Addendum to Participant's Manual

SALES

MANAGEMENT

SIMULATION

Addendum to Participant's Manual

Sixth Edition

DOUGLAS J. DALRYMPLE

Professor of Marketing

Indiana University

HARISH SUJAN

Professor of Marketing

Tulane University

JOHN WILEY & SONS

NEW YORK CHICHESTER BRISBANE TORONTO SINGAPORE

Reproduction or translation of any part of this work beyond that permitted by Sections 107 and 108 of the 1976 United States Copyright Act without the permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Permissions Department, John Wiley & Sons.

ISBN

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1

CONTENTS

A Map of Territories with States Identified 1

Sales Forecasts for Industries with Less Than 5 Firms 2

Deletion of Two Pages in the Resume Section 3

Changes in Salary and Production Costs 4

Decision Forms 5

Sample Printouts 9

A Map of Territories with States Identified

This supplement Exhibit 3 (page 5)

This map makes it easier to identify how far away from home a salesperson is being assigned.

Sales Forecasts for Industries with Less Than 5 Firms

This supplement Exhibit 5 (page 7)

The table in the exhibit is for industries with 5 firms. The note asks if firms are reduced to 4 to multiply the numbers by 0.8, and if firms are reduced to 3 to multiply the numbers by 0.6. These operations have been carried out in the tables below.

Preliminary Three-Year Forecast of Server Sales by Region for an Industry with 4 Firms

Regions / Estimated Total* Server Sales For
Your Industry
Yr / Qtr / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10
1 / 1 / 240 / 248 / 248 / 248 / 240 / 240 / 240 / 240 / 240 / 240 / 2424
2 / 272 / 312 / 288 / 272 / 256 / 264 / 264 / 256 / 264 / 328 / 2776
3 / 392 / 608 / 464 / 416 / 352 / 368 / 368 / 352 / 360 / 648 / 4328
4 / 488 / 736 / 672 / 584 / 376 / 416 / 432 / 376 / 392 / 744 / 5216
5 / 672 / 784 / 760 / 728 / 416 / 528 / 568 / 416 / 464 / 792 / 6128
6 / 768 / 824 / 824 / 792 / 504 / 688 / 720 / 504 / 600 / 824 / 7048
7 / 824 / 856 / 848 / 840 / 640 / 784 / 800 / 640 / 736 / 864 / 7832
8 / 872 / 896 / 888 / 880 / 768 / 848 / 856 / 768 / 816 / 896 / 8488
9 / 912 / 928 / 928 / 920 / 848 / 896 / 896 / 848 / 872 / 936 / 8984
10 / 952 / 968 / 960 / 960 / 904 / 936 / 944 / 904 / 928 / 968 / 9424
11 / 992 / 1008 / 1000 / 1000 / 952 / 984 / 984 / 952 / 968 / 1008 / 9848
12 / 1048 / 1040 / 1040 / 1000 / 1024 / 1024 / 1000 / 1016 / 1048 / 1048 / 10288
*Includes models A and B. In estimating your sales forecast, remember to consider your firm's market share, averaged over A and B (total quarterly sales x % estimated market share = company sales forecast).

Preliminary Three-Year Forecast of Server Sales by Region for an Industry with 3 Firms

Regions / Estimated Total* Server Sales For
Your Industry
Yr / Qtr / 1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10
1 / 1 / 180 / 186 / 186 / 186 / 180 / 180 / 180 / 180 / 180 / 180 / 1818
2 / 204 / 234 / 216 / 204 / 192 / 198 / 198 / 192 / 198 / 246 / 2082
3 / 294 / 456 / 348 / 312 / 264 / 276 / 276 / 264 / 270 / 486 / 3246
4 / 366 / 552 / 504 / 438 / 282 / 312 / 324 / 282 / 294 / 558 / 3912
5 / 504 / 588 / 570 / 546 / 312 / 396 / 426 / 312 / 348 / 594 / 4596
6 / 576 / 618 / 618 / 594 / 378 / 516 / 540 / 378 / 450 / 618 / 5286
7 / 618 / 642 / 636 / 630 / 480 / 588 / 600 / 480 / 552 / 648 / 5874
8 / 654 / 672 / 666 / 660 / 676 / 636 / 642 / 576 / 612 / 672 / 6366
9 / 684 / 696 / 696 / 690 / 636 / 672 / 672 / 636 / 654 / 702 / 6738
10 / 714 / 726 / 720 / 720 / 678 / 702 / 708 / 678 / 696 / 726 / 7068
11 / 744 / 756 / 750 / 750 / 714 / 738 / 738 / 714 / 726 / 756 / 7386
12 / 786 / 780 / 780 / 750 / 768 / 768 / 750 / 762 / 786 / 786 / 7716
*Includes models A and B. In estimating your sales forecast, remember to consider your firm's market share, averaged over A and B (total quarterly sales x % estimated market share = company sales forecast).

