Sales and Sales Management

Bus 258f Sales and Sales Management

Tuesdays and Thursdays 2:00 – 3:30 pm

Fall Semester 2014

Lemberg 54

Grace Zimmerman Senior Lecturer

Email: [email protected] Office: Lemberg 161 Office Hours: Mondays and Wednesdays 11:00 – 12:20 and 2:00 – 3:00 pm, or by appointment

Brandeis University International Business School Course Description

To be successful in business, you have to be able to sell yourself, your ideas, your product and your company. Indeed, one of the primary skills any good CEO must have is the ability to sell her ideas and passion to shareholders, the board of directors, senior staff, employees, customers, vendors and lenders.

Sales is the ability to learn about a customer’s needs in order to present just those products and services offered by the organization that most effectively help the customer achieve her stated goals, secure her commitment to buy the product, receive payment, provide installation and ongoing service and maintain a positive relationship over time.

Obviously, the sales function is central to every enterprise, as every enterprise needs revenues. This course will explore professional sales concepts and techniques, as well as options and methods to best manage the company’s sales force.

In most classes, we will analyze case studies that require us to identify sales and sales management opportunities and challenges, and to develop strategies to maximize revenue and customer satisfaction while optimizing costs to sell, service and maintain the customer relationship.

Learning Goals and Outcomes

Through case study discussions, you will learn to:  Analyze and solve complex sales and sales management problems through case discussion.  Evaluate applicability of sales and sales management concepts and techniques in a variety of enterprises and markets, including, but not limited to financial services, consulting, and high technology sales.  Build a persuasive argument  Express that argument extemporaneously in the classroom among peers, in writing and in with the aid of visuals in a formal presentation  Make marketing and sales management decisions backed by solid reasoning  To listen critically and respectfully to the ideas of classmates.

Course Approach

This course will combine case study pedagogy with a professional online sales training program. The first half of the module will be based on the sales training program and will explore professional B2B selling techniques. The second half of the module will utilize case studies to explore B2B sales management issues and strategies.

In each session of this course we will analyze and solve selling and sales management challenges. We will use our time together in the classroom to sharpen our skills in diagnosing problems and to build a framework to understand and leverage individual sales representative’s and sales manager’s opportunities. To benefit from this approach, each student must come to class prepared either with the sales training materials and exercise assignments or with an analysis and solution for the sales management opportunity or challenge at hand, not simply regurgitation of case facts. Class time together will follow a discussion format, with a constant challenging of viewpoints from the instructor and student alike. Meaningful, daily participation is essential.

Course Materials

Textbook: We will not be using a textbook per se for this course. Instead, we will use an online professional sales training program from Rain Group called Rain Selling, Harvard Business School cases and notes. The HBS cases and notes are included in the coursepack.

I also highly recommend a Harvard Business Review Special Double Issue: Sales, Managing Global Accounts, HBR R0709G, and a classic sales book by Dale Carnegie: How to Win Friends and Influence People. The book is sold widely. You can buy new, used and electronic copies at Amazon and other booksellers, any edition will do. It is an older book, but a classic for very good reasons. It’s a quick and powerful read. Don’t overlook it. The cheapest ($16.95) and easiest way to buy the HBR Special Sales edition is by following this link: http://beta.zinio.com/www/browse/issue.jsp?skuId=150962285&categoryId=47

RainSelling (the online professional B2B sales program): This sales training program is typically sold to corporations for their professional B2B sales representatives at a cost of $200/month/sales rep. We are lucky to be able to access this fabulous program for $60/student for the module. The president of Rain Group will be the opening class speaker. He will see how many of us there are. Please don’t infringe copyright material and jeopardize future student access to this program. Buy your own access to the program. I’ve negotiated a fabulous deal for us. Here’s the link: http://store.rainsalestraining.com/product?catalog=TP-002Orglv

Once on this page, you will be able to create a username, password and enter payment information for the program through PayPal ($60 for the course). You will receive a confirmation email of your payment. Once you’ve registered, you can go to: www.rainselling.com/moodle

CoursePack: Case studies are the focal point of most class discussions. Course packs with the cases we will cover are REQUIRED and only available through Harvard Business Publishing at http://hbsp.harvard.edu/, with a specific link to our course pack at: https://cb.hbsp.harvard.edu/cbmp/access/27988992 Course packs are comprised of copyrighted materials. Again, please respect intellectual property by purchasing your own copy of the materials. Syllabus Changes and Updates

The intention is to follow the syllabus as presented. However, changes to both order and content will occur to make the best use of available or new resources, or to explore in greater detail topics that arise during class discussions. Changes and specific assignments will be announced during class, and students that are absent are responsible for obtaining relevant changes from their classmates.

