Excercise book. Case study Help. Sales Management

Jim Appleton, managing director of Industrial Cleaning Services, had decided that a personal computer could help solve his cash flow problems. What he wanted was a machine which would store his receipts and outgoings so that at a touch of a button he could see the cash flow at any point in time. A year ago he got into serious cash flow difficulties simply because he did not realize that, for various reasons, his short-term outflow greatly exceeded his receipts.

He decided to visit a newly opened personal computer outlet in town on Saturday afternoon. His wife, Mary, was with him. They approached a salesperson seated behind a desk.

Jim: Good afternoon. I'm interested in buying a personal computer for my business. Can you help me?

Salesperson: Yes, indeed, sir. This is the fastest growing network of personal computer centres in the country. I have to see a colleague for a moment but I shall be back in a few minutes. Would you like to have a look at this brochure and at the models we have in the showroom?

[Salesperson gives them the brochures, and leaves them in the showroom.]

Mary: I don't understand computers. Why are some bigger than others?

Jim: I don't know. What baffles me are all these buttons you have to press. I wonder if you have to do a typing course to use one? [Jim and Mary look round the showroom asking each other questions and getting a little confused.

The salesperson returns after five minutes.]

Salesperson: Sorry to take so long but at least it's given you a chance to see what we have in stock. You tell me you want a computer for work. I think I have just the one for you. [Salesperson takes Jim and Mary to a model.] This could be just up your street. Not only will this model act as a word processor, it will do your accounts, financial plans and stock control as well. It has full graphic facilities so that you can see trend lines on the screen at the touch of the button. You can also send emails and access the internet.

Mary: It looks very expensive. How much will it cost?

Salesperson: A lot less than you think. This one costs 1,000, which is quite cheap.

Mary: I've seen advertisements in newspapers for computers which are a lot less expensive.

Salesperson: Yes, but do they have a Core 2 Quad processor with 3GB of memory and a 640GB hard drive? And do they contain ATI's best selling Radeon graphics card and the latest media card reader?

Mary: I don't know, but they looked quite good to me.

Jim: It looks very complicated to use.

Salesperson: No more complicated than any of the other models. The computer comes with a full set of instructions. My 12-year-old son could operate it.

Jim: What's this button for?

Salesperson: That moves the cursor. It allows you to delete or amend any character you wish.

Jim: I see.

Salesperson: I've left the best till last. Included in the price are three software programs that allow the machine to be used for spreadsheet analysis, stock control, and word-processing. I'm sure your business will benefit from this computer.

Jim: My business is very small. I only employ five people. I'm not sure it's ready for a computer yet. Still, thank you for your time.

1) What choice criteria did Jim and Mary use when deciding whether to buy a computer

and which model to buy?

2) Did the salesperson understand the motives behind the purchase? If not, why not? Did

they make any other mistakes?

3 Imagine that you were the salesperson. How would you have conducted the sales

interview?