Sales Management 4 Strategic Roles Sales and Sales Management

Organizational Capabilities External Emphasis Internal Emphasis Outside-In Process Inside-Out Process Spanning Process Market Sensing Customer Linking Channel Bonding Technology Monitoring Customer Order Fulfillment Pricing Purchasing Customer Service Delivery New Products/Service Development Strategy Development SALES Financial Management Cost Control Technology Development Integrated Logistics Manufacturing/ Transformation Processes Human Resources Management Environmental Health and Safety

Integrated Marketing Make sure the Four Ps match. Make sure the Four Ps match.  If selling on price, can’t have most expensive ingredients. Make sure all marketing communications are working together. Make sure all marketing communications are working together.  Same message in ads, sales, literature, PR, promotions

General Business Strategies and Their Implications Type of StrategySales Force Implications PORTER’S TYPOLOGY ______________ Aggressive construction of efficient-scale facilities, vigorous pursuit of cost reductions from experience, tight cost and overhead control, usually associated with high relative market share. Servicing large current customers, pursuing large prospects, minimizing costs, selling on the basis of price, and usually assuming significant order-taking responsibilities. _______________ Creation of something perceived industrywide as being unique. Provides insulation against competitive rivalry because of brand loyalty and resulting lower sensitivity to price. ____________ Service of a particular target market, with each functional policy developed with this target market in mind. Although market share in the industry might be low, the firm dominates a segment within the industry. To become experts in the operations and opportunities associated with the target market. Focusing customer attention on nonprice benefits and allocating selling time to the target market. Selling nonprice benefits, generating orders, providing high quality of customer service and responsiveness, possibly significant amount of prospecting if high growth industry, selecting customers based on low price sensitivity. Usually requires a high quality sales force.

Miles and Snow Typology ___________ Attempt to pioneer in product/market development. Offer a frequently changing product line and be willing to sacrifice short-term profits to gain a long-term stronghold in their markets. ____________ Offer a limited, stable product line to a predictable market. Markets are generally in the late growth or early maturity phase of the product life cycle. Emphasis is on being the low-cost producer through high volume ______________ Choose high growth markets while holding onto substantial mature markets. Analyzers are an intermediate type of firm. They make fewer and slower product market changes than prospectors, but are less committed to stability and efficiency than defenders.

Prospector Primary focus is on sales volume growth. Territory management emphasizes customer penetration and prospecting

Defender Maintain the current customer base. Very little prospecting for new customers is involved. Customer service is emphasized along with greater account penetration.

Analyzer Must balance multiple roles: servicing existing customers, prospecting for new customers, uncovering new applications, holding onto distribution of mature products and support campaigns for new products.

Marketing Strategy and the Sales Function Advantages Advantages  Only promotional tool that consists of personal communication between seller and buyer  More credible and has more impact  Better timing of message delivery  Ability to tailor message to buyer  Allows for sale to be closed Disadvantage Disadvantage  High cost per contact

Large Small Number and Dispersion of _____________ Low High Buyers’ ____________Needs Small Large Size and Importance of ___________ Little Much Postpurchase Service Required Low High Product ____________ Pull Push Distribution Strategy Pre-set Negotiated Pricing Policy Many Few ______________ Available for Promotion Advertising Relatively Important Personal Selling Relatively Important

Sources of Increased Profit from Loyal Customers Why loyal customers are more profitable Referrals Price premium Lower costs Increased sales volume Initial sales Years as a customer Cost of new customer Contribution to profits

Using the Internet in Sales Increase Reach Increase Reach Gather Information about Customers Gather Information about Customers Showcase New Products Showcase New Products Conduct Surveys Conduct Surveys Enhance Corporate Image Enhance Corporate Image Obtain Feedback Obtain Feedback Service Existing Customers Service Existing Customers

Industrial Distributors Have Their Own Sales Force Have Their Own Sales Force May Represent One Manufacturer; Several Non-competing Manufacturers; Several Competing Manufacturers May Represent One Manufacturer; Several Non-competing Manufacturers; Several Competing Manufacturers Normally Carry Inventory Normally Carry Inventory

Independent/Manufacturers’ Reps Sell complementary products from non- competing manufacturers. Sell complementary products from non- competing manufacturers. Do Not Normally Carry Inventory Do Not Normally Carry Inventory Paid for ____________ Paid for ____________ Reduced __________over Selling Effort Reduced __________over Selling Effort Reduced _______to Customer Information Reduced _______to Customer Information

Team Selling Two Types of Team Selling –Multilevel Selling –Major Account Selling

Telemarketing May replace field sales force for certain accounts When integrated with field sales force, activities include:  Prospecting, Qualifying Leads, Conducting Surveys  Taking Orders, Checking on Order Status, Handling Order Problems  Following Up for Repeat Business

Trade Shows Generate ______ Generate ______ Test Market New _________ Test Market New _________ Introduce New ___________ Introduce New ___________ Close __________ Close __________ Gather Competitive ___________ Gather Competitive ___________ Service Existing Customers Service Existing Customers Enhance Corporate Image Enhance Corporate Image