Organizational Strategies and The Sales Function Module Three Organizational Strategies and The Sales Function

Organizational Strategy Levels Key Decision Areas Key Decision Makers ________ Strategy Corporate Mission SBU Definition SBU Objectives Corporate Management _______Strategy Strategy Types Strategy Execution SBU Management

Organizational Strategy Levels Key Decision Areas Key Decision Makers ________ Strategy Corporate Management Target Market Selection Marketing Mix Dev. Integrated Mkt Comm. _______ Strategy SBU Management Account Targeting Strategy Sales Channel Strategy Relationship Strategy

Definition of Strategic Business Units (SBUs) Cravens (1991) An _____ 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 __________ for all (or most) of the basic business functions." 4

SBU Objectives and the Sales Organization Compensation System Primary Sales Tasks Sales Organization Objectives Market Share Objectives _____ Build sales vol. Secure distrib. Prospective and new accounts Provide high service levels particularly pre-sales service Product/market feedback Salary plus incentive

SBU Objectives and the Sales Organization Compensation System Primary Sales Tasks Sales Organization Objectives Market Share Objectives ______ Maintain sales vol. Consolidate market position through concentration on targeted segments Secure additional outlets Call on targeted current accounts Incr. service levels to current accounts Call on new accounts Salary plus commission or bonus

SBU Objectives and the Sales Organization Compensation System Primary Sales Tasks Sales Organization Objectives Market Share Objectives _______ Reduce selling costs Target profitable accounts Service most profitable accounts eliminate unprofitable accounts Reduce service levels Reduce inventories levels Salary plus bonus

SBU Objectives and the Sales Organization Compensation System Primary Sales Tasks Sales Organization Objectives Market Share Objectives ____________________ Minimize selling costs and clear out inventory Dump inventory Eliminate service Salary

Business Strategy and the Sales Function Strategy Type Sales Force Role Pursue large customers Minimize cost Compete on price Seek customers who are low price shoppers _______________

Business Strategy and the Sales Function Strategy Type Sales Force Role Compete on non-price benefits Provide high quality customer service Seek customers who are not low price shoppers _______________

Business Strategy and the Sales Function Strategy Type Sales Force Role Serve a distinct target market not served well by others Provide high quality customer service Seek customers who are not low price shoppers _______________

Marketing Strategy and the Sales Function Advantages Only promotional tool that consists of personal communication between seller and buyer ______________ and has more impact Better timing of message delivery Ability to _________________________ Allows for sale to be closed Disadvantage __________________________ 9

Personal Selling-Driven vs Personal Selling-Driven vs. Advertising-Driven Marketing Communications Strategies Personal Selling When Message ________ is Important When ________________ is Important When ________________ the Sale When ________________ is Important When ________________ Advertising

Target Market Situations and Personal Selling A definition of the specific _____________ 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 10

Integrated Marketing Communications The __________________ of multiple marketing communications tools communicating a ________ message in the most effective and efficient manner.

The Sales Strategy Framework Account Salesperson 2

Organizational Buyer Behavior: Types of Organizations Major Category Types Business or Industrial Organizations ______: purchase products and services to produce other products and services ___________________: purchase products to incorporate into products _____________: purchase products to sell 4

Organizational Buyer Behavior: Types of Organizations Major Category Types Federal, State, and Local Government Agencies Government Organizations Public and Private Institutions Institutions 4

Organizational Buyer Behavior: Buying Situations __________________________ Routinized Response Behavior Limited Problem Solving Extensive Problem Solving 5

Organizational Buyer Behavior: Buying Center __________ 5

Organizational Buyer Behavior: Buying Process Phase 1: __________ Problem/Need Phase 2: Determine Item Specs/Quantity Needed Phase 3: _________________________ Needed Phase 4: Identify and Qualify Potential Sources Phase 5: _____________________ Proposals Phase 6: Evaluate Proposals/Select Suppliers Phase 7: ______________________ Phase 8: Performance Feedback/Evaluation

Personal and Organizational Needs Personal Goals Organizational Goals 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 8

Sales Strategy: Account-Targeting Strategy The _______________________ within a _________ market into categories for the purpose of developing __________ approaches for selling to each account or account group. 10

Sales Strategy: Relationship Strategy A determination of the type of __________ to be developed with different account groups. 10

Characteristics of Relationship Strategies Transaction Solutions Partnership Collaborative Goal Time Frame Offering Number of Customers 12

Sales Strategy: Selling Strategy Ensuring that accounts receive _____________________ in an effective and efficient manner. 10

Matching Selling and Relationship Strategies Commitment Cost to Serve High Low 15

Sales Strategy: Sales Channel Strategy The planned selling approach for each relationship strategy. The Internet Industrial Distributors Independent Representatives Team Selling Telemarketing Trade Shows 10

Sales Strategy: The Internet __________________________ Gather Information about Customers Conduct Surveys Obtain Feedback 10

Sales Channel Strategy: Industrial Distributors Have Their Own Sales Force May Represent One Manufacturer; Several Non-competing Manufacturers; Several Competing Manufacturers Normally Carry Inventory 17

Sales Strategy: Independent or Manufacturers’ Reps Sell _______________ products from non-competing manufacturers. Do Not Normally _________________ Paid for Performance __________________ over Selling Effort Reduced Access to Customer Information 10

Sales Strategy: Team Selling Three Selling Situations ________________ Selling ________________ Selling Situation Two Types of Team Selling 10

Sales Strategy: Telemarketing 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 10

Sales Strategy: Trade Shows Generate __________ ___________ New Products Introduce New Products ___________ Gather Competitive Information Service Existing Customers __________ Corporate Image 10