organizational strategies and the sales function module three

Organizational Strategiesand The Sales Function

Organizational Strategiesand The Sales Function

Module Three

Ingram LaForge Avila

Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach

Module 3:Organizational Strategies and the Sales Function

Learning ObjectivesLearning Objectives

1. Define the strategy levels for multi- business, multi-product firms.

2. Discuss how corporate and business strategy decisions affect the sales function.

3. Lists the advantages and disadvantages of personal selling as a marketing communications tool.





4. Specify the situations in which personal selling is typically emphasized in a marketing strategy.

5. Describe ways that personal selling, advertising, and other tools can be blended into effective integrated marketing communications programs.





6. Discuss the important concepts behind organizational buyer behavior.

7. Define an account targeting strategy. 8. Explain the different types of relationships

strategies. 9. Discuss the importance of different selling

strategies.10. Describe the sales channel strategies.





4. Specify the situations in which personal selling is typically emphasized in a marketing strategy.

5. Describe ways that personal selling, advertising, and other tools can be blended into effective integrated marketing communications programs.




Setting the StageSetting the Stage

1. The vignette refers to a dealer who uses a CRM application to keep track of 90,000 customers. What information does that dealer track?

2. How does management use that data?

Customer Relationship Management (CRM) and the Sales Function: Deere & Company




Corporate Strategy

Corporate MissionSBU DefinitionSBU Objectives

Corporate Management

Sales Strategy

Strategy TypesStrategy Execution

SBU Management

Strategy Level

Key Decision Areas

KeyDecision Makers

Organizational Strategy LevelsOrganizational Strategy Levels




Strategy Level

Key Decision Areas

KeyDecision Makers

Marketing Strategy

Corporate Management

Target Market Selection

Marketing Mix Dev.

Integrated Mkt Comm.

Business Strategy

SBU Management

Account Targeting StrategySales Channel StrategyRelationship Strategy

Organizational Strategy LevelsOrganizational Strategy Levels




Corporate Strategy Development ProcessCorporate Strategy

Development Process

• Analyze corporate performance and identify opportunities and threats

• Determine corporate mission and objectives

• Define strategic business units

• Set objectives for each strategic business unit




Definition ofStrategic Business Units (SBUs)

Definition ofStrategic Business Units (SBUs)

Cravens (1991)

An SBU is 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."




Salary plus incentive

Prospective and new accounts

Provide high service levels

particularly pre-sales service

Product/market feedback

Build salesvolume; Secure

distribution

Build

SBU Objectives andthe Sales Organization


Compensation System

PrimarySales Tasks

Sales Organization Objectives

Market Share Objectives




Compensation System

PrimarySales Tasks



Salary plus commission or

bonus

Call on targeted current accounts

Incr. service levels to current

accounts

Call on new accounts

Maintainsales volume

Consolidate market position

through concentration

on targeted segments

Secure additional outlets

Hold






Compensation System

PrimarySales Tasks



Salary plus bonus

Service most profitable accounts

eliminate unprofitable

accounts

Reduce service levels and/or

inventories levels

Reduce selling costs

Target profitable accounts

Harvest






Compensation System

PrimarySales Tasks



SalaryDump inventory

Eliminate service

Minimize selling costs and clear out inventory

Divest or Liquidate






Business Strategy andthe Sales Function

Business Strategy andthe Sales Function

• Low-cost supplier

• Differentiation

• Niche

Pursue large customers

Minimize cost

Compete on price

Seek customers who are low price shoppers

Compete on non-price benefits

Provide high quality customer service

Seek customers who are not low price shoppers

Serve a distinct target market not served well

by others

Provide high quality customer service

Seek customers who are not low price shoppers




Personal Selling-Driven vs. Advertising-DrivenMarketing Communications Strategies

Personal Selling-Driven vs. Advertising-DrivenMarketing Communications Strategies

When Message Flexibility is ImportantWhen Message Timing is ImportantWhen Reaction Speed is ImportantWhen Message Credibility is ImportantWhen Trying to Close the Sale

When Low Cost per Contact is ImportantWhen Repetitive Contact is ImportantWhen Control of Message is ImportantWhen Audience is Large

Personal Selling

Advertising




Target Market Situations andPersonal Selling

Target Market Situations andPersonal Selling

Target Market: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




Integrated Marketing CommunicationsIntegrated Marketing Communications

The strategic integration of multiple marketing communications tools communicating a consistent message in the most effective and efficient manner.




