Strategic Sales Force Management

In Order to achieve marketing objectives, the sales force must be seen as an integral part of the marketing strategyThe Marketing System

A marketing system operates within a framework of forces its environment. Two Sets of ForcesExternal Environment Demography Economic condition Socio Cultural Factors Political-Legal Factors Technology Competition

Continuation..2. Internal Variables in Marketing SystemThe companys resources in non-marketing areasThe components of its marketing mix

Marketing Mix describe the combination of four ingredients that constitute the core of a companys marketing system. When effectively blended, these four - formOf a marketing program designed to provide want-satisfying goods and services to the companys market.ProductPriceDistribution Promotion

Continuation.Promotional Mix major elements are:

a.)Advertisingb.)Sales Promotionc.)Personal selling effort

The Marketing Concept and Marketing ManagementMarketing Concept three fundamental beliefsCustomer or Marketing orientedOrganizationally coordinatedProfitable sales volume over the long run

Marketing Management and its Evolution Chief marketing executives responsible for planning, implementing, and coordinating all marketing activities and integrating them into the overall operations of the firms. These process is called marketing management.

Four stages in the evolution of marketing management Production Oriented-stage the executive in production and engineering shape the companys objectives and planning.

Sales Orientation-Stage the main problem in our economy was no longer the ability to make or grow enough products. Rather, the problem was selling this output.

Continuation.Marketing Orientation-Stage directed toward the twin goals of customer satisfaction and profitable sales volume.

Relationship Orientation-Stage buyer and seller make a commitment to each other to do business over a long time period rather than view each sales as a discrete transaction.

Relationship Marketing

Understanding customer expectations

Building service partnerships

Empowering employees

Total quality management

Relationship Marketing

Understanding customer expectationsCompanies must be able to identify what the customer want and market a product to them that exceeds their expectation

Relationship Marketing

Building service partnershipsCompanies must work closely with their customers to add information and services beyond their traditional products to increase the value of their offerings to customers.

Relationship Marketing

Empowering employeesCompanies must encourage and reward their salespeople for taking initiative and using creativity in helping solve customer problems.

Relationship Marketing

Total quality managementThis is the process by which the company strives to improve customer satisfaction through the continuous improvement of all its operation.

Integrating Marketing and Sales Functions

Sales force is an invaluable source of information which marketing should draw upon in designing product/marketing strategies.

Marketing is charged with the responsibility of providing the sales force with the marketing tools they need to sell more effectively, such as advertising, support services, and sales promotions.

Sales people have the primary responsibility for implementing marketing strategies.

Integrating and Production SalesSales plans provide the basis of production forecasts materials requirements and production schedules are developed based on sales forecasts.

Strategic Planning

Objectives -are the goals around which a strategic plans is formulated.

Strategies - or plans of action, are developed to achieve the objectives.

Tactics - activities which must be performed by the people in order to carry out the strategy.

Strategic Planning at the Company, Marketing, and Sales Force levels

The strategic planning on all level in the firm should be well integrated and highly coordinated

Strategic Planning for the Total CompanyStrategic Planning for the total company involves determining the organizations mission, the Board Objectives (Goals) that will enable the company to fulfill its mission, and the strategies and tactics needed to achieve the objectives.

Strategic Planning for the Total Company

1st Determine the companys mission2nd Management set broad goals consistent with that missionExample: The company may aim to earn a 20% ROI next year or to increase its market share from 8% to 20% in 3 years.3rd Select the strategy to be used to reach the goal

GoalsPossible Strategies1. Earn 20% ROI next year.Reduce production and marketing costsIncrease rate of capital turnover2. Increase market share form 8% to 20% in 3 yearsIntensify marketing efforts in domestic marketsExpand into foreign marketsBuy out a competitor

Strategic Marketing PlanningOnce the total company planning process is completed, essentially the same procedure can be repeated for the marketing Program the Goals, Strategies, and Tactics at the Marketing level are closely related to those at the corporate level.

Company GoalCompany StrategyMarketing Strategy1. Earn 20% ROICut marketing costs by 15% this yearReduce direct selling efforts by using wholesalers to reach small accounts2. Increase market share from present 8% to 20%Intensify marketing efforts in domestic marketsEnter new markets

Sales Force StrategyOnce the strategic planning process for the entire Marketing Program has been completed, the role of the sales has largely been established.

Corporate Goal:Increase market share from 8% to 20% in two yearsCorporate Strategy (Marketing Goal):Intensify market efforts in domestic markets to increase sales volume by 3M next yearMarketing Strategy (sales force goal):Enter new geographic markets and sell to new types of customers, orCover existing geographic markets more aggressively

Sales Force StrategyWhether the company selects to pursue marketing strategy a or b will make a big difference in the choice of the sales strategies and tactics

Marketing StrategySales Force StrategySales force Tacticsa. Enter new marketsBuild long-term customer relationsStress missionary selling in sales training and supervisionStress salary element in compensation plan.b. Sell aggressively in existing marketsIncrease sales force motivationConduct more sales contestsStress commission feature in sales planIncrease field supervision

Strategic TrendsMultiple Sales Channels- These methods may be used to reach different segments of customers or to perform various selling tasks necessary to efficiently serve one segment.Multiple Relationship Strategies- These can vary from one in which the sale is just an individual transaction to one in which the company develops a close long-term relationship or even a partnership with the customers.

Transaction Selling- Sales People emphasize the product,Its quality, and the price.

Relationship Selling- Sales people develops in depth-knowledge of their customers company and business.

Partnership- Companies from strategic alliances in order to joint goals

3. Systems Selling- is a strategy adopted by firms in response to the customers desire for solutions. This strategy involves selling a total package of goods and services and the related expertise.

4. Team Selling- Is composed of one or more sales people as well as other functional specialists, such as design engineers, financial experts, customer service representatives and quality control engineers.

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