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Strategic sales force management

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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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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.