Ivey Publishing

Management of a Sales Force

Spiro, R., Stanton, W.J., Rich, G.A.,12/e (United States, McGraw-Hill Irwin, 2008)
Prepared By Fabrizio Di Muro, PhD Candidate (Marketing)
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Field of Sales Force Management

Donald W. Barclay, Michael J. Carter

Product Number: 9A98A002
Publication Date: 2/2/1998
Revision Date: 1/22/2010
Length: 16 pages

The acquisition of A.T. Kearney Ltd., an international management consulting firm, by Electronic Data Systems (EDS), an information systems company, raised many issues. Among these was the issue of how to leverage the merger in terms of providing strategic consulting and information systems solutions to clients. Should the two firms cross-sell each other's services? Should A.T. Kearney call on existing EDS clients and vice-versa? Should the two firms work together to secure new clients? The case focuses on the chairman of A.T. Kearney Ltd. in Canada as he prepares to deal with the above issue. Once this issue has been worked through, there is an opportunity to deal with sales management issues arising from this decision. For example, if cross-selling is to be encouraged, what incentive scheme might be appropriate? The purpose of the case is to show how sales management decisions must be driven by marketing strategy and the desired customer interface that marketing strategy implies.

Teaching Note: 8A98A02 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Consolidations and Mergers; Relationship Management; Sales Strategy; Consulting
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
Strategic Sales Force Management

Donald W. Barclay, Ken Mark

Product Number: 9B01A001
Publication Date: 5/18/2001
Revision Date: 12/3/2009
Length: 12 pages

The vice-president international of WaveRider Communications, a developer of wireless information technology, was working out a deal for a Spanish partner to sell US$21 million of WaveRider's products into the Spanish market over the next two years. After months of negotiation, a memorandum of understanding was signed and he was looking forward to the final agreement within the next 30 days and finalizing the ground-level support that needed to be in place to facilitate the working relationship between the two companies. He hired a consultant who worked in Spain for a number of years to be the company's contact in Spain. To move towards the signing of the final agreement, the vice-president needed to decide on how best to manage and work with this company over the next few months and over the longer term.

Teaching Note: 8B01A01 (11 pages)
Industry: Manufacturing
Issues: Action Planning and Implementation; Sales Management; International Business; Control Systems
Difficulty: 4 - Undergraduate/MBA

Donald W. Barclay

Product Number: 9A98A003
Publication Date: 3/20/1998
Revision Date: 1/22/2010
Length: 2 pages

The rapidly changing environment of the pharmaceutical industry has lead to the acceleration of a rift between marketing and sales in a pharmaceutical firm, and to a stronger need to tightly integrate these two functions. The case is a vehicle to initiate discussion around potential structural, systems, and informal approaches to building bridges between marketing and sales.

Teaching Note: 8A98A03 (7 pages)
Industry: Manufacturing
Issues: Interdepartmental Relations; Conflict Resolution; Organization Systems; Marketing Management
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Personal Selling Process

Donald W. Barclay, Ken Mark

Product Number: 9B01A003
Publication Date: 5/18/2001
Revision Date: 12/3/2009
Length: 16 pages

WaveRider Communications, a wireless Internet access equipment provider, had just completed the first installation of its latest system. The vice-president of marketing had to deal with two key sales issues that had recently surfaced. First, as compared to initial expectations, it had been taking at least twice as long for the company's salesforce to sell its new portfolio of products. Second, he noticed a sharp increase in the number of customers relying on WaveRider's post-sales support. He must examine the impact of the longer sales cycle on a number of company issues, such as type of salesforce and support needed, costs to serve, revenue generation, and share price. He also wanted to determine if more could be done to educate the customer during the selling period in order to facilitate smoother implementation.

Teaching Note: 8B01A03 (10 pages)
Industry: Manufacturing
Issues: Action Planning and Implementation; Sales Management; Sales Strategy; Product Management
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
Sales Force Organization

Donald W. Barclay, Geok Theng Lau

Product Number: 9A89A001
Publication Date: 7/9/1992
Revision Date: 3/10/2004
Length: 21 pages

The Adhesive, Tape and Allied Products Group reorganized its salesforce from a specialized one (where salespeople sold only products within one of four product areas in the group) to a general one (where salespeople sold all products within the group) four years ago. The decision was under review due to problems such as reduced product knowledge and competition among marketing people for the salespeople's time and effort.

