Lesson 7 Sales Plan - Notes - Vera...

International MBA

Marketing and commercialization in international environments. Lesson 7-10. Sales Plan Professor’s name: Vera Butkouskaya

Content

Content 1. Sales Plan Design 2. International vs. Global Marketing 3. Market attractiveness 4. Country selection matrix 5. Process of entry

Marketing and commercialization in international environments.

© Vera Butkouskaya verapetrovna.com

1. Sales Plan

What is Sales Plan A sales plan is a strategy that sets out sales targets and tactics for the business, and identifies the steps to meet the targets.

A sales plan will help: • define a set of sales targets markets • choose sales strategies that are suited to the target market • identify sales tactics for the sales team • activate, motivate and focus the sales team • budget and clarify steps to achieve targets • review goals periodically and improve approaches to sales.



1. Sales Plan

Why build a sales plan?

• Plan unforeseen risks • Specify directions • Drive creative thinking.



1. Sales Plan

Sales Planning Process



1. Sales Plan

1st Step - Analyze To determine where you are going you first have to see where you have been. where you are at?

• Some questions to ask yourself are:

• What business are we in? • Who are our customers? • Where did most of my sales come from? • Where do we want my sales to come from? • What are some external/Internal factors that can impact my sales?

• Eg. Industry trends, Technology, Competition, Business Environment etc..



1. Sales Plan

2d Step – Set Goals Your goals should be SMART (Specific, Measurable, Attainable, Relevant, Time bound)

What to do?

• Some examples:

• Achieve 1 Million in New Sales by December 31st, 2015 • Sell 2 Corporate wide Licenses by December 31st, 2015 • Grow Distributor Network by 30% by December 31st, 2015



1. Sales Plan

3d Step – Develop Plan How?

Identify Risk/Obstacles Develop Strategies and Tactics



1. Sales Plan

4th Step – Execute Who?

Personnel Needs Sales KPI building Motivation Employee Communications Process Management



1. Sales Plan

5th Step – Evaluate

Evaluation is based on goals.

• Review the plan quarterly in review meetings • Score Card: Measure and Benchmark. • Review what went well, what did not, and make adjustments



1. Sales Plan

The Benefits of Building Repeatable Sales Plan

Lead – a prospective customer Can be reached MQL - a marketing qualified lead Is more effective if reached SQL - sales-qualified lead Has been reached Customer



1. Sales Plan

Sales Plan vs. Marketing Plan Can be used interchangeably

Marketing plan • a product or market-specific and company-wide • aims to identify target market • include marketing strategies • outlines all activities involved in completing a marketing objective

Sales plans: • Territory specific

• includes selection of territories and channels • specifies resources and infrastructures needed for each sales territory • specifies personnel needed

• details the sale strategies • aims to increase revenue



1. Sales Plan

Sales Plan challenges Can be used interchangeably

A marketing plan • a product or market-specific • company-wide • aims to identify target market • include marketing strategies • outlines all activities involved in completing a marketing objective

Sales plans: details the sale strategies aims to increase revenue



1. Sales Plan

Sales Plan challenges

1. Lead with what's in it for your prospect - Sales conversation planning Solution of the problem -> Selling 2. Clearly articulate end results - People buy results, not just products or services. Specify advantages 3. Start with small niche markets Or penetrated by competitors market https://convertkit.com/ 4. Be flexible - avoid "you can’t," "won’t," "that’s impossible» Personalization and adaptation 5. Use lead scoring to prioritize your prospects

http://blog.close.io/sales-strategies



https://convertkit.com/


1. Sales Plan


6. Connect with the decision maker Proper communication strategies. Where and how you can reach as much close as possible?

Step 1. Gatekeeper -> Trust and self-confidence Step 2. Marketing Specialist -> Interest - > Demo

Emails, Phone calls, Trade shows…. Step 3. Demo -> Decision maker

7. Perfect your sales pitch (make it exciting) 8. Use storytelling Positioning





1. Sales Plan

Sales Plan challenges 9. Listen to what your prospects are telling you Communications 10. Give your undivided attention to sales calls Customer service and internal marketing 11. Negotiate for a win-win - Long-term relationships After sale service 12. Follow up until you get a definitive answer 13. Highlight risks and opportunities - Honest sales strength which cover weaknesses 14. Sell yourself Talented employees





1. Sales Plan


15. Develop the right mindset

As the best-selling author, philanthropist and business strategist Tony Robbins explains,

"The most painful mistake I see in entrepreneurs is thinking that just having a good plan or a great product is enough to guarantee success. It’s not. Business success is 80% psychology and 20% mechanics. And, frankly, most people’s psychology is not meant for building a business."

