STRATEGIES IN SALES MANAGEMENT 853

Spring Term 2008

H. Lee Mathews
534 Fisher Hall
292-2700

Office Hours:
By Appointment

Course Materials

1. Case Packet available at Cop-ez.

2. Churchill/Ford/Walkers Sales Force Management Text

An Overview of Sales Strategy Formulation, Implementation, Evaluation, and Control

This course is concerned with the strategic sales management of corporations. The first portion
of the course focuses on the formulation of sales strategy. It begins by establishing an
understanding of the importance of strategic direction and leadership.

In essence, the materials covered establish that sales management decisions are not made in a
vacuum. Marketing strategy must be formulated and carried out in an economic, political, and
social arena. Once a strategy has been selected, the appropriate systems must be in place in
order to facilitate implementation: systems for control, information, planning, compensation,
and the like.

In most instances, the perspective taken in this course is that of the sales V.P. who is responsible
for the long-term viability of the entire enterprise. Management at this level requires not only a
broad vision of the firm, but also an in-depth understanding of operations. Thus, it will be
necessary for you to draw heavily on the knowledge gathered from the functional and analytical
courses. Successful managers are highly competent in problem identification and analysis and
have a strong action orientation. One purpose of this course is to provide an environment to
allow you to develop these skills while, at the same time, gaining a conceptual understanding of
the complexity of the strategic sales managers task.

It is important for you to realize that sales management is more than analysis. While strategic
analysis is a major part of this course, there are tradeoffs inherent within organizations that
consist of many players with multiple competing objectives. Thus, strategic sales management is
only part of running a business. Knowing how to execute the selected strategy is essential.
Effective implementation does not happen simply because a general manager analyzes and
conceptualizes brilliantly and snaps his or her fingers. Things tend to get done only if others
share the commitment and champion the cause.
 Course Objectives

1. Development of a clear understanding of the concept of sales management strategy and

the importance of strategic thinking.

2. Development of an awareness of the variety of effects external environmental forces have

on corporations and their strategies.

3. Development of habits of orderly analytical thinking and skill in reporting conclusions

effectively in both written and oral form.

5. Practice in utilizing a conceptual framework for analyzing sales management problems.

6. Development of an appreciation for both the scope and depth required of an effective
sales manager.

Classroom Performance

Class Preparation

Your preparation for and participation in class will be fundamental to the course objectives stated
above. The course is designed around the case method, and all reading assignments have been
selected to assist you in case analysis.

In order to derive maximum benefit from this method, it is essential that you mentally get
inside the case situation. Do not approach a case as you would a chapter in a book or an article
in a magazine. You are not an observer but a participant. If a case centers on a decision that
needs to be made, put yourself in the shoes of the decision maker. Feel the frustration he or she
feels with respect to data limitations. Feel the pressures he or she feels with respect to difficult
tradeoffs, limited resources, political conflicts, or whatever. Once in class, share your ideas with
others as we work jointly to resolve the issues.

In preparing a case, it is recommended that your first reading be a relatively quick one. Who and
what are involved here? What seem to be the major questions or issues? With your second and
much more thorough reading of the case, test your preliminary conclusions from the first reading
concerning the major problem(s) and key players. Begin sifting through the facts in the case and
sorting them out in terms of which are useful to you in analyzing and resolving what appear to be
the major issues. Keep in mind that case facts are presented in a more orderly fashion than they
tend to be in the real world, but that one should not assume that they are all equally useful or that
they are properly and fully related as presented in the case. A statement on page 3, when
combined with the data in a table found on page 10 may be of great significance. There may also
be factual gaps which you will need to fill with reasonable assumptions which are clearly
identified as such. Perhaps most importantly, you should keep in mind that the mere collection
and recitation of case facts are of little value. It will be assumed that everyone in the classroom
will be quite familiar with the facts of the situation. Thus, the problem is not one of
citing facts, but of identifying problems and using the facts in analysis which offers insights with
respect to the nature of the problems and their solution. A third careful reading of the case
should enable you to test your earlier analysis and modify it or enhance it with data or insights
which may have been overlooked in the first two readings (if you had the luxury of reading a
case ten times, it is very likely that you would learn something new even with the tenth reading).

You are encouraged to test your ideas on others prior to the class meeting. Students tend to find
study groups to be enormously beneficial in this course. For the sake of preparation, you should
assume that every class will begin with a request for your group to lead off the discussion.

