Sales and Marketing

Mini case 1

Finding new customers to buy a product or service is the responsibility of the entire sales force. It can be challenging for some people, but they must increase the sales, and for that to happen, proper strategies should be used in creating a successful sales force. Victory Pharmaceutical Company used the following strategies to develop a sales force that was successful in dealing with the customers. First, when recruiting the sales force, the company uses an extensive selection process. It is important because it ensures that the company hires competent and loyal salespersons who will help the company reach its goals. Salespersons not only deal with selling the products but also the goodwill and reputation of the company.

Secondly, after recruitment, victory pharmaceutical company empowers them through training and development. Empowering them will enable them to make decisions that are sound and timely. Salespeople will learn work ethics; learn how to influence the potential customer with correct negotiation skills along with the right information of the product, pricing, and presentation. A trained person will perform well in the field. Salespeople will learn communication skills that are crucial to marketing; they will be able to identify the potential customer, listen attentively, and give appropriate feedback.

Thirdly the company supports the sales force team without criticizing them when they make mistakes. The company helps the salespersons succeed by providing resources and support they need to overcome their weakness. It creates an environment where salespeople are free to communicate, free to share their ideas, and they will feel that their work is appreciated hence becoming more committed to their work. This is a reflection of how a company can motivate its employees for better performance.


Mini case 2

Performance ratios

Sales growth = (present sales- past sales) ÷ past sales

Derek Francona sales growth = ($481,000-$480,000) ÷ $480,000= 0.002

John Schilling sales growth = ($883,000-$750,000) ÷$750,000=0.177

Daphne Gellar growth rate= ($613,000-$576,000) ÷$576,000=0.064

Robert Smythe sales growth = ($852,000-$745,000) ÷$745,000=0.144

Jennifer McCararver sales growth= ($860,000-$765,000) ÷$765,000=0.124

Manuel Lopez sales growth= ($835,000-$735,000) ÷$745,000=0.136

Samantha Kerrey growth rate= ($670,000-$665,000) ÷$665,000=0.008

Erin McCloud growth rate= ($925,000-$775,000) ÷ $775,000=0.194

Sales to quota = current sales ÷ current quota

Derek Francona sales to quota = $ 481,000 ÷ $575,000= 0.837

John Schilling =$883,000 ÷ $835,000=1.057

Daphne Gellar =$613,000÷ $657,000=0.933

Robert Smythe =$ 852,000 ÷$ 850,000 =1.002

Jennifer McCararver =$860,000 ÷$850,000=1.011

Manuel Lopez =$835,000 ÷ $825,000=1.012

Samantha Kerrey=$670,000÷ $720,000=0.931

Erin McCloud=$925,000 ÷ $875,000=1.057

Sales per account= sales dollar volume ÷ total number of accounts

Derek Francona = $481,000 ÷ 1,100= $437.27

John Schilling = $883,000÷1600= $551.875

Daphne Gellar=$613,000÷1150=$533.043

Robert Smythe=$852,000÷1350=$631,111

Jennifer McCararver=$860,000 ÷ 1300=$661.538

Manuel Lopez = $835,000 ÷ 1400=$596.428

Samantha Kerrey=$670,000÷ 1600=$418.75

Erin McCloud=$925,000 ÷ 1910=$484.293

Average order = sales dollar volume ÷ total number of orders

Derek Francona = $481,000 ÷ 780=$616.667

John Schilling = $883,000÷1970=$448.223

Daphne Gellar=$613,000÷1020=$600.980

Robert Smythe=$852,000÷1650=$516.364

Jennifer McCararver=$860,000 ÷ 1730=$497.11

Manuel Lopez = $835,000 ÷ 1790=$466.480

Samantha Kerrey=$670,000÷ 960=$697.917

Erin McCloud=$925,000 ÷ 1910=$484.293

Sales expense = expenses ÷ sales

Derek Francona = $9300 ÷ $481,000= 0.0193

John Schilling = $ 12300 ÷ $883,000=0.014

Daphne Gellar=$7500 ÷ $613,000=0.012

Robert Smythe=$11000÷ $852,000=0.013

Jennifer McCararver=$11300÷ $860,000= 0.0131

Manuel Lopez = $11500÷ $835,000= 0.0138

Samantha Kerrey=$10800÷ $670,000=0.016

Erin McCloud=$12800÷ $925,000=0.0138

Calls per day=number of calls ÷ number of days worked

Derek Francona = 1300÷235=6

John Schilling=1800÷223=8

Daphne Gellar=1650÷228=7

Robert Smythe=1700÷230=7

Jennifer McCararver=1750÷232=8

Manuel Lopez=1750÷220=8

Samantha Kerrey=1550÷200=6

Erin McCloud=1850÷225=8

Orders per day= number of orders ÷ number of days worked

Derek Francona=780÷235=3.32

John Schilling=1970÷223=8.83

Daphne Gellar=1020÷228=4.47

Robert Smythe=1650÷230=7.17

Jennifer McCararver=1730÷232=7.5

Manuel Lopez=1790÷220=8.14

Samantha Kerrey=960÷200=4.8

Erin McCloud=1910÷225=8.5

Massachusetts Restaurant Appliance’s salesperson’s performance

From the performance ratios above the following is a list of how the salespersons performed from the best to the least

1. Erin McCloud

2. John Schilling

3. Robert Smythe

4. Manuel Lopez

5. Jennifer McCararver

6. Daphne Gellar

7. Samantha Kerrey

8. Derek Francona

Advice that Epstein should give the salesperson for them to improve their performance

Epstein should motivate and support his sales team by encouraging them never to give up but rather focus on specific sales activities instead of results. Sales representatives are always bombarded by outside factors that affect their motivation. For example, Derek Francona thinks of quitting because one of his largest customers went out of business, and he feels that he will not be able to meet the target. Epstein should also remind his team about the autonomy they already have. It will allow them to make more sales. He should also remind the sales team that they should focus more on customer satisfaction. Creating a positive customer experience will retain and attract new customers. Finally, he should encourage them to communicate freely with him, raise their concerns, and share new ideas.

Limitations of this evaluation system and adjustments for a more accurate evaluation

Performance evaluation using ratios does not represent the future performance of the salesperson because they are based on past results. Another disadvantage is that some salespeople are placed in areas where there is minimal demand for the products. In contrast, others are posted where there is a high demand; therefore, evaluating them based on performance ratios will be unfair to those in low product demand areas. Objective measures of performance distill the complex process into a single score. For a more accurate evaluation, Epstein should utilize both subjective and objective measures in the assessment of the salesperson’s performance. Subjective measures rely on how an individual is doing because some of the salespersons are doing well, but because of their location, their sales growth rate is low.