SALES MANAGEMENT

Case 1:

Scripto, Inc. (B)1

At one time, Scripto, Inc., utilized the services of Audits and Surveys, a national marketing research firm, but, owing to budgetary restraints, Scripto eliminated marketing research and channeled its financial resources in other directions. As a result, the company had little of the data it required for important marketing decisions. For example, the company experienced great difficulty in securing comparative data for sales of its products and competitive products in retails outlets.

            Determined not to let the void of data affect the 19¢er, Scripto management decided again to consider using marketing research. While management was in general agreement that marketing research was an essential ingredient in marketing orientation and sales strategy, there were two viewpoints as to the type of marketing research needed. One group believed that market studies and data were most crucial to the success of the ¢er; hence, they favored using the services of marketing-research companies, such as Audits and Surveys or A.C. Nielsen Company. Both Audits and Surveys and Nielsen prepared bimonthly reports measuring sales and movements of products through stores (the former was used by Papermate). The major differences between the two research companies were (1) cost and (2) type of retail outlet sampled. It would cost Scripto $20,000 to use Audits and Surveys and $25,000 to use Nielsen. Audits and Surveys recorded sales and products movement primarily of mass merchandisers (variety stores) and a relatively small sample of drugstores and grocery stores, while Nielsen sampled more drugstores and grocery stores than A and S but a smaller sample of variety stores.

 Another group, however, preferred a different course of action – the use of a marketing research firm that specialized in consumer buying patterns rather than market studies per se. This group contended that consumer research was more instrumental in the future of the 19¢er. Such research was typified by the data generated by the National Consumer Panel of Market Research Corporation of America.

            Decisions were required on (1) whether or not to again use marketing research; (2) if so, the type of marketing research most important for Scripto’s 19¢er, market studies and/or consumer buying patterns; and (3) the relationship between sales and marketing research. Management was especially concerned about the relationship between sales and marketing research.

Case 1 Questions:

What is your position on the three problems that had to be solved by Scripto? Defend your arguments