Question

Read the attached case and answer the following questions

After 10 years in business, John Shurtman has determined that it is time to hire a sales representative. As the founder and president of United Fleet Service (UFS), John has been the main driver of new business sales for the company. However, as UFS has grown, John has found that he must spend more time on planning and administration, leaving little time to generate new sales leads or call on potential customers. UFS provides maintenance, mechanical repair services, and body repair services to organizations that maintain fleets of large vehicles. UFS customers include mostly school districts that own bus fleets and municipalities that own fleets of fire and police vehicles. While UFS has a strong hold on these public sector organizations, John sees many opportunities for expansion through targeting other potential customers such as utility companies and commercial trucking companies. UFS has several competitors in its geographic area, but none provide as comprehensive a service as UFS. For example, several competitors provide mechanical repair services, but do not provide body repair services; on the other hand, several competitors provide body repair services, but do not provide mechanical repair services. UFS also has a reputation for high-quality repairs and fast turnaround times on service. With these strengths in mind, John is convinced that an effective sales representative that can take the time to contact and develop relationships with potential customers can help lead the organization to expansion. John has experienced steady growth over the past 10 years, acquiring just two or three new customers each year. Leads on potential new customers have come primarily through referrals from current customers. John personally called on the leads to secure sales. Once a target was established as a customer, John handed the customer account over to a service advisor. The service advisor’s role is to process incoming vehicles and communicate work progress with customers. Service advisors are also encouraged to generate new sales from current customers by suggesting add-on services or establishing ongoing maintenance schedules. Due to increased volume growth, the service advisors have had little time to develop more significant relationships with customers. Because of this, UFS has missed out on many add-on sales opportunities. Therefore, John plans to hire a new sales representative to both call on new customers and develop better relationships with current customers. Cultivating new customers will require cold-calling on

potential customers as well as following up on referrals from current customers. Because most companies that have vehicle fleets establish contractual relationships with mechanical service providers, some new customers may take a long time to acquire. That is, the sales representative may have to interact with a potential new customer over an extended period of time until the company’s contract with another service provider expires. Working with current customers will require significant interaction with the service advisors to understand each customer’s past history of services and identify opportunities to increase the number and frequency of services provided. Growing business from current customers will also require spending time developing relationships with each customer. Before he begins recruiting for this position, John must determine how to compensate the new sales representative. He’s researched market rates for sales representatives in his industry and has a targeted salary range, but he wants to make sure that the compensation plan provides enough incentive to both secure new sales and spend time developing relationships with current customers.

Source: Martocchio J (2018), Strategic Compensation, 9th Ed. Pearson International

Questions:

1. What are the sales objectives for the new sales representative? (50 Marks; word limit- 500 words)

Answer 1

sales objectives

for the new sales representative :

The new salesman needs to give total and proper answers for each client so as to help top-line income development, client obtaining levels, and benefit. Point by point prerequisites are as per the following:

Current Customers:

1. Working with current clients, by connection with the administration guides to see every client's previous history of administrations, and distinguish chances to expand the number and recurrence of administrations provided.
2. Generate new prospective customers by building up an increasingly noteworthy relationship with current customers.
3. Generate new deals from current clients by recommending add-on administrations or setting up progressing upkeep schedules.
4. Following up on referrals from current customers.5) Growing business from current clients by investing energy in creating associations with each customer.6) Maintain the agreement recharging the pace of the current clients.

New Customers:

1. Expedite the goals of client issues and grumblings to augment satisfaction.
2. Cultivating new clients relationship.
3. Establish legally binding associations with coordinating, clients, when the organization's contract with another specialist organization expires.
4. Maintaining positive business connections to guarantee future sales.
5. Performing money-saving advantage investigations of existing and potential customers.
6. Achieve settled upon deals targets and results inside schedule.8) Coordinate deals exertion with colleagues and different offices

Conclusion :

They also must create a good relationship with the customers both new and existing. This has helped to build his reputation which is another important thing for a new sale representative to do; building a good, strong reputation can help build a good and strong relationship between the clients and the company. A good reputation can go a long way when it comes to selling new services or products to an existing customer and open doors in order to get a new customer. A new sales representative must be able to do certain things as well such as cold calls to potential and existing customers and talk about the services that the company offers. A sales representative must also make sure that not only are new client’s happy but existing ones are also happy with the services that the company provides them.