Strategi pemasaran

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STRATEGI PEMASARAN

Arriffin Mansor

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Value Creation Model:

Value Creation/ Destruction

Operating Income Total Assets WACC

Gross Profit Cost Structure

Current Assets Fixed Assets

Revenues Cost of Goods

WorkingCapital

Other Assets & Liabilities

Inventory

Debtors

Creditors

--

-

+

+

-

+

( )xLong TermLiabilities+

3

Value Creation/ Destruction

Operating Income TotalAssets WACC

Gross Profit Cost Structure

Current Assets

FixedAssets

Revenues Cost of Goods

WorkingCapital

Other Assets & Liabilities

Inventory

Debtors

Creditors

---

+

+

-

+

( )xLong TermLiabilities+

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THE STRATEGIC GAPS• HOW MUCH GROWTH IS LEFT IN MY CURRENT

MARKETS? CUSTOMERS?• WHERE WILL MY FUTURE GROWTH COME FROM?• HOW WILL I CAPTURE MARKET SHARE?• WHAT ARE THE COMPONENTS OF MY

DIFFERENTIATION STRATEGY? • WHERE DO I GENERATE PROFITS? WHERE COULD I

GENERATE PROFITS?

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POSITIONING

Which segments / customers will we concentrate on ?

Whom will we challenge for these customers?

What incentives will we provide to get them to buy from us… rather than from competitors?

CUSTOMERTARGETS

COMPETITORTARGETS

CORESTRATEGY

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BUSINESS STRENGTHS

ACCOUNTATTRACTIVENESS

High

Low

Strong Weak

THE ACCOUNT PORTFOLIO

• Size• Growth• Profitability• Location• Purchasing criteria and

processes• Current suppliers• Status of customer

(prestige)

• Product range• Product efficacy• Service quality• Price• Technical services• Reputation/image• Past experience• Quality of sales staff• Quality of relationships

Invest / GrowSelectively

Invest

MaintainManage for

Cash / Withdraw

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Strong Strength of Position Weak

High

AccountOpportunity

Low

ACCOUNT PORTFOLIO ANALYSIS

Attractiveness:Accounts are very attractive since they offer high opportunity and sales organization has strong position.

Sales call strategy:Accounts should receive a high level of sales calls since they are the sales organization’s most attractive accounts.

Attractiveness:Accounts are potentially attractive since they offer high opportunity, but sales organization currently has weak position with accounts.

Sales call strategy:Selected accounts should receive a high level of sales calls to strengthen the sales organizations position.

KEY TARGET

MAINTENANCE WHY BOTHERAttractiveness:

Accounts are somewhat attractive since sales organization has strong position, but future opportunity is limited.

Sales call strategy:Accounts should receive a moderate level of sales calls to maintain the current strength of the sales organization’s position. And, efforts should be made to replace field sales calls with telephone sales.

Attractiveness:Accounts are very unattractive since they offer low opportunity and sales organization has weak position.

Sales call strategy:Accounts should receive no field sales calls and a minimum of inside sales resources.

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HighA

CC

OU

NT

ATTR

AC

TIVE

NES

S

Low

Strong WeakYOUR STRENGTH OF POSITION

ACCOUNT SEGMENTATION AND PRIORITIZATION

KEY ACCOUNTS

• 10-20% of your account base

• 80% of your GP$

• Receives less than 50% of your resources

TARGET ACCOUNTS(Your competition’s Key Accounts)

MAINTENANCE ACCOUNTS WHY BOTHER? ACCOUNTS

• Gets very little attention

• 40-45% of your account base

• 10-15% of your GP$

• Receives 30-40% of your resources

• 30-40% of your account base• Less than 5% of your GP$• Receives 20-30% of your

resources• Creates 90% of your

“headaches”

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10 LANGKAH RANCANGAN PEMASARAN

Matlamat Pemasaran

Sasaran Pelanggan

Strategi Pemasaran

Perletakan Produk

Segmentasi

Titik Pulang Kos

Pengurusan Jualan

7 langkah menjual

Metrik Pemasaran

Ramalan Jualan & Kos

Penghantaran

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3 ways of doing business – M. Porter

