A Competence Based Approach to Selecting Sales Representatives at Olymp

Abstract

This case study will examine the problems associated with recruiting and hiring personnel to positions where customer focus is the key criterion for an employee’s effectiveness. Working with the case study enables students to develop skills analyzing the activities of sales representatives at an automobile dealership, developing specifications and listing competences for such a specialist. The formula used in building up the specifications and listing the competences can be transferred to other spheres of business.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

Resources

Exhibit 1. Main factors for successful and unsuccessful work for automobile sales representatives

Fig. 1. Factors for successful work of automobile sales representatives

Figure

Fig. 2. Most common mistakes made by automobile sales representatives

Figure

Exhibit 2. Typical mistakes when selling automobiles

Tatyana Kazakova (Expert from SALES Business/Prodazhi Magazine) 1

A year ago I bought myself a car. I envisaged what I wanted from a new car in general terms, I knew what the prize range was, and I had studied comments on the internet about three brands which largely met my needs.

After this I proceeded with the next natural step of viewing the respective dealership car yards. Fast forwarding, I can say that as the result of spending three months mixing with car salesmen I have become a true connoisseur of the errors made by sales representatives at car yards. And from the three reasonably similar cars based on their technical characteristics and prices I choose one the process of purchasing which was not worth the hassle and was completed like a true celebration.

At car yard No. 1 at the time of my visit all managers were busy with other visitors. After a wearisome wait I meekly turned to a hostess with a request for help. Consultants advised me to take on additional equipment, which they exerted all their energies to try to sell me these specific items which were anything but a handsome chauffeur to park the car for me, “Well for such a car you definitely need to have a protective casing. Parking sensors around the back and front – you’re a woman after all and the car is big. Naturally, you’ll want an alarm system, best go for the satellite system – it’s more reliable. I advise you to have tinted windows – you’ll be further away from curious eyes…”

When calculating the most necessary options the fingers on one hand were insufficient and the fear of trying to drive the current car reached its culmination and my planned budged had disappeared into thousands of dollars, the desire to purchase an off-road car began to dissipate. Furthermore neither did the consultant suggest that could I sit in the car or take it for a test drive. However, after analyzing the risks and calculating the expenses the desire to move to the next phase of choosing and buying the car didn’t come from me.

After the unsuccessful viewing of car yard No. 1 the thought of owning the current car did return to me, I went to another dealership (car yard No. 2). There the problem of unprofessional consultants did not arise: the conditions for purchase were much more realistic with fewer costs. A hitch did occur: the car yard didn’t have a car for a test drive, and the polite salesman, taking my business card, promised to contact me as soon as the test car arrived at the yard. The salesmen assured me that it was a matter of only a day or two. After two weeks of waiting I contacted him myself. The employee apologized effusively and told me that he had lost my telephone number – mislaid it somewhere.

Satisfied by the apology I suggested a day and time which would be convenient for a test drive. On the appointed day and time I presented myself before the salesman and understood that again there was something to explain. It so happened that the previous evening the test car had been crashed by one of the clients, and now it was being repaired. Why wasn’t it possible to contact me in advance (I had left a contact phone number a second time), I no longer desired to hear the answer.

At car yard No. 3 (I decided to look at cars of a different brand) I had this sensation that at this car yard I was invisible. Regardless of the fact that several salesmen were relaxing with the complete absence of customers on seats nearby – none of them rose and took no interest in a visitor that was demonstrating with all her actions an interest in a particular car.

Taking the initiative I approached one of the salesmen and asked for help. The salesmen didn’t even rise from his seat and answered wearily my questions. When I ran out of questions and the opportunity for productive dialogue no longer remained, the pessimism and life deficit transferred from the salesman to myself. The desire to visit the car yard a second time had disappeared on its own accord. Having asked for a business card (the manager himself didn’t offer me one), I left the car yard as a might-have-been buyer with a feeling of personal insignificance and being wounded.

Exhibit 3. Evaluation of the sales department at Olymp based on a survey of sales representatives

Sales representatives competences

Not effective/Effective

Search for customers (finding out new opportunities for concluding deals because of in-depth knowledge of products, services and markets)

1 2 3 4 5 6 7 8 9 10

Winning out customers (concluding deals because of adequate strategy building and planning, finding out and satisfying customer needs, negotiating)

1 2 3 4 5 6 7 8 9 10

Keeping customers (strengthening relations with customers, making decisions and achieving actual results)

1 2 3 4 5 6 7 8 9 10

Professionalism of sales representatives

Working out a strategy (making plans on business development)

1 2 3 4 5 6 7 8 9 10

Mentorship (orienting sales representatives, explaining requirements to them, ability to discuss working problems with them)

1 2 3 4 5 6 7 8 9 10

Motivation (increase in performance by recognizing the sales reps’ achievements and praising them for good work)

1 2 3 4 5 6 7 8 9 10

Support systems

Hiring personnel (working out methods of headhunting and attracting the best specialists)

1 2 3 4 5 6 7 8 9 10

Systems of productivity management (to determine objectives and evaluate productivity)

1 2 3 4 5 6 7 8 9 10

Systems of searching and finding sales opportunities (“from zero” to actual sale)

1 2 3 4 5 6 7 8 9 10

Managing relations with strategically important customers (to create partnerships)

1 2 3 4 5 6 7 8 9 10

IT-systems (systems of customers relations management – CRM)

1 2 3 4 5 6 7 8 9 10

Systems of training and development

1 2 3 4 5 6 7 8 9 10

Atmosphere in the sales department

Clarity (employees know, what is expected of them)

1 2 3 4 5 6 7 8 9 10

Consciousness (employees try to achieve the set goal)

1 2 3 4 5 6 7 8 9 10

Responsibility (employees show initiative and do not need the guardianship of the top managers)

1 2 3 4 5 6 7 8 9 10

Recognition (employees know, that good work will be recognized and awarded)

1 2 3 4 5 6 7 8 9 10

Notes: The average indicator for the company where the work has been well set for the sales department (greater than 8 points): 123.

The average for a company where the work of the sales department has been poorly set (lower than 8 points): 109.

Results on the Olymp survey: 115.

Note

1. T. Kazakova. How a sales-manager can make havoc within a sales department, Sales Business / Prodazhi, 2006, No. 7; Sales management: Electronic resource—http://grebennicon.ru.article

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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