Ivey Publishing

Sales Force Management

Johnston, M.W., Marshall, G.W.,10/e (United States, McGraw Hill Irwin, 2011)
Prepared By Seung Hwan (Mark) Lee, PhD Candidate
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introduction to Sales Management in the Twenty-First Century

Simon Parker, Ken Mark

Product Number: 9B09M070
Publication Date: 10/21/2009
Length: 17 pages

The president, chief executive officer (CEO) and director of Sofame Technologies Inc. (Sofame) is trying to boost sales at his firm. Sofame is trying to figure out why, with proven environmentally friendly technology, it is unable to achieve rapid rates of growth. The purpose of the case is to exhibit the issues and challenges in selling new technology and to highlight key elements of entrepreneurship, such as sales strategy and managing the sales cycle.

Teaching Note: 8B09M70 (9 pages)
Industry: Manufacturing
Issues: Sales Management; Market Segmentation; Growth Strategy
Difficulty: 4 - Undergraduate/MBA

June Cotte, Alan (Wenchu) Yang

Product Number: 9B04A015
Publication Date: 9/20/2004
Revision Date: 10/7/2009
Length: 14 pages

The top sales person for Alchemy Training Firm has visited three potential clients, an existing customer, a warm call referral and a cold call, to sell a new offering from the company. While the company was well-known for providing top quality sales management training programs, the owners have decided to branch out with a new offer of supply chain management/purchasing training courses. The sales person must prepare a report of these sales calls for a planning session, and is concerned that the outcome may not be successful. He wonders what he could have done differently. The case highlights the difficulties in selling a new intangible service when firm reputation, trainer reputation, and course customization opportunities compete with cost as main buyer priorities. The differing opinions of the owners on the firm's growth strategy are an issue, as well.

Teaching Note: 8B04A15 (5 pages)
Industry: Educational Services
Issues: China; Sales Management; Corporate Strategy; Sales Strategy; Services
Difficulty: 4 - Undergraduate/MBA

Chapter 2:
The Process of Selling and Buying

Frederic Brunel, Deborah Utter

Product Number: 9B09A004
Publication Date: 4/7/2009
Revision Date: 4/29/2010
Length: 20 pages

By 2006, Phillips Food Inc. had grown into one of the largest seafood businesses in the United States and was the number one U.S. brand for crab meat. The company comprised a restaurant division, a foodservice products division that sold to restaurants, and a retail products division that sold to grocery stores. In August, 2006, Phillips' product manager was responsible for defining the communication strategy decisions required to launch its new product: first-to-market pasteurized king crab. The product manager had already spent half of his advertising budget promoting the product to buyers in the foodservice and restaurant channels. He had to decide how to spend the remaining portion of his budget to best reach seafood buyers in the consumer retail channel. He had an opportunity to showcase the product at an upcoming major industry food show; however, he had already planned to spend his budget on advertising in a trade publication for the retail grocery channel. He had to examine the relative merits of each option and present an overall recommendation on how to best launch and sell the product. Qualitative, quantitative and financial aspects were to be considered; as well, the product manager had to determine the costs, returns and qualitative benefits that each option provided.

Teaching Note: 8B09A04 (19 pages)
Issues: Sales Management; Distribution; Trade Advertising; New Product Development; Trade Show
Difficulty: 4 - Undergraduate/MBA

Joerg Dietz, Ankur Grover, Laura Guerrero

Product Number: 9B07C042
Publication Date: 3/17/2008
Revision Date: 3/24/2009
Length: 14 pages

A recently hired U.S.-trained sales account manager at Medical Equipment Inc. (Medical Equipment) returned to his office after meeting with the head of the cardiology department at a specialist hospital and research center in Jeddah, Saudi Arabia. He had worked very hard to secure his first sale of US$725,000 for healthcare equipment, but was disheartened when the head of cardiology told him that the hospital's purchasing director intended to give the order to Medical Equipment's main competitor. The competition's sales representative and the purchasing director had known each other for 10 years and the head cardiologist implied that there might be side payments involved. The sales account manager knew Medical Equipment's product was superior and wondered how he could secure the order without having a history with the purchasing director or without engaging in practices he found ethically questionable.

Teaching Note: 8B07C42 (8 pages)
Industry: Manufacturing
Issues: Intercultural Relations; Sales Management; International Business; Ethical Issues
Difficulty: 4 - Undergraduate/MBA

Chapter 3:
Linking Strategies and the Sales Role in the Era of Customer Relationship Management

Mary Conway Dato-on

Product Number: 9B10A008
Publication Date: 6/10/2010
Length: 15 pages

Ten Thousand Villages (TTV) is a nonprofit fair trade retail organization with a store located in Cincinnati, Ohio. During the store's opening and first two years of operations (2002-2004), Karen, the chair of the board of directors, and Cheryl, the store manager, struggle to develop a customer-focused plan to ensure sales increases for their unique operation. Marketing issues ranging from store location selection to inventory selection and promotion are presented. In addition to covering an alternative method of doing business - nonprofit enterprise - the case provides a platform for customer relationship management (CRM) implementation in a small, nonprofit environment.

