Part I THE BIG PICTURE

1. Part ITHE BIG PICTURE Chapter 2: Strategy and Sales Program Planning

2. Customer Relationship Management (CRM) Go-to-Market Strategy LEVEL 2 Strategy Implementation Decisions Product Development Management (PDM) Supply Chain Management (SCM) Sales Process Activities Structure LEVEL 3 Sales Force Program Decisions Account Relationship Strategy Competencies Leadership LEVEL 1 Top Management Decisions Business Strategy Marketing Strategy Figure 2-1 The Sales Force Decision Sequence

3. Environmental constraints Legal & regulatory Demographics Economic Conditions Technology Competitive conditions Sociocultural factors Resources Financial R&D Personnel Brand Equity Production Distinct competencies Marketing Financial Technology Information Firm’s history management culture Figure 2-2: Factors Influencing Strategic Management Strategic Management Planning

4. Corporate goals Increase shareholder wealth by 10% Business unit objectives 12% revenue growth Grow pre-tax profits by 18% Marketing objectives Increase product A’s market share by 2 points Grow contributions after sales & marketing by 20% Sales department objectives Achieve sales revenue of $210 million Grow contributions after sales expenses by 25% Sales district objective Achieve sales revenue of $10.5 million in product A Obtain $7 million contributions after direct selling Salesperson objective Achieve sales revenues of $1.2 million in product A Obtain $0.8 million in gross margin dollars Figure 2-3: Hierarchy of Sales Objectives Major account objective Achieve sales revenues of $95,000 in product A Obtain an average gross margin of 80%

6. Steps in Developing a Go-to-Market Strategy • What is the best way to segment the market? • What are the essential activities required by each segment? • What group of go-to-market participants should perform the essential activities? • Which face-to-face selling participants should be used? Figure 2-5:

7. Post-Purchase Pre-Purchase Purchase Figure 2-6 Essential Activities Interest Creation

8. Direct Sales Force Agents Distributors Retailers Integrators Alliances Advertising Promotion Direct Mail Tele- marketing Internet Non-Sales Force Options Sales Force Options Direct Indirect Figure 2-7 Potential Go-to-Market Participants Customers and Prospects Company

9. Advertising Direct Mail Internet Telemarketing Figure 2-8 Comparing Various Go-to-Market Alternatives Low Cost per Exposure Efficiency Sales Force High Sales per Exposure Effectiveness

10. Figure 2-9 Product Development Management Subprocesses Identify customer needs for better solutions Discovering and designing new product solutions Developing new solution prototypes Managing internal departmental priorities and involvement Designing activities to speed-up development process Launching new and redesigned offerings

11. Figure 2-10 Supply Chain Management Subprocesses Selecting and managing supplier relationships Managing inbound logistics Managing internal logistics Managing outbound logistics Designing product assembly and batch manufacturing Managing process technology Order, pricing, and terms management Managing channel partners Managing product installation and maintenance

12. Figure 2-11 Customer Relationship Management Subprocesses Identifying high value prospects Learning about product usage and application Developing and executing advertising and promotion programs Developing and executing sales programs Developing and executing customer service programs Acquiring and leveraging customer contact information systems Managing customer contact teams Enhancing trust and customer loyalty Cross-selling and upselling of offerings

14. Enterprise Relationship Investment by Supplier Consultative Relationship Transactional Relationship Investment by Customer Figure 2-13: Alternative Types of Account Relationships

15. Figure 2-14: Partnering Effectiveness Index