The document discusses organizational strategies and the sales function. It covers topics like corporate strategy development processes, strategic business units, matching selling strategies to relationship strategies, and different sales channel strategies. The key aspects are organizational strategy levels, business strategy and the sales function, personal selling vs advertising strategies, and how sales strategies should be tailored based on the target market, buying center, buying process, and relationship goals.

1. Organizational Strategies
and The Sales Function
Module Three

2. Organizational Strategy Levels

3. Corporate Strategy
Development Process
• Analyze corporate performance and
identify opportunities and threats
• Determine corporate mission and objectives
• Define strategic business units
• Set objectives for each strategic business
unit

4. Strategic Business Units (SBUs)
Cravens (1991)
An SBU is a single product or brand, a
line of products, or a mix of related
products that meets a common market
need or a group of related needs, and the
unit's management is responsible for all
(or most) of the basic business
functions."

6. Dilemma

7. Business Strategy and
the Sales Function
• Low-cost supplier
• Differentiation
• Niche
Pursue large customers
Minimize cost
Compete on price
Seek customers who are
low price shoppers
price
lity
who are
ppers
Ser
ma
by
Pro
cus
See
not

9. Personal Selling-Driven vs. Advertising-Driven
Marketing Communications Strategies
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
Personal Selling
Advertising

10. Target Market Situations and
Personal Selling
Target Market:
A definition of the specific market segment to be served
Personal Selling-Driven Promotional Strategies are
appropriate when:
– The market consists of only a few buyers that tend to be
concentrated in location
– The buyer needs a great deal of information
– The purchase is important
– The product is complex
– Service after the sale is important

11. Integrated Marketing
Communications
The strategic integration of multiple
marketing communications tools
communicating a consistent
message in the most effective and
efficient manner.

12. Buying
Situation
Buying
Center
Organizational
Buyer Behavior
Account
Buying
Process
Buying
Needs
Account
Targeting
Strategy
Relationship
Strategy
Salesperson
Sales
Strategy
Sales Channel
Strategy
Selling
Strategy
The Sales Strategy Framework

13. Business or
Industrial
Organizations
Major Category Types
Users: purchase products
and services to produce
other products and services
Organizational Buyer Behavior:
Types of Organizations
Original Equipment
Manufacturers (OEM):
purchase products to
incorporate into products
Resellers: purchase
products to sell

14. Major Category Types
Government
Organizations
Federal, State, and
Local Government
Agencies
Organizational Buyer Behavior:
Types of Organizations
Public and
Private Institutions
Institutions

15. Organizational Buyer Behavior:
Buying Situations
Straight Rebuy Buying Situation
– Routinized Response Behavior
Modified Rebuy Buying Situation
– Limited Problem Solving
New Task Buying Situation
– Extensive Problem Solving

16. Organizational Buyer Behavior:
Buying Center
• Initiators
• Users
• Gatekeepers
• Influencers
• Deciders
• Purchasers

17. Organizational Buyer Behavior:
Buying Process
Phase 1: Recognize Problem/Need
Phase 2: Determine Item Specs/Quantity Needed
Phase 3: Specify Item Specs/Quantity Needed
Phase 4: Identify and Qualify Potential Sources
Phase 5: Acquire and Analyze Proposals
Phase 6: Evaluate Proposals/Select Suppliers
Phase 7: Selection of Order Routine
Phase 8: Performance Feedback/Evaluation

18. Control Cost in Product
Use Situation
Few Breakdowns of Product
Dependable Delivery for
Repeat Purchases
Adequate Supply of
Products
Cost within Budget Limits
Want a Feeling of Power
Seek Personal Pleasure
Desire Job Security
Want to be Well Liked
Want Respect
Personal Goals Organizational Goals
Personal and Organizational Needs

19. Sales Strategy:
Account-Targeting Strategy
The classification of accounts within
a target market into categories for
the purpose of developing strategic
approaches for selling to each account or
account group.

20. Sales Strategy:
Relationship Strategy
A determination of the type of relationship to
be developed with different account groups.

21. Transaction Solutions Partnership Collaborative
Characteristics of
Relationship Strategies
Goal Sell Products Add Value
Time
Frame
Short Long
Offering Standardized Customized
Number of
Customers
Many Few

22. Sales Strategy:
Selling Strategy
A planned selling approach for each relationship
strategy. Developing efficient and effective selling
strategies is an important sales management task.

23. Matching Selling and
Relationship Strategies
Transaction
Solutions
Partnership
Collaborative
Commitment
Cost
to
Serve
High
High
Low

24. Sales Strategy:
Sales Channel Strategy
Ensuring that accounts receive selling effort
coverage in an effective and efficient manner.
Sales channel options include:
– The Internet
– Industrial Distributors
– Independent Representatives
– Team Selling
– Telemarketing
– Trade Shows

25. Sales Channel Strategy:
The Internet
Used strategically to:
• Increase Reach
• Gather Information about Customers
• Showcase New Products
• Conduct Surveys
• Enhance Corporate Image
• Obtain Feedback
• Service Existing Customers

26. Sales Channel Strategy:
Industrial Distributors
Essentially, channel intermediaries that:
• Have Their Own Sales Force
• May Represent One Manufacturer; Several
Non-competing Manufacturers; Several
Competing Manufacturers
• Take Title to the Goods and Normally Carry
Inventory

27. Sales Channel Strategy:
Independent or Manufacturers’ Reps
Outsourcing the selling effort to individuals or
organizations that:
• Sell complimentary products from non-competing
manufacturers.
• Do Not Take Title to the Goods or Carry Inventory
• Are Paid for Performance
• Have Control over the Selling Effort
• May Control Access to Customer Information

28. Sales Channel Strategy:
Team Selling
Multiple individuals from the selling organization working
together to develop and expand relationships with one or
more accounts. The salesperson typically coordinates the
team’s selling efforts.

29. Sales Channel Strategy:
Telemarketing
Using the telephone as a means of customer contact. This low-
cost method of customer relationship management may replace
field sales force for certain accounts. When integrated with field
sales force, activities include:
– Prospecting, Qualifying Leads, Conducting Surveys
– Taking Orders, Checking on Order Status, Handling Order
Problems
– Following Up for Repeat Business

30. Sales Channel Strategy:
Trade Shows
• Generate Leads
• Test Market New Products
• Introduce New Products
• Close Sales
• Gather Competitive Information
• Service Existing Customers
• Enhance Corporate Image
Events at which the company exhibits its
wares. Used by organizations to: