Chapter 2: Strategy and Sales Program Planning

Slides:



Advertisements
Similar presentations
1. 2 Learning Objectives To understand: the characteristics of resources and capabilities that create a foundation for sustainable competitive advantage.
Advertisements

Fifth Edition 1 M a n a g e m e n t I n f o r m a t i o n S y s t e m s M a n a g I n g I n f o r m a t i o n T e c h n o l o g y i n t h e E – B u s i.
Design of Goods and Services
Internal Analysis.
Using MIS 2e Chapter 3 Information Systems for
Using MIS 2e Chapter 3 Information Systems for
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 4 Sales Force Organization Listen to the customer and act on what they.
Chapter 9 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Video Cases Video Case 1a: What Is Workday: Enterprise Software.
Part III SALES FORCE ACTIVITIES
Customer relationship management.
Strategic Planning and the Marketing Management Process
Part V SALES FORCE LEADERSHIP Chapter 12: Compensating Salespeople.
Chapter 2: Strategy and Sales Program Planning
Chapter 2: Strategy and Sales Program Planning
Learning Goals Understand the role of a company’s salespeople in creating value. Know the six major sales force management steps. Understand the personal.
Entrepreneurship I Class #4 Market Research and Marketing.
Chapter 2: Strategy and Sales Program Planning
Chapter 2: Strategy and Sales Program Planning
Chapter 2: Strategy and Sales Program Planning
Definition Salesperson
Copyright © 2005 Pearson Education Inc. Personal Selling and Direct Marketing Chapter 17 PowerPoint slides Express version Instructor name Course name.
Personal Selling, Relationship Building, and Sales Management
Doing An Internal Analysis
Organizational Strategies and The Sales Function
Strategic Plan Template.
Copyright © 2007 McGraw-Hill Ryerson Limited. Objectives To understand: The nature and advantages of the sales function in an organization. The variety.
SECTION 2: Digital Value Chain, E-Business Models Teemu Hakolahti
Chapter 2: Strategy and Sales Program Planning
4 P’s and Small ‘m’ Marketing Ted Mitchell. Big and Small ‘m’ Marketing Big M marketing is Strategic Marketing – Focus on Market Creation, goals and long.
Chapter 4 Analyzing the market, customers, and competition.
Chapter 2: Strategy and Sales Program Planning
Chapter 16 Managing Within Your Company
1 RELATIONSHIP SELLING Discuss the key differences between relationship selling and traditional selling. Copyright 2010 by Cengage Learning Inc. All Rights.
1-1 Strategic Planning and the Marketing Management Process Chapter 1 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights.
Kristina Marsh Marketing Flexibility, LLC
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved. I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m.
INTRODUCTORY COMMENTS MANAGEMENT OF INFORMATION TECHNOLOGY.
MARKETING PLAN ELEMENTS OF MARKETING PLAN PROCESS OF MARKETING PLANNING MARKET PLAN REPORT.
Management of Information Technology
Building Customer Relationship “Service is so great an opportunity for the company that our vision for the next century is that GE is a global service.
CHAPTER TWO Strategic Planning and Budgeting. STRATEGIC BUSINESS UNIT...is a single product or brand, a line of products, or a mix of related products.
14-1 Analysis of Operating Activities Electronic Presentation by Douglas Cloud Pepperdine University Chapter F14.
Part I THE BIG PICTURE Chapter 2: Strategy and Sales Program Planning.
1 Sales & Distribution Management (2005) Martin Khan Instructor Abdel Fatah Afifi MA&T, MBA, BA, ACPA, CPT 1 st Semester 2009/2010.
Chapter 14 Analysis of Operating Activities How do operations create value for our business?
MGT-519 STRATEGIC MARKETING AAMER SIDDIQI 1. LECTURE 22 2.
CHAPTER EIGHT Organization. ORGANIZATION IS IMPORTANT! l Organizational structure has a direct bearing on the success of sales strategies.
Copyright © 2008 by Robert B. Carton Value Systems, Value Chains and Value-Based Management The Essence of Organizational Performance Is the Creation of.
Part II SALES FORCE ACTIVITIES Chapter 3: Sales Opportunity Management.
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
Gerhard Steinke1 Enterprise Requirements Planning (ERP) Customer Relationship Management (CRM) Data Warehousing.
Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed Lecture 3b.
Chapter 1 Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies.
Personal Selling and Direct Marketing
Chapter 13 Financial performance measures for investment centres and reward systems.
Strategy and Sales Program Planning
Strategy and Sales Program Planning
Organizational resources and competitive advantage
Chapter 2: Strategy and Sales Program Planning
Personal Selling and Direct Marketing
Personal Selling and Direct Marketing
Product Management Training
4 Sales Force Organization Chapter
Organizational resources and competitive advantage
Distribution Strategy
Chapter 2.
CUSTOMER RELATIONSHIP MANAGEMENT CONCEPTS AND TECHNOLOGIES
E-Marketing 5/E Judy Strauss and Raymond Frost
Part III SALES FORCE ACTIVITIES
Presentation transcript:

