Strategy and Sales Program Planning Topic 2

Aim: Understand sales mgt function, activities & competencies. Objectives: 2.1: Define strategic management planning 2.2 Distinguish the major steps involved in strategic marketing planning 2.3 Identify the four strategy implementation processes involving the sales force 2.4 Describe the account relationship strategy element of a sales force program

The Porter Competitive Model Used to understand and evaluate the structure of an industry’s business environment and the threats of competition to a specific company.

Porter Competitive Model Strategic Business Unit Potential New Entrants Bargaining Power of Suppliers Intra-Industry Rivalry Strategic Business Unit Bargaining Power of Buyers Substitute Products and Services Source: Michael E. Porter “Forces Governing Competition in Industry Harvard Business Review, Mar.-Apr. 1979 Figure 3-1

2.1: Strategic management planning. Level 1 Top Mgt decision Business strategy Marketing strategy Go-to-mkt CRM Strategy SCM Mgt Product Dev Mgt Level 2 Strategy Implementation Decision activities structure Level 3 Sales force Program decision Acc relatnship strategy competencies leadership

Strategic management planning. LEVEL 1: Top Mgt Decisions First Strategic planning is used to make better use of company resources & create a competitive advantage. Involves designing mission – which provides a sense of direction to employees. Should address customers, competitors and the company itself. Design specific objectives by which performance can be measured (in terms of profit, sales volume, mkt share). Translate objectives into strategies (low cost, differentiation or niche).

Second is marketing strategy which involves addressing the value requirements of customers. Need to segment the market & select target markets on which to concentrate their efforts. Level 2: Strategy Implementation Decisions Implement a positioning strategy based on 4P’s. deals how the consumer views the product & brand. Strong 4P’s very important. Sales force with other depts as finance, operations, logistics etc.. need to work together on the above strategies.

Third is strategic implementation decisions – set of process org needs to develop to create customer value & gain competitive advantage. Decisions company make are: - how will customers be accessed (go-to-mkt strategy) - how will new products be developed & existing products improved (product dev mgt) - how will physical products be created & delivered to customer (SCM) - how customer relation be enhanced (CRM)

Apple Company Vision: We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. Mission: Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.”

Go – To – Market Strategy: A world class sales force is a powerful resource for a company. Other options are advertising, promotions, value added resellers, internet, telemarketing. Segmenting the mkt Essential activities include interest creation, pre-purchase, purchase, post purchase. Face to face selling alternative – independent sales agent, resellers, integrators (unaffiliated service supplier), alliances.

Product Development Mgt Success of a company often depends on how it develops, produces & market new products. Sales force are the most important source of information for new product dev. Sales force also plays an important role in the launching of new products.

Supply Chain Mgt integration & organisation of information & logistics activities across firms in a supply chain for the purpose of creating & delivering goods that provide customer value. Companies have seen whiplash of too much or too little inventory. Sales force impacts SCM because they are the contact points to the customer. Need to have knowledge of entire SC, think strategically about partnering, good lines of communication & influence of top mgt.

Customer Relationship Mgt Involvement of sales force Importance of information 4 skills important to sales professionals in CRM: - collaboration having each stakeholders interest in mind - relationship mgt effective listening, analyzing & interpersonal communication. - financial & business skills - consultative skills

Level 3: Sales Program Decisions is a tool for planning how sales force will perform its role in achieving the firm’s objectives. The process begins with objectives, target markets specified in the marketing plan. The tools and techniques for estimating sales potential and forecasting are discussed later in the topic.

Mkting objs, strategy, & strategy implementation program Estimates of sales potential & forecast Acc relationship strategy Desired selling actions & behaviors Estimates of sales force size & budget Org. structure Competency Dev program Leadership system feedback

Account Relationship Strategy Refers to the type of relationship it intends to develop with its customers (acquiring, maintaining & developing customers). Transactional Relationship – because a business can switch suppliers easily. Relationship is based on the need for a product of acceptability quality, competitively priced & process & relationship convenient for the buyer. Good TR involves personal relationship based on history of trust, creation of value, meeting or exceeding customers expectations.

Consultative Relationship – in industrial markets based on the customers demand & willingness to pay for a sales effort that creates new value & provides additional benefits outside of the product itself. - more time is spent learning special needs of individual customer Enterprise Relationship – customers downsizing their supplier base to a small number of possible long term relationships. To the selling organization customer is the most important.

Developing Your Competencies Strategic Action Technology Coaching Team building Self management – - closing (can aggressively initiate personal contacts - consultative (possess patience, good interpersonal skills & aggressiveness) - relationship (discipline & take responsibility) - display (need to have something to do, high physical energy level)

Thank You