Chapter 14 Sales Force Strategies in the Global Marketplace - PowerPoint PPT Presentation

Loading...

PPT – Chapter 14 Sales Force Strategies in the Global Marketplace PowerPoint presentation | free to download - id: 7cf0c1-ZGZhY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Chapter 14 Sales Force Strategies in the Global Marketplace

Description:

... This is a detailed report of what is actually happening in the various markets served by ... market dynamics, environmental ... When assessing opportunities and ... – PowerPoint PPT presentation

Number of Views:61
Avg rating:3.0/5.0
Slides: 31
Provided by: jbf2
Learn more at: http://www.routledge.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Chapter 14 Sales Force Strategies in the Global Marketplace


1
Chapter 14 Sales Force Strategies in the Global
Marketplace
  • Sales Management
  • A Global Perspective
  • Earl D. Honeycutt
  • John B. Ford
  • Antonis C. Simintiras

2
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Small Businesses normally move through a series
    of evolutionary stages in terms of formalized
    planning. The normal process involves the
    following stages
  • Planning as a Luxury
  • Budgeting
  • Annual Planning
  • Long-Range Planning
  • Strategic Planning

3
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Planning as a Luxury
  • Most entrepreneurial companies begin with the
    assumption that day-to-day survival is
    all-important.
  • As a result, there is no perceived need for
    formalized planning.
  • Planning requires time, which is considered a
    luxury.

4
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Budgeting
  • Eventually there will come a time when an
    entrepreneur realizes that he or she does not
    have the financial resources that are needed to
    do what they feel is necessary.
  • The first need for formalization therefore
    focuses on the budgeting process where time must
    be taken to anticipate financial needs so that
    proper amounts can be set aside when the need
    arises.
  • Eventually this leads to problems since the focus
    is on internal assessments of future finances,
    neglecting an external assessment of competitors
    and consumer needs.

5
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • The annual marketing plan is the first serious
    attempt at formalized planning and requires both
    internal and external assessments.
  • By the time that the firm is in a position to
    develop marketing plans, it has probably grown
    considerably in size, and the plan will
    incorporate components from different functional
    areas within marketing.
  • One of these key component areas would be the
    sales area.
  • It is important to remember that plans are
    normally developed in a hierarchy which stretches
    from the company as a whole down to each of the
    separate functional areas operating within the
    firm.

6
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • The marketing plan (or the sales plan embedded
    within it) will normally contain the following
    elements
  • Goals
  • Objectives
  • Strategies
  • Tactics
  • Budgeting
  • Controls

7
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Goals
  • The overall statements of where you want to be at
    a particular point in time in the future.
  • They must be stated in a way which is specific
    and quantifiable.
  • They serve as benchmarks for performance, and if
    they are not quantifiable, they cannot be used as
    benchmarks for performance.
  • Saying that the firm wants to be number 1 is of
    little value since it is not clear how this
    position would clearly be measured. Is it based
    on sales or units sold?
  • Goals are statements of what you hope will
    realistically happen at the end of the one-year
    period, and they allow ongoing comparisons
    between what you expected to accomplish (the
    goals) and your actual performance.

8
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Objectives
  • Objectives are similar to goals in that they are
    statements of where and when however, they are
    stated in terms of a variety of expectations
    which are under the umbrella of the goal.
  • While there is an over-riding goal statement,
    there are usually a series of objectives that are
    complementary in nature.
  • Suppose that the overall goal for the sales force
    is to increase sales by 20 over the next year.
    Typical objectives that would support the overall
    goal would be such expectations as
  • Increasing customer satisfaction ratings by 10.
  • Reducing response time from 36 hours to 30 hours.
  • Increasing time spent with A-level customers by
    5 while reducing time spent with C-level
    customers by 5.

9
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Strategies
  • Strategies are the action plans that allow us to
    reach the goals and objectives which have been
    set.
  • They are the statement of how we are going to get
    where we plan to go by the expected time of
    arrival.
  • The strategies would involve such things as
  • Providing the sales force with laptop computers.
  • Adding three sales people in Europe.
  • Bringing sales people in for retraining in
    customer relationship management.
  • Introducing more efficient call reporting
    mechanisms.

10
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Tactics
  • Tactics are the day-to-day details that are part
    of the overall strategies.
  • They are the individual pieces of the action
    plan.
  • The adding of three sales people in Europe from
    the previous section would constitute a tactic.

11
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Budgeting
  • Budgeting involves the assessment of the
    financial/resource needs of the firm for the
    coming period of time.
  • Sales managers have to sit down and examine all
    possible expenses for the sales function and
    present a budget to firm management.
  • There are four regularly used methods for setting
    budgets
  • All You Can Afford
  • Percent of Past Sales
  • Percent of Future Sales
  • Objective and Task

12
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Budgeting
  • All You Can Afford
  • This method involves management telling the sales
    manager just exactly how much money will be
    available for the sales function.
  • This is often seen in centralized, top-down
    structured enterprises.
  • Budgets are determined by top management and
    apportioned as judged appropriate by senior
    management.
  • A poor mechanism for setting sales budgets since
    it does not consider the particular needs and
    expectations of the sales function.

13
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Budgeting
  • Percent of Past Sales
  • This method is normally based upon historical
    evidence which suggests that a particular
    percentage apportionment is appropriate.
  • Some firms simply allocate the same amount (as a
    of past sales) each year for the sales manager
    to use as needed.
  • The rationale often used for this method is that
    the sales figures were actual sales as opposed to
    projected sales, which may never be reached.
  • The flaw in the logic is that it should not be
    the sales themselves which produce the sales
    budgets it should be the sales budgets which
    lead to the achievement of sales.

14
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Budgeting
  • Percent of Future Sales
  • This method is based on a sounder logic, and this
    is probably the most-used mechanism for budget
    allocation is use today.
  • The percentage which is utilized is usually based
    upon industry standards.
  • The main drawback to this type of budgeting is
    that industry standards do not necessarily mean
    the best allocations. They merely represent the
    collective wisdom of the industry and can serve
    as an effective starting point for sales managers
    when looking at expenses for the upcoming period.

15
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Annual Planning
  • Controls
  • These involve mechanisms which would allow the
    sales manager to monitor ongoing performance and
    take corrective action if necessary.
  • Goals and objectives that are specific and
    quantifiable can serve as effective benchmarks
    for performance.
  • If there is a discrepancy between actual sales
    performance and expected performance, then some
    kind of corrective action can be taken to get
    things back on track.
  • The type of control mechanism will depend upon
    the specific goals/objectives that have been set.
    If we want to increase customer satisfaction
    levels, we can use customer surveys for control.
    If we want to increase the number of sales calls
    being made, we can use salesperson call reports.

16
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Long Range Planning
  • With this evolutionary step the time horizon is
    extended for planning purposes.
  • Annual planning is maintained while a longer-term
    perspective is achieved through the long-range
    plan.
  • Many firms begin by developing a 5-year plan,
    which is written in more general terms than the
    annual plan.
  • Looking at trends that are occurring outside of
    the firm is a necessity here so that the firm
    will not be caught by surprise by changes which
    can significantly affect performance.

17
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Long Range Planning
  • An important component of long-range planning is
    the process known as environmental scanning which
    involves careful examinations of external trends.
  • Environmental scanning should include the
    following types of careful external assessments
  • Political changes
  • Legal changes
  • Economic changes
  • Technological changes
  • Societal changes
  • Cultural changes

18
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • The most advanced stage is known as strategic
    planning.
  • The previously mentioned components are all
    retained in the strategic plan (budgeting, annual
    planning, and long-range planning), but the
    strategic plan will add a significant amount of
    information based upon an additional set of
    perspective enhancing tools and techniques.
  • Strategic planning enhances the chances of
    gaining competitive advantage by systematically
    matching up the skills and abilities of the firm
    with the opportunities in the marketplace.