Teaching Note: 8A89A01 (10 pages)
Industry: Manufacturing
Difficulty: 4 - Undergraduate/MBA

Chapter 5:
Profiling and Recruiting Salespeople

June Cotte, Alan (Wenchu) Yang

Product Number: 9B03A009
Publication Date: 8/6/2003
Revision Date: 10/15/2009
Length: 14 pages

Jindi Enterprises is a manufacturer of heat exchanger units for residential and commercial markets in China. Recently, the company's top sales representative, who is also the sales manager for one of the company's provincial offices, quit and joined a competitor. A replacement must be found, however, a delay in choosing a strategic direction is seriously complicating the hiring decision. The chief executive officer must determine the corporate strategy and ensure that the hiring strategy reflects these changes. Learning objectives include understanding that corporate strategy and sales hiring and selection strategy are inter-related and must be integrated, that hiring criteria may have to change to reflect strategy changes, and that sales and sales management practices in emerging markets can be different than those in mature markets.

Teaching Note: 8B03A09 (8 pages)
Industry: Manufacturing
Issues: China; Sales Management; Sales Organization; Strategic Change; Sales Strategy
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Selecting and Hiring Applicants

June Cotte, Alan (Wenchu) Yang

Product Number: 9B04M089
Publication Date: 11/23/2004
Revision Date: 10/15/2009
Length: 14 pages

The sudden resignation of the company's national sales manager has left the vice-president of sales and marketing stressed and concerned. He must decide on the successor from a pool of five candidates and is finding the decision difficult, not only because of the strengths and weaknesses of each candidate but this sudden resignation has him wondering about his authority and credibility within the organization.

Teaching Note: 8B04M89 (7 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: China; Sales Promotion; Sales Management; Sales Organization; Sales Strategy
Difficulty: 4 - Undergraduate/MBA

Donald W. Barclay, Herb F. MacKenzie

Product Number: 9A89A011
Publication Date: 1/1/1989
Revision Date: 3/24/2004
Length: 21 pages

The branch manager for Windsor Factory Supply, and a salesperson at the branch, were deciding whether to hire additional salespeople. Two people had approached the company wanting sales positions. They were faced with the decision of whether to hire either or both of these applicants, and whether the applicants would fit with the strong corporate culture that had developed since the company started. This case could also be used to discuss the role of the industrial distributor. (A supplement to this case, Windsor Factory Supply (B), case 9A89A012, is available.)

Teaching Note: 8A89A11 (6 pages)
Industry: Wholesale Trade
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
Developing, Delivering and Reinforcing a Sales Training Program
Chapter 8:
Motivating a Sales Force

June Cotte, Shawn Melito

Product Number: 9B04A009
Publication Date: 5/14/2004
Revision Date: 10/7/2009
Length: 3 pages

A recent MBA graduate has joined a small division of a medical equipment manufacturer as a regional sales manager. Sales are not going well, customer complaints are common, and he is unhappy with the amount of time he must spend away from home. The regional sales manager must analyse his options to determine the best way to balance the rigours of a sales career and personal life. He must consider the challenges of an undefined, boundary-spanning role; management's possible role in mitigating these challenges; and the expectations about the rigours of a sales career.

Teaching Note: 8B04A09 (2 pages)
Industry: Manufacturing
Issues: Career Planning; Sales Management; Family-Work Interaction
Difficulty: 4 - Undergraduate/MBA

Chapter 9:
Sales Force Compensation

Donald W. Barclay, Ponlerd Chiemchanya

Product Number: 9B06A037
Publication Date: 1/9/2007
Revision Date: 9/14/2009
Length: 13 pages

A recent MBA graduate was about to return to the family business, Biomed Co., Ltd. as its general manager. Biomed's parent company, Thai Drugs Co., Ltd. has just revised Biomed's market strategy, a change that created the need to align the sales compensation system to fit with the new strategy. The new general manager was charged with this responsibility. Students will work through the path from strategy to a powerful sales compensation plan that will support the strategy and encourage to execute the role of the salesforce within this strategy.

