organizational strategies and the sales function module three
TRANSCRIPT
Organizational Strategiesand The Sales Function
Organizational Strategiesand The Sales Function
Module Three
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Learning ObjectivesLearning 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.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Learning ObjectivesLearning 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.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Learning ObjectivesLearning Objectives
6. Discuss the important concepts behind organizational buyer behavior.
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 sales channel strategies.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Learning ObjectivesLearning 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.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Setting the StageSetting the Stage
1. The vignette refers to a dealer who uses a CRM application to keep track of 90,000 customers. What information does that dealer track?
2. How does management use that data?
Customer Relationship Management (CRM) and the Sales Function: Deere & Company
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Corporate Strategy
Corporate MissionSBU DefinitionSBU Objectives
Corporate Management
Sales Strategy
Strategy TypesStrategy Execution
SBU Management
Strategy Level
Key Decision Areas
KeyDecision Makers
Organizational Strategy LevelsOrganizational Strategy Levels
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Strategy Level
Key Decision Areas
KeyDecision Makers
Marketing Strategy
Corporate Management
Target Market Selection
Marketing Mix Dev.
Integrated Mkt Comm.
Business Strategy
SBU Management
Account Targeting StrategySales Channel StrategyRelationship Strategy
Organizational Strategy LevelsOrganizational Strategy Levels
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Corporate Strategy Development ProcessCorporate Strategy
Development 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
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Definition ofStrategic Business Units (SBUs)
Definition ofStrategic Business Units (SBUs)
Cravens (1991)
An SBU is a single product or brand, a line of products, or a mix of related products that meets a common market need or a group of related needs, and the unit's management is responsible for all (or most) of the basic business functions."
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Salary plus incentive
Prospective and new accounts
Provide high service levels
particularly pre-sales service
Product/market feedback
Build salesvolume; Secure
distribution
Build
SBU Objectives andthe Sales Organization
SBU Objectives andthe Sales Organization
Compensation System
PrimarySales Tasks
Sales Organization Objectives
Market Share Objectives
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Compensation System
PrimarySales Tasks
Sales Organization Objectives
Market Share Objectives
Salary plus commission or
bonus
Call on targeted current accounts
Incr. service levels to current
accounts
Call on new accounts
Maintainsales volume
Consolidate market position
through concentration
on targeted segments
Secure additional outlets
Hold
SBU Objectives andthe Sales Organization
SBU Objectives andthe Sales Organization
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Compensation System
PrimarySales Tasks
Sales Organization Objectives
Market Share Objectives
Salary plus bonus
Service most profitable accounts
eliminate unprofitable
accounts
Reduce service levels and/or
inventories levels
Reduce selling costs
Target profitable accounts
Harvest
SBU Objectives andthe Sales Organization
SBU Objectives andthe Sales Organization
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Compensation System
PrimarySales Tasks
Sales Organization Objectives
Market Share Objectives
SalaryDump inventory
Eliminate service
Minimize selling costs and clear out inventory
Divest or Liquidate
SBU Objectives andthe Sales Organization
SBU Objectives andthe Sales Organization
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Business Strategy andthe Sales Function
Business Strategy andthe Sales Function
• Low-cost supplier
• Differentiation
• Niche
Pursue large customers
Minimize cost
Compete on price
Seek customers who are low price shoppers
Compete on non-price benefits
Provide high quality customer service
Seek customers who are not low price shoppers
Serve a distinct target market not served well
by others
Provide high quality customer service
Seek customers who are not low price shoppers
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Personal Selling-Driven vs. Advertising-DrivenMarketing Communications Strategies
Personal Selling-Driven vs. Advertising-DrivenMarketing Communications Strategies
When Message Flexibility is ImportantWhen Message Timing is ImportantWhen Reaction Speed is ImportantWhen Message Credibility is ImportantWhen Trying to Close the Sale
When Low Cost per Contact is ImportantWhen Repetitive Contact is ImportantWhen Control of Message is ImportantWhen Audience is Large
Personal Selling
Advertising
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Target Market Situations andPersonal Selling
Target Market Situations andPersonal Selling
Target Market:A definition of the specific market segment to be served
Personal Selling-Driven Promotional Strategies are appropriate when:
– The market consists of only a few buyers that tend to be concentrated in location