In the Classroom

Each class session will begin with one student or study group being asked to provide a ten to
fifteen minute lead-off presentation of his or her analysis of the case. This presentation will be
a discussion of the issues involved in the case; it will not be a PowerPoint presentation rehashing
the case facts.

An effective lead off can do a great deal to enhance a case discussion. It provides a structure, a
tone and a quality level which may encourage the class to probe more deeply into the issues of
the case. After the lead off presentation, the discussion will be opened to the remainder of the
class. Others may choose to build on the lead off discussion, present a significantly different
alternative, or focus sharply on one or more issues which seem to have been developed
inadequately or perhaps overlooked. You are strongly encouraged to prepare an outline of your
analysis of each case which could be used for your lead off if you should be called upon to start
the class session.

This outline will lead to a much more effective lead off than sifting through all of your notes and
trying to collect your thoughts on the run. In addition, it will serve as a useful reference as you
evaluate and contribute to the class discussion, even if you do not start the case. If you are
inadequately prepared to lead off the discussion of a particular case, you may:

1) ask me before class not to call on you,

2) pass when you are called, or
3) wing it.

These actions are listed in increasing order of negative evaluation.

The instructors role in the class is to help facilitate discussion. In part, I serve as a recording
secretary, clarifier, and intensive questioner in order to help you present and develop your ideas.
My primary role is to manage the class process and to assure that the class achieves an
understanding of the case situation. While I may probe to encourage you to develop the
implications or foundations of a comment, this is done in a spirit of enhancing the effectiveness
of the class discussion. I will make every effort to avoid embarrassment of any class member.

Clearly, there is no single correct solution to any of these problems. There are, however,
solutions which are inadequately supported with analysis, and there are solutions and analyses
which are ineffective because they are not presented in an orderly and persuasive fashion. We
should work together to see to it that each class session is a lively, stimulating, and intellectually
rewarding venture in group learning. We are individually and collectively responsible for
achieving that end. There may be occasions in which the class will be allowed to wander to no
apparent productive end. The frustration of such occasions should provide you with a
perspective within which to evaluate your performance as a class and encourage you to work
together to prevent recurrence. You should not rely on the instructor to hand you a structure for
analysis or to identify crucial issues for you. Development of these skills is an important
objective of the course.

Each case has its own integrity and, thus, it stands on its own. You are expected to deal with the
case as it is presented and not to draw on other published materials or analyses or notes which
have been prepared previously by others. You may draw on personal experiences if you believe
they are substantive, insightful, and generalizable. Generally, we are not concerned with what
was the actual outcome of the case. Such an approach would imply that there was a right
answer. The outcome of the situation may or may not reflect a good solution. In those
instances where there was a particularly interesting outcome, it will be shared with the class.

Evaluation of Class Participation

The vast majority of general managers interactions with others are oral. They generally spend
very little time reading and even less time writing reports. For this, reason, the development of
oral skills is given a high priority in this course. The classroom should be considered a
laboratory in which you can develop and test your ability to engage in a productive exchange of
ideas with your peers and to convince your peers of the correctness of your position. Some of
the issues related to effective class participation are:

1. Are the points that are made relevant to the discussion in terms of increasing
everyones understanding, or are they merely a regurgitation of case facts?

2. Do the comments take into consideration the ideas offered by others earlier in the
class, or are the points isolated and disjointed? (the best class
contributions following the lead off tend to be those which reflect not only
excellent preparation, but good listening, interpretative, and
integrative skills as well).

3. Do the comments show evidence of a thorough reading and analysis of the case?

4. Does the participant distinguish among different kinds of data; that is, facts,
opinions, assumptions, et cetera?

5. Is there a willingness to test new ideas or are all comments cautious/safe?

6. Is the participant willing to interact with other class members by asking questions
or challenging conclusions?

7. Are the comments crisp and to the point, or does the participant wander around
the point or ramble after the point has been made?

In essence, the two key dimensions of classroom participation are the value of what you have to
say and the effectiveness with which you say it. Clearly, you must participate in class if either of
these dimensions is to be evaluated and if you are going to engage in an exchange of ideas with
others. There is not need to speak in every class. Some of the best contributors may speak in
only three or four sessions, but their contributions will be insightful and persuasive. The issue is
one of quality not quantity or frequency. While the size of this class is not unusual among the
more respected MBA programs (and even small in comparison with some), it does require us to
respect class time. A single minute of wasted class time not only represents one and one-third
man-hours of potential productivity, but it also limits the opportunity of others to contribute.

