Presentation on theme: "Chapter 2: Strategy and Sales Program Planning"— Presentation transcript:
1 Chapter 2: Strategy and Sales Program Planning Part I THE BIG PICTUREChapter 2:Strategy and Sales Program Planning
2 Learning Objectives Describe the major elements of business strategy. State the basic elements of strategic marketing planning.Explain what is meant by strategic implementation process decisions.Describe the purpose of a sales force program and lists its major elements.Tell What is an account relationship strategy is and explain its purpose.
3 Chapter Outline Business Strategy and Marketing Strategy. Factors Influencing Strategic Management.Business Strategies.Go to Market Strategy.Product Development Management (PDM).Supply Chain Management (SCM).Customer Relationship Management (CRM).Sales Force Program Decisions.
4 Figure 2-1 The Sales Force Decision Sequence LEVEL 1TopManagementDecisionsBusinessStrategyMarketingStrategyGo-to-MarketStrategySupply ChainManagement (SCM)CustomerRelationshipManagement (CRM)LEVEL 2ImplementationDecisionsProduct DevelopmentManagement(PDM)StructureCompetenciesLeadershipLEVEL 3Sales ForceProgramDecisionsSales ProcessActivitiesAccount RelationshipStrategyFigure 2-1 The Sales Force Decision Sequence
5 Efficiency & Effectiveness Efficiency - getting the most output from the least amount of inputs“doing things right”concerned with meansEffectiveness - completing activities so that organizational goals are attained“doing the right things”concerned with endsEffectiveness and efficiency are interrelated and sometimes overlapped.
6 Business Strategy:Business Strategy involves defining and articulating an overall business mission, developing specific business goals, and designing a strategy for achieving these goals.
7 Marketing Strategy:Marketing Strategy is the set of integrated decisions and actions a business undertakes to achieve its marketing objectives. Marketing Strategy decisions are related to market segmentation & target marketing, as well as the development of a positioning strategy.
8 Segmentation & Target Marketing Market Segmentation involves aggregating customers into groups that (1) Have one or more common characteristics, (2) Have similar needs, and (3) Will respond similarly to a marketing program.Target Marketing refers to the selection and prioritizing of segments to the company that will market.
9 Positioning StrategyPositioning strategy is developed and implemented based on product, price, distribution, and promotion decisions.Positioning occurs in the mind of the consumer and refers to how the consumer perceives the product, brand, and company vis-à-vis competitors.
10 Positioning StrategyThe fundamental questions that a customers ask about brands are:Who are you? (brand identity)What are you? (brand meaning)What do I think or feel about you? (brand responses)What kind and how much association would I like to have with you. (brand relationship)
13 Go to Market Strategy:Go to Market Strategy is concerned with answering one question which is; How will customers will be accessed?A Go to Market Strategy defines who will perform marketing activities and for which customers.
14 Steps in Developing a Go-to-Market Strategy What is the best way to segment the market?What are the essential activities required by each segment?What group of go-to-market participants should perform the essential activities?Who face-to-face selling participants should be used?
15 Go to Market StrategyTo determine a Go to Market Strategy, an important decisions should be taken in these three areas:Segmenting the Market.Sales Process Activities.Go to Market Participants.
17 Interest Creation Activities It include all the ways that the customers can learn about the benefit of the product and the company:Prospecting.Generating leads.Creating awareness and interest.Providing information.
18 Pre-PurchaseIn this phase customers are actively considering and evaluating competitive product and service offerings:Explaining features and benefits.Qualifying prospects.Assessing customers needs.Cooperating in problem solving.Demonstrating company and product capabilities.
19 Purchase Negotiating. Bidding. Finalizing terms and conditions. Writing Proposals.
20 Post-Purchase Delivery. Installation. Servicing of products. Addressing customers questions.Providing information about new features.Collecting payments.
21 Customers and Prospects Figure 2-7 Potential Go-to-Market ParticipantsCustomers and ProspectsDirect SalesForceAgentsDistributorsRetailersIntegratorsAlliancesAdvertisingPromotionDirect MailTele-marketingInternetDirectIndirectSales Force OptionsNon-Sales Force OptionsCompany
23 Product Development Management (PDM) Product Development Management is the process of developing, producing, and marketing new product offerings.
