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Chapter Ten — Adding Value Learning Objectives 10-1 Explain the five sequential stages of self-leadership. 10-2 Identify the four levels of sales goals and explain their interrelationships. 10-3 Describe two techniques for account classification. 10-4 Interpret the usefulness of different types of selling technology and automation. 10-5 Delineate six skills for building internal relationships and teams. Chapter Outline Introduction-235 10-1 Effective Self-Leadership-236 10-2 Stage One: Setting Goals and Objectives-237 10-3 Stage Two: Territory Analysis and Account Classification-239 Stage Three: Development and Implementation of Strategies and Plans-242 10-4 Stage Four: Tapping Technology and Automation-247 Stage Five: Assessment of Performance and Goal Attainment-251 Increasing Customer Value through Teamwork-251 Internal Partnerships and Teams-251 10-5 Building Teamwork Skills-254 Chapter 10 Case-256 Chapter 10 Role Play-258 Exercises Developing Professional Selling Knowledge 1. Explain why setting goals and developing formalized selling plans are represented as key requirements for success in selling. Setting goals is a key requirement for success in selling because it allows salespeople to set work-related priorities and provides them a target to work toward. Without goals, salespeople would have trouble understanding the relative importance of the various selling tasks they need to complete or an effective order in which to complete them. Formalized selling plans are important because they represent the road map, including sales strategies and resource allocation, that salespeople should follow in order to effectively accomplish their goals. In addition, once a goal has been hit or missed, formalized selling plans allow salespeople to look back at the road map and evaluate their performance along the way. Salespeople can then modify their formalized selling plans accordingly. 2. Identify and discuss the three required characteristics of a goal or objective. The three required characteristics of a goal or object are: Realistic yet challenging, specific and quantifiable, and time specific. Goals must be realistic yet challenging in order to maintain the salesperson’s motivation. Salespeople will not be motivated to obtain goals they perceive as unattainable. Likewise, goals that are too easy to obtain will lower performance standards and reduce motivation. Goals must be specific and quantifiable in order for the salesperson to know exactly what the goal is and when the goal has been accomplished or attained. For example, the goal of getting some information about the prospect is ineffective because the salesperson will not know the type of information needed or how much is enough to accomplish the goal. Is learning the prospect’s name the desired type of information, and is it enough to accomplish the goal? Goals must be time specific so that salespeople know when they can assess whether they attained the goal. Consider the previous example: the goal of learning some information about the prospect does not have a time frame. If after a year the salesperson has not learned any information about the prospect, has the goal been missed? Without a time, frame tied to the goal, it is difficult to determine. 3. Explain the five sequential stages of self-leadership and how they affect selling success. The five sequential stages of self-leadership are (1) setting goals and objectives, (2) territory analysis and account classification, (3) development and implementation of strategies and plans, (4) tapping technology and automation, and (5) assessment and evaluation. Setting goals and objectives is important because it provides salespeople with performance targets and the ability to prioritize and allocate resources. Territory analysis is important because it allows salespeople to better understand their territories, including customers, prospects, competitors, and any other factor affecting their ability to compete. Account classification is important because it allows salespeople to meaningfully prioritize customers. By using the information gained in the first two stages, salespeople can develop strategies and plans that will guide them toward achieving their goals. This stage includes identifying and prioritizing the steps and resources necessary to accomplish the goals. Since salespeople’s resources are limited, they must understand and plan for how to best utilize them to accomplish their goals. Effectively tapping technology and automation not only adds to salespeople’s resources, it allows them to manage their time and territories more efficiently and effectively. Finally, assessment and evaluation are crucial to salespeople’s ability to improve their performance. Salespeople who regularly assess and evaluate their performance are able to identify problems as they arise and make the necessary modifications to reduce the likelihood of missing goals. 