Chapter 03

Copyright 2001 by Harcourt, Inc. All rights reserved.

PART II

PLANNING THE SALES
TEAMS EFFORTS
CHAPTER 3
BUILDING RELATIONSHIPS
THROUGH STRATEGIC
PLANNING

The importance of corporate strategy.
How strategic planning differs from tactical operational
planning.
The relationship between marketing and sales force strategies.
The role of personal selling in the firms marketing
relationship efforts.
LEARNING OBJECTIVES
Strategic planning helps an organization build long-term
relationships with its customers. This chapter will help you better
understand:
IMPORTANCE OF CORPORATE
PLANNING
Strategic planning involves making
decisions about the organizations long-term
goals and strategies.
Strategic goals are major targets or end
results that relate to the long-term survival,
value, and growth of the organization.
STRATEGIC PLANNING
Strategy is a pattern of actions and resource
allocations designed to achieve the goals of
the organization.
STRATEGIC PLANNING Continued
Tactical planning translates broad strategic
goals and plans into specific goals and plans
relevant to a definite portion of the
organization.
Tactic is the operational means by which an
organization intends to reach its objective.
Operational planning identifies the specific
procedures and processes required at lower
levels of the organization.
TACTICAL AND OPERATIONAL PLANNING
Mission is the basic purpose and values of
the organization, as well as its scope of
operations.
Strategic vision provides a perspective on
where the company is headed and what the
organization can become.
Strategic plan is the companys mission,
values, objectives, strategies and tactics.
ESTABLISHING A MISSION AND VISION
1. Where are we?
2. Where do we want to be?
3. How should we get there?
4. Can we afford it?
Four key questions:
VISION
Our heritage has been and our future is to be
the World Leader in Imaging.
MISSION
Build a world-class, results-oriented culture
by providingsolutions to capture, store, process, output,
and communicateimages to people and machines
anywhere, anytime...bringing differentiated, cost-effective
solutionsto the marketplace and with
flawless qualitythrough a diverse team of energetic
employees with the world-class talent and skills
necessary to sustain Kodak as the World Leader in Imaging.
In this way, we will achieve our
fundamental objective of Total Customer Satisfaction,
and our consequent goals of Increased Global
Market Share and Superior Financial Performance.
VALUES
(1) Respect for the Dignity of the Individual
(2) Integrity (3) Trust (4) Credibility
(5) Continuous Improvement and Personal Renewal

Source: Kodaks 1999 annual report.
FIGURE 3.1 KODAKS VISION, MISSION, AND VALUES
FIGURE 3.2 RELATIONSHIP BETWEEN THE ORGANIZATIONS STRATEGIC
PLAN AND OPERATIONAL PLANS
Organizations Strategic Plan
Mission
Objectives
Strategies
Portfolio plan
Operational Plans
Objectives
Forecast
Budgets
Strategies and
Policies
Objectives
Forecast
Budgets
Strategies and
Policies
Objectives
Forecast
Budgets
Strategies and
programs
Policies
Objectives
Forecast
Budgets
Strategies and
programs
Policies
Human Resources
Plan
Financial Plan Marketing Plan Production Plan
WHAT IS MARKETING?
Production of goods or creation of services.
Marketing those goods and services.
Businesses have two major functions:
Marketing is defined as the process of
planning and executing the conception,
pricing, promotion, and distribution of
goods, services, and ideas to create
exchanges that satisfy individual and
organizational objectives.
Marketing Production
Human
Resources
Top Management
Functional Departments
Salespeople
Customers
Manufacturers Service Wholesalers Retailers Consumers
FIGURE 3.3 THE MARKETING GROUP THE LINK BETWEEN
CUSTOMERS AND THE ORGANIZATION
Marketing people typically have these four
basic objectives to accomplish:
1. Maximize sales of existing products in
existing markets.
2. Develop and sell new products.
3. Develop new markets for existing or new
products.
4. Provide the quality of service necessary for
customers to be satisfied with their
transactions and to continue doing business
with the organization.
MARKETINGS IMPORTANCE
TO THE FIRM
Marketing generates sales.
Marketing provides quality service.

ESSENTIALS OF A FIRMS
MARKETING EFFORT
The essentials of a firms marketing effort
include its abilities (1) to determine the
needs of its customers and (2) to create
and maintain an effective marketing mix
that satisfies customer needs.
Product
Price
Distribution or place
Promotion.
Marketing mix consists of four main
elements:
A good is a physical object that can be
purchased.
Service is an action or activity done for
others for a fee.
Product refers to both goods and services.
PRODUCT: ITS MORE THAN YOU MIGHT
THINK
MarketingMix
FIGURE 3.4 FOUR MARKETING-MIX ELEMENTS AND FOUR
PROMOTION ACTIVITIES
Product Price Place Promotion
Personal Selling Advertising Sales Promotion Publicity
FIGURE 3.5 A GOOD/SERVICE CONTINUUM
Relatively
Pure
Goods
Salt
Soup
Relatively
Pure
Services
Baby-sitting
Insurance
Teaching
Service-
Intensive
Goods
Automobiles
Goods-
Intensive
Services
Air travel
Hybrids
Restaurants
SERVICES ARE PRODUCTS
They present their own selling challenges
and opportunities:
Intangibility customers cannot sample.
Inseparability cannot be separated from the
seller.
Heterogeneity cannot standardize output.
Perishability and fluctuating demand
highly perishable, seasonal fluctuations.
A tough sell most challenging sales job.
MarketingMix
PRICE: ITS IMPORTANT TO SUCCESS

Price refers to the value or worth of a product
that attracts the buyer to exchange money or
something of value for it.
MarketingMix
DISTRIBUTION: IT HAS TO BE
AVAILABLE

