STRATEGIC SALES FORCE MANAGEMENT

Chapter 2

Learning objectives

The marketing system The marketing concept and

marketing management Evolution of marketing management Strategic planning

Figure 2-1: A Company’s Complete Marketing System

Macroenvironmental forces:

Physical environmentDemography Economic conditions Sociocultural factors Political-legal factors Technology Competition

Company’s marketing mix:

Product planning Price structure Distribution system Promotional activities

Marketingintermediaries Suppliers The

market

Nonmarketing resources in the firm:

Production Financial Personnel

Public image Research & devel. Location

Marketing intermediaries

The marketing concept

A philosophy: Achieving organizational goals depends on the firm’s ability to identify the needs and wants of a target market, and then to satisfy those needs and wants better than the competition does.

Based on three fundamental beliefs Company planning and operations should be customer

or market oriented. Marketing activities in a firm should be organizationally

coordinated. The goal of the organization should be to generate

profitable sales volume over the long run

Evolution of marketing management Production orientation

Focus on mass-producing a limited variety of products for as little cost as possible.

Sales orientation Age of the hard-sell.

Marketing orientation The marketing concept first emerges.

Relationship orientation A natural extension of the marketing-orientation

stage. The buyer and seller commit to doing business over

a long time.

Evolution of selling in the US Peddlers Canvassers Book agents Drummers

Relationship marketing

Open communication

Empowering employees

Customers and the planning

process

Working in teams Total quality management

Teaching teamwork

In your opinion, which one of these (if any)

would be most effective at teaching a

salesperson how to be an effective member of

a selling team? Cooking class

Drum circle

Military exercise

Outdoor adventure

Ropes exercise

Integrating… …Marketing and Sales

Marketing executives develop marketing strategy

Salespeople implement the strategy in the field

…Production and Sales Production makes what Sales sells

Close integration / accurate forecasts needed, or else… Under-production dissatisfied customers Over-production excessive, costly inventory

Strategic Planning

Objectives are the

broad goals around

which a strategic plan is

formulated.

Strategies are the

plans of action.

Tactics are the specific

activities that people

must perform in order to

carry out the strategy.

Set Objectives

Formulate

Strategies

Develop Tactics

CompanyCompany

MarketingMarketing Objectives

Strategy

Increase marketing share 10%

Company Strategy –Marketing Objectives and Strategy

Company Strategy –Marketing Objectives and Strategy

Earn 20% ROI

StrategyIncrease share of customer business

Increase marketshare 10%

Objectives

MarketingMarketing

Sales ForceSales Force

Strategy Increase share of customer business

Marketing Strategy –Sales Force Objectives, Strategy and

Tactics

Marketing Strategy –Sales Force Objectives, Strategy and

Tactics

Increase share of customer business

StrategyBuild long-term

customer relations

TacticsDevelop sales teams

Provide bonuses for greater customer share

Increase market share 10%

Objectives

Objectives

Strategic Trends

Internet Selling Multiple Sales Channels Multiple Relationship Strategies

Transaction selling Consultative selling

In this era of global warming, toxic waste, pollution, and other concerns, marketing executives must act in a socially responsible manner if they wish to succeed or even survive.

Customer Relationship Management (CRM)

CRM practices Involve a company-wide software application

utilizing advanced computer- and Internet-technology.

Aggregate all information about customers into a single database.

Provide salespeople/customers access to timely and relevant information.

Allow effective management of every aspect of the buyer-seller relationship.

Require training Only effective if salespeople embrace it and are willing to use

it.

Summary