Tutorial 1

1.
Salesperson represents the company, brand, and customer.
The conduct of salespeople will either have positive or negative impact on the company
reputation and brand image.
salespeople are the middle person between the company and the customers. They receive
feedback or complaints from customers and channel the feedback to the management.
Salespeople = themselves. They "sell" knowledge and professionalism during the selling process.

2. Discuss the situations that the internet is most likely and least likely to replace the need for
salespeople.

The Internet has replaced some of the traditional salesperson's roles to some extent because
companies are using the Internet for finding new customers, researching, etc. For example,
many customers, especially small and medium-sized businesses, are perfectly content to
establish relationships with sellers via websites and email. However, the salesperson needs to be
accountable for the desired result, understand the customers’ business, be on the customer’s side,
design the right applications, be easily accessible, solve problems, and be creative in responding
to the customer needs and there are some times that require face-to-face demonstrations and sales
calls. For instance, capital equipment sales, financial services, and a number of others, there will
probably always be salespeople making calls at customers' locations. Another example, if you
buy a guitar in the physical store you will have a salesman around you because you may want to
test it and feel it.

The situations that the internet is most likely to replace the need for a salesperson. For example,
to conduct market research online, customers to reorder online, and to prospect customers.
The situation that the internet is least likely to replace the need for a salesperson. Where face to
face communication and negotiation are required (problem solving, build customer relationship).
Selling capital item(machines), financial service(insurance, unit trade), and property and car
service, cosmetic salesperson, business consultant.
In conclusion, technology is to assist salespeople to perform the job more effectively and
efficiently.
3. Examine the differences between “selling” for a public organisation versus selling for a for-
profit organisation?
Public organisation = non-profit organisation, government hospitals , government educational
institution. Public organisations provide welfare and community service. Not aim to make a
profit. Hospitals may undertake blood donation drives.

selling for a for-profit organisation = company makes sales and earns profit. salespeople earn
commission

4. Describe the typical salesperson as illustrated in movies, books, and TV shows. Let
students have a general discussion on their perceptions on salespeople.

Always do hard sell, Annoying , some may be dishonest

Talkative is good if you talk of substance
Tutorial 3

1. Discuss the key trends (key themes)affecting sales organisations and sales managers
today.
Refer to your chapter 1 slide 4 onwards
Innovation in sales-
1. Transactional selling
2. Relationship selling
Change of selling style from transactional selling to relationship selling. The aim is to build long-
term customer relationships such as royalty customer/ repurchase. Royalty customers is a
competitive advantage for the company, they are the asset of the company.
Technology
Technology to help salespeople to work more effectively and efficient. For example, mobile use
for connectivity, using CRM software for the customer data mining, social media platform to
conduct business online this company has their own online and offline business.
Leadership
Change of sales management style from managing to leading. Learning style focuses on 2 way
communication between manager and sales people. Empower salespeople to make some
decisions. Unlike managing style, focus on control and instruct salespeople.
Globalization
Global endeavor
managing a global salesforce- most companies are expanding out of the home market. It is a
challenge for the managers nowadays to manage a diversified sales force.
Ethics
Establish an ethical and professional sales force.-company normally have code of conduct to
govern the salespeople, action. As ethical salesforce reflect the integrity of the company.
2. Assess the pros and cons regarding relationship selling as a career choice for you.(chapter2-s5)
Pros
- Autonomy and opportunities for personal initiative which means that the salespeople is
free to get the job done in his or her own way and spend time as he or she chooses as long
as it gets good results. (no work in the office like 8 to 5pm sit in the office)
- Variety of challenging activities. Job variety(selling is a complex job need creative
thinking, salespeople will never get bored)
- Financial rewards- goog financial reward which includes salary and commission and
sales bonus.(how much to earn, the sky's the limit)
- Favorable working condition
- Excellent opportunities for development and advancement
Cons
- High stress due to sales target and collection target
- Unstable income due to commission pay out. Some months may be a slow moving
season.
- Highly visible results, salespeople may fail from hero to zero.

3. Review the key success factors for relationship selling as listed in the main text. Which of
these factors are currently your strong points and weak points? Discuss.
c2S7
Listening skill = active listening and understand customer needs
Verbal communication skill = ability to explain clearly and correctly.If can master a few
languages and dialects will be even better
Well organised-based on urgency and importance
Ability to overcome objective-
Closing skill-

4.Pick up any three of the selling activities that you would most like to perform and any
three you would least like to perform. Explain your rationale for listing each as you did.
C2s8
Entertaining- to build relationship with customer
Travelling-to expand outstation customers
Selling-sell to existing and expand to new
Attending sales meeting-checking on sales target
Training- some salespeople may think wasting time
Managing information-information is very important because it is customer data, but is a very
tedious job. It is paperwork.,
Chapter 3 T4

1.What is market orientation? Provide examples of market-oriented firms that are successful in
the following industries: transportation, IT and F & B.
Market orientation is the implementation of the marketing concept, focusing on function toward
maximising the firm success. It applies the marketing mix = 4Ps.
Firms turn into customers about what product to produce, at what price, , how to get them to
market and how to communicate the products with the customers.
Transportation
Air Asia= product/service = direct flight destination. price = low fare when booked earlier..
Place = online website.. Promotion = 20% booked via mobile, free ticket, (This is budget
travellers)