He adds, “The biggest thing that will hold you back is your own nature. Few people are emotionally ready for the challenges of building a business.”





1. Sales Plan


16. Be helpful Customer service, Channels 17. Ask for specific referrals 18. Give short product demos Product planning 19. Reach out to SQL’s* within 24hrs of sign up Communication management and cross-functional integration 20. Address uncertainty when you see it Sales scripts http://blog.close.io/how-to-create-a-sales-phone-script-free-template

http://blog.close.io/sales-strategies *SQL - sales qualified lead



http://blog.close.io/how-to-create-a-sales-phone-script-free-template


2. International vs. Global Marketing

What is international marketing?

International marketing is the application of marketing principles in more than one country, by companies overseas or across national borders. International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to

• Market specific characteristics identification • Targeting decisions internationally




What is Global marketing? Oxford University Press: "Global marketing is a marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.

• Selling same product • No differences between markets

https://youtu.be/Dvc811aAt-E






International vs. Global Marketing International Marketing is adapting your product, to sell all over the world - like a Big Mac (McDonald’s)

• understand different markets and cultures to adapt the product/service • adapt marketing mix to satisfy international customers segments • investment in setting up overseas offices, factories, warehouse facilities, service centres

etc.

Basically, Global Marketing is selling one product all over the world - like an iPad or iPhone (Apple)

• specific tactics to export to many countries • application of marketing mix practices.



2. International vs. Global

Hofstede’s cultural dimensions theory https://youtu.be/rBxCUZnRSjA https://youtu.be/eV04Msn-1GY



https://youtu.be/rBxCUZnRSjA

https://youtu.be/eV04Msn-1GY


Internationalization process

International or global marketing is a stage of an internationalisation process. Internalization process implies global marketing strategies to enter new markets.



3. Market attractiveness

Market attractiveness measurement

Four key factors in selecting global markets are (a) a market’s size and growth rate, (b) a particular country or region’s institutional contexts, (c) a region’s competitive environment, and (d) a market’s cultural, administrative, geographic, and economic distance from other markets

the company serves.



3. Market attractiveness

Market attractiveness measurement

Market attractiveness variables: (a) The size of potential customer niches (b) Penetration rates (c) Occupancy rates (d) Local competition (e) Local marketing costs (f) Market access restrictions (g) Price point in the territory (h) Product adaptation needs (i) Communication or sale strategy according to cultural differences

More https://saylordotorg.github.io/text_fundamentals-of-global-strategy/s07-02-measuring-market-attractivenes.html



https://saylordotorg.github.io/text_fundamentals-of-global-strategy/s07-02-measuring-market-attractivenes.html

4. Country selection Matrix

Market portfolio decisions

Sources of country information: (a) Government websites (b) multinational organizations, such as the United Nations or the World Bank (c) consulting firms specializing in economic intelligence or risk assessment http://www.heritage.org/index/heatmap



http://www.heritage.org/index/heatmap

http://www.heritage.org/index/heatmap


Country attractiveness




Which factors should be considered to evaluate a country?

Return (opportunity) issues: • Size [sales potential] Market size = Production + Import - Export • Easy and compatibility of operation • Costs and resource availability

Risk Issues: • Political Risk • Competitive risk • Monetary risk




Market Potential Index

The MPI measures the likelihood of adults or households in a specified area to exhibit certain consumer behavior as compared to their country’s national average income.

• The index is represent a value of 100 as the overall demand for the country. • A value of more than 100 represents a high demand and a value of less than 100 represents

a low demand. • For example, an index of 120 implies that demand in the trade area is likely to be 20% higher

than the national average; an index of 85% implies demand is 15% lower than the national average.




Global Political Risk Index

https://www.eurasiagroup.net/issues/top-risks-2017 The GPRI is an index of country stability ratings for 24 emerging market countries.

• Its unique methodology measures a country’s ability to absorb political shocks.

• The GPRI evaluates political, social, economic, and security factors, using a combination of quantitative and qualitative data that is collected on the ground and also through open source methods.

• Ratings are expressed on a scale of 0 to 100. • Clear and short analysis accompanies the index to

illustrate what events impacted each country’s stability rating, and make forecasts for the coming month.



https://www.eurasiagroup.net/issues/top-risks-2017


Global Political Risk Index

https://www.eurasiagroup.net/issues/top-risks-2017 The GPRI is an index of country stability ratings for 24 emerging market countries.

• Its unique methodology measures a country’s ability to absorb political shocks. • The GPRI evaluates political, social, economic, and security factors, using a combination of

quantitative and qualitative data that is collected on the ground and also through open source methods.