4. Develop an example of the four different levels of goals and how they are interrelated. Students’ answers will differ; however, each should contain an interrelated reference to personal goals, sales call goals, account goals, and territory goals. Here is an example (from Exhibit 10.2): 5. Using a map of your state or region, use city and town locations to establish routing plans using the straight-line, cloverleaf, circular, leapfrog, and major city methods. Students can look online (e.g., Google Images) for maps and then add the points and paths to create the patterns. Here is an example of a Cloverleaf Route Pattern: To establish routing plans using different methods, we'll need to use a map of a specific state or region. I'll describe how you can do this with a hypothetical example using major cities in a state. Let's consider a map with the following major cities in a state: A, B, C, D, E, F, G, H, I. 1. Straight-Line Method: Connect each city directly to every other city with a straight line. This method is the most direct but may not account for geographical features or road networks. 2. Cloverleaf Method: Arrange the cities in a circular pattern, like the leaves of a clover, and connect each city to its neighbouring cities in a circular route. 3. Circular Method: Choose a central city and connect all other cities to it in a circular route. This method is similar to the cloverleaf method but with a single central point. 4. Leapfrog Method: Arrange the cities in a line and connect every other city, skipping one in between. For example, connect A to C, E to G, etc. 5. Major City Method: Choose one or more major cities as hubs and connect all other cities to these hubs. This method is useful for organizing routes around major population centres or transportation hubs. These methods can be used to plan transportation routes, distribution networks, or any other system that involves connecting multiple locations efficiently. 6. Explain how a salesperson might use Internet-based, online product catalogues and presentation libraries to enhance his or her sales productivity. A salesperson might use online product catalogues and presentation libraries to enhance his or her sales productivity in several ways. However, two of the more common ways are provided as examples. First, online product catalogues allow a salesperson’s customer to make product inquiries and orders without the salesperson being present. In addition, new products and new promotions can be introduced to the customers without the salesperson being present. Second, Internet-based presentation libraries give the salesperson the opportunity to adjust his or her presentations at the customer’s site. This lets the salesperson make a more customized presentation, thus better addressing the needs of the customer. 7. Explain the weaknesses and strengths of the two methods for account classification. The primary strength of the single-factor analysis of account classification is its simplicity. It is very easy to use and understand. Its primary weakness is that it uses only one factor to classify accounts. Since many factors contribute to the sales potential of an account, using only one for classification may be misleading. The primary strength of the portfolio analysis is that it uses more than one factor to classify accounts. This reduces the likelihood of misclassification. Its primary weakness is that it is a complex method and may be difficult to understand and implement. 8. Why is a teamwork orientation important in selling? A teamwork orientation is important because selling is becoming more complex, with a greater focus on long-term inter-organizational relationships. Consequently, a greater number of personnel from both the buying and the selling organizations are required to develop and maintain successful and mutually beneficial relationships. In addition, the salesperson serves as the “point-person” for the relationships and must often work with other personnel from the selling organization, including marketing, customer service, and order-fulfillment in order to create and deliver a market offer customized to the needs of the customer. Put simply, the role of the salesperson is shifting from order taker to consultant and relationship manager. 9. Who are the individuals within the organization that salespeople are likely to team with, and how could such a team be advantageous to the salesperson? Salespeople are likely to team up with individuals from various departments, including sales, marketing, customer service, order fulfillment, and administrative support. Such a team could be advantageous to a salesperson because it would allow him or her to customize the market offer to the specific needs of each customer. For example, a salesperson might work with someone from the marketing department to design a promotional program tailored to the specific needs of a particular customer. In addition to helping salespeople generate revenue (with either existing or new customers), these types of teams will also help salespeople maintain and nurture existing relationships. For example, information from customer service and order fulfillment may allow the salesperson to identify and head off order fulfillment problems before the customer is aware of or affected by them. 10. What are the six teamwork skills? Explain why they are important for success in developing interpersonal relationships. The six teamwork skills include (1) understanding the other individuals, (2) attending to the little things, (3) keeping commitments, (4) clarifying expectations, (5) showing personal integrity, and (6) apologizing sincerely when a mistake is made. It is important to understand the other individuals so that one knows what’s important to them. In addition, understanding