View
148.770
Download
5
Category
Tags:
Preview:
DESCRIPTION
Comprehensive PowerPoint presentation on Strategic/Tactical planning,Sales Planning Strategic and Resource Management
Citation preview
Strategic Planning
Sales Planning Strategies and Resource Management
Prepared by Larry Podgorny
Why Plan?
Alice: Which way should I go?
Cheshire Cat: That depends on where you are going.
Alice: I don’t know where I am going.
Cheshire Cat: Then it doesn’t matter which way you go!!
Lewis Carroll
1872
Through the Looking-Glass
The Plan
• In the beginning was the plan.• And then came the assumptions.• And the assumptions were with out form.• And the plan was completely without substance.• And darkness was upon the face of the workers.
Definition of Strategy/Strategic
• A careful plan or method • The art of devising or employing plans or stratagems
toward a goal• Of great importance within an integrated whole or to
a planned effect • Necessary to or important in the initiation, conduct, or
completion of a strategic plan
What Strategic Planning is Not
• Strategic planning is not forecasting• Strategic planning is not the simple application of
quantitative techniques to business planning.• Strategic planning is concerned with making
decisions today that will affect the organization (product line) and it’s future.
• Strategic planning does not eliminate risk, it helps managers access the risks they must take by gaining a better understanding of the parameters involved in their decisions.
Simplified Process of Strategic Planning
The process of strategic planning is a step-by-step approach three key questions that lie at the heart of any business strategy:
• What are you going to sell?• Who are your target customers?• How can you beat or avoid your competition?
If you can answer these three questions well, you have a strategy.
Simplified Process of Strategic Planning (Cont.)
• There’s no denying that a simplified process involves complex issues.
• The process involves digesting a lot of information and requires some fairly difficult analysis.
• Good strategic planning should be simplified not simplistic.
• Good intentions alone does not get the job done.
Simplified Process of Strategic Planning (Cont.)
• You need to see it big at first. Start at a high level.• Sift through all of the noise to get to the important
details• The next step is do the things that matter very well.• Occasionally, go back up to the high level to make
sure everything is still on course.
Simplified Process Of Strategic Planning- Start By Studying The
Way It Is Now• You need to gather basic information and facts
without making any judgments.• Based on this information you build some
assumptions, again without making judgments.• This process is the central part of the planning
process and needs to be reviewed in detail because this information is the foundation for all further strategy discussions and decisions.
Data1. External Situation2. Internal Situation3. Capabilities and
competencies
Ideas4. Assumptions
Analysis
5. Strategic assessment Strategic Issues
Direction 6. Strategies
Commitment7. Mission Statement Goals Objectives
Implementation8. Action Plans9. Budgets10. Schedules
Simplified Process of Strategic Planning- How it Works
Planning
•Gather Information•Assess Capabilities•Make Assumptions•Make Strategic Assessments•Formulate Strategy•Establish Goals and Objectives•Formulate Tentative Action Plans•Finalize Action Plans
Execution
Monitor Developments and Progress
Sales Plan
TargetAccount Strategy
KeyAccount Strategy
MaintenanceAccount Strategy
Why BotherAccount Strategy
Territory Plans
Key and Target Account Plans
Action Plans
Control & Evaluation
Shorter Term Business PlanMarket Plan
Strategic Planning
Total Organizational Planning
Marketing Information
Strategic
Tactical
Long Term Business Plan
Start by Studying the Way It Is Now
The course to your vision, like all navigation, starts with a known position.
• What markets should you pursue• Who are your competitors• Where is your competitive advantage• What are your strengths• What are your weaknessesFiguring out point A is the first essential step to charting
a course to get to point B. So get your bearings! Where are you today?
POSITIONING
Which segments / customers will we concentrate on ?
Whom will we challenge for these customers?
What incentives will we provide to get them to buy from us… rather than from competitors?
CUSTOMERTARGETS
COMPETITORTARGETS
CORESTRATEGY
BUSINESS STRENGTHS
ACCOUNTATTRACTIVENESS
High
Low
Strong Weak
DEFINING AND SELECTING KEY/TARGET ACCOUNTS
• Size• Growth• Profitability• Location• Purchasing criteria
and processes• Current suppliers• Status of customer
(prestige)
• Product range• Product efficacy (the power to produce an
effect )• Service quality (inc. distribution)• Price• Associated services (e.g. Tech advice)• Reputation/image• Past experience• Quality of sales staff• Quality of relationships
Invest / GrowSelectively
Invest
MaintainManage for
Cash / Withdraw
Strong Strength of Position Weak
High
AccountOpportunity
Low
ACCOUNT PORTFOLIO ANALYSIS
Attractiveness:Accounts are very attractive since they offer high opportunity and sales organization has strong position.
