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Master’s Program in Sales Management STRATEGY AND ALIGNMENT
| Date post: | 01-Dec-2014 |
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Business |
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Master’s Program in Sales ManagementSTRATEGY AND ALIGNMENT
Nick’s Bio - Highlights Career:
ComputerLand Canada◦ 8 Years in Sales and Sales Management◦ Director of Marketing
Softchoice Corporation◦ VP of Sales◦ VP of Marketing◦ SVP of HR◦ SVP of Business Development
CultureByBrand
Personal:
Volunteering◦ Led teams to Ghana, Rwanda, Bali,
Sri Lanka, Kenya, Uganda and Guatemala
◦ Board Member for The Strongest Oak
Fitness◦ Master’s Swim Club member for 22
years◦ Club President
Married with one daughter
AgendaContext
Corporate Strategy Fundamentals
The Importance of Culture in Differentiation
Aligning Marketing Strategy and Sales
Landing Strategy in Value Propositions
Elements of Sales Strategy
Managing Leading Indicators
Conclusion
Two ways to drive company financials:
Decrease Costs
Increase Revenue
Leverage (Creates Financial Health)
Revenue
Expenses
Productivity
What Challenges are you Facing Today?Internally and Externally
Corporate
Strategy
IT IS ABOUT WINNING NOT COMPETING
Do you have a Strategy?
Are you growing faster than your competition?
Strategy
DifferentiationFocus (Choices)Value-Based PositioningAlignment
Operational ExcellenceTacticsA BudgetProduct Strategy
Examples Dell (circa 1990)
◦ Cut out the Middleman◦ Low Cost◦ Just in Time Manufacturing
Apple◦ Beautiful design◦ Revamp ecosystems◦ Fun, Utility
Tim Horton’s◦ Soup and Sandwiches◦ Always Fresh coffee◦ Homestyle lunches
What is your Strategy?
What is unique about what you offer?
Is there a unique focus that your company has?
Are your resources and processes aligned to enable your strategy?
Strategy Canvas
Strategy Canvas
Time to Practice (strategycanvas.org)Pick one of your companies
Inform the GroupWhat do you do?Who are your customers?What makes you different
Create the Factors of Competition for your industry
Plot your company on the Strategy Canvas
Plot at least one competitor
Pick a presenter
Time: 45 minutes
Groups
Group 1 Group 2 Group 3 Group 4Patrick Graham Kristen Randall Cheryl Rose David GrinsteadBeth Gibbs-Bartel Francois Bosman Patti Anderson Marc BlanchetteJohn Connors Shaun Furneaux Stephen Miller Carolina Suarez-MaslankyCraig Gleason Anthony Cianciotta John Cassidy
What did we learn?Is your company differentiated?
Categories of Value
What We Offer What OurCompetitors Offer
What a CustomerWants
A
C
B
D
E
Airline Example:A. Safety
Route SelectionSchedule options
B. Alliance PartnersC. Friendly Service
SpeedD. Frequent Flier Miles
Seat SelectionE. Car Rental Discounts
Activity Map(Alignment of all Resources)
How you do it differentiates you!
Four Actions Framework Break the Trade-off Between Low Cost and Differentiation
Eliminate Create
Raise
Reduce
Which Factorsshould be reducedwell below theIndustry’s standard?
Which Factorsshould be createdthat the industry Has never offered?
Which Factors thatthe industry haslong competed on should be eliminated?
Which Factorsshould be raisedWell above theIndustry’s standard?
NewValue Curve
Four Actions Framework(Southwest Airlines) Break the Trade-off Between Low Cost and Differentiation
Eliminate Create
Raise
Reduce
Which Factorsshould be reducedwell below theIndustry’s standard?
Which Factorsshould be createdthat the industry Has never offered?
Which Factors thatthe industry haslong competed on should be eliminated?
Which Factorsshould be raisedWell above theIndustry’s standard?
NewValue Curve
SpeedFriendly Service
Seat Selection,Lounges, Meals, Frequent Flyer
Strategy AND Execution
95% of employees cannot articulate their company’s strategy
2/3 of IT and HR initiatives do not support corporate strategy
Strategy is not cascaded to Marketing, Sales, etc.
DifferentiatedStrategy
ExecutionC M
Culture
Values Drive Culture
Values Behaviours
Culture Brand
Me
We
Internal External
Example – Zappos
What is your Culture? Is it Unique?
What are your Company’s Values?
What Behaviours do you manage?
When Sales People are destructive to your culture what do you do?
Group Work (New Groups of 5)
Step 1:
Review the Values and Culture of your key competitor◦ Careers section of their website or About Us
Step 2:
Identify where you sound the same and where you sound different
Step 3:
Share with your team how your culture seems unique and different
Step 4:
Get feedback from the team on making this more VIVID
What did we learn?How does your culture help you to differentiate?
Marketing
Strategy
TURNING CORPORATE STRATEGY INTO ACTION
Marketing What is the Role of Marketing?
What is the Role of Marketing in your company?
Your company has a finite amount of $$ that it is able to spend on customer acquisition
◦ How much should be spent on marketing?◦ How much should be spent on sales?◦ What is the optimal mix for your industry? For your strategy?
