BA 3750 SALES MANAGEMENT L.P. Chew INTRODUCTION TO ENVIRONMENT & STRATEGIC PLANNING Your Personal Selling Plan BA 3750 SALES MANAGEMENT L.P. Chew

The Marketing Process Target Consumers Product Place Price Competitors This CTR corresponds to Figure 2-5 on p. 45 and to material on pp. 44-45. Teaching Tip: This material previews the focus on later chapters. You may wish to show this CTR as an introduction to the following discussion on target consumers. The lecture information below is provided if you wish to cover the strategic background information prior to coverage of details. Target Consumers Product Place Price Promotion & Politics Implementation Marketing Planning Control Analysis Competitors Intermediaries Publics Suppliers Demographic- Economic Environment Technological- Natural Political- Legal Social- Cultural The Marketing Process This begins an extended discussion of planning, organization, and specific-actions that includes slide transparencies on the 4 Ps, factors affecting marketing strategy decisions, and a general outline of the contents of a marketing plan. These topics are covered in more detail on subsequent CTRs. Marketing Analysis (and Planning). Marketing must conduct a complete analysis of its situation and all relevant environmental influences. Further, marketing must provide each functional area of the company with the information from this analysis that affects their area-specific tasks. Selecting Target Markets. In evaluating analysis, it should become clear that the company cannot service each market opportunity equally well. Target market selection occurs by matching strengths and weaknesses identified in analysis to particular target markets. Marketing Implementation. Plans must be coordinated and launched with realistic logistical support if they are to succeed. Marketers must be able to translate plans into concrete action. Marketing Control. The need to measure, assess and evaluate performance all relate to control issues. These are discussed in more detail later.

Environment of Marketing & Sales Management 5 Parts of Environment Controllable Factors Uncontrollable Factors Organization’s Level of Success/Failure in Reaching Objectives Feedback Adaptation Controllable Factors Uncontrollable Factors Organization’s Level of Success Adaptation Feedback

Environment of Marketing & Sales Management (2) Uncontrollable Factors (3) Consumers (1) Organization’s Level of Success or Failure in Reaching Its Objectives Competition Controllable Factors Suppliers & Distributors B Government By Top Management A Economy Technology (5) Independent Media By Marketing Adaptation (4) Feedback A - Total offering of the organization B - Impact of uncontrollable factors

Types of Environments Macroenvironment refers to the broad demographic, societal, economic, political, and technological forces that an organization faces. Microenvironment refers to the forces close to an organization that have a direct impact on its ability to serve its customers

Top Management Controls 1. Line of Business General category Functions Geographic coverage Type of ownership Specific business 5. Corporate Culture Customer-service orientation Time orientation Flexibility Risk/innovativeness Centralized/ decentralized Interpersonal contact Promotions from within 4. Role of Other Business Functions Production Finance Accounting Engineering Purchasing Research & development 2. Overall Objectives Sales Profit Long-run existence Consumer acceptance 3. Role of Marketing Importance in company Functions Integration

Uncontrollable Factors Independent Media Print Television Radio News organizations Technology Advances Compatibility Acceptance Consumers Changing characteristics Interpersonal influences Decision process Organizations Factors Not Controlled by Top Management or Marketers Competition Structure Marketing strategies Domestic/foreign Company size Generic Channel Economy Rate of growth Costs Inflation rate Unemployment rate Suppliers & Distributors Characteristics Practices Resource shortages Government Federal State & local Politics

Marketing Directs 1. Selection of Target Market Size Characteristics Desires 3. Marketing Organizations Functions Types 5. Performance Assessment Day-to-day Periodic 2. Marketing Objectives Image Sales Profit Differential advantages 4. Marketing Mix Product Distribution Promotion Price

Key Environments Marketing Environment The actors and forces that affect a firm’s ability to build and maintain successful relationships with customers.

Key Environments Microenvironment: Actors close to the company Aspects of the marketing environment: Microenvironment: Actors close to the company Macroenvironment Larger societal forces

Strategic Planning Strategic planning is defined as: “The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”

Steps in the Strategic Planning Process

Strategic Planning Process Strategic Planning involves developing an overall company strategy for long-run survival and growth. This process involves: Defining a Mission: Statement of an organization’s purpose; should be market oriented. Setting Company Objectives: Supporting goals and objectives to guide the entire company. Designing a Business Portfolio: Collection of businesses and products that make up the company. Planning Functional Strategies: Detailed planning for each department designed to accomplish strategic objectives.

Managing the Marketing Effort

Elements of a Marketing Plan Executive Summary Current Marketing Situation Threats and Opportunities Objectives and Issues Elements of a Marketing Plan Marketing Planning This CTR relates to the material on pp. 51-52 and corresponds to the information in Table 2-2 on p. 51. Teaching Tip: If you are using a term marketing project in the course, you may wish to handout the assignment at this time. Marketing Strategy Action Programs Budgets Marketing Plan Components Executive Summary. This opening section provides a short summary of the main goals and recommendations for action. It should prepare the reader in anticipation of full explanations later. Teaching Tip: Hint for students: Write this section after completing the plan. Current Marketing Situation. This section describes the market and the company's position in it. A product review should compare all market entries. A distribution section reports sales trends and channel developments. Threats and Opportunities. This section distills environmental scanning efforts into an appraisal of how those forces and trends affect the company. Marketing plans should both identify and rank threats and opportunities. Objectives and Issues. This section begins the process whereby the manager translates analysis into terms for action. Based upon the preceding two steps the manager can set goals that will successfully implement company strategy. Marketing Strategies. Just as the company has strategies for growth, the manager must define the marketing logic or "game plan" to be used in running the specific business or product. The marketing plan here must provide specific strategies for target markets, the marketing mix, expenditures, and how strategies complement and support overall marketing goals. Action Programs. This section tells the who, what , when, and how much of the plan. Budgets. This section is essentially a projected profit-and-loss statement. You may wish to use it as part of a diagnostic if student plans are used with a simulation. Controls. All marketing plans must specify the means for evaluating their effectiveness. Financial goals by market by quarter are common. Controls

