Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-1 Chapter 2 Strategic Sales Force Management You got to be very careful if you don’t know where you’re going, because you might not get there. Yogi Berra

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-2 Figure 2-1: A company’s complete marketing system Macroenvironmental forces: Demography Economic conditions Sociocultural factors Political-legal factors Technology Competition Company’s marketing mix: Product planning Price structure Distribution system Promotional activities Marketing intermediaries Suppliers The market Nonmarketing resources in the firm: Production Financial Personnel Public image Research and Development Location Marketing intermediaries

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-3 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.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-4 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.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-5 How do these selling styles depicted in this 1927 cartoon relate to the four stages in the evolution of marketing management? Figure 2-3

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-6 Relationship Marketing: Four key issues Open communication Empowering employees Customers and the planning process Working in teams Total quality management

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-8Integrating…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

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 2-9 Strategic Planning Objectives are the broad goals around which a strategic plan is formulated. Strategies are the plans of action. Tactics are the specific activities that people must perform in order to carry out the strategy. Set Objectives Formulate Strategies Develop Tactics

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved Company Marketing Objectives Strategy Increase marketing share 10% Company Strategy- Marketing Objectives and Strategy Earn 20% ROI Strategy Increase share of customer business Increase market share 10% Objectives

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved Marketing Sales Force Strategy Increase share of customer business Marketing Strategy- Sales Force Objectives, Strategy and Tactics Increase share of customer business Strategy Build long-term customer relations Tactics Develop sales teams Provide bonuses for greater customer share Increase market share 10% Objectives

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved 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.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved 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 buyer- seller relationship. Require training Only effective if salespeople embrace it and are willing to use it.