INTRODUCTION TO ENVIRONMENT & STRATEGIC PLANNING Your Personal Selling Plan

1. INTRODUCTION TO ENVIRONMENT & STRATEGIC PLANNINGYour Personal Selling Plan BA 3750 SALES MANAGEMENT L.P. Chew

2. Demographic- Economic Environment Technological- Natural Environment Marketing Intermediaries Marketing Analysis Marketing Planning Product Target Consumers Place Suppliers Publics Price Promotion & Politics Marketing Implementation Marketing Control Political- Legal Environment Social- Cultural Environment Competitors The Marketing Process

3. Environment of Marketing & Sales Management 5 Parts of Environment • Controllable Factors • Uncontrollable Factors • Organization’s Level of Success/Failure in Reaching Objectives • Feedback • Adaptation Controllable Factors Uncontrollable Factors Organization’s Level of Success Adaptation Feedback

4. Environment of Marketing & Sales Management (2) Uncontrollable Factors (3) Consumers (1) Organization’s Level of Success or Failure in Reaching Its Objectives Competition Controllable Factors Suppliers & Distributors B Government By Top Management A Economy Technology (5) Independent Media By Marketing Adaptation (4)Feedback A - Total offering of the organization B - Impact of uncontrollable factors

5. Types of Environments • Macroenvironmentrefers to the broad demographic, societal, economic, political, and technological forces that an organization faces. • Microenvironmentrefers to the forces close to an organization that have a direct impact on its ability to serve its customers

6. Top Management Controls • 1. Line of Business • General category • Functions • Geographic coverage • Type of ownership • Specific business • 5. Corporate Culture • Customer-service orientation • Time orientation • Flexibility • Risk/innovativeness • Centralized/ decentralized • Interpersonal contact • Promotions from within • 4. Role of Other Business Functions • Production • Finance • Accounting • Engineering • Purchasing • Research & development • 2. Overall Objectives • Sales • Profit • Long-run existence • Consumer acceptance • 3. Role of Marketing • Importance in company • Functions • Integration

7. Uncontrollable Factors • Independent Media • Print • Television • Radio • News organizations • Technology • Advances • Compatibility • Acceptance • Consumers • Changing characteristics • Interpersonal influences • Decision process • Organizations Factors Not Controlled by Top Management or Marketers • Competition • Structure • Marketing strategies • Domestic/foreign • Company size • Generic • Channel • Economy • Rate of growth • Costs • Inflation rate • Unemployment rate • Suppliers & Distributors • Characteristics • Practices • Resource shortages • Government • Federal • State & local • Politics

8. Marketing Directs • 1. Selection of Target Market • Size • Characteristics • Desires • 3. Marketing Organizations • Functions • Types • 5. Performance Assessment • Day-to-day • Periodic • 2. Marketing Objectives • Image • Sales • Profit • Differential advantages • 4. Marketing Mix • Product • Distribution • Promotion • Price

9. Key Environments Marketing Environment • The actors and forces that affect a firm’s ability to build and maintain successful relationships with customers.

10. Key Environments • Aspects of the marketing environment: • Microenvironment: • Actors close to the company • Macroenvironment • Larger societal forces

11. Strategic Planning • Strategic planning is defined as: • “Theprocess of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”

12. Steps in the Strategic Planning Process

13. Strategic Planning Process • Strategic Planning involves developing an overall company strategy for long-run survival and growth. • This process involves: • Defining a Mission: Statement of an organization’s purpose; should be market oriented. • Setting Company Objectives: Supporting goals and objectives to guide the entire company. • Designing a Business Portfolio: Collection of businesses and products that make up the company. • Planning Functional Strategies: Detailed planning for each department designed to accomplish strategic objectives.

14. Managing the Marketing Effort

15. Executive Summary Current Marketing Situation Threats and Opportunities Objectives and Issues Marketing Strategy Elements of a Marketing Plan Action Programs Budgets Controls

16. Demographic- Economic Environment Technological- Natural Environment Marketing Intermediaries Marketing Analysis Marketing Planning Product Target Consumers Place Suppliers Publics Price Promotion & Politics Marketing Implementation Marketing Control Political- Legal Environment Social- Cultural Environment Competitors The Marketing Process

17. Developing a Personal Selling Plan 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique 7. Applying the Plan 6. Outlining Sales Tasks Feedback

18. Developing a Personal Selling Plan 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique 7. Applying the Plan 6. Outlining Sales Tasks Feedback

19. Personal Selling Plan: Setting Objectives • Selling goals can be demand- and/or image-oriented. • When image-oriented, they involve public relations. • Although many firms have some interest in information, reminder, and image goals, the major goal usually is persuasion: converting consumer interest into a sale. 1. Setting Objectives

20. Personal Selling Plan: Assigning Responsibility 2. Assigning Responsibility • Sales Manager Responsibilities • Understand goals and strategies of firm • To determine sales philosophy • To prepare sales forecasts • To allocate resources • To supervise sales personnel • To synchronize selling tasks • To assess all aspects of sales performance • To monitor competition’s actions • To maintain ethical standards • To convey the image sought by firm 1. Setting Objectives

21. Personal Selling Plan: Budgeting 2. Assigning Responsibility 3. Establishing a Budget 1. Setting Objectives The sales-expense budget allots selling costs among salespeople, products, customers, and geographic areas for a given period. It is usually tied to a sales forecast. Budget items include sales forecast, overhead, sales force compensation, travel expenses, sales meetings, selling aids, and sales management costs.

22. Developing a Personal Selling Plan 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique 7. Applying the Plan 6. Outlining Sales Tasks Feedback

23. Personal Selling Plan: Sales Positions 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives Salespeople are often classified as order takers,order getters, or support personnel.

24. CONTRASTING (don’t forget missionary-support)Order TakersandOrder Getters Generate customer leads and persuade consumers Process routine orders and reorders Are creative Provide clerical functions Handle high-priced/complex items and increase sales Basic Differ- ences Handle pre-sold items and maintain sales. Arrange displays, restock items, answer simple questions, & complete transactions Are less involved with routine tasks Require a lot of training and compensation Require little training and compensation Are highly expert and enthusiastic Have limited expertise and enthusiasm

25. Personal Selling Plan: Sales Technique 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique Two basic techniques for selling are the canned sales presentation (memorized and repetitive), and the need satisfaction approach (that iscustomized to individual consumer attributes).

26. Personal Selling Plan: Sales Tasks 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique The selling processremembers the cost effective prospecting 6. Outlining Sales Tasks

27. Personal Selling Plan: Sales Tasks 2. Assigning Responsibility 3. Establishing a Budget 4. Determining Types of Sales Positions 1. Setting Objectives 5. Selecting a Sales Technique The selling process outlines the sequential tasks sales personnel should perform. 6. Outlining Sales Tasks

28. Personal Selling Plan: Applying the Plan 3. Establishing a Budget 2. Assigning Responsibility 4. Determining Types of Sales Positions 1. Setting Objectives Sales Management involves planning, implementing, & controlling the personal sales function. 5. Selecting a Sales Technique 7. Applying the Plan 6. Outlining Sales Tasks Feedback

29. (Figure 1-5) Sales Management ResponsibilitiesBUILDING AND MANAGING Strategic Planning Organizing the sales force Performance Evaluation Communication Coordination Integration Recruiting, selection, assimilation Motivation and supervision Training and development

30. (Figure 1-6) Executive Ladder in Personal Selling President Vice president of sales National sales manager Regional/divisional sales manager District sales manager Staff assistants available for adviceand support at anystep along the ladder. Sales supervisor Salesperson