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Dr. Joseph Hair (Kennesaw State University), Dr. Victoria Crittenden (Boston College), Dr. David Downey (Purdue University), Dr. Robert Peterson (University of Texas), Dr. Mike Williams (Illinois State University), Dr. Derek Hassay (University of Calgary), and Dr. Deborah MacInnis (University of Southern California). These board members "assist in evaluating and enhancing Vector's sales, training, and promotional programs for college students and sales representatives." |
Dr. Joseph Hair (Kennesaw State University), Dr. Victoria Crittenden (Boston College), Dr. David Downey (Purdue University), Dr. Robert Peterson (University of Texas), Dr. Mike Williams (Illinois State University), Dr. Derek Hassay (University of Calgary), and Dr. Deborah MacInnis (University of Southern California). These board members "assist in evaluating and enhancing Vector's sales, training, and promotional programs for college students and sales representatives." |
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The training seminar that Vector representatives attend to start their careers is also offered as a class at universities around the country including [[Illinois State University]], which is located in Normal, |
The training seminar that Vector representatives attend to start their careers is also offered as a class at universities around the country including [[Illinois State University]], which is located in [[Normal, Illinois]].<ref name="marketwire"> [http://www.marketwire.com/press-release/Vector-Marketing-991232.html Illinois State Sales Class and Vector Marketing Corporation Donate to Starlight-Midwest Children's Foundation]</ref> Professor Jill Ataway, who teaches the class with help from the Chicago Division Manager Mike Muriel, emphasizes that selling Cutco gives students "the opportunity to find out what it is like to take the theory from the classroom and apply it to a real-world sales environment" <ref name="marketwire"/> |
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Like many direct selling organizations, the overall success of representatives is based on performance. Representatives receive a presentation booklet during the course of the training seminar, which they are not paid for, which consists of the word for word demonstration that reps are encouraged to follow in order to develop necessary skill-sets within the company. |
Like many direct selling organizations, the overall success of representatives is based on performance. Representatives receive a presentation booklet during the course of the training seminar, which they are not paid for, which consists of the word for word demonstration that reps are encouraged to follow in order to develop necessary skill-sets within the company. |
Revision as of 17:53, 6 April 2010
File:Vector Marketing logo.png | |
Company type | Private |
---|---|
Industry | Marketing |
Founded | 1981[1] |
Headquarters | Olean, New York, U.S. |
Revenue | $257 million FY 2009[citation needed] |
Website | www.vectormarketing.com |
Vector Marketing is the domestic sales arm of Cutco Corporation (formerly Alcas Corporation), the Olean, New York-based company that manufactures Cutco products.
Salespeople, many of them college students and recent high school graduates[2] market Cutco products (mainly kitchen knives) to customers, especially their friends and family members[3] via one-on-one demonstrations, and (infrequently) through fairs & shows.[4] Vector builds its force through advertising via newspapers, Craigslist, direct marketing, MySpace, Facebook, word-of-mouth, posted advertisements, and letters sent to students and recent graduates. Their fliers advertising "student work" are a common sight on many college campuses in the United States and Canada.
Business Model
Vector Marketing is a multi-level marketing group.[5] Commissions start at 10%, increasing in 5%-per-promotion increments up to 30%. Promotions beyond that are monthly bonuses (10%, 15%, and 20%) which are paid only if the sales representative meets a sales threshold for the month. This bonus is then added to the rep's regular commission. Straight commission plus the monthly bonus means that the top representatives are paid at a 50% rate. Promotions are dependent upon career sales, and remain permanently; i.e., one could leave the company and, upon returning, receive the same commission rate. Sales representatives may refer their friends to join as a new sales reps which allows them to gain 3% of their friends' sales, and this bonus comes out of the manager's paycheck, not the friend's paycheck. The company's average order is $250, and the average conversion ratio or closing percentage is 60% meaning that representatives should typically make more on their commissions than from the base pay.[citation needed] The Vector Marketing company does not provide professional assistance with creating and generating formal appointments with customers.[citation needed]
Vector is a member of the Direct Selling Association and the Better Business Bureau.[6] In 2006, Vector became a National Advisory Board member of DECA.[7]
A strict promote-from-within policy[8] allows successful individuals an opportunity for advancement. Those that are selected can go through Vector's management training program after beginning at the bottom entry level position of a sales representative. Many Vector offices are managed by recent college graduates, and assistant managers are generally college students, although the company does have a Branch manager program that allows current students to open and run an office while on summer break.
Vector Marketing possesses an advisory board currently consisting of seven college professors: Dr. Joseph Hair (Kennesaw State University), Dr. Victoria Crittenden (Boston College), Dr. David Downey (Purdue University), Dr. Robert Peterson (University of Texas), Dr. Mike Williams (Illinois State University), Dr. Derek Hassay (University of Calgary), and Dr. Deborah MacInnis (University of Southern California). These board members "assist in evaluating and enhancing Vector's sales, training, and promotional programs for college students and sales representatives."
The training seminar that Vector representatives attend to start their careers is also offered as a class at universities around the country including Illinois State University, which is located in Normal, Illinois.[9] Professor Jill Ataway, who teaches the class with help from the Chicago Division Manager Mike Muriel, emphasizes that selling Cutco gives students "the opportunity to find out what it is like to take the theory from the classroom and apply it to a real-world sales environment" [9]
Like many direct selling organizations, the overall success of representatives is based on performance. Representatives receive a presentation booklet during the course of the training seminar, which they are not paid for, which consists of the word for word demonstration that reps are encouraged to follow in order to develop necessary skill-sets within the company.
Controversy and criticism
Some former employees have accused Vector Marketing of unsavory business practices.[10]
Vector Marketing requires sales representatives to make a security deposit of $150 in order to procure a set of knives for demonstrations, prompting some to complain about this policy (the deposit is refundable if a representative chooses to quit or the contract is terminated).[10][11][12] Students who work for Vector Marketing are considered independent contractors and are not reimbursed by the company for money they spend on gasoline used while working or for the time they spend at training sessions.[5][10]
References
- ^ Vector "Company History" http://www.vectormarketing.com/Company-History.php
- ^ Vector MarketingWall Street Journal Summer Job: Nice Pay, if You Can Cut It - AUGUST 5, 2008
- ^ Vector Marketing Street Cents Episode 10 (Canadian Broadcasting Corporation), January 14, 2002
- ^ Vector Marketing website FAQ for Parents
- ^ a b Deal, A. Matthew (2006-09-26). "High wages for student work - but beware". Campus News. The Carolinian. p. 1. Retrieved 2008-06-05.
- ^ http://www.vectormarketing.com/Memberships.php
- ^ [1] Vector Marketing & Cutco Philanthropic Endeavors
- ^ Vector Marketing website FAQ for Parents
- ^ a b Illinois State Sales Class and Vector Marketing Corporation Donate to Starlight-Midwest Children's Foundation
- ^ a b c Lucchesi, Nick (2004-02-04). "Vector Marketing targets unaware college students". News. The Journal. p. 2. Retrieved 2008-06-05.
- ^ Da Costa, Polyana (2004-08-21). "Firm misled sales recruits to sell knives, students say". Business. Statesman Journal. Retrieved 2008-06-05.
- ^ Anderson, Matt (2004-10-06). "Vector policies questionable". News. Sidelines. p. 1. Retrieved 2008-06-05.