Bus 258f
Sales and Sales Management
Tuesdays and Thursdays
2:00 – 3:30 pm
Fall Semester 2014
Lemberg 54
Grace Zimmerman
Senior Lecturer
Email: gzimmerm@brandeis.edu
Office:
Lemberg 161
Office Hours: Mondays and Wednesdays
11:00 – 12:20
and 2:00 – 3:00 pm,
or by appointment
Brandeis University
International Business School
Course Description
To be successful in business, you have to be able to sell yourself, your ideas, your
product and your company. Indeed, one of the primary skills any good CEO must have
is the ability to sell her ideas and passion to shareholders, the board of directors, senior
staff, employees, customers, vendors and lenders.
Sales is the ability to learn about a customer’s needs in order to present just those
products and services offered by the organization that most effectively help the customer
achieve her stated goals, secure her commitment to buy the product, receive payment,
provide installation and ongoing service and maintain a positive relationship over time.
Obviously, the sales function is central to every enterprise, as every enterprise needs
revenues. This course will explore professional sales concepts and techniques, as well as
options and methods to best manage the company’s sales force.
In most classes, we will analyze case studies that require us to identify sales and sales
management opportunities and challenges, and to develop strategies to maximize revenue
and customer satisfaction while optimizing costs to sell, service and maintain the
customer relationship.
Learning Goals and Outcomes
Through case study discussions, you will learn to:
 Analyze and solve complex sales and sales management problems through case
discussion.
 Evaluate applicability of sales and sales management concepts and techniques in a
variety of enterprises and markets, including, but not limited to financial services,
consulting, and high technology sales.
 Build a persuasive argument
 Express that argument extemporaneously in the classroom among peers, in
writing and in with the aid of visuals in a formal presentation
 Make marketing and sales management decisions backed by solid reasoning
 To listen critically and respectfully to the ideas of classmates.
Course Approach
This course will combine case study pedagogy with a professional online sales training
program. The first half of the module will be based on the sales training program and
will explore professional B2B selling techniques. The second half of the module will
utilize case studies to explore B2B sales management issues and strategies.
In each session of this course we will analyze and solve selling and sales management
challenges. We will use our time together in the classroom to sharpen our skills in
diagnosing problems and to build a framework to understand and leverage individual
sales representative’s and sales manager’s opportunities.
To benefit from this approach, each student must come to class prepared either with the
sales training materials and exercise assignments or with an analysis and solution for the
sales management opportunity or challenge at hand, not simply regurgitation of case
facts. Class time together will follow a discussion format, with a constant challenging of
viewpoints from the instructor and student alike. Meaningful, daily participation is
essential.
Course Materials
Textbook: We will not be using a textbook per se for this course. Instead, we will use
an online professional sales training program from Rain Group called Rain Selling,
Harvard Business School cases and notes. The HBS cases and notes are included in the
coursepack.
I also highly recommend a Harvard Business Review Special Double Issue: Sales,
Managing Global Accounts, HBR R0709G, and a classic sales book by Dale Carnegie:
How to Win Friends and Influence People. The book is sold widely. You can buy new,
used and electronic copies at Amazon and other booksellers, any edition will do. It is an
older book, but a classic for very good reasons. It’s a quick and powerful read. Don’t
overlook it. The cheapest ($16.95) and easiest way to buy the HBR Special Sales edition
is by following this link:
http://beta.zinio.com/www/browse/issue.jsp?skuId=150962285&categoryId=47
RainSelling (the online professional B2B sales program): This sales training program
is typically sold to corporations for their professional B2B sales representatives at a cost
of $200/month/sales rep. We are lucky to be able to access this fabulous program for
$60/student for the module. The president of Rain Group will be the opening class
speaker. He will see how many of us there are. Please don’t infringe copyright material
and jeopardize future student access to this program. Buy your own access to the
program. I’ve negotiated a fabulous deal for us. Here’s the link:
http://store.rainsalestraining.com/product?catalog=TP-002Orglv
Once on this page, you will be able to create a username, password and enter payment
information for the program through PayPal ($60 for the course). You will receive a
confirmation email of your payment. Once you’ve registered, you can go to:
www.rainselling.com/moodle
CoursePack: Case studies are the focal point of most class discussions. Course packs
with the cases we will cover are REQUIRED and only available through Harvard
Business Publishing at http://hbsp.harvard.edu/, with a specific link to our course pack at:
https://cb.hbsp.harvard.edu/cbmp/access/27988992 Course packs are comprised of
copyrighted materials. Again, please respect intellectual property by purchasing your
own copy of the materials.