Deletion of Two Pages in the Resume Section

This supplement Candidate 9 (pages 45-46)

On page 45 and 46 extra pages have been erroneously included. The resume of Leroy Witte, candidate number 8, ends on page 44. The resume of the next candidate, Ann Davis, candidate number 9, starts on page 47.

Changes in Salary and Production Costs

· On pages 8 and 13 the suggested base salary for salespeople is $ 32,000 per year. We have changed this to $ 50,000. This change is reflected in the sample print outs that follow this page.

· On page 7 the GSM salary is stated to be $ 100,000 per year. We have changed this to $ 160,000 per year. On the same page the FSM salary is stated to be $ 80,000 per year. We have changed this to $ 100,000. This change is reflected in the sample print outs that follow this page.

· On page 10 the initial cost to manufacture each basic server is stated to be $ 3,000 and $ 4,000 respectively. We have changed this to be $ 2,900 and $ 3,900 respectively. This change is reflected in the sample print outs that follow this page.

Decision Forms

· The decision form in the manual has an error. Commission rate A and Commission rate B are specified. The program allows for only one commission rate.

· A corrected decision form is on the next two pages.

· Following this is a corrected decision form formatted in keeping with the forms generated by the computer program. This form takes only one page.

· If decisions need to be communicated electronically, to the game administrator, this page can be cut and pasted in an e-mail or as an attachment to an e-mail.

SMS DECISION FORM

Period / Industry / Company
Hire For Training Program / # / # / # / # / #
Retrain Salespeople / # / # / # / # / # / #
Fire Salespeople / # / # / # / # / # / #
Region / Salesperson Territory Assignments
1
2
3
4
5
6
7
8
9
10

SALES FORCE COMPENSATION

Annual Salary / $ / .00 / Selling Price A / $ / .00
Commission Rate / . / % / Selling Price B / $ / .00
Don’t use / Number of Units to be Produced A
Sales Contest Fund / $ / .00 / Number of Units to be Produced B
Model A Emphasis %
Time Spent Call Planning %
Market Research Requests (Circle numbers requested)
1. / Forecast of Total Industry Sales / $2,500
2. / Forecast of Industry Sales by Region / $5,000
3. / Competitors’ Regional Sales for Previous Period / $8,000
4. / Market Shares of Competitors / $3,000
5. / Competitive Market Shares by Region / $4,000
6. / Your own Market Share and Industry Sales / $2,000
7. / Total Number of Salespeople Per Region / $3,500
8. / Exact Competitive Prices / $2,500
9. / Competitive Salaries and Commissions / $5,000
10. / Competitive Profits for Current Period / $4,000

Your Industry: ______

Your Company: ______

Decision Form

Quarter 1

Salesforce Adjustments

Hire for training: ______

Enter salesperson identification number from resume list in the first row. Maximum 5.

Territory Assignments

Region

1 ______

2 ______

3 ______

4 ______

5 ______

6 ______

7 ______

8 ______

9 ______

10 ______

Enter the salesperson identification numbers in one or several regions. See the map to locate these regions. Maximum 10. Cannot overlap with those in training.

Other Decisions

Annual Salary: $______Selling Price A $______

Commission Rate: ______% Selling Price B $______

Sales Contest Fund $______Production Forecast A ______

Model A Emphasis ______% Production Forecast B ______

Spend ______% of time on pre-call planning

Market Research Requests

_____ Industry Sales Forecast ($2,500) _____ Company Market Share ($2,000)

_____ Regional Sales Forecast ($5,000) _____ Regional Sales Force Size ($3,500)

_____ Competitive Sales Volume ($8,000) _____ Competitive Unit Pricing ($2,500)

_____ Competitive Market Share ($3,000) _____ Industry Compensation ($5,000)

_____ Regional Market Share ($4,000) _____ Competitors' Profits ($4,000)

SAMPLE PRINTOUT

Alpha

Trial Game

Quarter 1 Operating Results

======<REGIONAL SALES> ======

Region 1------Region 6------