Teaching Note: 8B06A37 (13 pages)
Industry: Manufacturing
Issues: Human Resources Management; Compensation; Managing Implementation; Sales Management
Difficulty: 4 - Undergraduate/MBA

David G. Burgoyne, Lucie Cousineau, Dean Hillier, Queenie Jang

Product Number: 9A89A010
Publication Date: 1/1/1989
Length: 9 pages

The vice-president sales of a Canadian wholesale distributor of hardware products must present his proposal to change the sales force compensation program from straight salary to straight commission and to change the travel expense reimbursement from costs incurred to a flat annual budgeted amount per territory. There would be a three-year phase-in period but not all sales people would benefit nor be able to cope. The teaching objectives are to consider the advantages and disadvantages of different salesforce compensation plans; to address the implementation issues associated with changes in compensation plans; and to appreciate how what appears to be an operating decision can have significant strategic implications.

Teaching Note: 8A89A10 (4 pages)
Industry: Wholesale Trade
Issues: Sales Management; Compensation
Difficulty: 4 - Undergraduate/MBA

Chapter 10:
Sales Force Quotas and Expenses

Srinivas Sridharan, Ramasastry Chandrasekhar

Product Number: 9B06A010
Publication Date: 3/1/2006
Revision Date: 9/9/2009
Length: 10 pages

The general manager, sales, of Marico Industries Ltd. India, is thinking about the future of the company's central sales organization (CSO). The central sales organization has been around for five years and has met all its original objectives. However, with a rapidly changing industry, the very success of CSO is making it seem less relevant for the future. The general manager must decide if this is true or if CSO could transform itself to cater to the new changing needs of the Indian fast-moving consumer goods market.

Industry: Manufacturing
Issues: Sales Organization; Rural Marketing; Emerging Markets; Marketing Channels
Difficulty: 4 - Undergraduate/MBA

Chapter 11:
Leadership of a Sales Force

Donald W. Barclay, Joe Falconi

Product Number: 9B06A035
Publication Date: 2/26/2007
Length: 20 pages

In 2005, the vice-president of sales and marketing for the Canadian division of Spectrum Brands Inc. must determine his next steps regarding the structure of his sales force. Spectrum Brands (Spectrum), a global consumer products company formerly known as Rayovac Corporation, had made a number of acquisitions to diversify and expand its product and brand portfolio. With these changes, Spectrum had become a leading supplier of consumer batteries, lawn and garden care products, specialty pet supplies, and shaving and grooming products. The vice-president of sales and marketing was charged with the task of creating a national sales force from the teams of the newly merged companies. Knowing the importance of the sales function to each of these companies, he wanted to ensure; despite the differences among the diverse groups, that he still maintained a team which would effectively and efficiently continue to increase the sales of each business unit.

Teaching Note: 8B06A35 (13 pages)
Industry: Manufacturing
Issues: Sales Organization; Acquisitions; Change Management; Sales Management
Difficulty: 4 - Undergraduate/MBA

Chapter 12:
Sales Forecasting and Developing Budgets

Carol Prahinski, Eric Olsen

Product Number: 9B06D006
Publication Date: 8/21/2006
Revision Date: 9/16/2009
Length: 11 pages

The newly promoted inventory manager wonders if there is an easier, more reliable means of forecasting the sales demand. Currently forecasts are based on the plant manager, sales/marketing manager and inventory manager's knowledge of industry trends, competitive strategies and sales history. He must decide if using statistical forecasting methods would ease the forecasting process and make the forecast more reliable. Students are exposed to different forecasting techniques, including executive opinion, linear regression and time series. The data characteristics include seasonality, trend and random fluctuations.

Teaching Note: 8B06D06 (23 pages)
Industry: Manufacturing
Issues: Sales Forecasting; Demand Analysis; Planning Information; Uncertainty
Difficulty: 4 - Undergraduate/MBA

Chapter 13:
Sales Territories

Donald W. Barclay, Karen Boehnke

Product Number: 9A98A027
Publication Date: 10/30/1998
Revision Date: 1/22/2010
Length: 14 pages

Lexmark Canada is the Canadian arm of Lexmark Inc., the global manufacturer of computer printers and related products. Lexmark Canada had reorganized its salesforce into teams of salespeople to manage regions of Canada. This was a fairly dramatic shift from an individual-based structure and compensation system. There was mixed reaction to the change with the Quebec team recently losing two of its three team members. The case addresses salesforce organization and deployment issues, and the factors that need to be considered in making these decisions. It also demonstrates the linkages between sales management decisions, since in this situation reward and recognition, recruitment and selection, and training all needed to be revisited. Finally, it highlights the current shift to team selling in many industries.

Teaching Note: 8A98A27 (7 pages)
Industry: Manufacturing
Issues: Industrial Marketing; Relationship Management; Sales Organization; Sales Management
Difficulty: 4 - Undergraduate/MBA

Chapter 14:
Analysis of Sales Volume

Kenneth G. Hardy, Darroch A. Robertson, Ramasastry Chandrasekhar

Product Number: 9B04A029
Publication Date: 10/13/2004
Revision Date: 10/7/2009
Length: 22 pages

The new chief executive office of a struggling dotcom is faced with high costs and slow revenue generation - sufficient to have burned $Cdn20 million, and profitability was not yet in sight. Fortunately, his venture cap company was still willing to advance funds and he believed that he could nail down some elephant deals to save the enterprise. He had the option of chasing smaller deals for immediate cash. In what priority should he attack his strategic issues, and in particular, what size and type of selling opportunities should he pursue.

Teaching Note: 8B04A29 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Market Strategy; Sales Strategy; Opportunity Recognition; Information Technology
Difficulty: 4 - Undergraduate/MBA

Chapter 15:
Marketing Cost and Profitability Analysis

Michael R. Pearce, Michelle Kromer

Product Number: 9A99A023
Publication Date: 10/27/1999
Revision Date: 1/13/2010
Length: 7 pages

This case provides a detailed description of Tandy Corporation's Incredible Universe stores from 1992 to 1995: layout, major departments, advertising and promotion, location, staff and customers. These very large consumer electronics stores were launched in the belief that incredible selection, entertainment and service would be a formula that customers would love; however, the unprofitable performance of the chain to date raises questions about the future of this venture.

Teaching Note: 8A99A23 (8 pages)
Industry: Retail Trade
Issues: Competition; Consumer Behaviour; Retail Marketing; Profitability Analysis
Difficulty: 4 - Undergraduate/MBA

Chapter 16:
Evaluating a Salesperson's Performance

June Cotte, Alan (Wenchu) Yang

Product Number: 9B02A028
Publication Date: 1/9/2003
Revision Date: 10/29/2009
Length: 15 pages

AWARD WINNING CASE - This case was one of the winning cases in the 2002 Regional Asia-Pacific Case Writing Competition. Worldwide Equipment Ltd. is one of the world's largest manufacturers of heating, ventilating and air conditioning equipment. The Beijing regional sales manager has just heard that the sales performance of his office ranked the lowest among the sales offices in China. The sales Beijing force will not receive their year-end bonus unless the situation can be turned around quickly. He must determine whether the sales management process or a recent new hire on the sales force, whose hiring was strongly suggested by the manager's boss, are to blame for the poor sales performance and how to keep the situation from recurring.

Teaching Note: 8B02A28 (7 pages)
Industry: Manufacturing
Issues: China; Organizational Behaviour; Sales Management; Sales Organization; Performance Evaluation
Difficulty: 4 - Undergraduate/MBA

Chapter 17:
Ethical and Legal Responsibilities of Sales Managers

Donald W. Barclay, Sean Barnhart

Product Number: 9A99A015
Publication Date: 10/27/1999
Revision Date: 1/12/2010
Length: 4 pages

A new sales representative for an educational book and software company is confronted by a request from a prospect for a deal. The request goes against company norms, but not against any firm corporate policy. He is caught on the horns of a dilemma which is heightened by the fact that he has not sold a lot recently and needs the commission to survive. This short case can be used to deal with ethical and other issues faced by salespeople.

Teaching Note: 8A99A15 (5 pages)
Industry: Manufacturing
Issues: Incentives; Ethical Issues; Sales Management; Personal Values
Difficulty: 4 - Undergraduate/MBA