Organizational Strategies and The Sales Function Module Three

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Learning Objectives 1.Define the strategy levels for multi- business, multi-product firms. 2.Discuss how corporate and business strategy decisions affect the sales function. 3.Lists the advantages and disadvantages of personal selling as a marketing communications tool.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Learning Objectives 4.Specify the situations in which personal selling is typically emphasized in a marketing strategy. 5.Describe ways that personal selling, advertising, and other tools can be blended into effective integrated marketing communications programs.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Learning Objectives 6.Discuss the important concepts behind organizational buyer behavior. 7.Define an account targeting strategy. 8.Explain the different types of relationships strategies. 9.Discuss the importance of different selling strategies. 10.Describe the sales channel strategies.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Learning Objectives 4.Specify the situations in which personal selling is typically emphasized in a marketing strategy. 5.Describe ways that personal selling, advertising, and other tools can be blended into effective integrated marketing communications programs.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Setting the Stage 1.The vignette refers to a dealer who uses a CRM application to keep track of 90,000 customers. What information does that dealer track? 2.How does management use that data? Customer Relationship Management (CRM) and the Sales Function: Deere & Company

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Corporate Strategy Corporate Mission SBU Definition SBU Objectives Corporate Management Sales Strategy Strategy Types Strategy Execution SBU Management Strategy Level Key Decision Areas Key Decision Makers Organizational Strategy Levels

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Strategy Level Key Decision Areas Key Decision Makers Marketing Strategy Corporate Management Target Market Selection Marketing Mix Dev. Integrated Mkt Comm. Business Strategy SBU Management Account Targeting Strategy Sales Channel Strategy Relationship Strategy Organizational Strategy Levels

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Corporate Strategy Development Process Analyze corporate performance and identify opportunities and threats Determine corporate mission and objectives Define strategic business units Set objectives for each strategic business unit

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Definition of Strategic Business Units (SBUs) Cravens (1991) An SBU is a single product or brand, a line of products, or a mix of related products that meets a common market need or a group of related needs, and the unit's management is responsible for all (or most) of the basic business functions."

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Salary plus incentive Prospective and new accounts Provide high service levels particularly pre- sales service Product/market feedback Build sales volume; Secure distribution Build SBU Objectives and the Sales Organization Compensation System Primary Sales Tasks Sales Organization Objectives Market Share Objectives

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Compensation System Primary Sales Tasks Sales Organization Objectives Market Share Objectives Salary plus commission or bonus Call on targeted current accounts Incr. service levels to current accounts Call on new accounts Maintain sales volume Consolidate market position through concentration on targeted segments Secure additional outlets Hold SBU Objectives and the Sales Organization

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Compensation System Primary Sales Tasks Sales Organization Objectives Market Share Objectives Salary plus bonus Service most profitable accounts eliminate unprofitable accounts Reduce service levels and/or inventories levels Reduce selling costs Target profitable accounts Harvest SBU Objectives and the Sales Organization

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Compensation System Primary Sales Tasks Sales Organization Objectives Market Share Objectives SalaryDump inventory Eliminate service Minimize selling costs and clear out inventory Divest or Liquidate SBU Objectives and the Sales Organization

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Business Strategy and the Sales Function Low-cost supplier Differentiation Niche Pursue large customers Minimize cost Compete on price Seek customers who are low price shoppers Compete on non-price benefits Provide high quality customer service Seek customers who are not low price shoppers Serve a distinct target market not served well by others Provide high quality customer service Seek customers who are not low price shoppers

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Personal Selling-Driven vs. Advertising-Driven Marketing Communications Strategies When Message Flexibility is Important When Message Timing is Important When Reaction Speed is Important When Message Credibility is Important When Trying to Close the Sale When Low Cost per Contact is Important When Repetitive Contact is Important When Control of Message is Important When Audience is Large Personal Selling Advertising

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Target Market Situations and Personal Selling Target Market: A definition of the specific market segment to be served Personal Selling-Driven Promotional Strategies are appropriate when: –The market consists of only a few buyers that tend to be concentrated in location –The buyer needs a great deal of information –The purchase is important –The product is complex –Service after the sale is important

