Reference no: EM132179667

Alta Data Solutions: Making the Sale This case presents a hypothetical sales scenario involving a technology solutions firm and a potential new customer. This activity is important because personal selling is the lifeblood of many firms, in particular those selling in B2B environments. The goal of this exercise is to test your understanding of personal selling processes and practices by analyzing this scenario using the frameworks and scenarios presented in the chapter. Read the case about Alta Data Solutions and a multimillion-dollar contract on the table for them, and then answer the questions that follow. When Vicki Nguyen reached her office, she had a message from Mike Smith, the regional sales manager, to meet him in his office regarding the Burtell Inc. order. Vicki Nguyen is a senior sales associate for Alta Data Solutions Inc., a firm that markets software and hardware designed for data storage. The Burtell order represents a multimillion-dollar contract for Alta Data Solutions and would help Burtell boost its productivity levels and revenue for the region. To prepare for the meeting, Nguyen reviews her sales call report notes on the Burtell account. Alta Data Solutions Alta Data Solutions provides software and hardware solutions to large firms and has an established track record for delivering an exceptional standard of quality and high levels of customer service. This excellent reputation allows Alta Data Solutions to charge a substantial premium, ranging from 10 to 20 percent above the market leader. The data storage software services market has been dominated for two decades by this market leader. Alta Data Solutions holds the second position in the marketplace, with a considerably lower but growing market share. Only one other competitor, an aggressive, small, low-price player, holds a significant market share; this provider has made inroads into the market in the past several years through its aggressive sales tactics. Alta Data Solutions has just built a new facility and hired 50 new software programmers. Therefore, the company must generate new business to meet its higher financial goals; even more important in the short run, it must keep the new programmers working on interesting projects to retain them. Burtell Inc. Burtell Inc. is a division of a major U.S.-based consumer products firm. Its purchasing department negotiates contracts for software services and coordinates the interface among a variety of members from different departments. The business environment for consumer products has become highly competitive in recent years, leading to tight budgets and higher levels of scrutiny of the value added by vendors. Competition is fierce, as large numbers of end-user customers are considering vendors that provide the most data analysis with their products. Burtell Inc. has been consistently buying software development services from the market leader since 1991 and is generally satisfied with its service. A recent change in corporate leadership, however, has increased concerns about its overreliance on one vendor for a particular service. Also, because of the difficult economic climate, the company is concerned about the cost of software services and whether it is necessary to provide such a high service level. Vicki Nguyen's Call Report A call report is like a diary of sales calls made to a particular client. The notes in Vicki Nguyen's Burtell file pertaining to the current negotiations began on June 4: June 4: I contacted Bethany O'Meara, chief purchasing officer at Burtell, to introduce myself to her and get a sense of what their future software needs might be. She told me that the slowed business climate had caused Burtell to institute a program for increased efficiency in operations and that they would be looking to negotiate a new contract for software solutions. She gave me some insights into the technological aspects of their needs. June 18: Met with Jon Aaronson, head of R&D, to explain our productivity-enhancing solutions. Went into considerable depth explaining how Alta could service their needs and learned what they were looking for in a provider. I went over some specific product specification issues, but Jon did not seem impressed. But he did ask for a price and told me that the final decision rested with Brad Alexander, the chief financial officer. July 2: Presented to Bethany O'Meara and Jon Aaronson. They first asked about the price. I gave them a quote of $10 million. They suggested that other services were much cheaper. I explained that our price reflected the latest technology and that the price differential was an investment that could pay for itself several times over through faster communication speeds. I also emphasized our reputation for high-quality customer service. While the presentation appeared to meet their software needs, they did not seem impressed with the overall value. I also sent a copy of the presentation in report form to Brad Alexander and attempted to get an appointment to see him. July 9: Contacted Jon Aaronson by phone. He told me that we were in contention with three other firms and the debate was heated. He stated that the other firms were also touting their state-of-the-art technology. Discussed a lower price of $7 million. Also encouraged him to visit Alta Data Solutions headquarters to meet with the product manager who oversaw the product development efforts and would manage the implementation of the product. He wasn't interested in making the two-day trip even though it would spotlight our core competencies. July 15: Received a conference call from Brad Alexander and Jon Aaronson to discuss the price. Brad said the price was still too high and that he could not depreciate that amount over the life of the software and meet target levels of efficiency. He wanted a final quote by August 6. The Final Pitch Vicki Nguyen prepared for her meeting with Mike Smith, Alta's regional sales manager, by going over her notes and market data about the competitors. Smith's voicemail had said they'd be meeting to put together their best possible proposal. Footnote: This case was written by Jeanne Munger in conjunction with the textbook authors Dhruv Grewal and Michael Levy as the basis of class discussion rather than to illustrate either effective or ineffective marketing practice. For a discussion of common measures used to evaluate salespeople, see Mark W. Johnston and Greg W. Marshall, Churchill/Ford/Walker’s Sales Force Management, 9th ed. (Burr Ridge, IL: McGraw-Hill/Irwin, 2009). Which of the following is NOT a major problem threatening this sales opportunity for Alta? Multiple Choice Vicki hasn’t had enough opportunities to talk to the decision maker. Vicki doesn’t fully understand what creates value for Burtell in this situation. Vicki keeps hearing that Alta products are too expensive. Vicki's call report lacks detail. Vicki didn’t do enough qualification of this opportunity.