Sales Management 4

1
Sales Management 4

• Strategic Roles
• Sales and Sales Management

2
Organizational Capabilities
External Emphasis
Internal Emphasis
Outside-In Process
Inside-Out Process
Spanning Process

• Market Sensing
• Customer Linking
• Channel Bonding
• Technology Monitoring

• Customer Order Fulfillment
• Pricing
• Purchasing
• Customer Service Delivery
• New Products/Service Development
• Strategy Development
• SALES

• Financial Management
• Cost Control
• Technology Development
• Integrated Logistics
• Manufacturing/ Transformation Processes
• Human Resources Management
• Environmental Health and Safety

3
Integrated Marketing

• Make sure the Four Ps match.
• If selling on price, cant have most expensive
  ingredients.
• Make sure all marketing communications are
  working together.
• Same message in ads, sales, literature, PR,
  promotions

4
General Business Strategies and Their
Implications
Type of Strategy
Sales Force Implications
PORTERS TYPOLOGY
______________
Aggressive construction of efficient-scale
facilities, vigorous pursuit of cost reductions
from experience, tight cost and overhead control,
usually associated with high relative market
share.
Servicing large current customers, pursuing large
prospects, minimizing costs, selling on the basis
of price, and usually assuming significant
order-taking responsibilities.
_______________
Creation of something perceived industrywide as
being unique. Provides insulation against
competitive rivalry because of brand loyalty and
resulting lower sensitivity to price.
Selling nonprice benefits, generating orders,
providing high quality of customer service and
responsiveness, possibly significant amount of
prospecting if high growth industry, selecting
customers based on low price sensitivity. Usually
requires a high quality sales force.
____________
Service of a particular target market, with each
functional policy developed with this target
market in mind. Although market share in the
industry might be low, the firm dominates a
segment within the industry.
To become experts in the operations and
opportunities associated with the target market.
Focusing customer attention on nonprice benefits
and allocating selling time to the target market.
5
Miles and Snow Typology
___________ Attempt to pioneer in product/market
development. Offer a frequently changing product
line and be willing to sacrifice short-term
profits to gain a long-term stronghold in their
markets.
____________ Offer a limited, stable product line
to a predictable market. Markets are generally
in the late growth or early maturity phase of the
product life cycle. Emphasis is on being the
low-cost producer through high volume
______________ Choose high growth markets while
holding onto substantial mature markets.
Analyzers are an intermediate type of firm. They
make fewer and slower product market changes than
prospectors, but are less committed to stability
and efficiency than defenders.
6
Prospector
Primary focus is on sales volume growth.
Territory management emphasizes customer
penetration and prospecting
7
Defender
Maintain the current customer base. Very little
prospecting for new customers is involved.
Customer service is emphasized along with greater
account penetration.
8
Analyzer
Must balance multiple roles servicing existing
customers, prospecting for new customers,
uncovering new applications, holding onto
distribution of mature products and support
campaigns for new products.
9
Marketing Strategy andthe Sales Function

• Advantages
• Only promotional tool that consists of personal
  communication between seller and buyer
• More credible and has more impact
• Better timing of message delivery
• Ability to tailor message to buyer
• Allows for sale to be closed
• Disadvantage
• High cost per contact

10
Advertising Relatively Important
Personal Selling Relatively Important
11
Sources of Increased Profit from Loyal Customers
Why loyal customers are more profitable
Contribution to profits
Price premium
Referrals
Lower costs Increased sales volume Initial sales
Cost of new customer
Years as a customer
12
Using the Internet in Sales

• Increase Reach
• Gather Information about Customers
• Showcase New Products
• Conduct Surveys
• Enhance Corporate Image
• Obtain Feedback
• Service Existing Customers

13
Industrial Distributors

• Have Their Own Sales Force
• May Represent One Manufacturer Several
  Non-competing Manufacturers Several Competing
  Manufacturers
• Normally Carry Inventory

14
Independent/Manufacturers Reps

• Sell complementary products from non-competing
  manufacturers.
• Do Not Normally Carry Inventory
• Paid for ____________
• Reduced __________over Selling Effort
• Reduced _______to Customer Information

15
Team Selling

• Two Types of Team Selling
• Multilevel Selling
• Major Account Selling

16
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

17
Trade Shows

• Generate ______
• Test Market New _________
• Introduce New ___________
• Close __________
• Gather Competitive ___________
• Service Existing Customers
• Enhance Corporate Image