APPLYING MARKETING KNOWLEDGE

Q.1

Jane Dawson is a new sales representative for the Charles Schwab brokerage firm. In searching for clients, Jane purchased a mailing list of subscribers to The Wall Street Journal and called them all regarding their interest in discount brokerage services. She asked if they have any stocks and if they have a regular broker. Those people without a regular broker were asked their investment needs. Two days later, Jane called back with investment advice and asked if they would like to open an account. Identify each of Jane Dawson's actions in terms of the personal selling process.

Q.2

For the first 50 years of business, the Johnson Carpet Company produced carpets for residential use. The salesforce was structured geographically. In the past five years, a large percentage of carpet sales have been to industrial users, hospitals, schools, and architects. The company also has broadened its product line to include area rugs, Oriental carpets, and wall-to-wall carpeting. Is the present salesforce structure appropriate, or would you recommend an alternative?

Q.3

Where would you place each of the following sales jobs on the order-taker/order-getter continuum shown below? (a) Burger King counter clerk, (b) automobile insurance salesperson, (c) Hewlett-Packard computer salesperson, (d) life insurance salesperson, and (e) shoe salesperson.

Q.4

Listed here are two different firms. Which salesforce compensation plan would you recommend for each firm, and what reasons would you give for your recommendations? (a) A newly formed company that sells lawn care equipment on a door-to-door basis directly to consumers; and (b) the Nabisco Company, which sells heavily advertised products in supermarkets by having the salesforce call on these stores and arrange shelves, set up displays, and make presentations to store buying committees.

Q.5

Tyler Automotive, Inc. supplies 1,000 independent auto parts stores throughout the United States. Each store is called on 12 times a year, and the average sales call lasts 30 minutes. Assuming a salesperson works 40 hours a week, 50 weeks a year, and devotes 75 percent of the time to actual selling, how many salespeople does Tyler Automotive need?

Q.6

A furniture manufacturer is currently using manufacturer's representatives to sell its line of living room furniture. These representatives receive an 8 percent commission. The company is considering hiring its own salespeople and has estimated that the fixed cost of managing and paying their salaries would be $1 million annually. The salespeople would also receive a 4 percent commission on sales. The company has sales of $25 million, and sales are expected to grow by 15 percent next year. Would you recommend that the company switch to its own salesforce? Why or why not?

Q.7

Suppose someone said to you, "The only real measure of a salesperson is the amount of sales produced." How might you respond?

The correct full-text reference is:

Kerin, R. & Hartley, S. (2019). Marketing. [VitalSource Bookshelf]. Retrieved from

https://online.vitalsource.com/#/books/1260809773/