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Strategic sales force management

Chapter 2. Strategic sales force management. Learning objectives. The marketing system The marketing concept and marketing management Evolution of marketing management Strategic planning. Macroenvironmental forces:

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Strategic sales force management

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  1. Chapter 2 Strategic sales force management

  2. Learning objectives • The marketing system • The marketing concept and marketing management • Evolution of marketing management • Strategic planning

  3. Macroenvironmental forces: Physical environmentDemography Economic conditions Sociocultural factors Political-legal factors Technology Competition Figure 2-1: A Company’s Complete Marketing System Company’s marketing mix: Product planning Price structure Distribution system Promotional activities Marketing intermediaries Marketingintermediaries Themarket Suppliers Nonmarketing resources in the firm: Production Financial Personnel Public image Research & devel. Location

  4. 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

  5. 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.

  6. Evolution of selling in the US • Peddlers • Canvassers • Book agents • Drummers

  7. Relationship marketing • Open communication • Empowering employees • Customers and the planning process • Working in teams • Total quality management

  8. 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

  9. 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

  10. Set Objectives 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. Formulate Strategies Develop Tactics

  11. Company Strategy – Marketing Objectives and Strategy Company Marketing Objectives Earn 20% ROI Strategy Objectives Increase marketing share 10% Increase market share 10% Strategy Increase share of customer business

  12. Marketing Strategy – Sales Force Objectives, Strategy and Tactics Marketing Sales Force Objectives Increase market share 10% Strategy Objectives Increase share of customer business Increase share of customer business Strategy Build long-term customer relations Tactics Develop sales teams Provide bonuses for greater customer share

  13. 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.

  14. 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.

  15. Summary

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