Organizational Strategies and The Sales Function

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Organizational Strategiesand The Sales Function

• Module Three

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Organizational Strategy Levels
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Organizational Strategy Levels
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Definition ofStrategic Business Units (SBUs)
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SBU Objectives andthe Sales Organization
Salary plus incentive
Prospective and new accounts Provide high service
levels particularly pre-sales service Product/mark
et feedback
Build sales vol. Secure distrib.
_____
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SBU Objectives andthe Sales Organization
Salary plus commission or bonus
Call on targeted current accounts Incr. service
levels to current accounts Call on new accounts
Maintain sales vol. Consolidate market position
through concentration on targeted segments Secure
additional outlets
______
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SBU Objectives andthe Sales Organization
Salary plus bonus
Service most profitable accounts eliminate
unprofitable accounts Reduce service
levels Reduce inventories levels
Reduce selling costs Target profitable accounts
_______
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SBU Objectives andthe Sales Organization
Salary
Dump inventory Eliminate service
Minimize selling costs and clear out inventory
____________________
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Business Strategy andthe Sales Function
Strategy Type
Sales Force Role
Pursue large customers Minimize cost Compete on
price Seek customers who are low price shoppers

• _______________

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Business Strategy andthe Sales Function
Strategy Type
Sales Force Role
Compete on non-price benefits Provide high
quality customer service Seek customers who are
not low price shoppers

• _______________
• _______________

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Business Strategy andthe Sales Function
Strategy Type
Sales Force Role
Serve a distinct target market not served well by
others Provide high quality customer service Seek
customers who are not low price shoppers

• _______________
• _______________
• _______________

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Marketing Strategy andthe Sales Function

• Advantages
• Only promotional tool that consists of personal
  communication between seller and buyer
• ______________ and has more impact
• Better timing of message delivery
• Ability to _________________________
• Allows for sale to be closed
• Disadvantage
• __________________________

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Personal Selling-Driven vs. Advertising-DrivenMar
keting Communications Strategies
Personal Selling
When Message ________ is Important When Message
________ is Important When ________________ is
Important When ________________ is Important When
________________ the Sale
When ________________ is Important When
________________ is Important When
________________ is Important When
________________
Advertising
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Target Market Situations andPersonal Selling

• Target Market
• A definition of the specific _____________ 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

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Integrated Marketing Communications
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The Sales Strategy Framework
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Organizational Buyer BehaviorTypes of
Organizations

______ purchase products and services to
produce other products and services
___________________ purchase products to
incorporate into products
_____________ purchase products to sell
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Organizational Buyer BehaviorTypes of
Organizations

Federal, State, and Local Government Agencies
Government Organizations
Public and Private Institutions
Institutions
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Organizational Buyer Behavior Buying Situations

• __________________________
• Routinized Response Behavior
• __________________________
• Limited Problem Solving
• __________________________
• Extensive Problem Solving

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Organizational Buyer Behavior Buying Center

• __________
• __________
• __________
• __________
• __________
• __________

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Organizational Buyer BehaviorBuying Process

• Phase 1 __________ Problem/Need
• Phase 2 Determine Item Specs/Quantity Needed
• Phase 3 _________________________ Needed
• Phase 4 Identify and Qualify Potential Sources
• Phase 5 _____________________ Proposals
• Phase 6 Evaluate Proposals/Select Suppliers
• Phase 7 ______________________
• Phase 8 Performance Feedback/Evaluation

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Personal and Organizational Needs
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Sales StrategyAccount-Targeting Strategy

• The _______________________ withina _________
  market into categories forthe purpose of
  developing __________ approaches for selling to
  each account or account group.

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Sales StrategyRelationship Strategy

• A determination of the type of __________ to be
  developed with different account groups.

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Characteristics of Relationship Strategies
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Sales Strategy Selling Strategy

• Ensuring that accounts receive ___________________
  __ in an effective and efficient manner.

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Matching Selling andRelationship Strategies
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Sales Strategy Sales Channel Strategy

• The planned selling approach for each
  relationship strategy.
• The Internet
• Industrial Distributors
• Independent Representatives
• Team Selling
• Telemarketing
• Trade Shows

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Sales Strategy The Internet

• __________________________
• Gather Information about Customers
• __________________________
• Conduct Surveys
• __________________________
• Obtain Feedback
• __________________________

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Sales Channel StrategyIndustrial Distributors

• Have Their Own Sales Force
• May Represent One Manufacturer Several
  Non-competing Manufacturers Several Competing
  Manufacturers
• Normally Carry Inventory

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Sales Strategy Independent or Manufacturers
Reps

• Sell _______________ products from non-competing
  manufacturers.
• Do Not Normally _________________
• Paid for Performance
• __________________ over Selling Effort
• Reduced Access to Customer Information

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Sales Strategy Team Selling

• Three Selling Situations
• ________________ Selling
• ________________ Selling Situation
• ________________ Selling Situation
• Two Types of Team Selling
• ________________ Selling
• ________________ Selling

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Sales Strategy Telemarketing

• 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

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Sales Strategy Trade Shows

• Generate __________
• ___________ New Products
• Introduce New Products
• ___________
• Gather Competitive Information
• Service Existing Customers
• __________ Corporate Image