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

2. 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

3. 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

4. Figure 2-3: Hierarchy of Sales Objectives
Corporate goals
Increase shareholder wealth by 10%
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

6. 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 2-5:

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

8. 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

9. 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

10. 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

11. 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

12. 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

14. 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

15. Figure 2-14: Partnering Effectiveness Index