IT
Iphone Focus more on tech specifications. Apple iPhone offers a unique operating system,
running at better speed than any of its present competitors, promising a flexible working
environment and light speed multitasking. Innovative apps in the apple store, are mostly the first
movers, copied afterwards by other brands, according to the apple techies and consumers both.
I phone = Product = IOS . Apps in Apple storePrice = premium . Place = authorised premium
reseller like Machines. Promotion =??. This is for quality conscious customer

F&B
Product = original . Product (localise) = hot and spicy chicken
Price = set price
2. Strategic partnership often requires direct peer-to-peer communication at the senior executive
level between buying and selling firms. What are the advantages of having top corporate officers,
CEOs in some cases, become directly involved in the selling process? What types of challenges
does such direct involvement present to the salesperson and sales manager responsible for the
client?
a) The decision process is shorter as they are the decision makers
b) the selling firm may impress the buying firm
a) difficult to compute commission or salespeople not entitled to commission at al
b) Some aggressive salespeople may feel demoralised as the jobs are undertake by top mgmtl

Discuss how a customer-centric or CRM philosophy influences the selling function in an

organisation.
s3-7
a) A Partnership business model with shared risks and rewards + to treat your customers as
partner

a) A Partnership business model with shared risks and rewards = to treat your customers as
partner
Selling as customer business consultation
b) Defining the selling role in terms of provision of customer business consultation and solution
= do consultative selling
Increase Formalisation of customer analysis processes and agreements

For example develop customer complaint procedure and feedback system

taking proactive leadership role in educating customers about value chain and cost reduction
opportunities
Focus on continuous improvement principles stressing customer satisfaction
Focus on continuous improvement principles stressing customer satisfaction = use KAIZEN
method for new product development and customer service
4. How do personal selling activities change in the different stages of developing a business
relationship?
C3s16
Stage 1 Exploration stage = the goal is to build trust. This can be facilitated by setting proper
expectation, monitor delivery, and assisting in services
Stage 2= Expansions = to increase sales by upselling and cross selling (sell more)
Stage 3 commitment. The goal is to gain commitment. This can be result in preferred supplier
status (1st choice)
Tutorial 5 Chapter4

a. Assess geographic, product, market types, selling function

Geographic organisation structure= based at its hand office at Shah Alam and sales offices at
Penang, Sabah and Sarawak.
Product organisation structure= some of the products it holds exclusive distribution rights to
include ultrasound scanners, dental instruments, x-rays and CAD/CAM, surgical instruments,
diagnostic instruments and medical disposables
Market segment =Medi-Life is also looking at future growth coming from the equipment and
machinery rental business as many smaller private medical centres prefer to rent equipment such
as ultrasound scanners, x-ray and other higher-end equipment (para6)
Selling function not applicable (B2B)
(a)
Geographic organisation: individual salespeople are assigned to separate geographic territories.
Branch sales offices will report to the head office. Suitable for Medi-Life that need to cover a
wide geographical area in West (Shah Alam head office and Penang) and East Malaysia (Sabah
and Sarawak).

Product organisation: individual salespeople are assigned to a product or product category. Each
salespeople will manage all brands in the specific product category. Suitable for Medi-Life with
many products or brands categories.

Organisation by customer types or markets: individual salespeople are assigned to separate

market segments. Each salesperson will manage a specific market segment. In this case, Medi-
Life is looking at future growth from equipment and machinery rental business.

Organisation by selling function: individual salespeople are assigned to a specific function such
as one may specialise in developing new accounts while another maintains and services old
accounts. However, this may cause rivalry between the two functions. This organisation structure
is not suitable for Medi-Life.
Based on the above, I would like to recommend a matrix of product and geographical sales
organisation structure for Medi-Life. At the Shah Alam head office, sales offices in Penang,
Sabah and Sarawak respectively, each salespeople will be responsible to handle one to two
product categories as follows:
ultra-sound scanners, dental chairs, x-rays and CAD/CAM, surgical instruments and diagnostic
instruments, and medical disposables. Salespeople will report to the branch sales manager. All
salespeople will service the hospitals and clinics in their respective regions i.e. Penang sales
office will cover northern region and Shah Alam head office will cover central and southern
region in West Malaysia. Sabah and Sarawak sales office will cover East Malaysia. Branch
offices will report to the head office in Shah Alam.

(b)A matrix of product and geographical sales organisation structure

External factors:
Political-legal environment

Although the government has cut spending in the healthcare sector over the last two years. The
impact is not major as there are no cuts in allocation for certain essential supplies such as drapes
and surgical gowns – items that are indispensable for operating rooms. Medi-Life is required to
register the company with the Ministry of Health and comply with the Medical Device Act 2012
(MDA). This is to ensure that medical devices provided by Medi- Life are of high quality,
effective and safe.

Economic environment
Athough the medical industry experienced depreciation of the ringgit against major currencies,
the impact is not major due to the fact that the medical service is a recession-proof business.
With a notable increase in the number of private specialist hospitals in Malaysia in recent years,
it serves as a buffer for the company’s main revenue generating products.

