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Sales Management Lecture III

Sales Management

Lecture III

What is Tupperware? Tupperware India Pvt. Ltd is a wholly owned subsidiary of the US-based

What is Tupperware?

Tupperware India Pvt. Ltd is a wholly owned subsidiary of the US-based Tupperware Corporation, the world’s leading manufacturer of high-

quality plastic food storage and serving containers.

Tupperware started its operations in India in 1996 and has been growing steadily over the years. Tupperware Corporation, parent company of Tupperware India, is a $ 1.1 billion company and one of world’s leading direct sellers of premium food storage, preparation and serving items reaching consumers in more than 100 countries. Tupperware Corporation is based in Orlando,

Florida and started operations in 1946. In partnership

with more than one million independent sales consultants worldwide,

Tupperware reaches consumers through informative and entertaining

home parties, retail access points in malls and other convenient venues.

Classification of Tupperware Products

Durable Products

Classification of Tupperware Products Durable Products Tupperware products fall under the durable goods category. They do

Tupperware products fall under the durable goods category. They do not perish like cereals or grains. They are made of plastic and hence are durable and long lasting.

Unsought/Speciality Products

Tupperware products come under the unsought goods category, as they are not exclusively available in the market. People have to make an effort to find these

products. Also, not many people are aware of these products. Hence they have to be

made aware of them. However, as awareness of TW products is increasing day-by-day and accessibility is limited, it is turning into a specialty product.

Products Range of Tupperware

Tupperware products are pioneered to provide versatility and convenience. The products are made from 100 per cent food grade virgin plastic and promise a lifetime guarantee against chipping, cracking or breaking under normal non-commercial use.

Till date, 88 products (from Tupperware’s International range) have been introduced in

the Indian market and are available in 41 cities across the country. The product mix comprises Dry Storage, Food Preparation, Food Serving, Refrigeration and Freezer Range as well as some specifically designed products to suit the needs of Indian

homes. The product offerings are such that they cater to the entire family’s needs.

Tupperware range of products provides a one-stop solution for all food storage, food preparation and

Tupperware range of products provides a one-stop solution for all food storage, food preparation and serving requirements in any household. They are elegant, lightweight, non-toxic, odourless and come in beautiful soothing colours. Tupperware products also have special

airtight and liquid tight seals, which lock in freshness and flavour.

Tupperware products can be classified into the following categories:

Dry storage

Food preparation

Microwave

Serving

Refrigerator

Freezer

Canisters

Classics

Lunch and outdoors

SALES FORCE TRAINING Consultants: The new consultant is given training by the distributor. This is

SALES FORCE TRAINING

Consultants: The new consultant is given training by the distributor. This is known as NDO (New Dealer Orientation). In this training session, the new dealer (consultant) is inducted into the policies of the organization, way of working and suggestions for

success in TW. Managers: The distributor trains managers in a session known as DWD (Day With Distributor). In this session, a prospective manager is made to understand the benefits of becoming a manager, how to deal with her sales force and how to achieve her targets.

Sales Meeting

Sales meetings are held on a weekly basis every Monday. This meeting is known as Assembly. In an Assembly, targets are given to dealers as well as managers. Each

target is accompanied with an incentive. This incentive can be cash bonus, free gifts

from Tupperware India / International or even a company-sponsored foreign trip. The gifts can also be lifestyle products such as a microwave, stereo system or an electric iron. Every month there is a managers’ meeting, known as Managers’ club meeting. This meeting is zonal in nature. In other words, separate meetings are held in different zones. This meeting consists of discussions pertaining to increasing and retaining of the sales force.

Marketing Channel

Tupperware is a women’s organization. It was started to give a new identity to women who have always been confined to their homes. To follow this philosophy, TW products are not available in any shop, mall or store. They can be displayed (with the permission of TW), but cannot be sold directly. Any intermediaries fail to exist in such a set-up where all the sales are done through personal selling.

Head Office

As the above diagram suggests, the distributor receives the goods from the head office. She passes them to the manager/dealer. These managers or dealers provide the products to the customer.