BuyingSituation

BuyingCenter

Organizational

Buyer BehaviorAccount

BuyingProcess

BuyingNeeds

Account Targeting

Strategy

Relationship

Strategy

SalespersonSales

Strategy

Sales Channel

Strategy

Selling

Strategy

The Sales Strategy FrameworkThe Sales Strategy Framework




Business or Industrial

Organizations

Major Category Types

Users: purchase products and services to produce

other products and services

Organizational Buyer Behavior:Types of Organizations


Original Equipment Manufacturers (OEM): purchase products to

incorporate into products

Resellers: purchase products to sell




Major Category Types

Government Organizations

Federal, State, and Local Government

Agencies



Public and Private InstitutionsInstitutions




Organizational Buyer Behavior: Buying Situations

Organizational Buyer Behavior: Buying Situations

Straight Rebuy Buying Situation– Routinized Response Behavior

Modified Rebuy Buying Situation– Limited Problem Solving

New Task Buying Situation– Extensive Problem Solving




Organizational Buyer Behavior: Buying Center

Organizational Buyer Behavior: Buying Center

• Initiators

• Users

• Gatekeepers

• Influencers

• Deciders

• Purchasers




Organizational Buyer Behavior:Buying Process

Organizational Buyer Behavior: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




Control Cost in Product Use Situation

Few Breakdowns of Product

Dependable Delivery for Repeat Purchases

Adequate Supply of Products

Cost within Budget Limits

Want a Feeling of Power

Seek Personal Pleasure

Desire Job Security

Want to be Well Liked

Want Respect

Personal Goals Organizational Goals

Personal and Organizational NeedsPersonal and Organizational Needs




Sales Strategy:Account-Targeting Strategy

Sales Strategy:Account-Targeting Strategy

The classification of accounts withina target market into categories forthe purpose of developing strategic approaches for selling to each account or account group.




Sales Strategy:Relationship Strategy

Sales Strategy:Relationship Strategy

A determination of the type of relationship to be developed with different account groups.




Transaction Solutions Partnership Collaborative

Characteristics of Relationship Strategies

Characteristics of Relationship Strategies

Goal Sell Products Add Value

Time Frame

Short Long

Offering Standardized Customized

Number of Customers

Many Few




Sales Strategy: Selling Strategy Sales Strategy: Selling Strategy

A planned selling approach for each relationship strategy. Developing efficient and effective selling strategies is an important sales management task.




Matching Selling andRelationship StrategiesMatching Selling and

Relationship Strategies

Transaction

Solutions

Partnership

Collaborative

Commitment

Cost to

Serve

HighHigh

HighHigh

LowLow




Sales Strategy: Sales Channel Strategy

Sales Strategy: Sales Channel Strategy

Ensuring that accounts receive selling effort coverage in an effective and efficient manner. Sales channel options include:

– The Internet– Industrial Distributors– Independent Representatives– Team Selling– Telemarketing– Trade Shows




Sales Channel Strategy: The Internet

Sales Channel Strategy: The Internet

Used strategically to:• Increase Reach• Gather Information about Customers• Showcase New Products• Conduct Surveys• Enhance Corporate Image• Obtain Feedback• Service Existing Customers




Sales Channel Strategy:Industrial Distributors

Sales Channel Strategy:Industrial Distributors

Essentially, channel intermediaries that:• Have Their Own Sales Force• May Represent One Manufacturer;

Several Non-competing Manufacturers; Several Competing Manufacturers

• Take Title to the Goods and Normally Carry Inventory




Sales Channel Strategy: Independent or Manufacturers’ Reps

Sales Channel Strategy: Independent or Manufacturers’ Reps

Outsourcing the selling effort to individuals or organizations that:

• Sell complimentary products from non-competing manufacturers.

• Do Not Take Title to the Goods or Carry Inventory• Are Paid for Performance• Have Control over the Selling Effort• May Control Access to Customer Information




Sales Channel Strategy: Team Selling

Sales Channel Strategy: Team Selling

Multiple individuals from the selling organization working together to develop and expand relationships with one or more accounts. The salesperson typically coordinates the team’s selling efforts.




Sales Channel Strategy: Telemarketing

Sales Channel Strategy: Telemarketing

Using the telephone as a means of customer contact. This low-cost method of customer relationship management 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




Sales Channel Strategy: Trade Shows

Sales Channel Strategy: Trade Shows

• Generate Leads• Test Market New Products• Introduce New Products• Close Sales• Gather Competitive Information• Service Existing Customers• Enhance Corporate Image

Events at which the company exhibits its wares. Used by organizations to:

organizational strategies and the sales function module three

Documents

organizational strategies

sales function module

williams professional

sales channel strategies

trustbased approach

ingramlaforgeavila schwepker

business strategy decisions

organizational buyer