Internal factors:
Goals, Objectives and Culture
Medi-Life has a strong vision of being a remarkable and outstanding company, driven by its
customer-centred philosophy. They aspire by being a total solution provider coupled with an
excellent after-sales service. This serves as a strong driver and direction for the company to excel
in the medical services sector.

Human Resources
As mentioned in the case, selling of medical equipment and product needs specialised
knowledge. Human Resources Department must assist to recruit qualified sales executives and
plan training programmes needed by them in order to speed up their knowledge and skills.

Professional knowledge of the sales executive is one the key factor to excel in their sales
performance.
Services Capabilities
It is essential that Medi-Life provides good after-sales services to maintain its royal clientele in
the medical industry. It is a strong point for the company to provide after-sales training for
machineries to the medical staff such as electrotherapy and ultra-sound machines.
Tutorial 5
Chapter 4
1.
- Assigning key account to sales executive
Assigning Key Accounts to Sales Executives = pass the key a/c to senior executives or
sales manager
Only apply when company have fewer key accounts
- Establish A Key Account Division= a division for key a/c where there is close integration
of manufacturing, logistic and marketing. This is a risky option.
- Create A Separate Sales Force for Key Accounts = separate the sales team into 2 . one
sales team handles key a/c . another sales team handles normal sales . The share the
manufacturing, logistics and marketing
Assigning key accounts to senior sales executives: Sky Thomas can assign the key accounts
to the senior sales executives. It has the advantage of having important customers serviced
by sales people who are experienced and capable. On the other hand, these senior sales
executives may tend to overlook the smaller customers.
establish a separate division for key accounts: Sky Thomas may create a separate division
for key accounts which allows for close integration of manufacturing, logistics, marketing,
and sales activities. However, it can be very costly and risky because the success or failure
of the entire division is dependent on the whims of one or a few key customers.
Create a separate sales force for key accounts: rather than creating an entire separate
division to deal with major customers, a company may create a separate key accounts sales
force. By concentrating the sales force on major customers, the sales force can be very
familiar with the customers’ needs and requirements. Only the most competent sales
people are the members of this national account sales force, thus ensuring that important
customers receive expert sales attention.
 1. Examine the specific steps you would take in allocating sales territories for your sales
force. Chapter 5

1. Select a basic control unit = divide the territory by state , city, town
2. estimate the market potential of the control unit
3. Form territories-
territory 1: Setapak, Ampang, Shah Alam
Territory 2: PJ, Subang, Jaya, Cheras
Territory 3 : Kepong, Selayang
Market potential most the same
4. Perform workload analysis to calculate sales force size
5. Adjustment of territory so that all territory potential will be more or less the same
6. Assign salesperson to territory

Case study
a) Given the sales force expansion, you are required to outline the SIX (6) key building
blocks to starting a sales force. (chapter 4)

1. Start with a strategy- Jesa to form a sales force mission statement, determine skill set and
customer benefits
2. Appoint an expansion team= get assistance from HR department for for selection and
recruitment, training of sales force
3. Leverage existing strengths
4. Go to the press- means Jesa engaged in newspaper interviews such as STAR? The
Edge..Talking about the company business model and vision statement. So that company
is made known to the public…
5. Avoid compensation snafus = to design compensation packages at market rate or better
than competitors....
6. Provide
7. support= provide managerial support to the sales force.. Adopt leadership by example..

(b) With the growth potential in the green market segment, propose FIVE (5) sales
forecasting methods to compile the three years sales forecast. (chapter 5)
1. Jury of executive opinion - key experts’ opinions + employ consultant to do the forecast
2. Moving average is based on Jesa past year sales figure. Either to use 2 year moving
average or 4 year moving average.
3. Decomposition – applied to monthly or quarterly data where seasonal pattern is evident
=many festivals
 4. Statistical demand analysis – attempts to determine the relationship between sales and
factors that influence sales= price, competitor, green consumption pattern, growth rate in
the industry such as online food service and quick service restaurant.

Tutorial 7
Chapter 8: Criteria for Selecting Salespeople

1. What qualities and characteristics do you think are important for a new salesperson at
Logistics Logic? Why?

2.1 Demographic characteristics

Age Of a mixture of young and slightly older, below 35 years old. The existing workforce at
early 40
gender= employ more male than female to ensure gender balance

2.2 Education Background= diploma/ degree in logistic and supply chain management

2.3 Working Experience=a mixture of fresh graduates, less experienced and very
experienced. prefer related experience in the logistic industry.
2.4 Personality= responsible, sociable and creative = sales people need to design hardware
and software logistic solution
2.5 Skills=Active listening skills, good communication skills, negotiation and closing skills
2. What kind of person would you recruit (experienced versus less experienced, and age.)?
(experienced versus less experienced
Experienced = more than 5 years working experience
Less experienced = 1- 2 years
Experienced = high salary, lower training.
Reason - these sales people got vast marketing network
Less experienced = lower salary , higher training cost.
Reason- they can be train according to logistic logic selling method

Age = Thad may want to focus on younger individuals who have the potential to remain with the
company for a longer time

Both young and older --- young 70% old = 30

1.Respond to the statement, "Good salespeople are born not made."
Respond to the statement, "Good salespeople are born not made." Agree. Certain personalities
traits such as a strong ego, self-confidence , decisiveness are necessary for success
Respond to the statement, "Good salespeople are born not made." disagree. Some skills like
communication skills , selling techniques , closing techniques can be trained..