Product Differentia

tion and premium

pricing strategy

Niche Marketing

Mass productio

n and cheap pricing strategi

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5 Langkah Rancangan Pemasaran`1 1 •Analisis Kos volum dan untung

•Strategi PTJ, PTA & PTE

2 •Modal kerja dan Modal Tetap•Strategi Perniagaan - Michael Porter

3 •Segmentasi dan Sasaran dan profile pelanggan•Saiz dan nilai pasaran

4 •Strategi 4 P•Positioning atau perletakan

5 •Strategi Pemasaran melaui BSC perspektif•Metrik Pemasaran

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Matlamat PerniagaanPTJ

• PTJ

Pusingan Aset

• PTA

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CORPORATE PERFORMANCEROE

ROA

ROS

ATO

EM

ASSETS

EQUITY

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PEMASARAN

Matlamat Pemasaran

Rancangan Jualan

Rancangan PemasaranStrategi Pemasaran

Rancangan Keuntungan

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5 Langkah Rancangan Pemasaran`1 1 •Titik pulang kos

•Matlamat Pemasaran

2 •Modal kerja dan Modal Tetap•Strategi Perniagaan

3 •Segmentasi ,Sasaran dan profile pelanggan•Saiz dan nilai pasaran

4 •Strategi 4 P•Positioning atau perletakan

5 •Strategi Pemasaran melaui BSC perspektif•Metrik Pemasaran

6 •Belanjawan Pemasaran

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STRATEGI PEMASARAN

•Margin premium atau murah•Kuantiti banyak x margin kecilHarga

ProdukPromosiSaluran

•Kualiti atau biasa•Faedah produk diterang dgn jelas

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Working capital

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Kehendak Manusia

SELF ACTUALISATION

EGO

SOCIETY

SECURITY

BASIC

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Interaksi Pemasaran

Pelanggan

ProdukOrganisasi

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Penetapan Harga

Harga Kilang Kos Penghantaran

Overhead Pemasaran &

Syarikat

Untung Pemasaran

Harga Produk

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PEMASARAN STRATEGIK

1. Senario Ekonomi Malaysia2. Campuran Pemasaran3. Analisis Pemasaran (SWOT & Audit)4. Kajian Kes5. Penyediaan Pelan Pemasaran Strategik6. Pembentangan

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PEMASARAN STRATEGIK

Senario Ekonomi Malaysia• Perniagaan ialah 1 unit drpd satu sistem ekonomi• Perubahan dalam sistem yg besar beri kesan kpd

unit-unit sekeliling• Kepekaan kpd senario ekonomi semasa beri

kemampuan untuk bertindak ikut rentak sealiran dgn ekonomi

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PEMASARAN STRATEGIK

Petunjuk-petunjuk utama ekonomi (key economic indicators):

1. KNK (GDP)2. Indeks Komposit BSKL3. Belanjawan Negara4. Polisi Fiskal5. Polisi Kewangan

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PEMASARAN STRATEGIK

Senario Ekonomi Malaysia1. Kepentingan Usahawan2. Dunia Tanpa Sempadan3. K-Ekonomi4. Islam5. AFTA

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PEMASARAN STRATEGIK

Apa itu Pemasaran Strategik?• Suatu usaha untuk mempertahankan keuntungan

dan kelebihan kompetitif melalui satu Strategi Pemasaran yang komprehensif dan terkini

• 3 elemen pokok dlm Pemasaran Strategik ialah S.T.P (segmentation, targeting, & positioning)

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Sales Force Management

Fall 1999

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Product Life Cycle Impact: The Value Added Wall for HPBA Companies

Time

Sales

Profits

Product

Value AddedServices Price

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Profit Margin ManagementSales

Cost of Goods Sold

Gross Margin

Net Profit

Net ProfitMargin

TotalExpenses

Sales

÷

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Managing Assets: Inventory and Accts Rec. are the keys

