Essay on Value Creation

8662 Words Dec 8th, 2012 35 Pages
Identify and describe the categories of value creation on which Best Value currently relies most. Identify and describe the categories of value creation on which Best Value currently relies most

Straight commission is a “pay for performance plan” where monetary compensation is strictly tied to the results achieved by the salesperson. It is best used when maximum time is provided for the salespeople to sell while non-selling tasks are minimized. Ordinarily, commissions are in direct correlation and proportionate to the value or volume of completed sales transactions made by the salesperson. Since financial compensation plans are offered as motivational incentives to inspire and energize the sales force to achieve greater results, it is
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Explain your understanding of the concept of Relationship Selling. Define your terms and then apply to a real-world example.

It used to be that career salespeople were well versed in their company’s scripted sales pitch about a particular product which centered on their definition as to why they thought a person or business needed to purchase it; hence, the ever iconic vision of the used car salesman. Over time, sales became extremely competitive with like products and prices that changed the philosophy of selling to evolve into what is now referred to as “relationship selling”. According to Johnson and Marshall (2009), this “new paradigm of selling is to help clients reach their objectives and find resolutions to their problems by the use of the product being sold.” The concept involves preparation on the part of the salesperson to research the individual or company being approached even before the first sales call. With a vast array of information now available on the internet, buyers are becoming more educated about products they need or want. So it is essential for customer satisfaction that the salesperson obtains an understanding of the client and his or her business goals. In this way, the salesperson can adjust their role to work as a consultant by showing the customer how the product or service will help solve their problems, satisfy their needs, meet their goals, or increase profit. Furthermore,

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