SBU Objectives and the Sales Organization
Salary plus bonusCall on and service
accounts only and
Call on targeted
levels to current
Salary plus incentiveCall on prospective
and new accounts
Build sales volume
SystemPrimary Sales Tasks
Developing Growth Strategies
Product/ Market Expansion Grid
Product/ Market Expansion Grid
Market Penetration: making more sales to current customers
without changing our products
Market Development: develop new markets for our current
◦ Identify new demographic or geographic markets.
Product Development: offering modified or new products to
◦ New Features, flavors, or modified products.
Diversification: new products for new markets
◦ Start up or buy new businesses.
Porter’s Generic Business Strategies(Competitive Advantage)
◦Low Cost - focus on low cost
◦Differentiation - focus on uniqueness
◦Niche - focus on a particular target market and use a low cost or
Role of the Salesforce
◦Low Cost - sell to large customers; minimize costs; focus on price;
order taking role
◦Differentiation - sell non-price benefits; high customer service and
responsiveness; target low price sensitive customers; order
◦Niche - low cost or differentiation approach 6
Business Strategy and the Sales Function
Business Strategy Types
Personal Selling-Driven vs. Advertising-
When Message Flexibility is Important
When Message Timing is Important
When Reaction Speed is Important
When Message Credibility is Important
When Trying to Close the Sale
When Low Cost per Contact is Important
When Repetitive Contact is Important
When Control of Message is Important
When Audience is Large
Sales Management Planning
a) Involves setting objectives and determining ways to achieve
b) Sales planning is very crucial when introducing new products.
Close cooperation between sales and production management is
crucial to the successful launching of innovative products.
c) Strategic plan outlines how resources will be allocated to market
Strategic business plan (long-term plan for the overall resource
allocation to market, which includes marketing, finance, HR,
Strategic marketing plan (long term plan for specific products
Strategic sales plan (long range plan for sales activities).
Tactical Sales Plans (short run plan for implementing sales
Information for Sales Planning
Primary Data – new data gathered specifically for the project in
Secondary Data – available data also gathered for some other
Other sources of information (e.g. MIS(marketing info sys),DSS(Decision support
Sales people are expected to provide information for sales planning
and management and there is growing need for better sales
intelligence from the field.
Sales people possess vital information about the market that can be
used to develop sales forecasts and quotas, to assess new products,
and to formulate marketing strategies.
Salespeople should be encouraged/motivated by the management;
they should be provided with incentives, training, and proper
supervision to encourage them to provide relevant information.
Sales managers must also make sure that the marketing intelligence
process is a two-way communication. Once the data has been analyzed,
it is essential that relevant facts are communicated back to the field
force in order to improve their selling efficiency.
Although the sales person has thorough knowledge about the market,
his opinion may be biased or incomplete knowledge.
For this reason sales manager must work with other staff specialists to
develop a procedure for incorporating information from the field into
the marketing planning process. For such reasons other sources are
also used, like:
1. Secondary data (which provides insight about the market
conditions and competitors)
2. Internal sales data (which allows managers to trace the
histories of individual accounts, products, territories, and
3. Product life cycle patterns
4. Fluctuations, growth and decline of specific customers or
customer groups (This information can be used to detect
changes into different areas and at different times
throughout the year)
5. marketing research team
Sales Management Planning Process
1. Analysis – examines what happens in the past, look at the
present situation, SWOT analysis, trend analysis.
2. Goal setting phase – set the direction for the sales force
3. Sales strategies – translate the goals into action
4. Tactical plans – more specific action plans, specific detailed
outlines, assignment of responsibilities /deadlines
5. Implementation stage – plan is executed here
6. Control stage – serves to compare actual outcomes with
planned results, in order to examine any plan revisions for the