Good salespeople can both born and made

2. Managers should hire salespeople with demographic and personality characteristics as similar
as possible to those of the prospects upon whom they will be calling. Respond to this statement.
This is called salesperson- customer similarity strategy
salesperson- customer similarity strategy is more suitable for b to C sales. It is not suitable for B
to B sales as the customers are from are all ages and background..
Tutorial 6
Chapter 5: The Strategic Role of Information in Sales Management
1. Examine the specific steps you would take in allocating sales territories for your sales
force.

Case: Jesa Enterprise Sdn. Bhd. - Fallaleaf brand

Awareness on the impact of human activity on the environment is growing. Consumers are
increasingly opting for greener products and are demanding for more sustainable practices. As
more reports about climate change are revealed, regulators are also looking at measures to ensure
a more sustainable development. And this favourable environment is ushering in a golden era for
green products, says Jesa Enterprise Sdn. Bhd. (Jesa) executive director Kartigha Ayamany.
“Now is the big wave. It is the right time. With this green trend, products like ours are given
more priority. So that gives us more exposure,” she says. Jesa Enterprise produces disposable
dinnerware such as plates and bowls that are made from palm leaves. Their products are sold
under the Fallaleaf brand. Kartigha notes that consumers these days don’t mind paying for
products that are sustainable as more people are eager to do their part in the fight against global
warming. Jesa was established in 1986, the company has been at the forefront for production and
supply of high quality eco-friendly dinnerware using palm leaves. As Fallaleaf’s products
continue to grow from strength to strength, Jesa’s vision for a sustainable and environmentally
friendly future is truly coming to fruition.

According to a research by Future Market Insights on the disposable cutlery market, the global
revenue is poised to witness a moderate 4.3% year-on-year growth in 2019. The report notes that
growing demand from the quick-service-restaurants sector is pushing consumption of disposable
cutlery in the foodservice outlets segment. Currently, retail sales account for over 40% share in
the disposable cutlery market. While plastic spoon and fork currently generate maximum
revenue, “wood-based and edible disposable cutlery are gradually taking over”, it says. One of
the trends that is pushing demand for disposable cutlery is the growth of online food service.
While foodservice providers are directing their competitive efforts to suit increasing consumer
preference for online food ordering, it notes that there is also an effort to maintain the element of
sustainability, helping eco-friendly disposable cutlery gain traction.

The report adds that the Asian market holds the highest growth potential for the segment.
It is poised to witness a notable incremental opportunity in coming years, buoyed by the thriving
convenience food culture across the region. To capture this opportunity, Jesa will be enhancing
its networking marketing distribution model, increasing its brand awareness and visibility. The
company expect demand for their products to continue to expand. As such, the management team
acknowledged the need to compile an upcoming three years sales forecast plan. While the market
potential for green products is huge, Kartigha notes that there has yet to be any big players in the
market, especially in Malaysia. This allows Jesa Enterprise to grow, not just its products and
technology, but also its influence in the local green space. Currently, Fallaleaf brand is available
at the major hypermarket chains, organic stores, caterers, party planners and cafés. However, to
capture a higher market presence, sales force expansion is underway to capitalise the market
potential in the green market segment.
Source: Adapted and modified from Star online, ‘Green products gaining traction’, viewed 18
October 2020, < https://www.thestar.com.my/business/smebiz/2019/05/27/green-products-
gaining-
traction >.
Assume you are the Sales Director of Jesa. You are required to address the following issues in
the development of the sales management strategy:
(a) Given the sales force expansion, you are required to outline the SIX (6) key building blocks
to starting a sales force.

Start with a strategy: define the sales force’s mission, (develop a customer-oriented sales
force), skill sets (recruit sales force with good communication and active listening skills), and
customer benefits. (provide quality products and excellent service and maintain long term
relationship with the customers).

Appoint an expansion team: get hiring input from human resource executives and executives
who will manage the sales force. HR needs to assist in the recruiting and selection process, after
that to conduct training programmes for the new recruits as well as the existing sales force.

Leverage existing strength: look for new hires within your own ranks, your personal business
network such as Linkedin as well as getting recommendations from your clients and suppliers.

Go to the press: articles touting Jesa’s business model and management team can attract both
customers and salespeople. Jesa may participate in the Star/Edge newspaper special interview to
promote the company and the brand among the Malaysians.

Avoid compensation snafus: if the new team must work hand-in-hand with the existing sales
force, consider paying them both for the sale. Work out competitive compensation packages and
benefits at market rate or do better than your competitors.

Provide support: get out in the field with your salespeople and show them how to pitch the
product. Share best practices with the salespeople such as leadership by example, compliance to
legal and ethical requirements, and encourage salespeople to contribute ideas and get involved in
decisions.
(b) With the growth potential in the green market segment, propose FIVE (5) sales forecasting
methods to compile the three years sales forecast.
Subjective forecasting method

Sales force composite method: sales executives will estimate how much he/she expects to sell
during the forecast period. They should have a better knowledge on the buying pattern of the key
account customers under their care. For some reasons, some sales executives may either
underestimate or overestimate their sales. As such, these sales estimates may be adjusted at
various levels of sales management.

