Sales Management Simulation (SMS): FAQ for Instructors

How can I know that students in my class are paid-up participants?

From the time you register the course until the course start date, you will receive weekly updates on participant registration. You may have to remind students that only students who pay can be part of SMS.

Can I choose which participants are in which teams?

Yes. You make the assignments of participants to teams. You also make the assignment of teams to industries.

Is there any limit on the number of participants to a team?

No, but we recommend teams of 3 to 5 participants.

Is there any limit on the number of teams to an industry?

No, but we believe 5 teams is best.

Is there any limit to the number of industries?

No. With two or three industries, the task of identifying differences in strategies followed between industries is considerably easier than with five or six industries.

Can I choose one of the three demand profiles (Developing, Saturating, Stagnant)?

Yes!

What do participants know about market demand?

Participants know about the three demand patterns. They know that either pattern is possible (from their manual). The instructor knows which pattern will occur. Participants are told that by tracking market evolution and buying market research, they will, in time, be able to determine which demand prediction was more accurate.

How does the demand feature in the market research report work?

Market research exists for the predicted pattern four quarters in the future. The selected demand pattern is updated based on decisions participants make. For example, if prices are lower than expected, forecast market demand, as shown by the market research report, will follow the predicted pattern but move upwards.

How can I ensure that every member of a team is participating?

SMS permits a team to collectively enter one set of decisions, but it also allows the instructor to require each team member to suggest the entire set of decisions. These are reviewed by the team leader who iterates to the final decisions. Suggestions are recorded and can be viewed by the administrator. Rotating the team leader role ensures every member has this experience. These options are built into SMS. If not used, the instructor must use other means to encourage and assess participation by individual team members.

What key principles underpin SMS?
  1. Choosing the right salary/commission split is critical for securing motivated behavior. The default ratio is 70:30, salary: commission.
  2. Additional sales training benefits many salespeople, enhancing their competence through advanced training and reducing retraining decay.
  3. SMS computes the likelihood of a salesperson quitting based on compensation mismatches and other factors, allowing participants to take corrective action.
Do I have the ability to set any of the parameters in SMS?

Yes. SMS is designed to demonstrate key sales management principles. For example, the salary/commission ratio and quitting thresholds can be adjusted by the SMS administrator. Detailed instructions are in the instructors’ manual, and we recommend testing parameter changes in a two-team industry.