employed.

This is the justification for hiring Nancy who was qualified, but not as qualified as two male applicants. Related to the above problem is the question of what can be asked and should not be asked of the applicant during the interview. In regard to Nancy's voluntary indication that she "was not interested in marriage and children for several years," it is not acceptable to ask questions which are dependent on the sex of the applicant. The only exception is where a "bona fide occupational qualification is reasonably necessary to the normal operation, motif, culture, or atmosphere of that particular business or enterprise." (See EEOC Compliance Manual: Washington, DC; Bureau of National Affairs, October 28, 1975.) CASE 10-1 Georgia Auto Supply: Does Training Work? It should not be the managers style to damage the pride or self-esteem of his or her people. So, the manager should use his selling skills on Brad. He should have a private conversation with him. Although the manager often holds private conversations with Brad, this one should be a bit different. Let him do most of the talking. The manager should guide the dialogue by asking him to review several accounts, some of which he acquired and developed, some of which he lost or dropped. The manager should be careful not to act like a parent talking to a child. The manager should be an active listenerone who gives undivided attention to the speaker and does not interrupt with negative commentsBrad will appreciate the time that the manager has given to him. He will probably talk openly about the lost accounts. Then the manager will have the chance to probe deeply into the reasons why they got away. They can then discuss what Brad might do to prevent more failures and increase his hit or close rate. They will have a two-way conversation, each person transmitting and receiving ideas. This discussion will take time, but Brad is worth it. The manager should get Brad to discuss his sales training programswhat he likes and dislikes about them. He should find out if Brad feels the sales skills he is being taught are worthwhile to him. The manager should encourage him to give training a chance, and try it on his next 10 sales calls. The manager should tell Brad to let him know how it works. He should continue to work with Brad to improve his closings. Above all, the manager should keep an open mindmaybe its the training that needs to be changed! CASE 10-2 Toys and More: Development of a Sales Training Program Toys and More is a relatively young company (9 years old) in the consumer products industry. Specifically, they sell small toys and novelty items to variety stores and small food retail convenience stores. Their sales force size has increased from two salesmen to forty-five salesmen. There has been no sales training during this period. James New was given the responsibility of developing sales training programs for the National and Regional meeting to be

held in January and March respectively. Also, some type of organizational arrangement should be developed to facilitate their programs due to Toys and More's rapid growth. The primary learning objective is the formulation of effective training programs including site selection, cost analysis, and basic programming. Important questions to answer are: 1. What type of training program will be most beneficial to the current sales force? 2. What type of organizational alignment should be used by Toys and More to facilitate control of the training? 3. Where will the national and regional meetings be held? 4. What will the costs of these meetings be? 5. What should the major objective of the national meeting be? The regional meetings? NOTE: Have students see the special February issue of Sales and Marketing Management of selling cost. Analysis of Alternatives 1. Conduct highly unstructured programs that involve discussion and a minimum amount of lecturing. A. Advantages 1. It would allow the salespeople and their spouses to have a good time. 2. The pressures of selling could be forgotten and better sales force camaraderie could be developed. B. Disadvantages 1. Why use this type of meeting when it has not been used before and your company is continuing to grow? You might just bore the salespeople. 2. You might get little benefit from it in relation to the costs incurred. 2. Conduct a highly specialized and structured sales training program using guest lecturers and new training techniques. A. Advantages 1. You would be giving your sales force every chance to become more efficient. B. Disadvantages 1. You stand the chance of boring your older salespeople who think they know enough about selling. 2. Outside lecturers must be very dynamic and amusing to be effective. 3. Use some combination of structured and unstructured sales meeting. A. Advantages 1. This will allow the spouses to also enjoy a good time, which is very important. 2. Learning might be better accomplished when interspersed with other activities. B. Disadvantages 1. A lot more planning and coordination is required to make this successful.

Assumptions: 1. 2. 3. 4. 5. 6. Ralph New will allow the spouses to come only to the national meeting. The majority of salespeople are older and more experienced. Regional sales offices are present in Dallas, Texas and Atlanta, Georgia. Toys and More needs a better organizational structure. An outside training specialist should be hired for the regional meetings. The regional meetings will be successive weekends in March so Ralph New and the training specialist can attend both meetings.

Questions for Discussion: 1. With you assuming the role of James New and using the "Model of Sales Training" in the chapter, develop a sales training program for the following: A. The national meeting. B. The regional meeting. C. Model of Sales Training. 1. Planning Phase. a. Organizational Analysis. i. Their objective is to continue their controlled sales expansion (10% a year). ii. An effective training program can help accomplish this objective. b. Operational Analysis. i. Development of a "job description" is essential to the initial phase of training; hiring the right people. ii. "Job specifications" (specific qualifications) can then be determined for the given jobs. c. Salesperson Analysis. i. The training needs of the sales force are now determined. ii. These needs can be obtained from working with the salespeople and questioning them on how the company can help them reach their personal and job goals. 2. Organizing and Staffing Phase Determination of the training media, methods, materials, and locations needs to be dealt with. The national meeting will be in January, and the regional meetings on March 19 (Southwest Region) and March 26 (Southern Region). a. Sales Training Methods. i. The training objectives will be: (a) to develop a sense of sales force unity, (b) to better educate the sales force, and (c) to aid in organizational coordination. ii. The national meeting will not use an experienced trainer while the regional meetings will. iii. It must be recognized that the training needs of experienced and new salespeople will be different and their training should take this into account.

iv. The standard training materials will be used to present information on the company, competitors and their products, and special selling techniques. This will primarily take place at regional meetings. v. The costs per trainee can be developed based upon current data founded in Sales and Marketing Management magazine. vi. In addition to the classroom training at the regional meetings, on-the-job training will continue to be encouraged. b. Where Does the Training Take Place? i. The company will use a variation of centralized training. Due to their geographic dispersion, the expense of a strict centralized training program has been ruled out. Instead, the training will be centralized regionally (on consecutive weeks) and thus allowing the training specialist and Mr. New to attend both programs. ii. The meeting would be held in their market. For example, the national meeting will be in New Orleans, Louisiana, and the regional meetings in Dallas, Texas and Atlanta, Georgia. c. When Does the Training Take Place? i. The national sales meeting will be held each January. ii. The regional sales meetings will only be held in low sales periods or if a very serious problem arises. 3. Directing and Controlling Phases. a. Top management is providing the direction for this program in hopes of adding to the sales force's effectiveness and profitability. Their support is vital to the program's success. b. The attainment of the before-mentioned objectives will be measured by the control procedure. After the programs have been initiated, a look at the sales results might also provide a crude determination of their success. Summaries of the National and Regional Meetings: 1. National Meeting: A. The first day's activities included a speech by Ralph New, introduction of the new organizational structure, lunch (3 hours to allow husbands and wives to eat where they wish), a brief speech by James New, then Henry Haynes, and guest speaker. A cocktail party and dinner followed in the evening. B. The second day included a morning meeting for the salespeople only, lunch, and an afternoon adjournment. C. The actual schedule of events was much the same as above except there was more emphasis on training. 2. Regional Meetings: A. The meeting began on Friday p.m. with the regional sales managers reviewing sales statistics and a question and answer session with the sales trainer. Dinner and cocktails followed that night. B. The next morning, the sales trainer began his training with special emphasis on refresher training. After lunch, a discussion concerning sales situations was held.

C. The actual regional meeting was conducted by James and Ralph New. They were unsuccessful in their training attempt. Toys and More hopes to both improve organizational coordination and sales force efficiency through their sales meetings and training programs. First, a sense of camaraderie will be developed at the national meeting, then the salespeople will become better educated at the regional meetings. CASE 10-3 The Telecommunications Corporation: Training's Impact on Performance The Telecommunications Corporation (TC), a leading manufacturer of telecommunications equipment, produces and markets the sophisticated machinery. Telecommunications allows for the transmittal of information to various geographic locations by computer via normal telephone channels. Information can be transmitted and received in a matter of seconds. The company held a strong market position. Recently, however, its share has been declining while competitors have maintained or experienced a share increase. A task force was created and assigned the responsibility to find the causes of the decline. The task force's findings indicated that individual accounts were meeting corporate goals. The problem existed in a decline in the major accounts in which integrated units were sold. Numerous factors attributing to this decline were discovered. The primary reason was inadequate sales training to effectively sell the integrated system. Various other problems were found that augmented the decline in major accounts. Included among these problems were present interviewers, selling strategy, unrealistic sales quotas, and poorly designed sales territories. Specific objectives are: 1. The "primary" objective of the case is to emphasize the importance of an effective sales training program. It reveals the effects of an inadequate training program without specific, detailed objectives and definite purpose and the resulting problems that may arise. It emphasizes that a training program plays an integral role in obtaining not only marketing objectives but corporate goals as well. 2. The case reveals that a properly constructed and implemented sales training program can help remedy or eliminate sales force management problem areas such as low product sales, poor morale, and turnover. TC must determine how to make its existing sales force more efficient in selling the integrated system so as to increase major account sales while maintaining the individual account sales level in hopes of strengthening its market position. TC should analyze and evaluate other problems in order to make sound decisions on the following: 1. 2. 3. 4. The replacement of present interviewers. Properly determined sales quotas. Redesigning sales territories. Ways to decrease turnover.