Distributor

Manager/Dealer

Customer

Distribution Channel

Distributor Manager/Dealer Customer Distribution Channel Tupperware manufactures its products in Hyderabad. It has

Tupperware manufactures its products in Hyderabad. It has its head office in Gurgaon. Once the manufacturing has been done, the goods are dispatched according to the instructions of the head office.

NOTES

After the order has been placed by the customer, the following process takes

place :

The goods are sent to the distributor from the head office. Then the distributor further gives them to the manager or the dealer under her. Now the manager/dealer provides them to the customer. However, if the customer has directly approached the distributor, then the role of

the manager/dealer is automatically eliminated.

Mfg Plant

Head Office/Regional Office

Distributor

Manager/Dealer

Promotion Tupperware uses various measures to promote its products. Some of them are: Press Releases

Promotion

Tupperware uses various measures to promote its products.

Some of them are:

Press Releases

Recently, Mr Kanwar Bhutani, Managing Director of Tupperware India, talked of future plans and targets of TW India in a press release. It was covered by various media giants such as The Times of India and Aaj Tak. Mr. Bhutani’s vision was to achieve sales worth 206 million by the year 2006. Such press releases are used to promote the products of the company.

Sales Promotion:

To achieve sales targets, TW gives various promotional schemes for dealers and

customers. This increases sales and also strengthens confidence in TW.

Public Displays

TW organizes roadshows in various cities. It has alliances with leading shopping malls

such as Ebony and Ansal’s Plaza, where its products are displayed for increasing sales

and awareness.

Personal Selling

TW believes in personal selling. Hence its products can never be found in shops and stores. Its dealers provide the products to the customer personally.

Online Assistance

If a person wishes to join Tupperware or buy its products, he or she can locate the nearest distributor in his area through its website. Also, every new product is available on its website, Tupperwareindia.com.

Conclusion The Tupperware Party Plan method of selling is a unique and extremely successful model

Conclusion

The Tupperware Party Plan method of selling is a unique and extremely successful model of selling adopted by Tupperware. Through this unique selling method, Tupperware has recorded remarkable acceptance and success in India. Tupperware

India understands the pulse of the consumers and their need to experience the

product in its true essence. Tupperware realizes that demonstrations are an effective way of communicating product benefits. Tupperware also provides an appealing business opportunity for

women.

Today the company has a vast network of sales force, comprising 50,000 women across 41 cities in India. The company has touched the lives of several women and

will continue to spread the Tupperware experience.

Tupperware has carved a niche in the market.

Currently no other company enjoys the position enjoyed by Tupperware.

Questions

Questions 1. Explain the process of selling Tupperware products. 2. What, according to you, should be

1. Explain the process of selling Tupperware products.

2. What, according to you, should be the right strategy to sell

Tupperware products in India?

3. What qualities are required in a salesperson to sell these products?

4. Comment on the role of selling that has changed over the years in

the light of the above case.

Sales Management

Sales Management

The sales management process

The sales management process
The sales management process

Account management policy grid

Account management policy grid
Account management policy grid
Sales Management and the Selling Environment

Sales Management and the Selling

Environment

Sales Management in the 21st Century • Building long-term relationships with customers • Creating more

Sales Management in the 21st Century

Building long-term relationships with customers

Creating more nimble and adaptable sales organizational structures

Removing functional barriers within the organization

to create greater job ownership and commitment from salespeople

Sales Management in the 21st Century • Shifting sales management style from commanding to coaching

Sales Management in the 21st Century

Shifting sales management style from commanding

to coaching

Leveraging available technology for sales success

Integrating salesperson performance evaluation to incorporate all activities and outcomes

Key Themes

Key Themes • Innovation – thinking outside the box • Technology – broad spectrum of tools

Innovation thinking outside the box

Technology broad spectrum of tools

available to salespersons

Leadership capability to make things happen

Globalization

Ethics

Sales Management Process

Sales Management Process • The formulation of a sales program • The implementation of the sales

The formulation of a sales program

The implementation of the sales program

The evaluation and control of the sales

program

Goals/Objectives/Culture

Goals/Objectives/Culture • Mission and objectives drive customer management approaches • A well-defined mission +

Mission and objectives drive customer

management approaches

A well-defined mission + successful corporate history + top management values = strong corporate culture

Personnel

Personnel • Modern sales organizations are highly complex and dynamic • Often difficult to expand to

Modern sales organizations are highly

complex and dynamic

Often difficult to expand to take advantage of growing markets

Utilizing outside specialists can help firms

meet need to expand

Financial Resources

Financial Resources • Lack of financial resources can: – constrain ability to develop new products –

Lack of financial resources can:

constrain ability to develop new products

limit promotional budget

limit size of sales force

Production and Supply Chain

Capabilities

Production and Supply Chain Capabilities • Production capacity • Location of production facilities •

Production capacity

Location of production facilities

Transportation costs

Ability to ensure seamless distribution and service after the sale

Service Capabilities

Service Capabilities • Opportunity for strong competitive advantage • Difficult for other firms to compete for

Opportunity for strong competitive advantage

Difficult for other firms to compete for same

customers

Customers reluctant to switch regardless of price

R&D and Technological Capabilities • Excellence in design and engineering provide major promotional appeal •

R&D and Technological Capabilities

Excellence in design and engineering provide

major promotional appeal

Ability to communicate technological sophistication as value-add helps prevent over-reliance on price to get sales

Trends Affecting

Trends Affecting Personal Selling Salespeople must adapt to 3 major trends in order to enhance their

Personal Selling

Salespeople must adapt to 3 major trends in

order to enhance their effectiveness and efficiency.

1. Behavioral Forces

More Expert and Demanding Buyers

Rising Customer Expectations

Micro-Segmentation of Domestic Markets

Expanding Power of Retailers

Globalization of Markets

2. Technological Forces

Portable computers

Electronic Data Interchange

Sales Force Automation

Videoconferencing

Portable phones and Satellite Pagers

Voice mail

Facsimile machines

Electronic mail

Electronic commerce

Virtual Sales Office

Pagers • Voice mail • Facsimile machines • Electronic mail • Electronic commerce • Virtual Sales

3. Managerial Forces

3. Managerial Forces • Selling Cost Reduction Efforts • Shift to Direct Marketing Alternatives • Certification

Selling Cost Reduction Efforts

Shift to Direct Marketing Alternatives

Certification of Salespeople

Four Major Trends in

Information Management

1. Database Marketing

Major Trends in Information Management 1. Database Marketing • A database is a large computerized file

• A database is a large computerized file of customers’ and potential customers’ profiles and purchase

patterns.

2. Data Warehousing

A very large, corporate-wide database, built with data

from a number of information systems already in place

in the company.

3. Data Mining • Refers to the process of using statistical analysis to detect relevant

3.

Data Mining

Refers to the process of using statistical analysis to detect relevant patterns or relationships between and among

 

variables in a database.

4.

Push Technology

Push technology is the latest iteration of e-mail combined with data warehousing to discern what your customers need and exactly when they need it.

Information Management and

Relationship Selling

Information Management and Relationship Selling • Information management and relationship selling go hand-in-hand as

Information management and relationship

selling go hand-in-hand as part of the

evolutionary development of a marketing strategy called one-to-one marketing to build

relationships:

Information Management and

Relationship Selling

One-to-One Marketing

and Relationship Selling – One-to-One Marketing • Instead of trying to increase market share by selling

Instead of trying to increase market share by selling

more goods to more customers, one-to-one marketing

concentrates on selling more goods, more profitably to

fewer selected customers

Salespeople One-to-One Relationship Builders

Building trust and long-term relationships with customers will determine the success of one-to-one marketing strategies, especially in business-to-business

markets

Professional Salespeople as Micro- marketing Managers • In addition to selling products, today’s sales

Professional Salespeople as Micro-

marketing Managers

In addition to selling products, today’s sales representatives

must serve customers as consultants who can offer expert advice for improving a customer’s lifestyle or making their business operations more profitable

Customer partners

Market analysts and planners

Buyer-seller team coordinators

Customer service providers

Buyer behavior experts

Opportunity spotters

– Intelligence gatherers – Sales forecasters – Marketing cost analysts – Allocators of scarce products

Intelligence gatherers

Sales forecasters

Marketing cost analysts

Allocators of scarce products

Field public relations people

Adopters of advanced sales technology

Key Account Selling

Key Account Selling

Definition of Key Account

Definition of Key Account What is a Key Account? • Key Accounts are the 20% of

What is a Key Account?