Sales call strategy:Accounts should receive a high level of sales calls since they are the sales organization’s most attractive accounts.
Attractiveness:Accounts are potentially attractive since they offer high opportunity, but sales organization currently has weak position with accounts.
Sales call strategy:Selected accounts should receive a high level of sales calls to strengthen the sales organizations position.
KEY TARGET
MAINTENANCE WHY BOTHERAttractiveness:
Accounts are somewhat attractive since sales organization has strong position, but future opportunity is limited.
Sales call strategy:Accounts should receive a moderate level of sales calls to maintain the current strength of the sales organization’s position. And, efforts should be made to replace field sales calls with telephone sales.
Attractiveness:Accounts are very unattractive since they offer low opportunity and sales organization has weak position.
Sales call strategy:Accounts should receive no field sales calls and a minimum of inside sales resources.
HighA
CC
OU
NT
AT
TR
AC
TIV
EN
ES
S
Low
Strong WeakYOUR STRENGTH OF POSITION
ACCOUNT SEGMENTATION AND PRIORITIZATION
KEY ACCOUNTS
• 10-20% of your account base
• 80% of your GP$
• Receives less than 50% of your resources
TARGET ACCOUNTS(Your competition’s Key Accounts)
MAINTENANCE ACCOUNTS WHY BOTHER? ACCOUNTS
• Gets very little attention
• 40-45% of your account base
• 10-15% of your GP$
• Receives 30-40% of your resources
• 30-40% of your account base
• Less than 5% of your GP$
• Receives 20-30% of your resources
• Creates 90% of your “headaches”
Str
on
gW
eak
AC
CO
UN
T
OP
PO
RT
UN
ITY
Strong COMPETITIVE POSITION Weak
Sales Team and Selling Effort
Sales Channel: Field Selling and Inside Sales
Selling Effort: Heavy
KEY TARGET
MAINTENANCE WHY BOTHER
Sales Channel:Major AccountPROGRAMS
Selling Effort:Heavy by Specialist Sales Channel: Direct Marketing,
Teleselling, and Field Selling
Selling Effort: Heavy (best prospects)Low (other prospects)
Sales Channel: Inside SalesField Selling andTeleselling
Selling Effort: Moderate
Sales Channel: Teleselling,Direct Marketing,and Some Inside
Selling Effort: Low
Better Understanding of Customer’s Needs
Better Selectivity
Better Selling Strategies
Better Time & Territory Management
TheSelling
Ballgame
Changing BusinessEnvironment
Leads to
Changing SellingEnvironment
Resulting in
Harder to Get and Hold Customers and
It Costs More!
Implications
PRIORITIES
Time Management
Your Scarcest Resource
TOTAL BUSINESS DAYS 2002 252Less:
• Vacation 10• Holidays 10• Personal absences 5 25
WORKING DAYS AVAILABLE IN YEAR 227Less:
• Meetings, Trade Shows, etc.• Training• Customer unavailability• Miscellaneous
TOTAL
Face-to-FaceSelling29%
Face-to-FaceSelling30%
PhoneSelling25%
PhoneSelling25%
Administration
16%
Administration
16%
Travel17%
Travel18%
HOW SALESPEOPLESPEND THEIR
TIME2001
2000
Acct. Service/
Coordination
13%
Acct. Service/Coordination
11%
The Contemporary Marketing Concept
Customer OrientationThe purpose of a business is to satisfy the needs of customers. Products and services are important only to the extent that they satisfy these needs—they are means rather than ends. Therefore, marketing starts with the determination of customer needs and ends with the repeated satisfaction of those needs.
Profit OrientationA business must satisfy the needs of its customers at an acceptable level of profitability. Therefore, the purpose of marketing is not simply to generate sales or achieve a certain market share, but rather to produce profitable sales and a profitable market share.
Integrated EffortAll activities or a business should be integrated and coordinated so as to satisfy customer needs at a satisfactory rate of profitability. Marketing must be coordinated with finance, production, personnel administration, engineering, and research and development. Moreover, all marketing activities must be effectively integrated and coordinated in order to achieve market impact.
I. Customer Change Drivers
• Raw material shortages
• Regulatory agencies
• Environmental
• Global competition
• Trade agreements (NAFTA, GATT)
• Mergers/acquisitions
• Automation/technology
• Reduction in cycle time
• “Price”
• “Quality”
• Down sizing
Customer Change Drivers (cont’d.)
