Chapter 02

Case 2.1 : Hindustan Hotel : Selling of Services

Major Issues/Problems.
 Sales executives are unable to achieve the sales targets.
 Strained relationship between the sales manager and the sales executives.

Question 1

It seems from the case information that no proper analysis has been done by the sales manager
about the reasons for not achieving the sales targets by the sales executives. Without collecting
information from the sales executives and customers how can sales manager take any
corrective action? Also, a good working relationship between sales manager and sales
executives is important for getting results as a team. This aspect is also missing. Hence, this
question can be answered only when someone like the marketing manager steps in.

Question 2

The marketing manager should now take charge and first talk to the sales manager and
thereafter, with individual sales executives in depth to understand the situation completely. He
should then visit major customers along with the sales manager and each of the four territory
sales executives to discover customers’ perceptions about the hotel and the sales executives.
Based on the information collected above the marketing manager should take suitable
corrective actions, which may include the following:
(i) Instead of using AIDA formula for presentation, need satisfaction method with FAB
( features, advantages, and benefits ) approach should be used. If the sales manager is
unable to train sales executives with the new presentation method, then a consultant can
be hired.
(ii) The “sales funnel” concept need to be introduced by conducting a training program for
inside salespersons as well as sales executives. Again if internally both the sales manager
and the marketing manager are not able to conduct the training program, outside
consultants can be used.
(iii) The sales manager should be told to ensure good relationships with sales executives and
inside salespersons, and to build an effective team.

The marketing manager should closely monitor the progress in terms of implementation
of corrective actions and actual sales against the sales targets for next 3-6 months. If
there is no substantial improvement, persons who are not putting adequate efforts need
to be replaced.

Case 2.2 : R. K. Consultants – Selling Consultancy Services.

Main Issues / Problems

 Understand the selling process in selling consultancy services to a business customer.

 Importance of relationship marketing in B2B selling.

Question 1

The pre-approach and approach of Arun Pande was appropriate as he not only collected the
required information from the website of the prospect (i.e. 2M Hydraulics), but also visited the
prospect at Ahmedabad to understand the customer needs better. Only after collecting all the
relevant information, the proposal was sent to the prospect. This was a proper way of handling a
business prospect.

Question 2

The presentation method I would select, if I were Arun Pande, was “need – satisfaction” with
FAB (features, advantages, and benefits) approach. This method would be tailored to the needs
of 2M – Hydraulics, and would show how the benefits offered by R. K. Consultant’s proposal
can solve the prospect’s problems better than competitors.

The negotiation style would be “I win, you win”, which is the most appropriate style with current
and prospective customers. Closing technique would be selected depending on the sales
situation.