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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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
_______________

10. 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
_______________

11. 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
_______________

12. 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

13. 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

14. 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

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

16. The Sales Strategy Framework
Account
Salesperson 2

17. 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

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

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

20. Organizational Buyer Behavior: Buying Center
__________ 5

21. 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

22. 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

23. 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

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

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

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

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

28. 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

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

30. 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

31. 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

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

33. 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

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