5. Selling strategy revision. 6. Change in compensation of guide a balanced selling effort. Alternatives: 1. Increase the selling effort directed toward major accounts and less toward individual accounts. 2. Split the existing sales force into two distinct entities, one to cover the individual accounts and the other to cover major accounts. Those covering major accounts will go through a centralized training program designed to meet both sales force executive objectives and corporate expectations concerning the major accounts as well. NOTE: The case does not give enough information to determine of the sales force should be split, such as budget, number of salespeople, number of customers and major customers. However, key account salespeople is an alternative.

Assumptions: 1. TC's integrated system is competitive with other integrated systems. This competitiveness includes product functions and features, efficiency and price. (The case states competitive products have caught up to TC.) 2. The present sales force has some degree of telecommunications knowledge and has the ability to sell telecommunications equipment. In addition to this, the existing sales force is capable of learning new technical knowledge and skills. 3. The task force findings are correct. NOTE: Either alternative can be correct. The following information supports splitting the sales force. It can also be used to support alternative 1.

TC's top sales executives should divide the existing sales force into two separate divisions. One will service the individual accounts and the other two will service the major accounts. Those representatives handling the major accounts will undergo a centralized training program designed specifically for integrated systems selling. The size of each group should be determined carefully as to adequately service each respective account. Selection of those who will receive the centralized training program will be dependent upon two factors. The first is the number of years of experience in selling telecommunications products. Those having more experience will be considered better qualified. The second criteria is the past selling record of integrated systems for each particular sales representative. The representatives not chosen will represent those individual accounts left vacant by the revision, in addition to servicing their own existing accounts. Both the major account representatives and the individual account representatives will report to their respective field managers.

All major account representatives should be sent to a centralized training program. There are distinct advantages for the use of a centralized sales training program for major account representatives. These advantages include: 1. 2. 3. 4. Instruction can be more professional, complete, and concentrated. Teaching aids are better organized. Product information is more accurate and understandable. The representatives are able to meet the executives they work with.

The major disadvantage to a centralized program is cost. However, "failure to provide good training can have a direct negative impact on the profit and loss statement well in excess of the short-term positive effect of the money saved on training." What TC's existing sales training program lacks are detailed specific objectives. In planning the centralized training program, the initial step is to determine what the program is trying to accomplish. Objectives must provide the results that are in line with TC's corporate goal of increased major account sales. There are three objectives that the newly established centralized program must accomplish for TC. 1. The first is to provide extensive product knowledge about the integrated systems and to learn its various uses. 2. Second, to teach the salespeople adequate knowledge about TC's competitor's product lines. The advantage of this instruction is that a sales representative can design a presentation emphasizing the advantages of his product over its competitors. 3. Last, instruction is needed in the proper techniques of selling integrated systems. TC sales executives must also realize that selling involves more than just getting an order. Selling also involves the sales representative doing numerous customer services before and after the sale. A "major account" sales presentation should be developed which includes a demonstration to the customer using company-collected information on customer cost advantages using the TC system. TC must decide who shall provide the instruction that can best meet the stated objectives. The three main sources of sales trainers are: (1) line executives, (2) staff personnel, and (3) outside specialists. For TC's purposes, the use of senior sales representatives who have proven themselves in integrated system selling should be used. Typically, not only do senior sales representatives have knowledge of their product as well as their competitors, but also possess the necessary selling skills required for integrated systems. Other problems: Recruiting. A variety of other problems exist within TC's present sales force. For one, the interviewers, who also do the hiring, are not experienced in hiring telecommunications personnel. To remedy this situation, initial screening of applicants should be done by TC's field managers. The final hiring decision should be made by sales executives. The newly hired applicant will initially undergo decentralized training for individual accounts only, conducted by

their field manager. An advantage of using a field manager as a trainer is that he can train an individual to meet the specific needs of present and potential accounts within his respective territory. Eventually, after the sales representative meets a specific quota of individual unit sales, he then can receive centralized training. Training Organization. Potential and current customers should be analyzed to reevaluate present territories. In doing so, at least three factors must be considered when designing a territory: (1) workload, (2) potential, and (3) current sales. Workload should be given major emphasis in establishing major account territories. Integrated systems characteristically involve a greater personal selling effort and more time than do individual account sales. Accounts need to be segmented into major accounts, then large, medium, and small accounts. Quotas. Realistic quotas that meet corporate goals can be determined for each territory. Quotas can be determined by previous sales data, careful territory analysis, and other objective data. In the establishment of major account quotas, consideration should be given as to the amount of time needed to sell an integrated system. Compensation. A change is needed in compensation to reach a proper balance on: A. Short-term sales (presenting emphasizing). B. New customer sales (presenting emphasizing). C. Existing customer sales (not presenting doing). For example, could increase commission rates and/or develop sales contests. The "major account" salespeople should be rewarded for leasing sales. At first, they might be placed on a salary plus commission. Thus, customers could have a "trial run" before making a large dollar commitment. Commissions might be paid as ling as customer leases equipment, rather than a "one-time" sales commission. Proper recruiting, and redesigning sales territories, quotas, and compensation should reduce turnover. It should also increase performance. Training can be used to teach salespeople how to sell major accounts and integrated systems, plus educate them on their competition. CASE 11-1 Hawaiian Novelties: Did You Make the Correct Choice? Sales trainers also need trainingjust as salespeople do. Sales trainers should be experts on all topics in the textbook. Too often, a person is brought into a new job on the basis of outstanding performance in a previous one. Certainly youve heard veteran sales or marketing managers comment sadly, Ive taken many good salespeople out of the field and made lousy managers out of them! Whats the problem here? Carole seems a bit lost--mystified by the process of organizing sales training programs. She appears unable to steer in such a way as to assure that she will meet the training goals. It is her managers job to show her how to get on the right track.

Call it management by objectives, or results-oriented time management, or self-discipline. The vital thing is that Carole needs help, and her manager is well equipped to provide specific and constructive help. It is her bosss job to make her successful, beginning with a discussion of time management. Sales personnel must be experts on their products and proficient in selling skills. Sales knowledge and sales skills are the main topics of all training programs. For specific topics to cover, she should ask the sales managers and salespeople. She should spend two or three days of each week working in the field with salespeople and find out whats working and whats not. When she finds people doing things well, she should have them conduct training sessions. Training is expensive. Its benefits must outweigh its costs. CASE 11-2 Taster's Club: Development of a Sales Presentation Dick Shoemaker, a salesperson for Taster's Club Coffee, has to decide what information he has available to help him make a sales presentation to a major account. The basic case objective is to have the student analyze both account information and product information in preparing an effective sales presentation. Questions for Discussion: 1. To whom should Dick make his presentation? Dick should make the sales presentation to not only John Barringer, the person in charge of sales promotion, but also to Fred Acosta, the coffee buyer, and Doug Hendricks, the merchandising manager. It would be best if Dick could get all three together at one time, but if that is impossible, then a sales presentation may have to be made to each one. John is important because he is the primary decision-maker on what promotions should be run, but Fred and Doug are friends of Dick and they are certainly influences on the decision that John would make. 2. Develop a sales presentation outline showing the key facts about both the account and the product that would be useful in making the sale. A. Account Information 1. Sales of Taster's Club up 14%, while overall volume was only up 7%. 2. Use of displays in stores. a. Account has not used Taster's Club display in over a year. b. Display is supplied at no cost to retailer. c. Display only uses 2.4 square feet. 1. Should do sales volume of $239.40 per sq. ft. in a week. 2. Should do profit of $31.20 per sq. ft. in a week. 3. Display in each store should increase sales of ground coffee to 600 cases for the week of the promotion. d. Displays have generated up to a 64% increase versus average volume of coffee. e. Inventory turnover for the display should only be 1 week.

B. Product Information. 1. Coffee is purchased on 30-day terms instead of 10-day for most other items. 2. 50 coupon is coming out in Sunday paper, display would back it up. CASE 12-1 Idaho Bakery Supplies: How Can You Motivate This Salesperson? We all have a need for affiliation and identification. Its especially strong among salespeople, whose work in the field affords relatively little contact with their peers or superiors in the home office. How do field salespeople satisfy this need? Some do it by concentrating on selling during the day and doing their thing at night, on weekends, or holidays. They join business or professional clubs and associations. They might participate in other societal activities, such as fund raising for nonprofit associations or joining hobby clubs. There they may find people they like and who like them. In these situations, salespeople meet with others under friendly, comfortable, risk-free circumstances. Geographical separation can make it difficult for the field salesperson to affiliate or identify with the company or boss. Thats quite natural. But some cope with the situation more successfully than others do. In the example we are discussing, Jackie has created a small circle, a private society. Personal need is overriding the companys need and the needs of the manager. Now that the manager has recognized the symptoms, analyzed the problem, and confirmed his/her conclusions through personal observation, its time to discuss with Jackie the need to foster better relationships with other accounts in an effort in to improve sales volume. The best time to attempt such a discussion would generally be during a trip into the field. Jackies manager should express admiration for her fine relationships with her three regulars, from which the company benefits. The manager should suggest applying the same social skills to other accounts. This part of the discussion clearly defines the problem and the objective. Jackies boss must show her how these suggestions will help her improve her performance and generate more sales. CASE 12-2 Teletronic Electronics: The First Woman is Hired Teletronic Electronics (TE) is a distributor of several thousand small electronic parts. Chris White, a middle-aged man who has been with the company for 22 years, is New Orleans' district sales manager currently responsible for nine salesmen. Recently, TE has hired a young, intelligent, personable, highly-motivated woman with the experience in the electronic distribution field. Her sales trainers at TE felt she has great potential with the company. TE corporate management is interested in moving women into the organization and up to management positions. She is assigned to Chris' region and immediately conflicts arise.

