1. Understand key components and goals of CRM
Explain importance of market orientation and how it is fostered
Identify key steps in developing and implementing strategies
Describe role of personal selling in marketing strategy
Outline stages in developing strategic partnership relationships
Discuss actions salespeople can take to ensure long-term buyer-seller relationships

2. Customer Relationship Management (CRM)
Comprehensive business model for increasing revenues and profits by focusing on customers
A process tool to facilitate a customer-driven enterprise

3. Customer-Centric Cultures
Built around a “Partnership Model” where company and customers share risks and rewards
Selling is conducted as “customer business consultation”
Uses formalized customer analysis processes and agreements
Proactively educates customers about value chain and cost reduction opportunities
Focuses on continuous improvement principles stressing customer satisfaction

4. Objectives of CRM Customer Retention Customer Acquisition
Customer Profitability

5. Advantages of CRM Reduces advertising costs
Increases awareness of customer needs
Tracks effectiveness of promotional campaigns
Competition for customers based on service, not prices
Prevents over-spending on low-value clients, under-spending on high-value ones
Speeds time to develop and market a product
Improves use of customer channel

6. 3.1 Sales Process Software
CRM products - coordinate sales processes, improve bottom line
2001 – more than 55% CRM products failed to meet expectations
2007 – approximately 1/3 miss the mark
CRM software
Only as good as established procedures
Desktop or hosted server
Package selection
Company size
Needs
Budget
Source: “Making Sense of Sales,” BusinessWeek, Spring 2006,

7. Example of CRM Software Sales and Marketing Module
Sources: StromasoftCRM software,, Customer Support Helpdesk Module, Sales & Marketing Module, Copyright (©) 2007 StromaSoft Ltd
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8. Example of CRM Software Support Helpdesk Module
Sources: StromasoftCRM software,, Customer Support Helpdesk Module, Sales & Marketing Module, Copyright (©) 2007 StromaSoft Ltd
3-8

9. 10 Critical Questions in CRM
Customers
Who are our customers?
What do our customers want and expect?
What is the value potential of our customers?
The Relationship
What kind of relationship do we want to build?
How do we foster exchange?
How do we work together and share control?
Managerial Decision Making
Who are we?
How do we organize to move value closer to our customers?
How do we measure and manage our performance?
How do we increase our capacity for change?

10. 3.2 CRM Failures Often Management’s Fault
Lack of focus
No change management initiative
Minimal buy-in
Business unit silos
Complicated procedures
Poor training

11. Integrating Sales w/ Other Functions
CRM
Common
Cause
Cross-
functional
meetings
Sales’ adoption of marketing concepts
Hire excellent sales employees
Sales
Finance
R&D
Mfg
Mkg IT HR
Source: HR Chally Group (2007) The Chally World Class Excellence Research Report: The Route to the Summit. Dayton, OH: HR Chally Group.

12. 1900 1960 1980 2000+ Marketing Evolution Target Marketing
In the ‘60s, many firms began to apply the principles of segmentation to different customer groups
One-to-One Marketing
Technology allows firms to customize offerings to individual users
1900
1960
1980
2000+
Note to instructor – click on each year for marketing evolution details.
Mass Marketing
Evolved in the early 1900s and dominated marketing management for decades
Customer Marketing
In 1980, the focus shifted towards developing customer relationships
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13. Market Orientation Successful salespeople think beyond “selling”
Market-driven companies do better market sensing
Market-driven companies develop stronger relationships with customers and channels
Internal partnering a critical component

14. Strategy Development
Answers the most basic questions about an organization’s reason for being
Mission
Flow from the company’s mission, represent more specific
targets
Goals
Objectives
Note to instructor – mouse-over/click on pyramid for details
Specific, measurable, and realistically attainable
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15. Soul of Dell Statement of Dell’s corporate philosophy
Who we are, aspire to become
Guides actions
Basis for “winning culture’
Core elements focus on
Customers
Dell team
Direct relationship

16. SBU Strategy
How the business will compete in its industry to achieve sustainable competitive advantage (SCA)
SCA focuses on distinctive competencies
Porter’s Three Generic Strategies:
Low Cost
Differentiation
Niche

17. 3.3 HP’s New Simple Compaq HP’s dilemma HP’s solution
Compaq losing market share
Drop the brand?
HP’s solution
Reposition brand for future
Message – “Compaq just gets the job done.”
Design
Simple, minimalist
Monochromatic, smooth
No bells and whistles
Very functional
Source: Louise Lee, “Hewlett-Packard’s New, Simple Compaq,” BusinessWeek (August 16, 2007),

18. 3.4a Porter’s Typology Business Strategies Sales Force Implications
Low-cost Supplier
Large customers, prospects
Sell on price
Significant order-taking responsibilities
Differentiation
Sell non-price benefits
High-quality service
Low price-sensitivity customers
Niche (or focus)
Expert in target market operations and opportunities
Non-price benefits
Generic business strategies and their implications for the sales force
Source: Adapted from William L. Cron and Michael Levy, “Sales Management Performance Evaluation: A Residual Income Perspective,” Journal of Personal Selling &
Sales Management 7 (August 1987), pp. 57–66.
3.4a

19. 3.5
Steps in developing
and implementing
strategies

20. 3.6 Types of relationships between buyers and sellers
Source: Barton Weitz, Stephen Castleberry, and John Tanner, Selling: Building Partnerships, 6th ed. (New York: Irwin/McGraw-Hill, 2005).

21. Personal Selling’s Role in Market Exchanges
Definition - one-shot transactions occurring between a buyer and seller with limited thought of future consideration
Roles of salespeople
Create new value
Adapt
“Make the market”
Exit

22. Personal Selling’s Role in Functional Relationships
Definition - create a climate of cooperation, with open and honest communication
Roles of salespeople
Engender high level of personal trust in well managed business activities
Provide expertise for competitive advantage
Danger when one party in the relationship leaves

23. Personal Selling’s Role in Strategic Partnerships
Definition - long-term relationships where both parties make significant investments
Roles of salespeople
Direct communication with production, production designers, and others
Relationship manager and general manager
Work with clients large enough to make investments worthwhile

24. Relationship Development
Stage 1
Exploration
Stage 2
Expansion
Stage 3
Commitment
Determine value, build trust, set proper expectations, monitor
Generate repeat sales, full-line selling, cross-selling
Build loyalty, become a preferred supplier, engage in TQM
Note to instructor – click on circles to display activities within each stage
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25. Integrated Marketing Communication (IMC)
Integrates personal selling, advertising and other communications options
Advantages of selling in IMC
Face-to-face contact
More persuasive
More demonstrative
Customization opportunities
Disadvantages of selling in IMC
Limited ability to duplicate
More costly

26. Factors influencing the role of personal selling in a firm’s IMC strategy
3.7

27. 3.8 Illustrative factors that influence the design of IMC strategy
Source: Adapted from David W. Cravens and Nigel F. Piercy, Strategic Marketing, 8th ed. (New York: Irwin/McGraw-Hill, 2005), p. 348.

28. Customer Feedback
Maintaining customer loyalty is crucial for improving profitability
Loyal customers. . .
Tend to concentrate on purchases
Provide positive customer referrals
May pay premium prices for value they receive
Supplement satisfaction measures with examinations of customer behavior
Annual retention rate
Frequency of purchases
Percentage of the customer’s total purchases captured by the firm