Strategic Sales Force

Management

In Order to achieve marketing objectives, the sales force must

be seen as an integral part of the marketing strategy
The Marketing System
A marketing system operates within a framework of forces its
environment.
Two Sets of Forces
1.
External Environment

Demography

Economic condition

Socio Cultural Factors

Political-Legal Factors

Technology Competition

Continuation..
2. Internal Variables in Marketing System

The companys resources in non-marketing areas

The components of its marketing mix

Marketing Mix
describe the combination of four ingredients that constitute the core of a
companys marketing system. When effectively blended, these four - form
Of a marketing program designed to provide want-satisfying goods and
services to the companys market.
Product
Price
Distribution
Promotion

Continuation.
Promotional Mix major elements are:
a.)
b.)
c.)

Advertising
Sales Promotion
Personal selling effort

The Marketing Concept and Marketing

Management
Marketing Concept three fundamental beliefs
Customer or Marketing oriented
Organizationally coordinated
Profitable sales volume over the long run
Marketing Management and its Evolution
Chief marketing executives responsible for planning, implementing,
and coordinating all marketing activities and integrating them into
the overall operations of the firms. These process is called
marketing management.

Four stages in the evolution of

marketing management

Production Oriented-stage
the executive in production and engineering shape the
companys objectives and planning.

Sales Orientation-Stage
the main problem in our economy was no longer the ability to make or
grow enough products. Rather, the problem was selling this output.

Continuation.
Marketing Orientation-Stage
directed toward the twin goals of customer satisfaction and
profitable sales volume.

Relationship Orientation-Stage
buyer and seller make a commitment to each other to do
business over a long time period rather than view each sales as a
discrete transaction.

Relationship Marketing

Understanding customer expectations

Building service partnerships

Empowering employees

Total quality management

Relationship Marketing

Understanding customer expectations

Companies must be able to identify what the customer
want and market a product to them that exceeds their
expectation

Relationship Marketing

Building service partnerships

Companies must work closely with their
customers to add information and services
beyond their traditional products to increase the
value of their offerings to customers.

Relationship Marketing

Empowering employees
Companies must encourage and reward their
salespeople for taking initiative and using
creativity in helping solve customer problems.

Relationship Marketing

Total quality management

This is the process by which the company
strives to improve customer satisfaction through
the continuous improvement of all its operation.

Integrating Marketing and Sales

Functions
Sales force is an invaluable source of information which marketing
should draw upon in designing product/marketing strategies.

Marketing is charged with the responsibility of providing the

sales force with the marketing tools they need to sell more
effectively, such as advertising, support services, and sales
promotions.

Sales
people
have
the
primary
responsibility for implementing marketing
strategies.

Integrating and Production Sales

Sales plans provide the basis of production forecasts

materials requirements and production schedules
are developed based on sales forecasts.

Strategic Planning
Objectives -are the goals around which a strategic plans is
formulated.
Strategies - or plans of action, are developed to achieve
the objectives.
Tactics - activities which must be performed by the people
in order to carry out the strategy.

Strategic Planning at the Company, Marketing, and

Sales Force levels
The strategic planning on all level in the firm should be well
integrated and highly coordinated

Strategic Planning for the Total Company

Strategic Planning for the total company involves determining the

organizations mission, the Board Objectives (Goals) that will
enable the company to fulfill its mission, and the strategies and
tactics needed to achieve the objectives.

Strategic Planning for the Total Company

1st Determine the companys mission
2nd Management set broad goals consistent with that mission
Example: The company may aim to earn a 20% ROI next year
or to increase its market share from 8% to 20% in 3 years.
3rd Select the strategy to be used to reach the goal
Goals

Possible Strategies

1. Earn 20% ROI next year.

a. Reduce production and marketing

costs
b. Increase rate of capital turnover

2. Increase market share form 8% to

20% in 3 years

a. Intensify marketing efforts in

domestic markets
b. Expand into foreign markets
c. Buy out a competitor

Strategic Marketing Planning

Once the total company planning process is completed,
essentially the same procedure can be repeated for the
marketing Program the Goals, Strategies, and Tactics
at the Marketing level are closely related to those at the
corporate level.
Company Goal

Company Strategy

Marketing Strategy

1. Earn 20% ROI

Cut marketing costs by

15% this year

Reduce direct selling

efforts by using
wholesalers to reach
small accounts

2. Increase market share

from present 8% to 20%

Intensify marketing
efforts in domestic
markets

Enter new markets

Sales Force Strategy

Once the strategic planning process for the entire

Marketing Program has been completed, the role of
the sales has largely been established.

Corporate Goal:

Increase market share from 8% to 20%

in two years

Corporate Strategy (Marketing Goal):

Intensify market efforts in domestic

markets to increase sales volume by
3M next year

Marketing Strategy (sales force goal):

a. Enter new geographic markets and

sell to new types of customers, or
b. Cover existing geographic markets
more aggressively

Sales Force Strategy

Whether the company selects to pursue marketing

strategy a or b will make a big difference in the
choice of the sales strategies and tactics

Marketing Strategy

Sales Force Strategy

Sales force Tactics

a. Enter new markets

Build long-term customer

relations

b. Sell aggressively in
existing markets

Increase sales force

motivation

1. Stress missionary
selling in sales
training and
supervision
2. Stress salary element
compensation
plan.
1. in
Conduct
more sales
contests
2. Stress commission
feature in sales plan
3. Increase field
supervision

Strategic Trends
1.

2.

Multiple Sales Channels- These methods may be

used to reach different segments of customers or to
perform various selling tasks necessary to efficiently
serve one segment.
Multiple Relationship Strategies- These can vary from
one in which the sale is just an individual transaction
to one in which the company develops a close longterm relationship or even a partnership with the
customers.

Transaction Selling- Sales People emphasize the product,

Its quality, and the price.
Relationship Selling- Sales people develops in depth-knowledge of
their customers company and business.
Partnership- Companies from strategic alliances in order to joint goals
3. Systems Selling- is a strategy adopted by firms in response to the
customers desire for solutions. This strategy involves selling a total
package of goods and services and the related expertise.
4. Team Selling- Is composed of one or more sales people as well as
other functional specialists, such as design engineers, financial
experts, customer service representatives and quality control
engineers.