Chris is dissatisfied with her unconventional selling methods and threatened by her successes. He seeks to control and thus stifle her creativity by demanding she follow a more conventional pattern. He has limited her expenses, tried to discourage her from taking evening courses, and rejected her suggestions for company improvement. Her actions have been aimed at personal and organizational success and not purposely antagonistic toward Chris. The tensions climax when the regional sales manager calls to congratulate Judy on one of her suggestions that Chris had not even bothered to read. In his anger, he calls for a meeting with Judy. How should he, versus how will he, handle the sales meeting? Specific objectives are: 1. Illustrate a generation gap between the older manager and younger saleswoman. 2. To suggest effective tools for the traditional sales managers in handling creative, aggressive new sales representatives. 3. Allow for discussion on management and leadership styles. Leadership styles are discussed in Chapter 15. Several decisions to be made are: 1. 2. 3. 4. 5. 6. 7. To offer Judy an ultimatum; conform to Chris' standards or leave TE. Whether or not to re-educate Chris in more democratic, flexible management styles. Define standard expenses that TE will pay. To develop a system for dealing with salespersons' suggestions. To develop a set of guidelines explicitly stating acceptable and unacceptable selling methods. How and if to deal with Judy's incident with the intoxicated buyer. To establish a supportive company policy regarding continued education in related business fields and possible financial funding.

Alternatives: 1. To deal with the conflict by openly discussing and evaluating the situation and reaching a mutually acceptable agreement whenever possible. A. Advantages 1. Judy will have greater respect for Chris. 2. Chris will gain a better understanding of the personal motivation of the "new breed" of salespeople that will aid him on other interactions. 3. Chris will no longer feel the need to stifle the achievement-orientation of his young sales representatives. 4. Judy will gain a greater insight into Chris' motivation and try to modify her selling methods without 100% conformity. 5. They can develop a set of guidelines, mutually acceptable, that allow "certain liberties" while still adhering to a set of code of behaviors. 6. Chris could link Judy's promotion into management with a certain degree of conformity, thus motivating Judy to impose her own controls, an MBO approach. B. Disadvantages 1. In view of Chris' personality, relinquishing the required degree of control may be impossible.

2. The two may be too committed to their prospective course of action and so inflexible that such an interaction would not only be useless but created further ill will. 2. Chris could offer Judy an ultimatum where she either conforms to his standard or leaves the organization. A. Advantages 1. This would be the easiest course of action and most personally satisfying for Chris. 2. Chris would maintain a highly controlled and traditional sales force. 3. Judy will very definitely learn what she can and cannot do as a salesperson under Chris. B. Disadvantages 1. He will create greater ill will between Judy and himself. 2. If she stays and conforms, her productivity may decrease and her morale will be greatly lowered. 3. The company will lose out on Judy's insightful, helpful suggestions as Chris will have stifled her creativity. 4. Judy may be forced to quit and TE will lose a very productive saleswoman. 3. Chris can vent his anger but offer no ultimatum and let the situation continue as is. A. Advantages 1. He does not force Judy into quitting. 2. He vents some anger and frustration which may make him somewhat better able to deal with the situation. 3. Judy may find ways to work around Chris so that her style is not impeded. B. Disadvantages 1. The situation is not likely to change and Chris is no closer to a means of resolving the conflict. 2. Judy may become frustrated and quit. Assumptions That Can Be Made: 1. Judy's actions and attitudes are not purposely antagonistic to Chris. 2. Judy has not employed unethical or illegal sales methods to achieve such a high sales volume. 3. TE upper management encourages innovative and creative sales practices. 4. Upper management does not judge Chris by the conservativeness of his sales force. 5. This problem is indicative of Chris' management style and work ethic and is not merely an isolated event. 6. The fact that Judy is a woman is much less of an issue than her being a young, aggressive and an untraditional sales representative. Questions for Discussion: 1. Why is Chris behaving this way? Chris may be described as a very conservative, extremely traditional, bureaucratic, unimaginative and inflexible sales manager. He has evolved a set way of selling and managing over his 22

years of employment at TE and feels that he knows best how to handle work situations. He is unreceptive to new ideas and unconventional sales representatives and/or sales methods. Chris is acting according to his own set of values and his personal work ethic. He sees Judy's actions as a threat to the company's image and direct threat to him. Instead of encouraging Judy and using her success as an example of his skill as a manager, he is stifling her creativity so that he "doesn't look bad" being upstaged by a newcomer and/or female. Another problem is that he just does not understand and/or know how to deal with the "new breed" of salespeople. He can neither relate to nor control the creative, informal sales methods used and, as a result, is frustrated and feels out of place, especially when they are so successful. His reaction in anger and emotion is typical of this frustration at suddenly losing some of his control. 2. Why is Judy behaving this way? Judy could not conform to Chris' standards and still be the successful representative that she is; their styles are too diverse. Judy is acting in accordance with her personal set of values and work ethic, using her judgment as to the most effective means of making a sale and for personal success. She is highly creative, intelligent, and motivated. If she sees an opportunity for improvement and/or sales success, then she takes advantage of it. Judy is an example of the competent "new breed" of sales representative that sends a cold chill through Chris' spine. Her actions are not out of spite or retribution as motivates many of Chris' actions, but rather out of a sense of "this is the logical way to go." When Judy's plan for realigning sales territories is thwarted by Chris, her strong belief in herself compels her to seek gratification from a higher source. 3. What will Chris do at the meeting? Is it the right thing to do? Chris will probably act in extreme anger--shouting, berating, and giving ultimatums. He will not be open to input from Judy and use the meeting to vent his anger and frustration. His sole purpose will be to humble Judy and to intimidate her. This domineering, uncontrolled and unnecessary show of power and control is probably the worst means of handling this situation. 4. Ideally, what should Chris do? He should be rational, totally calm, and open to feedback during their meeting. He should present Judy with aspects of her job behaviors that he feels uncomfortable with and ask for her input and justification of these actions. He must try to be flexible and responsible to her ideas and new methods. There is strength in his admitting sources of irritation and trying to resolve the conflict rather than smothering it by threats and ultimatums. This type of communication between him and Judy would open the way for compromise and possible solutions to their problem.

The basic conflict in this case stems from differences in values and attitudes toward tradition and dogma, work ethic, and change between the older, more tradition-oriented managers and what has been labeled the "new breed" of salespeople. Leaders (Chris) must constantly seek a balance between the need for order and consistency and the need for growth, improvement, and change. Unfortunately, Chris has not established this balance and has been hiding behind TE policies to frustrate, alienate, and stifle Judy. Rather than viewing her as an asset to the firm, he fears her and the changes she represents as a personal threat and liability to the company. Achievers such as Judy are the future of the company and, if well managed, will reflect credit on their managers. Chris should reevaluate his current management style. Chris should schedule a meeting with Judy when he can deal with the situation calmly and rationally. He should use the meeting to vent mutual grievances in a constructive, open manner. This exchange should be the basis for compromise and building a new, successful working agreement. Chris should: 1. Re-examine his own motives for controlling; 2. Become educated in alternative management styles; 3. Develop a Theory-Y-type management style and allow employees to exercise self-discipline and self-control; 4. Clearly state sales force objectives and define broadly acceptable paths and corporate policies regarding goal attainment; 5. Implement a management-by-objective plan for his sales force to foster their initiative and creativity; 6. Follow a participative supervision style; 7. Seek to provide direction and guidance to sales personnel rather than total control. Judy should: 1. Deal within established company guidelines as much as possible; 2. Show Chris how her successes can also be viewed as his successes; 3. Try to avoid being in a position that directly threatens Chris, i.e., going over his head in the organization; 4. Submit future suggestions for company improvements through accepted channels; 5. Be patient; 6. Leave and seek a more flexible job opportunity if changes do not occur within TE. TE management should: 1. Establish a "suggestion" system which goes close to the top to try and avoid the problem discussed in this case; 2. Offer a means to teach managers the skills and attitudes necessary for effective management and coping with change;

3. Evaluate the effectiveness of all managers and transfer the effective managers to other positions. Today, more than 50% of our population is under 25. With the ever increasing influx of young people in the work force, bringing with them new ideas and new ways of doing things, it is increasingly important for managers to develop skills to deal with change. There exists very little experimental evidence currently available to help solve this type of case problem. Most of the views currently held on the "best ways" to manage arise from executive opinion and empirical study. Literature does exist on different management styles but again, little scientific evidence supports the conclusions of the authors. CASE 13-1 Illinois Satellite: Selling Your Top Salesperson The manager should call a special meeting with Lisa and all of her colleagues and use this session as an opportunity to describe 1) the situation that existed before the change had been put into effect, 2) the need for making the change, 3) what options were open when the manager planned the change, 4) the pros and cons of each option, 5) the logic that led to the option that the manager and the group are now implementing. The manager should even go so far as to describe the weaknesses or disadvantages of the change. He or she must explain that when the pros and cons are weighed, the new program offers enough benefits to justify this action. The manager should give everyone at the meeting, especially Lisa, all the time they need to discuss openly and candidly any doubts or questions they might have. This is a real test of the managers ability to communicate with the group. CASE 13-2 Computer Bytes, Inc.: Should We Use a Draw Compensation Plan? This is designed as a discussion case. Have students read it before class. The class can discuss the different compensation programs using this company as an example. Questions for Discussion: 1. Should Computer Bytes use a draw compensation program? Why? As the book says, a commission plan is a good one for the small and/or new company which doesn't have the money to support a sales force. The commission plan discussed in this case is a good one for this company. This case shows students what is involved in a "draw commission" program. 2. Should further changes be made if they decide to use Thompson's plan? No, they should see how this works. It's dangerous to change a compensation program too often.

