6593478 Ch02 Strategy and Sales Program Planning

8/8/2019 6593478 Ch02 Strategy and Sales Program Planning

1/38

Part I

THE BIG PICTURE

Chapter 2:

Strategy and SalesProgram Planning


2/38

The natural progression

How to make sales force and salesprogram decision


3/38

BusinessStrategy

MarketingStrategy

Go-to-MarketStrategy

Supply ChainManagement (SCM)

CustomerRelationship

Management (CRM)LEVEL 2Strategy

ImplementationDecisions

Product DevelopmentManagement

(PDM)

LEVEL 1

Top

Management

Decisions

Figure 2-1 The Sales Force Decision Sequence

LEVEL 3Sales ForceProgramDecisions

Account Relationship

Strategy


4/38

Business Strategy


5/38

Figure 2-2: Factors Influencing Strategic Management

Distinct competenciesMarketingFinancialTechnologyInformation

Distinct competenciesMarketingFinancialTechnologyInformation

Environmental constraintsLegal & regulatoryDemographics

Economic ConditionsTechnologyCompetitive conditionsSociocultural factors

Environmental constraintsLegal & regulatoryDemographics

Economic ConditionsTechnologyCompetitive conditionsSociocultural factors

Strategic ManagementPlanning

Strategic ManagementPlanning

Resources

FinancialR&DPersonnelBrand EquityProduction

Resources

FinancialR&DPersonnelBrand EquityProduction

Firms historymanagement culture

Firms historymanagement culture


6/38

Marketing Strategy


7/38

Figure 2-3: Hierarchy of Sales Objectives

Corporate goals

Maximize shareholder wealth

Corporate goals

Maximize shareholder wealth

Business unit objectives

12% revenue growth

Grow pre-tax profits by 18%

Business unit objectives

12% revenue growth

Grow pre-tax profits by 18%

Marketing objectives

Increase product As market share by 2 points

Grow contributions after sales & marketing by 20%

Marketing objectives

Increase product As market share by 2 points

Grow contributions after sales & marketing by 20%

Sales department objectivesAchieve sales revenue of$210 million

Grow contributions after sales expenses by 25%

Sales department objectivesAchieve sales revenue of$210 million

Grow contributions after sales expenses by 25%

Sales district objective

Achieve sales revenue of$10.5 million in product A

Obtain $7 million contributions after direct selling

Sales district objective

Achieve sales revenue of$10.5 million in product A

Obtain $7 million contributions after direct selling

Salesperson objectiveAchieve sales revenues of$1.2 million in product A

Obtain $0.8 million in gross margin dollars

Salesperson objectiveAchieve sales revenues of$1.2 million in product A

Obtain $0.8 million in gross margin dollars

Major account objective

Achieve sales revenues of$95,000 in product A

Obtain an average gross margin of80%

Major account objective

Achieve sales revenues of$95,000 in product A

Obtain an average gross margin of80%


8/38

A Look into WhatCompanies Want . . . .


9/38

0

10

70

60

50

40

30

20

29.8% 31.9%

66.1%

7.7%14.0%

7.8%

BuildingBrand of

Company/product

Enhancingcredibility

of companyproduct

Increasingsales/

revenue

Investorrelations

Savingcosts

Other

What Goals are Most Important to You?


10/38

0

100

60

80

40

20

BuildingBrand of

Company/

product

Enhancingcredibility

of company

product

Increasingsales/

revenue

Investorrelations

Savingcosts

Other

How Successful Were You at Reaching Your Goals?

68%

58%

72%

94%

83%

93%

32%

42%

28%

6%17%

7%


11/38

Types of Strategies (Generic)

and Their Effect on SalesPrograms


12/38


13/38

Build Strategy

Expand market

share in a high-

growth market

Harvest

Divest

Secure

Added

Distribution

Add new

customers

Provide high

presale

services

Provide

product& market

feedback

Focus on

volume

growth

Build current

relationships

Call on targeted

current

customers

Increase service

to current

customers

Call on

targeted new

customers

Focus on

account

penetration

Call on most

profitable

accounts only

Reduce overall

service levels

Reduce

inventory levels

Maintain

distribution

Invest as

little time as

necessary

Marketing

Strategies

Sales

Strategies

Hold Strategy

Maintain market

share at the

lowest costs

possible

Harvest Strategy

Reduce costs

and focus on

profit, not market

share

Divest Strategy

Reduce

inventory

at lowest cost

possible

Eliminate

services

Offer

exceptional

pricing

Focus on

one time

sales

Minimize

time

commitment

Figure 2-4: Business Portfolio Analysis and Sales Force Strategy


14/38

Sales Force Ranking and Sales Growth:Pharmaceuticals (1988-1990)

0

2

4

6

8

10

5 6 7 8

Low High

Sales Force Ranking

Growth


15/38

Sales Force Ranking and Sales Growth:Computers (1988-1990)

0

5

10

15

5 6 7 8

Low High

Sales Force Ranking

Growth


16/38

A More Detailed Look at

Marketing Strategy The Three Major Functions of

Marketing:

Segmentation Targeting

Positioning


17/38

Strategic ImplementationDecisions


18/38

1. What is the best way to segment the market?

2. What are the essential activities required by

each segment?

3. What group of go-to-market participants should

perform the essential activities?

4. W

hich face-to-face selling participants shouldbe used?

