Chapter 2-1

2 Strategic Sales
Force Management

You got to be very careful

if you don’t know where
you’re going, because you
might not get there.
Yogi Berra

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 2-2
Macroenvironmental
Figure 2-1: forces:
Demography
A company’s Economic conditions
complete Sociocultural factors
Political-legal factors
marketing Technology
Competition
system
Company’s marketing mix:
Product planning
Marketing Price structure Marketing The
Suppliers intermediaries intermediaries
Distribution system market
Promotional activities

Nonmarketing resources in the firm:

Production Public image

Financial Research and
Personnel Development
Location
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 2-3

The Marketing Concept

A philosophy: Achieving organizational goals depends
on the firm’s ability to identify the needs and wants of a
target market, and then to satisfy those needs and
wants better than the competition does.

 Based on three fundamental beliefs

 Company planning and operations should be customer or
market oriented.
 Marketing activities in a firm should be organizationally
coordinated.
 The goal of the organization should be to generate
profitable sales volume over the long run.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 Evolution of
2-4

Marketing Management
 Production orientation
 Focus on mass-producing a limited variety of products for
as little cost as possible.
 Sales orientation
 Age of the hard-sell.
 Marketing orientation
 The marketing concept first emerges.
 Relationship orientation
 A natural extension of the marketing-orientation stage.
 The buyer and seller commit to doing business over a
long time.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
 2-5

Figure 2-3

How do these
selling styles
depicted in this
1927 cartoon
relate to the
four stages in
the evolution
of marketing
management?

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 Relationship Marketing:
2-6

Four key issues

Open communication
Empowering employees
Customers and the planning process
Working in teams
 Total quality management

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 2-7

Teaching Teamwork
 In your opinion, which one of these (if any) would be
most effective at teaching a salesperson how to be an
effective member of a selling team?
 Cooking class
 Drum circle
 Military exercise
 Outdoor adventure
 Ropes exercise

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 2-8

Integrating…
 …Marketing and Sales
 Marketing executives  develop marketing strategy
 Salespeople  implement the strategy in the field

 …Production and Sales

 Production makes what Sales sells
 Close integration / accurate forecasts needed, or else…
 Under-production  dissatisfied customers
 Over-production  excessive, costly inventory

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 2-9

Strategic Planning Set

Objectives
 Objectives are the broad
goals around which a strategic
plan is formulated. Formulate
 Strategies are the plans of Strategies
action.
 Tactics are the specific
activities that people must
perform in order to carry out
Develop Tactics
the strategy.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 2-10

Company Strategy-
Marketing Objectives and Strategy
Company

Objectives Marketing
Earn 20% ROI

Strategy
Objectives
Increase marketing share 10% Increase market
share 10%

Strategy
Increase share of customer business

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 2-11

Marketing Strategy-
Sales Force Objectives, Strategy and Tactics
Marketing

Objectives
Increase market share 10%
Sales Force

Strategy
Increase share of customer business
Objectives
Increase share of
customer business

Strategy
Build long-term
customer relations

Tactics
Develop sales teams
Provide bonuses for greater customer share

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 2-12

Strategic Trends
 Internet Selling
 Multiple Sales Channels
 Multiple Relationship Strategies
 Transaction selling  Consultative selling

 In this era of global warming, toxic waste, pollution, and

other concerns, marketing executives must act in a
socially responsible manner if they wish to succeed or
even survive.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

 Customer Relationship
2-13

Management
 CRM practices
 Involve a company-wide software application utilizing
advanced computer- and Internet-technology.
 Aggregate all information about customers into a single
database.
 Provide salespeople/customers access to timely and
relevant information.
 Allow effective management of every aspect of the buyer-
seller relationship.
 Require training
 Only effective if salespeople embrace it and are willing to
use it.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.