Jury of executive/expert opinion: this is a formal or informal internal poll of key executives of
Jesa. They may consist of executive director, sales director and manager to provide their
assessment of sales possibilities. They may discussed and debated upon to reach a consensus.

Objective forecasting method

Moving average: the company may use either a 2-year or 4-year moving average based on
actual past sales volume. However, it takes more data to begin forecasting with a 4- year than 2-
year moving averages.

Decomposition: this method applies to monthly or quarterly data where a seasonal pattern is
evident and can determine sales not only for the year but also for each period in the year. This is
especially useful as Malaysia has many festivals around the year.

Statistical demand analysis: Jesa may attempt to determine the relationship between sales and
the important factors affecting sales to forecast the future. Some of the factors may include price,
economy growth/industry growth, green consumption pattern, population growth and competitor
activities.

In general, the above forecasting methods suggest that no method is likely to be superior than
the other. As such, it is advisable for Jesa to choose a combination of subjective and objective
methods, comparing the results, and then employing managerial judgment to make a decision
on the final sales forecast.
Tutorial 8
Chapter 9: Sales Force Recruitment and Selection
1. What are the pros and cons associated with recruiting salespeople from competing firms?
Advantages to recruit sales people from competitor firm
1. These sales people may "bring along" their customers.
2. These sales people bring along their expertise and knowledge
Disadvantages:
1. Sometimes, these salespeople may find it difficult to conform to your company policies
and culture.
2. Staff loyalty issue is in question- you bring him a high salary here, so he also will join the
company who hires the highest salary.
2. Why are existing sales job descriptions often out of date?
Existing job descriptions are often out of date due to changes in customers expectations,
company policy , competitions and environmental factor change..
GST,SST

3. Recruiting the right salesperson is an important task for any sales oriented organisation. As a
sales director, design effective selection tools and procedures to evaluate your potential sales
applicants.
Selection tools and Procedures
1. Application blanks- also known as application form is a form to collect standard
information form the applicants such as personal details, education background,
employment history and references.
2. Personal interview- face to face interview to assess the applicant communication skills
and aggreessiveness, manager may use structured and unstructured question
Normally there are 2 interviews to select sales applicants.
I. shortlist applicants
ii . second interview= more comprehensive interview.
3. References checks-(referral not blood relationship) to provide additional information and
opinion about the sales applicants such as punctuality, team work, and ability to meet
deadlines issues.
4. Physical examinations (medical check-up)- to employ a healthy person to work. The
employment offer is subjected to passing the medical exam. Medical results will be kept
P and C.
5. Psychological tests- there are 3 types:
I. intelligence tests mental ability
II. attitude- test interest in and ability to perform job
III. personality- often tests traits related to future success in a job
*** the test score is used as a guide. High score do not guarantee for sales performance in the
future.
4. In a recent discussion on the use of the internet to generate applications, the following quote
was made and illustrates the application of the internet to the recruitment and selection process:
“It doesn’t care whom you know, what kind of suit you’re wearing, or whether you have a firm
handshake. Salespeople looking for a job may soon have to face their toughest interview yet---
with a computer.”
What are the advantages of using the Internet to conduct preliminary job interviews?
Can do it anytime
No need to prepare a space to conduct an interview, save travel time if the company is very far
from your house.
Advantages (Interviewee/ Applicant) = can take time to perfect your answers in a comfortable
environment at any time.
Advantages (Interviewer/Company) = Company can cast a wider net of applicants

What problems is a company that uses computer-aided interviewing likely to encounter?

Discussion on the progress of Group Written Assignment
Disadvantages (Interviewee/ Applicant):
Disadvantages:(Interviewer/Company) It is more like a mechanistic process. Companies may
miss out some good potential candidates.
Case study- inovar resource Sdn.Bhd

(a) Develop a set of selection criteria to recruit the sales force.

Demographic characteristics
- Age, gender, race
- age= below 35 year old, mixed gender and race is recommended as the customer base are
from different gender and races
Education Background
- Diploma; degree in marketing and business administration ( specialist)
Working Experience
- Sales experience in what, how many year
- car= sales experience in automobile industry
- In this case study= sales experience in the building materials industry. Prefer applicants
to have 1- 2 years experience
Personality
- Responsibility, sociable and a team worker. High responsibility is required as salespeople
need to follow up the project from the beginning until completion. Salespeople must also
be sociable as he needs to handle clients from various position
Skills
- Good communication skill to explain the product specification clearly and correctly,
negotiation and closing skills are important to confirm the award of the contract.

(b) Propose various training topics that would enhance the competency of the sales force.

Chapter 10
1. As the marketing manager of a computer company, you are required to design a sales contest
for the sales executives to boost the organisation’s sales during the low season of the year.
Elaborate on the important requirements for designing a successful sales contest.

