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MK 314 - LECTURE NO. 2.pptx
- 1. MK 314 SALES MANAGEMENT LECTURE NO. 2 Strategic Sales Force Management
- 2. OUTLINEOF LECTURE NO. 2 Strategic Sales Force Management 1. The Marketing System 2. The Marketing Concept and Marketing Management 3. Strategic Planning 4. Strategic Planning at the Company, Marketing and Sales Force Levels 5. StrategicTrends
- 3. SUMMARYOF THE LECTURE NO.2 Modern sales managers understand that they are but one link in the total marketing strategy for the firm. Moreover, they understand the place of the firm’s marketing strategy within the company’s total strategic plan
- 5. L/N: 2.2: The Marketing Concept and Marketing Management With the advent of the marketing concept and its acceptance by most businesses, the job of the sales manager has been changed and sales operations have become but one portion of the firm’s total marketing program. Marketing has evolved through several stages. It is now in the relationship-orientation stage, in which buyers and sellers make long-term commitments to do business with each other. For effective relationship marketing, all functions of the selling firm must work together as a team to help solve customer problems.
- 6. The Marketing Concept and Marketing Management –Cont’d Marketing Concept is a philosophy that holds that 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. In order to do this, all activities throughout the entire company must be coordinated with one another and focused on the customer.An effective and efficient implementation of the marketing concept results in profitable sales volume and long-run success for the firm.
- 10. Relationship Marketing Open Communication Employee Empower ment Customer and the Planning Process Teamwork
- 11. The Marketing Concept and Marketing Management –Cont’d Integrating Marketing and Sales Functions The marketing strategy can be effective only when it is clearly understood and embraced by the sales force.This is more likely to happen when salespeople are involved in the strategy development process. Integrating Production and Sales Coordinating the activities of the sales force and the production function is also critical to the overall success of the firm. Materials requirements and production schedules are developed according to sales forecasts
- 12. L/N: 2.3: Strategic Planning When shaping sales force management strategy, sales executives are guided and limited by both the firm’s total company planning and its strategic planning. Three concepts—objectives, strategies, and tactics—are the heart of planning at any level in the organizational hierarchy. All sales managers should have a thorough understanding of these concepts—what they are and how to use them.
- 13. L/N: 2.3: Strategic Planning – Cont’d Objectives are the goals around which a strategic plan is formulated.Without goals, it is impossible to create a meaningful plan.To be useful, objectives must be specific and measurable. Eg. goals of a 15 percent return on investment and a 10 percent annual growth rate. Strategies are plans of action, to achieve the objectives. Eg. entering new markets or covering the existing markets more intensely. Tactics are the activities that people must perform in order to carry out the strategy.
- 14. L/N. 2.4: Strategic Planning at the Company, Marketing and Sales Force Levels Marketing must create a strategic plan that is consistent with the strategic plan of the total company. In turn, planning by the sales department is determined by the strategic marketing plan. In this sense, planning starts at the top and works its way down, guiding the entire organization. At the same time, planning is a bottom-up process—those creating the strategic plan for the total company must listen carefully to the input of employees at all levels of the organization.
- 15. L/N. 2.4: Strategic Planning at the Company, Marketing and Sales Force Levels –Cont’d Thus, strategic planning starts with identifying the organization’s fundamental mission. Management should ask two questions: “What business are we in?” and “What business should we be in?” Once it determines the company’s mission, management can set objectives consistent with that mission. For example, the company may aim either to earn a 20 percent return on investment next year or to increase its market share from the present 8 percent to 20 percent in three years.
- 16. L/N. 2.4: Strategic Planning at the Company, Marketing and Sales Force Levels –Cont’d The next step is to select the strategy to be used to reach the objectives. As examples, consider the following relationships:
- 17. L/N. 2.4: Strategic Planning at the Company, Marketing and Sales Force Levels –Cont’d The tactics selected to implement the strategy depend, of course, on the strategy chosen. Thus, if the chosen strategy is to reduce marketing costs, management can use such tactics as cutting advertising expenses by 10 percent or closing two branch offices. To implement the strategy of intensifying the domestic marketing effort, management might add 20 more sales reps or change the compensation plan to provide greater motivation for the sales force.
- 18. L/N. 2.4: Strategic Planning at the Company, Marketing and Sales Force Levels –Cont’d Once the total company planning process is completed, essentially the same procedure can be repeated for the marketing program. The objectives, strategies, and tactics at the marketing level are closely related to those at the corporate level. A corporate strategy often translates into a marketing strategy.To illustrate:
- 19. L/N. 2.4: Strategic Planning at the Company, Marketing and Sales Force Levels –Cont’d
- 22. L/N. 1.5: Strategic Trends Several strategic trends have emerged in the past decade and are shaping the strategy of sales organizations. The Internet has had a significant impact on sales strategy—though sales organizations have not completely grasped how best to use it. In response to intensified competition and changes in customer purchasing patterns, many firms are now using multiple sales channels to reach a broad customer base and multiple relationship strategies to sell to different customers. Finally, today’s managers must act in a socially responsible manner if they wish to succeed.
- 23. END OF LECTURE NO. 2