Chap 002

2-1

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

2

2-2

Strategic Sales Force Management You got to be very careful if you don’t know where you’re going, because you might not get there. Yogi Berra

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Figure 2-1:

A company’s complete marketing system

2-3

Macroenvironmental forces: Demography Economic conditions Sociocultural factors Political-legal factors Technology Competition Company’s marketing mix:

Suppliers

Marketing intermediaries

Product planning Price structure Distribution system Promotional activities

Marketing intermediaries

Nonmarketing resources in the firm: Production Financial Personnel

Public image Research and Development Location

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

The market

2-4

The Marketing Concept A

philosophy: Achieving organizational goals depends on the firm’s ability to identify the needs and wants of a target market, and then to satisfy those needs and wants better than the competition does.

Based

on three fundamental beliefs

 Company

planning and operations should be customer or market oriented.  Marketing activities in a firm should be organizationally coordinated.  The goal of the organization should be to generate profitable sales volume over the long run. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Evolution of Marketing Management Production

2-5

orientation

 Focus

on mass-producing a limited variety of products for as little cost as possible.

Sales  Age

orientation of the hard-sell.

Marketing  The

orientation

marketing concept first emerges.

Relationship

orientation

A

natural extension of the marketing-orientation stage.  The buyer and seller commit to doing business over a long time. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2-6

Figure 2-3 How do these selling styles depicted in this 1927 cartoon relate to the four stages in the evolution of marketing management? Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Relationship Marketing: Four key issues Open

communication

Empowering Customers Working Total

employees

and the planning process

in teams

quality management

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2-7

2-8

Teaching Teamwork In

your opinion, which one of these (if any) would be

most effective at teaching a salesperson how to be an effective member of a selling team?  Cooking  Drum

class

circle

 Military

exercise

 Outdoor  Ropes

adventure

exercise

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2-9

Integrating… …Marketing

and Sales

 Marketing

executives  develop marketing strategy  Salespeople  implement the strategy in the field …Production  Production  Close

and Sales

makes what Sales sells

integration / accurate forecasts needed, or else…

Under-production  dissatisfied customers  Over-production  excessive, costly inventory 

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2-10

Strategic Planning  Objectives

Set Objectives

are the broad

goals around which a strategic plan is formulated.  Strategies

are the plans of

Formulate Strategies

action.  Tactics

are the specific

activities that people must perform in order to carry out the strategy. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Develop Tactics

2-11

Company StrategyMarketing Objectives and Strategy

Company Objectives

Marketing

Earn 20% ROI

Strategy Increase marketing share 10%

Objectives Increase market share 10%

Strategy Increase share of customer business

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2-12

Marketing StrategySales Force Objectives, Strategy and Tactics

Marketing Sales Force

Objectives Increase market share 10%

Strategy

Objectives

Increase share of customer business

Increase share of customer business

Strategy Build long-term customer relations

Tactics

Develop sales teams Provide bonuses for greater customer share Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2-13

Strategic Trends Internet

Selling Multiple Sales Channels Multiple Relationship Strategies  Transaction

selling  Consultative selling

In

this era of global warming, toxic waste, pollution, and other concerns, marketing executives must act in a socially responsible manner if they wish to succeed or even survive.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

Customer Relationship Management CRM

2-14

practices

 Involve

a company-wide software application utilizing advanced computer- and Internet-technology.  Aggregate all information about customers into a single database.  Provide salespeople/customers access to timely and relevant information.  Allow effective management of every aspect of the buyerseller relationship.  Require training  Only

effective if salespeople embrace it and are willing to use it.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.