Reference no: EM131793140

MedTech is a company that makes inventory and re-orders as necessary. Recently, the company added purchasing consulting services to the product mix. These services are designed to help hospitals create inventory tracking and purchasing systems that manage expenses more effectively, as well as train staff in inventory control. After three months of trying, though, Molly Malloy, salesperson for northern California, had sold only one consulting contract. The pressure to sell more contracts was becoming unbearable, and she wondered if it was time to look for another job. "I can't believe it!" she exclaimed to a friend. "I was the top rep last year, and this year, they treat me like I'm dirt! And I'm still the top scanner system rep!" Molly wasn't alone in her feelings. Although a few reps had done very well in selling the new service, most were languishing with sales of only one or no contracts and few prospects. "It's a different sales process to sell a service than a product," she said. "Just because it is sold to the same hospital doesn't mean the buying center is the same. Why they thought this was a good idea, I'll never know!"

1. Assume that Molly is correct in assessing the problem. What should the company have done differently?

2. Assume Molly is incorrect in assessing the problem, and that, in reality, the buying center is exactly the same but the skills and information needed to sell the service are very different. What are two strategies the company could have taken?