the individual well helps to improve communication. Attending to the little things is essential because it makes people feel important and that the other team members care about them. Keeping commitments is important because it helps develop and maintain trust within the group. Clarifying expectations is important because it ensures that all team members know what is expected of them. As with keeping commitments, showing personal integrity develops and maintains trust within the group. Finally, apologizing sincerely when a mistake is made helps to maintain group harmony and reduces the detrimental impact of the mistake on group dynamics. Group Activity Divide the class into groups of five to seven. Ask each group to discuss and answer the following questions: 1. What are the characteristics of a “good” group member? Group Activity: 1. Good group members are collaborative, communicative, and reliable. 2. Bad group members are unresponsive, dominant, and unreliable. 3. Group members contribute by sharing ideas, taking on tasks, and providing support. 2. What are the characteristics of a “bad” group member? Characteristics of a bad group member include being unresponsive, dominating discussions, and failing to fulfill responsibilities. 3. What are some different ways in which group members contribute? Group members contribute by sharing ideas, taking on tasks, and providing support to their peers. 4. How should you deal with a “bad” group member? Dealing with a bad group member involves addressing the issue directly, offering constructive feedback, and seeking solutions collaboratively to improve their contribution. 5. Is it important that everyone in a group participates and/or contributes? Yes, it's crucial for everyone to participate and contribute to ensure diverse perspectives and effective collaboration. 6. Why do some group members not participate and/or contribute? Some group members may not participate due to shyness, lack of confidence, or feeling overshadowed by dominant members. 7. How should you encourage/motivate a group member reluctant to participate and/or contribute? Encourage reluctant members by creating a supportive environment, assigning specific tasks suited to their strengths, and providing positive reinforcement for their contributions. After 10 to 15 minutes or so, ask each group to present and discuss its answers. Experiential Exercises Building Mastery of the Seven Teamwork Skills Objective: Your students will be able to understand and apply the key principles for successfully working in group and team settings. Time Required: 15 to 20 minutes Teaching Tip: Have the students complete this exercise individually or in small groups. Ask students to review the seven teamwork skills and then consider a time within this past year where work or class required them to work as part of a team. Based on their reflections, have them address the following two sets of questions: 1. Which of the seven teamwork skills did they apply? How did they impact the student and the team? In a recent group project, I applied communication by actively sharing ideas and updates, fostering collaboration and clarity. Collaboration was essential as we worked together to leverage our individual strengths and achieve our shared goals effectively. Problem-solving skills were utilized to address challenges and find innovative solutions, leading to successful outcomes. Decision-making involved weighing different options and reaching consensus, ensuring alignment with project objectives. Time management helped me prioritize tasks and meet deadlines, contributing to the overall efficiency and success of the team. 2. Which of the seven teamwork skills did they not apply? How did not applying these skills negatively impact the student and the team? How might using the missing skills impact the effectiveness of the team? The team did not apply active listening, potentially leading to misunderstandings and overlooked insights. This lack of engagement could have hindered problem-solving and decision-making processes. By incorporating active listening, the team could better understand diverse perspectives, foster collaboration, and improve overall team effectiveness. Working with Interdependent Levels of Salesperson Goals Objective: Provide students with experience in working through the different levels of salesperson goals and how they are all interrelated. Time Required: 8 to 10 minutes Teaching Tip: Have the students complete this exercise individually. Select one or two students to give their answers and explain their methodology. The correct answer for the territory sales goal is $900,000. As a salesperson for Allied Chemical Co., you are preparing for a planning session with your sales manager in which the two of you will work together to develop your territory sales quota for the next year. While your sales manager will input organizational objectives into the quota setting process, the sales manager has asked that you establish your personal sales goals for the upcoming year and bring those to the meeting. You plan to earn a total of $80,000 this coming year. Your base compensation is $4,000 per month. In addition to the base salary, Allied Chemical pays sales commission of 8 percent on annual territory sales over $500,000. What territory sales goal will result in producing your $80,000 personal earnings goal?
Target compensation $80,000
Base salary $48,000 (4,000 × 12)
Gap to be made up through commission $32,000 (80k – 48k)
Extra sales need to generate that much commission $400,000 (32k/0.08)
Total Sales Needed $900,000 (400k + 500k)
Video Exercise Adding Value: Self-leadership and Teamwork (Not reviewed) Scene 3A, Closing the Deal Part I, run time 2:02 minutes One of the most important factors in successful sales leadership is employing effective leadership and increasing customer value through teamwork. As you watch this video, keep in mind the internal partnerships that Lisa could employ to increase her customer’s value. Ask your students: 1. How could Lisa leverage internal partnerships to alleviate the concerns expressed in this segment? Mark’s concerns focus on the viability of the company (Alpha Tech) and the challenges associated with implementing a new software security system relative to upgrading the one that is in place. To help address these issues, Lisa should seek support from her marketing department, her software engineers, and her CEO. Her marketing department can help put together collateral pieces that support the viability of the company. They should include information regarding the installed customer base and the company’s history, track record, and growth strategy. The CEO, who has already agreed to meet with Mark, can also help reduce Mark’s concerns by meeting with him and assuring him of the company’s future. Lisa should partner with her software engineers to see what they can do about reducing implementation time and making the change over to a new system as smooth as possible. Lisa could ask one of the software engineers to join her in a meeting with Mark to reassure him that the implementation process will be smooth, fast, and trouble-free. 2. Prepare a memo to articulate the needs that Lisa will need to support her sales. Have students create a memo from scratch or by using one of the many memo templates available in most word processing applications (e.g., Word). Remind students that the memo should be concise yet compelling (they need to sell the concept internally). Memo: To: Lisa From: [Your Name] Date: [Date] Subject: Supporting Your Sales Efforts Dear Lisa, As you continue to pursue successful sales leadership and strive to increase customer value, it's essential to leverage internal partnerships effectively. Here are the key needs that you should focus on to support your sales efforts: 1. Collaboration with Product Development: Work closely with the product development team to understand customer needs and preferences. This collaboration will ensure that the products you offer align closely with customer expectations, increasing their value proposition. 2. Communication with Marketing: Maintain open communication with the marketing team to align sales strategies with promotional efforts. By coordinating your activities, you can ensure consistent messaging and maximize the impact of your sales initiatives. 3. Support from Customer Service: Build a strong relationship with the customer service department to address any customer concerns or issues promptly. Providing excellent customer support enhances the overall customer experience and reinforces the value of your offerings. 4. Coordination with Operations: Coordinate with the operations team to ensure smooth order processing and timely delivery of products. Streamlining these processes minimizes disruptions and enhances customer satisfaction, ultimately adding value to your sales transactions. By effectively collaborating with these internal partners, you can enhance the value proposition for your customers and drive success in your sales efforts. Best regards, [Your Name] Chapter 10 Case Universal Control Corp. Background Universal Control Corp. is a leading supplier for process control systems and equipment used in a wide variety of production and distribution applications. You have taken a sales representative job with Universal and, having just completed training, you have been given a territory of your own. Your district manager has provided you with a list of accounts as well as several boxes of notes and files that had been assembled and used by your predecessor. These are the accounts currently buying your products. You are expected to build these accounts and add new accounts to the list as you increase your territory’s sales performance. You have summarized the account information into the summary set of account profiles, which follows. Questions 1. Develop a portfolio classification of accounts and assess the allocation of sales calls your predecessor made over the past year.
Account Name Account Opportunity Competitive Position Annual Number of Sales Calls Last Year
Mueller Distribution High Low 30
Tri-State Specialties Low High 20
Birkey Paper Co. Low High 26
Normal Supply Low Low 12
Darnell Aggregate Products Low High 21
Reinhart Chemicals High High 26
ACCO Manufacturing Low High 23
Tri-State Manufacturing High Low 28
Ideal Engineering Low Low 11
Terracon High High 25
Lowry Foods High Low 26
SCS Industrial High High 27
Lowell Services Low High 18
Bowles and Sons Low High 21
American Foundry High Low 22
Hewitt & Associates Low Low 16
Bright Metals Inc. High High 22
Decatur Extrusions Low Low 14
King Chemicals Low High 22
Bear’s Steel Corp. Low High 20
Hoffman Pharmaceuticals High Low 20
Barlow & Clark Systems Low High 18
In general, the previous salesperson did a somewhat fair job of allocating sales calls. As shown in the table below, the salesperson allocated time equally to customers falling into the High Account Opportunity and High or Low Competitive Position. Customers characterized as Low Account Opportunity and Highly Competitive Position received a little less attention. Finally, customers falling into the Low Account Opportunity and Low Competitive Position received about half the attention of the next highest category.
