Part I THE BIG PICTURE

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Part ITHE BIG PICTURE

• Chapter 2
• Strategy and Sales Program Planning

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The natural progression

• How to make sales force and sales program decision

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LEVEL 1 Top Management Decisions
Business Strategy
Marketing Strategy
Figure 2-1 The Sales Force Decision Sequence
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Business Strategy
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Figure 2-2 Factors Influencing Strategic
Management
Strategic Management Planning
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Marketing Strategy
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Figure 2-3 Hierarchy of Sales Objectives
Major account objective Achieve sales revenues of
95,000 in product A Obtain an average gross
margin of 80
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A Look into What Companies Want . . . .
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What Goals are Most Important to You?
70
60
50
40
30
20
10
0
Building Brand of Company/ product
Enhancing credibility of company product
Increasing sales/ revenue
Investor relations
Saving costs
Other
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How Successful Were You at Reaching Your Goals?
100
94
93
83
80
72
68
58
60
40
20
0
Building Brand of Company/ product
Enhancing credibility of company product
Increasing sales/ revenue
Investor relations
Saving costs
Other
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Types of Strategies (Generic) and Their Effect on
Sales Programs
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Build Strategy Expand market share in a
high-growth market
Harvest
Hold Strategy Maintain market share at the
lowest costs possible
Harvest Strategy Reduce costs and focus on
profit, not market share
Divest Strategy Reduce inventory at lowest
cost possible
Marketing Strategies
Divest
Sales Strategies
Figure 2-4 Business Portfolio Analysis and
Sales Force Strategy
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Sales Force Ranking and Sales Growth
Pharmaceuticals (1988-1990)
Growth
Low
High
Sales Force Ranking
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Sales Force Ranking and Sales Growth Computers
(1988-1990)
Growth
Low
High
Sales Force Ranking
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A More Detailed Look at Marketing Strategy

• The Three Major Functions of Marketing
• Segmentation
• Targeting
• Positioning

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Strategic Implementation Decisions
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Steps in Developing a Go-to-Market Strategy

1. What is the best way to segment the market?
2. What are the essential activities required by
   each segment?
3. What group of go-to-market participants should
   perform the essential activities?
4. Which face-to-face selling participants should be
   used?

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Figure 2-6 Essential Activities
Interest Creation
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A Framework for Defining Essential Activities
Customer Size and Opportunity
Large
Small
Buying Process
Low Information, Low Solution Needs
High Information, High Solution Needs
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Figure 2-7 Potential Go-to-Market Participants
Customers and Prospects
Company
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Figure 2-8 Comparing Various Go-to-Market
Alternatives
Low Cost per Exposure
Efficiency
Sales Force
High Sales per Exposure
Effectiveness
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Go-to-Market Strategy A Large Computer
Manufacturer
Customer Base
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Go-to-Market Strategy A Large Chemical Company
Customer Base
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Go-to-Market Strategy A Pharmaceutical Company
Customer Base
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Go-to-Market Strategy An Industrial Distributor
Customer Base
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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
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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
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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
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Three Steps in Leveraging the Customer Base
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Sales Force Program Elements Cont.

• What are their non-selling responsibilities?
• How much customer face-time will salespeople
  have?
• How will sales leads be generated?
• How much time will be spent with new prospects?
• How will business with existing customers be
  grown?
• With whom in the customers organization will the
  sales force interact?
• What support will be needed to consummate a sale?
• How will customers be serviced?

Sales Force Selling Activities
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Sales Force Program Elements Cont.
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Sales Force Program Elements Cont.
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Figure 2-13 Alternative Types of Account
Relationships
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Different Sales Orientations
Product Sales
Sales Argument
Profile of Sales
Customer Contacts
Offering
Success Factors
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Figure 2-14 Changes in Customer Expectations of
Suppliers
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Partnering Effectiveness Index