• Reengineering
• Out-sourcing
• Systems versus products
• Out-sourcing of engineering and R&D to vendors
• Long term contracts (5 years)
• Sharing of warranty costs by suppliers
• EDI
• Vendor reduction
II. Purchasing Behavior/Buying Relationships
• Manage supply channel• – strategic alliances• – partnering• – customer linked strategies• – integrated supply
• National account programs
• Single source• – product breadth• – product depth
• EDI• – seamless order and delivery• – automation• – paperless
• Removal / reduction in any redundancy
• Vendor reduction
Purchasing Behavior/Buying Relationships (cont’d.)• Broader offering of “true” value added services
• Proof of performance—vendor score cards provided by vendors
• Vendor as a business consultant to account
• Problem solving vendors will be chosen
• Reduction of in-house expertise by customers
• Require modular / systems, global vendors with total quality
• Purchase “packages” of integrated components (systems) versus single components
• Better P.O.P. merchandising
III. Role of the Sales Team
• Increased speed of response• Technical value-added sales calls• Greater knowledge of customer, competition and sellers
company• Ability to make decisions (empowerment)• Relationship selling at higher level—sell the “whole”
customer• Empathy for the customer• Functional sellers
• – sales teams/sellers focused on opening accounts through “selling” creative solutions to problems
• – account managers on accounts to “service”
IV. Sales Force Issues / Problems
• Willingness to change
• Different organizational structure, e.g., Hunters and Farmers
• New skills
• Sales force automation
• Accountability / evaluation / compensation
• More specialized sellers required—currently generalists
• Total company will become a selling team—cultural change
• Shift paradigm from products to integrated solution systems
• More research at the account level
• Sharing of customer information
V. Change Areas
• International, national account perspectives
• Better technical skills
• Better research skills
• “Understanding”
• Customer specialized sales forces
Why Do Sales Organizations Become Obsolete?
Any business is good!
All Businessis good!
What business is good?
Certain business is good!
One productOne market
One product One big market
Old/new products many
markets
Redefinecustomer
segment selling
Sell tosurvive
Sell volume to lower costs
Sell volume to hold share
Optimize to get best returns
Start-upVolumegrowth Market share Optimization
Growth Evolution
I II III IV
Customer Resource Allocation Decisions
What segment(s) to call on
What volume segments to call on:
– High volume vs. low volume
– National accounts vs. smaller accounts
What profitability segments to call on: highly profitable vs. less profitable
New vs. existing accounts
High penetration vs. low penetration accounts
What geography to focus on
Headquarters vs. field calls
THE PURPOSE
Product Resource Allocation Decisions
New vs. existing products
High volume vs. low volume products
Easy to sell vs. hard to sell products
– Familiar vs. unfamiliar products
– Products with high short-term impact and low carryovers vs. products with low short-term
impact and high carryover
– High-tech products vs. low -tech products
– Long selling cycle vs. short selling cycle
– Differentiated vs. non-differentiated
– Highly competitive vs. noncompetitive
Activity Resource Allocation Decisions
Hunting vs. farming
Selling vs. servicing
Relationship expert vs. product expert vs. industry expert vs. customer expert
SALES FORCE TIME & EFFORT
SELLING PROCESSES
Where buyers experiencethe greatest challenges
EVOLUTION OFBUYING PROCESS
Planning1
Recognizing2
Searching3
Evaluating4
Selecting5
Committing6
Implementing7
Tracking8
Selling organizations get involved at different stages in the customer’s
buying process
VENDOR“Present-Handle Objections-Close”
SUPPLIERSearching through implementing
ADDED VALUE PARTNER
Entire process: Planning through tracking results
Where Sellers Focus Efforts
Sellers Boundary Role
Communication
SellingOrganization
Marketing Strategypolicies
proceduresprograms
REP
Communication
BuyingOrganization
Procurement Strategypolicies
proceduresprograms
Transactions and Relationships
1. Selling dominates learning
2. Talking dominates listening
3. Persuading the customer is product driven and benefits focused
4. The goal is to build buyers and sales through persuasion, price, presence and terms
1. Learning about the customer is intense and dominates selling
2. Listening dominates talking
3. Teaching the customer is need driven and problem focused
4. The goal is to build relationships through credibility, responsiveness, and trust
Transaction Selling Relationship Creation
TYPICAL PROCESS
Help customersrecognize and define problems and needs in a new or different way.
Show superior solutions, options, and approaches that customers may not have understood or considered.
Help customers overcome and remove obstacles to acquisition.
Make purchase painless, convenient, and hassle-free.
Recognitionof Needs
Evaluationof Options
Resolutionof Concerns Purchase
Show customers how to install and use product.
Implement-station
Customer generally
knows how to use
product.
Recognitionof Needs
Evaluationof Options
Resolutionof Concerns Purchase
Implement-station
Little or no opportunity
to create sales value.