2. Discuss the drawbacks of holding a sales contest among the sales executives.

3. J-Paints is a manufacturer of eco-friendly internal and external paint products. The company
has six sales executives to service the residential and commercial developers and building
construction firms in Klang Valley, Malacca, Johor and Penang.
 Sales executives need to handle a wide range of project clients consist of project managers,
quantity surveyors and contract managers. In order to provide excellent professional service
to the clientele, sales executives will be trained in the areas of product technical specification,
uses and misuses of the different types of paints products and basic application method. The
company also provides soft-skills workshops to enhance the qualitative aspect of the sales
force.

The company pays the sales force with a good basic salary, commission and other attractive
allowances. As Regional Sales Manager:

Design an attractive compensation plan for the sales force

Sales training topics
Product or service knowledge
- To train on products technical specification, uses and misuses of the different types of
flooring products and basic installation method. Also to brief on competitors products as
well
Market/Industry orientation
- to brief on how economic impact on the industry.and the house buyers preferences on the
design of the flooring products
Company orientation
= sales people need to learn company policies that affect the selling activities. Especially
the pricing policy and customer complaint procedure.
Legal and ethical issues
- Code of Conduct. sales people will be trained in the code of conduct of the
company. .Non-compliance will lead to penalty and dismissal.
Technology
- to train sales people on the proper use of information technology such as CRM software.
CRM to do customer data mining especially for B to B customers (developers and
construction companies)

1. Retailers recognised that sales training is important for a company to increase

competitiveness. Discuss the key success factors in achieving the sales training objectives.

Top management support to sales training. the company allocate a yearly training budget and
may outsource trainer to train the sales people
Sales people have a strong commitment to learn new skills. The learnt skills help sales people to
perform jobs more effective and efficiently.The training must be relevant to the company needs.
HR constantly review and upgrade the training programmes to feed the needs
1. As the marketing manager of a computer company, you are required to design a sales
contest for the sales executives to boost the organisation’s sales during the low season of the
year. Elaborate on the important requirements for designing a successful sales contest.
what is a sales contest?
Sales contest is a sales competition among the sales people
The requirement of the sales contest are:

1. Contest objective= objective must be clearly defined and specific. Time frame is short
(normally 2 weeks to 1 month)
2. Contest theme- to set an exciting theme to stimulate interest among the sale people
3. Probability of winning- to make sure that every participants has a reasonable chance to
win the prize

Types of prize
Types of contest reward= rewards must be attractive. Dollar value of the reward must be
established.
Eg prize= phone
Prize 2 samsung phone
Prize air ticket
Or
Prize 1 rm8k
Prize = 5k …
5 consolation prize = RM 1k each
2. Discuss the drawback of holding a sales contest among the sales executive
a) sales people may "borrow" sales before the sales contest to increase the sales volume during
the contest period. It might not reflect their actual sales effort.
b) It may hurt team morale. In the past sales people worked as a team. Now they need to
compete to win the prizes
c) some companies may use a sales contest to cover up a faulty compensation plan.
d) Some sales contests may be poorly designed and implemented.
e) contest promotion= company announce the sales contest in the sales meeting. Sales manager
will brief the terms and conditions of the sales contest
3. J-Paints is a manufacturer of eco-friendly internal and external paint products. The
company has six sales executives to service the residential and commercial developers and
building construction firms in Klang Valley, Malacca, Johor and Penang.

Sales executives need to handle a wide range of project clients consisting of project managers,
quantity surveyors and contract managers. In order to provide excellent professional service to
the clientele, sales executives will be trained in the areas of product technical specification, uses
and misuses of the different types of paints products and basic application methods. The
company also provides soft-skills workshops to enhance the qualitative aspect of the sales force.

The company pays the sales force with a good basic salary, commission and other attractive
allowances. As Regional Sales Manager:

Design an attractive compensation plan for the sales force.

Salary = design salary scale based on qualification (SPM, Diploma, Degree) and the number of
years of relevant working experience.
Commission= commission is pay based on sales volume. It is calculated a % on the sales
volume
Normally 1% to 3 % on the sales volume
Companies may offer individual commissions . some company may offer both individual and
group commission
Sales bonus = usually is an additional incentive to top sales performers. Normally 1 to 3 months
based on the company performance.
Benefits = petrol and car allowance,parking and toll charges, hand-phone
reimbursements,entertainment claim = lunch , dinner and drinking sessions, staff discounts
Tutorial 11 - chapter 6

1. Examine the 5 major factor that influences salesperson performance ( s 6.1)

- Role perceptions :
a) role accuracy- high role accuracy leads to high sales performance
b) High role conflict leads to low sales performance
c) High role ambiguity leads to low sales performance
- aptitude
a) If a SE has good physical factors such as physical attractiveness, a good aptitude
factor such as verbal intelligence and personality factor such as sociability. This
SE will out- perform others in the sales performance.
- Skill level (chapter 2)- skill level of the SE are the key success factor in sales
performance. Skill such as communication, negotiation and closing skill are important
during a selling process
a) Sales presentation
b) Vocational skill
c) Vocational esteem
d) General management
e) Interpersonal
- motivation
A highly motivated SE will put more effort in the sales job to achieve a better results,
thus contribute to good sales performance
- Persona;, organisational and environmental variables
- for closeness of supervision- if it is a complex job, closeness of the supervision leads to
high sales performance.

2. Although many different kinds of tests exist, their ability to predict sales performance has
been weak. How do you account for this?
Intelligence – tests mental ability
Aptitude – tests interest in and ability to perform job
Personality – often tests traits related to future success in a job
In general, test is only one factor. There are other factors that impact on sales performance.
Factors such as skills and role perceptions are not included in these tests.
Many "test wise " candidates can scored high in the tests
Many "test wise " candidates can scored high in the tests
A lazy candidates may scored high marks
3. A sales representative for Digital Technologies is faced with a demand from an important
customer that is in direct conflict with company policies. The customer wants several product
modifications with no change in price. What can the sales representatives do to handle this
conflict?
This is example of role conflict
a) First, explain to the customers the reason for the price increase is due to changes in the
specification. Not able to follow the old price.
b) Pass this matter to the sales manager.

4. Use example to describe the 7 dimension to sale job satisfaction

a) The job itself = Se need to assess if the job is challenging, exciting or boring.
b) Co-workers = where your colleagues are responsible and can work as a team.
c) Supervision = your supervisor is tactful and appreciates your ideas..
d) company policies = your company benefits is one of the best in the industry. The management
is visionary and progressive.
e) Pay = My income provides me a good standard of living. may provide luxury such as overseas
travel..
f) promotion = There are opportunities for promotion in my company that is based on merit.
g) = I have a pool of loyalty customers who support me and we have mutual respect.
Tutorial 12

1. Discuss the criticisms of financial incentives in sales motivation programs.( financial

incentives- extrinsic rewards refer to pay, commission and sales bonus.

Extrinsic rewards can distract sales people. If SE to focus on earning more income, he/she may
overnight on building customer relationships. To secure customer loyalty is important here

Case study: land escape vacation club

Time-share vacation- sales membership
3 salesperson

1. In what career stage would you place each of the 3 salespeople?

4 stages of career stage
- Exploration (Zaoh Jones)
- Established (catalina) because she is reluctantly to transition from Exploration to
establishment
- Maintenance
- Disengagement (John) hobby is more important than job

2. If you were a sales manager, how would you motivate each salesperson? Explain your
recommendation?

Catalline is in the Establishment stage. Because of older age, family size. She generally has a
higher valence for higher order rewards. She is in need of money. Catalline can be motivated by
recognition and additional financial compensation. Denise as a sales manager may recommend a
job promotion depending on her performance by year end.

Zaoh Jones is in the exploration stage. He is younger and has no family( no married). This is his
first sales job. His goal is to make as much money as possible. He has a high desire for lower
order rewards. He can be motivated by more money. Denise may design a sales bonus scheme.
Company may provide proper training and supervisory guidance.(feedback )

John is in the disengagement stage. John is 55 year old, he has reached a satisfactory level of
compensation, and no desire to earn more money and to get promoted to sales manager. Give
opportunities to lead and share experience with junior SE. Danise may suggest promotion outside
sales management such as sales trainer.
 3. What measure might you use to motivate them as a group?
Denise must provide equal treatment for ALL. Do not play favourites..
Make promotion policy transparent. Promotion is based on merit
Provide group commission scheme
Organize motivational camp- team building activities
Company trip
Bring SE for lunch or dinner sessions
Tutorial 13-chapter 12 cost analysis

1. You are given the following information about two salespeople: Salesperson A earns
RM24,000 annual salary and salesperson B earns RM26,000 annual salary. Both earn 1.5%
commission.
The following are the costs incurred:
i) Advertising and promotion costs are RM4 per unit.
ii) Packaging cost is RM2 per unit.
iii) Order processing cost is RM1 per order.
iv) Transportation charges amount to RM3 per unit.
Salesperson A Salesperson B
(RM) (RM)
Total sales 750,000 900,000
Total cost of goods sold 585,000
702,000
Gross Margin 165,000 198,000

Selling and admin Expenses

Salesperson salaries 24,000 26,000
Commission (1.5% on sales) 11,250 13,500
Advertising and promotion 60,000 72,000
Packaging 30,000 36,000
Order processing 250 200
Transportation charges 45,000 54,000
Total expenses 170,500 201,700

Net Profit (loss) (5,500) (3,700)

a.Calculate the contribution to profit (loss) made by each salesperson.
Both of the salesperson having losses
Salesperson A incurred losses RM5500, Salesperson B loss RM3700
B based on your answer in (a) above, what recommendations can you give to the company to
improve the profitability of the salespeople?
Increase sales by company may review the marketing mix strategies. Redesign the pricing and
promotional strategies to increase the sales volume.

Reduce expenses= company may review the high expenditure in advertising and promotion cost.
Negotiate or search for alternative advertising agencies or lower the cost of advertising methods.
Provide sales bonus= maintain existing, compensation scheme=company may provide sales
bonus based on profit.
Review training needs= sales person may lack effective selling and closing skills. Companies
may provide training to upgrade these soft skills.

As the sales manager of the M.N.O. Company, you are trying to evaluate the performance of two
districts. You have to look at how each district has managed its assets employed in the selling
function. Your task is to determine each district’s ROAM.

