1. Kalcor Coatings is a local B2B manufacturer of custom-formulated industrial paints and coatings. Visit their web site: www.kalcor.com
This week we learned about different methods a firm can use to Organize their Personal Selling Effort (see page 285). Looking at Kalcor’s products and services and the kind of customers they sell to, briefly describe three (3) alternative ways that Kalcor could structure its sales force to serve the existing customers and assign prospects to salespeople. For each alternative method, give a couple of examples of the kind of customers (by naming a couple of prospective customer names) using each approach, and explain the advantage(s) and disadvantage(s) of each of these three approaches.
2. Kalcor needs to compensate their sales force. Two popular components of sales compensation are the base salary and commissions based on closing new sales.
In theory this means the company could choose to pay salespeople a straight salary, a straight commission, or a mixture of the two. Discuss some of the potential advantages and disadvantages of a straight salary or straight commission approach. In particular consider how the size of a sale, the length of the sales cycle, and what it takes to sell Kalcor’s products influence the effectiveness of the compensation plan. Propose compensation plan that you think will produce the best results for the customer, the salesperson, and the company.
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