Strategic Sales Management.ppt
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Strategic Sales Management.ppt Presentation Transcript

  • 1. STRATEGIC SALES MANAGEMENT The world of selling must accommodate a dramatically changed world of buying
  • 2. Territory Analysis
    • Why Do It?
      • To obtain thorough coverage of the market
      • To establish territory responsibilities
      • To evaluate Performance
      • To improve customer relations
      • To reduce cost/increase profitability
      • To allow better salesforce/customer matching
  • 3. Target Account Strategy
    • Undifferentiated Account Approach
    TARGET ACCOUNTS SALES STRATEGY
  • 4. Target Account Strategy
    • Account Segmentation Approach
      • Key Account
      • Profitability
      • Size
      • Potential
    SALES STRATEGY Account 1 Account 2 Account 3 Account 4
  • 5. Expected Value Analysis
    • Determination of product potential on an account by account basis.
    • Estimates of Market Share and Probability are based upon the judgement of the salesperson and
      • Amount of past sales
      • Degree and kind of competition
      • Product,Price, and Service commitments
      • Economic conditions
      • Existing account relationships
  • 6. Expected Value of an Account
    • EV= PPV x  (SES x PES)
      • EV=Expected value
      • PPV= Potential Product Volume
      • SES= Salesperson Estimated Share
      • PES= Probability of getting expected share
  • 7.  
  • 8. Expected Value
    • EV=PPV X Expected Share
      • $60,000 X .43 = $25,800
  • 9. Sales Force Quality Impacts Financial Performance
    • Value of Quality Sales Force Increases as:
      • Customer pressure intensify
      • Sources of Product differentiation dry up
      • Supply Chain Functions become more integrated
  • 10. Sales Strategy is most important when
    • Product is differentiated
    • Product is New
    • Product is late in life cycle
    • Product is undifferentiated
    Amount of Product Differentiation Product Life Cycle High Low High Low
  • 11. From Product Power to Customer Power
    • Over time sources of of MFG. Profitability change
      • Early one profits are proportional to account size
    • Consolidation in most customer industries has led to much more concentration at the top of the account triangle
  • 12. Shift in customer buying power requires shift in Sales Strategy Number of Accounts Cost Pressure Price Pressure Major Accounts Middle Accounts Mini-Accounts Account Size
  • 13. Key Determinants of Account Profitability
    • Account Retention
    • Account Dominance
    • Realized Price
    • Selling and Service Cost
    • Account Selection
  • 14. Something Old…Something New
    • Get New Accounts
    • Get the Order
    • Pressure Firm to cut Price
    • Give Service to Get Sales
    • Manage all accounts the same way
    • Sell to Anyone
    • Retain Existing Accounts
    • Become the Preferred Supplier
    • Price for Profit
    • Manage for Profitability
    • Manage each account for maximum long term profitability
    • Concentrate on High Profit Potential accounts
  • 15. Role of the Salesperson
    • Which Accounts?
    • Which Products and Services?
    • What Specific Activities are to be accomplished?
    • What are the key interactions with other parts of the company?
  • 16. Make the Sales Task Clear
  • 17. Sales Force Architecture
    • How many different sales forces should we have?
    • How should the sales force be structured?
    • What degree of specialization is needed?
    • What are the sales force resource requirements?
  • 18. Sales Management must function as a system
    • Measurement Systems
    • Skill Creation Systems
    • Motivation Systems
    • Management Systems
  • 19. Rethinking The Role of the Sales Force
    • Return on Investment
    • Sales Process Control
    • Integrated Customer Management
    • Technology Assisted Selling
    • Performance Management
  • 20. Direct versus Indirect Salesforce
  • 21.  
  • 22. * Understanding Customer Need Requirements * Establishing Channel Objectives * Direct versus Indirect Channel Alternatives * Economic Consequences * Evaluating Channel Performance KEY CHANNEL MANAGERIAL ISSUES
  • 23. Multiple Customer Bases Create Complex Interactions WHO IS THE CUSTOMER? SUPPLIER DISTRIBUTION CHANNEL A DISTRIBUTION CHANNEL B INDIVIDUAL CUSTOMER INDUSTRIAL CUSTOMER
  • 24. Growth in Multi-channel Systems
    • Selling Costs
    • Just in Time Inventory Management
    • Supply Chain Systems
    • Information Technology
  • 25. Channels Members add Value to the Exchange Process Suppliers Local market Knowledge Local inventory and distribution outlets Exchange efficiencies Financial Services Customers Expert advice Credit Accessibility Warranty/ Guarantees
  • 26. Control vs. Financial Resources in Channel Design Financial Suppliers Resources Control More Financial Resources Required and more control Less Financial Resources Required and more control Few Many High LOW
  • 27. Distributors Economic Role Manufacturer Distributor Customer Transferred Business Costs Transferred Business Costs $ Inventory $ Order Handling $ Selling $Credit $ Inventory $Freight $Storage $Order Handling
  • 28. Distribution Strategies Intensive Distribution Newspapers,Books, magazines Packaged goods Auto parts Selective Distribution Consumer Durables Sevices Exclusive Distribution Rolls royce Dealers
  • 29. Manufacturers Representatives Independent firm Bears all selling expenses Sells on commission basis Does not carry competing lines Replaces or supplements the direct sales force Does not take title to the goods
  • 30. Distributors Beliefs about Factors High cost of carrying inventory Inefficient marketing Costs Increasing distribution costs Pressure to increase volume and market share Increased distributor services. Lower operating costs of purchasing.
  • 31.