case 7.1 sales management
TRANSCRIPT
SALES MANAGEMENT
Teacher: Dương Định QuốcTeam 3: Caselet 7.1
Member
Nguyễn Ngọc Phát – 2130706 Lê Kim Ngân – 2132585 Nguyễn Nhật Thức – 2130598 Chu Thành Đạt – 2130616 Nguyễn Thị Phương Nga – 2133450
Summary Case 7.1
Bradley Peters is the National Sales Manager
JP Insurance Corporation
In the SOUTHEAST US
Over the past decade
The turnover rate for JP’s salespeople has increased from increased from around 20% to over 50% annually
He’s surprised when the figure he receives amounts to over $5 million dollars per year
A tremendous amount of waste with the current sales structure
The cost of hiring NEW salespeople
Consequently, Peter is considering partnering with independent sales agents
located in all of the company’s current sales areas
Utilizing this new market would make JP’s current sales people unhappy
1.1 What are the benefits of partnering with independent
reps, as opposed to a company sales force?
1.2 Can a case be made for finding a way to retain JP’s
current salespeople instead of hiring sales agents to
replace them?
The cost for an independent reps lower than
salesperson.
Independent sales agent has more experience,
knowledge, market status, and the ability to win in
the higher competition.
The ways to retain salesperson
Create an exciting work environment and
competitive in order to promote the ability to work.
Organize training courses of sales knowledge.
Have a rewards for good employee.
2: Why would the turnover rate be significantly lower for JP if it
hired sales agents?
Good salespeople are hard to find and it’s easy to make the current salespeople to move their jobs to another competitor’s company.
Sales agents focus on CLOSING SALES rather than fostering LONG-TERM relationships.
Sales agent may not receive equal time for their product.
They blamed for shifting sales call focus to another product line when the buyer’s need is not easily indentified.
3. What type of resistance might JP encounter from its current sales rep if it hired sales agents ?
Sales affected by sales agents Sales effort are reduced , they are not
devoted for JP as before.
Some people might leave in the company. They do not like how this works JP for
them, the commission reduced. Hired sales agents will mean that
companies will cut sales reps so they will take the initiative quit.
4. How might JP intergrate an independent reps strategy with its existing company sales
force?
Independent reps and existing company sales force have the same mission so this decision make the existing company unhappy. My suggestion is:Keep the geographical sales structure.Add market sales structure in the strategy.
Using the Combinational sales structure for JP.
Combination sales structureGeographical sales structure Market sales structure
Divide customer into two group They also can help each others
Question 1:Who is worked for JP’s insurance corporation in the Southeast US ?
Bradley Peters
Question 2: What is the main disadvantaged when JP hire sales agents ?
A. High cost .B. It’s hard to find new customer in the new sales
territories .
C. Agents will compete to current employee.