19
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • The goal is to maximize the firms strengths
    while minimizing its weaknesses.
  • The only way for this to happen is through a
    thorough analysis of not only the firm and its
    resources, but also the customers and the
    competition.
  • Strategies need focus and direction,, and when a
    firm gets to this stage, it needs a better
    mechanism for developing its marketing/sales
    plan.
  • Strategic focus is aided greatly by the
    development of
  • Mission statement
  • Vision statement

20
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • The mission statement is the statement of what
    the company is in business for.
  • It conveys valuable information not only about
    what the company does, but it also tells what the
    company does not do.
  • Annual and long-range plans are written under the
    umbrella of the mission statement to maintain
    consistency and focus.
  • The vision statement is a more recent addition to
    the strategic planning literature.
  • It is a statement of where management would like
    to see the firm move in the future.
  • It should be written under the limitations of
    scope established by the mission statement.

21
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • An overview of the tools and techniques that help
    in the development of effective strategic sales
    plans are found in Figure 14-1.

22
(No Transcript)
23
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • Decision Support System
  • This refers to the intelligence gathering and
    storing mechanism for use in the strategic
    planning process.
  • For the sales function this would involve
    systematic input from field sales people on what
    is happening in their territories, internally
    generated reports (e.g., sales to quota reports,
    new account generation forms, etc.), outside
    secondary studies (e.g., A.C. Nielsen reports,
    Euromonitor reports, etc.), and relevant primary
    data studies (e.g., customer satisfaction
    surveys, perceptual mapping studies, etc.).
  • There has to be an effective mechanism that will
    allow the collection of this information,
    storage, and dissemination when it is needed.

24
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • Situational Assessment
  • This is a detailed report of what is actually
    happening in the various markets served by the
    company and why.
  • This report looks at the customers served, the
    competitors, market dynamics, environmental
    factors which affect the market, company sales,
    profits and costs.

25
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • Competitor Assessment
  • A detailed competitor assessment helps to
    strengthen the situational assessment.
  • The best model ever devised for this type of
    assessment is the Five Forces Model that was
    developed by Michael Porter at Harvard, which has
    been adapted for the sales function in Figure
    14-2.

26
(No Transcript)
27
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • Core Competency Assessment
  • This involves an identification of what the
    company does that is not easily duplicated by
    someone else.
  • When examining the sales function in particular,
    the sales manager must look at the entire
    functional area to see where distinctive
    competencies may lie.
  • One way that a competency might be achievable is
    in ensuring the highest value for the customer.
  • Distinctive competencies could lie in
  • A brand name which is highly valued by the
    customer.
  • A delivery system that outperforms the
    competitors.
  • Long-term relationships which provide exceptional
    value for the customer.

28
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • Contingency Planning
  • This involves the development of a series of
    alternative responses to particular occurrences
    in the market.
  • What is deadly for a company is to have something
    happen which was not anticipated.
  • Should this happen, the company is often forced
    to stop, step back and assess the situation, and
    then develop a strategic response to what has
    happened.
  • If history teaches companies anything, it is that
    a delay of this kind could be disastrous.
  • In order to avoid this possibility, the sales
    manager must look at a bare minimum of three
    scenarios 1) best case, 2) worst case, and 3)
    status quo (if things continue as they have
    been).

29
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • SWOT Analysis
  • This is an attempt to assess the companys
    strengths, weaknesses, opportunities and threats.
  • The previous tools and techniques discussed all
    add valuable information that can be effectively
    used in this type of analysis.
  • For the sales manager, strengths and weaknesses
    would be assessed by examining the sales force
    and the various support mechanisms available for
    them.
  • When assessing opportunities and threats, the
    sales manager has to consider the probability of
    certain things happening.
  • Looking at the information generated by the
    situational analysis and the assessment of the
    future in contingency planning provide an
    excellent basis for estimating the probabilities
    of future occurrences.

30
Sales Force Strategies in the Global Marketplace
  • The Strategic Planning Process and the Sales
    Function
  • Strategic Planning
  • SWOT Analysis
  • The sales manager must also be careful to
    consider both short-term as well as long-term
    effects of possible changes in policies and
    practices.
  • Once this type of analysis is thoroughly done,
    then the sales manager is in a much stronger
    position to develop meaningful annual plans and
    long-range plans that are strategically focused.
  • Strategic planning really is a perspective
    enhancing process.
  • It provides the sales manager with all of the
    information to make appropriate decisions and
    enhance the chances of gaining a competitive
    advantage.
About PowerShow.com