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The Impact of
Sales failure on salespeople attributions
Made by “Resource - challenged” and
“Resource-Secure”.
Mentor : Dr Santosh kumar.
Presented By
Deepak Sahu
Roll No. 18
PGDPM- 1st Batch
IIHMR Jaipur
Content:
Aim of Project.
 Introduction
 Background
 Why sales failure
 Research methods
 Attributes
 Analysis & finding
 Recommendations

Aim of project
To study & analysis of attribution for sales
failure .
 Impact of sales failure on sales people .
 Assumption : Every sales people have or had
failure in their day to day practice. for that I
include those are 0- 5 experience, with age
22- 28, gender - male)

Introduction:






Sales: A sale is the act of selling of products or services
in return for money or other compensation. It is an act
of completion of a commercial activity.
Med. Rep- Medical representatives are a key link
between medical and pharmaceutical companies and
healthcare professionals, according to Prospects. A
medical representative provides information about
medicines and drugs available to those who prescribe
medicines.
Failure refers to the state or condition of not meeting a
desirable or intended objective, and may be viewed as
the opposite of success. Product failure ranges from
failure to sell the product to fracture of the product.
Why Sale failure:





Resource :A resource is any physical or virtual entity of limited

availability that needs to be consumed to obtain a benefit from it.
In most cases, commercial or even non-commercial factors require
resource allocation through resource management.
There are two types of resources; renewable and non-renewable.
With help of Focus group Discussion I decided to choose sales
failure for my dissertation by using personal interview as tool for
the survey.
Background:


Losing a sale may significantly affect employee morale and work
efforts as well as corporate performance.



The sales literature has primarily examined the type of
attributions salespeople make following a sales failure to better
understand how they might adjust their subsequent selling
behaviors and efforts.



Prior research in this area has centered on past performance
and individual differences as the basis for salespeople attributing
a cause for a sales loss.



Although relevant, such factors are limiting in that they only
account for certain situational and personal variables as the basis
for salespeople assigning cause for their failures.
Research Methodology







1.
2.
3.
4.

Data source:
primary data source.
Research approach
Analytical research
Research instruments :
Questionnaires
Likert scale is used to respond to the following statements
(1 = strongly disagree to 6 = strongly agree).)
Sampling plan:
Sampling unit:
Sample size:
Sampling procedures:
Contact method:

Primary sales representative
30 Sales people from Pharmaceutical company
Non- probability, convenient sampling
Personal Interview
Attributes:
(a)

Resource-challenged salespeople will make external
attributions, while, conversely,

(b) Resource-secure salespeople will make internal
attributions to account for a sales failure.
Contd.









Internal or external factor caused the sales failure.
Each attribution measure consisted of three items.
A total of five attribution measures
Three internal—lack of effort, lack of ability, and
incorrect strategy
Two external—difficulty of sale and bad luck were
used.
Finally at the end of questionnaire, internal locus of
control used.
Analysis
“Lack of effort” attribution
80

68%

70

54%

60
50

44%

40
30
20
10
0

Hard work




Tim e Factor

X- axis – internal attributes
Y- axis- responses in percentages

Les s Effort
“Lack of ability” attribution
76
74
72
70
68
66
64
62
60
58

75

67
64

Improve Skill




X axis- internal attribute.
Y axis- response in %

Skill Knowledge

Increase
Knowledge
“Incorrect Strategy” attribution
60
50

57

57

48

40
30
20
10
0
Wrong selling strategy




Wrong strategy for specific
customer

X axis- internal attribute
y axis- response in %

Incorrect Sale strategy for
customer
“Difficulty of Sale” attribution
50

49

49
48
47
46

46

45

44

44
43
42
41
Dif f icult sales call




Tough selling sit uat io n

X- axis – external attribute
Y – axis- response in %

Dif f icult Saelling sit uat io n
“Bad Luck” Attribution
42

45
40
35

37

35

30
25
20
15
10
5
0
Unlucky Situation




X axis- external attribute
Y axis- response in %

Unlucky break

Bad luck
Measuring Failure Impact

percentage

60

56

50
40

52

46

30
z

20
10
0
Personal financial
goal




X- axis- impact of failure
Y- axis- response in %

Personal Sales
Goal

Career goal
Measuring Task Self-Efficacy
100
80
60
40
20
0

82

Ability to perform




X- axis- task self efficacy
Y- axis- Response in %

70

Task capability

85

Capability to sucessfully
perform
Measuring Internal Locus of Control
90
80
70
60
50
40
30
20
10
0

80
59

Self responsible




79

Ability to perform

X- axis- internal locus of control
Y- axis – response in %

Appropriate planning
Managerial Implication:








It is important to understand that changes over the course of
a salesperson’s career can impact how certain resources are
valued.
Early stages: managers can nurture these feelings with training,
exposure to knowledge resources, and the prospects of
promotion , career development opportunities.
Later career stage : Salespeople may value ways to increase
earnings and job security. Managers might respond with more
variable compensation plans and the reassurance that consistent
performance should lead to continued employment.
The ultimate goal here would be to learn from the recent failure
to ensure that subsequent failures do not occur.
Thank You