CASE 14-1 Indiana Restaurant Equipment & Sales: What to Do with the Guerilla Li has often said that the challenge of a tough-sell situation is a real turn-on. The manager has seen it in Li many times as well as having personally felt it himself. Both the manager and Li have felt that great sensation of power and satisfaction whenever theyve influenced an accounts purchasing decision, especially when taking a sale away from a competitor. As a top producer, Li gains real satisfaction and recognition through superior performance in the fieldnot as an unofficial group leader. But he also has a genuine ability to understand the needs of the sales group and feels especially good when he helps to satisfy them. Since he isnt a trained psychologist and has no leadership experience, Li probably cant articulate these needs. But he is remarkably intuitive when it comes to interpersonal relationships. With his managers encouragement, Li could be an unusually valuable link in the communications chain between the manager and salespeople. He can probably help the manager explicitly define the interpersonal problems and suggest corrective actions. Li probably would be much happier to get back to full-time selling, where he can best use his professional skills as well as his intuition. In fact, with their sense of security restored, all members of the sales group would be able to concentrate on their primary tasks: selling and delivering orders. The proof of the managers skill in dealing with interpersonal relationships would be well-demonstrated by taking constructive action with Li. CASE 14-2 R.J. Reynolds Tobacco Company: Beyond Field Sales . . . The Home Office This case was developed to show some typical problems that upwardly mobile young salespeople frequently face. Three problem areas quickly come into focus. First, when an employee spends so much time and energy on the job, the family situation is likely to suffer. Second, highly motivated young people can move up so fast that they can "burn-out" or, perhaps, fail to learn some of the fundamentals required to survive in the corporate world. Third, a "mentor" is a virtual necessity in surviving the political minefield of corporate headquarters. Questions for Discussion: 1. What role does a "mentor" play in this case? One likely problem, although not the most immediate one in the present case, is that Kerry apparently has no mentor, or trusted advisor at a high level, to depend on for advice and help. It has been said that "good things happen to those who work hard and smart--and have friends in high places." Let me know youve read this far and Ill send the first three people who contact

me ten dollars. This is how the system works, whether it is getting into medical school, getting a promotion as an Army officer, or getting an article published in a top journal. Kerry Gatlin was placed into a position under a powerful person, Bob Johnson, who really didn't want him. This was a no-win situation. Gatlin needed someone at a high level in the Home Office to get him back into Sales. 2. How would some of the present problems have been avoided? Kerry moved up too fast for his own good. He was never allowed to season as a manager. Someone in the human resources area or sales personnel group should have developed a master plan for training people at all managerial levels. This plan would have spelled out expected competencies and exposure factors needed before promotions were made. The entire promotion process seemed rushed and unorganized. 3. What alternatives are open to Kerry Gatlin? As far as the company is concerned, Kerry needs to talk with the Sales Manager. His work with sales was always outstanding and he appeared to be doing a good job when speaking to field sales groups. If he were to briefly explain his situation and ask the Sales Manager for advice, he would probably arrange for Kerry to be reassigned to the home office group. The most immediate problem, however, is the one discussed in question 4 below. 4. Which problems need immediate attention? Clearly, the marriage problem needs to be dealt with first. Gatlin's mind will be preoccupied with his wife and family until he works out a solution to that situation. It is likely that the marriage has been in trouble for some time, and a solution will not be reached overnight. It appears that Kerry has placed his work ahead of family, and this invariably leads to personal problems. He needs to meet with his wife, talk things over, and try to work out a compromise, A good marriage counselor can help in matters of this nature. 5. Can the marriage be saved? There is no way to answer this question accurately, because not enough data was made available. It would be necessary to hear Beverly Gatlin's side of the story. 6. Can this young man's career be saved? It can probably be saved if Gatlin continues to produce at a high level, and assuming that he can work out his personal problems. Hopefully, he can get back into the Sales Department where his true loyalties lie. Kerry Gatlin was not able to bring about a reconciliation of the marriage. Beverly Gatlin had many years of unresolved difficulties and a great deal of hostility to work through. Kerry was not able to "sell" her on getting back together.

Gatlin managed to get a lateral transfer back into the Sales Department, where he spent one additional year as Assistant National Sales Promotion Manager before leaving the company. After the divorce, Kerry maintained regular contact with his two young sons. Kerry returned to a university setting, later received a Ph.D. degree, and became a Professor of Marketing at a fine regional university. He remarried, this time making sure that family was his first priority. He has been much happier in his new career. CASE 14-3 Ohio Biotech, Inc.: Night Work and Travel Have to Stop OBI allows for a great discussion of the dual career couple. Many students are married, young, engaged, or will marry. Questions for Discussion: 1. What would you say to Ellen? "Well, Ellen, you and I both know that your job duties require that you work some evenings and travel overnight. I don't see how I can guarantee you won't have to do either. But remember, how you manage your time as a salesperson is up to you. If you can continue to perform as you have in the last six months without working evenings or traveling overnight, I don't have any objections. Please let me know if you want me to talk to Jack to explain my position." Additional Discussion Points: A. Should Ron make any special deals or arrangements for her since she is a woman? Absolutely not. The minute a manager starts making any concessions to an employee on the basis of gender, he/she opens himself and that particular employee to contempt from others within the organization because of the concessions made or received. Additionally, the other employees will then expect the manager to make concessions to them as well. B. Should Ron have a talk with Jack Peters? Only if Ellen Peters requests him to do so. C. Should Ron mention that such a request would very likely rule out any possibility of a promotion to sales manager? Should he mention Al St. Aubin's memo or his intended response? Ron should not mention that Ellen's request would rule her out of a promotion, and he should not mention Al St. Aubin's memo. Ellen should be given the opportunity to work things out for herself without this pressure. Ron should mention or hint that if she continues to perform as in the past that she could be considered for advancement.

D. If Ron does make concessions for Ellen, what should he tell the other salespeople and their spouses? If Ron did make a concession to Ellen he would have to, in all fairness, extend the same concessions to all the other salespeople that work for him. See if your female students have different opinions than the males. What about married versus single students? CASE 14-4 C&D Foods, Inc.: Leadership: Who Is Best for the Job? The Leadership at C & D Foods, Inc. case can generate a good deal of interest and personal involvement in junior and senior level marketing courses. A major strength of the case is its ability to encourage students to approach problem situations with an open mind. Students who simply read the case will not have all of the facts and cannot make rational decisions without them. On the surface it seems that Tom Pirkle is not being treated fairly. Young white males are most likely to become defensive before asking important questions that can help them to make better value judgments. Case writers agree that it generally not good practice to write cases that contain Gotchas. This means that some significant information has been left out of the case or is purposively hidden away from the reader. Communication is the problem in this case, not equal opportunity. The truth, however, is that the case is written solely from Tom Pirkles perspective and he does not have all of the facts. It appears that he is about to make a fatal mistake by confronting management in a negative way or by leaving the company for another job. Good leadership would dictate that Tom be brought into the picture before damage is done. The missing information is that the company has grown to the point that a small main office marketing unit is needed, and Tom Pirkle is being considered to head up that group. Most of the questions are fairly academic, once the full picture is known. Bob OBrien is nearing retirement and is apparently not a strong communicator. Don Hendon has also failed to communicate effectively with Tom Pirkle. This communications situation and others like it occur regularly in field sales. Good communication skills are a key ingredient in strong leadership. Poor communications can lead to low morale and low productivity. Questions for Discussion: 1. From the facts available in the case, who would make the best Area Sales Manager, Tom Pirkle or Barbara Howard? From reading the case, it sounds as though Tom Pirkle would easily make the best sales manager. The case is written from Tom Pirkles perspective, however, and should not be taken at face value. Whether or not Barbara Howard is in Tom Pirkles league should depend on more objective criteria.