Distribution (or place) refers to the channel
structure used to transfer products from an
organization to its customers.
Household decision-making unit buying
for personal use.
Firm an organization that produces goods
and services.
Government an organization that has two
functions: the provision of goods and
services to households and firms and the
redistribution of income and wealth.
There are three groups of customers:
MarketingMix
PROMOTION: PEOPLE HAVE TO BE TOLD

Promotion, as part of the marketing mix,
increases company sales by communicating
product information to potential customers.
Four basic parts of a promotional
effort:
1. Personal Selling
2. Advertising
3. Publicity
4. Sales Promotion
TABLE 3.1 PROMOTIONAL ACTIVITIES
Advertising. Nonpersonal communication of information paid for by an identi-
fied sponsor such as an individual or an organization. Modes of advertising in-
clude television, radio, direct mail, catalogs, newspapers, and outdoor advertis-
ing such as billboards.
Publicity. Nonpersonal communication of information that is not paid for by an
individual or organization. Information appears in media such as television,
radio, and newspaper.
Sales promotion. Involves activities or materials used to create sales for goods
or services. The two types of sales promotion are consumer and trade sales
promotion. Consumer sales promotion includes free samples, coupons, con-
tests, and demonstrations to consumers. Trade sales promotion encourages
wholesalers and retailers to purchase and to sell aggressively using devices
such as sales contests, displays, special purchase prices, and free merchandise.

Personal selling. Personal communication of information to persuade a
prospective customer to buy something a good, service, idea, or whatever
that satisfies an individuals needs.
M
a
n
u
f
a
c
t
u
r
e
r
ConsumerProducts
Household Consumer
Retailer
Wholesaler
Household Consumer
Retailer HouseholdConsumer
Industrial Products
M
a
n
u
f
a
c
t
u
r
e
r
Industrial User
Wholesaler
Industrial User
FIGURE 3.6 TYPICAL DISTRIBUTION CHANNELS FOR CONSUMER
AND INDUSTRIAL PRODUCTS

PRODUCT PRICE PLACE PROMOTION
Brand name Credit term Channels Advertising
Features Discounts Inventory Coupons
Image List price Locations Free samples
Packaging Promotional allowances Retailers Personal selling
Quality level Transportation Product displays
Returns Wholesalers Publicity
Services Sales management
Sizes Trade shows
Warranties
TABLE 3.2 EXAMPLES OF EACH MARKETING-MIX
ELEMENT
THE GOAL OF A MARKETING MIX

The organizations marketing group strives to
create a marketing mix for the right product, at
the right price, at the right time, and with the
right promotional effort.
RELATIONSHIP MARKETING
Relationship marketing is the creation of
customer loyalty.
Transaction selling: Customers are sold to and not
contacted again.
Relationship selling: The seller contacts
customers after the purchase to determine if they
are satisfied and have future needs.
Partnering: The seller works continually to
improve its customers operations, sales, and
profits.
LEVELS OF RELATIONSHIP MARKETING
TECHNOLOGY BUILDS
RELATIONSHIPS AND PARTNERS
Most dramatic force shaping an
organizations marketing efforts today.
Helps salespeople increase the speed with
which they can find leads, gather
information, reduce paperwork, and
provide service.
Technology is expensive.
RELATIONSHIP MARKETING
AND THE SALES FORCE
These four basic questions are guidelines that define the role of
the sales force:
1. How much selling effort is necessary to gain and hold
customers?
2. Is the sales force the best marketing tool, compared to
advertising and other sales promotion methods, in terms
of cost and results?
3. What type of sales activities for example, technical
assistance and frequent or infrequent sales calls will
be necessary?
4. Can the firm gain strength relative to its competition
with its sales force?
Salespeople generate revenue.
Salespeople provide service.
Service quality is a subjective assessment that
customers arrive at by evaluating the service level
that they perceive being delivered.
Salespeople implement relationship marketing.
PERSONAL SELLING BUILDS RELATIONSHIPS
STRATEGIC PLANNING AND THE
SALES MANAGEMENT PROCESS
PLANNING A SALES STRATEGY
THE DEVELOPMENT OF SALES STRATEGIES
1. A clear picture of the present situation.
2. Well-defined strategies covering every major
aspect of the selling units or departments.
3. Income and expense budgets and profit plan.
A sales strategic plan includes the following four
major questions:
1. What is the sales departments present condition?
2. What trends are apparent?
3. What are the most important objectives?
4. What are the strategies for getting these
objectives accomplished?
SETTING NEXT YEARS SALES PLAN
The sales force may have objectives measured on
the basis of the following:
Contribution to profits.
Return on assets (ROA) managed by the sales
force.
Sales/cost ratio.
Market share.
SALES OBJECTIVES DIRECT OTHER
ACTIVITIES
FIGURE 3.8 THE STRATEGIC SALES FORCE PLANNING PROCESS
Sales Force Objectives
Define Roles, Activities,
and Markets of Sales Force
Establish Organizational
Design and Structure
Staffing Training Directing
Sales Analysis and
Evaluation of Sales Personnel
THE BOTTOM LINE
Strategic planning involves making decisions about an
organizations long-term goals and strategies.
Most people today associate marketing with selling.
This marketing concept evolved over the years, developing as
American businesses matured.
The marketing mix consists of four variables: product, price,
distribution, and promotion.
Firms must carefully consider the role of the sales force in their
promotional program or promotional aspect of the marketing mix.

Chapter 03

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Chapter 03

Transféré par

Droits d'auteur :

Formats disponibles

Copyright 2001 by Harcourt, Inc. All rights reserved.

Copyright 2001 by Harcourt, Inc. All rights reserved.

Vous aimerez peut-être aussi