The Marketing Process Target Consumers Product Place Price Competitors This CTR corresponds to Figure 2-5 on p. 45 and to material on pp. 44-45. Teaching Tip: This material previews the focus on later chapters. You may wish to show this CTR as an introduction to the following discussion on target consumers. The lecture information below is provided if you wish to cover the strategic background information prior to coverage of details. Target Consumers Product Place Price Promotion & Politics Implementation Marketing Planning Control Analysis Competitors Intermediaries Publics Suppliers Demographic- Economic Environment Technological- Natural Political- Legal Social- Cultural The Marketing Process This begins an extended discussion of planning, organization, and specific-actions that includes slide transparencies on the 4 Ps, factors affecting marketing strategy decisions, and a general outline of the contents of a marketing plan. These topics are covered in more detail on subsequent CTRs. Marketing Analysis (and Planning). Marketing must conduct a complete analysis of its situation and all relevant environmental influences. Further, marketing must provide each functional area of the company with the information from this analysis that affects their area-specific tasks. Selecting Target Markets. In evaluating analysis, it should become clear that the company cannot service each market opportunity equally well. Target market selection occurs by matching strengths and weaknesses identified in analysis to particular target markets. Marketing Implementation. Plans must be coordinated and launched with realistic logistical support if they are to succeed. Marketers must be able to translate plans into concrete action. Marketing Control. The need to measure, assess and evaluate performance all relate to control issues. These are discussed in more detail later.

Developing a Personal Selling Plan 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique 7. Applying the Plan 6. Outlining Sales Tasks Feedback

Developing a Personal Selling Plan 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique 7. Applying the Plan 6. Outlining Sales Tasks Feedback

Personal Selling Plan: Setting Objectives Selling goals can be demand- and/or image-oriented. When image-oriented, they involve public relations. Although many firms have some interest in information, reminder, and image goals, the major goal usually is persuasion: converting consumer interest into a sale. 1. Setting Objectives

Assigning Responsibility Personal Selling Plan: Assigning Responsibility 2. Assigning Responsibility Sales Manager Responsibilities Understand goals and strategies of firm To determine sales philosophy To prepare sales forecasts To allocate resources To supervise sales personnel To synchronize selling tasks To assess all aspects of sales performance To monitor competition’s actions To maintain ethical standards To convey the image sought by firm 1. Setting Objectives

Personal Selling Plan: Budgeting 2. Assigning Responsibility 3. Establishing a Budget 1. Setting Objectives The sales-expense budget allots selling costs among salespeople, products, customers, and geographic areas for a given period. It is usually tied to a sales forecast. Budget items include sales forecast, overhead, sales force compensation, travel expenses, sales meetings, selling aids, and sales management costs.

Determining Types of Sales Positions Developing a Personal Selling Plan 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique 7. Applying the Plan 6. Outlining Sales Tasks Feedback

Determining Types of Sales Positions Personal Selling Plan: Sales Positions 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives Salespeople are often classified as order takers, order getters, or support personnel.

CONTRASTING (don’t forget missionary-support) Order Takers and Order Getters Generate customer leads and persuade consumers Process routine orders and reorders Provide clerical functions Are creative Handle high-priced/complex items and increase sales Basic Differ- ences Handle pre-sold items and maintain sales. Arrange displays, restock items, answer simple questions, & complete transactions Are less involved with routine tasks Require a lot of training and compensation Require little training and compensation Are highly expert and enthusiastic Have limited expertise and enthusiasm

Selecting a Sales Technique Personal Selling Plan: Sales Technique 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique Two basic techniques for selling are the canned sales presentation (memorized and repetitive), and the need satisfaction approach (that is customized to individual consumer attributes).

Personal Selling Plan: Sales Tasks 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives The selling process remembers the cost effective prospecting 5. Selecting a Sales Technique 6. Outlining Sales Tasks

Personal Selling Plan: Sales Tasks 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives The selling process outlines the sequential tasks sales personnel should perform. 5. Selecting a Sales Technique 6. Outlining Sales Tasks

Personal Selling Plan: Applying the Plan 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives Sales Management involves planning, implementing, & controlling the personal sales function. 5. Selecting a Sales Technique 7. Applying the Plan 6. Outlining Sales Tasks Feedback

Sales Management Responsibilities BUILDING AND MANAGING (Figure 1-5) Sales Management Responsibilities BUILDING AND MANAGING Strategic Planning Organizing the sales force Performance Evaluation Communication Coordination Integration Motivation and supervision Recruiting, selection, assimilation Training and development

Executive Ladder in Personal Selling (Figure 1-6) President Vice president of sales National sales manager Regional/divisional sales manager District sales manager Staff assistants available for advice and support at any step along the ladder. Sales supervisor Salesperson