Business To Business Marketing Case Study Amhurst Computer, Inc.

1. 2. 3. 12EM03 Arjyama Choudhury 25NMP26 Mahendra Pratap 25NMP43 Tamal Kishore Acharya 25NMP47 A. Suresh 25NMP48 Ajay Singh 25NMP51 Pradeep Toppo

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Context
M/s Amhurst Computer Inc,: Largest manufacturer of computer hardware & software. John Allen, Sales Person: - Specialized in selling computer systems for accounting purposes to physicians.

- Wanted to get Bonus $ 5000 by achieving fiscal year sales Target of $200,000
- Shortage of $ 25000 sales to be fulfilled within 2 weeks. M/s Uptown Clinic - Potential Customer - An opportunity for Allen to meet Sales Target by selling computer system. - Clinic wanted to purchase the system before the 1st of new year for Tax reasons - Identified Appropriate Products for the Clinic:

a. Z600 Price : $ 30000 (with additional features for future accounting needs)
b. X300 Price : $ 10000 (meets current need but lacked additional features) Selling Z600 would surpass sales quota & fetch $ 5000 bonus. Selling X300 would lead to gap of $ 15000 to meet sales target

What mistakes did Allen make?

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Submitted proposal for Z600 instead of X300 to get bonus without briefing the customer needs of the products. Jones & Seawell felt that: - Price Gouge by recommending a more expensive product - Allen was trying to salvage the sale by proposing the X300

2. Did not estimate the customers budget requirement from their interaction 3. Later manipulated the facts to push his sales by wrong justification to sell X300 (i.e. coming out with offer of X300 (at $10,000) 4. Sent the proposal to doctors without notifying Jones & Seawell - No importance given to build relationship with Jones & Seawell - Lost market reputation of Amhurst computer Inc. - Lost business for both X300 as well as Z600 - Image loss to Allen as sales person

What should have Allen Done?

1. Advance Homework to understand - buyers present situation - Product requirement for such a business - estimation of budget and other requirement from prevailing market demand for comparable clinic Identification of customers budget requirement ( as the buyer itself approached the seller, it was easier to ask about budget) Build the pain skillfully : Make the customer to realize the effects or consequences of the present & future situation - what can go wrong if no accounting by computer system is used? - what will happen if any obsolete product ( but cater present need) is used? - About future requirement - Additional Cost of replacement

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What should have Allen Done?

4. Make them realize the usefulness of Z600 by offering both systems explicitly indicating the advantages carried by Z600 over X300 - Obsolescence of X300 (which could later become Sunk cost for buyer) - Z600 would cater present & future use of accounting needs (i.e. cheaper, easy and hassle free upgrade) 5. Saving the situation, after the failure of first proposal- Considering the long term relationship, Allen should not have sent proposal to clinic Doctors - Should have believed Jones & Seawell - Might have approached doctors with the consent of Seawell & Jones

What could Amhursts Management do to prevent similar situations in future?

Carryout Behavior Analysis to measure the skills of salespeople

Provide training to all sales personnel to enhance their special selling skills (SPIN Model).
Review the rejected proposal by more experienced sales personnel like team head, etc Monitor & take corrective action not to repeat such mistakes in future by any sales person. Prepare estimate of market requirement from similar cluster of clinics

Thank You