Inventory

AccountsReceivableCurrent Assets

SalesAsset

Turnover

FixedAssets

Total Assets

÷

Other CurrentAssets

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Calculating Return on Assets

Inventory

Accts Rec.Current Assets

Sales

AssetTurnover

FixedAssets

Total Assets

÷

Other CurrentAssets

÷

Net Profit

Net ProfitMargin

Sales Total Expenses

Gross MarginSales

Cost OfGoods SoldReturn on

Assets

Net Profit/Total

Assets

x

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Sales management - Outline

• Role of the sales force in corporate strategy • Trends in personal selling and sales

management• Functions of the salesperson and sales

manager• Course overview

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Strategic Leverage of the Sales Force

• Customer focus• Enhances customer loyalty• Source of competitive advantage

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Enhances Customer Focus

• Allows a targeted market segment approach– one customer at a time– customize sales calls and presentations by needs– important source of market knowledge and

customer needs assessment

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Develops Customer Loyalty

• Creates high switching costs– salesperson (knowledge, expertise, relationship)

creates product/service differentiation, particularly when competitors’ products deliver the same basic benefits

• Loyalty reduces the customers’ price sensitivity

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Source of Competitive Advantage

• Creates a barrier to entry– costs of creating a sales force– market access

• Creates a medium-to-long term competitive advantage– unlike advertising (medium-term) or pricing

(short-term)

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Trends in Personal Selling

• Nature of the sales job:– Informed consultant:

• knowledge of customers, industries and applications– Process (rather than event) driven– Team player – Customer advocate/Market feedback– Integration of promotional mechanisms (e.g. DTC)

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Trends in Personal Selling

• Nature of the sales manager’s job:– Decentralized management; greater span of

control– Automation – Database targeting/customer data– Evaluated on team performance (rather than

individual performance)– Reward in many ways (not just $$)

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Importance of Effective Sales Management

• Expensive part of marketing strategy• Cost of call:

– Overall average: $157– ($239 for a value-added selling environment)

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Sales and Marketing Management

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Drivers Of/Barriers to Change

What’s driving you to

make these changes?

What’s stopping you from making these

changes??

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ELEMENT OFSTRATEGY

KEY / TARGET MAINTENANCE WHY BOTHER

• Order Processing Top priority. Secondary priority. Lowest priority.• Technical Support Top priority Secondary priority. Not available.• Training Yes. Yes. Hourly fee. Not available.

• Fill Rates X% Y% 100%. No backordersship complete.

• On-time Shipment

Stock items sameday if order placeby 4:00 p.m.

Stock items sameday if order placedbefore 1:00 p.m.

Stock items shippedwithin 48 hours.

• Product Mix Stock & non-stock from stock & non- stock suppliers.

Stock and non stock from stocking suppliers only.

Stock, in stock only.

• Non-stockSourcing

Yes. Yes, from stockingsuppliers only.

No non-stocks.

• Minimum OrderSize

No minimum. No min. on stock items; $200 minimum on non-stock items.

$200.

DIFFERENTIATING CUSTOMER SEGMENTS

Customer Segment

• Returns Yes. No restockingfee.

Yes, restocking feeof $X.

Only if over $Y,restocking fee of $X.

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Perspectives on the Sales Management Function

Traditional View New View

Do-er

Responsible for Volume

Short Run

Individual Customers

Field Work Rather Than Desk Work

Driver

Manager of ScarceResources

Profit Planning

Long Term and ShortTerm

Customer Types and Segment Differences

Systems for Market Analysis, Planning and Control

Leader

Developer of Sales Developer of People

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Better Understanding of Customer’s Needs

Better Selectivity

Better Selling Strategies

Better Time & Territory Management

TheSelling

Ballgame

Changing BusinessEnvironment

Leads to

Changing SellingEnvironment

Resulting in

Harder to Get and Hold Customers and It Costs

More!