Syllabus Changes and Updates
The intention is to follow the syllabus as presented. However, changes to both order and
content will occur to make the best use of available or new resources, or to explore in
greater detail topics that arise during class discussions. Changes and specific
assignments will be announced during class, and students that are absent are responsible
for obtaining relevant changes from their classmates.
Grading
For the purpose of grading, assignments will be weighted as follows:
Class Participation
Case Write Up
Negotiation exercise
Sales Negotiation Exercise
TOTAL
40%
30%
10%
20%
100%
Disabilities: If you are a student with a documented disability on record at Brandeis
University and wish to have a reasonable accommodation made for you in this class,
please see me immediately.
Academic Integrity: You are expected to be familiar with and to follow the University’s
policies on academic integrity (see http://www.brandeis.edu/studentlife/sdje/ai/).
Instances of alleged dishonesty will be forwarded to the Office of Campus Life for
possible referral to the Student Judicial System. Potential sanctions include failure in the
course and suspension from the University.
Class Participation. Students are expected to attend every class and participate on a
regular basis. Less value will be placed on the quantity of your contributions than on
their quality. Participation is graded daily, as follows:
-5 absent without prior notification
-3 absent with prior notification
0 present but without a class contribution
+1 contributed a case fact
+2-3 contributed analysis or a reasoned recommendation
+4-5 contributed excellent analysis and/or reasoned recommendation
For many students, qualitative analysis comes more easily than quantitative analysis,
therefore, I will on occasion cold call students to present their quantitative analysis to the
class. Be prepared. If you are hesitant to participate in class, please come to see me. I
will work with you.
Absence from two or more classes can result in a failing participation grade for this
course. If you have to miss class for any reason, please notify me in advance. Further
and importantly, anyone interested in taking this course MUST ATTEND THE FIRST
DAY OF CLASS. NO EXCEPTIONS!
Many of you will bring your laptops to class. This is fine if you are using your laptop to
access the case we are discussing or your notes on the case. Using your laptop or other
electronic devise to access the Internet is distracting to others and is not acceptable. You
will be marked as though you were absent if you are online during class.
To allow me to get to know you more quickly, please send me an email with your
preferred email address and a few sentences about your work experiences and career
goals. Also, please select your seat for the semester by the start of the second class, and
use a name card, at least for the first several sessions.
Simulation Exercise. For class #4, Thursday, November 7, you will take the simulation
exercise in the RainSelling program, parts 1 & 2. Submit screen shots of your scores.
Negotiation Exercise. For class # 5, Tuesday, November 12, you will participate in and
write up a negotiation exercise prior to class. Follow the instructions for the exercise
listed below. The analysis and negotiation are to be done on your own, without any
outside assistance.
Case Write-Up. For class # 9, instead of just preparing the case for class discussion,
students should submit their answers in a case write-up of up to 4 pages. This is an
individual assignment, one that you need to do entirely on your own. Cases should be
handed in at the start of class on Thursday, November 20. Submissions after the start of
class will not be accepted.
You have 4 pages in which to write your analysis. You can also include addenda, if you
need or choose to. This case analysis is no different than any of the cases we will do in
class. You will be practicing case analysis skills virtually every time you prepare for
class. Organize the relevant facts. Don't give me case facts that aren't pertinent to your
analysis; I've read the case, too. Do necessary analysis. Come to conclusions. Develop
detailed recommendations. Be sure that your logic flows from analysis through
conclusions to recommendations. Be persuasive. You don't have to follow the outline of
the questions in the syllabus, but you need to include the answers to the questions at a
bare minimum. I don't need beautiful prose; you can use bullets, etc., but if you use a
chart for pros and cons, say, be sure that you come to a conclusion. Cases write-up
grades will be based on completeness and quality of analysis and recommendations, and
the logic, strength and clarity of your arguments.
Office Hours
Office hours are Mondays and Wednesdays from 11:00 – 12:20pm and 2:00 – 3:00 pm
in Lemberg 161, and by appointment. I enjoy the opportunity to get to interact with
you as much as possible. Email has proven very helpful in this regard. Please don’t
hesitate to contact me if you need assistance in any manner, or have comments, concerns
or words of praise for some aspect of the course.
