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Chapter 2. Strategic sales force management. Learning objectives. The marketing system The marketing concept and marketing management Evolution of marketing management Strategic planning. Macroenvironmental forces:

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Chapter 2

Chapter 2

Strategic sales force management

Learning objectives
Learning objectives

  • The marketing system

  • The marketing concept and marketing management

  • Evolution of marketing management

  • Strategic planning

Figure 2 1 a company s complete marketing system

Macroenvironmental forces:

Physical environmentDemography Economic conditions Sociocultural factors Political-legal factors Technology Competition

Figure 2-1: A Company’s Complete Marketing System

Company’s marketing mix:

Product planning Price structure Distribution system Promotional activities

Marketing intermediaries




Nonmarketing resources in the firm:

Production Financial Personnel

Public image Research & devel. Location

The marketing concept
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

Evolution of marketing management
Evolution of marketing management

  • Production orientation

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

  • Sales orientation

    • Age of the hard-sell.

  • Marketing orientation

    • The 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.

Evolution of selling in the us
Evolution of selling in the US

  • Peddlers

  • Canvassers

  • Book agents

  • Drummers

Relationship marketing
Relationship marketing

  • Open communication

  • Empowering employees

  • Customers and the planning process

  • Working in teams

    • Total quality management

Teaching teamwork
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 class

    • Drum circle

    • Military exercise

    • Outdoor adventure

    • Ropes exercise


  • …Marketing and Sales

    • Marketing executives  develop marketing strategy

    • Salespeople  implement the strategy in the field

  • …Production and Sales

    • Production makes what Sales sells

      • Close integration / accurate forecasts needed, or else…

        • Under-production  dissatisfied customers

        • Over-production  excessive, costly inventory

Strategic planning

Set Objectives

Strategic Planning

  • Objectives are the broad goals around which a strategic plan is formulated.

  • Strategies are the plans of action.

  • Tactics are the specific activities that people must perform in order to carry out the strategy.



Develop Tactics

Company Strategy – Marketing Objectives and Strategy




Earn 20% ROI



Increase marketing share 10%

Increase market

share 10%


Increase share of customer business

Marketing Strategy – Sales Force Objectives, Strategy and Tactics


Sales Force


Increase market share 10%



Increase share of customer business

Increase share of customer business


Build long-term

customer relations


Develop sales teams

Provide bonuses for greater customer share

Strategic trends
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.

Customer relationship management crm
Customer Relationship Management (CRM)

  • CRM 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 buyer-seller relationship.

    • Require training

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