Implications

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Customer Results

Sales Force Activity

Company Results

THE INTEGRATED MODEL

People and Culture

Sales Force Drivers

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PURPOSE OF A BUSINESS• Purpose of a business is to create a customer.• Profit is only a test of management decision making.• Profit is required to maintain the customer.• A business only has two primary functions, sales and innovation,

everything else is just cost.

INNOVATION MARKETINGThe world according to Peter Drucker

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BALANCED SALES TEAM

THE LOGIC

Communicating and Linking Communicating and

educating Setting goals Linking rewards to

performance measures

Planning and Target Setting Setting targets Aligning strategic

initiatives Allocating resources Establishing

milestones

Strategic Feedback and LearningClarifying the Focus Articulating the focus and

strategy Facilitating strategy

review and learning

Clarifying and Translating the Focus and Strategy Clarifying the focus Gaining consensus

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INCREASEBENEFITS

REDUCECOST Lessen cost

and effort of acquisition

Create extraordinary value for a few

very largecustomers

Intrinsic Value Customers(buying on product value alone)

Strategic Value Customers(leveraging supplier’s

enterprise competencies) Extrinsic Value Customers

(buying beyond product value)

Create new value through sales efforts

STRATEGY DEVELOPMENT

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Functions of the Salesperson

• Prospecting• Communicating: two-way• Allocating & coordinating: company

resources, time• Servicing• Helping define marketing strategy

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Functions of the Sales Manager

• Communicate expectations: tell salespeople what you expect them to do

• Make the work doable: an important component o the SM role here is removing obstacles to performance

• Evaluate and give feedback: reward successful behavior, apply corrective actions for behavior that is not acceptable

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Course Overview

• Effective Personal Selling• Strategic Issues• Tactical Issues• Industrial Settings

– informed buyers– discipline of repeat purchase– often genuine differentiation is possible

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PEMASARAN STRATEGIK

Petunjuk-petunjuk utama ekonomi (key economic indicators):

1. KNK (GDP)2. Indeks Komposit BSKL3. Belanjawan Negara4. Polisi Fiskal5. Polisi Kewangan

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Pyramid Metrics

Return on Equity

Return on Assets

Gearing ratio

Resource Efficiency

Profit per person

Sales per hour

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Course Overview (continued)

• Effective Personal Selling– What is effective personal selling?– Business to business selling and the Buyclass

Framework (Case: Lawford Electric)

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Course Overview (continued)

• Strategic Issues– Vertical Integration (Case: Jamestown)– Control Systems– Structuring the Sales Force(Cases: Wright Line &

Siebel Systems– Sales Force Allocation: Deployment & Organization

(Case: Syntex)– Territory Assignment & Design– Strategy for Optimal Sales Productivity

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Course Overview (continued)

• Tactical Issues– Sales Analysis (Case: Milford A)– Performance Evaluation (Case: Milford B)– Compensation (Case:Mary Kay Cosmetics) &

Motivation (Case: IMAGE)– Selection (Case: IDS) & Training– Information Systems/Sales Force Automation

(Case: Profiling at National Mutual)– Sales Force Automation

Personal Selling

“Everybody lives by selling something.”Robert Louis Stevenson

Careers in Sales High demand but not a career for everybody,but, good experience early in any career…Negative perceptions$…$…$

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Personal Selling 7 steps

Selling Process

1. Prospecting2. Customer Profile3. Approaching4. Presenting/Demonstration5. Handling Objections and Questions6. Closing7. Follow-up

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Personal Selling

Sales force activities– Cultivating new clients– Communication– Selling– Servicing– Information gathering– Allocating scarce resources

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Personal Selling

ObjectivesUnits or $ soldMarket share by territoryTarget profit per saleMaximize sales per $ costMaximize number of sales calls per period

…but these mostly conflict…?