Chapter 2: Strategy and Sales Program Planning Part I THE BIG PICTURE Chapter 2: Strategy and Sales Program Planning

Figure 2-1 The Sales Force Decision Sequence LEVEL 1 Top Management Decisions Business Strategy Marketing Strategy Go-to-Market Strategy Supply Chain Management (SCM) Customer Relationship Management (CRM) LEVEL 2 Implementation Decisions Product Development Management (PDM) Structure Competencies Leadership LEVEL 3 Sales Force Program Decisions Sales Process Activities Account Relationship Strategy Figure 2-1 The Sales Force Decision Sequence

Figure 2-2: Factors Influencing Strategic Management Environmental constraints Legal & regulatory Demographics Economic Conditions Technology Competitive conditions Sociocultural factors Resources Financial R&D Personnel Brand Equity Production Distinct competencies Marketing Financial Technology Information Strategic Management Planning Firm’s history management culture Figure 2-2: Factors Influencing Strategic Management 1

Figure 2-3: Hierarchy of Sales Objectives Corporate goals Maximize shareholder wealth Business unit objectives 12% revenue growth Grow pre-tax profits by 18% Marketing objectives Increase product A’s market share by 2 points Grow contributions after sales & marketing by 20% Sales department objectives Achieve 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 Salesperson objective Achieve 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 of 80% Figure 2-3: Hierarchy of Sales Objectives

What Goals are Most Important to You? 70 66.1% 60 50 40 31.9% 29.8% 30 20 14.0% 7.8% 7.7% 10 Building Brand of Company/ product Enhancing credibility of company product Increasing sales/ revenue Investor relations Saving costs Other

How Successful Were You at Reaching Your Goals? 100 94% 93% 83% 80 72% 68% 58% 60 32% 42% 28% 6% 17% 7% 40 20 Building Brand of Company/ product Enhancing credibility of company product Increasing sales/ revenue Investor relations Saving costs Other

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

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

Steps in Developing a Go-to-Market Strategy What is the best way to segment the market? What are the essential activities required by each segment? What group of go-to-market participants should perform the essential activities? Which face-to-face selling participants should be used?

Figure 2-6 Essential Activities Interest Creation Post-Purchase Pre-Purchase Purchase

A Framework for Defining Essential Activities Customer Size and Opportunity Large Small Buying Process Low Information, Low Solution Needs High Information, High Solution Needs

Customers and Prospects Figure 2-7 Potential Go-to-Market Participants Customers and Prospects Direct Sales Force Agents Distributors Retailers Integrators Alliances Advertising Promotion Direct Mail Tele- marketing Internet Direct Indirect Sales Force Options Non-Sales Force Options Company

Figure 2-8 Comparing Various Go-to-Market Alternatives Low Cost per Exposure Advertising Direct Mail Internet Telemarketing Efficiency Sales Force High Sales per Exposure Effectiveness

