Springfield Interiors, Inc.

1. What is the role of personal selling in developing sustained and profitable trade relations? For example, what are the roles and functions required by sales people in this industry?
2. Analyze the pros and cons of giving the S&O line to the Springfield sales force. What will be the effect of giving the S&O line to the Springfield sales force? What are the costs of doing so? How many salespeople would be needed? How do your answers to these questions change if Springfield moves to 7 calls per account per year? Use the workload method to answer these questions, and include your calculations.
3. What should they do?
4. Note: When the case says that salespeople are paid .5 percent on net company sales, this means that each salesperson gets, as a commission, .5 percent of what he/she sells. Thus, total commissions paid by Springfield would be $75 million times .005 = 375,000. Divide this by 10 sales people, and each sales person gets, on average, commissions of $37,500. Assume that the S&O salespeople make calls lasting 3 hours.