EE204: Business Management for
Electrical Engineers and Computer Scientists

Sales Management

Read

  1. Personal Selling and Sales Management (HBS course materials)
  2. FormPrint Ortho500 (HBS course materials)

Case Summary

The Senior Vice President of FormPrint's Medical Products business unit is considering issues raised by the upcoming introduction of a new 3D printing system, the Ortho500, which could print custom exoskeletal orthopedic splints, braces, and casts that conformed to a patient's body. The potential market extended beyond large urban hospitals (the Ortho's existing market) to high-volume outpatient offices in the U.S., with a long-term goal of expanding internationally. The product represents an important new market opportunity for FormPrint's Orthopedic business unit, but requires a new approach to marketing and sales. The immediate issue is whether the product should be sold by FormPrint's existing orthopedic sales force or by independent sales representatives. Other issues include the role of the Ortho500 in the company's global marketing strategy and the need for better marketing-sales coordination in a changing healthcare marketplace. If the Ortho500 failed to meet sales targets, bonus compensation would be reduced and the department could face layoffs. The case focuses on a core marketing decision-direct vs. indirect channels of distribution-and raises important issues in strategy development and implementation. The FormPrint case is ideal for use in courses on marketing strategy, marketing organization, B2B marketing, or new product development.

Discussion Questions

  1. What is the source of tension between the sales division and the business unit?
  2. How does FormPrint's business strategy for the Ortho500 influence its sales decision? What do you think is the most important consideration?
  3. What are the strengths of ISR? Direct selling?
  4. How does the cost of an ISR compare to the cost of a Ortho direct sales employee? (Note: The article refers to ISRs, or independent sales representatives, as sales agents or value added resellers.)
  5. If FormPrint chooses a direct selling approach, how should Mark Wittenberg manage the Ortho500 sales team? Will his current approach work? What might he need to change?