Transcript Chapter 2 slides

Chapter 2
Strategic
Sales Force
Management
Strategy without tactics is the
slowest route to victory. Tactics
without strategy is the noise
before defeat.
YSun Tzu,
Chinese philosopher
McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Macroenvironmental forces:
Figure 2-1:
A Company’s
Complete
Marketing System
Physical environment
Demography
Economic conditions
Sociocultural factors
Political-legal factors
Technology
Competition
Company’s marketing mix:
Suppliers
Marketing
intermediaries
Product planning
Price structure
Distribution system
Promotional activities
Marketing
intermediaries
The
market
Nonmarketing resources in the firm:
Production
Financial
Personnel
Public image
Research & devel.
Location
2-2
The Marketing Concept

A philosophy: Achieving organizational goals depends on the
firm’s ability to identify the needs and wants of a target market,
and then to satisfy those needs and wants better than the
competition does.

Based on three fundamental beliefs
– Company planning and operations should be customer or market
oriented.
– Marketing activities in a firm should be organizationally
coordinated.
– The goal of the organization should be to generate profitable
sales volume over the long run.
2-3
Evolution of
Marketing Management

Production orientation
– Focus on mass-producing a limited variety of products for as
little cost as possible.

Sales orientation
– Age of the hard-sell.

Marketing orientation
– The marketing concept first emerges.

Relationship orientation
– A natural extension of the marketing-orientation stage.
– The buyer and seller commit to doing business over a long
time.
2-4
Evolution of Selling in the U.S.
(the first American salespeople)
Peddlers
Canvassers
Book
agents
Drummers
2-5
Figure 2-3
How do these
selling styles
depicted in this
1927 cartoon
relate to the four
stages in the
evolution
of marketing
management?
2-6
Relationship Marketing:
Four key issues
 Open
communication
 Empowering
 Customers
 Working
employees
and the planning process
in teams
– Total quality management
2-7
Teaching Teamwork

In your opinion, which one of these (if any) would be
most effective at teaching a salesperson how to be an
effective member of a selling team?
– Cooking class
– Drum circle
– Military exercise
– Outdoor adventure
– Ropes exercise
2-8
Integrating…
 …Marketing
and Sales
– Marketing executives  develop marketing
strategy
– Salespeople  implement the strategy in the field
 …Production
and Sales
– Production makes what Sales sells
 Close
integration / accurate forecasts needed, or else…
– Under-production  dissatisfied customers
– Over-production  excessive, costly inventory
2-9
Strategic Planning

Set
Objectives
Objectives are the broad
goals around which a

strategic plan is formulated.
Formulate
Strategies are the plans of
Strategies
action.

Tactics are the specific
activities that people must
perform in order to carry out
Develop Tactics
the strategy.
2-10
Company Strategy –
Marketing Objectives and Strategy
Company
Objectives
Marketing
Earn 20% ROI
Strategy
Increase marketing share 10%
Objectives
Increase market
share 10%
Strategy
Increase share of customer business
2-11
Marketing Strategy –
Sales Force Objectives, Strategy and Tactics
Marketing
Objectives
Increase market share 10%
Strategy
Increase share of customer business
Sales Force
Objectives
Increase share of
customer business
Strategy
Build long-term
customer relations
Tactics
Develop sales teams
Provide bonuses for greater customer share
2-12
Strategic Trends
 Internet
Selling
 Multiple
Sales Channels
 Multiple
Relationship Strategies
– Transaction selling  Consultative selling
 In
this era of global warming, toxic waste,
pollution, and other concerns, marketing
executives must act in a socially responsible
manner if they wish to succeed or even
survive.
2-13
Customer Relationship
Management
 CRM
practices
– Involve a company-wide software application utilizing
advanced computer- and Internet-technology.
– Aggregate all information about customers into a single
database.
– Provide salespeople/customers access to timely and
relevant information.
– Allow effective management of every aspect of the buyerseller relationship.
– Require training

Only effective if salespeople embrace it and are willing to use it.
2-14