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Sales failure

  • 1. The Impact of Sales failure on salespeople attributions Made by “Resource - challenged” and “Resource-Secure”. Mentor : Dr Santosh kumar. Presented By Deepak Sahu Roll No. 18 PGDPM- 1st Batch IIHMR Jaipur
  • 2. Content: Aim of Project.  Introduction  Background  Why sales failure  Research methods  Attributes  Analysis & finding  Recommendations 
  • 3. Aim of project To study & analysis of attribution for sales failure .  Impact of sales failure on sales people .  Assumption : Every sales people have or had failure in their day to day practice. for that I include those are 0- 5 experience, with age 22- 28, gender - male) 
  • 4. Introduction:    Sales: A sale is the act of selling of products or services in return for money or other compensation. It is an act of completion of a commercial activity. Med. Rep- Medical representatives are a key link between medical and pharmaceutical companies and healthcare professionals, according to Prospects. A medical representative provides information about medicines and drugs available to those who prescribe medicines. Failure refers to the state or condition of not meeting a desirable or intended objective, and may be viewed as the opposite of success. Product failure ranges from failure to sell the product to fracture of the product.
  • 5. Why Sale failure:    Resource :A resource is any physical or virtual entity of limited availability that needs to be consumed to obtain a benefit from it. In most cases, commercial or even non-commercial factors require resource allocation through resource management. There are two types of resources; renewable and non-renewable. With help of Focus group Discussion I decided to choose sales failure for my dissertation by using personal interview as tool for the survey.
  • 6. Background:  Losing a sale may significantly affect employee morale and work efforts as well as corporate performance.  The sales literature has primarily examined the type of attributions salespeople make following a sales failure to better understand how they might adjust their subsequent selling behaviors and efforts.  Prior research in this area has centered on past performance and individual differences as the basis for salespeople attributing a cause for a sales loss.  Although relevant, such factors are limiting in that they only account for certain situational and personal variables as the basis for salespeople assigning cause for their failures.
  • 7. Research Methodology        1. 2. 3. 4. Data source: primary data source. Research approach Analytical research Research instruments : Questionnaires Likert scale is used to respond to the following statements (1 = strongly disagree to 6 = strongly agree).) Sampling plan: Sampling unit: Sample size: Sampling procedures: Contact method: Primary sales representative 30 Sales people from Pharmaceutical company Non- probability, convenient sampling Personal Interview
  • 8. Attributes: (a) Resource-challenged salespeople will make external attributions, while, conversely, (b) Resource-secure salespeople will make internal attributions to account for a sales failure.
  • 9. Contd.       Internal or external factor caused the sales failure. Each attribution measure consisted of three items. A total of five attribution measures Three internal—lack of effort, lack of ability, and incorrect strategy Two external—difficulty of sale and bad luck were used. Finally at the end of questionnaire, internal locus of control used.
  • 11. “Lack of effort” attribution 80 68% 70 54% 60 50 44% 40 30 20 10 0 Hard work   Tim e Factor X- axis – internal attributes Y- axis- responses in percentages Les s Effort
  • 12. “Lack of ability” attribution 76 74 72 70 68 66 64 62 60 58 75 67 64 Improve Skill   X axis- internal attribute. Y axis- response in % Skill Knowledge Increase Knowledge
  • 13. “Incorrect Strategy” attribution 60 50 57 57 48 40 30 20 10 0 Wrong selling strategy   Wrong strategy for specific customer X axis- internal attribute y axis- response in % Incorrect Sale strategy for customer
  • 14. “Difficulty of Sale” attribution 50 49 49 48 47 46 46 45 44 44 43 42 41 Dif f icult sales call   Tough selling sit uat io n X- axis – external attribute Y – axis- response in % Dif f icult Saelling sit uat io n
  • 15. “Bad Luck” Attribution 42 45 40 35 37 35 30 25 20 15 10 5 0 Unlucky Situation   X axis- external attribute Y axis- response in % Unlucky break Bad luck
  • 16. Measuring Failure Impact percentage 60 56 50 40 52 46 30 z 20 10 0 Personal financial goal   X- axis- impact of failure Y- axis- response in % Personal Sales Goal Career goal
  • 17. Measuring Task Self-Efficacy 100 80 60 40 20 0 82 Ability to perform   X- axis- task self efficacy Y- axis- Response in % 70 Task capability 85 Capability to sucessfully perform
  • 18. Measuring Internal Locus of Control 90 80 70 60 50 40 30 20 10 0 80 59 Self responsible   79 Ability to perform X- axis- internal locus of control Y- axis – response in % Appropriate planning
  • 19.
  • 20. Managerial Implication:     It is important to understand that changes over the course of a salesperson’s career can impact how certain resources are valued. Early stages: managers can nurture these feelings with training, exposure to knowledge resources, and the prospects of promotion , career development opportunities. Later career stage : Salespeople may value ways to increase earnings and job security. Managers might respond with more variable compensation plans and the reassurance that consistent performance should lead to continued employment. The ultimate goal here would be to learn from the recent failure to ensure that subsequent failures do not occur.