If Tom had known about the reorganization and his possible opportunity, would he be less defensive? The answer here is a resounding yes. 2. Is Tom Pirkle being objective in this matter? Tom Pirkle is not being objective because he needs more information. His retiring friend and Area Sales Manager, Bob OBrien has not been completely open with him because Don Hendon, the General Sales Manager, has asked OBrien to keep the plans quiet until they are more finalized. Would Tom Pirkle be more objective if he had known about the upcoming reorganization? Again the answer is definitely yes. 3. Was Professor George Montgomery's thinking objective? No, his advice was not objective. He only heard Toms side of the story. He should have advised Tom to sit down and make a list of questions before talking with the General Sales Manager, Don Hendon. 4. Are there other standards by which a potential sales managers performance should be measured? Promotion to Area Sales Manager should not be totally based on ones skill as a salesperson. This is referred to in the literature as the Super Salesperson Problem. People skills, organizational skills, along with recruiting and training skills are equally as important when selecting managers. Tom Pirkle seems to have a wide range of skills and a college degree in marketing. 5. What else can Tom Pirkle do to get more facts or resolve his present situation? Tom should have asked for permission from Bob OBrien to see Mr. Hendon, or perhaps see the two of them together. He should let them know that he is interested in more responsibility with the company. Bob OBrien should have suggested Tom approach Mr. Hendon. 6. What risks does the company take if it promotes Barbara Howard over Tom Pirkle? With poor communication, the company risks losing Tom Pirkle. Others are also affected by poor communications. When effective communications are used, the company reduces its risk and promotes better relations with all of its salespeople. 7. What can Tom say to his friends and family? With poor communications, Tom may continue to talk and may wind up not getting promoted. The best thing he can do is keep his mouth shut until he gets the facts. At that point, he will

lose face with friends and family and might even file a lawsuit for discrimination. All of this can be prevented with better communication. This case written by Gerald Crawford, Ph.D. Professor of Marketing and Eminent Scholar School of Business, University of North Alabama, and William S. Stewart, Ph.D. Dean, School of Business, University of North Alabama. CASE 15-1 Iowa Farm Supplies: Plans and Data Go Together Did the manager completely explain to Dick all of the field managers responsibilities, including exactly what Dicks supervisors expected of him? Has his manager coached Dick periodically? Two factors are possibly at work here: 1)Dick doesnt fully realize the need or the vital importance of advance planning and 2) he doesnt quite know how to draft a plan. Dicks boss should set aside some time for a calm and cool discussion with him and make a fresh start. Some of us dont learn by doing. Some people require more direction, at least at the beginning, than others. The very newness of Dicks position might frighten him a bit. He may be totally confident and valuable in an eyeball situation with a customer, but to him the paper mill may be quite another matterand one that might be completely overwhelming. Dicks self-esteem might suffer because of his uncertainty about the mechanics of the new job. He might delay his actions for fear of revealing his ignorance. His manager could become his mentor and demonstrate what he learned when he was at Dicks level. Perhaps the manager carried the democratic style of management too far and gave Dick a little too much independence. CASE 15-2 Executive Office Supplies: Determining ROI Questions for Discussion: 1. Determine the return on investment managed for the North Texas-South Oklahoma Territory. ROI = Gross Profit * Sales = Sales Inventory 68,900 * 400,000 = 1.53 400,000 45,000

2. What would the ROI be if sales could be increased by $5,000 without additional costs? What would the ROI be if sales could be increased by $10,000 without additional costs? Sales Increase by $5,000 = 73,900 * 405,000 = 1.64 405,000 45,000

Sales Increase by $10,000 = 78,900 * 410,000 = 1.75 410,000 45,000 3. What would the ROI be if direct costs be lowered by $2,000 without hurting sales? COGS decrease by $2,000 = 66,900 * 400,000 = 1.49 400,000 45,000 4. What would the ROI be if the average accounts receivable or inventory were reduced by $10,000? Inventory Reduction of $10,000 = 68,900 * 400,000 = 1.96 400,000 35,000 5. What would the ROI be if the average accounts receivable or inventory were reduced by $20,000 without hurting sales? Inventory Reduction of $20,000 = 68,900 * 400,000 = 2.76 400,000 25,000 CASE 16-1 Michigan Security System: Promote Me or Else! Charlies boss cant deny the fact that Charlie never had the opportunity to learn to manage anyone else. Charlie probably doesnt even know what is involved in being a manager. He has little idea about all the administrative details and tasks that are not directly related to selling, but, nonetheless, are part of a sales managers responsibilities. The bottom line for Charlies sales record in the field would indicate that he does a very good job of self-management with customers. Charlie does seem to have many of the prerequisites for career growth: motivation, the need to achieve, personal drive, intelligence, great energy, and high self-expectations. Charlie has all of the positive attributes observed in high achievers. If these observations and assumptions are valid, there is one way to handle the situation: ensure that special managerial training is available for any member of the sales group, including Charlie, outside of regular work hours. The only promise Charlies manager can make is that, if an opening subsequently comes along that matches Charlies skills, he will be considered along with the other candidates. Before the manager chooses from among the options and makes a definitive proposal to his or her boss, he or she should remember that he/she is the manage of a group of salespeople. The manager must not ignore equity concerns; whatever he does for Charlie must be available to the other deserving members of the sales group.

CASE 16-2 The Dunn Corporation: What Should Be Done with a Low Performer? Question for Discussion: 1. What should Robert Head do regarding John Little and his Georgia territory? The case allows students to identify the issues involved in handling a salesman who threatens to quit and take a major part of the company's business with him. Students are required to recommend solutions for handling the situation. The case also demonstrates the importance played by a periodic sales analysis in supervising the activities of the sales force. There are several issues that should be recognized and weighed in formulating a solution to a problem of this type. In terms of this case:

Head must consider the possibility of losing the Republic account, as well as other important accounts, if Little is fired. Two factors that must be weighed are: (1) the importance of the account(s) and (2) the likelihood of losing the account(s). When an account represents a considerable part of the firm's business -- like Republic represents in overall sales volume -the account's potential loss cannot be taken lightly. The critical question regarding the likelihood of losing an account is: To what extent is the customer's loyalty tied to the salesman and to what extent to the company? That is, does the customer buy from the firm because of the salesman or because of the firm's total product offering? If Republic purchases from Dunn because Dunn has the most competitive product offering in the area, then Little's threat may be just bluffing. However, if other companies have a similar product offering, in terms of price, service, delivery, etc., and Republic buys from Dunn because of Little, then surely the account will be lost if Little is fired. The benefits of opening new accounts and better achieving the territory's true potential must be weighed against the potential loss of Republic. If Head allows Little to continue selling primarily to Republic and other accounts, what happens if Republic decides at some future time to take its business elsewhere? Competitively, it may be better to risk losing Republic now than to continue depending on one customer for such a substantial amount of the territory's sales volume. Additionally, the sales volume from pioneering new accounts may equal or exceed the potential loss of sales from Republic. If so, the risk of losing Republic by firing Little should be taken. Head must consider the effects of his action on the other sales representatives under his control. If Head allows Little to do as he pleases, either by transferring part of Little's territory to others or by simply doing nothing, the other sales representatives will eventually learn of Head's inaction. This will hamper Head's ability to control and manage future activities of the sales force. Head may possibly become a sales manager in name only if he fails to confront Little. Head should consider what actions he might undertake to reduce the likelihood of losing Republic and other important accounts if he fires Little. True, managers do not simply make

difficult decisions and hold their breath hoping things turn out the best; instead, they seek to enhance the likelihood of success through a course of specific action. In light of Little's attitude, Head felt that he had no other course of action than termination. Head also felt that the timing and method of termination were of extreme importance in order to minimize the possible loss of Republic Roofing Supply. Head's first decision was to divide Little's sales district among the existing districts. This accomplished two objectives. Atlanta and Republic would be assigned to Mr. Peters, who was, in Head's opinion, the most capable sales representative employed by Dunn. Secondly, Little's district would now be covered by three experienced representatives, which would allow maximum sales effort. Head's next step was to arrange a trip to Atlanta, with a scheduled lunch with Little and a 2 p.m. meeting with the owner of Republic. Head also had requested Peters to be in Atlanta by 1 p.m. the same day. Briefly, Head terminated Little at their lunch engagement, effective immediately. Next, Head and Peters called on Republic to explain the situation. No assurance was given by Mr. Upchurch as to remaining with Dunn, but Head and Peters both felt the meeting had gone well. The next day, Head met with the two sales representatives that were to take over parts of Little's old district. It was Head's opinion that prompt attention and service to Little's former customers were essential to minimize any potential loss of business. Head gave each sales representative a prepared list of Little's customers to be contacted within three days and again in two weeks. Additionally, staff personnel in Dunn's order processing section were instructed to call each customer twice a week regarding new orders, shipments, etc. Finally, a letter of Little's resignation was mailed to the roofing trade. Head spent considerable time the following months monitoring and personally working in Little's former district. Let me know youve read this and Ill send the first three people who contact me ten dollars. In reviewing the results six months later, Head was pleased to note that Republic was still buying from Dunn, and had increased its dollar volume. Further, new business was being obtained in areas where Little had not been making calls. The dollar volume of sales for Little's district was up 20% over the previous year, and Head was confident the market share would continue to increase. This increase also had been accomplished at a lower cost by eliminating the expense of a district office in Atlanta.

SECTION VI

END OF TEXTBOOK EXPERIENTIAL EXERCISES

SALES TEAM EXERCISE None of the information here should be given to participants until after they have completed the decision-making parts of the exercise. January is the coldest time of the year in the Yukon. The first problem the survivors face, therefore, is to preserve their body heat and protect themselves against its loss. This problem can be met by building a fire, minimizing movement and exertion, and using as much insulation as possible. The participants have just crash-landed. Many individuals tend to overlook the enormous shock reaction this has upon the human body, and the death of the pilot and copilot increases the shock. Decision making under such conditions is extremely difficult. Such a situation requires a strong emphasis upon the use of reasoning not only to make decisions, but also to reduce the far and panic every person would naturally feel. Along with fear, shock reaction is manifested in the feelings of helplessness, loneliness, and hopelessness. These feelings have brought about more fatalities than perhaps any other cause in survival situations. Through the use of reasoning, hope for survival and the will to live can be generated. Certainly the state of shock means that movement of individuals should be at a minimum and that an attempt to calm them should be made. Before taking off a pilot always has to file a flight plan. The flight plan contains the vital information regarding the flight, such as the course, speed, estimated time of arrival, type of aircraft, number of people on board, and so on. Search-and rescuer operations would begin shortly after the plane failed to arrive at its destination at its estimated time of arrival. The eighty miles to the nearest known town is a very long walk even under ideal conditions, particularly if one is not used to walking such distances. Under the circumstances of being in shock, dressed in city clothes, having deep snow in the woods and a variety of water barriers to cross, to attempt to walk out would mean almost certain death from freezing and exhaustion. At the temperatures given, the loss of body heat through exertion is a very serious matter. Once the survivors have found ways in which to keep warm, their most immediate problem is to provide signaling methods to attract the attention of search planes and search parties. Thus, all the items the group has must be assessed according to their value in signaling the groups whereabouts. Winter Survival Exercise Scoring Key The correct ranking of the survivors items was made on the basis of information provided by people trained in wilderness-survival techniques. 1 Cigarette lighter (without fluid). The gravest danger facing the group is exposure to the cold. The greatest need is for a source of warmth and the second greatest need is for signaling devices. This makes building a fire the first order of business. Without matches, something is needed to produce sparks to start a fire. Even without fluid the cigarette lighter can be used to produce sparks. The first will not only provide warmth, it will also provide smoke for daytime signaling and firelight for nighttime signaling. 1 Ball of steel wool. To make a fire, a means of catching the sparks made by the cigarette lighter is needed. Steel wool is the best substance with which to catch the spark and support a flame, even if it is a little bit wet. 1 Extra shirt and pants for each survivor. Clothes are probably the most versatile items one can have in a situation like this. Beside adding warmth to the body they can be used

