ASSIGNMENT 3

Sriparna Patra
20BM63091
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Phillips Company
Manufacturer of Steam Power Plants—
The Role of the Sales Force in the Company Image
Sam McDonald, Vice-President of Sales of the Phillips Company, was concerned with the
potential role of his sales force in correcting his company’s image in the electric utility industry.
The Phillips Company, one of the leading manufacturers of steam power plants in the United
States, was located in Philadelphia. The company was started by Aaron Phillips, who began
manufacturing small steam engines in Philadelphia in 1846. Currently the company had annual
sales in excess of $200 million and sold power plants to industrial users throughout the world.
McDonald was concerned because public utilities, important users of steam power equipment,
only accounted for 12 to 15 percent of Phillips’ sales. Some utilities were good customers,
but many other major utilities never bought from the company at all. Concerned With whether
this low acceptance was a result of a poor image of steam power plants as a power alternative
or a poor image of the Phillips Company as a source of steam power plants, McDonald
suggested to top management that they explore the buying attitudes and motivation of electric
utility companies as completely as possible. To remove the risk of personal bias, an outside
research agency was called in to conduct the survey. The research agency set out to find out what
customers and potential customers really thought of the Phillips Company. Depth interviews
were carried out with influential buying personnel in a selected sample of all electric utilities.
The results that were presented to the executive commit- tee in September were not too
pleasant to hear. In general, Phillips’ engineering skills were rated highly; product quality and
workmanship were considered good. However, a number of respondents thought of Phillips as
a completely static company. They were completely unaware of Phillips' excellent research
operations and many new product developments. The research organization pointed out
other useful information about the Phillips Company and its market. Sales were normally
personnel related; that is, personal relationships and personalities were important in the buying
decision. The buying responsibility was’ widely dispersed for products sold by Phillips. As
many as forty people, ranging from the president down, might be involved in a purchase.
Many Phillips salespeople were not too well informed about the details of new product
developments and would probably need additional training to be able to answer technical
questions. It was obvious to McDonald that Phillips’ communications methods had failed
completely to keep potential utility customers aware of changes taking place in the company
and its products. Some method had to be devised to break down the communications barrier
and sell Phillips products. At this point a disagreement developed between the advertising and
sales departments as to how to go about changing the image. Representatives of the advertising
department came up with two possible approaches that could be used separately or jointly.
First, they might advertise in mass media to get across the Phillips story. Second, they could
launch an intensive publicity campaign, blanketing all news media and particularly utilities trade
 media with information and press releases. McDonald’s suggested approach started with a
complete upgrading of information to the sales force about new-product developments and
current research. Then, the sales staff could make presentations directly to prospects in the
field. Flipcharts and visual aids could be used where appropriate. Alternatively, the company
could try to schedule educational meetings for key electric utility personnel. This would require
a traveling symposium, staffed by top personnel and equipped with audio visual aids, that could
spend several hours with groups of employees in selected utilities across the country.

I. What action should the Phillips Company have taken to change the company image in the
public utility field?
A strong positive image in the eyes of the general public might be advantageous to the company.
According to research, a strong corporate image and a strong reputation are important variables in
attracting a high-quality workforce. Phillips Company should take the following efforts to establish a
positive public image.
1. Situation analysis
The Phillips Company's initial step should be to examine the situation. They must assess sales in terms
of the past, present, and future. Sales were good at first, but as time went on, they became stagnant,
so they needed to figure out why. SWOT analyses is a helpful tool for this. A sales executive might
use this tool to assess strengths, weaknesses, opportunities, and threats.

STRENGTHS OPPURTUNITIES
 Relatively old company, so; more  Government regulations and Green
reliability Push
 Good quality  increasing industrialization of
developing countries
 more electrification

WEAKNESSES THREATS
 Weaker Distribution network than  Competition
Competition price  Cheaper technology
 The inability to get product to market  Economic slowdown
first  Exchange rate fluctuations
 Competitive leadership  Lower cost competitors or imports
 Poor business level strategy  Price wars
 Rising Oil Prices

2. Market motivation:
Phillips Company can utilise promotional methods to change its image in the public eye.
 For example, they could provide a discounted pricing for a brief period and then discontinue it after
the clients have become accustomed to it. They can also enhance sales by including a distinctive feature
in the product that distinguishes it from competitors' offerings.
3. Training of sales personnel:
Phillips Company's sales executives must teach and train their salespeople because they do not have a
thorough understanding of the product, which is why they are unable to explain the product's features
to customers. Aside from that, all salespeople should be able to communicate and listen well.
Salespeople should be able to clearly and concisely describe the benefits of a product or service. It is
critical for salespeople to be able to create relationships with customers, present themselves
professionally, negotiate effectively, and work toward sales goals and targets.
4. Corporate communication:
There must be effective internal and external communication. Employees should be able to discuss
issues with their superiors and communicate successfully with consumers. The organization's life
blood is effective communication; without it, the company's aim is difficult to achieve.
5. Public relations:
Phillips Company must have a positive relationship with its customers. Because the department
oversees ties with the news media and other groups and institutions, the public opinion of Philips can
(possibly) be influenced.
6. Advertisements:
In order to project a favourable image, Phillips Company's sales professional must craft a powerful
message that appeals to ideal clients. All four elements of AIDA should be included in the
advertisement (attention, interest, desire & satisfaction). Because Phillips deals with machinery, visual
aids may be employed. It is critical that potential buyers have a thorough understanding of the product.
The advertisement should be brief but comprehensive.
7. Coordination with distribution network:
Distributing networks are critical in establishing a positive public image. Because the firm just
produces the goods, the people who communicate with end users are the suppliers, Phillips Company's
sales executives must maintain solid relationships with them and supply them with the most up-to-
date information about their product.
8. Setting up quantitative performance standards:
The Phillips Company should establish some quantifiable performance benchmarks. The best way to
track and report progress is to set quantitative targets.
9. Sending out press releases:
To bring the goods to the attention of the public Phillips Company can issue a press release to boost
public relations, gain favourable media attention for a PR professional's client, and/or offer publicity
for products or events marketed by those clients. Scheduled events, personal promotions, impending
 events, or a change in corporation awards, new products and services, sales and other financial
statistics, accomplishments, and so on can all be announced in press releases.
10. Packaging and labelling:
Because the first thing that attracts to a customer is the appearance, Phillips Company must pay extra
attention to packing and labelling. As a result, businesses should focus not only on the product but
also on its packaging and labelling.
11. Get more visible on digital platforms
There are many areas online where Phillips Company may increase their visibility and readily voice
their opinions, so let others know who you are, what you do, and how you can help them. Leaving
helpful comments on other people's blogs with a link back to your site can be a highly efficient way
to get more readers to your site. It's also worthwhile to participate in forums and ask or answer queries.
And, of course, social networking is one of the most recent ways to interact and be seen online.
Relationships and cooperative ventures can be developed quite effectively using social media sites like
Facebook, Twitter, and LinkedIn.
12. Customer Feedback:
It is critical to obtain client feedback in order to determine the benefits and drawbacks of a product.
Because consumers are end users, they are better able to communicate the issues they are having with
the product. Developing a "keep-in-touch" strategy is critical to your company's success. Sending out
suggestions and resources to prospects on a regular basis will help them remember your services.
Phillips Company salespeople should be imaginative in imagining what their customers genuinely want
and over-deliver on value.

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