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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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Strategic sales force management

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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

Marketingintermediaries

Themarket

Suppliers

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


Integrating

Integrating…

  • …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.

Formulate

Strategies

Develop Tactics


Strategic sales force management

Company Strategy –Marketing Objectives and Strategy

Company

Marketing

Objectives

Earn 20% ROI

Strategy

Objectives

Increase marketing share 10%

Increase market

share 10%

Strategy

Increase share of customer business


Strategic sales force management

Marketing Strategy –Sales 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


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.


Summary

Summary


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