Seller can
help make
purchase
painless,
convenient,
and hassle-
free.Little or no opportunity
to create sales value.
Customer has few
issues or concerns.
Customer already
understands alternative solutions.
Little or no opportunity
to create sales value.
Customer has already
defined needs and problems
completely.
Little or no opportunity
to create sales value.
ADDING VALUE TO A TRANSACTIONAL SALE
Seller can
create most
value early
in the
process by
helping
customers
define
needs and
solutions.
Consultative seller can
design customized solutions and help
customers make
informed choices.
Consultative seller can counsel
customers and help resolve
concerns.
Consultative seller can advise and
problem solve
implementation issues.
Recognitionof Needs
Evaluationof Options
Resolutionof Concerns Purchase
Implement-tation
ADDING VALUE TO A CONSULTATIVE SALE
Sales Call Time
5% Needs Analysis 50%
10% Problem Solving 30%
35% F/B. Presentation 15%
50% Trying to Close 5%
TYPICALSALESPEOPLE
KEY ACCOUNTSALESPEOPLE
Buying Discipline in Transition
• Tactical Purchasing Strategic Sourcing
• Regional Focus Global Focus
• Large Supplier Base Strategic Partners
• Commodity Purchases Technology Investments
• Product Focus Solution Focus
• Buying Parts Managing Processes
• Price Focus Total Cost / Value
Research Findings
• The world of selling is dynamic by customers’ changing needs and values.
• Customers are more reliant upon sellers for:
– information– advice– problem solving
• Information technology is having a major impact on customer / seller relationships.
• Total organization win, sustain, and grow customer relationships.
Implications for Salespeople
•Salespeople need to understand how to:
• Respond to the needs customers have for information, advice and problem solving.
• Create value beyond their products and services in a way that differentiates the selling organization from its competition.
• Create and manage the organization-to-organization relationship.
Sales Discipline for the 90’s
How you can…
Thinking Strategically Anticipate ways to create value for customers
Managing Information Deliver focused, usable information to customers and associates
Advancing the Relationship Increase customers’ trust in and commitment to you and your company
Orchestrating Resources Form an efficient sales team and manage it cost-effectively
Key Shift—Selling Competencies
“World Class”
• Work Processes
– Systems
• Information FlowTransactional
Selling
StrategicSelling
FUTURE
StrategicSelling
TransactionalSelling
NOW
“Bottom Line”
A business can no longer rely on the uniqueness of their
products to retain customers or grow new sales revenue.
Customers will align their business with strategic suppliers who understand their business and
bring a unique offering which adds value— impacts their “bottom line” through increased
sales revenue or reduced costs
Natural Sales Skills
60%
5%
35%
5% “Process the requisite selling skills that make them stand out”
35% “Just manage to pay their way”
60% “Just there for the beer”
Super Salesperson’s Characteristics
• Charisma in sales situation• Sense of humor• Good planning and preparation skills• Physical energy• Tenacity and resilience at rejection
Peak Sales Performers
Study of 1,500 Achievers Over 20 years
• Take risks and innovate• Powerful sense of mission• More interested in problem solving• See customers as partners• Rejection is information• Use mental rehearsal
• THE SALESPERSON OF TODAY IS EXPECTED TO:
• Do more forecasting of future customer requirements
• Spend more time planning calls
• Spend more time in group, system, and strategic selling
• Improve territory management
• Do less driving in the territory
• Spend more time in telephone selling
• Do more “active” selling
• Prepare more detailed market reports
PROFITS
The Key Challenge
Implications
1.Less discounting.
2.Selling higher margin products.
3.Selling more product lines to each customer (cross-setting).
4.Being more selective and discriminating in qualifying potential buyers.
5.Better use of selling time (deployment).
Sales Productivity =G.M.
C.O.S.
Where: G.M. = Gross Margin DollarsC.O.S. = Cost of Sale in Dollars
SALES FORCE PRODUCTIVITY
1stEffectiveness
2ndEfficiency
Productivity
Clear priorities in terms of:
• Markets• Customers• Products• Activities
And clear strategyTo drive the allocation of resources
Managing the allocation of sales resources to:
• Markets• Customers• Products• Activities
Measure the "return on investment" regularly.
=+
EFFICIENCY EFFECTIVENESS
PRODUCTIVITY
Number of doorsopened
What is doneonce in door
Components of Sales Productivity
SUMMARY
Defined Getting in front of Using skills and abilitiescustomer at minimum to maximize salescost potential
Mechanisms Working harder: Working smarter:for improving – time management – coaching
– incentives – skills training– call reports – account strategies– territory design
Measures – penetration – success rates– call rates – repeat business– cost / call – sustainable margins
Sales Efficiency Sales Effectiveness
Recommended