CHAPTER
1
1. Why do companies spend money on personal
selling when there are so many less expensive alternatives?
Benjamin
Chapman worked his way through college by working as a sales representative for
Best Buy. He has done well on the job and is one of the top salespeople in his
department. Last week Pfizer, the pharmaceutical drug manufacturer, offered him
a job selling to Doctor’s offices. Explain the differences between selling in a
consumer electronics store and the pharmaceutical sales job.
CHAPTER
2
For
centuries the guideline for business transactions was the Latin term “caveat
emptor” (let the buyer beware). This principle suggests that the seller is not
responsible for the buyer’s welfare. Is this principle still appropriate in
modern business transactions? Why or why not?
Read
the following situations and answer the questions that follow.
SITUATION 1
You own a cement company, and deal with most the local contractors for
cement, sand, etc. You have a reputation of high quality products, and for good
customer service with your customers. Your foreman has just run the standard
quality control tests you have performed regularly on your products.
When the test results are ready, you discover that the new batch of product
is 9% less durable than your usual material. It is still well above all
industry standards and meets all building codes and requirements for the
purposes for which it is intended, but it is, nevertheless, not up to your
usual standards. Throwing it away would cost your company many thousands of
dollars.
You decide to sell the cement anyway.
Questions:
Should you tell your customers?
Should you discount the price?
Should you tell your employees, so they will be
knowledgeable with the customers?
Would you use this cement on foundation for your own
house?
SITUATION 2
Joe Raymond’s position as sales manager for Granite Rock and Sand was in
jeopardy. His unit had been low performer in terms of sales for the last seven
quarters. Joe’s supervisor, VP Tom Haws, told Joe that he had through the next
quarter to pull his unit out of last place. Haws also told Joe that Joe would
have to be replaced if the improvement did not occur.
Joe and his wife had just purchased their first home. With their mortgage
payments totaling $1,200 per month, the loss of Joe’s salary would mean the
loss of their home.
Following Tom’s warning, Joe began interviewing candidates for a vacant
sales position in his unit. Joe had conducted three interviews when the final
candidate, Jessica Morris, arrived. During the interview with Morris, Joe
learned that she was the victim of a layoff by a competitor, Silt, Sand and
Such. Joe was not terribly impressed with Morris, but just before she left, she
opened her briefcase and offered Joe a sheet of paper bearing the name of an
official in the Saudi Arabian government. Morris explained:
“When I was with Silt, Sand and Such,
we started a program for finding innovative markets for our products. You know,
we wanted to tap markets no one had ever thought of. After a lot of research,
we discovered that Saudi desalinization plants need a particular type of sand
they don’t have over there, but we have here. We’re the only firm that knows
about this. If you hire me, I can see the sale through for Granite”.
Morris added: “Look, I need this job. You need your sales up. Think
about it and call me.”
After Morris left, Joe sat in his office and felt his problems were solved.
Or were they?
Questions
What are the pros and cons of hiring Jessica?
What should Joe do?
CHAPTER
3
What is supply chain management and what is a salesperson’s role
in supply chain management?
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