Sales Management: Chapter 2

Chapter 2 is
Strategy and Sales Program Planning. (30)
Strategic Action is
employed to make better use of company resources and to create and sustain an advantage over the competition. (32)
A well-defined business mission provides a
sense of direction to employees and helps guide them toward fulfillment of the firm’s potential.
A Business Mission Statement should include
– The types of customers it wishes to serve.
– The specific needs to be fulfilled.
– The activities and technologies by which it will fulfill these needs. (33)
Organization’s Goals
Specific objectives by which performance can be measured. These objectives are usually stated in terms of profits, sales revenue, unit sales, market share, survival, and social responsibility.
Strategy
the means an organization uses to achieve its objectives.
Porter’s Generic Business Strategies
Low cost, differentiation, and niche. (34)
Marketing Strategy
the set of integrated business decisions and actions a business undertakes to achieve its marketing objectives by addressing the value requirements of its customers.
Market segmentation
aggregating customers into groups that have one or more common characteristics, have similar needs, and will respond similarly to a marketing program. (35)
Target Marketing
The Selection and prioritizing of segments to which the company will market.
Positioning
how the consumer perceives the product, brand, and company. (36)
Brand Identity
Who are you?
Brand Meaning
What are you?
Brand Reponses
What do I think or feel about you?
Brand Relationships
What kind of association and how much of a connection would I like to have with you?
Marketing Mix
Price, product, promotion, and place.
Strategic Implementation Decision
a set of processes that organizations will develop to create customer value and achieve a competitive advantage.
Go-To-Market Strategy
How will customers be accessed?
An essential set of activities must be performed to attract and retain customers.
Product Development Management
How will new offerings be developed and existing products be improved?
Supply Chain Management
How will physical products be created and delivered to the customer?
Customer Relationship Management
How will customer relationships be enhanced and leveraged?
Steps in Developing a Go-to-Market Strategy
1. What is the best way to segment the market?
2. What are the essential activities required by each segment?
3. What non face to face selling methods should perform these activities?
4. What face to face selling participants should be used? (37)
Industry
What business is the customer in?
Size
What is the revenue size of the customer? How many employees? What is the sales potential?
Geography
Where is the customer located? Does the customer have global operations?
Behavior
Who are the key decision makers? What are their adoption tendencies? Does the customer currently use our product? Does the customer buy centrally for all its plant locations?
For the purposes of a developing a go-to-market strategy, the best approach to segmenting a market is one that
generates groups of customers whose members require similar customer attraction and retention activities.
Sales Process Activities
All the activities needed to a serve a customer properly. (38)
Essential Sales Process Activities:
Interest creation, pre-purchase, purchase, and post-purchase.
Supply Chain Management is the
integration and organization of information and logistic activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to customers. (43)
Important Implications of the SCM for the evolution of the sales force:
Knowledge of the entire upstream and downstream supply chain.
Thinking strategically about partnering.
Establishing good lines of communications and influence with senior corporate management. (44)
Customer Relationship Management is
a comprehensive set of processes and technologies for managing relationships with potential and current customers and business partners across marketing, sales, and service potential and current customers and business partners across marketing, sales, and service regardless of communication channel. (45)
Success CRM efforts depend on a
combination of people, processes, technology, and knowledge.
Marketing
Targeting and acquiring prospects through data mining, campaign management, and distributing leads to sales and service.
Sales
Developing effective selling processes using proposal generators, knowledge management tolls, contact managers, and forecasting aids.
Service
Addressing service and support issues with sophisticated call center applications and Internet-based customer service products.
CRM Efforts are in 3 Phases
– Companies look to manage customer relationships as a driver of revenue.
– Companies look for possibilities to manage customer relationships as drivers of profits.
– Customer relationships and sales are regarded as a true driver of shareholder value.
4 Skills Most Important to Top Sales Professionals in CRM Phase 3
Collaboration, Relationship Management, Finance and Business Skills, and Consultative skills. (46)
Sales Force Program
A tool for planning how the sales force will perform its role in achieving the firm’s objectives. (47)
Account Relationship Strategy
The type of a relationship a firm intends to develop with its customers. This decision encompasses plans for acquiring, maintaining, and developing customers. It determines which customers can be profitably served because it calls for a very different level of investment into customer relationship.
Transactional Relationship
The relationship is based on the need for a product of acceptable quality, competitively priced, and a process and relationship convenient for the buyer. (49)
The heart of a transactional relationship
a personal relationship.
Consultative Relationship
Based on the customer’s demand and willingness to for a sales effort that creates new value and provides additional benefits outside of the product itself. (51)
In Consultative Relationships, the sales force attempts to create value for the customer in 3 ways: (1)
1. Helping customers understand their problems and opportunities in a new or different way.
2. Helping customers develop better solutions to their problems than they would have discovered on their own.
In Consultative Relationships, the sales force attempts to create value for the customer in 3 ways:
3. Acting as the customer’s advocate inside the supplier’s organization, ensuring the timely allocation of resources to deliver customized or unique solutions to meet the customer’s special needs.
Much of a Consultative Relationship is spent
learning the special needs of the individual customer and marshaling resources inside the supplier’s company to meet those needs.
A Consultative Relationship is most appropriate when:
The product or service can be differentiated from competitive alternatives.
Can be customized to the needs of the customer.
Customer is unclear about value or benefits.
Justifiable high costs. (52)
Enterprise Relationship
The primary function is to leverage any and all corporate assets of the supplier in order to contribute to the customer’s strategic success.