SALES MANAGEMENT

Teacher: Dương Định QuốcTeam 3: Caselet 7.1

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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.