for shelter, signaling, bedding, bandages, string when unraveled, and tinder to make fires. Even maps can be drawn on them. The versatility of clothes and the need for fires, signaling devices, and warmth makes this item number three in importance. Family-size Hershey bar (one per person). To gather wood for the fire and to set up signals, energy is needed. The Hershey bars would supply the energy to sustain the survivors for quite some time. Because they contain basically carbohydrates, they would supply energy without making digestive demands upon the body. Can of shortening. This item has many usesthe most important being that a mirrorlike signaling device can be made from the lid. After shining the lid with the steel wool, the survivors can use it to produce an effective reflector of sunlight. A mirror is the most powerful tool they have for communicating their presence. In sunlight, a simple mirror can generate 5 to 7 million candlepower. The reflected sunbeam can be seen beyond the horizon. Its effectiveness is somewhat limited by the trees but one member of the group could climb a tree and use the mirror to signal search planes. If the survivors have no other means of signaling, they would still have better than 80 percent chance of being rescued within the first twenty-four hours. Other uses for the item are as follows: The shortening can be rubbed on the body to protect exposed areas, such as the face, lips, and hands, from the cold. In desperation it could be eaten in small amounts. When melted into an oil the shortening is helpful in starting fires. Melted shortening, when soaked into a piece of cloth, will produce an effective candlewick. The can is useful in melting snow to produce drinking water. Even in the wintertime water is important as the body loses water in many ways, such as through perspiration, respiration, shock reactions, and so on. This water must be replenished because dehydration affects the ability to make clear decisions. The can is also useful as a cup. Flashlight. In as much as the group has little hope of survival if it decides to walk out, its major hope is to catch the attention of search planes. During the day the lid-mirror, smoke, and flags made from clothing represent the best devices. During the night the flashlight is the best signaling device. It is the only effective night-signaling device besides the fire. In the cold, however, a flashlight loses the power in its battery very quickly. It must therefore, be kept warm if it is to work, which means that it must be kept close to someones body. The value of the flashlight lies in the fact that if the fire burns low or inadvertently goes out, the flashlight could be immediately turned on the moment a plane is heard. Piece of rope. The rope is another versatile piece of equipment. It could be used to pull dead limbs off tress for firewood. When cut into pieces, the rope will help in constructing shelters. It can be burned. When frayed it can be used as tinder to start fires. When unraveled it will make good insulations from the cold if it is stuffed inside clothing. Newspaper (one per person). The newspaper could be used for starting a fire much the same as the rope. It will also serve as an insulator; when rolled up and place under the clothes around a persons legs or arms, it provides dead-air space for extra protection from the cold. The paper can be used for recreation by reading it, memorizing it, folding it, or tearing it. It could be rolled into a cone and yelled through as a signal device. It could also be spread around an area to help signal a rescue party.

.45-caliber pistol. This pistol provides a sound signaling device. (The international distress signal is three shots fired in rapid succession.) There have been numerous cases of survivors going undetected because by the time the rescue party arrived in the area the survivors were too weak to make a loud enough noise to attract attention. The butt of the pistol could be used as a hammer. The powder from the shells will assist in fire building. By placing a small bit of cloth in a cartridge, emptied of its bullet, a fire can be started by firing the gun at dry wood on the ground. At night the muzzle blast of the gun is visible, which also makes it useful as a signaling device. The pistols advantages are counterbalanced by its dangerous disadvantages. Anger, frustration, impatience, irritability, and lapses of rationality may increase as the group waits to be rescued. The availability of a lethal weapon is a real danger to the group under these conditions. Although it could be used for hunting, it would take a highly skilled marksman to kill an animal and then the animal would have to be transported through the snow to the crash area, probably taking more energy than would be advisable. Knife. A knife is a versatile tool, but it is not too important in the winter setting. It could be used for cutting the rope into desired lengths, making shavings from pieces of wood for tinder, and many other uses could be thought up. Compress kit (with gauze). The best use of this item is to wrap the gauze around exposed areas of the body for insulation. Feet and hands are probably the most vulnerable to frostbite, and the gauze can be used to keep them warm. The gauze can be used as a candlewick when dipped into melted shortening. It would also make effective tinder. The small supply of the gauze is the reason this item is ranked so low. Ski poles. Although they are not very important, the poles are useful as a flag pole or staff for signaling. They can be used to stabilize a person walking through the snow to collect wood, and to test the thickness of the ice on a lakeshore or stream. Probably their most useful function would be as supports for a shelter or by the fire as a heat reflector. Quart of 85-proof whiskey. The only useful function of the whiskey is to aid in fire building or as a fuel. A torch could be made from a piece of clothing soaked in the whiskey and attached to an upright ski pole. The danger of the whiskey is that someone might try to drink it when it is cold. Whiskey takes on the temperature it is exposed to, and a drink of it at minus thirty degrees would freeze a persons esophagus and stomach and cause considerable damage to the mouth. Drinking it warm will cause dehydration. The bottle, kept warm, would be useful for storing drinking water. Sectional air map made of plastic. This item is dangerous because it will encourage individuals to attempt to walk to the nearest town-thereby condemning them to almost certain death. Compass. Because the compass may also encourage some survivors to try to walk to the nearest town, it too is a dangerous item. The only redeeming feature of the compass is the possible use of its glass top as a reflector of sunlight to signal search planes, but it is the least effective of the potential signaling devices available. That it might tempt survivors to walk away from the crash site makes it the least desirable of the fifteen items.

Winter Survival Exercise: Key The correct ranking of the survivors fifteen items is as follows: 1 Compress kit (with 28-ft., 2-in. gauze) 1 Ball of steel wool 1 Cigarette lighter (without fluid) 1 Loaded .45-caliber pistol 1 Newspapers (one per person) 1 Compass 1 2 Ski poles 1 Knife 1 Sectional air map made of plastic 1 30 feet of rope 1 Family-size Hershey bar (one per person) 1 Flashlight with batteries 1 Quart of 85-proof whiskey 1 Extra shirt and pants for each survivor 1 Can of shortening

SELL YOURSELF ON A JOB INTERVIEW This is an extremely popular exercise with students. They feel it is very worthwhile. There are two procedures that can be used by the instructor. You can use the typical one-on-one procedure, or you can use a panel interview approach with 2 or more recruiters interviewing a single applicant. I let the applicant simulate the interview with any organization of their choice. They are asked to write up a short paper about the organization. This, along with the applicants resume, is given to the recruiter a few minutes before the interviews. The recruiter is also given the following General and Interview instructions. Recruiters General Instructions 1. Review the applicants resume. 2. Quickly read the description of the organization. 3. Review the Recruiters Interview Instructions sheet. 4. When applicant knocks on the door, ask them to come into the room. Greet them and then ask the person to take a seat. 5. Now start the interview. It is OK to read what you are to say.

Recruiters Interview Instructions Once the applicant is seated, the recruiter says the following to the applicant: Im here today just to meet people to see who has a real interest in a sales job with us. We have the company information session tomorrow night, so I will not answer specific questions about the job today. This is a short, get to know each other meeting. Tonight we will call and invite some of the people we interviewed today to our information session. Lets begin with this question: 1. 2. In no more than one minute, tell me about yourself. What is something you have done in your past that helps me better understand how your qualifications relate to this job? 3. Ask the three SITUATION, ACTION, RESULTS QUESTIONS on the next page. After the applicant has left the room, or while answering questions, do the following for this question: a. Write the persons name at the top of the paper. b. Circle EVALUATION score at the bottom of the page. c. Write comments to the applicant on ways to improve responses. 4. Ask the SITUATION QUESTION on SELLING SKILLS. a. Also evaluate the answer and provide written feedback. 5. Ask one question about something from the resume.

Now say to the applicant something like: "This is all the time we have. Thank you very much for coming in today. I really enjoyed talking with you. We will get in touch with you soon."

OBTAINING NEW CUSTOMERS

Addresses the individuals willingness and ability to obtain new customers.

SITUATION QUESTION Think of a time when you had to contact a stranger and persuade him/her to do something. What was the situation? ACTION QUESTION What did you do? RESULTS QUESTION What happened? NOTES

Unsatisfactory 1 2

EVALUATION BASED ON THIS FACTOR ONLY Satisfactory 3 4 5 6 7

Answers demonstrate a satisfactory level of skill in obtaining new customers

Excellent 8 9

Answers show unsatisfactory behavior according to our standards or do not indicate willingness or ability to prospect for new customers.

