Situation: Read Case 2.1.
Characters: Salesperson, Schmidt business forms; Jim Adams, purchasing agent, Doctor’s Hospital
Scene: Location Jim Adams, office. Action salesperson stops in to see Adams.
REole play your first sales call with Adams now that you have all the information on why they switched suppliers.
Upon completion of the role play, address the following questions:
1. Should a salesperson have a strategy to go after lost customers? How might this be done?
2. It is easy to pass on the blame to the former salesperson, delivery, and production people. Discuss the pros and cons of this strategy.
Case2.2: Sales Ethics: A Case Study Background
Packaging Systems, Incorporated (PSI), a wholly owned subsidiary of an international oil company, is a major supplier of polyethylene film to various industrial and agricultural markets. In the past, a primary product has been a shredded film that is used for soil erosion control by farmers and commercial landscapers.
In recent years, PSI has become a major supplier in the pallet overwrap market. In this application, film is used to secure a product or products to a pallet for shipping. Compared with PSI’s other markets, growth and profits in the pallet overwrap market have been outstanding. The bright prospects for the pallet overwrap market coupled with the stagnation of the shredded film market has led PSI management to make the following decision: (1) limit production output and marketing activities of shredded film and (2) expand production output and marketing emphasis of pallet overwrap film.
The PSI salesforce was informed of the shift in emphasis in a memo from Bill Chandler, the sales manager for industrial and agricultural products (see Exhibit 2.10).
Current Situation
Jeff Braxton is the PSI sales representative in the Chicago area. He had given Chandler’s memo a lot of thought before he reluctantly began to implement his sales manager’s suggestions. During his weekly phone call to Chandler, Braxton had voiced some of his objections.
Chandler.So, Jeff, how is the shredded film cutback and pallet overwrap expansion coming along in Chicago?
Braxton:O.K., I guess, but personally, I have some problems with it.
Chandler: For example?
Braxton: Some of the shredded film accounts are refusing to roll over and play dead. They are saying that we
can’t cut them off, and a couple have been pretty hostile. They’re talking lawsuit, Bill.
Chandler: That’s out of your area of concern, Jeff. Let attorneys worry about that. Besides, I doubt many will sue when they consider the legal and financial resources of our parent company.
Braxton: Whatever you say, Bill. The other thing that bothers me is the written guarantee to provide pallet overwrap film. Seems to me that there could be shortages, strikes, or fires that could prevent us from following through on the promise to supply film.
Chandler: Highly unlikely, Jeff. You are worrying too much. You’re new to the game. Do yourself a favor and follow my suggestions.
Braxton: Well, you’re the boss…
In the past 30 days, several events had complicated the PSI strategy. An explosion and resulting fire had destroyed all the pallet overwrap production equipmentand inventory in one of the PSI plants. A terrorist group had declared its responsibility for the explosion.PSI sales representatives were instructed to tell their accounts that the damage was minimal and that supply and service levels would not be affected. PSI management hoped to use production from the other four plants to cover the loss until rebuildind could be completed.
Fifteen days after the crippling fire, PSI received another severe blow. A trade dispute with several oilproducing nation erupted. This caused almost immediate raw materiall shortages for all PSI products. The matter was now becoming unpleasant for PSI. Jeff Braxton’s phone call earlier in the day was the first of many bearing bad news for Bill Chandler.