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Personal Selling

Salary versus Commission

control…incentive

security…fairness

simplicity…flexibility

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Personal Selling

4 E’s1. Energy for long hours2. Enthusiasm for job, product3. Empathy for customer4. Ego, victory, desire to win

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Blowing in the Wind Video

Annoying Sales Promotion Works

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Cost-Volume-Profit Graph

Revenue Total Revenue

Total Cost

Unit soldX

Y

Loss

Profit

X = Break-even point in unitsY = Break-even point in revenue

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Profit-Volume Graph

Profit

- F

Loss Break-Even PointIn Units

Units

Slope = P - V

I = (P - V)X - F

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Example 3

The Rapid Meal has two restaurants that are open 24 hours per day. Fixed costs for the two restaurants together total $450,000 per year. Service varies from a cup of coffee to full meals. The average sales check for each customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The income tax rate is 30%. Target net income is $105,000.

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Example 3 Cont’dCompute the total dollar sales needed to obtain thetarget net income.

How many sales checks are needed to break even?

Compute net income if the number of sales checksis 150,000

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Assume the following: Regular Deluxe Total PercentUnits sold 400 200 600 ---- Sales price per unit $ 500 $750 ---- ---- Sales $200,000 $150,000 $350,000 100.0%Less: Variable expenses 120,000 60,000 180,000 51.4 Contribution margin $ 80,000 $ 90,000 $170,000 48.6%Less: Fixed expenses 130,000Net income $ 40,000

=======

Multiple-Product Example

1. What is the break even point?

2. How much sales revenue of each product must be generated to earn a before tax profit $50,000?

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Pulangan terhadap ekuiti

Pulangan terhadap Jualan

Pusingan Aset

Gandaan Ekuiti

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Pulangan Prestasi Utama

PTJ

PTA

PTE

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KEY PERFORMANCE INDICATORS

U/J = UNTUNG BERSIH

J/A = PUSINGAN MODAL

A/E = GANDAAN HUTANG

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KEY PERFORMANCE INDICATORS

U/J = UNTUNG BERSIH

J/A = PUSINGAN MODAL

A/E = GANDAAN HUTANG

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Maximising ROS strategies

Profit

Sales

73

Maximising ROA strategies

Profit

Assets

74

Maximising ROE strategies

Profit

Equity

75

Costs plus profit

Variable costs

Fixed costs

Profit

Price

76

Harga Pengilang

Harga Kilang

Bahan Mentah

Upah Overhead

Untung Kilang

77

Harga Jual

Harga Jual

Harga Kilang

Upah JualPenghantaranOverhead Jualan

Overhead syarikat

Untung Pasaran

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Kos Overhead Syarikat

Kos Overhead Syarikat

CEOCFO

CLO

79

Overhead KilangOverh

eadKilang

Overhead

Syarikat

Overhead Kilang

80

OVERHEAD JUALANOverh

eadJualan

Overhead

syarikat

OverheadJualan

81

Total Capital

Working Capital

cash

stock

debtors

-creditors

82

Financial Leverage:

Assets Liabilities

83

Harga Kilang

Bahan Upah diKilang

Overhead Kilang

Overhead syarikat

Untung Syarikat

84

Harga Produk

Harga Kilang Bahan

Upah

Overhead Kilang

Overhead Syarikat

Untung Jualan

85

Value Chain

Inputs Process Output Outcome

86

Inte

rnal

Pro

cess

Stak

ehol

der

Lear

ning

& G

row

th

Reduce Re-Activities thru ABC/M

Establish Web Based Self Services

Knowledge Management

Human Capital

Improved Returns on

Investments

More rapid and accessible services

Leadership Development

Inve

stm

entsStrategy Map: Capture a Cause Effect

Relationship from the Bottom Up

IT Infrastructure

Facilities and Fixed Assets

Economic Model Process

Expand Global Facility Reach

87

Managing Assets: Inventory and Accts Rec. are the keys

Inventory

AccountsReceivableCurrent Assets

SalesAsset

Turnover

FixedAssets

Total Assets

÷

Other CurrentAssets

88

Perspektif BSC

Kewangan

Pekerja dan Kemahiran

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Perspektif BSCMargin x PusinganPelanggan Baru dan Pelanggan

lamaKecekapan perkhidmatan & Jualan Kredit

Perkhidmatan kaunter & Jurujual dan pemberian kredit yang bijak

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Perspektif BSCKewanganPelangganProses Dalaman