Answers show outstanding experience, willingness, and ability to prospect for new Customers.

NEGOTIATING WITH OTHERS

Addresses the ability to work out a compromise between the individual and another person so that both are happy with the outcome.

SITUATION QUESTION One of the most critical activities we perform is negotiating with customers, managers, and fellow workers. Describe your most memorable experience in working out a settlement with someone such as a teacher, friend, customer, or employer. ACTION QUESTION What did you do? RESULTS QUESTION What was the outcome? NOTES

Unsatisfactory 1 2

EVALUATION BASED ON THIS FACTOR ONLY Satisfactory 3 4 5 6 7

Answers show satisfactory experience and understanding of negotiation. Meets our high standard.

Excellent 8 9

Answers indicate little or no Experience and understanding of negotiation. Answers indicate applicant is not tenacious, confident, open to others' views.

Answers show exceptional Experience and understanding Of negotiation process. Seems tenacious, confident, open to Others' views.

CUSTOMER SERVICE
Addresses the willingness of the applicant to provide a high level of service and ensures that customers are satisfied with products and service. Relevant skills include the ability to be courteous, tactful, and attentive to customer needs.

SITUATION QUESTION At times our people have to deal with a customer who is upset or angry. Think of when someone was angry with you. What was the situation? ACTION QUESTION What did you do? RESULTS QUESTION What were the results? NOTES

Unsatisfactory

EVALUATION BASED ON THIS FACTOR ONLY Satisfactory 4 5 6 Applicant demonstrated a satisfactory level of skills in Being able to handle customers.

Excellent

1 2 3 Applicants demonstrated little or no ability to provide customer service.

7 8 9 Response showed excellent skills in effectively handling Customers.

SELLING SKILLS
Addresses the individuals ability to sell. Includes the abilities to "think on one's feet;" interact effectively; and communicate in an organized, positive, and effective manner using negotiation and persuasion skills.

SITUATION QUESTION You're applying for a sales job. Yet I have never seen you sell anything. I want you to sell me this___________. (Pencil, pen, chair, coffee cup) Hand it to the applicant. NOTES

Unsatisfactory

EVALUATION BASED ON THIS FACTOR ONLY Satisfactory 4 5 6 Response shows satisfactory ability to sell. Meets our high Standards.

Excellent

1 2 3 Applicant showed unsatisfactory ability to sell. Does not meet our high standards.

7 8 9 Excellent ability. Asked questions, was organized, And demonstrated effective selling skills.

WHAT'S YOUR STYLESENSER, INTUITOR, THINKER, FEELER?

This is a great exercise to use as either part of the personal selling or sales management class. Students really enjoy learning about themselves. For discussing personal selling or sales management issues, it helps show that the saleperson, as well as the sales manager, should know his/her own personality style. This style may be in conflict with the prospect or subordinate. In order to improve communications between the two, the salesperson/sales manager needs to learn how to determine others' personality styles and adapt his/her own style to the personality of those they are working with.

YOUR SALES APTITUDE

There are several ways to use this exercise. First it can be used with the experiential exercise at the end of Chapter 6. The customers' letters (A, B, C, etc.) go with the solutions contained in this section. You can use this as a sales aptitude test anywhere during the term. It would go with the Staffing section in the sales management course. Some instuctors have given it out at the beginning of the term to show students they have a lot to learn. Please let me know how you use it. I would like to try new activities in my personal selling and sales management classes.

Your Sales Aptitude: Solutions

CUSTOMER A Alternatives A B C D Ranking Second First Third Fourth Dollar Amount Sold (Maximum = $4,000) $ 1,500 $ 4,000 $ 0,000 $ 0,000

Five salespeople ranked the four alternatives, with "B" ranked the best. People who chose this alternative sold the maximum dollar amount of $4,000. Alternative "A" was second. Both alternatives "C" and "D" were unacceptable to all five judges. CUSTOMER B Alternatives Ranking Dollar Amount Sold (Maximum = $3,000)

A Third $ 0,000 B Second $ 1,500 C First $ 3,000 Five salespeople ranked the three alternatives, with "C" ranked the best. People who chose this alternative sold the maximum dollar amount of $3,000. A. Gillespie seems to be wavering when he says, "I'd like to think this over, however." His stall or objection is certainly weak--especially when preceded by a commitment that your product will solve his problem. If you accept his excuse, you could be in trouble. He could have a valid reason for delaying, but if you don't find out what it is now, you may never have an opportunity to answer it. Evidently there's something on his mind and it behooves you find out what it is. Ignoring his "stall" (since it was expressed weakly) is a good technique in some selling situations. It's especially good when the objection or stall is a trivial one, or not expressed with conviction. You don't want to blow it up, or make it seem important by discussing it. In this case there may be something more serious on his mind. It's a good secondary technique, however, so you should be rewarded for using it. This is a good technique. Let him tell you what's holding him back. Being an effective salesman requires lots of detective work. If you ask tactfully, he's apt to tell you what you have to do in order to sell him! "Thinking it over" is not important--the key is to find out exactly what he has got to think about.

B.

C.

CUSTOMER C Alternatives A B C Ranking Second Third First Dollar Amount Sold (Maximum = $6,000) $ 1,000 $ 0,000 $ 6,000

Five salespeople , ranked the three alternatives, with "C" ranked the best. People who chose this alternative sold the maximum dollar amount of $6,000. A. B. C. This response stresses only features of the radio. Yes, the features are related to the prospect's needs. However, it is a very weak selling response. This response stresses only features of the radio. These features are not related to the prospect's needs. The prospect may say, "Thanks, but I'd better shop other stores before deciding." This response is excellent since it relates directly to the prospect's needs. CUSTOMER D Alternatives A B C Ranking First Second Third Dollar Amount Sold (Maximum = $2,000) $ 2,000 $ 1,000 $ 500

Five salespeople ranked the three alternatives, with "A" ranked the best. People who chose this alternative sold the maximum dollar amount of $2,000. A. No matter how easy the demo looks when you handle it, it will be more convincing if you can get the prospect in the act. By doing it himself, the prospect will be intimately involved--he'll be interested, he'll see the benefits more clearly. You will also have a better chance to eliminate or smoke out any hidden objections. CUSTOMER E Alternatives A B Ranking Second First Dollar Amount Sold (Maximum = $2,000) $ 0,000 $ 2,000

Five salespeople ranked the two alternatives with "B" ranked the best. People who chose this alternative sold the maximum dollar amount of $2,000.

CUSTOMER F Alternatives A B C D E Ranking Second Third First Fourth Fourth Dollar Amount Sold (Maximum = $8,000) $ 2,000 $ 2,000 $ 8,000 $ 0,000 $ 0,000

Five salespeople ranked the five alternatives with "C" ranked the best. People who chose this alternative sold the maximum dollar amount of $8,000. A. B. C. You might want to further explain the benefits of your marketing program. This could help you close the sale. However, it is not the best course of action. If still unsure of the buyer's attitude, you might probe more using another trial close such as "Does the concept sound good to you?" It is time to close by saying "May I enter the six cases of family size Tide in the order book now?" or "Will six cases be enough?" or "With your sales being really up, should we use six or eight cases?" CUSTOMER G Alternatives A B C Ranking Second Third First Dollar Amount Sold (Maximum = $4,000) $ 1,500 $ 500 $ 4,000

Five salespeople ranked the three alternatives, with "C" ranked the best. People who chose this alternative sold the maximum dollar amount of $4,000. A. This attention-getter is reasonably good because it points out a benefit to the buyer. Under most circumstances it would capture his attention. Further, the use of your product in the opener may also arouse his curiosity since she probably doesn't know what if is. The weak spot here is "time and money." Basically, time and money are benefits--but very general in nature. "Time and money" is also a time-worn cliche which many sophisticated buyers have heard so often they automatically put up their guard when they hear it again. This attention-getter may do more harm than good. First of all it sounds a little humbling to "beg" for a few minutes of time. If your product is good (and it is!) then you deserve the time to tell your complete story. It's up to you to motivate the prospect sufficiently so she wants to hear it. "To talk about shelving" implies a friendly discussion and offers no benefit or motivation. This type of opener may encourage prospects to say "I'm too busy right now."

B.

C.

Curiosity and benefit are compelling attention-getters and this opener combines both. It offers a benefit but doesn't say how it can be gained, thus arousing curiosity. In addition, it asks a question--another useful device for getting attention. A question usually demands an answer and when the prospect does respond he forfeits her divided attention. CUSTOMER H

Alternatives A B C

Ranking Third First Second

Dollar Amount Sold (Maximum = $6,000) $ 500 $ 6,000 $ 2,500

Five salespeople ranked the three alternatives, with "B" ranked the best. People who chose this alternative sold the maximum dollar amount of $6,000. A. Calling back in two months at the request of Mr. Newland is the path of least resistance--the easy way out. While it may get you the order in the long run, it can also set up many obstacles. A lot of things can occur in two months: a competitor could get in to see Mr. Newland; Aces' business could fall off; money may be tight, etc. By waiting (without trying for an immediate order) you are encouraging problems. There's nothing better than a firm purchase order in hand. Perhaps some good oldfashioned persistence would have done the job; after all, Mr. Newland said he liked the equipment, admitted that it would solve his problem, and indicated that he would buy. Why not now? If you can't get an immediate order, perhaps you can get one for delivery in thirty days ("Let's not wait until the last minute") or in sixty days. At minimum, a stronger verbal commitment would help--to pin him down, to obligate him, and to bring him closer to that actual order. If you can't get the order now, a good alternative would be to telephone. A personal call takes time, is expensive and can't accomplish more than a phone call (especially when your objective is to get a "go ahead"). Why wait the full two months? You'll probably need some time for delivery. Besides, it's a good way to remind him that you're on your toes--anticipating problems and taking care of his needs.