ROAM ANALYSIS

Districts 1 2
Total Sales $800,000 $500,000
Total Cost of Goods Sold 624,000 390,000
Gross Margin 176,000
110,000

Variable District Expenses

Salesperson Salaries 49,600 31,000
Commissions 8,000 5,000
Office Expenses 9,600 6,000
Travel 12,800 8,000
Total Expenses 80,000
50,000

Net Profit (Loss) $96,000 $60,000

District Investment in Assets

Accounts Receivable 120,000 45,000
Inventories 200,000 80,000

ROAM= contribution as a percentage of sales X Asset turnover rate

Contribution as percentages of sales= ratio of net contribution / by sales
Roam = Net profit X 100
Assets

ROAM district 1 =[96,000/(120,000+200,000) ]X 100= 30%

Roam District 2= [60,000/ (45,000+ 80,000)]X 100= 48%

District 2 performs better than district 1 with a higher ROAM.

 Tutorial 14
Chapter 13: Evaluating Salesperson Performance

1. Assess the strengths and weaknesses of objective versus subjective measures used in
evaluating the sales force performance.

Objective measure
Strength = it measures the effort of the salesperson. It is a quantitative measure of the sales
performance
weakness= these methods are too focused on quantity rather than quality in the salesperson
performance. Based on “figures” to assess salesperson performance

Subjective measure
strength= provide a greater focus on “qualitative” , measures that affect the quality of the
salesperson's performance. Qualitative measures such as customer relationship
weakness= as this measure is often based on the manager evaluation, there is room for bias in
the measurement.

2. Assess the common attributes (factor) used for a subjective measurement to evaluate the
sales force.

Sales result
Job knowledge
Management of territory
Customer and company relation
Personal characteristics
1) Job knowledge: to assess SE on the Knowledge of company policies, prices and products.
2) Management of territory: Planning of activities and calls, controlling expenses, and
handling reports and records.
3) Customer and company relations: The salesperson’s standing with customers, associates
and company
4) Personal characteristics: Initiative, personal appearance, resourcefulness.
5) Dependability = to assess the SE the amount of supervision need. can the SE work
independently or not
6) Judgement = to assess the level of judgement of the SE . Is SE made frequent errors or
display unusual comprehension and analytical abilities
7) Attitude towards company= to assess SE the amount of support towards company policy.
SE gives unwavering support, passive support or does not support the company policy.
3. Analyse the common problems that arise when using a subjective performance measurement
to evaluate the sales force.
Problems with subjective performance measurement
● Lack of an outcome focus: The most useful type of performance appraisal highlights
areas of improvement and actions that must be taken to implement such
improvement. However, most companies have not taken this step. Rather, they have
simply identified attributes to be related to performance, but they have not attempted
to systematically assess whether the attributes are key. Using BARS (behavioural
anchored rating scale) will help to overcome this weakness.
Lack of an outcome focus = Company may select many factors for SE evaluation.
However, some factor selected may not be the KEY factors for evaluation.

● Ill-defined personality traits: Many subjective performance evaluation forms

contain personality factors as attributes. These attributes might include initiative and
resourcefulness. Although these attributes are intuitively appealing, their relationship
to performance is open to question.ill-defined personality traits: company may choose
initiative and resourcefulness as the factor to evaluate SE. However their relationship
to performance is open to question.
● Halo effect: The halo effect holds that a salesperson’s overall performance evaluation
can be predicted quite well from their rating on the single performance dimension
they believe is the most important. Different salesperson might have different beliefs
about what is most important, thereby compounding the problem.
● Leniency or harshness: Managers will appraise staff based on their own
personalities and perceptions of what comprises outstanding performance, and no
fundamental differences may exist in the way the salesperson under each of the
managers is actually performing.
● Central tendency: Some managers err in the opposite direction in that they never, or
rarely, rate salesperson at the ends of the scale. Rather, they use middle-of-the-road or
play-it-safe ratings. One learns very little from such ratings about true differences in
performance, and such rating can be particularly troublesome when company
attempts to use history of poor performance as the basis for terminating the staff.
Some manager use middle of the road ratings. All SE will be given average marks =
3. it will create problem when company want to terminate staff

● Interpersonal bias: Interpersonal bias refers to the fact that our perceptions of others
and social acceptability of their behaviours are influenced by how much we like or
dislike them personally. Research suggests that a salesperson can use personal
influence or impression management strategies on the manager to bias evaluations
upward. Interpersonal bias = marks given based on how much SM like or dislike the
SE. This is a serious problem in the bias element.
 ● Organisational uses influences: Performance ratings are often affected by the use to
which they will be put within the organization. If promotions and monetary payments
hinge on the ratings, a tendency may exist towards leniency on the part of the
manager who values the friendship and support of subordinates pressing for higher
ratings.
Organisational uses influences: Some managers may want to help SE based on
friendship in the case of salary increment and promotion matters

4. What is 360-degree performance feedback? 

rather than relying on purely objective measures or on subjective measures generated by
one person the sales manager, information for performance evaluation may come from
multiple sources simultaneously such as external customer, internal customer, members of
salesperson’s selling team and sales manager
360-degree performance feedback is to minimise the problem of subjective measurement.
Rather than relying on purely subjective measures generated by SM information for
performance evaluation may come from multiple sources simultaneously (external
customers, internal customers, members of salesperson’s selling team and sales manager.)