Part One: Strategic Planning Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Introduction to Sales Management Chapter 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Learning Objectives Define strategy hierarchy and understand how sales and marketing strategies affect overall strategy Identify different types of selling strategies and how the selling process varies Describe the sales management process and responsibilities and activities of sales managers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

The nature of sales ”Nothing happens until someone sells something!” Many people beleive sales profession is NOT a noble position to hold Professionel buyers know better: They rely on salespeople to bring them solutions to the buseness problems that challenge them

What Being a Sales Manager Means Coaching Coaching salespeople so they can improve Developing Developing strategies and delegating the responsibility for implementation to others Motivating Figuring out how to motivate people, some who are older than you Convincing Convincing others that what is right for the sales force is right for their departments, too Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Establishing the Parameters of the Firm’s Strategy: The Mission Statement A mission is a set of objectives Summarizing the goals is called a mission statement A goos mission statement serves as a standard against which the decisions and actions employees take can be sompared Once the mission´s objectives are set – strategy can be created Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Sample Mission Statements Everything we do is inspired by our enduring mission: To Refresh the World . . . in body, mind, and spirit To Inspire Moments of Optimism . . . through our brands and our actions To Create Value and Make a Difference . . . everywhere we engage The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit Coca-Cola Southwest Airlines Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

The Strategy Hierarchy Corporate strategy encompasses plans and goals for the entire organization Address questions such as what markets and sourcing options company should engage Ex: hire sales force vs. use distributors Ex: outsource mfg and focus internally on marketing Business units create their plans to support corporate strategy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

The Strategy Hierarchy Corporate Strategy Marketing Strategy Sales Strategy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Creating a Marketing Strategy A. Markets What markets do we serve with what products? B.Relationships What types of relationships do we form and with whom? C.Investment What level of investment will be required, and how will we locate and allocate the needed resources? D.Objectives What are the detailed objectives and action plans? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

A. Markets: What Markets Do We Serve with What Products? Find a sustainable competitive advantage Something that gives a company an edge in the market over time! Need expertise, technology or a patent Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Markets Product-Market Grid Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

B. Relationships: What Types of Relationships Do We Form and with Whom? Strategic plan considers network of relationships (Supply Chains) Relationship with customers is most important 1. A service dominant logic: advantage is often a function of the quality of relationships 2. Customers’ lifetime value is worth more than the average single purchase Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

B. Relationships: Customer Relationship Management (CRM): Key Terms 3. CRM: identifying and grouping customers to best acquire, retain, and grow customers Sales and marketing teams are responsible for CRM Customer acquisition strategy: plan to obtain new customers Customer retention strategy: plan designed to keep customers Growth strategy: plan designed to increase sales to the same customers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

C. Investment: What Level of Investment Will Be Required, and How Will We Allocate the Needed Resources? Money, human or social capital Human capital decisions include: Determining number of salespeople What skills and experience they must have What training they require Other decisions include: Whether to hire telephone prospectors or to outsource Who handles customer service (a sales rep or a customer service rep) Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

D. Objectives: What Are the Detailed Objectives and Action Plans? SMART format for establishing objectives S pecific M easurable A chievable, yet challenging R ealistic T ime-based Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Selling Approaches Finish sale as quickly and as easily as possible Transactional Finish sale as quickly and as easily as possible Key to success is making as many calls as possible to as many people as possible Affiliative Based on the friendship between the salesperson and the individual buyer Problem Solving or Consultative Identify and solve a client’s problems Also called needs-satisfaction selling or problem/solution selling Enterprise Business-to-business (B2B) concept Based on not only person-to-person relationships but on company-to-company relationships Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

The Selling Process: 8 Steps Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Selling Process vs. Selling Approach Transactional Prospecting Affiliative Consultative Closing Presenting Enterprise Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Assignment 1: Give a detailed description of the differences. Which pros and cons do you find to be the most important?

Sales Leaders Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Sales Executive vs. Sales Manager Duties Activity Sales Executive Sales Manager Plan Set overall sales targets for each product Set quotas for each salesperson for each product Organize Decide what type of people to hire for sales positions Interview and hire specific people for sales positions Implement Determine the compensation plan Identify each person’s motivators and find ways to reward good performance for each person Monitor Track sales by region; take corrective action such as additional training if sales are too low Observe each salesperson’s actions in the field and offer suggestions for their improvement Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.