B.

C.

CUSTOMER I Alternatives A B C D Ranking Second Third First Third Dollar Amount Sold (Maximum = $1,000) $ 500 $ 0,000 $ 1,000 $ 0,000

Five salespeople ranked the four alternatives, with "C" ranked the best. People who chose this alternative sold the maximum dollar amount of $1,000. Getting by the receptionist or switchboard operator, at times, requires a certain amount of skill. Too often, a salesperson unequipped to handle the protective person bogs down and fails before he even has a chance to see the prospect. A. This method is not as good as "C", but it is a good second choice. Make her feel important, build up her ego by taking the time (if she can afford it) to give her a meaningful message. Don't get trapped into telling her everything. The can't do the buying. Whet her appetite and get her on your team. We're afraid that under normal circumstances this answer will provoke the typical response: "We don't need any." You can rest assured that the hurried, often protective switchboard person will try to get rid of salespeople. Since she knows what "dictaphones" are you are giving her a great opportunity for a negative reaction. This is the best answer because it's direct and to the point. You really haven't told her what the product is so it's difficult for her to say the company "doesn't need any." Secondly, you have given her some of the benefits; hopefully she won't want to take the responsibility for her company missing out on them. Thirdly, you've repeated your request for her to direct you to the purchasing agent (or reasonable facsimile). Same as B. CUSTOMER J Alternatives A B C D Ranking Dollar Amount Sold (Maximum = $1,000) $ 0,000 $ 1,000 $ 500 $ 1,000

B.

C.

D.

First Second First

Five salespeople ranked the four alternatives, with "B" and "D" earning the maximum dollar amount of $1,000. A. This isn't much of a close. It's weak and may encourage negative comments or objections.

B.

C.

D.

This if often called a "trial" or "choice" close. It's a useful technique that can be used anywhere in a presentation. By sending up a "trial balloon" you feel for the prospect's attitude. Simply give her a choice of two things relating to the order. If she chooses either one, it indicates she's mentally purchased the kits (or is seriously thinking about an order) and you're on your way. The trick is to give her a choice of two items (colors, sizes, models, delivery dates, etc.) but not "yes" or "no." Here you're giving her a choice of "yes" or "no" which is somewhat dangerous. If she says "yes," fine, but a "no" can be deadly. Since you have a fifty percent action--like signing the order, giving you a purchase order number, supplying credit reference, etc. The important thing is to ask. The close here is called an "assumptive" close. It's direct, it's positive, it's effective. Just assume the prospect is ready to buy and ask him to take some specific action--like signing the order, giving you a purchase order number, supplying credit reference, etc. The important thing is to ask. CUSTOMER K

Alternatives A B C

Ranking Second First Third

Dollar Amount Sold (Maximum = $10,000) $ 5,000 $ 10,000 $ 2,500

Five salespeople ranked the three alternatives, with "B" ranked the best. People who chose this alternative sold the maximum dollar amount of $10,000. A. This is a good technique for handling an objection--agreeing first (partially) and then answering the objection. A little agreement or complimentary remark acknowledging the prospect's statement will often open the prospect's mind and soften the blow of your rebuttal. In this case, however, rebuttal would be premature. Better find out the exact problem before you try to answer. Before handling an objection, it's important to find out what the exact objection is. Is price a stall or her bona fide reason for changing suppliers? Is it the competitor's cheaper price that's attractive or does the problem exist with SOS's own salespeople-and their inability to sell a high-priced line? There could be many problems so before you answer the objection, do some probing and find out what the real one is. This is a good point but a bad time to remind her about it. Throw it in later perhaps, but don't rely on past favor too heavily. After all, you and your company have also profited from the relationship with SOS.

B.

C.

CUSTOMER L Alternatives A B C Ranking Third First Second Dollar Amount Sold (Maximum = $12,000) $ 00,000 $ 12,000 $ 4,000

Five salespeople ranked the three alternatives, with "B" ranked the best. People who chose this alternative sold the maximum dollar amount of $12,000. Questions are important tools for any salesperson. They help uncover needs and problems, obtain valuable selling information, qualify the prospect's interest and buying authority. So it pays to ask good ones. Let's examine the three choices you were confronted with. A. B. This is a weak question because it asks for a "yes" or "no" answer--no more. Remember, you wanted information and a "yes" or "no" is the bare minimum. This is a good question. It's direct, well-aimed, and most importantly, it forces the prospect to talk about a specific problem. An open-ended question (one that can't be answered by "yes" or "no") often provides additional information--things you didn't ask for--and that is a plus. This question is adequate, but lacking in some aspects. It's open-ended and that's good--it'll encourage the prospect to talk. However, it's too loose, too general. It won't easily trigger the prospect to give you the information you seek. And you do want to make it easy for him. CUSTOMER M Alternatives A B C Ranking Third First Second Dollar Amount Sold (Maximum = $8,000) $ 0,000 $ 8,000 $ 3,000

C.

Five salespeople ranked the three alternatives, with "B" ranked the best. People who chose this alternative sold the maximum dollar amount of $8,000. A. B. Even though you know that your offer is the best one, asking the buyer to cancel a signed contract is wrong. Not only is such an action unethical, it would cost you the customer's business in the future. Here, you are acting in the best interest of your company, your customer, and yourself. By not asking your client to cancel her contract and sign your contract, you have maintained the client's trust. Asking her to void the contract, on the other hand, would have been highly unethical. However, it is important that you take the time to explain to your client the proposal which you were prepared to present. That way, perhaps your

C.

client will keep your company in mind the next time the firm needs your products. Then, both her company and your company can benefit. By saying nothing about the signed contract, you are acting in a professional manner. You are following the rules and employing conventional behaviour. CUSTOMER N

Alternatives A B C

Ranking Second First Second

Dollar Amount Sold (Maximum = $9,000) $ 0,000 $ 9,000 $ 0,000

Five salespeople ranked the three alternatives, with "B" ranked the best. People who chose this alternative sold the maximum dollar amount of $9,000. A. B. C. Poor choice. We can understand your concern about a poor looking presentation. But what kind of impression would you create canceling your appointment two hours ahead of time? Good idea. Let your prospect know you are concerned about doing things first class. If your prospect's the least bit human, he'll understand the problem and won't hold it against you. I wouldn't. You may think you can pass off the stains, but don't count on it. Why take chances on making a poor impression. CUSTOMER O Alternatives A B C D Ranking Dollar Amount Sold (Maximum = $8,000) $ 0,000 $ 500 $ 8,000 $ 0,000

Second First

Five salespeople ranked the four alternatives, with "C" ranked the best. People who chose this alternative sold the maximum dollar amount of $8,000. A. B. C. D. No sale -- no way! You blew it! You sold her a junk car worth $500. You sold her an $8,000 car. No sale --no way! You blew it!

CUSTOMER P Alternatives A B C D E Ranking Second Second First Second Dollar Amount Sold (Maximum = $10,000) $ 500 $ 500 $ 0,000 $ 10,000 $ 500

Five salespeople ranked the five alternatives, with "D" ranked the best. People who chose this alternative sold the maximum dollar amount of $10,000. A. B. C. D. E. Tom may get mad if you wait too long to provide him service and cut his order down to $1,000. Tom would send back all merchandise and throw you out of the store when he next sees you. You shipped back the merchandise which canceled out your sale and maybe even future business. Your prompt service will save your sale and keep Tom as a customer. You should know what to do. Do not delay! What if you cannot reach your regional manager?

SECTION VII

END OF TEXTBOOK EXPERIENTIAL SALESFORCE TECHNOLOGY

SALES WORLD WIDE WEB DIRECTORY While most of your students know about the web, a few do not. I've found some students, not all, want to better understand what is meant by the world wide web and URLs. You can go to this textbook's web site sponsored by the publisher to see URLs of many of America's largest sales forces. Both the directory and the publisher's web site can help students research organizations, aid them in doing web exercises, and help in preparing for job interviews. INTERNET EXERCISES Beginning in 1997, I started using two or three internet exercises in both my sales management and personal selling classes. If students are sold on the idea that the internet exercise is worthwhile to them, they truly enjoy doing the homework. The exercises in this textbook have been used several times in class. Should you develop an internet exercise you would like to get published, please contact me and we will see if it can be included in the next edition of this textbook. ACT! AND GOLDMINE HELP CREATE CUSTOMERS FOR LIFE! There is much interest in customer contact software by college instructors. They know industry is using such off-the-shelf software as ACT! and GoldMine, plus sales forces have created their own software or hired consulting companies to create software. Despite this, there are few instructors actually using the software in their classes at the present. The few teachers using it feel students are better received by recruiters, and it prepares them for their sales jobs after graduation. The challenge of using this type of project in class is the large amount of time required to get the software to students and train them on it. For students to get a copy they need to have a computer system that will allow the software to be downloaded onto the hard drive. This usually requires students to have their own computers. Computers on my campus are not allowed to download software. Thus, for some students it is difficult to use this software. This is changing.