1. 0 STRATEGIC SALES MANAGEMENT The world of selling must accommodate a dramatically changed world of buying

2. Territory Analysis n Why Do It? –To obtain thorough coverage of the market –To establish territory responsibilities –To evaluate Performance –To improve customer relations –To reduce cost/increase profitability –To allow better salesforce/customer matching

3. Target Account Strategy n Undifferentiated Account Approach TARGET ACCOUNTS SALES STRATEGY

4. Target Account Strategy n Account Segmentation Approach –Key Account –Profitability –Size –Potential SALES STRATEGY Account 1 Account 2 Account 3 Account 4

5. Expected Value Analysis n Determination of product potential on an account by account basis. n Estimates of Market Share and Probability are based upon the judgement of the salesperson and –Amount of past sales –Degree and kind of competition –Product,Price, and Service commitments –Economic conditions –Existing account relationships

6. Expected Value of an Account n EV= PPV x  (SES x PES) –EV=Expected value –PPV= Potential Product Volume –SES= Salesperson Estimated Share –PES= Probability of getting expected share

8. Expected Value n EV=PPV X Expected Share –$60,000 X.43 = $25,800

9. Sales Force Quality Impacts Financial Performance n Value of Quality Sales Force Increases as: –Customer pressure intensify –Sources of Product differentiation dry up –Supply Chain Functions become more integrated

10. Sales Strategy is most important when n Product is differentiated n Product is New n Product is late in life cycle n Product is undifferentiated Amount of Product Differentiation Product Life Cycle HighLow High Low

11. From Product Power to Customer Power n Over time sources of of MFG. Profitability change –Early one profits are proportional to account size n Consolidation in most customer industries has led to much more concentration at the top of the account triangle

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