• Ratings are expressed on a scale of 0 to 100. • Clear and short analysis accompanies the index to illustrate what events impacted each

country’s stability rating, and make forecasts for the coming month.



https://www.eurasiagroup.net/issues/top-risks-2017


Growth-Share Matrix Boston Consulting Group (BCG) model - Product Portfolio




General Investment Framework




Country attractiveness analysis

A country attractiveness assessment is based on two dimensions • Market and industry opportunities • Country risks (many organizations publish country assessment results based on various economic/

political/social factors)

• .




Market and industry opportunities

Market opportunities assessment measures the potential demand in the country for a firm’s products or services based on: • Market size • Growth • Quality of demand.

Industry opportunities assessment determines profitability potential of a company’s presence in a country given the following factors: • Quality of industry competitive structure

(Porter’s five-force Industry Analysis Framework)

• Resource availability (Porter’s diamond framework)




Country Markets and Industries Opportunities




Country attractiveness analysis

Country risk: • Political risks Political risks are probable disruptions owing to internal or external events or regulations resulting from political action of governments or societal crisis and unrest. • Economic risks Economic risks expose business performance to the extent that the economic business drivers can vary and therefore put profitability at stake. • Competitive risks Competitive risks are related to non-economic distortion of the competitive context owing to cartels and networks as well as corrupt practices. The competitive battlefield is not even and investors who base their competitive advantage on product quality and economics are at disadvantage. • Operational risks. Operational risks are those that directly affect the bottom line, either because government regulations and bureaucracies add costly taxation or constraints to foreign investors or because the infrastructure is not reliable.




Country Risk Analysis



5. Entry Modes

Types of entry modes

Modes of entry are the channels which your organization employs to gain entry to a new international market.



Contractual entry mode Relationships with other companies

(+) Lower risks (-) less control

Investment entry mode Developing own company • (+) Total control • (-) too risky

5. Entry Modes

Types of entry modes

●Exporting (direct and indirect) ○ International Agents and International Distributors

●Licensing ○ Franchising ○ Contract manufacturing

●Strategic Alliances and Joint venture ●Direct investment (Overseas manufacture) ●Internet



5. Entry Modes

Exporting

Direct exporting - organization market overseas on its own behalf. (+) control (-) risks (-) time (-) expenses

Indirect exporting - exporting agents from the company’s country – which handles exporting on their behalf.

Piggybacking - the existing distribution and logistics of another business. Export Management Houses (EMHs) all-in-one ready export services. Consortia - organizations that group together two market related, or unrelated products in international markets. Trading companies - they use business relationships as part of their competitive advantage.



5. Entry Modes

International Agents and International Distributors

Agents are individuals or organizations that are contracted to your business, and market on your behalf in a particular country. take a commission on goods sold

(+) a low-cost (-) a low-control (-) may represent competitors (-) difficult to recruit, retain, train

Distributors are similar to agents, with the main difference that distributors take ownership of the goods.



5. Entry Modes

Licensing

Licensing is where your own organization charges a fee and/or royalty for the use of its technology, brand and/or expertise.

Franchising - the franchiser -> assets -> to the franchisee (Brand, concepts, expertise). Management controlled by the franchiser. Dominos Pizza, Coffee Republic and McDonald’s Restaurants. Contract manufacturing - a long-term contract with local company to manufacture product. The iPad and iPhone, which are products from Apple Inc., are manufactured in China by Foxconn. Turnkey contracts - build large plants including the training and development of key employees where skills are sparse. Toyota’s car plant in Adapazari, Turkey



5. Entry Modes

Strategic Alliances (SA)

Strategic alliances - relationships between companies (competitors) that market internationally.

Shared manufacturing e.g. Toyota Ayago is also marketed as a Citroen and a Peugeot. Research and Development (R&D) arrangements. Distribution alliances e.g. iPhone was initially marketed by O2 in the United Kingdom. Marketing agreements.

non-equity based agreements i.e. companies remain independent and separate.



5. Entry Modes

Joint Ventures (JV)

Joint Ventures - a new company with other company (competitor). Access to distribution channels, manufacturing and R&D. Access to technology, core competencies or management skills.

Honda’s relationship with Rover in the 1980’s. To gain entry to a foreign market.

to enter China any business needs a local Chinese partners. equity-based i.e. parties owning a proportion of the new business.



5. Entry Modes

Overseas Manufacture

owning an overseas manufacturing plant i.e. the organization invests in plant, machinery and labor in the overseas market

New-build Company might acquire a current business that has suitable plant etc

(+) business becomes localized



Lesson 7 Sales Plan - Notes - Vera...

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