Question

1. Choose a type of company that would have sales people, and then answer the following questions about it. TIP: Choose a type of company that you would be interested in working for or starting up yourself.

a. Describe the product the company sells. (1-3 sentences. 2.0 points)

b. Which needs in Maslow's hierarchy does this product appeal to? Why would customers want this product? (1-5 sentences. 3.0 points)

c. Describe the role a sales person would play in selling this type of product. How much help would customers be likely to need from the sales person? (1-3 sentences. 3.0 points)

d. What sales methods do you think would work best for selling this product? TIP: Would you sell the product online, over the phone, in a store, etc.? (1-5 sentences. 2.0 points)

e. Describe the methods you would use to pay and motivate sales people to sell this product. Would you use sales quotas or a particular type of commission structure? Why or why not? (1-5 sentences. 2.0 points)

f. What price do you think the company should charge for this product? Explain what factors you considered in deciding what price to charge. (1-6 sentences. 4.0 points)


g. What pricing strategies do you think would be most successful for this type of product? Describe at least one strategy that would work well for this product, and explain why you believe it would work. TIP: Pricing strategies include psychological pricing, unit pricing, product line pricing, promotional pricing, penetration pricing, and price skimming. (1-6 sentences. 4.0 points)

Answer 1

A smart fitness watch company would cater to physiological and safety needs, with salespeople playing an advisory role to the technically-natured product through an omnichannel strategy. A tiered commission structure would motivate salespeople, while a combination of premium and psychological pricing strategies would set the product's price point.

Step-by-step explanation:

Imagining a company that sells smart fitness watches, the product would be designed to track various health metrics and fitness activities, appealing to the physiological and safety needs in Maslow's hierarchy since it helps monitor vital health statistics and encourages a healthier lifestyle.

Salespeople play an essential role by educating customers on the features, assisting with setup, and helping them choose the best product for their needs. A personalized approach is likely necessary due to the technical nature of the product.

Effective sales methods would include an omnichannel strategy, combining online presence, in-store experiences, and personal consultations to reach different segments of the market.

To motivate salespeople, a tiered commission structure alongside regular salaries could be utilized, rewarding higher sales volumes to encourage top performance without discouraging new salespeople from entering the field.

In terms of pricing, a premium pricing strategy can be justified by the high-tech features of the product, considering factors such as production costs, competitor pricing, and perceived customer value.

As for pricing strategies, psychological pricing could be effective, setting prices that are slightly less than a round number to make the cost seem lower, thus enticing purchase decisions based on emotion rather than rational assessment.