Organizational Strategiesand The Sales Function

Learning 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.

Learning Objectives

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.

Learning Objectives

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 advantages and disadvantages of different sales channel strategies.

Organizational Strategy Levels

Developing a Corporate Strategy

1. Analyze the corporate situation to identify potential opportunities and threats

2. Determine corporate mission and objectives

3. Define strategic business units

4. Set objectives and resource allocation for each strategic business unit

Corporate Mission Statement

Strategic Business Unit (SBU)

A designated unit

within a corporation

that operates like

an individual

business.

Generic Business Strategies and Salesforce Activities

• Service large current customers

•Pursue large prospects

•Minimize costs; sell on the basis of price

Low-cost supplier

•Compete on non-price benefits

•Provide high quality customer service

• Seek customers who are not low price shoppersDifferentiation

• Serve a distinct target market not served well by others

•Provide high quality customer service

• Seek customers who are not low price shoppersNiche

Marketing Strategy & Personal Selling

Personal Selling-Driven vs. Advertising-DrivenMarketing Communications Strategies

PersonalSelling – Driven

• Message Flexibility is Important

• Message Timing is Important

• Reaction Speed is Important

• Message Credibility is Important

• Trying to Close the Sale

Advertising – Driven

• Low Cost per Contact is Important

• Repetitive Contact is Important

• Control of Message is Important

• Audience is Large

Targeting Market Characteristics & Marketing Communications Strategy

Integrated Marketing Communications

The strategic integration of multiple

marketing communications tools

communicating a consistent

message in the most effective

and efficient manner.

Gopro.com

Marketing and Sales Activities

Organizational Buyer Behavior: Buying Situations

• Extensive Problem Solving

• Greater RiskNew Task

• Limited Problem Solving

• Moderate Risk

Modified Rebuy

• Routinized Response Behavior

• Lower Risk

Straight Rebuy

Sales Strategy Framework

Types of Organizations

Organizational Buyer Behavior: Buying Center

• Initiators

• Users

• Gatekeepers

• Influencers

• Deciders

• Purchasers

Organizational Buyer Behavior:Buying Process

Phase 8: Performance Feedback/Evaluation

Phase 7: Selection of Order Routine

Phase 6: Evaluate Proposals/Select Suppliers

Phase 5: Acquire and Analyze Proposals

Phase 4: Identify and Qualify Potential Sources

Phase 3: Specify Item Specs/Quantity Needed

Phase 2: Determine Item Specs/Quantity Needed

Phase 1: Recognize Problem/Need

Four Basic Sales Strategy Elements

Account Targeting

Selling

Relationship

Sales Channel

Sales Strategy:Account-Targeting Strategy

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

Account Targeting

Relationship

Selling

Sales Channel

Sales Strategy:Relationship Strategy

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

Account Targeting

Relationship

Selling

Sales Channel

Characteristics of Relationship Strategies

Relationship Strategy Selling Costs

Sales Strategy: Selling Strategy

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

Account Targeting

Relationship

Selling

Sales Channel

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

Account Targeting

Relationship

Selling

Sales Channel

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

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

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

Independent Representatives vs. Company Salesforce - Costs

Sales Channel Strategy: Team Selling

Multiple individuals from the selling organization working together to develop and expand relationships with one or more accounts.

Team Selling and the Buyer Center

Sales Channel Strategy: Telemarketing

Using the telephone as a means of customer contact. 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

• 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:

Channel Conflict

Occurs when the

interests of different

channels or are not

consistent.