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8/3/2019 6e SM Module03
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Organizational Strategies
and The Sales Function
Organizational Strategies
and The Sales Function
Module Three
8/3/2019 6e SM Module03
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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 businessstrategy decisions affect the sales function.
3. Lists the advantages and disadvantages of
personal selling as a marketing
communications tool.
8/3/2019 6e SM Module03
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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.
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Learning ObjectivesLearning Objectives
6. Discuss the important concepts behindorganizational buyer behavior.
7. Define an account targeting strategy.8. Explain the different types of relationships
strategies.
9. Discuss the importance of different sellingstrategies.
10. Describe the sales channel strategies.
8/3/2019 6e SM Module03
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Learning ObjectivesLearning Objectives
4. Specify the situations in whichpersonal selling is typically
emphasized in a marketing strategy.5. Describe ways that personal selling,
advertising, and other tools can beblended into effective integratedmarketing communications programs.
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Corporate
Strategy
Corporate MissionSBU Definition
SBU Objectives
Corporate
Management
Sales
Strategy
Strategy Types
Strategy Execution
SBU
Management
Strategy
Level
Key
Decision Areas
Key
Decision Makers
Organizational Strategy LevelsOrganizational Strategy Levels
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Strategy
Level
Key
Decision Areas
Key
Decision Makers
Marketing
StrategyCorporate
Management
Target Market Selection
Marketing Mix Dev.
Integrated Mkt Comm.
Business
Strategy SBUManagement
Account Targeting Strategy
Sales Channel StrategyRelationship Strategy
Organizational Strategy LevelsOrganizational Strategy Levels
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Corporate Strategy
Development Process
Corporate Strategy
Development Process
Analyze corporate performance and
identify opportunities and threats Determine corporate mission and
objectives
Define strategic business units
Set objectives for each strategicbusiness unit
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Definition of
Strategic Business Units (SBUs)
Definition of
Strategic Business Units (SBUs)
Cravens (1991)
An SBU is a single product or brand, a
line of products, or a mix of relatedproducts 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."
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Salary plus
incentive
Prospective and
new accountsProvide high
service levels
particularly pre-
sales service
Product/market
feedback
Build sales
volume; Securedistribution
Build
SBU Objectives and
the Sales Organization
SBU Objectives and
the Sales Organization
Compensation
SystemPrimary
Sales Tasks
Sales
Organization
Objectives
Market Share
Objectives
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Compensation
SystemPrimary
Sales Tasks
Sales
Organization
Objectives
Market Share
Objectives
Salary plus
commissionor bonus
Call on targeted
current accountsIncr. service
levels to current
accounts
Call on new
accounts
Maintain
sales volumeConsolidate
market position
through
concentration
on targeted
segments
Secure additional
outlets
Hold
SBU Objectives and
the Sales Organization
SBU Objectives and
the Sales Organization
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Compensation
SystemPrimary
Sales Tasks
Sales
Organization
Objectives
Market Share
Objectives
Salary plus
bonus
Service most
profitable
accounts
eliminate
unprofitable
accounts
Reduce servicelevels and/or
inventories levels
Reduce selling
costs
Target profitable
accounts
Harvest
SBU Objectives and
the Sales Organization
SBU Objectives and
the Sales Organization
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Compensation
SystemPrimary
Sales Tasks
Sales
Organization
Objectives
Market Share
Objectives
SalaryDump inventory
Eliminate service
Minimize selling
costs and clear
out inventory
Divest or
Liquidate
SBU Objectives and
the Sales Organization
SBU Objectives and
the Sales Organization
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Business Strategy and
the Sales Function
Business Strategy and
the Sales Function
Low-cost supplier
Differentiation
Niche
Pursue large customers
Minimize cost
Compete on price
Seek customers who are
low price shoppers
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Personal Selling-Driven vs. Advertising-Driven
Marketing Communications Strategies
Personal Selling-Driven vs. Advertising-Driven
Marketing Communications Strategies
When Message Flexibility is Important
When Message Timing is Important
When Reaction Speed is Important
When Message Credibility is ImportantWhen Trying to Close the Sale
When Low Cost per Contact is Important
When Repetitive Contact is Important
When Control of Message is Important
When Audience is Large
Personal Selling
Advertising
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Target Market Situations and
Personal Selling
Target Market Situations and
Personal Selling
Target Market:A definition of the specific market segment to be served
Personal Selling-Driven Promotional Strategies areappropriate 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
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 toolscommunicating a consistent
message in the most effective and
efficient manner.
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Buying
Situation
Buying
Center
Organizational
Buyer Behavior Account
Buying
Process
Buying
Needs
AccountTargeting
Strategy
Relationship
Strategy
SalespersonSales
Strategy
Sales Channel
Strategy
Selling
Strategy
The Sales Strategy FrameworkThe Sales Strategy Framework
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 produceother products and services
Organizational Buyer Behavior:
Types of Organizations
Organizational Buyer Behavior:
Types of Organizations
O riginal Equipment
Manufacturers ( O EM):
purchase products to
incorporate into products
R esellers: purchase
products to sell
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Major Category Types
GovernmentOrganizations
F ederal, State, and
Local Government Agencies
Organizational Buyer Behavior:
Types of Organizations
Organizational Buyer Behavior:
Types of Organizations
Public and Private Institutions
Institutions
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 NeededPhase 4: Identify and Qualify Potential Sources
Phase 5: Acquire and Analyze Proposals
Phase 6: Evaluate Proposals/Select Suppliers
Phase 7: Selection of Order RoutinePhase 8: Performance Feedback/Evaluation
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 within
a target market into categories for the purpose of developing strategic
approaches for selling to each account
or account group.
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 relationshipto be developed with different account
groups.
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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
FrameShort Long
Offering Standardized Customized
Number of
CustomersMany Few
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 eachrelationship strategy. Developing
efficient and effective selling strategies is
an important sales management task.
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional Selling: A Trust-Based Approach
Module 3:Organizational Strategies and the Sales Function
Matching Selling and
Relationship Strategies
Matching Selling and
Relationship Strategies
Transaction
Solutions
Partnership
Collaborative
Commitment
Costto
Serve
HighHigh
HighHigh
LowLow
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 effortcoverage in an effective and efficient
manner. Sales channel options include: ± The Internet
± Industrial Distributors
± Independent Representatives
± Team Selling
± Telemarketing ± Trade Shows
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 NormallyCarry Inventory
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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-competingmanufacturers.
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
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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 developand expand relationships with one or more
accounts. The salesperson typically
coordinates the team¶s selling efforts.
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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
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Ingram LaForge AvilaSchwepker Jr. Williams
Professional 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:
Recommended