Teaching Note: 8B10A08 (8 pages)
Industry: Social Advocacy Organizations
Issues: Not-For-Profit Marketing; Fair Trade; Retailing; Customer Value Segmentation
Difficulty: 3 - Undergraduate

June Cotte, Megan McCrae

Product Number: 9B04A014
Publication Date: 9/20/2004
Revision Date: 10/7/2009
Length: 9 pages

Candym Enterprises is a wholesaler specializing in producing, importing and exporting giftware, and selling these items through independent sales representatives. The president and founder has discovered that performance in one territory is falling. A major trade-show is approaching, and changes need to be made in the territory quickly. The president feels he has several options, including replacing an independent sales rep with a company sales rep, which would be a new strategy for the company. Learning objectives include understanding the pros and cons of salary-based relationship building, the importance of excellent customer relationship management, and recognizing that using distributors/independent sales reps has some risk.

Teaching Note: 8B04A14 (5 pages)
Industry: Wholesale Trade
Issues: Sales Organization; Sales Strategy; Compensation; Sales Management
Difficulty: 4 - Undergraduate/MBA

Chapter 4:
Organizing the Sales Effort

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

Donald W. Barclay, Ken Mark

Product Number: 9B05A015
Publication Date: 9/1/2005
Revision Date: 9/24/2009
Length: 4 pages

Due to differences in incentive compensation, work experience, and objectives, sales and marketing, in many organizations often clash. At Microsoft Canada, the national sales manager, Home & Entertainment Division and the group product manager for PC marketing are considering investing a recurring $1 million a year - 10 per cent of their combined promotional budget - to produce and maintain a consumer-focused website, Microsoft Home Magazine. This proposed investment comes at a time where sales growth is slowing in the firm's PC business. As a surprising twist for students, this case is unique in the sense that it highlights an example where sales and marketing work together to achieve a common goal.

Teaching Note: 8B05A15 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Sales Management; Marketing Management; Conflict Resolution
Difficulty: 4 - Undergraduate/MBA

Chapter 5:
The Strategic Role of Information in Sales Management

June Cotte, Peter Famiglietti

Product Number: 9B10A011
Publication Date: 5/21/2010
Length: 14 pages

The president of production at Hanson Productions, an off-Broadway production company, was faced with the same situation for every Broadway production: where to locate, how many seats, what to charge and how to promote and market the production. There are three separate venues, with three separate value propositions to the studio, case and audience. While bigger means more seats and more revenue for each show, there is a capacity percentage that must be factored in to the decision due to the increased rental costs. Smaller venues may lead to higher capacity percentages, but ultimately leave money on the table. The ticket prices must be set for advance sales; any change in price after this period will effectively hurt future sales - more so if the price is discounted. Determining a promotion partner may lessen the risk of a potential failure, yet cost more profit and affect the recoup schedule.

Teaching Note: 8B10A11 (8 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Sales Forecasting; Pricing; Pricing Strategy
Difficulty: 4 - Undergraduate/MBA

James A. Erskine, Adam Kramer

Product Number: 9B04C020
Publication Date: 6/24/2004
Revision Date: 10/7/2009
Length: 13 pages

InsureTech is an online insurance business focusing on the small business owner market. An analyst with the company was asked to investigate and determine a solution for the problem of tracking and reporting sales results, currently a manual process. The analyst assigned to the project would work independently and was aware that the success of this project would significantly benefit the company but would also boost his own career. After six months of working on the project, the analyst presented the new system to the management committee. The system was well received but there were some reservations; he felt these issues would be resolved within a year. The launch date was set for the following month and he prepared the plan to ensure a smooth implementation. Weeks after the launch, the analyst discovered that the sales staff was still using the manual process and feedback on the new system was not favourable. He must determine why the sales staff are reluctant to use the system and what steps to take to deal with this resistance to change.

Teaching Note: 8B04C20 (5 pages)
Industry: Finance and Insurance
Issues: Sales Management; Performance Measurement; Management of Change; Organizational Change
Difficulty: 4 - Undergraduate/MBA

Chapter 6:
Salesperson Performance: Behavior, Role Perceptions, and Satisfaction

Donald W. Barclay, Shamail Siddiqi

Product Number: 9B05A021
Publication Date: 9/1/2005
Revision Date: 9/24/2009
Length: 16 pages

The founder and chief executive officer of Global Source Healthcare was struggling with how to allocate sales resources among acquiring new accounts, penetrating existing accounts and up-selling existing accounts. Global Source Healthcare provided domestic and international staffing services to healthcare facilities. The company had been operational for a year and growth had been considerably slower than expected. What made this decision especially important was that the healthcare staffing market was experiencing a substantial downturn. Consolidation was occurring in the industry. Given the limited sales and financial resources of the company, this decision was critical to ensure the very survival of Global Source. Other issues that may be raised include understanding the sales strategy in the business and marketing strategy, motivating a sales force in a difficult, limited-resource environment, and understanding the trade-off between the length of the sales cycle and the size of the potential account.

Teaching Note: 8B05A21 (10 pages)
Industry: Health Care Services
Issues: Growth Strategy; Startups; Sales Strategy; Services
Difficulty: 4 - Undergraduate/MBA

Chapter 7:
Salesperson Performance: Motivating the 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 8:
Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople

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

Chapter 9:
Sales Force Recruitment and Selection

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

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 10:
Sales Training Objectives, Techniques, and Selection

Kyle Murray, Ken Mark

Product Number: 9B06A001
Publication Date: 2/6/2006
Revision Date: 9/8/2009
Length: 11 pages

The founder and owner of Jill's Table, a specialty food and housewares store is thinking about the challenges ahead of her. As a small business operating in the same arena as the mass merchandising chains, she has to decide how to position her service offerings so as to survive and even thrive in a highly competitive environment. As a Retailer of the Year award winner (2004 Canadian Gift and Tableware Association, Housewares and Gourmet Division), she knows that her challenges go beyond competition and touch on areas such as customer service, associate training, buying and finance.

Teaching Note: 8B06A01 (9 pages)
Industry: Retail Trade
Issues: Marketing Management; Leadership; Small Business; Services
Difficulty: 4 - Undergraduate/MBA

Chapter 11:
Salesperson Compensation and Incentives

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

Joerg Dietz, Ken Mark

Product Number: 9B01C010
Publication Date: 11/29/2002
Revision Date: 12/15/2009
Length: 9 pages

As a startup in the online sales incentives industry, SalesDriver had a unique product to offer: online sales contests. From its early stages, SalesDriver had a great product, e-tailer relationships and initial customers who were pleased with the service. What SalesDriver needed was personnel. SalesDriver's two co-founders were facing several challenges. They were both young and making their first independent leap into the dot-com industry. With limited funding and no hiring experience, they needed to put together a staff for their company and wanted to do so within a two-week time frame. Their first need was to hire a vice-president of sales, but their candidate of preference had 15 other job offers on his plate, so time was of the essence. How much should they offer? What incentives should they include? What kind of fit would they have as a working team and would they even have enough time to assess that fit? The two friends and business partners were faced with the difficult challenge of working out a winning offer that would persuade the right person to accept a position in their very young company.

Teaching Note: 8B01C10 (5 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: E-Commerce; Employee Selection
Difficulty: 4 - Undergraduate/MBA

Chapter 12:
Cost Analysis

Ho-Young Lee, Sangil Kim, Won-Wook Choi

Product Number: 9B09B014
Publication Date: 11/20/2009
Revision Date: 8/24/2016
Length: 8 pages

Korea Auto Insurance Co. Inc. (Korea Auto Insurance) incurred both direct and indirect costs. Direct costs were incurred at branches as they performed sales and operating activities, while indirect costs were incurred at headquarters as it supported branches through the activities of the information technology, operating support, investment, marketing and general administrative teams. Indirect costs accounted for a significant part (41 per cent) of the total costs incurred. However, they could be neither directly traceable nor logically related to specific sales activities. Korea Auto Insurance currently allocated indirect costs incurred by headquarters to branches based on sales revenue. Using the amount of sales revenue as an allocation base for overhead was not regarded as a reasonable method by the Taejon City branch manager. Branch managers had complained that the current allocation base was not related to the level of actual benefits they received from the headquarters. They argued that the allocation process distorted the operating performances of branches as reflected in the books. The manager of the Taejon branch suggested that the ABC (activity-based cost) method be applied to solve the problems related to the current overhead allocation process.

Teaching Note: 8B09B14 (9 pages)
Industry: Finance and Insurance
Issues: Management Decisions; Cost Allocations; Cost Accounting; Management Accounting; Ivey/Yonsei
Difficulty: 4 - Undergraduate/MBA

Claude P. Lanfranconi, Michael Wang

Product Number: 9B01B037
Publication Date: 1/8/2002
Revision Date: 12/7/2009
Length: 10 pages

Tricon Logistics China is the logistics department of Tricon Restaurants International (China) and is responsible for supervising the operations and cost management of supplies to Kentucky Fried Chicken and Pizza Hut restaurants from 12 distribution centres in China. The market manager of one of the regional companies is concerned about the performance of his company's affiliated distribution centre in Suzhou. The director of Tricon Logistics China must determine why the actual cost of the distribution centre have exceeded the targets by analysing performance, cost variance and internal price negotiation.

Teaching Note: 8B01B37 (8 pages)
Industry: Retail Trade
Issues: China; Cost Systems; Cost Control; Control Systems
Difficulty: 4 - Undergraduate/MBA

Chapter 13:
Evaluating Salesperson Performance

James A. Erskine, Fyodor Suzdalev

Product Number: 9B04C011
Publication Date: 6/24/2004
Revision Date: 10/6/2009
Length: 13 pages

A supervisor at a telesales office has received very low ratings on an employee survey and the marketing manager is concerned that this team leader is not performing well. The marketing manager must decide what actions are needed to improve the leadership skills of this supervisor.

Teaching Note: 8B04C11 (4 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Human Resources Management; Contracting; Performance Evaluation; Leadership
Difficulty: 4 - Undergraduate/MBA