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BusinessBusiness--toto--BusinessBusinessMarketingMarketing

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2. Creating Value2. Creating Value

The ProcessofThe Processof

Business Channel ManagementBusiness Channel Management

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Session 8b:Session 8b:

Business ChannelManagementBusiness ChannelManagementDirect ChannelsDirect Channels

OverviewOverview

I. FieldSales Force AlternativesI. FieldSales Force Alternatives

II. DirectMarketing AlternativesII. DirectMarketing Alternatives

III. Integrated LogisticsSystemsIII. Integrated LogisticsSystems

IV. TargetedSellingIV. TargetedSelling

V. ConclusionsV. Conclusions

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Business ChannelManagementBusiness ChannelManagementDirectSellingOrganizationsDirectSellingOrganizations

RelationshipRelationship--BasedDirectSellingBasedDirectSelling

Strategic AccountManagementTeamsStrategic AccountManagementTeams

Major AccountTeamsMajor AccountTeamsNational Account ContractsNational Account Contracts

TraditionalSales ForceTraditionalSales Force

EDIEDI--Based CommerceBased Commerce

InsideSales ForceInsideSales Force

DirectMarketingGroupsDirectMarketingGroups

eCommerceeCommerce

High ProfitHigh Profit

AccountsAccounts

Low ProfitLow Profit

AccountsAccounts

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FieldSales Force Alternatives

TransactionalTransactional

Sales ForceSales Force

SystemSellingSystemSelling

TeamTeam

NationalNational

AccountsAccounts

ProgramsPrograms

StrategicStrategic

AccountAccount

ManagementManagement

High ProfitHigh Profit

AllianceAlliance

AccountsAccounts

Medium ProfitMedium Profit

TransactionalTransactional

AccountsAccounts

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FieldSales Force AlternativesFieldSales Force AlternativesTransactionalSales Force CharacteristicsTransactionalSales Force Characteristics

productorservicefocusproductorservicefocus

taskscompleted byindividualsalespersontaskscompleted byindividualsalesperson

looseconnections betweensalespersonslooseconnections betweensalespersons

territory basedwithscheduledroutesterritory basedwithscheduledroutes traditionalsellingactivitiestraditionalsellingactivities

presentationspresentations

ordertakingordertaking

problemproblem--solvingsolving

accountmaintenanceaccountmaintenance

compensationcompensation salarypluscommissionor bonusonsales quotasalarypluscommissionor bonusonsales quota

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FieldSales Force AlternativesFieldSales Force Alternatives

SystemsSelling CharacteristicsSystemsSelling Characteristics

solutionfocussolutionfocus productsandservicesthatmeetcustomerneedproductsandservicesthatmeetcustomerneed

temporaryteamstemporaryteams

onerepresentativeforeachcomponentofsystemonerepresentativeforeachcomponentofsystem

membersfromsamefunction butdifferentproductsmembersfromsamefunction butdifferentproducts

teamleaderteamleader

membersonseveralteamssimultaneouslymembersonseveralteamssimultaneously

crosscross--sellingandupsellingandup--sellingemphasizedsellingemphasized

compensationcompensation salaryplus bonus basedonteamsales quotasalaryplus bonus basedonteamsales quota

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FieldSales Force AlternativesFieldSales Force AlternativesNational Accounts Program CharacteristicsNational Accounts Program Characteristics

customizedaccountsolutionsfocuscustomizedaccountsolutionsfocus

nationalorglobalcoveragenationalorglobalcoverage

permanentthoughnominalteamspermanentthoughnominalteams accountmanagerplusregionalrepsaccountmanagerplusregionalreps

multipleaccountsand teammembershipsmultipleaccountsand teammemberships

migrationtowardcrossmigrationtowardcross--functionalteamsfunctionalteams

greaterrelationshipmanagementandlessgreaterrelationshipmanagementandlesssellingactivitiessellingactivities

ongoingandcomplicatedserviceongoingandcomplicatedservice compensationcompensation

salaryplus bonus basedonaccountsalesandactivitiessalaryplus bonus basedonaccountsalesandactivities

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FieldSales Force AlternativesFieldSales Force AlternativesStrategic AccountManagement CharacteristicsStrategic AccountManagement Characteristics

allianceactivitiesfocusallianceactivitiesfocus

permanentcrosspermanentcross--functionalteamfunctionalteam

seeksintegrationofcrossseeksintegrationofcross--functionalfunctionalactivitieswithinand betweenfirmsactivitieswithinand betweenfirms

relationshipmanagementwithminimalrelationshipmanagementwithminimalsellingselling codesigncodesign

systemsintegrationsystemsintegration

total qualitymanagementtotal qualitymanagement

EDIandMRP systemsEDIandMRP systems

compensationcompensation salaryplus bonus basedonallianceactivitiessalaryplus bonus basedonallianceactivities

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II. DirectMarketingII. DirectMarketingAlternativesAlternatives

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DirectMarketing AlternativesDirectMarketing AlternativesInsideSales ForcesInsideSales Forces

Insidesalesforceunits:Insidesalesforceunits: OrdercenterOrdercenter

TelemarketingTelemarketing

CustomerserviceCustomerservice

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DirectMarketing AlternativesDirectMarketing AlternativesDirectMarketingDirectMarketing

Directmarketingunits:Directmarketingunits:

cataloguecatalogue

internetinternet

directmaildirectmail

loyaltyprogramsloyaltyprograms

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III. Integrated LogisticsIII. Integrated LogisticsSystemsSystems

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Integrated LogisticsSystemsIntegrated LogisticsSystems

Designing LogisticsSystemsDesigning LogisticsSystems

1.1. SegmentmarketintologisticallydistinctSegmentmarketintologisticallydistinctbusinessesbusinesses

2.2. EstablishdifferentialservicestandardsEstablishdifferentialservicestandardsforeachsegmentforeachsegment

3.3. TailoruniquelogisticssystemstodeliverTailoruniquelogisticssystemstodeliverdifferentialservicesdifferentialservices

4.4. ExploiteconomiesofscaleamongtheExploiteconomiesofscaleamongthedifferentsystemsdifferentsystems

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IV. TargetedSellingIV. TargetedSelling

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TargetedSellingTargetedSellingMatchingSellingEffortstoRelationshipsMatchingSellingEffortstoRelationshipsSS

uupp

pp

ll

ii

ee

rr

II

nn

vv

ee

ss

tt

mmee

nn

tt

CustomerInvestmentCustomerInvestment

WASTEWASTEoverover--

resourcingresourcing

RISKRISKcompetitivecompetitive

vulnerabilityvulnerability

lowlow

lowlow

highhigh

highhigh

TRANSACTIONALTRANSACTIONAL

SELLINGSELLING

CONSULTATIVECONSULTATIVE

SELLINGSELLING

ENTERPRISEENTERPRISE

SELLINGSELLING

reducereduce

price&price&

costcost

createcreate

newnew

benefitsbenefits

buildbuild

extraordinaryextraordinary

valuevalue

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V. ConclusionsV. Conclusions