Pekerja dan Kemahiran

91

Harga Kilang

Penghantaran

Upah JualOverhead jual

Overhead Syarikat

Untung Jualan

Harga Jual

KOS DAN HARGA

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Strategi Pemasaran

Perspektif

KEWANGAN

PELANGGAN

OPERASI

PEKERJA

KPIsMargin JualanPertumbuhan pelanggan

Pasaran Baru

Customer retentionAcquisitionpenetration

Kos per unitDelivery time

Produktiviti

93

Matlamat Pemasaran

PTJ •untung•Jualan

PTA •Jualan•Jumlah Aset

GE •Aset•Ekuiti

94

Produk

isiIntangible JaminanBungkusan

95

Kualiti Produk

durabiliti

beauty

functional

keselamatan

economy

96

STRATEGI PEMASARAN

PULANGAN

TERHADAP JUALAN

PUSINGAN

ASETGANDA

ANEKUITI

PULANGAN TERHADAP

EKUITI

Jualan tunai dan belian secara kredit

Kurangkan kos tingkatkan jualan

Sewa jangan beliJika beli dengan pinjaman bank

97

Rancangan PemasaranPTE

Positioning

Strategi pemasaran

Segmentasi Pelanggan

98

PEMASARAN

Segmentasi

Perletakan

Strategi

Marketing PlanMarketing Objectives Product Place Price Promotion

Increase Market Share New Product Penang Reduce Price of

product AHave web

based promotion

Gain New Customers Add benefits Direct selling Higher margin networking

Market Penetration

Better brochures

Existing klang valle channel

Reducing Price by 3% CRM

Improve Sales Margin Change packing Reduce

marketing costs Increase PriceUsing web

based marketing

100

Strategi Pemasaran perspektif BSC• Tingkatkan

Pulangan• Syer pasaran

• Tambah Pelanggan

• Nilai Jualan

• Masa penyampaian

• Kos menurun

• Kompetensi• Teknologi baru

Matlamat Kewangan

Kepuasan Pelanggan

Proses Dalaman

Pekerja & Latihan

101

Rancangan Pemasaran

• Analisis kos, volum dan untung.• Belian atau harga kilang• Tunai + penghutang + stok• Kos Penghantaran• Overhead Pemasaran

102

14 Langkah Rancangan PemasaranAnalisis Kos volum dan

untung

Matlamat Pemasaran

Segmentasi Pelanggan

Strategi Pemasaran – 4ps

Perletakan Produk

Pengurusan Jualan

7 Langkah menjual

Belanjawan Belian atau harga kilang

RamalanJualan Bualanan

Modal Kerja

Kos Penghantaran

Overhead Pemasaran

Metrik Pemasaran

Belanjawan Pemasaran

COMPTENCY DEVELOPMENT

RoleIdentified

competenciesAssessment

resultAreas of

improvement Action plan

Dr. MG Jomon, XIMB

104

Current Sales Trend

105

Musical stairs

106

Terima Kasih

Soalan soalan jika ada

107

“Bottom Line”

A business can no longer rely on the uniqueness of their

products to retain customers or grow new sales revenue.

Customers will align their business with strategic suppliers who understand their business and bring a unique offering which adds value by

impacting their “bottom line” through increased sales revenue or reduced costs

108

Inadequate Sales Performance

Aware of whatwas expected

Aware of ownperformance

Uncontrollablenegative factors

Lack of ability

Lack of want-to

How can goals and standardsbe made clear?

How can the salespersonbe sensitized?

How to avoid, eliminate,or ignore?

How to train?

How to motivate?

No

No

Yes

Yes

Yes

Yes

Yes

No

No

109

Evaluating Sales Performance

InformationSources

Data Analysis

Observation

Interview

110

Possible Situations...

