Sales Management Week 1 Note: This lecture draws heavily from the content in the textbook: Sales Management (Analysis and Decision Making), 6th Edition, Ingram et al.
Agenda • Confirm Teams and Dates • Case Discussions • 2.1 & 2.2 • Review Expected Learning Outcomes: • Outline #2, 3, 5
Describing the Personal Selling Function Defining the Strategic Role of the Sales Function Developing the Sales Force Directing the Sales Force Sales Management Model Determining Sales Force Effectiveness and Performance
SBU • Strategic Business Unit • Single product or brand, a product line, or a mix of products that • Meet a common market need and • Unit management is responsible for most of the basic business functions • E.g. Checkout www.rohmhaas.com for recent SBU restructuring
Corporate Strategy Process • Analyze corporate performance and identify opportunities and threats • Determine corporate mission and objectives • Define strategic business units • Set objectives for each strategic business unit
Business Strategy Types • Low Cost Supplier • Differentiation • Niche What is the Role of the Salesforce?
Marketing Strategy • Must be consistent with Business Strategy of SBU • Goal: Develop a marketing mix that satisfies the needs of the target market better than competitive offerings. • Marketing Strategy • …Marketing Mix • ….Marketing Communications • ….. Personal Selling • …. SALES STRATEGY
Personal Selling • Major Advantage • Message more credible and timely • Major Disadvantage • High cost and people management overhead
Group Exercise • Specify the situations in which personal selling is typically emphasized in a marketing strategy? • How would sales management strategies differ for an SBU or company following a growth strategy versus a harvest strategy? • Is Personal Selling an element of Yahoo’s Marcom strategy?
Where are We • “Corporate, business and marketing strategies view customers as aggregate segments. • These organization strategies provide direction and guidance for the sales function. • Sales managers and sales people must translate these into specific strategies for each individual customer.”
Sales Strategy • Executes a marketing strategy for individual accounts. • Develops a specific approach for selling to individual accounts within a target market.
Account Targeting BuyingSituation Strategy Relationship BuyingCenter Strategy Sales Organizational Account Salesperson Strategy Buyer Behavior Sales Channel BuyingProcess Strategy Selling Buying Needs Strategy The Sales Strategy Framework
Sales Strategy • Account targeting • All accounts can not be effectively and efficiently served in the same way • Organizational buyer behavior is a driving force • Relationship • Relationship orientation between buyers and sellers • Per account group • Transaction ----- Collaborative • Selling Approach • Planned selling approach for each selected relationship strategy • Depends on the specific relationship strategy • Stimulus Response to Consultative • E.g. if relationship is transaction then stimulus response/mental states… • Sales Channel • How to provide selling effort coverage to customers • Field force but there are others
Account Targeting • IBM SOHO • Largest customers who have complex needs • Smaller customer who did not need much attention • New customers • Very small customers • Why would sales management do this?
High Cost to Serve Solutions Partnership Collaborative Transaction Low Commitment High Matching Selling andRelationship Strategies
Relationship • Exhibit 3.8 • Figure 3.5
Selling Strategy • Exhibit 3.9
Sales Channels • Internet • Industrial Distributors • Independent Representatives • Team Selling • Telemarketing
Exercise #2 • P. 74 #2 • You are the sales manager for WorldPub, a textbook publishing company. You believe it would be a good idea to get involved in the Internet to help move your company’s line of college business textbooks. Discuss your sales strategy for using the Internet and other channels to sell textbooks?