Grading

For the purpose of grading, assignments will be weighted as follows:

Class Participation 40% Case Write Up 30% Negotiation exercise 10% Sales Negotiation Exercise 20% TOTAL 100%

Disabilities: If you are a student with a documented disability on record at Brandeis University and wish to have a reasonable accommodation made for you in this class, please see me immediately.

Academic Integrity: You are expected to be familiar with and to follow the University’s policies on academic integrity (see http://www.brandeis.edu/studentlife/sdje/ai/). Instances of alleged dishonesty will be forwarded to the Office of Campus Life for possible referral to the Student Judicial System. Potential sanctions include failure in the course and suspension from the University.

Class Participation. Students are expected to attend every class and participate on a regular basis. Less value will be placed on the quantity of your contributions than on their quality. Participation is graded daily, as follows: -5 absent without prior notification -3 absent with prior notification 0 present but without a class contribution +1 contributed a case fact +2-3 contributed analysis or a reasoned recommendation +4-5 contributed excellent analysis and/or reasoned recommendation

For many students, qualitative analysis comes more easily than quantitative analysis, therefore, I will on occasion cold call students to present their quantitative analysis to the class. Be prepared. If you are hesitant to participate in class, please come to see me. I will work with you.

Absence from two or more classes can result in a failing participation grade for this course. If you have to miss class for any reason, please notify me in advance. Further and importantly, anyone interested in taking this course MUST ATTEND THE FIRST DAY OF CLASS. NO EXCEPTIONS! Many of you will bring your laptops to class. This is fine if you are using your laptop to access the case we are discussing or your notes on the case. Using your laptop or other electronic devise to access the Internet is distracting to others and is not acceptable. You will be marked as though you were absent if you are online during class.

To allow me to get to know you more quickly, please send me an email with your preferred email address and a few sentences about your work experiences and career goals. Also, please select your seat for the semester by the start of the second class, and use a name card, at least for the first several sessions.

Simulation Exercise. For class #4, Thursday, November 7, you will take the simulation exercise in the RainSelling program, parts 1 & 2. Submit screen shots of your scores.

Negotiation Exercise. For class # 5, Tuesday, November 12, you will participate in and write up a negotiation exercise prior to class. Follow the instructions for the exercise listed below. The analysis and negotiation are to be done on your own, without any outside assistance.

Case Write-Up. For class # 9, instead of just preparing the case for class discussion, students should submit their answers in a case write-up of up to 4 pages. This is an individual assignment, one that you need to do entirely on your own. Cases should be handed in at the start of class on Thursday, November 20. Submissions after the start of class will not be accepted.

You have 4 pages in which to write your analysis. You can also include addenda, if you need or choose to. This case analysis is no different than any of the cases we will do in class. You will be practicing case analysis skills virtually every time you prepare for class. Organize the relevant facts. Don't give me case facts that aren't pertinent to your analysis; I've read the case, too. Do necessary analysis. Come to conclusions. Develop detailed recommendations. Be sure that your logic flows from analysis through conclusions to recommendations. Be persuasive. You don't have to follow the outline of the questions in the syllabus, but you need to include the answers to the questions at a bare minimum. I don't need beautiful prose; you can use bullets, etc., but if you use a chart for pros and cons, say, be sure that you come to a conclusion. Cases write-up grades will be based on completeness and quality of analysis and recommendations, and the logic, strength and clarity of your arguments.

Office Hours

Office hours are Mondays and Wednesdays from 11:00 – 12:20pm and 2:00 – 3:00 pm in Lemberg 161, and by appointment. I enjoy the opportunity to get to interact with you as much as possible. Email has proven very helpful in this regard. Please don’t hesitate to contact me if you need assistance in any manner, or have comments, concerns or words of praise for some aspect of the course. I can be contacted as follows: [email protected] Assignments

Class #1: Selling Value Propositions (Th, 10/23) Module: What Sales Winners Do Differently

Pre-assignment:

Reading: What Sales Winners Do Differently (Rain Group) Personal Selling and Sales Management (HBS 9-507-039)

RainSelling: Lessons: Keys to prospecting Networking and relationship building Keys to qualifying prospects The RainSelling conversation framework

There are several different formats for learning the RainSelling method, including: video, PPT, transcripts, MP3 and exercises. I think you will get the most by viewing the video first and doing the exercises and concept reviews, when available. I recommend the PPT, MP3 and/or transcripts to reinforce the ideas once you’ve seen the video. I realize that this preassignment and the assignments for the rest of this module will take you well beyond the typical 2+ hours of viewing, reading and analysis. Budget the time, come prepared to class. If this workload doesn’t match your commitment to the class, now is the time to bow out.

Class #2: Personal Selling Process (Tues 10/28) Module: Discovery and Selling In

RainSelling: Lessons: Maximizing the Impact of Your Solution Bringing New Reality to Life Telling a Convincing Story Balancing Advocacy and Inquiry Find your persona Find “solution” in Maximizing Sales Achievement

Research: For the class periods 2 and 3 we will practice the sales skills you will be learning through the RainSelling program. View and prepare the lessons. In addition, you will need to do some preliminary research and analysis on a fictitious sales scenario so that we can role-play in class. On the next page of this syllabus, you will see a competitive analysis that was done a few years ago on the cell phone industry. You can use this analysis to help guide your research, as a template, if you will, for our computer role- play scenario. - Please research the competitive pros and cons for a Fortune 500 company whose IT department wants to standardize on either Apple or PC laptop computers for its professionals worldwide and in all departments. Consider the 5Cs, 4Ps and all other relevant factors. You will not know which product you will represent in your sales efforts, so your research must prepare you to effectively sell either product; more instructions to follow. We will role-play in class. Be prepared.

Role-Play Preparation: RAPPORT, DISCOVERY and QUALIFICATION Using your competitive analysis of the Apple and PC laptops, prepare yourself to meet and begin the selling process with a Fortune 500 company in your territory. The company has many divisions. These divisions use their laptops in the widest array of possible applications. As with most companies, the majority of users use the basic functions of a laptop: processing documents, running spreadsheets, making presentations, communicating electronically, etc.

The company would like to standardize on one laptop brand for ease of IT support, including: software, service, and security considerations. You will be paired with a classmate. Each student will be assigned one of the two laptop types. You will role-play; taking turns to be the client and the sales representative.

To prepare for the role play you will need to consider the issues that a Fortune 500 company faces in its IT choices and the pros and cons of your product, and those of your competitor. Really thinking through “both sides of the table” will help your sales efforts. As we know, you have to understand your customer to be an effective marketer and salesperson.

In this FIRST “MEETING” with your prospect, the OBJECTIVES are RAPPORT, DISCOVERY and QUALIFICATION. We will handle objections and closing techniques in the next class period. Focus on establishing a good working rapport, and learning all that you can about your prospect’s needs, challenges, buying criteria and buying process. Make sure that this prospect is worth investing additional time. Page 91, Figure 5.7 Competitive Comparison Framework Chart: Smartphone Market, Marketing Planning by Stephan Sorger, Pearson Publishing Compiled in 2010 or so, clearly only for illustrative purposes, not up-to-date