Steps in Developing a Go-to-Market Strategy


19/38

Figure 2-6 Essential Activities

Interest Creation

Purchase

Pre-PurchasePost-Purchase


20/38

Account Maintenance:

Continue high-quality serviceElectronic Data Entry (EDI)Prompt delivery

Enhance value propositionRelationshipsFriendship

Effectiveness Selling:

Solve and consultCooperationCustomization

IntegrationPartnership

Efficiency Selling:

Take ordersSecure distributionConsider self-ordering (lower price)

Targeted Selling:

Quick needs assessment and solutionExplain features and benefitsEconomic evaluation

Large

Small

Low Information,

Low Solution Needs

High Information,

High Solution Needs

BuyingProcess

Customer Sizeand

Opportunity

A Framework for Defining Essential Activities


21/38

Direct Sales

Force

Agents

Distributors

Retailers

Integrators Alliances

Advertising

Promotion

Direct Mail

Tele-

marketing

Internet

Direct Indirect

Non-Sales Force OptionsSales Force Options

Company

Customers and Prospects

Figure 2-7 Potential Go-to-Market Participants


22/38

Figure 2-8 Comparing Various Go-to-Market Alternatives

Advertising

Direct Mail

Internet

Telemarketing

Sales Force

Effectiveness

Efficiency

High Salesper Exposure

Low Costper Exposure


23/38

Customer Base

AccountTeams

GeographicSales Force

Direct Sales Force

Industry

Teams

OutboundInbound

Telemarketing Partners Internet

Go-to-Market Strategy: A Large Computer Manufacturer


24/38

Customer Base

AccountTeams

Direct Sales Force

Inbound

Telemarketing

Go-to-Market Strategy: A Large Chemical Company


25/38

Customer Base

AccountTeams


Direct Sales Force

Inbound

Telemarketing Partners

Go-to-Market Strategy: A Pharmaceutical Company


26/38

Customer Base

AccountTeams


Direct Sales Force

OutboundInbound

Telemarketing Internet

Go-to-Market Strategy: An Industrial Distributor


27/38

Figure 2-9 Product Development ManagementSubprocesses

Identify customer needs for etter solutions

Discovering and designing new product solutions

Developing new solution prototypes

Managing internal departmental priorities and involvement

Designing activities to speed-up development process

Launching new and redesigned offerings


28/38

Figure 2-10 Supply Chain Management Subprocesses

Selecting and managing supplier relationships

Managing in ound logistics

Managing internal logistics

Managingout ound logistics

Designing product assem ly and atch manufacturing

Managing process technology

Order, pricing, and terms management

Managing channel partners

Managing product installation and maintenance


29/38

Figure 2-11 Customer Relationship ManagementSubprocesses

Identifying high value prospects

Learning a out productusage and application

Developing and e ecuting advertising and promotion programs

Developing and e ecuting sales programs

Developing and e ecuting customer service programs

Acquiring and leveraging customer contact information systems

Managing customer contact teams

Enhancing trust and customer loyalty

Cross-selling and upsellingofofferings


30/38


31/38

Fig re 2-12 ales Force rogram

arketi g Objectives, trategy, a

trategy Im leme tation rogram

arketing Objectives, trategy, and

Strategy Im lementation rogram

Account elations i StrategyAccount elations i Strategy

DesiredSelling Actions

and e aviors

DesiredSelling Actions

and e aviors

Organizational StructureOrganizational Structure

Com etency Development rogramCompetency Development rogram

eaders ipSystemeaders ipSystem

Estimates ofsales

potential and

sales forecast

Estimates ofsales

potential and

sales forecast

Estimates ofsales force

size and budget

Estimates ofsales force

size and budget

Feedback


32/38

AccountRelationship

Strategy

How long is the selling cycle?

How much time is spenton customer need discovery? Will the offering e customized for each customer?

Will other functional areas e involved in the sale?

How much will we need to invest in the individual

customer relationship?

How easily can the customer switch to a competitor

once the relationship is esta lished?

Sales ForceSelling

Activities

What are their non-selling responsi ilities?

How much customer face-time will salespeople have?

Howwill sales leads e generated?

How much time will e spentwith new prospects? Howwill usiness with e isting customers e grown?

With whom in the customers organization will the

sales force interact?

What supportwill e needed to consummate a sale?

Howwill customers e serviced?

Sales Force Program Elements Cont.


33/38

Sales Force Program Elements Cont.

OrganizationalStructure

Will the sales force e specialized y product,

customer, or function?

How many salespeople will e needed?

What is the span of control for management?

How many levels of managementwill e needed?

Howwill territories y designed?

What is the location of salespeople and managers?

Will telemarketing support e needed?

E perience level of new salespeople? Length and purpose of initial training program?

Nature of continuing development program?

CompetencyDevelopmentProgram


34/38


35/38

Investment

bySupplier

Investment by Customer

Figure 2-13:A

lternative Types ofA

ccount Relationships


36/38


37/38

Traditio al R latio ips E t rprise Relatio ships

y Littlerecognitionofcreditfor terfor nce

y Recognitionof t erfor ncendtr ckrecord.

y Noresponsibilityforsuppliersprofitrgins

y Recognitionofsuppliersneedtoke fairprofit

y Littlesupportforfeedbackfromsuppliers

y Feedbackfromsuppliersencouraged.

y Noguaranteeofbusinessrelationshipbeyondthecontract.

y Expectationsofbusinessrelationshipbeyondthecontract.

y No erformanceexpectationsbeyondthecontract.

y Considerableperformanceexpectationsbeyondthecontract.

y Adversarial, ero-sumgame. y Cooperativeandtrusting,positive-sumgame.

Figure 2-14: Changes in Customer E pectations of Suppliers


38/38

Good

27%

air

10%

Poor

53%

VeryGood

10%

Partnering EffectivenessIndex

Date post:	10-Apr-2018
Category:	Documents
Upload:	ashish
View:	218 times
Download:	0 times

6593478 Ch02 Strategy and Sales Program Planning

Documents