MAR 3403-01: SALES FORCE MANAGEMENT

Case Study #1
Arthur Medical Supplies: The Unhappy Salesman

Mandi Herlan
2/18/2014





1. Explain and evaluate the selling style being used by Doug Smith.
Although Doug Smith is engaging in business to business selling and could be taking an
enterprise or needs-satisfaction (problem solving/consulting) approach he is using affiliative
selling, based on friendship between the seller and buyer. As discussed in Sales Management,
friendship is an important component in business to business sales, because the buyer will be
more likely to purchase products from someone they can count on, especially when the purchase
requires follow up after purchase for products, such as products Arthur Medical Supplies (AMS)
sells. The affiliative approach is illustrated a few times in the case; most noticeably the entire
case is taking place in the hung over mind of Doug Smith. The hung over state was from
take(ing) six potential customers to the hotel bar and running up a $1200 tab. His unlimited
expense account displays AMS supporting and encouraging this selling approach. Also affiliative
selling is noted when he mentions frequently golfing during the summer, and even being invited
to tournaments. These activities that are outside of business settings show comradery among
salesman and customer. He is very active in selling and covers his territory several times, being
away from home three to four nights a week, demonstrating his dedication and hard working
nature. Doug is committed to his relationships with his customers and sacrifices time at home
with his family to support his affiliative approach to selling.
. With his position as Regional Sales Manager, although functionally a sales
representative with no team, Doug Smith also plays a few roles within AMS. He is an account
manager, representing a certain geographic region, and a missionary salesperson (detail rep)
because he sells to people who recommend his product, but do not use it for themselves. Playing
all of these roles can be overwhelming and Doug has experienced some issues. There were some
internal problems but they were only enhanced by Doug by passively managing the supply chain.
Equipment was being shipped incomplete or even to the wrong customer. Although this could
be caused by the state of change inside AMS, Doug should be actively managing the supply
chain by securing terms from the company or expediting deliver to better satisfy his customers
and improve relationships. Also goals need to be more aligned. Doug cannot do much because of
the state of the company but he can attempt to align sales metrics, at least in his region.
Doug Smith has been taking an affiliative selling approach; he also is an account manager
and a missionary salesperson. With all of these roles he has not been paying attention to the
supply chain which is causing problems for his customers. His dedication as a salesman and his
affiliative selling approach explain his sales activities and relationships with customers. Also,
because this type of selling is a strong component of business to business sales, his activities and
use of the affiliative approach explain his success in growing the business in eight months of
being employed, and how he was able to meet his targets, even though it was difficult. His
struggle meeting his targets may be explained by the fact that there is no evidence for another
type of selling approach which may be useful in securing other clients.

2. As Doug Smiths mentor, provide him with the direction(s) he should take with his career.
Doug, I understand your current frustration with your position at Arthur Medical Supply,
I know you have been considering a number of different options and are confused as to what to
do next. Your career is very important to you, but your family life has not been what you were
hoping when you accepted this position, but the position isnt what you expected either. It is time
for a change and you need to be happy with your career.
AMS is a large corporation and there is good potential for promotion within the
company. You have showed tremendous effort and have done a great job of growing the business
over the past eight months that you have been employed with AMS. You have a future with this
company, and you should continue here. Things are changing and it is frustrating, not just to you
but to your customers. Understand though that things are improving. The changes being made
are positive within service and sales, and in the eyes of your customers this will be reflected
positively on you. It is going to be a slow process, as it has been thus far, but it will continue to
move forward as it is, and your devotion and hard work will not go unnoticed by your fellow
employees, your supervisors, or your customers.
Your success in such a short time and your respect for the company and your Vice
President should give you the courage to ask for a change in your position. Since you have
grown the business you know what will work for AMS to continue this growth. What you need
now is a sales force, to fulfill the position you were originally hired for. Actually being a
manager and executing the job responsibilities you were originally assigned to would give you
the ability to put your MBA skills to work, and maybe even get what has been at the forefront of
your mind, more time with your family. If your sales representatives could cover the territory,
then you would have to do less traveling.
Remember where you came from and what you have done, do not consider a job in
finance, in your first year at Ivey it was quickly understood that you have little interest in
finance, and did not want to pursue it, so do not settle for less than what you want or you will not
be satisfied and in a few years you will reconsider that career change also. Another notable
reason to not change into this field is that it is financially not a good decision for you because
you want to pay off your student loans as soon as possible. Your option to tough it for a couple
years is also unrealistic. You need more time with your family; you must build the courage to ask
for a change that will make you happy.
Sales are difficult and you have been able to deal with the pressure your entire career,
you need to look back at your successes and have confidence in yourself and your abilities as a
salesman. You can deal with the high pressure environment, take it day by day. This is a rough
patch, and it is time for a change, and more time for your new baby in your new home. You have
made it this far and I know whatever decision you make it will be the right one.

3. You are now the AMS Division Vice- President. What steps would you take to retain &
motivate Doug Smith?
Doug Smith,
I want to begin by acknowledging how well you have been doing with Arthur Medical
Supply and your work in growing AMS is appreciated. As you are well aware, AMS is in the
process of a great change, and the future of this company is extremely exciting. Your success in
your current position is inspiring and I hope your dedication to AMS can continue.
I have reviewed your current activities and the job description for which AMS hired you,
and notice these are not the same. Rumors of competition have given other executives of AMS
the motivation they needed to realize AMS should continue its growth in the equipment division,
and it would be most beneficial to give you the position of Ontario Regional Sales Manager and
provide you with a sales team specifically for the equipment division.
Your success with customer relationships and knowledge of the company growth process
will be useful in training a sales team. You will be responsible for managing your sales force and
for the area immediately surrounding your home and your sales team will be accountable for the
rest of Ontario. Your family is an important aspect of your life and this will give you many more
nights at home with them. If you accept this change in position we will begin assisting you in
hiring a new sales team immediately. With the new sales force the sales target will be increased
to a reasonable amount for each member of your sales team.
The MBA skills you have attained are deeply respected and in this position you will be
able to put them to use. When you are able to apply these skills AMS with experience even more
growth within the Ontario region. If you accept this position we would like to make you another
offer. To symbolize the acknowledgement of the importance of your devotion to your education,
every quarter that you and your team exceed the sales target, not only will the normal bonus be
awarded, but AMS will match the amount of money you have contributed toward your student
loan debt, this will continue each quarter that you and your team meet the sales target until your
loans are paid off.
I want to reiterate the depth of appreciation AMS has for your continued success for our
company, and your consideration for the change in responsibilities of your position. These
changes will continue to grow AMS and the equipment division. We are a part of a team, talk to
me about any concerns or ideas for improvement.
Sincerely,
Arthur Medical Supplies Vice-President