• Revenue Growth• SGA as % or
RevenueKPI • Cost of Customer Acquisition
• Business MixKPI• Sales % of Plan• Growth Rate• Sales Comp as % of
Revenue KPI
• Customer Retention
• Customer Satisfaction
KPI
Planning
Strategic Plan
Marketing Plan Sales Plan Customer
Plan
VisionOverall Business View
3-5 Year HorizonFinancial GoalsCompany StructureLeverageInvestment
Market-Centric- 1 Year HorizonWhat Segments?What Offers?What Competition?DifferentiationMarketing Spend
Execution-Centric- 1 Year HorizonTerritoriesCoverageSales CompBusiness MixBiz plan for each market
Customer-Based- Quarterly or AnnuallyCustomer Value PropositionGrowth GoalsObjectives
Marketing Plan Elements
Section 1: Market Analysis
Section 2: Situation Analysis
Section 3: Marketing Strategy
Section 4: Implementation
Section 5: Financial Summary - Outcomes
Marketing StrategyWhat are
we Selling?
• Products• Services• Mix and Lifecycle• Portfolio Analysis
Who do we sell it
to?
• By Product• By Segment• By Geography• By Channel
Value Proposition
• Pricing Strategy• Margin Objectives• Angel Customers• Demon Customers
How do we Sell it?
• Sales Force• Social Media Plan• Website • Advertising
Value Propositions
Psychological Value
- Service- The
Experience
Value Proposition (Creating Value)
Technical Value
- Better Product
- Key Features
Economic Value
- ROI- Productivity
$$
The Marketplace
Are all Customers the Same? Is your Market Diverse?
Segment Specific Value Props
Which slice of the marketdo you wish to serve?
Value Propositions At our company we value ______________________________
This means we ______________________________
We seek to help Customers who ______________________________
Unlike our Competitors we ______________________________
Answering these questions:
Why should someone purchase your offering?
Why should someone purchase your offering instead of your competitors?
What is most worthwhile for someone to keep in mind about your offering?
Exercise - WorkshopSame Groups as before and Same Company
What are the Functional, Economic and Psychological areas of Value Creation? (where is the primary focus?)
Compare Value Proposition areas to Differentiation areas on the Strategy Canvas
Are there any key areas of focus? (Customer Segments)
Present the re-worked Value Proposition statement for your company
30 minutes
Group 1 Group 2 Group 3 Group 4Patrick Graham Kristen Randall Cheryl Rose David GrinsteadBeth Gibbs-Bartel Francois Bosman Patti Anderson Marc BlanchetteJohn Connors Shaun Furneaux Stephen Miller Carolina Suarez-MaslankyCraig Gleason Anthony Cianciotta John Cassidy
What Did We Learn?How helpful was it to have people who didn't understand your industry asking questions?
Can you drive a preference for your company?Is every customer a good customer?
What can you apply when you get back?
Sales Strategy
What Do We Manage?
Sales Management
Representatives and Territories
Accounts Opportunities
Funnels andForecasts
Elements of Sales Strategy
Value Proposition
Customer Segmentation
Coverage/ Territories
Use of Multiple Sales
Channels
Sales Competencie
sActivities for Sales People
Sales Management
Sales Incentives
EfficiencyProductivity
Winning
Recommendation1. Workshop all elements as part of your next fiscal year planning cycle
2. Work in tandem with Marketing
3. Plan changes well in advance
Leading Indicators
Lagging Indicators
Examples of Lagging Indicators% of plan
Customer Satisfaction
On-time Delivery
Market Share
Win-Loss Ratios
Customer Retention
Customer Profitability
What do these things have in
common?
Leading Indicators
Examples of Leading IndicatorsNumber of Sales People Trained/Certified
Number of prospects identified
Number of customer appointments each month
Number of Demonstrations completed
Number of prospects touched in Seminars
Size of the Sales Pipeline
Sales Cycle
Does The Rep know how to sell
the product?
Do we have any
identified suspects?
Have we had
technical people on
site?
Have we done a
proof of concept?
Have we presented
an ROI Analysis?
How about you?“ When we get technical people onsite we win”
“ When we do a demo we win”
“ When we present ROI cases we win”
Group WorkBreak into groups of four
Share your leading indicators
Discuss how you could measure at least one new leading indicator effectively (Make sure it is Strategically Aligned!!)
20 minutes
Group 1 Group 2 Group 3 Group 4John Cassidy Carolina Suarez-Maslanky Marc Blanchette Kristen RandallAnthony Cianciotta Stephen Miller Patti Anderson David GrinsteadCraig Gleason Shaun Furneaux Francois Bosman Cheryl Rose
John Connors Beth Gibbs-Bartel Patrick Graham
What did we learn?How do Leading Indicators help you to execute strategy?
Glancing BackContext
Corporate Strategy Fundamentals
The Importance of Culture in Differentiation
Aligning Marketing Strategy and Sales
Landing Strategy in Value Propositions
Elements of Sales Strategy
Managing Leading Indicators
Conclusion
© 2 0 1 3 B Y N I C K F O S T E R O N B E H A L F O F S C H U L I C H E X E C U T I V E E D U C A T I O N C E N T R E ( S E E C ) . A L L R I G H T S R E S E R V E D . N O P A R T O F T H I S P U B L I C A T I O N M A Y B E R E P R O D U C E D , S T O R E D I N A R E T R I E V A L S Y S T E M , O R T R A N S M I T T E D I N A N Y F O R M O R B Y A N Y M E A N S , E L E C T R O N I C , M E C H A N I C A L , R E C O R D I N G , P H O T O C O P Y I N G O R O T H E R W I S E , W I T H O U T W R I T T E N P E R M I S S I O N O F T H E C O P Y R I G H T H O L D E R .
