Sales Chapter 1 Homework Sales managers attach high importance to these success factors because these factors strongly support the relationship selling model

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Sales managers attach high importance to these success factors because these factors strongly

support the relationship selling model. Listening skills are of paramount importance because they

allow the salesperson to understand the needs and objections of the customer. Follow-up skills

10. A wise and weathered sales sage tells you: “Today, all selling is global.” Is the sage

right? Why or why not?

The sage is absolutely correct. Regardless of what type of selling one engages in, somewhere up

11. Like all firms, Apple operates within an external environment of factors beyond its

immediate control. Consider the various aspects of the external environment

portrayed in the chapter. What specific external factors have the most impact on

Apple’s ability to practice successful relationship selling? Why is each important?

Although Apple must take into account all five components of the external environment

(economic, legal and political, technological, social and cultural, and natural), one could argue

Economic: The total potential demand for Apple’s products and services within the United States,

and any other country, depends on that country’s economic conditions—the amount of growth,

the unemployment rate, the level of inflation, and the gross domestic product (GDP).

Global Connection – Shift to Value-Added Selling Is Biggest Challenge in Global Sales

Answers to Questions

1. Do you know of any unique cultures around the world that might create particular

challenges to implementing a value-added selling approach? Discuss the cultural

nuances and how it might impact the ability of a salesperson to utilize value-added

selling.

Answers will vary. Generally, closed cultures such as Japan create unique challenges for

2. What does it mean when Mr. Eades says that solution selling requires an organizational

culture change? What organizational culture changes would be necessary to make sure

solution selling is successful outside the firm’s home country?

Solution selling requires all functions in the business working together to add value to the

customer. Mr. Eades is highlighting that many organizations still operate with traditional silos

Ethical Dilemma – Teaching Notes

Teaching Notes

Relationship selling is about building profitable relationships with customers that endure for a

long period of time (strategic alliances). Submitting policies that will most likely not be accepted

harms not only the customer, but also the company. While not violating the letter of the contest,

Ted would be violating the spirit. The dilemma presents the opportunity for a great discussion on

building trust with the customer and the company.

of pressure goes a long way to setting the stage for the ethical conflict inside Ted.

As you move through the ethical dilemmas in each chapter you will find they target one or two

critical content areas from that chapter. In this case, the question of value creation and customer

orientation drives the discussion. Do Ted’s actions create additional value for the customer, or

are the actions designed to selfishly reward Ted by manipulating the reward system at All Star

Insurance? Clearly, if Ted submits policies he knows will not be underwritten, he is not working

in the best interests of the customer or the company.

Answers to Questions

1. What should Ted do? Why?

The answer, of course, is to submit only valid policies that have a high probability of being

underwritten. In other words, continue to behave in an ethical fashion. Ted has been successful

with the company, and to compromise his principles now would be harmful to him, the company,

2. What conflicts do salespeople run into when they try to balance the needs of the company

and their customers?

As the students will examine in the course of the book, relationship selling demands salespeople

play the role of advocate for the customer and the company. This results in many conflicts, some

of which involve ethical decisions. Chapter 4 presents an in-depth discussion of ethical issues in

3. Is it OK for Ted to violate the spirit of the contest so long as he does not violate the letter

of the contest rules?

There are good reasons beyond the moral arguments for Ted to honor the spirit and letter of the

contest rules. First, violating the spirit of the contest is not in the best interests of the company or

Ted’s customers. It violates the value proposition by wasting the customer and company’s time

4. Who bears more of the ethical responsibility: management (for creating a contest with

poorly written rules) or Ted?

Management should work hard to create contests (and more broadly speaking, compensation and

reward systems) that are fair, easily understood, and do not deliberately put the salesperson in a

Mini-Case 1 – Creekside Outdoor Gear

This case blends together several aspects of the chapter into the decision situation faced by Joe

Edwards. Joe’s first realization is that the environment in which his business operates is

changing. Changes in the external environment are impacting various aspects of the company’s

internal environment. Changing population demographics along with technological

advancements and economic concerns are causing Joe to consider making fundamental changes

to his business. However, when he begins to look at his business in a critical sense he realizes

that he may not have the infrastructure or personnel to implement the changes he is considering.

Answers to Questions

1. Internal and external environmental factors affecting Creekside Outdoor Gear include:

a. Personnel (internal factor) – arises from the company not having a sales force nor

b. Financial Resources (internal factor) – a concern for Joe because his is a relatively

small company. Joe will need significant financial resources to hire a sales

manager, a sales force, and to potentially upgrade his production equipment to

handle the new materials.

e. Technological (external factor) – any company not staying current with

technological changes occurring in its industry courts disaster. New materials

used to produce the many products Creekside manufactures is causing Joe to

question whether or not his company can handle those materials.

2. A sales person relying on the transactional method of selling would be more likely to

emphasize his or her “close ratio” and discuss how he or she does not need to spend

much time getting to know customers and understand their business because most

purchase decisions come down to lowest cost and the ability of the salesperson to

convince consumers to buy. However, a salesperson who relies on the relationship

For Creekside’s westward expansion, Joe should focus on using a relationship selling

approach. Creekside sells a high-quality product, most likely at a premium price.

Consequently, he will not be able to pursue a low-cost strategy with his anticipated client

base in the Western states. Furthermore, the additional distance of the stores in the

Western states from the current base of operations in Philadelphia will add a layer of cost

that Joe does not have currently. Finally, Creekside will be a new supplier to the outdoor

3. If he wants to expand quickly, and develop strong relationships with his customers, Joe

should hire a sales manager to hire a sales force. If he needs time to gear up his