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Integrated Marketing Communications The strategic integration of multiple marketing communications tools communicating a consistent message in the most effective and efficient manner.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Buying Situation Buying Center Organizational Buyer Behavior Account Buying Process Buying Needs Account Targeting Strategy Relationship Strategy Salesperson Sales Strategy Sales Channel Strategy Selling Strategy The Sales Strategy Framework

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Business or Industrial Organizations Major CategoryTypes Users: purchase products and services to produce other products and services Organizational Buyer Behavior: Types of Organizations Original Equipment Manufacturers (OEM): purchase products to incorporate into products Resellers: purchase products to sell

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Major CategoryTypes Government Organizations Federal, State, and Local Government Agencies Organizational Buyer Behavior: Types of Organizations Public and Private Institutions Institutions

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Organizational Buyer Behavior: Buying Situations Straight Rebuy Buying Situation –Routinized Response Behavior Modified Rebuy Buying Situation –Limited Problem Solving New Task Buying Situation –Extensive Problem Solving

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Organizational Buyer Behavior: Buying Center Initiators Users Gatekeepers Influencers Deciders Purchasers

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Organizational Buyer Behavior: Buying Process Phase 1: Recognize Problem/Need Phase 2: Determine Item Specs/Quantity Needed Phase 3: Specify Item Specs/Quantity Needed Phase 4: Identify and Qualify Potential Sources Phase 5: Acquire and Analyze Proposals Phase 6: Evaluate Proposals/Select Suppliers Phase 7: Selection of Order Routine Phase 8: Performance Feedback/Evaluation

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Control Cost in Product Use Situation Few Breakdowns of Product Dependable Delivery for Repeat Purchases Adequate Supply of Products Cost within Budget Limits Want a Feeling of Power Seek Personal Pleasure Desire Job Security Want to be Well Liked Want Respect Personal GoalsOrganizational Goals Personal and Organizational Needs

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Strategy: Account-Targeting Strategy The classification of accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Strategy: Relationship Strategy A determination of the type of relationship to be developed with different account groups.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function TransactionSolutionsPartnershipCollaborative Characteristics of Relationship Strategies GoalSell ProductsAdd Value Time Frame Short Long Offering Standardized Customized Number of Customers ManyFew

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Strategy: Selling Strategy A planned selling approach for each relationship strategy. Developing efficient and effective selling strategies is an important sales management task.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Matching Selling and Relationship Strategies TransactionSolutionsPartnershipCollaborative Commitment Cost to Serve High Low

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Strategy: Sales Channel Strategy Ensuring that accounts receive selling effort coverage in an effective and efficient manner. Sales channel options include: –The Internet –Industrial Distributors –Independent Representatives –Team Selling –Telemarketing –Trade Shows

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Channel Strategy: The Internet Used strategically to: Increase Reach Gather Information about Customers Showcase New Products Conduct Surveys Enhance Corporate Image Obtain Feedback Service Existing Customers

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Channel Strategy: Industrial Distributors Essentially, channel intermediaries that: Have Their Own Sales Force May Represent One Manufacturer; Several Non-competing Manufacturers; Several Competing Manufacturers Take Title to the Goods and Normally Carry Inventory

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Channel Strategy: Independent or Manufacturers’ Reps Outsourcing the selling effort to individuals or organizations that: Sell complimentary products from non-competing manufacturers. Do Not Take Title to the Goods or Carry Inventory Are Paid for Performance Have Control over the Selling Effort May Control Access to Customer Information

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Channel Strategy: Team Selling Multiple individuals from the selling organization working together to develop and expand relationships with one or more accounts. The salesperson typically coordinates the team’s selling efforts.

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Channel Strategy: Telemarketing Using the telephone as a means of customer contact. This low-cost method of customer relationship management may replace field sales force for certain accounts. When integrated with field sales force, activities include: –Prospecting, Qualifying Leads, Conducting Surveys –Taking Orders, Checking on Order Status, Handling Order Problems –Following Up for Repeat Business

IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A Trust-Based Approach Module 3: Organizational Strategies and the Sales Function Sales Channel Strategy: Trade Shows Generate Leads Test Market New Products Introduce New Products Close Sales Gather Competitive Information Service Existing Customers Enhance Corporate Image Events at which the company exhibits its wares. Used by organizations to: