1. Organizational Strategies & The Sales Function
Module Three
Organizational Strategies & The Sales Function
The Strategic Role of the Sales Function

2. The Importance of Sales
The Sales function is the company’s primary ‘interface’ with its marketplace…
and principal source of revenue
or its primary partner in completing the exchange process.

3. Exchange Facilitators
The sales organization is designed
so that this 'interface function is best suited
to the larger needs & limitations of the total dynamic
of the overall business organization.

4. Strategic levels of an Organization At the Corporate level
Strategy Level
Key Decision Areas
Key Decision Makers
Corporate Strategy
Corporate Mission
SBU Definition
SBU Objectives
Corporate Management

5. Strategic levels of an Organization At the Corporate level
Strategy Level
Key Decision Areas
Key Decision Makers
Marketing Strategy
Corporate Management
Target Market Selection
Marketing Mix Dev.
Integrated Mkt Comm.

6. At the SBU level Strategy Level Key Decision Areas Key Decision Makers
Business Strategy
SBU Management
Account Targeting Strategy
Sales Channel Strategy
Relationship Strategy
Sales Strategy
Strategy Types
Strategy Execution
SBU Management

7. (SBUs) Strategic Business Units
A functional grouping of a single product
or brand, a line of products,
or a mix of related products
that meets a common market need
or a group of related needs,
and the unit's management is responsible for all (or most) of the basic business functions. 4

8. SBU Objectives & the Sales Organization
Compensation System
Primary Sales Tasks
Sales Organization Objectives
Market Share Objectives
Build
Build sales volume
Secure distribution.
Prospective and new accounts
Provide high service levels particularly pre-sales service
Product/market feedback
Salary plus incentive

9. SBU Objectives & the Sales Organization
Compensation System
Primary Sales Tasks
Sales Organization Objectives
Market Share Objectives
Hold
Maintain sales vol.
Consolidate market position through concentration on targeted segments
Secure additional outlets
Call on targeted current accounts
Incr. service levels to current accounts
Call on new accounts
Salary plus commission or bonus

10. SBU Objectives & the Sales Organization
Compensation System
Primary Sales Tasks
Sales Organization Objectives
Market Share Objectives
Harvest
Reduce selling costs
Target profitable accounts
Service most profitable accounts
eliminate unprofitable accounts
Reduce service levels
Reduce inventories levels
Salary plus bonus

11. SBU Objectives & the Sales Organization
Compensation System
Primary Sales Tasks
Sales Organization Objectives
Market Share Objectives
Divest or Liquidate
Minimize selling costs and clear out inventory
Dump inventory
Eliminate service
Salary

12. Business Strategy & the Sales Function
Strategy Type
Sales Force Role
Pursue large customers
Minimize cost
Compete on price
Seek customers who are low price shoppers
Low-cost supplier

13. Business Strategy & the Sales Function
Strategy Type
Sales Force Role
Low-cost supplier
Differentiation
Compete on non-price benefits
Provide high quality customer service
Seek customers who are not low price shoppers

14. Business Strategy & the Sales Function
Strategy Type
Sales Force Role
Low-cost supplier
Differentiation
Niche
Serve a distinct target market not served well by others
Provide high quality customer service
Seek customers who are not low price shoppers

15. Marketing Strategy & the Sales Function
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
High cost per contact 9

16. IMC Integrated Marketing Communications
The ‘third P’ ~ Promotions
The Promotional -Mix
Advertising
Public Relations
Internet / Interactive
Personal Selling
Direct Marketing

17. The Promotional-Mix
For the best IMC
Which ‘tools’ to use
&
when?

18. Personal Selling-Driven vs. Advertising-Driven (IMC) Strategies
When Message Flexibility is Important
When Message Timing is Important
When Reaction Speed is Important
When Message Credibility is Important
When Trying to Close the Sale
When Low Cost per Contact is Important
When Repetitive Contact is Important
When Control of Message is Important
When Audience is Large
Advertising

19. Target Market Situations & Personal Selling
A definition of the specific market segment to be served
Personal Selling-Driven Promotional Strategies are appropriate when:
The market consists of only a few buyers that tend to be concentrated in location
The buyer needs a great deal of information
The purchase is important
The product is complex
Service after the sale is important 10