Research In Criteria Nokia Motion Apple HTC Market Share (units) 45% 19% 13% 6% Enabling mobility by offering a range Rapid evolution of of phones for The cool phone, for advanced different Focus on e-mail for style-conscious functionality, for an Messaging stakeholders enterprise consumers "anti-iPhone" World leader; many Optimized for e- Stunning style and Leverage power of Competitive devices cover many mail; government design; iPhone Google Android Advantage market segments approved security Apps; Steve Jobs operating system Outstanding brand. Solid hardware. Large scale, good Focus on enterprise Stylish design. Partnerships with design, and tight core business; Profitable retail Google Android Strengths operations strong security operations. and Palm webOS Exclusive focus on hardware (vs. Low levels of software) led to resources; slow No clear succession Being sued by losing share in traction in plan once Steve Apple for patent Weaknesses smart phones consumer market Jobs leaves infringements Product (Flagship) Nokia N97 BlackBerry 9700 Apple iPhone 3GS Droid Moderate; Premium; Premium; Premium; subsidized by cell subsidized by cell subsidized by cell subsidized by cell Pricing phone carriers phone carriers phone carriers phone carriers Wide distribution Wide distribution Selective through Alltel, through Alltel, distribution AT&T, BestBuy, AT&T, Qwest, through T-Mobile, MetroPCS, Sprint, Spring, T-Mobile, Verizon, AT&T. Can T-Mobile, U.S. Exclusive U.S. Cellular, also purchase Cellular, Verizon, distribution via Verizon. Can also unlocked mobile Virgin, WalMart AT&T Wireless purchase at HTC Place phones online and more Services online store AT&T website; Social media, such Advertise online at Promotions Apple website; as HTC Wildfire nokia.com and on through cellular Steve Jobs keynote Friend Stream Promotion carrier's website carriers speeches promotion Class #3: Handling Objections and Closing Techniques (Th 10/30) Module: Leading Masterful Sales Conversations

RainSelling: Lessons: Overcoming Objections Leading Sales Negotiations Closing Sales

Role-play Preparation: HANDLING OBJECTIONS and CLOSING TECHNIQUES This is the follow up to the first set of “meetings” between you and your prospect. In this role-play scenario, you will meet with your prospect to address her needs and challenges with the features, functions and benefits of your product and company. You will handle her OBJECTIONS and make an effort to CLOSE the sale. As you did the last time, you will each play the sales person and the Fortune 500 company prospect. You will retain the laptop company assignment you were given the last time.

Class #4: Selling Simulation, Parts 1 & 2 (Tues 11/4) Module: Professional Sales

RainSelling: Simulation part 1 & 2. Do the simulation as an individual assignment. Submit a screen shot of your score sheet for parts 1 and 2 of the simulation at the start of class. Class #5: Negotiating an OEM Deal (Th 11/6) Module: Sales Negotiation Exercise

Case: OuterBay and EMC

DUE: Your hardcopy write up of the negotiation is due BEFORE the start of class. Please remember, this is an individual assignment. Your negotiation preparation write-up is to be analyzed and written without consultation with anyone. Along with your name at the top of your paper, please indicate the role you assumed for the negotiation and your negotiation partner’s name (classmate). I will assign teams and roles the week before the negotiation exercise. You will arrange to meet your negotiation partner at a mutually convenient time prior to our class session.

NEGOTIATION EXERCISE PREPARATION:

Questions: 1. What are the pros and cons of doing an OEM deal with EMC from Michael Howard’s perspective? How might Howard’s list be different from the board’s list or from Mark Burton’s perspective? What would be the consequences to OuterBay if EMC did this type of deal with Princeton? 2. From Scott Menzel’s perspective, what are the pros and cons of doing a deal with OuterBay? 3. Based on EMC’s initial offer, which terms, or combination of terms give you the most concern, in other words, what are the potential deal breakers from your perspective? What would you be willing to offer on these terms to try to come to an agreement? Where do you walk away? In other words, what deal terms go too far? 4. Assuming EMC and Outerbay can come to terms, what steps does Mark Burton need to take in order to maximize value from the deal while retaining an effective and motivated internal sales organization?

TO BE COMPLETED AFTER THE NEGOTIATION:

5. Which side of the negotiation did you play? Did you or did you not come to an agreement? If so, spell out the terms of your agreement, and explain your rationale. Are you satisfied with the outcome of your negotiation? Why or why not? Class #6: Selecting the Sales Process and Levers (Tues 11/11) Module: Sales Management Strategy

Readings: Business to Business Marketing

Case: ENSR International (HBS 9-503-075)

Questions: 1. Which of the proposed solutions do you favor and why? 2. What is the ideal client for ENSR? 3. Are they getting enough of their ideal clients? 4. What is the ideal client for a CSC manager?