Key Accounts are the 20% of customers who provide 80% of your profits

Key Accounts are defined as the prospects or existing

customers who have the potential or now fall in the 80/20 category.

Any customer that is of strategic importance to your

company loss of it of inability to secure potential future revenue would cause a significant impact.

ACCOUNTS

PROFITS

20%

80%

80%

20%

ACCOUNTS PROFITS 20% 80% 80% 20%
ACCOUNTS PROFITS 20% 80% 80% 20%
ACCOUNTS PROFITS 20% 80% 80% 20%

80/20 principle

80/20 principle • For all corporations, some form of 80/20 rule operates. • e.g. 80% of

For all corporations, some form of 80/20 rule

operates.

e.g. 80% of the firms revenues is supplied by 20% of

its customers.

If this rule, or a close variant (90/10; 75/25), operates in the firms customer environment, the

critical business implication is that these 20% (or

10% or 25%) of customers have an importance to the firms long-run future that exceeds that of the

averagecustomer

Definition of

Key Account Selling

Definition of Key Account Selling A systematic set of processes in identification & profiling of key

A systematic set of processes in identification &

profiling of key accounts, design and adaptation of information-based & value- added selling strategies, profiling own market positioning for high sustainability of growth in

sales.

• Key account management is a strategy used by suppliers to target and serve high

Key account management is a strategy used by suppliers to target

and serve high potential customers with complex needs by

providing them with special treatment in the areas of marketing, administration and service. In order to receive key account status, a

customer must have high sales potential.

A second characteristic is that of complex buying behaviour; for example, large decision-making units with many choice criteria are often found in dispersed geographical locations. The decision- making unit may be located in a different functional area. Third, key

account status is more likely to be given to customers willing to

enter into a long-term alliance or partnership.

Such relationships offer buyers many benefits including reliability of

supply, risk reduction, easier problem solving, better

communications and high levels of service.

Key accounts that are geographically spread are often called

national accounts.

According to Hise and Reid, conditions needed to ensure the success of key account management

According to Hise and Reid, conditions needed to

ensure the success of key account management are:

integration of the key account programme into the company’s

overall sales effort

senior management’s understanding of, and support for, the key

account unit’s role

clear and practical lines of communication between outlying sales and service units

establishment of objectives and missions

compatible working relationships between sales management and

field salespeople

clear definition and identification of customers to be designated for key account status.

• Key account handling requires a special kind of attention from the seller that may

Key account handling requires a special kind of

attention from the seller that may be beyond the capacity of the regular field sales force.

Some of the key responsibilities of key account

managers are: planning and developing relationships

with a wide range of people in the customer firms, mobilising personnel and other resources in their own

firms to assist the account, and coordinating and

motivating the efforts and communication of their company’s field salespeople in their calls on the various

departments, divisions and geographical locations of

the key account.

What are the long-term benefits of running Key Account program • Economies of scale in

What are the long-term benefits of running Key

Account program

Economies of scale in selling

Improved understanding of key accounts goals, and requirements

Enhanced ability to manage complex relationships

Sustainability of sales

Increased key account switching costs

Credible reference for greater market penetration

Constant feedback to research and development for product and service improvements

What is the value of a Key Account program for the individual key account customer?

What is the value of a Key Account program for

the individual key account customer?

A single point of contact

Lower overall costs

Enhanced value with prioritized attention from distributor

Guaranteed delivery when capacity is short

Long-term relationship

Joint identification of opportunities and solutions to problems in win-win partnership

What has it to do with 80/20

principle?

What has it to do with 80/20 principle? • Understand who are your 80/20 customers, their

Understand who are your 80/20 customers, their

needs and profile

Redeployment of sales efforts and resources

Understand your own ranking, positioning, growth

potential or 80/20 status in your key customers suppliers profile seek improvement adopt aggressive growth strategy

Redeployment of sales efforts and resources • High value customers should be treated differently from

Redeployment of sales efforts and

resources

High value customers should be treated

differently from the averagecustomers

They should receive a disproportionate share of resources and are worthy of greater managerial attention

How about the small customers? • 20% of your firm ’ s revenues are derived

How about the small customers?