20. The Sales Strategy Framework
Buying Situation
Buying Center
Organizational
Buyer Behavior
Account
Buying Process
Buying
Needs
Account
Targeting
Strategy
Relationship
Salesperson
Sales
Sales Channel
Selling 2

21. Organizational Buyer Behavior i) Types of Organizations
Major Category
Types
Business or
Industrial Organizations
Users: purchase products and services to produce other products and services
Original Equipment Manufacturers (OEM): purchase products to incorporate into products
Resellers: purchase products to sell 4

22. Organizational Buyer Behavior: ii) Types of Organizations
Major Category
Types
Federal, Provincial and Local Government Agencies
Government Organizations
Public and
Private Institutions
Institutions 4

23. Organizational Buyer Behavior iii) Buying Situations
Straight Rebuy Buying Situation
Routinized Response Behavior
Modified Rebuy Buying Situation
Limited Problem Solving
New Task Buying Situation
Extensive Problem Solving 5

24. Organizational Buyer Behavior: iv) The “Buying Centre”
Initiators
Users
Gatekeepers
Influencers
Deciders
Purchasers 5

25. Organizational Buyer Behavior v) The Buying Process
Phase 1: Recognize Problem/Need
Phase 2: Determine Item Specs/Quantity Needed
Phase 3: Specify Item Specs/Quantity Needed
Phase 4: Identify and Qualify Potential Sources
Phase 5: Acquire and Analyze Proposals
Phase 6: Evaluate Proposals/Select Suppliers
Phase 7: Selection of Order Routine
Phase 8: Performance Feedback/Evaluation

26. Sales Strategy: a) Account-Targeting Strategy
The classification of accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group. 10

27. Sales Strategy: b) Relationship Strategy
A determination of
the type of relationship
to be developed with different account groups. 10

28. Characteristics of Relationship Strategies
Transaction
Solutions
Partnership
Collaborative
Goal
Sell Products
Add Value
Time Frame
Short
Long
Offering
Standardized
Customized
Number of Customers
Many
Few 12

29. Sales Strategy / Selling Strategy
Ensuring that accounts receive selling effort coverage in an effective and efficient manner. 10

30. Matching Selling & Relationship Strategies
Commitment
Cost to Serve
High
Low
Collaborative
Partnership
Solutions
Transaction 15

31. Sales Strategy & Sales Channel Strategy
The planned selling approach for each relationship strategy.
The Internet
Industrial Distributors
Independent Representatives
Team Selling
Telemartketing
Trade Shows 10

32. Sales Strategy & The Internet
Increase Reach
Gather Information about Customers
Showcase New Products
Conduct Surveys
Enhance Corporate Image
Obtain Feedback
Service Existing Customers 10

33. Sales Channel Strategy & Industrial Distributors
Have Their Own Sales Force
May Represent One Manufacturer; Several Non-competing Manufacturers; Several Competing Manufacturers
Normally Carry Inventory 17

34. Sales Strategy with Independent or Manufacturers’ Reps
Sell complimentary products from non-competing manufacturers.
Do Not Normally Carry Inventory
Paid for Performance
Reduced Control over Selling Effort
Reduced Access to Customer Information 10

35. Sales Strategy & Team Selling
Three Selling Situations
New Task Selling
Modified Resell Selling Situation
Routine Resell Selling Situation
Two Types of Team Selling
Multilevel Selling
Major Account Selling 10

36. Sales Strategy & 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 10

37. Sales Strategy & Trade Shows
Generate Leads
Test Market New Products
Introduce New Products
Close Sales
Gather Competitive Information
Service Existing Customers
Enhance Corporate Image 10

38. Organizational Strategies & The Sales Function Exchange Artists
Strategic levels of an Organization
SBU Objectives & the Sales Organization
Business Strategy & the Sales Function
Marketing Strategy &the Sales Function
For the best IMC Which ‘tools’ to use & when?
Organizational Buyer Behavior i) Types of Organizations
Sales Channel Strategy &…