KOÇ UNIVERSITY MKTG 450-Selected Topics in Marketing Sales Management Fall 2007 Instructor: Ayten Kök Office: CASE Building-156, Phone: 338 1451, Email: akok@ku.edu.tr Office hours: Monday and Wednesday 15:30-16:30 or Friday by appointment Prerequisite: MKTG 201 Course Objectives and Overview Sales management which can be defined as the planning, implementing, and control of programs designed to achieve the sales and profit objectives of the firm is the focus of the course. The course is concerned with how to manage a salesforce rather than how to sell. It aims to familiarize students with sales management concepts and to show examples of their application for the solving of business problems. The relationship of sales management with other marketing activities and how strategy drives tactics are shown. Case studies which indicate that sales management is concerned with strategic decision making along with carrying out of marketing programs will be worked out. A good understanding of the role of the sales executive in the design and development of corporate marketing programs will be provided. The course uses the lecture-case method. Important Course Policies/Procedures University rules and policies on academic honesty will be strictly enforced. The students are required to attend the course section for which they are registered. Regular and timely attendance at all class meetings is expected. Since the success of the course depends also on active participation by class members, attending class is a must. Being late to class must be avoided. Each student is expected to read and to get prepared to discuss in class all assigned readings and cases. The students are also expected to participate in discussions related to the presentation of the course projects. Students will be graded on overall class participation. Class participation grade will be dependent on the quality of the relevant discussions. Students should try to make effective use of discussion time by paying attention to the relevancy, and the value to be added to the discussion. Course Material Textbook Dalrymple’s Sales Management Cron, William L., Decarlo, Thomas E. 9th edition, ISBN 0-471-74319-4 Publisher: John Wiley and Sons Inc. Additional Readings and Other Course Material : Will be available electronically through the library e-reserve system. Harvard Business School Cases: Biomed Co., Ltd., Designing a New Sales Compensation Plan, Richard Ivey School of Business, product no. 906A37, Version (A) 2007-03-28 and Scalix Corporation, The Evolution of a Sales Model, Case SM147, Date: 01/19/06. 1 Coverage of the Course : Text Chapters Introduction to selling and sales management Strategy and sales program planning Channel strategy Sales opportunity management Account relationship management Distribution research Customer interaction management Organisation Recruiting and selecting sales personnel Sales training Motivating salespeople Compensating salespeople Evaluation of salesforce performance and controlling salespeople 1 2 3 4 5 6 7 8 11 12 13 Grade Determination: Midterm (November 7th) Participation in class In class exercises and homework Project (15% for written report, 5% for oral presentation) Final 25% 15 10 20 30 The final exam will be on cumulative basis. Case Assignments Harvard Business School Cases Biomed Co., Ltd., Designing a New Sales Compensation Plan, Richard Ivey School of Business, product no. 906A37, Version (A) 2007-03-28. Scalix Corporation, The Evolution of a Sales Model, Case SM-147, Date: 01/19/06 Textbook Cases Arapahoe Pharmaceutical Company BSI Hanover-Bates Chemical Corporation The Optics Corporation 2 Reading Assignments 1. Kim, W.Chan, Mauborgne, Renee, “Value Innovation: The Strategic Logic of High Growth”, Harvard Business Review, Jan.-Feb. 1997. 2. Rangan, Kasturi, V, Menezes, Melvyn, A, J, Maier, E.P., “Channel Selection for New Industrial Products. A Framework, Method, and Application”, Journal of Marketing, July 1992, pp. 69-82. 3. Anderson, Eric, Day, George S., Rangan, V. Kasturi, “Strategic Channel Design”, Sloan Management Review 38, no. 4(1997):59. 4. Leslie, Mark, Holloway, Charles A., “The Sales Learning Curve” , Harvard Business Review, 00178012, July 2006, Vol. 84, Issue 7. 5. Cooper, Robin and Kaplan, Robert S, “Profit Priorities from Activity-Based Costing” , Harvard Business Review, May-June 1991, pp. 130-135. 6. Reinart, Werner; Kumar, V., “The Mismanagement of Customer Loyalty”, Harvard Business Review, July 2002, Vol. 80 Issue 7, pp.86-95. 7. Erffmeyer, Robert C., Johnson, Dale A., “An Exploratory Study of Sales Force Automation Practises: Expectations and Realities, Journal of Personal Selling and Sales Management, 08853134, spring 2001, vol. 21, issue 2. 8. Saffo, Paul, “Six Rules for Effective Forecasting”, Harvard Business Review, Managing for the Long Term, July-August 2007. Project Deadline for Written Report: December 3rd, 2007 Oral Presentation: On an assigned day, for each group, between December 3- 26. Students will be grouped into teams of 3or 4 and they will be working as a team in the project to be undertaken to investigate the sales management functions being performed, and the sales management concepts and techniques being applied in the company selected for the exploration. The students must get approval on the company selected. The teams will give special emphasis to a specific area in sales management and will evaluate the practices and will come up with recommendations for changes. This part of the work has to be supplemented with secondary research. Background information on the position of the company in the industry it belongs to and the profile and organization of the company must be included in the report. A selling application that is unique for the industry/or the company has to be fully explored to bring information to class during project presentation. Students are expected to report on the progress of the project and also ask for advice in the office hours of the instructor. The expected coverage of the report is listed below. Coverage: The profile of the industry in which the selected company is situated The company profile and organisational setup The detailed marketing organisation The functions of the sales manager The type/s of selling job The sales organisation Recruiting and selection practices 3 Training Evaluation of salespeople and compensation Quotas Major accounts Distribution channels Value-added services Customer Relations Management Sales support activities Computerbased systems The team’s evaluation of the management of sales in the company and recommendations with special emphasis, through a detailed analysis, to a specific area to be selected for exploration. Grading of the project For the report, each team gets a single grade. Team members will be graded individually for the presentation. 4