Customer Base Go-to-Market Strategy: A Large Computer Manufacturer Account Teams Geographic Sales Force Direct Sales Force Industry Outbound Inbound Telemarketing Partners Internet Customer Base

Customer Base Go-to-Market Strategy: A Large Chemical Company Account Teams Direct Sales Force Inbound Telemarketing Customer Base

Customer Base Go-to-Market Strategy: A Pharmaceutical Company Account Teams Geographic Sales Force Direct Sales Force Inbound Telemarketing Partners Customer Base

Customer Base Go-to-Market Strategy: An Industrial Distributor Account Teams Geographic Sales Force Direct Sales Force Outbound Inbound Telemarketing Internet Customer Base

Figure 2-9 Product Development Management Subprocesses Identify customer needs for better 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

Figure 2-10 Supply Chain Management Subprocesses Selecting and managing supplier relationships Managing inbound logistics Managing internal logistics Managing outbound logistics Designing product assembly and batch manufacturing Managing process technology Order, pricing, and terms management Managing channel partners Managing product installation and maintenance

Figure 2-11 Customer Relationship Management Subprocesses Identifying high value prospects Learning about product usage and application Developing and executing advertising and promotion programs Developing and executing sales programs Developing and executing customer service programs Acquiring and leveraging customer contact information systems Managing customer contact teams Enhancing trust and customer loyalty Cross-selling and upselling of offerings

Three Steps in Leveraging the Customer Base From P&L to balance sheet: Customers viewed as assets CRM;s Task: To increase shareholder value by leveraging the customer base. Focus on understanding cash flow effects and risk management Shareholder Value Driver of Cash Flow & EVA CRM integrated in the business process and yearly planning process Improving the profitability of customers seen as a driver of business profit Focus on customer selection Business Driver of Profits CRM viewed as a tool to achieve a bigger customer share through cross-selling and up-selling Typical in multi-product, multi-divisional environments Focus on account planning and organizational alignment Sales Driver of Revenue

Sales Force Program Elements – Cont. Account Relationship Strategy How long is the selling cycle? How much time is spent on customer need discovery? Will the offering be customized for each customer? Will other functional areas be 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 established? What are their non-selling responsibilities? How much customer face-time will salespeople have? How will sales leads be generated? How much time will be spent with new prospects? How will business with existing customers be grown? With whom in the customer’s organization will the sales force interact? What support will be needed to consummate a sale? How will customers be serviced? Sales Force Selling Activities

Sales Force Program Elements – Cont. Organizational Structure Will the sales force be specialized by product, customer, or function? How many salespeople will be needed? What is the span of control for management? How many levels of management will be needed? How will territories by designed? What is the location of salespeople and managers? Will telemarketing support be needed? Experience level of new salespeople? Length and purpose of initial training program? Nature of continuing development program? Competency Development Program

Sales Force Program Elements – Cont. Leadership Program Mix of salary, bonus, and commission compensation? Total compensation level? What additional incentive programs will be needed? What benefits will be needed? Use of quotas? How much will be spent on sales meetings? Behavioral-based evaluation metrics? Performance-based evaluation metrics? Required sales force information system?

Figure 2-13: Alternative Types of Account Relationships Investment by Supplier Enterprise Relationship Consultative Relationship Transactional Relationship Investment by Customer Figure 2-13: Alternative Types of Account Relationships

Different Sales Orientations Solutions to your needs “Solution provider” Function/ department Product and service solutions to customer needs Understanding the customer’s needs Solution Sales Product Sales Impact on your business results “business consultant” All levels Valuable solutions to support competitive advantage Driving customer profits and EVA Value Sales Sales Argument Best products “Product Expert” Narrow Space (e.g., purchasing) Best products with a competitive price Product excellence and/ or cost leadership Profile of Sales Customer Contacts Offering Success Factors

Figure 2-14: Changes in Customer Expectations of Suppliers

Partnering Effectiveness Index