1. Part One: Strategic Planning
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

2. Introduction to Sales Management
Chapter 1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

3. Learning Objectives
Define strategy hierarchy and understand how sales and marketing strategies affect overall strategy
Identify different types of selling strategies and how the selling process varies
Describe the sales management process and responsibilities and activities of sales managers
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

4. The nature of sales ”Nothing happens until someone sells something!”
Many people beleive sales profession is NOT a noble position to hold
Professionel buyers know better:
They rely on salespeople to bring them solutions to the buseness problems that challenge them

5. What Being a Sales Manager Means
Coaching
Coaching salespeople so they can improve
Developing
Developing strategies and delegating the responsibility for implementation to others
Motivating
Figuring out how to motivate people, some who are older than you
Convincing
Convincing others that what is right for the sales force is right for their departments, too
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

6. Establishing the Parameters of the Firm’s Strategy: The Mission Statement
A mission is a set of objectives
Summarizing the goals is called a mission statement
A goos mission statement serves as a standard against which the decisions and actions employees take can be sompared
Once the mission´s objectives are set – strategy can be created
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

7. Sample Mission Statements
Everything we do is inspired by our enduring mission:
To Refresh the World in body, mind, and spirit
To Inspire Moments of Optimism through our brands and our actions
To Create Value and Make a Difference everywhere we engage
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit
Coca-Cola
Southwest Airlines
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

8. The Strategy Hierarchy
Corporate strategy encompasses plans and goals for the entire organization
Address questions such as what markets and sourcing options company should engage
Ex: hire sales force vs. use distributors
Ex: outsource mfg and focus internally on marketing
Business units create their plans to support corporate strategy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

9. The Strategy Hierarchy
Corporate Strategy
Marketing Strategy
Sales Strategy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

10. Creating a Marketing Strategy
A. Markets
What markets do we serve with what products?
B.Relationships
What types of relationships do we form and with whom?
C.Investment
What level of investment will be required, and how will we locate and allocate the needed resources?
D.Objectives
What are the detailed objectives and action plans?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

11. A. Markets: What Markets Do We Serve with What Products?
Find a sustainable competitive advantage
Something that gives a company an edge in the market over time!
Need expertise, technology or a patent
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

12. Markets Product-Market Grid
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

13. B. Relationships: What Types of Relationships Do We Form and with Whom?
Strategic plan considers network of relationships (Supply Chains)
Relationship with customers is most important
1. A service dominant logic: advantage is often a function of the quality of relationships
2. Customers’ lifetime value is worth more than the average single purchase
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

14. B. Relationships: Customer Relationship Management (CRM): Key Terms
3. CRM: identifying and grouping customers to best acquire, retain, and grow customers
Sales and marketing teams are responsible for CRM
Customer acquisition strategy: plan to obtain new customers
Customer retention strategy: plan designed to keep customers
Growth strategy: plan designed to increase sales to the same customers
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

15. C. Investment: What Level of Investment Will Be Required, and How Will We Allocate the Needed Resources?
Money, human or social capital
Human capital decisions include:
Determining number of salespeople
What skills and experience they must have
What training they require
Other decisions include:
Whether to hire telephone prospectors or to outsource
Who handles customer service (a sales rep or a customer service rep)
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

16. D. Objectives: What Are the Detailed Objectives and Action Plans?
SMART format for establishing objectives S
pecific M
easurable A
chievable, yet challenging R
ealistic T
ime-based
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

17. Selling Approaches Finish sale as quickly and as easily as possible
Transactional
Finish sale as quickly and as easily as possible
Key to success is making as many calls as possible to as many people as possible
Affiliative
Based on the friendship between the salesperson and the individual buyer
Problem Solving or Consultative
Identify and solve a client’s problems
Also called needs-satisfaction selling or problem/solution selling
Enterprise
Business-to-business (B2B) concept
Based on not only person-to-person relationships but on company-to-company relationships
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

18. The Selling Process: 8 Steps
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19. Selling Process vs. Selling Approach
Transactional
Prospecting
Affiliative
Consultative
Closing
Presenting
Enterprise
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

20. Assignment 1: Give a detailed description of the differences.
Which pros and cons do you find to be the most important?

21. Sales Leaders
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22. Sales Executive vs. Sales Manager Duties
Activity
Sales Executive
Sales Manager
Plan
Set overall sales targets for each product
Set quotas for each salesperson for each product
Organize
Decide what type of people to hire for sales positions
Interview and hire specific people for sales positions
Implement
Determine the compensation plan
Identify each person’s motivators and find ways to reward good performance for each person
Monitor
Track sales by region; take corrective action such as additional training if sales are too low
Observe each salesperson’s actions in the field and offer suggestions for their improvement
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.