DR. DAWNE MARTIN BUSINESS MARKETING – MKTG 550 NOVEMBER 15, 2011 Social Media, Sales & Sales Management

Learning Objectives Review presentation guidelines Electronic Media  Investigate how electronic media is used  Investigate types and uses for B2B social media  Investigate trends in interactive media use Sales and Sales Management  Identify the roles of sales in B2B marketing  Identify the sales management issues and strategies f  Review “Rethinking the Sales Force” and relate to current strategies and situations For Next Time: Help for Project & Chapter 14 – Pricing & Negotiating for Value

How Do B2B Marketers Use the Internet? Channels of distribution Customer relationship building Brand image – thought leadership Introduction of new products and solutions Technical expertise Community

Trends for 2009 “ Marketers say social media, customer engagement and interactives are top trends for 2009”, BtoB, Nov. 12, 2009 Increase in use of social media, customer engagement  Social networks for sharing business issues – blogs, online press releases  Interactive solution tools  Strong analytics for database marketing and segmentation  Interaction based on past purchase behavior Solution marketing  White papers  Deeper product information  Thought leadership programs – seeding the market with ideas for improvement through innovative solutions  Webinars  Internet vides  Blogs, Wikis, Podcasts

Some Examples American Express:  php_inav-smallbusiness php_inav-smallbusiness Eastman Kodak  IBM  Solutions: Oracle  Technology:  Solutions:  Communities: SalesForce.Com  Demo:

Electronic Media : IBM - A Smarter Planet - Overview - United StatesIBM - A Smarter Planet - Overview - United States

Electronic/Web-based B2B Marketing Virtual Conference:

Formulating a Strategic Sales Plan External Environment Organizational Environment Target Markets & Marketing Mix Account Management Policies Sales Force Organization Sales Planning, Forecasting, Budgeting Deployment, Territory Design The EnvironmentMarketing Strategy Sales Management Activities Churchill, Ford & Walker (1997), Sales Force Management, 5 th ed., Irwin, p. 6.

Sales Person’s Role in Creating Value Managing customer relationship  Creating customers for life  Customer service  Coordinating the firm’s actions in order to satisfy customer requirements Gaining customer information to aid in marketing decision-making  Customer dialog  Competitive Information

Account Management Policies What kind of selling should we use?  Script-based selling  Needs satisfaction selling  Consultative selling  Strategic partner selling What kinds of accounts should sales reps handle? What kinds of accounts should be handled through less expensive means (e.g., telemarketing, direct marketing, e-commerce)

BUYING AND SELLING TEAMS STREAMLINE MULTILEVEL SELLING Vice President Of Purchasing Vice President Of Sales Director of Purchasing Account Manager Engineer Product Specialist Buying Company Selling Company Exhibit

CUSTOMER FOCUSED TEAM STRUCTURE Account Consultant F&A Rep. Customer Sales Specialists Account Manager Team Leader Manufacturing Finance and Accounting Other Business Units Other Rep.(s) Purchasing Agent Shipping CSS Rep. Customer Support Service Purchasing Shipping Manager Sales Specialists Prod. / Ind. Mktg. Groups Exhibit

Management Issues Sales Force Organization & Size  Geographic, Product, Customer  Sales Teams  Sales force size Directing the Sales Force  Territory design  Quotas – activity and performance  Compensation – Straight salary, straight commission, bonuses, combination plans Evaluating Performance – Balance Score Card  Productivity – Activities vs. Outcomes  Customer Satisfaction  Profitability  Contribution to the company

Exhibit 13-8 ALLOCATION GRID FOR SALES RESOURCES Relatively fewer resources should be allocated here Low Maintain sufficient resources to continue to reap the sales potential and strong position High Direct more sales resources here Assign to alternative method of communicating, such as telemarketing Weak Strong MARKET LIFETIME VALUE RELATIVE POSITION 13-18

DO YOU OUTSOURCE THE SALES FORCE? YES NO Establish relationships Salary and selling expenses can be limited Little/no up-front investment Loss of control over sales presentation Products may not be a selling priority with representative TO MAKE IT WORK: INVEST IN TRAINING AND MERCHANDISING MATERIALS 13-19

MANAGER’S DILEMMA: EVALUATING PERFORMANCE & MAINTAINING MOTIVATION 1.REVIEW SPECIFIC SALES OBJECTIVES 2.OBTAIN APPROPRIATE PERFORMANCE DATA (outcomes and effort) 3.EVALUATE WHAT WAS BEYOND SALESPERSON’S CONTROL 4.IDENTIFY PROBLEMS AND OPPORTUNITIES 5.CREATE A STRATEGY THAT RESOLVES PROBLEMS AND SEIZES OPPORTUNITIES 5 STEPS TO EVALUATE SALES FORCE PERFORMANCE Exhibit

RECOGNIZING AND IDENTIFYING A PROBLEM Expectations Enormity of problem rests on length of this difference Results PROBLEM RECOGNITION 1.Our sales are down: WHY? 2.We can’t see customers: WHY? 3.We can’t make appointments on time : WHY? 4.We spend too much time covering territory : WHY? 5.Our territories are too big : WHY? 6.We don’t have enough salespeople : WHY ? THE 6xWHY FILTER Ask the WHY question at least six times (or as many times as necessary) PROBLEM IDENTIFICATION “ The Problem ” CONCLUSION / PROBLEM We haven’t matched demand to our sales force

Taxonomy of Relationships Relationship Value Discrete Transactions Bilateral Governance Adapted from Rackham & DeVincentis, Rethinking the Sales Force, 1999 Extrinsic Value Intrinsi c Value Strategi c Value Relational Exchange

Customer Value & Selling Modes Transactional Selling Consultative Selling Enterprise Selling Value = Benefits - Costs A Cheaper, No Hassle Pie A Balanced Diet Intrinsic Value Buyers Extrinsic Value Buyers Strategic Value Buyers Enterprise Assets Sales Assets Transaction Asset

Intrinsic Value Buyers Strategic Options  Create New Value -- move to Extrinsic Value  Adapt -- Reengineer sales approach  Eliminate sales force  Move to lower-cost channels  Drastically reduce cost of current sales force  Make the Market-- Find ways to profit from transaction itself  Exit -- Disengage from market segment

Extrinsic Value Buyers New Consultative Selling  Help customers understand problems, issues & opportunities in new & different ways  Show customers new or better solutions  Act as advocates for customers What is Takes  Investment of effort  Longer relationship horizons  Different skills -- Seeking Vs Telling  Metrics

Strategic Value Buyers Enterprise Selling  Selling the enterprise, rather than product  Searching for new ways to create value for customer  Multi-functional relationship at many levels  Equality in the relationship  Creating value at the boundary  Opportunities for value & improvement at boundaries between functions Production- New Product Development Logistic- Marketing & Sales