Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-1 Chapter 2 Strategic Sales Force Management You got to be very careful if you.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2-1ChapterChapter

22 Strategic Sales Force Management

You got to be very careful if you don’t know where you’re going, because you might not get there.

Yogi Berra


2-2

Figure 2-1: Figure 2-1: A company’s A company’s complete complete marketing marketing systemsystem

Figure 2-1: Figure 2-1: A company’s A company’s complete complete marketing marketing systemsystem

Macroenvironmental forces:

Demography Economic conditions Sociocultural factors Political-legal factors Technology Competition

Company’s marketing mix:

Product planning Price structure Distribution system Promotional activities

Marketingintermediaries Suppliers The

market

Nonmarketing resources in the firm:

Production Financial Personnel

Public image Research and Development Location

Marketing intermediaries


2-3

The Marketing ConceptThe Marketing ConceptThe Marketing ConceptThe Marketing Concept

A philosophy: Achieving organizational goals depends on the firm’s ability to identify the needs and wants of a target market, and then to satisfy those needs and wants better than the competition does.

Based on three fundamental beliefsCompany planning and operations should be customer or

market oriented.Marketing activities in a firm should be organizationally

coordinated.The goal of the organization should be to generate

profitable sales volume over the long run.


2-4

Evolution of Evolution of Marketing ManagementMarketing Management

Evolution of Evolution of Marketing ManagementMarketing Management

Production orientationFocus on mass-producing a limited variety of products for

as little cost as possible.Sales orientation

Age of the hard-sell.Marketing orientation

The marketing concept first emerges.Relationship orientation

A natural extension of the marketing-orientation stage.The buyer and seller commit to doing business over a

long time.


2-5

How do these How do these selling styles selling styles depicted in this depicted in this 1927 cartoon 1927 cartoon relate to the relate to the four stages in four stages in the evolution the evolution of marketing of marketing management?management?

How do these How do these selling styles selling styles depicted in this depicted in this 1927 cartoon 1927 cartoon relate to the relate to the four stages in four stages in the evolution the evolution of marketing of marketing management?management?

Figure 2-3


2-6

Relationship Marketing: Relationship Marketing: Four key issuesFour key issues

Relationship Marketing: Relationship Marketing: Four key issuesFour key issues

Open communication

Empowering employees

Customers and the planning process

Working in teams

Total quality management


2-7

Teaching TeamworkTeaching TeamworkTeaching TeamworkTeaching Teamwork

In your opinion, which one of these (if any) would be

most effective at teaching a salesperson how to be an

effective member of a selling team?

Cooking class

Drum circle

Military exercise

Outdoor adventure

Ropes exercise


2-8

Integrating…Integrating…Integrating…Integrating…

…Marketing and SalesMarketing executives develop marketing strategySalespeople implement the strategy in the field

…Production and SalesProduction makes what Sales sells

Close integration / accurate forecasts needed, or else… Under-production dissatisfied customers Over-production excessive, costly inventory


2-9

Strategic PlanningStrategic PlanningStrategic PlanningStrategic Planning

Objectives are the broad

goals around which a strategic

plan is formulated.

Strategies are the plans of

action.

Tactics are the specific

activities that people must

perform in order to carry out

the strategy.

Set Objectives

Formulate

Strategies

Develop Tactics


2-10

CompanyCompany

MarketingMarketing Objectives

Strategy

Increase marketing share 10%

Company Strategy-Marketing Objectives and Strategy

Company Strategy-Marketing Objectives and Strategy

Earn 20% ROI

StrategyIncrease share of customer business

Increase marketshare 10%

Objectives


2-11

MarketingMarketing

Sales ForceSales Force

Strategy Increase share of customer business

Marketing Strategy-Sales Force Objectives, Strategy and Tactics

Marketing Strategy-Sales Force Objectives, Strategy and Tactics

Increase share of customer business

StrategyBuild long-term

customer relations

TacticsDevelop sales teams

Provide bonuses for greater customer share

Increase market share 10%

Objectives

Objectives


2-12

Strategic TrendsStrategic TrendsStrategic TrendsStrategic Trends

Internet SellingMultiple Sales ChannelsMultiple Relationship Strategies

Transaction selling Consultative selling

In this era of global warming, toxic waste, pollution, and other concerns, marketing executives must act in a socially responsible manner if they wish to succeed or even survive.


2-13

Customer Relationship Customer Relationship ManagementManagementCustomer Relationship Customer Relationship ManagementManagement

CRM practicesInvolve a company-wide software application utilizing

advanced computer- and Internet-technology.Aggregate all information about customers into a single

database.Provide salespeople/customers access to timely and

relevant information.Allow effective management of every aspect of the buyer-

seller relationship.Require training

Only effective if salespeople embrace it and are willing to use it.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-1 Chapter 2 Strategic Sales Force Management You got to be very careful if you.

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