Sales Management 4 Strategic Roles Strategic Roles Sales and Sales Sales and Sales Management Management
Dec 30, 2015
Sales Management 4
Strategic Roles Strategic Roles
Sales and Sales ManagementSales and Sales Management
Integrated Marketing
Make sure the Four Ps match.Make sure the Four Ps match. If selling on price, can’t have most If selling on price, can’t have most
expensive ingredients.expensive ingredients. Make sure all marketing communications Make sure all marketing communications
are working together.are working together. Same message in ads, sales, literature, Same message in ads, sales, literature,
PR, promotionsPR, promotions
General Business Strategies and Their Implications
Type of Strategy Sales Force Implications
PORTER’S TYPOLOGYLow Cost SupplierAggressive construction of efficient-scale facilities, vigorous pursuit of cost reductions from experience, tight cost and overhead control, usually associated with high relative market share.
Servicing large current customers, pursuing large prospects, minimizing costs, selling on the basis of price, and usually assuming significant order-taking responsibilities.
DifferentiationCreation of something perceived industrywide as being unique. Provides insulation against competitive rivalry because of brand loyalty and resulting lower sensitivity to price.
NicheService of a particular target market, with each functional policy developed with this target market in mind. Although market share in the industry might be low, the firm dominates a segment within the industry.
To become experts in the operations and opportunities associated with the target market. Focusing customer attention on nonprice benefits and allocating selling time to the target market.
Selling nonprice benefits, generating orders, providing high quality of customer service and responsiveness, possibly significant amount of prospecting if high growth industry, selecting customers based on low price sensitivity. Usually requires a high quality sales force.
Low Cost
Differentiation
Niche
Nose Warmers
Carving a Niche in Life
Niche
4th Strategy Type: Middle of the Road
Middle-of-the-Road Strategy
Standing in the middle of the road is dangerous; you get
knocked down by traffic from both sides.
- Margaret Thatcher
This strategy leads to:
Road Kill
Road Kill
Miles and Snow Typology
Prospector
Attempt to pioneer in product/market development. Offer a frequently changing product line and be willing to sacrifice short-term profits to gain a long-term stronghold in their markets.
DefenderOffer a limited, stable product line to a predictable market. Markets are generally in the late growth or early maturity phase of the product life cycle. Emphasis is on being the low-cost producer through high volume
Analyzer
Choose high growth markets while holding onto substantial mature markets. Analyzers are an intermediate type of firm. They make fewer and slower product market changes than prospectors, but are less committed to stability and efficiency than defenders.
Prospector
Primary focus is on sales volume growth. Territory management emphasizes customer penetration and prospecting
Defender
Maintain the current customer base. Very little prospecting for new customers is involved. Customer service is emphasized along with greater account penetration.
Analyzer
Must balance multiple roles: servicing existing customers, prospecting for new customers, uncovering new applications, holding onto distribution of mature products and support campaigns for new products.
Marketing Strategy andthe Sales Function AdvantagesAdvantages
Only promotional tool that consists of personal Only promotional tool that consists of personal communication between seller and buyercommunication between seller and buyer
More credible and has more impactMore credible and has more impact Better timing of message deliveryBetter timing of message delivery Ability to tailor message to buyerAbility to tailor message to buyer Allows for sale to be closedAllows for sale to be closed
DisadvantageDisadvantage High cost per contactHigh cost per contact
Large SmallNumber and Dispersion of Customers
Low HighBuyers’ Information Needs
Small LargeSize and Importance of Purchase
Little MuchPostpurchase Service Required
Low HighProduct Complexity
Pull PushDistribution Strategy
Pre-set NegotiatedPricing Policy
Many FewResources Available for Promotion
AdvertisingRelatively Important
Personal SellingRelatively Important
Sources of Increased Profit from Loyal Customers
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Why loyal customers are more profitable
ReferralsPrice premium
Lower costs
Increased sales volumeInitial sales
Years as a customerCost of new customer
Contribution to profits
Using the Internet in Sales
Increase ReachIncrease Reach
Gather Information about CustomersGather Information about Customers
Showcase New ProductsShowcase New Products
Conduct SurveysConduct Surveys
Enhance Corporate ImageEnhance Corporate Image
Obtain FeedbackObtain Feedback
Service Existing CustomersService Existing Customers
Industrial Distributors
Have Their Own Sales ForceHave Their Own Sales Force
May Represent One Manufacturer; May Represent One Manufacturer; Several Non-competing Manufacturers; Several Non-competing Manufacturers; Several Competing ManufacturersSeveral Competing Manufacturers
Normally Carry InventoryNormally Carry Inventory
Independent/Manufacturers’ Reps
Sell complimentary products from non-Sell complimentary products from non-
competing manufacturers.competing manufacturers.
Do Not Normally Carry InventoryDo Not Normally Carry Inventory
Paid for PerformancePaid for Performance
Reduced Control over Selling EffortReduced Control over Selling Effort
Reduced Access to Customer InformationReduced Access to Customer Information
Team Selling
Two Types of Team SellingTwo Types of Team Selling
–Multilevel SellingMultilevel Selling
–Major Account SellingMajor Account Selling
Telemarketing
May replace field sales force for certain accountsMay replace field sales force for certain accounts
When integrated with field sales force, activities When integrated with field sales force, activities include:include:
Prospecting, Qualifying Leads, Conducting Prospecting, Qualifying Leads, Conducting
SurveysSurveys
Taking Orders, Checking on Order Status, Taking Orders, Checking on Order Status,
Handling Order ProblemsHandling Order Problems
Following Up for Repeat BusinessFollowing Up for Repeat Business
Trade Shows
Generate LeadsGenerate Leads
Test Market New ProductsTest Market New Products
Introduce New ProductsIntroduce New Products
Close SalesClose Sales
Gather Competitive InformationGather Competitive Information
Service Existing CustomersService Existing Customers
Enhance Corporate ImageEnhance Corporate Image