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ASSIGNMENT MEMORANDUM
SUBJECT
:
SALES MANAGEMENT (SALM)
SALES MANAGEMENT 1 (SAM101)
ASSIGNMENT
:
2ND SEMESTER 2012
References are to the prescribed text: Johnston, M.W. and Marshall, G.W., 2010.
Relationship Selling and Sales Management. 3rd ed. McGraw-Hill.
QUESTION 1 (CHAPTER 1)
[20]
1.1
The answer, of course, is to submit only valid policies that have a high
probability of being underwritten. In other words continue to behave in an
ethical fashion.
Ted has been successful with the company and to
compromise his principles now would be harmful to him, the company and the
customers. There are several frameworks that can be used to justify this
response. First, within the chapter the discussion on value creation provides a
great starting point for a focus on delivering value to the customer. Consider
the waste of time for the customer and All Star Insurance if Ted submits
policies that will be denied by underwriting. Other frameworks that can be
used are moral arguments (lying or misleading the company is not ethical) or
pragmatic arguments (in the end it is highly unlikely he can get away with
cheating).
(7)
1.2
There are good reasons beyond the moral arguments, for Ted to honor the
spirit and letter of the contest rules. First, violating the spirit of the contest is
not in the best interests of the company or Ted’s customers. It violates the
value proposition by wasting the customer and company’s time without
delivering any value. Second, dishonest behaviour will almost always be
discovered and this would put Ted’s position in immediate jeopardy. Finally,
the moral argument suggests that violating the spirit is still being dishonest to
the company and comes at the expense of Ted’s personal integrity. In a very
real sense, this would also put Ted’s job at great risk if he chooses to engage
in the dishonest behaviour and was later found out by management.
(7)
Marking Memorandum: 2nd Semester 2012
© IMM Graduate School of Marketing
SALM/SAM101
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1.3
Management should work hard to create contests (and more broadly speaking
compensation and reward systems) that are fair, easily understood and do not
deliberately put the salesperson in a difficult situation. However, companies
also have a reasonable expectation their salespeople will behave in an ethical
manner. This is realistic and, as a result, Ted bears greater ethical
responsibility for his actions no matter how poorly the contest rules may be
written.
(6)
QUESTION 2 (CHAPTER 2)
[10]
Student answers will vary. Here is a sample answer.
Although telecommuting sounds utopian, it is not always a panacea (1). On the
positive side, telecommuting and virtual offices give the freedom and flexibility to
work from home and can make the logistics of organising meetings easier (3).
However, on the negative side, telecommuters can feel cut off from team members
and the company’s culture (2). Also, it is difficult to communicate one’s full
information or meaning over the phone or via e-mail (2). Even if salespeople work
remotely, it is a good idea to have in-person meetings at least several times a year to
make everyone feel a part of the company (2).
QUESTION 3 (CHAPTER 3)
[15]
Personal selling contributes to the overall marketing mix primarily through the
promotion mix or marketing communications mix. The organisation can use
personal selling to communicate the value proposition to customers. However,
salespeople can also contribute to the product itself by providing information back to
marketing about customer product needs and wants, which can lead to adjustments
in the product or even new products. Likewise, salespeople contribute to the place
or distribution of the product and the price by providing information from the
customer that is learned as part of their customer relationships.
(8)
Marketing contributes to personal selling because each of the elements of the
marketing mix – product, place, price, and promotion – plays a large part in forming
and communicating the overall bundle of benefits that a customer ultimately will
perceive as the value proposition. Thus, salespeople benefit from a well-executed
marketing mix strategy. In addition, marketing contributes to successful relationship
selling through systems, such as customer relationship management systems (CRM)
that provide needed customer and market information for the selling process.
(7)
QUESTION 4 (CHAPTER 5)
[30]
This case asks students to consider the various means of prospecting and to
evaluate their potential effectiveness for Rafael as he begins his career with Strong
Point Financial Services. Answers to questions for this case are included in the
sections “Sources of Prospects” and “Set a Systematic Prospecting Plan.” Students