– The buyer needs a great deal of information– The purchase is important– The product is complex– Service after the sale is important
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Integrated Marketing CommunicationsIntegrated Marketing Communications
The strategic integration of multiple marketing communications tools communicating a consistent message in the most effective and efficient manner.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
BuyingSituation
BuyingCenter
Organizational
Buyer BehaviorAccount
BuyingProcess
BuyingNeeds
Account Targeting
Strategy
Relationship
Strategy
SalespersonSales
Strategy
Sales Channel
Strategy
Selling
Strategy
The Sales Strategy FrameworkThe Sales Strategy Framework
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Business or Industrial
Organizations
Major Category Types
Users: purchase products and services to produce
other products and services
Organizational Buyer Behavior:Types of Organizations
Organizational Buyer Behavior:Types of Organizations
Original Equipment Manufacturers (OEM): purchase products to
incorporate into products
Resellers: purchase products to sell
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Major Category Types
Government Organizations
Federal, State, and Local Government
Agencies
Organizational Buyer Behavior:Types of Organizations
Organizational Buyer Behavior:Types of Organizations
Public and Private InstitutionsInstitutions
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Organizational Buyer Behavior: Buying Situations
Organizational Buyer Behavior: Buying Situations
Straight Rebuy Buying Situation– Routinized Response Behavior
Modified Rebuy Buying Situation– Limited Problem Solving
New Task Buying Situation– Extensive Problem Solving
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Organizational Buyer Behavior: Buying Center
Organizational Buyer Behavior: Buying Center
• Initiators
• Users
• Gatekeepers
• Influencers
• Deciders
• Purchasers
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Organizational Buyer Behavior:Buying Process
Organizational Buyer Behavior:Buying Process
Phase 1: Recognize Problem/Need
Phase 2: Determine Item Specs/Quantity Needed
Phase 3: Specify Item Specs/Quantity Needed
Phase 4: Identify and Qualify Potential Sources
Phase 5: Acquire and Analyze Proposals
Phase 6: Evaluate Proposals/Select Suppliers
Phase 7: Selection of Order Routine
Phase 8: Performance Feedback/Evaluation
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Control Cost in Product Use Situation
Few Breakdowns of Product
Dependable Delivery for Repeat Purchases
Adequate Supply of Products
Cost within Budget Limits
Want a Feeling of Power
Seek Personal Pleasure
Desire Job Security
Want to be Well Liked
Want Respect
Personal Goals Organizational Goals
Personal and Organizational NeedsPersonal and Organizational Needs
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Strategy:Account-Targeting Strategy
Sales Strategy:Account-Targeting Strategy
The classification of accounts withina target market into categories forthe purpose of developing strategic approaches for selling to each account or account group.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Strategy:Relationship Strategy
Sales Strategy:Relationship Strategy
A determination of the type of relationship to be developed with different account groups.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Transaction Solutions Partnership Collaborative
Characteristics of Relationship Strategies
Characteristics of Relationship Strategies
Goal Sell Products Add Value
Time Frame
Short Long
Offering Standardized Customized
Number of Customers
Many Few
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Strategy: Selling Strategy Sales Strategy: Selling Strategy
A planned selling approach for each relationship strategy. Developing efficient and effective selling strategies is an important sales management task.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Matching Selling andRelationship StrategiesMatching Selling and
Relationship Strategies
Transaction
Solutions
Partnership
Collaborative
Commitment
Cost to
Serve
HighHigh
HighHigh
LowLow
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Strategy: Sales Channel Strategy
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
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Channel Strategy: The Internet
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
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Channel Strategy:Industrial Distributors
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
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Channel Strategy: Independent or Manufacturers’ Reps
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
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Channel Strategy: Team Selling
Sales Channel Strategy: Team Selling
Multiple individuals from the selling organization working together to develop and expand relationships with one or more accounts. The salesperson typically coordinates the team’s selling efforts.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Channel Strategy: Telemarketing
Sales Channel Strategy: Telemarketing
Using the telephone as a means of customer contact. This low-cost method of customer relationship management may replace field sales force for certain accounts. 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
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Sales Channel Strategy: Trade Shows
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: