Sales Management

Part A: You were recently promoted to a sales manager position for ABC Company, which offers customized software for physicians, dentists, and veterinarians. Unfortunately, you are now the sales manager for one of your company’s least productive regions. After several weeks on the job, you become concerned about the high rate of turnover. Three salespeople have resigned within the last two months. Replacements are needed and there is little time to hire, train, and deploy them in the field.

Upon further review of the situation, you discover that two of the salespeople resigned because they felt the sales organization was structured unfairly. They had been assigned to geographical areas that were difficult, and their sales quotas were not adjusted accordingly.

You know quite well that replacing a sales person can be costly. In fact, the cost to the company can be as high as $300,000 per bad hire because time and money are lost in the process of recruiting, hiring, training, missed sales, bad relationships, and firing. Before you begin your search, you want to be certain that you have a well thought-out organizational plan and that you attract the right people for these positions.

To help you prepare your hiring plan, answer the following questions.

Describe two (2) reasons why it is important for firms to organize their sales activities into a specific structure.

Describe one (1) disadvantage of the current structure. Describe one (1) advantage and one (1) disadvantage of a geographical sales structure.

Which sales structure do you recommend and why? Provide two (2) supporting facts.

Part B: Realizing that the right people for these positions could come from a variety of places, you decide to investigate the strengths and weaknesses of hiring from within the organization, through referrals, and by using advertising methods. What are your opinions on the following?

What are two (2) advantages and two (2) disadvantages of hiring internal candidates for sales positions?

What are two (2) benefits of hiring people referred to the company by friends or relatives?

Discuss one (1) difference between the kinds of applicants that will come in from a newspaper ad versus postings on online job boards. Does this difference indicate anything about future job performance?

Part C: You have just finished a series of interviews with a person who you feel is an excellent candidate for one of your firm’s open sales position. She has a 3.4 grade point average and a marketing degree. The candidate has excellent communication skills, held a part-time sales job throughout college to help pay for school, and was an officer in the sales fraternity on campus. She will definitely make a great entry-level salesperson at your company. Your only concern is that another company will offer her a job before you do! Before the candidate is offered a job, your company requires that a few of the applicant’s references be checked. During the process, you discover that your ideal candidate lied on her resume and application. She was never an officer in the sales fraternity; she was only a member.

Given the difficulty in finding excellent candidates, would you hire this candidate? Provide two (2) supporting facts to justify your position.

Would your decision change if you also find out this candidate has several speeding tickets? Why or why not?

…………………Answer preview…………………

Sales management is a process by which sales forces are developed, coordinated, and implemented so as to allow the business to constantly supply the product it produces. Sales managers are the people who help the company reach its goals. They also decide whether they should grow the team that helps them in selling the product and also how to grow it. (Rapp, Agnihotri, & Forbes, 2008)…………………………………

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