Average of Annual Number of Sales Calls Last Year by Category
Competitive Position
Account Opportunity High Low Grand Average
High 25.00 25.20 25.11
Low 21.38 10.75 17.83
Grand Average 22.58 18.78 20.95
2. What problems do you find with the previous allocation of calls on these accounts? Students’ answers may vary; however, each should include some reference to the idea that the previous salesperson was allocating too much time to accounts in both the “low, high” and “low, low” groups. The salesperson should have allocated more sales calls to the first two groups. In addition, each should mention that the salesperson needed to allocate more time toward Bright Metals, Inc. The previous allocation of calls may lack fairness, as it appears to favor specific accounts over others. It also lacks transparency, as the criteria for assigning calls aren't clearly defined. Additionally, it may lead to resentment or dissatisfaction among sales representatives if they perceive certain accounts to be unfairly prioritized. 3. Based on your account classification analysis, suggest a new sales call allocation strategy that would make better use of your time in the territory. However, each should reflect a redistribution of sales calls weighted toward the first two groups, with the last group (low, low) receiving the lowest allocation. In addition, the total number of sales calls should not exceed the previous total (468). The following table is an example of a reallocation of sales calls based on the portfolio analysis.
Account Name Account Opportunity Competitive Position Annual Number of Sales Calls Last Year
SCS Industrial High High 40
Reinhart Chemicals High High 40
Terracon High High 40
Bright Metals Inc. High High 40
Mueller Distribution High Low 37
Tri-State Manufacturing High Low 37
Lowry Foods High Low 37
American Foundry High Low 37
Hoffman Pharmaceuticals High Low 37
Birkey Paper Co. Low High 11
ACCO Manufacturing Low High 11
King Chemicals Low High 11
Darnell Aggregate Products Low High 11
Bowles and Sons Low High 11
Tri-State Specialties Low High 11
Bear’s Steel Corp. Low High 11
Lowell Services Low High 11
Barlow & Clark Systems Low High 11
Hewitt & Associates Low Low 6
Decatur Extrusions Low Low 6
Normal Supply Low Low 6
Ideal Engineering Low Low 6
Role Play Situation: Read the case. Characters: Zack Hanna, Salesperson for Universal Control Corp; Gage Waits, District Sales Manager and Hanna’s immediate supervisor. Scene: Location—Gage Waits’s office at Universal Control Corp.; Action—Zack has just been assigned this territory and has completed an analysis of sales and customer files to profile the individual accounts and sales call allocation strategies utilized by the previous salesperson in the territory. Based on this information, Hanna has developed information responding to each of the three questions following the Universal Control Corp. case materials. This information includes a new sales call allocation strategy. Hanna is meeting with his sales manager to explain his new sales call allocation plan. As Hanna, complete the three questions previously listed. Using this information, role play your interaction with your sales manager, Gage Waits, as you discuss and explain (1) your analysis of the previous salesperson’s sales call allocation, and (2) your new plans and how they will increase the effectiveness and efficiency of your selling efforts in this territory. After completing the role-play, address the following questions: 1. How might Hanna’s sales allocation plan be different if he had used single-factor analysis (ABC analysis) instead of portfolio analysis? How different the results would be if Hanna had used a single-factor model would depend upon which factor he chose (from those listed or others). For example, using Account Opportunity would have produced results similar to what he has now. The primary difference is he may misallocate time, spending more time on the H,Ls than on the H,Hs. In addition, he may allocate too much time to the L,L relative to the L,H. 2. Develop a sales call allocation plan using single-factor analysis. Compare the results of Hanna’s portfolio analysis with the results of your single-factor analysis. Where and how are they different?
Account Name Account Opportunity Category Annual Number of Sales Calls Last Year
Mueller Distribution High A 30
Tri-State Manufacturing High A 28
SCS Industrial High A 27
Lowry Foods High A 26
Reinhart Chemicals High A 26
Terracon High A 25
American Foundry High A 22
Bright Metals Inc. High A 22
Hoffman Pharmaceuticals High A 20
Birkey Paper Co. Low B 26
ACCO Manufacturing Low B 23
King Chemicals Low B 22
Bowles and Sons Low B 21
Darnell Aggregate Products Low B 21
Bear’s Steel Corp. Low B 20
Tri-State Specialties Low B 20
Barlow & Clark Systems Low C 18
Lowell Services Low C 18
Hewitt & Associates Low C 16
Decatur Extrusions Low C 14
Normal Supply Low C 12
Ideal Engineering Low C 11
Students are likely to produce a classification system similar to the one above. The resulting classification system should be similar to the portfolio analysis with respect to the top accounts and the bottom accounts. However, it will be the allocation in the middle that will be different. Some accounts that should be “C” accounts may end up classified as “B” accounts. Some accounts that should be “B” accounts might be classified as “C” accounts. When students are finished, ask them how many took into consideration the “Average Number of Sales Calls Last Year.” Doing so, as demonstrated in the table above, is in fact, a two-factor model, not a single-factor model. In this example, we have only two types of “Account Opportunity”: High and Low. Accordingly, there should only be A accounts and B accounts. 3. How might those differences translate to increased selling effectiveness and efficiency? The portfolio model will reduce the likelihood that Hanna would waste time on accounts in which he has a low probability of success, and makes sure he spends the appropriate amount of time with accounts in which he has a high probability of success. This will make him more efficient and more effective. Chapter 10 Role Play Payroll Pro Background You are a business development specialist for Payroll Pro, an industry leader providing automated payroll processing and related record keeping for medium to large businesses having 15 or more employees. Your primary selling responsibility is new account development and working with existing accounts to increase share of account by selling them additional employment-related services. Account management and day-to-day servicing responsibilities are performed by a team of customer service representatives who work with customers through the phone and Internet. Due to a combination of rapid growth in the number of customers and several customer service representatives being new to the job, the resulting level of service provided by the customer service team has become inconsistent and all too often below the level you have promised to your customers. As a result, you are spending much of your time trying to patch over service shortcomings and working to win back accounts that have been lost to competitors due to the service problems. Not only are you losing business, but your own reputation is beginning to suffer along with that of Payroll Pro. Role Play In discussing these problems with your sales manager, it was decided that you would meet with the team of customer service representatives in order to discuss and find a workable solution to the problems. Role plays how you would approach and initiate a positive discussion with the members of the customer service team that would generate improved experiences and outcomes for your customers and Payroll Pro. Remember to employ Covey’s six teamwork skills discussed in this chapter. Chapter 10 Continuing Case Managing and Classifying Accounts Brenda’s planning and extra effort in servicing and developing her accounts continue to produce increasing levels of profitable business for NCC. Her methodical approach to identifying new prospects and building repeat business within her existing accounts has been observed by her sales manager as well as the Regional Vice President of Sales. As a result of Brenda’s consistent performance, she has been given the opportunity to expand her current list of accounts by taking over part of the account list of a retiring salesperson and integrating them into an expanded territory. Brenda is working through the account information files for each of these added accounts and has summarized the information into the following table.
Account Name Account Opportunity Competitive Position Annual Number of Sales Calls (Last Year)
Maggie Mae Foods Low High 23
C3 Industries High Low 28
Trinity Engineering High High 28
Britecon Animations High High 22
Lost Lake Foods High Low 26
Attaway Global Consulting High High 24
Waits and Sons Low High 21
Reidell Business Services High High 26
Ferrell & Associates Low Low 16
Biale Beverage Corp High High 18
Captain Charlie’s Travel High Low 23
Cole Pharmaceuticals High Low 20
Puddle Jumper Aviation Low High 18
Tri-Power Investment Services Low Low 18
Ballou Resin & Plastics Low Low 14
Tri-Chem Customer Products Low High 20
Guardian Products High High 25
Bartlesville Specialties Low High 26
Questions 1. Develop a portfolio classification of Brenda’s 18 new accounts. What is your assessment of the allocation of sales calls made by Brenda’s predecessor over the previous year?
Account Name Account Opportunity Competitive Position Annual Number of Sales Calls (Last Year)
Trinity Engineering High High 28
Britecon Animations High High 22
Attaway Global Consulting High High 24
Reidell Business Services High High 26
Biale Beverage Corp High High 18
Guardian Products High High 25
C3 Industries High Low 28
Lost Lake Foods High Low 26
Captain Charlie’s Travel High Low 23
Cole Pharmaceuticals High Low 20
Maggie Mae Foods Low High 23
Waits and Sons Low High 21
Puddle Jumper Aviation Low High 18
Tri-Chem Customer Products Low High 20
Bartlesville Specialties Low High 26
Ferrell & Associates Low Low 16
Tri-Power Investment Services Low Low 18
Ballou Resin & Plastics Low Low 14
In the table above, the accounts are sorted by Account Opportunity. and then sorted by Competitive Position. Brenda should use this table to allocate her time: more time to accounts toward the top, and less time toward accounts at the bottom.
Account Name Account Opportunity Competitive Position Annual Number of Sales Calls (Last Year)
Trinity Engineering High High 28
C3 Industries High Low 28
Reidell Business Services High High 26
Lost Lake Foods High Low 26
Bartlesville Specialties Low High 26
Guardian Products High High 25
Attaway Global Consulting High High 24
Captain Charlie’s Travel High Low 23
Maggie Mae Foods Low High 23
Britecon Animations High High 22
Waits and Sons Low High 21
Cole Pharmaceuticals High Low 20
Tri-Chem Customer Products Low High 20
Biale Beverage Corp High High 18
Puddle Jumper Aviation Low High 18
Tri-Power Investment Services Low Low 18
Ferrell & Associates Low Low 16
Ballou Resin & Plastics Low Low 14
The table above sorts the accounts by the number of calls. As one can see, the previous salesperson spent too much time on a few accounts with a Low Account Opportunity (e.g., Bartlesville Specialties), and too little time on a few accounts with a High Account Opportunity (e.g., Biale Beverage). Students may make other comparisons. Use the above table for reference. 2. What specific suggestions would you make in terms of sales call allocation strategy for Brenda to make better use of available selling time in calling on these new accounts?
Account Name Account Opportunity Competitive Position Annual Number of Sales Calls (Last Year)
Trinity Engineering High High Tier 1
Britecon Animations High High Tier 1
Attaway Global Consulting High High Tier 1
Reidell Business Services High High Tier 1
Biale Beverage Corp High High Tier 1
Guardian Products High High Tier 1
C3 Industries High Low Tier 2
Lost Lake Foods High Low Tier 2
Captain Charlie’s Travel High Low Tier 2
Cole Pharmaceuticals High Low Tier 2
Maggie Mae Foods Low High Tier 3
Waits and Sons Low High Tier 3
Puddle Jumper Aviation Low High Tier 3
Tri-Chem Customer Products Low High Tier 3
Bartlesville Specialties Low High Tier 3
Ferrell & Associates Low Low Tier 4
Tri-Power Investment Services Low Low Tier 4
Ballou Resin & Plastics Low Low Tier 4
Brenda should allocate her time based on the Tiers identified in the table above, with Tier 1 accounts receiving the greatest amount of attention and Tier 4 receiving the least. 3. Develop a classification of these 18 accounts using the single-factor analysis method. How do these results differ from the results from the portfolio analysis? Students’ solutions will differ, but the resulting classification system should be similar to the portfolio analysis with respect to the top accounts and the bottom accounts. However, it will be the allocation in the middle that will be different. Some accounts that should be “C” accounts may end up classified as “B” accounts. Some accounts that should be “B” accounts might be classified as “C” accounts. When students are finished, ask them how many took into consideration the “Average Number of Sales Calls Last Year.” Doing so, as demonstrated in the table above, is in fact, a two-factor model, not a single-factor model. In this example, we have only two types of “Account Opportunity”: High and Low. Accordingly, there should be only A accounts and B accounts. Using single-factor analysis, the 18 accounts can be classified based on a key metric such as revenue or profit contribution. This typically results in a straightforward ranking from highest to lowest based on the chosen metric. In contrast, portfolio analysis classifies accounts into strategic categories (e.g., stars, cash cows) based on multiple factors like growth potential and strategic importance, providing a more nuanced classification. The single-factor method offers simplicity, while portfolio analysis offers depth and strategic insight. 4. How might the differences between the single-factor analysis and the portfolio classification translate to increased selling effectiveness and efficiency for Brenda? The portfolio model will reduce the likelihood that Brenda would waste time on accounts in which she has a low probability of success, and make sure she spends the appropriate amount of time with accounts in which she has a high probability of success. This will make her more efficient and more effective. Solution Manual for SELL Thomas N. Ingram, Raymound W. (Buddy) LaForge, Ramon A. Avila, Charles H. Schwepker, Michael R. Williams, Kirby Shannahan 9780176622107