Class #7: “Foot In The Door” (Th 11/13) Module: Selling In

Case: SaleSoft, Inc. (A) (HBS 9-596-112)

Questions: 1. What is your plan? Do you plan to continue with PROCEED or Will you introduce the TH product? Provide support for your plan. 2. What is the buying cycle for PROCEED? Who are the people involved in the purchase of the CSAS solution? What is the role of consultants? 3. What is SaleSoft’s current approach to selling PROCEED? 4. Quantify the benefits of CSAS to a customer using the information given in Exhibit 7. 5. What value does TH provide a customer? How is this different from the customer value delivered by PROCEED? 6. What is a Trojan Horse? How does it facilitate customer acquisition and retention? 7. How will you price TH? 8. How do you think SaleSoft’s organization structure will affect its ability to sell PROCEED or TH? Class #8: All At Once (Tues 11/18) Module: Selling In

Readings: Sales Force Design and Management

Case: HP – Computer Systems Organization: Selling to Enterprise Customers (HBS 9-500-054)

Questions: 1. Is this the time for HP-CSO to institute more changes? 2. How is selling instruments (HP’s traditional business) different from selling computer systems? Why does HP treat its sales force as a cost center? What are the implications of such a structure? 3. What is HP-CSO’s approach to building relationships with Enterprise customers? What are its strengths and weaknesses? 4. Do you agree with the findings of the two audits? What are the consultant’s recommendations? How is the new approach different from the HP-CSO’s current approach to managing enterprise customers? 5. Are you comfortable with the conclusions of the audit? What are your recommendations to Diaz?

Class #9: Motivating Sales Behavior/Compensation (Th 11/20) Module: Sales Management Strategy

DUE: Your hardcopy case write up is due BEFORE the start of class. Please remember, this is an individual assignment. Your case write-up is to be analyzed and written without consultation with anyone. Be specific and detailed in you analysis and recommendations.

Case: Sales Force Integration at FedEx (HBS 9-506-029)

Questions: 1. Compare the Express compensation with the Ground compensation plan. What are the key differences? Why do you think these differences existed? 2. What are the main objectives that Beyl and his team should consider in setting the new compensation plan for the integrated sales force? 3. Devise a compensation plan that meets these objectives. 4. What criteria/metrics would you suggest Beyl use t evaluate the effectiveness of the comp plan? 5. How will Ground/Express salespeople react to your plan? Class #10: Sales Organization to Increase CRM/Structure (Tues 11/25) Module: Sales Management Strategy

Case: Lincoln Financial Group (A) (HBS 9-508-028)

Questions: 1. What do you think of the LFD concept? 2. What does the proposal have to do with “customer intimacy?” How does this differ from what FedEx did? 3. Why would we expect retention or loyalty to increase as the number of touch points increase? Why wouldn’t LFG just offer incentives for their customers to have multiple touch points? 4. On p. 8 of the case, Thompson asks, “What if we had all of our wholesaling efforts under one umbrella? How would that allow us to serve our customer better?” What’s the answer to that question? 5. As Jon Boscia, how would you have weighed the feedback he received from his top management team? Which of the arguments did you find most compelling? 6. What are your primary concerns about the model? 7. Spend some time thinking about what Thompson needs to do to implement this strategy?

Thanksgiving Weekend – Enjoy your holiday!!

Class #11: Sales and Sales Management (Tues 12/2) Module: Sales Strategy

Reading: Dale Carnegie: How to Win Friends and Influence People

SPEAKER: Rob Malenfent, Morgan Stanley Class #12 Outcome and Behavioral Sales Management (Th 12/4) Module: Relationship Between Marketing and Sales

Readings: HBR Personal Sales and Sales Management: “Ending the War Between Marketing and Sales”

Case: Avaya (A) (HBS 9-508-048)

Questions: 1. What are the main hurdles standing in the way of effective demand Generation? What should Claereboudt and Gruenewald do to over- come these hurdles and build the demand generation engine they’re trying to build? 2. What do you make of the “gap” that Charlie Ill talks about on p. 10 of the case? What gives rise to this gap? Is this gap inevitable? What are some of the implications of this gap? 3. What is the objective of Marketing? What is the objective of Sales? How do we ensure that these objectives are aligned and reinforcing? 4. Once you come up with a plan for aligning Sales and Marketing, think about how you might implement your plan in Avaya’s markets. 5. Look closely at Exhibit 7. If you were the sales manager in charge of the Brazil market, how would you react to the fact that you converted only 2.8% of Marketing leads to sales? If you were the marketing manager, how would you react to the fact that only 30% of your leads were accepted by Sales?