Sales Management Chapter 3

Corporate Strategy
Decisions that determine the mission, business strategy, and future growth directions for the company
Marketing Strategy
selection of target market segments and the development of a marketing mix to serve each target market
Corporate Mission Statement
provides direction for strategy development and execution throughout the organization
Companies that have a mission statement?
20%
Strategic Business Unit (SBU)
parts of a corporation into parts to facilitate strategic analysis and planning
Corporate Strategy
Decisions at the topmost levels of multibusiness corporations provide guidance for strategy development at lower organization levels
Business Strategy
competitive advantage against competition
3 types of business strategy
Low Cost Supplier
Differentiation
Niche
Customer Relationship Management
Strategy resulting in developing the most appropriate relationship with a customer
Target Market
a specific market or segment to be served
Marketing Mix
satisfies the needs of the target market better than competitive offerings
Personal Selling
personal communications between buyer and seller
Integrated Marketing Communication
strategic integration of multiple marketing communication tools in the most effective and efficient manner
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
New Task Buying Situation
purchase for the first time
modified rebuy situation
previously purchased products however may require additional information and possibly make changes
straight rebuy situation
considerable knowledge and has purchased the product before and is currently satisfied
Buying Center
an informal network of purchasing participants
Buying Center Roles
Initiators
Users
Gatekeepers
Influencers
Deciders
Purchasers
initiators
start the organizational purchasing process
Gatekeepers
control the flow of information between buying center members
Influencers
provide input for the purchasing decision
deciders
make the final purchase decision
purchasers
implement the purchasing decision
Strategic Decision Authority
Granted to Sales managers and salespeople responsible at the account level
Account Targeting Strategy
Classification of accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account
Relationship Strategy
determination of the type of relationship to be developed with different account groups
Selling Strategy
a planned selling approach fr each relationship strategy
Relationship Strategies 4 approaches
Transaction Relationship
Solution Relationship
Partner Relationship
Collaborative Relationship
Sales Channel Strategy
ensure accounts receive selling effort coverage in an effective and efficient manner
Distributors
Channel middle men that take title to the goods that they market to end users
Independent representatives
sell complementary, but noncompeting products from different manufactures. Do not take title of goods they sell
Telemarketing(Telesales)
use of the telephone as a means to customer contact, to preform some of if not all of the required activities to maintain the account relationship
Trade Shows
Industry Sponsored event where companies use a booth to display products or services
Channel Conflict
Interests of different channels are not consistent