The class size also makes it likely that there will be times when you experience the frustration of
not being called on. If you feel you are having a problem either of being passed over regularly or
in getting your hand up (stage fright), please see me. To preserve order and fairness, I will
request that students speak only when called upon.

Oral Strategy Presentation

Each group in the course will be asked to participate in a presentation on one aspect of sales
management strategy. Students will be organized into groups of five or six for this assignment.
Groups should feel free to formulate their own structure and the approach that they think will be
most effective in communicating their strategy paper. Each group will be allowed a maximum of
twenty minutes for its presentation so the format and organization should be precise and hard-
hitting. Every member of the group will speak. Handouts will be appreciated.

Evaluation

Your grade in the course will be based on the following weights.

Class Participation 30 percent

Oral Presentation on Strategy 25 percent
Final Exam 20 percent
Written Case Analysis (2 cases) 25 percent

Additional Guidelines

I place a high value on professionalism, and observance of the following will increase the
likelihood that this experience will be a cordial, professional, and rewarding experience for all of
us.

1. Attendance is obviously important, and other activities, including job interviews,

ought to be scheduled so as not to conflict with class.

2. Class will begin and end precisely on time. You will find it useful to arrive early
and begin reviewing your notes with the expectation that you will be asked
to lead off the discussion.

3. Given the preparatory nature of the pre-class period, I would prefer that you wait
until after class ends to schedule appointments or discuss other matters
with me.

4. Please do not enter the classroom after class has begun. In addition to being
discourteous and perhaps disruptive to the lead off person, it deprives you
of the potential opportunity to lead off.
 5. Since I frequently call on students who do not have their hands raised, if you are
not prepared for class, please notify me in advance.

6. With the possible exception of the wrap-up period at the end of each class, note
taking is unnecessary and even undesirable. You should be following and
reacting to the class discussion instead of writing.

7. Personal integrity is absolutely crucial. While it is desirable for you to work

together for purposes of general case preparation, written assignments
must be solely your own work. Anyone who violates the trust of the
instructor and other members of the class will be subject to academic
misconduct proceedings.

8. Please feel free to set up an appointment with me to discuss any matters of

interest or concern to you. You can either see me after class or call at 292-
2700 to set up an appointment.

Class Schedule

1. Formulation of a Sales Program

1.1. Framework for Sales Management Transactions to Relationships
1.1.1. Case: Fabtek A 9-592-095
1.2. The Process of Buying and Selling, Chapters 1 and 2
1.2.1. Buying Centers
1.2.2. Buy Grids
1.2.3. Segmentation
1.2.4. Target Accounts
1.3. Case: Seibel Systems, I, II, and III 9-503-021, 9-503-022, 9-503-023
1.4. Linking Strategies and the Sales Role in the Era of Customer Relationship Management,
Chapter 3
1.4.1. Customer Relationship Management
1.4.2. Customer Performance Measurement
1.5. Case: Scalix Corporation Stanford Case SM-147
1.6. Organizing the Sales Effort, Chapter 4
1.6.1. Case: Becton Dickinson Marketing Organization 9-593-070
1.7. Strategic Role of Information, Chapter 5
1.7.1. Case: Health Care Solutions, Inc. (Case in Text)
2. Implementation of a Sales Program
2.1. Salesperson Performance: Behavior, Role Perceptions, and Satisfaction, Chapter 6
2.1.1. Case: Centra Software 9-502-009
2.2. Salesperson Performance: Motivating the Sales Force, Chapter 7
2.2.1. Case: Perelson Weiner, LLP 9-506-006
2.3. Salesperson Performance: Personal Characteristics and Sales Aptitude, Chapter 8
2.3.1. Case: Lawford Electric 9-580-124
2.4. Sales Force Recruitment and Selection, Chapter 9
2.5. Sales Training: Objectives, Techniques, and Evaluation, Chapter 10
 2.5.1. Case: On-Time Package Delivery (Case in Text)
2.6. Salesperson Compensation and Incentives, Chapter 11
2.6.1. Case: California Credit Life Insurance Corporation (Case in Text)
3. Evaluation and Control
3.1. Cost Analysis, Chapter 12
3.1.1. Case: Wentworth Industrial Cleaning Supplies (Case in Text)
3.2. Evaluating Salesperson Performance
3.2.1. Case: Hanover-Bates Chemical Corporation (Case in Text)
4. Project Reports