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ISBM – Before switching to sales planning by objectives, General Electric (GE) planned its strategies by asking sales personal to prepare their plans in the form of action programs.

Marketing Management

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CASE STUDY (20 Marks)

Before switching to sales planning by objectives, General Electric (GE) planned its strategies by asking sales personnel to prepare their plans in the form of action programs. The reactions of customers to their plans were assumed. This method did not yield the expected results because it is difficult to assess customers’ reaction patterns beforehand. Owing to this deficiency in the planning approach, newly recruited sales personnel in General Electric’s service division had greater difficulty in planning compared to new sales personnel in other product divisions. The reason was that the service division was involved in industrial maintenance and repair, requiring sales personnel to react quickly when there was a failure of equipment in the customer\’s plant. Sales personnel were unable to identify beforehand customers’ confidence by identifying and preventing failures. This led to the loss of revenue and accounts. GE T then implemented planning by objectives. Sales personnel were able to identify and keep track of probable service problems and service contracts lost competitors from major accounts. They could also undertake and review major account planning on a monthly or bimonthly basis and approach these accounts with clear-cut objectives.

Answer the following question.

 

Q1. Discuss the reasons behind the customer’s dissatisfaction, In detail.

 

Q2. Explain your views on “Sales Planning by objectives”

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