3.

          What are the pros/cons of the following two models?

a.           
Fixed territories
with variable quotes (territories are fixed over time and sales team quotas are
variables based on pipeline, and territory track record)
Pros

 Better understanding of clients and their evolving needs.

 Better service to the existing client and long-term relation building, which brings
some customer loyalty.
 Facilitates flexibility to the sales rep and enable them to bring out the maximum
business from a client in a year. Upselling can be done for greater revenues.
 Could facilitate in enhancing the efficiency of the process, cut deals in record time
and low costs
 Better after sales customer service and higher customer satisfaction
Cons

 Same set of customers, few ways to create extra demand.

 Higher expectations of the customers, more cost on servicing existing clients.
 Reduced quotas could bring in complacency in salesforce.

b.         
Fixed
quotas with variable territories (all quotas are the same for each territory
and territories are aligned periodically to give everyone the exact same
“potential”
in each territory equalize installed accounts, pipeline, and green field
potential).
Pros

 Flexible territories would provide equal opportunity to all the sales team.
 New prospects could be discovered and cracked.
 Fixed quotas would drive the sales rep to improve their efforts and access as many
prospects in the territories as required to achieve the targets.
 Could result in discovery of best of the salesperson from the overall sales force.
 Vast set of data could be collected and enriched to derive results.
Cons

 Could result in prospect overlap and conflict between teams. It could result in use
of unfair and unethical means by teams to crack the same deal.
 Would require the highest level of coordination at various levels to avoid any
undesirable event at client’s as well as Jive’s end. Highly sophisticated customer
interaction mapping would be required
 This method could hamper profitability because of heavy competition amongst
the sales teams could result in unorganized sales, that are difficult to map to the
actual impact on the company finances.