I can be contacted as follows:
gzimmerm@brandeis.edu
Assignments
Class #1:
Module:
Selling Value Propositions
What Sales Winners Do Differently
(Th, 10/23)
Pre-assignment:
Reading:
What Sales Winners Do Differently (Rain Group)
Personal Selling and Sales Management (HBS 9-507-039)
RainSelling: Lessons:
Keys to prospecting
Networking and relationship building
Keys to qualifying prospects
The RainSelling conversation framework
There are several different formats for learning the RainSelling method,
including: video, PPT, transcripts, MP3 and exercises. I think you will get
the most by viewing the video first and doing the exercises and concept
reviews, when available. I recommend the PPT, MP3 and/or transcripts to
reinforce the ideas once you’ve seen the video. I realize that this
preassignment and the assignments for the rest of this module will take
you well beyond the typical 2+ hours of viewing, reading and analysis.
Budget the time, come prepared to class. If this workload doesn’t match
your commitment to the class, now is the time to bow out.
Class #2:
Module:
Personal Selling Process
Discovery and Selling In
(Tues 10/28)
RainSelling: Lessons:
Maximizing the Impact of Your Solution
Bringing New Reality to Life
Telling a Convincing Story
Balancing Advocacy and Inquiry
Find your persona
Find “solution” in Maximizing Sales Achievement
Research:
For the class periods 2 and 3 we will practice the sales skills you will be
learning through the RainSelling program. View and prepare the lessons.
In addition, you will need to do some preliminary research and analysis on
a fictitious sales scenario so that we can role-play in class. On the next
page of this syllabus, you will see a competitive analysis that was done a
few years ago on the cell phone industry. You can use this analysis to
help guide your research, as a template, if you will, for our computer roleplay scenario.
Please research the competitive pros and cons for a Fortune 500 company
whose IT department wants to standardize on either Apple or PC laptop
computers for its professionals worldwide and in all departments.
Consider the 5Cs, 4Ps and all other relevant factors.
You will not know which product you will represent in your sales efforts,
so your research must prepare you to effectively sell either product; more
instructions to follow. We will role-play in class. Be prepared.
Role-Play
Preparation: RAPPORT, DISCOVERY and QUALIFICATION
Using your competitive analysis of the Apple and PC laptops, prepare
yourself to meet and begin the selling process with a Fortune 500
company in your territory. The company has many divisions. These
divisions use their laptops in the widest array of possible applications. As
with most companies, the majority of users use the basic functions of a
laptop: processing documents, running spreadsheets, making
presentations, communicating electronically, etc.
The company would like to standardize on one laptop brand for ease of IT
support, including: software, service, and security considerations. You
will be paired with a classmate. Each student will be assigned one of the
two laptop types. You will role-play; taking turns to be the client and the
sales representative.
To prepare for the role play you will need to consider the issues that a
Fortune 500 company faces in its IT choices and the pros and cons of your
product, and those of your competitor. Really thinking through “both
sides of the table” will help your sales efforts. As we know, you have to
understand your customer to be an effective marketer and salesperson.
In this FIRST “MEETING” with your prospect, the OBJECTIVES are
RAPPORT, DISCOVERY and QUALIFICATION. We will handle
objections and closing techniques in the next class period. Focus on
establishing a good working rapport, and learning all that you can about
your prospect’s needs, challenges, buying criteria and buying process.
Make sure that this prospect is worth investing additional time.
Page 91, Figure 5.7 Competitive Comparison Framework Chart:
Smartphone Market, Marketing Planning by Stephan Sorger, Pearson Publishing
Compiled in 2010 or so, clearly only for illustrative purposes, not up-to-date
Criteria
Market Share
(units)
Messaging
Competitive
Advantage
Strengths
Nokia
45%
Enabling mobility
by offering a range
of phones for
different
stakeholders
World leader; many
devices cover many
market segments
Large scale, good
design, and tight
operations
Exclusive focus on
hardware (vs.
software) led to
losing share in
smart phones
Nokia N97
Moderate;
subsidized by cell
phone carriers
Research In
Motion
Apple
HTC
19%
13%
6%
The cool phone, for
style-conscious
consumers
Stunning style and
design; iPhone
Apps; Steve Jobs
Outstanding brand.
Focus on enterprise Stylish design.
core business;
Profitable retail
strong security
operations.