should be encouraged to evaluate each prospecting method’s likelihood for success.
Many students may discount the effectiveness of cold calling in this situation even
though several firms in this and other industries thrive on such a practice. As
Marking Memorandum: 2nd Semester 2012
© IMM Graduate School of Marketing
SALM/SAM101
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mentioned in the chapter, prospecting is a numbers game.
Therefore, any activity that allows the sales representative to build a database of
potential customers will pay dividends in the end.
Answers to Questions
4.1
Rafael has decided to use cold calls, directories, and trade shows as his initial
methods of prospecting. The cold calls are the result of Rafael “knocking on
doors” while the directories will come from his use of the chamber of
commerce lists of individual business owners and the trade shows will come
from him setting up a booth at the local home show. In addition, John has
suggested that Rafael use conferences by indicating that he should conduct a
seminar on a topic appropriate for his intended audience. Given that Rafael is
just getting started in the business, these prospecting methods seem
appropriate. Despite Rafael’s enthusiasm for getting started, he should be
careful not to try too many things at once. Rather, a more structured approach
is in order. Rafael should use the methods he has mentioned already,
measure the results and try new methods when needed.
(10)
4.2
Other sources of prospects that Rafael should try to continue developing his
database of potential customers include loyal customers, endless chain
referrals, civic and professional groups, written correspondence, and social
networking web sites. As Rafael begins to win customers and provide
investment services for clients, he will undoubtedly get referrals from satisfied
clients. In addition, asking customers, or even prospects that do not use
Rafael’s investment service, for the names of others who might benefit from
what he has to offer will allow Rafael to use the endless chain of referrals
method of prospecting. Civic and professional groups would be a good
method for Rafael to use. He could implement this method of prospecting by
joining the local Rotary club or Kiwanis organization. Such organizations have
other individuals as members that may be a valuable source of leads. Finally,
Rafael may want to use written correspondence. The written correspondence
should be a personalized letter to the prospect introducing Rafael, his
company, and a brochure outlining the type of services he provides.
(10)
4.3
For Rafael to get the most out of his prospecting efforts, he should follow the
advice provided in the “Set a Systematic Prospecting Plan” section of the
chapter. The advice provided includes: a) setting daily, weekly, and/or
monthly goals for the number of prospects identified that are specific,
measurable, and attainable, b) studying and practicing the various methods of
prospecting so that he knows which approach will work in different situations,
c) keeping good records so Rafael knows the particulars of each contact he
has made, d) being prompt to follow-up with prospects so that they still have
the initial information he provided on their mind, e) paying attention to the
results of the prospecting efforts so that Rafael will know which methods are
most affective for generating paying clients, and finally, f) making use of
available technology in the most effective manner to support the prospecting
efforts. Following this advice should ensure greater success for Rafael in his
prospecting efforts and his ongoing sales career.
(10)
Marking Memorandum: 2nd Semester 2012
© IMM Graduate School of Marketing
SALM/SAM101
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QUESTION 5 (CHAPTER 5)
[15]

A salesperson should research the customer by using the Internet and by talking
to employees or non-competing clients in order to understand the business and
needs of the potential customer.
(3)

A salesperson should analyse the different ways he or she can add value for a
potential customer.
(3)

A salesperson should determine the potential customer’s geographic location, the
salesperson’s ability to get an appointment with the customer, and what type of
contact is needed to develop the relationship.
(3)

The salesperson should determine (a) if the potential customer can and will make
a purchase, and (b) how much effort and investment might be needed to obtain
the purchase. Therefore a salesperson must ask the proper questions relevant
to the customer’s means and authority to make the purchase.
(4)

Either the credit department of the firm or the salesperson should determine the
prospect’s financial status.
(2)
PRESENTATION
[10]
ASSIGNMENT TOTAL: 100
Marking Memorandum: 2nd Semester 2012
© IMM Graduate School of Marketing
SALM/SAM101