20% of your firms revenues are derived from

80% of its customers.

Stop serving small customers?

Identify less expensive methods for the firm to deal with these accounts

Cautions for Key Account Management • Too many eggs in one basket • Insufficient benefits

Cautions for Key Account Management

Too many eggs in one basket

Insufficient benefits to the distributor

Insufficient benefits to the potential key

account

Limitation of opportunities

Cost and Bureaucracy

Significant organizational change

Selecting Key Accounts - Criteria • Direct Sales Revenue and Profit – Current Sales Revenue

Selecting Key Accounts - Criteria

Direct Sales Revenue and Profit

Current Sales Revenue

Current Profits

Future Sales Volume and Profit

Financial Security

Acquisition Potential

Key account effort on firms likely to be acquired may be

wasted if the acquiring organization is given the dominant procurement responsibility

Selecting potential acquirers as key accounts may bring long-

run benefits

Selecting Key Accounts - Criteria • Organizational Interrelationships – Coherence with firm strategy • Key

Selecting Key Accounts - Criteria

Organizational Interrelationships

Coherence with firm strategy

Key account selection is a strategy implementation decision

Supplier valued by the customer

Customer believes, or can be persuaded, that distributor can meet its needs over the long run

Cultural Fit

Selecting Key Accounts - Criteria • Indirect Potential Volume & Profits … Strategic Key Account

Selecting Key Accounts - Criteria

Indirect Potential Volume & Profits

Strategic Key Account

Opinion Leadership

Example: Leading financial services group ICICI was the 1 st Indian company listed on NYSE. One of ICICIs key accounts is Infosys, Indias fastest growing software company, well-known for its commercial success, product

quality, and high ethical standards, and the first Indian

company listed on NASDAQ. Although ICICI transacts little business with Infosys, it regards as a key account because

of its exemplary reputation.

Compensatory Approach for Calculating Key Account Attractiveness 1. Attractiveness Criteria for Key Accounts 2. Importance

Compensatory Approach for Calculating Key

Account Attractiveness

1. Attractiveness Criteria for Key

Accounts

2. Importance

Weights for

3. Customer

X’s Score on

4. Col.2 X Col.3

Criteria

This Criterion

“We like key accounts that …”

a. Are a good cultural fit with our

25

4

100

firm

b. Provide us high volume

20

5

100

c. Provide us high gross margins

15

7

105

d. Offer good potential for future

15

8

120

growth

e. Are technologically sophisticated

15

3

45

f. Act as opinion leaders in their

10

4

40

industry

Total

100

510

Strategic Accounts Defined

Strategic Accounts Defined • A strategic account is more than just a large customer • A

A strategic account is more than just a large

customer

A strategic customer requires:

A high level of customer contact and customer support

Structure of the supplier's account team

More account penetration than nonstrategic accounts

Far more complex planning

Three Elements of Strategic Accounts • Accounts are strategic with respect to: – Revenues, profits,

Three Elements of Strategic Accounts

Accounts are strategic with respect to:

Revenues, profits, and growth opportunities for the future The nature of the relationship (partnership) between the seller and the buyer

The development of new products and services

Size of Account

Size of Account • Strategic accounts will likely be large accounts, with sales volume as the

Strategic accounts will likely be large accounts,

with sales volume as the determinant of size

Some minimum volume requirements must be established

Often the largest account in terms of sales

volume is not the most profitable account

Only the most profitable accounts can justify the higher expenditure in resources dedicated to these partnerships

Criteria for Establishing Account Priorities Size of account Account has multiple Buying locations Centralized

Criteria for Establishing Account Priorities

Size of account Account has multiple Buying locations Centralized influence on Purchasing decision
Size of account
Account has multiple
Buying locations
Centralized influence on
Purchasing decision

Potential

Value

High

Low

Medium

High

Priority

Priority

Low

Medium

Priority

Priority

Low

High

Probability of Achieving Potential

Partnering on a Strategic Level • Companies interested in partnering on a strategic level must

Partnering on a Strategic Level

Companies interested in partnering on a

strategic level must employ:

A multilocation mind-set

A strategic mind-set

Centralized Purchasing

Centralized Purchasing • Buyers are located typically, in a centralized facility (i.e., headquarter office) and are

Buyers are located typically, in a centralized

facility (i.e., headquarter office) and are responsible for dispersing products to remote offices

Developing the Strategic

Developing the Strategic Account Planning Process • The strategic account planning process should be specific and

Account Planning Process

The strategic account planning process should

be specific and actionable, and include

Objectives and activities

Action plans designed to meet the objectives

Assigned responsibilities and accountabilities

A listing of the resources required to implement

the plans

Facilitating Buy-In

Facilitating Buy-In • Training and education programs can facilitate buy-in within the selling organization • Sales

Training and education programs can facilitate

buy-in within the selling organization

Sales education programs must emphasize the value that sales representatives and sales managers can provide to these strategic

accounts

Providing Guidance for Plan Development and Implementation • Key Account Managers provide much guidance and

Providing Guidance for Plan Development and

Implementation

Key Account Managers provide much

guidance and leadership to their account representatives

They require ongoing support from top management

Some companies have implemented a senior

executive sponsor program for strategic

accounts

A Senior Executive Sponsor Program for Strategic Accounts

A Senior Executive Sponsor Program for Strategic Accounts • Provides key account managers with a senior

Provides key account managers with a senior level advocate to further insure that the needs of the strategic account are being met

Shows the key account that the supplier organization is

committed to a long term relationship

Serves as a sounding board to the key account manager in the development and implementation of a strategic account plan

Assists the key account manager in securing resources if normal channels are unsuccessful

Provides all senior management with greater exposure to

strategic customers

Characteristics of

Key Account Managers

Characteristics of Key Account Managers • Key account managers must be: – Observant – Able to

Key account managers must be:

Observant

Able to recognize patterns

Able to lead cross-functional teams

Comfortable working across boundaries

Able to work well with ambiguity

They must orient and opt under uncertain conditions

Very creative in developing structured solutions

for clients from often-vague situations

Key Account Manager Responsibilities • Four areas of responsibilities in servicing strategic accounts are: –

Key Account Manager Responsibilities

Four areas of responsibilities in servicing

strategic accounts are:

Strategy

Investments/operations

Account quality assurance

Executive role

Major Account Selling versus Smaller Account Selling

Major Account Selling versus Smaller Account Selling Major Account Small Account A series of meetings over

Major Account

Small Account

A series of meetings over an extended period of time with many different people

A series of meetings over an extended period of time with many different people

Face-to-face meetings between just the salesperson and a prospect

Face-to-face meetings between just the salesperson and a prospect
Works directly with the

Works directly with the

No direct access to the

No direct access to the

ultimate decision maker

ultimate decision maker

Size of the sale is larger

Size of the sale is larger

 

Time horizon for purchasing differs

Time horizon for purchasing differs
 

Closing techniques can sometimes cost the salesperson businessClosing techniques may be effective

Closing techniques may be effective

Closing techniques may be effective

Objection preventionObjection handling

Objection handlingObjection prevention

Longer sales cycleShorter sales cycle

Shorter sales cycleLonger sales cycle

Strategy and Sales Program Planning

Strategy and Sales Program

Planning

Strategic management planning. Level 1 Top Mgt decision Level 2 Strategy Implementati on Decision Level

Strategic management planning.

Level 1

Top Mgt

decision

Level 2

Strategy Implementati on Decision

Level 3

Sales force

Program decision

Business strategy

Marketing strategy

force Program decision Business strategy Marketing strategy Go-to-mkt CRM Strategy SCM Mgt Product Dev Mgt
Go-to-mkt CRM Strategy SCM Mgt Product Dev Mgt
Go-to-mkt
CRM
Strategy
SCM Mgt
Product Dev
Mgt
activities structure Acc relatnship strategy competencies leadership
activities
structure
Acc relatnship
strategy
competencies
leadership
Strategic management planning. LEVEL 1: Top Mgt Decisions • First Strategic planning is used to

Strategic management planning.

LEVEL 1: Top Mgt Decisions

First Strategic planning is used to make better use of company resources & create a competitive advantage.

Involves designing mission which provides a sense

of direction to employees. Should address customers, competitors and the company itself.

Design specific objectives by which performance can

be measured (in terms of profit, sales volume, mkt share).

Translate objectives into strategies (low cost,

differentiation or niche).

• Second is marketing strategy which involves addressing the value requirements of customers. • Need

Second is marketing strategy which involves

addressing the value requirements of customers.

Need to segment the market & select target

markets on which to concentrate their efforts.

Level 2: Strategy Implementation Decisions

Implement a positioning strategy based on 4P’s. deals how the consumer views the

product & brand. Strong 4P’s very important.

Sales force with other depts as finance,

operations, logistics etc

together on the above strategies.

need to work

• Third is strategic implementation decisions – set of process org needs to develop to

Third is strategic implementation decisions set

of process org needs to develop to create customer value & gain competitive advantage.

Decisions company make are:

- how will customers be accessed (go-to-mkt

strategy)

- how will new products be developed & existing products improved (product dev mgt)

- how will physical products be created & delivered to customer (SCM)

- how customer relation be enhanced (CRM)

Go To Market Strategy:

Go – To – Market Strategy: A world class sales force is a powerful resource for

A world class sales force is a powerful resource for a

company. Other options are advertising, promotions, value added resellers, internet, telemarketing.

Segmenting the mkt

Essential activities include interest creation, pre- purchase, purchase, post purchase.

Face to face selling alternative independent sales agent, resellers, integrators (unaffiliated service

supplier), alliances.

Product Development Mgt

Product Development Mgt • Success of a company often depends on how it develops, produces &

Success of a company often depends on how

it develops, produces & market new products.

Sales force are the most important source of information for new product dev.

Sales force also plays an important role in the

launching of new products.

Supply Chain Mgt

Supply Chain Mgt • integration & organisation of information & logistics activities across firms in a

integration & organisation of information & logistics

activities across firms in a supply chain for the

purpose of creating & delivering goods that provide customer value.

Companies have seen whiplash of too much or too

little inventory.

Sales force impacts SCM because they are the contact points to the customer.

Need to have knowledge of entire SC, think

strategically about partnering, good lines of

communication & influence of top mgt.

Customer Relationship Mgt

Customer Relationship Mgt • Involvement of sales force • Importance of information • 4 skills important

Involvement of sales force

Importance of information

4 skills important to sales professionals in CRM:

- collaboration having each stakeholders interest in mind

- relationship mgt effective listening, analyzing &

interpersonal communication.

- financial & business skills

- consultative skills

Level 3: Sales Program Decisions

is a tool for planning how sales force will

Decisions • is a tool for planning how sales force will perform its role in achieving

perform its role in achieving the firm’s

objectives.

The process begins with objectives, target markets specified in the marketing plan.

The tools and techniques for estimating sales

potential and forecasting are discussed later in

the topic.

Mkting objs, strategy, & strategy implementation program Estimates of sales potential & forecast Acc
Mkting objs, strategy, & strategy
implementation program
Estimates of sales
potential & forecast
Acc relationship strategy
Desired selling actions &
behaviors
Estimates of sales
force size & budget
Org. structure
Competency Dev
program
Leadership system
feedback
Account Relationship Strategy Refers to the type of relationship it intends to develop with its

Account Relationship Strategy

Refers to the type of relationship it intends to develop

with its customers (acquiring, maintaining & developing customers).

Transactional Relationship because a business can

switch suppliers easily. Relationship is based on the

need for a product of acceptability quality,

competitively priced & process & relationship

convenient for the buyer. Good TR involves personal relationship based on history of trust, creation of

value, meeting or exceeding customers expectations.

• Consultative Relationship – in industrial markets based on the customers demand & willingness to

Consultative Relationship in industrial

markets based on the customers demand & willingness to pay for a sales effort that

creates new value & provides additional

benefits outside of the product itself. - more time is spent learning special needs of individual customer

Enterprise Relationship customers

downsizing their supplier base to a small

number of possible long term relationships. To the selling organization customer is the most

important.

Developing Your Competencies • Strategic Action • Technology • Coaching • Team building • Self

Developing Your Competencies

Strategic Action

Technology

Coaching

Team building

Self management

- closing (can aggressively initiate personal contacts

- consultative (possess patience, good interpersonal

skills & aggressiveness)

- relationship (discipline & take responsibility)

- display (need to have something to do, high

physical energy level)