Focus on e-mail for
enterprise
Optimized for email; government
approved security
Place
Low levels of
resources; slow
traction in
consumer market
BlackBerry 9700
Premium;
subsidized by cell
phone carriers
Wide distribution
Selective
through Alltel,
distribution
AT&T, BestBuy,
through T-Mobile,
MetroPCS, Sprint,
Verizon, AT&T. Can T-Mobile, U.S.
also purchase
Cellular, Verizon,
unlocked mobile
Virgin, WalMart
phones online
and more
Promotion
Advertise online at
nokia.com and on
carrier's website
Weaknesses
Product (Flagship)
Pricing
Promotions
through cellular
carriers
No clear succession
plan once Steve
Jobs leaves
Apple iPhone 3GS
Premium;
subsidized by cell
phone carriers
Exclusive
distribution via
AT&T Wireless
Services
AT&T website;
Apple website;
Steve Jobs keynote
speeches
Rapid evolution of
advanced
functionality, for an
"anti-iPhone"
Leverage power of
Google Android
operating system
Solid hardware.
Partnerships with
Google Android
and Palm webOS
Being sued by
Apple for patent
infringements
Droid
Premium;
subsidized by cell
phone carriers
Wide distribution
through Alltel,
AT&T, Qwest,
Spring, T-Mobile,
U.S. Cellular,
Verizon. Can also
purchase at HTC
online store
Social media, such
as HTC Wildfire
Friend Stream
promotion
Class #3:
Module:
Handling Objections and Closing Techniques
Leading Masterful Sales Conversations
(Th 10/30)
RainSelling: Lessons:
Overcoming Objections
Leading Sales Negotiations
Closing Sales
Role-play
Preparation: HANDLING OBJECTIONS and CLOSING TECHNIQUES
This is the follow up to the first set of “meetings” between you and your
prospect. In this role-play scenario, you will meet with your prospect to
address her needs and challenges with the features, functions and benefits
of your product and company. You will handle her OBJECTIONS and
make an effort to CLOSE the sale. As you did the last time, you will each
play the sales person and the Fortune 500 company prospect. You will
retain the laptop company assignment you were given the last time.
Class #4:
Module:
Selling Simulation, Parts 1 & 2
Professional Sales
(Tues 11/4)
RainSelling: Simulation part 1 & 2. Do the simulation as an individual assignment.
Submit a screen shot of your score sheet for parts 1 and 2 of the simulation
at the start of class.
Class #5:
Module:
Negotiating an OEM Deal
Sales Negotiation Exercise
(Th 11/6)
Case:
OuterBay and EMC
DUE:
Your hardcopy write up of the negotiation is due BEFORE the start
of class. Please remember, this is an individual assignment. Your
negotiation preparation write-up is to be analyzed and written
without consultation with anyone. Along with your name at the top of
your paper, please indicate the role you assumed for the negotiation
and your negotiation partner’s name (classmate). I will assign teams
and roles the week before the negotiation exercise. You will arrange
to meet your negotiation partner at a mutually convenient time prior
to our class session.
NEGOTIATION EXERCISE PREPARATION:
Questions:
1. What are the pros and cons of doing an OEM deal with EMC from
Michael Howard’s perspective? How might Howard’s list be different
from the board’s list or from Mark Burton’s perspective? What would
be the consequences to OuterBay if EMC did this type of deal with
Princeton?
2. From Scott Menzel’s perspective, what are the pros and cons of doing
a deal with OuterBay?
3. Based on EMC’s initial offer, which terms, or combination of terms
give you the most concern, in other words, what are the potential deal
breakers from your perspective? What would you be willing to offer
on these terms to try to come to an agreement? Where do you walk
away? In other words, what deal terms go too far?
4. Assuming EMC and Outerbay can come to terms, what steps does
Mark Burton need to take in order to maximize value from the deal
while retaining an effective and motivated internal sales organization?
TO BE COMPLETED AFTER THE NEGOTIATION:
5. Which side of the negotiation did you play? Did you or did you not
come to an agreement? If so, spell out the terms of your agreement,
and explain your rationale. Are you satisfied with the outcome of your
negotiation? Why or why not?
Class #6:
Module:
Selecting the Sales Process and Levers
Sales Management Strategy
(Tues 11/11)
Readings:
Business to Business Marketing
Case:
ENSR International (HBS 9-503-075)
Questions:
1.
2.
3.
4.
Class #7:
Module:
“Foot In The Door”
Selling In
Case:
SaleSoft, Inc. (A) (HBS 9-596-112)
Questions:
1. What is your plan? Do you plan to continue with PROCEED or
Will you introduce the TH product? Provide support for your plan.
2. What is the buying cycle for PROCEED? Who are the people
involved in the purchase of the CSAS solution? What is the role of
consultants?
3. What is SaleSoft’s current approach to selling PROCEED?
4. Quantify the benefits of CSAS to a customer using the information
given in Exhibit 7.
5. What value does TH provide a customer? How is this different from
the customer value delivered by PROCEED?
6. What is a Trojan Horse? How does it facilitate customer acquisition
and retention?
7. How will you price TH?
8. How do you think SaleSoft’s organization structure will affect its
ability to sell PROCEED or TH?
Which of the proposed solutions do you favor and why?
What is the ideal client for ENSR?
Are they getting enough of their ideal clients?
What is the ideal client for a CSC manager?
(Th 11/13)
Class #8:
Module:
All At Once
Selling In
(Tues 11/18)
Readings:
Sales Force Design and Management
Case:
HP – Computer Systems Organization: Selling to Enterprise Customers
(HBS 9-500-054)
Questions:
1. Is this the time for HP-CSO to institute more changes?
2. How is selling instruments (HP’s traditional business) different from
selling computer systems? Why does HP treat its sales force as a cost
center? What are the implications of such a structure?
3. What is HP-CSO’s approach to building relationships with Enterprise
customers? What are its strengths and weaknesses?
4. Do you agree with the findings of the two audits? What are the
consultant’s recommendations? How is the new approach different
from the HP-CSO’s current approach to managing enterprise
customers?
5. Are you comfortable with the conclusions of the audit? What are your
recommendations to Diaz?
Class #9:
Module:
Motivating Sales Behavior/Compensation
Sales Management Strategy
DUE:
Your hardcopy case write up is due BEFORE the start of class.
Please remember, this is an individual assignment. Your case
write-up is to be analyzed and written without consultation with
anyone. Be specific and detailed in you analysis and recommendations.
Case:
Sales Force Integration at FedEx (HBS 9-506-029)
Questions:
1. Compare the Express compensation with the Ground compensation
plan. What are the key differences? Why do you think these
differences existed?
2. What are the main objectives that Beyl and his team should consider in
setting the new compensation plan for the integrated sales force?
3. Devise a compensation plan that meets these objectives.
4. What criteria/metrics would you suggest Beyl use t evaluate the
effectiveness of the comp plan?
5. How will Ground/Express salespeople react to your plan?
(Th 11/20)
Class #10:
Module:
Sales Organization to Increase CRM/Structure
Sales Management Strategy
(Tues 11/25)
Case:
Lincoln Financial Group (A) (HBS 9-508-028)
Questions:
1. What do you think of the LFD concept?
2. What does the proposal have to do with “customer intimacy?” How
does this differ from what FedEx did?
3. Why would we expect retention or loyalty to increase as the number of
touch points increase? Why wouldn’t LFG just offer incentives for
their customers to have multiple touch points?
4. On p. 8 of the case, Thompson asks, “What if we had all of our
wholesaling efforts under one umbrella? How would that allow us to
serve our customer better?” What’s the answer to that question?
5. As Jon Boscia, how would you have weighed the feedback he received
from his top management team? Which of the arguments did you find
most compelling?
6. What are your primary concerns about the model?
7. Spend some time thinking about what Thompson needs to do to
implement this strategy?
Thanksgiving Weekend – Enjoy your holiday!!
Class #11:
Module:
Sales and Sales Management
Sales Strategy
Reading:
Dale Carnegie: How to Win Friends and Influence People
SPEAKER: Rob Malenfent, Morgan Stanley
(Tues 12/2)
Class #12
Module:
Outcome and Behavioral Sales Management
Relationship Between Marketing and Sales
(Th 12/4)
Readings:
HBR Personal Sales and Sales Management:
“Ending the War Between Marketing and Sales”
Case:
Avaya (A) (HBS 9-508-048)
Questions:
1. What are the main hurdles standing in the way of effective demand
Generation? What should Claereboudt and Gruenewald do to overcome these hurdles and build the demand generation engine they’re
trying to build?
2. What do you make of the “gap” that Charlie Ill talks about on p. 10 of
the case? What gives rise to this gap? Is this gap inevitable? What
are some of the implications of this gap?
3. What is the objective of Marketing? What is the objective of Sales?
How do we ensure that these objectives are aligned and reinforcing?
4. Once you come up with a plan for aligning Sales and Marketing, think
about how you might implement your plan in Avaya’s markets.
5. Look closely at Exhibit 7. If you were the sales manager in charge of
the Brazil market, how would you react to the fact that you converted
only 2.8% of Marketing leads to sales? If you were the marketing
manager, how would you react to the fact that only 30% of your leads
were accepted by Sales?