24 Figure 2-9 Product Development Management Subprocesses Identify customer needs for better solutionsDiscovering and designing new product solutionsDeveloping new solution prototypesManaging internal departmental priorities and involvementDesigning activities to speed-up development processLaunching new and redesigned offerings
25 Supply Chain Management (SCM) Supply Chain Management is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to customers.
26 Figure 2-10 Supply Chain Management Subprocesses Selecting and managing supplier relationshipsManaging inbound logisticsManaging internal logisticsManaging outbound logisticsDesigning product assembly and batch manufacturingManaging process technologyOrder, pricing, and terms managementManaging channel partnersManaging product installation and maintenance
27 Customer Relationship Management (CRM) It is a comprehensive set of processes and technologies for managing relationships with potential and current customers and business partners.Successful CRM efforts depends on a combination of people, processes, technology, knowledge, and information.
28 Figure 2-11 Customer Relationship Management Subprocesses Identifying high value prospectsLearning about product usage and applicationDeveloping and executing advertising and promotion programsDeveloping and executing sales programsDeveloping and executing customer service programsAcquiring and leveraging customer contact information systemsManaging customer contact teamsEnhancing trust and customer loyaltyCross-selling and upselling of offerings
29 Three Steps in Leveraging the CRM: Customers viewed as assetsCRM;s Task: To increase shareholder value by leveraging the customer base.The Market Value of the Company is the sum of (NPV) of all current and future customers cash flow.Providing customized solutions in marketing, sales and customer service continuum.Shareholder ValueDriver of Cash Flow& economic value added(EVA)Improving the profitability of customers seen as a driver of business profitFocus on customer selectionBritish Telecom used new techniques including telemarketing and Internet to decrease the costs of face to face selling.BusinessDriver of ProfitsCRM viewed as a tool to achieve a bigger customer share through cross-selling, up-selling, and finding new solutions to customers that could be packaged as new offeringsFocus on account planning and organizational alignmentSalesDriver of Revenue
30 Different Sales Orientations Solutions to your needs“Solution provider”Function/ departmentProduct and servicesolutions to customer needsUnderstanding thecustomer’s needsSolution SalesProduct SalesImpact on yourbusiness results“business consultant”All levelsValuable solutions tosupport competitive advantageDriving customerprofits and EVAValue SalesSalesArgumentBest products“Product Expert”Narrow Space(e.g., purchasing)Best products with acompetitive priceProduct excellence and/or cost leadershipProfile ofSalesCustomerContactsOfferingSuccessFactors
31 Sales Force Program Decisions. A sales force program is a tool for planning how the sales force will perform its role in achieving the firm’s objectives.
32 Account Relationship Strategy. A firm’s account relationship strategy refers to the type of relationship it intends to develop with its customers.Why it is important? What implications does it have on the Sales Force Program?
33 Figure 2-13: Alternative Types of Account Relationships InvestmentbySupplierEnterpriseRelationshipConsultativeRelationshipTransactionalRelationshipInvestment by CustomerFigure 2-13: Alternative Types of Account Relationships
34 Transactional Relationship A transactional relationship is a relationship based on the need for a product of acceptable quality, competitively priced, and a process and relationship convenient for the buyer.“I have never bought anything from someone I did not like.”
35 Consultative Relationship A consultative relationship, a common relationship in industrial market, is based on the customer’s demand and willingness to pay for a sales efforts that creates new value and provides additional benefits outside of the product itself.Understand customers’ problemsDevelop better solutionsAdvocate the customers’ interests
36 Enterprise Relationship An enterprise relationship is one in which the primary function is to leverage any and all corporate assets of the supplier in order to contribute to the customer’s strategic success.Product and sales force are secondary.Customer must be of strategic importance to the selling organization.Suppliers are involved in early stages of need identification.Supplier’s team interface with the customer on regular basis.Suppliers respond immediately and share information continuously.