Fix theproblem(ROTI)

Forget theproblem

orTerminatethe person

Causes of the problem are fixable

Causes of the problem are fixable, butnot work fixing

Causes of the problem are not fixable

111

THE SALES REPRESENTATIVE THINKS…

The Planning Process Priorities Programs Processes The Numbers

1. What is expected of me?

The Feedback Process Metrics Performance Appraisals Field coaching Meetings Compensation

2. How am I doing?

The Adjustment ProcessCorrective actionsContinuous ImprovementKIP’s, PIP’s New planning for the

future

3. How do I need to change?

112

QUOTES FROM PERFORMANCE APPRAISALS

• “This individual has talents but has kept them well hidden.”• “Combs his hair to one side and appears rustic.”• “A quiet, reticent, neat appearing individual— industrious, tenacious,

diffident, careful, and neat. I do not wish to have this person as a member of my staff at any time.”

• "His leadership is outstanding except for his lack of ability to get along with his subordinates.”

• “He hasn’t any mental traits.”• “He needs careful watching since he borders on the brilliant.”• “Believes sincerely in the power of prayer and it is astonishing to note

how many times his prayers are answered.”• “He never makes the same mistake twice but it seems to me that he has

made them all once.”• “Gives the appearance of being fat due to the tight clothes he wears.”

113

QUOTES FROM PERFORMANCE APPRAISALS–2

• “Is keenly analytical and his highly developed mentality could best be used in the research and development field. He lacks common sense.”

• “An independent thinker with a mediocre mentality.”• “Recently married and devotes more time to this activity than to his

current assignment.”• “Tends to create the impression of unpositive personality through

needless and undiscerning gentility and soft spokenness.”• “Of average intelligence except for lack of judgment on one

occasion in attempting to capture a rattlesnake for which he was hospitalized.”

114

The Key Challenge

Implications1. Less discounting.2. Selling higher margin products.3. Selling more product lines to each customer (cross-selling).4. Being more selective and discriminating in qualifying potential buyers.5. Better use of selling time (deployment).

Sales Productivity = G.M.C.O.S.

Where: G.M. = Gross Margin DollarsC.O.S. = Cost of Sale in Dollars

115

SUMMARY

Defined Getting in front of Using skills and abilitiescustomer at minimum to maximize salescost potential

Mechanisms Working harder: Working smarter:for improving – time management – coaching

– incentives – skills training– call reports – account strategies– territory design

Measures – penetration – success rates– call rates – repeat business– cost / call – sustainable margins

Sales Efficiency Sales Effectiveness

116

MOVING TO ACTION

• Efficiency:– Can be driven top down

• Effectiveness:– Acting differently– Hard to drive top down– Salespeople and managers do it

Source: The Klompmaker Consulting Group

117

Logistics – A Strategic Perspective

• Measured by Cost• Technology allows firms to manage inventory

they cannot see and sometimes do not own• Disintermediation• Creating wholesaler value

118

Two Views of Inventory Management

Velocity

Level

119

Inside the Buyer’s Mind• What do you offer?• What do you offer that no one else has?• What do you offer of value?• Does it really fill my need?• Is it real world?• Will it work?• Will it work in our environment?• How will it impact our people?• How could it impact our success?• Will senior management buy in?• Will my people use it?• How will we produce as a result of the purchase?• How will we profit as a result of the purchase?• Do I trust the people I’m buying from both as people and for their ability to deliver

what they promise?• How will it come together?• How do we buy it?• Do I have the comfort to sign off now?

120

ABC Analysis Based on Annual Dollar Volume Annual Dollar Volume Percentages

1 2 3 4

Item Unit Cost Annual Usage (units)

Annual Usage (dollars)

% of Total Dollar Usage

1 4.00 1,000 2 2.50 1,500 3 3.00 5,000 4 30.00 4,000 5 31.00 10,000 6 1.20 8,000 7 25.00 1,500 8 20.00 100 9 8.00 625

10 6.00 2,000 Total 100%

1. Now rank the answers from the highest annual dollar usage to the lowest:

1 2 3 4 Item Annual Usage

(dollars) % of Total Cumulative % Classification