Part One: Strategic Planning Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall....

Part One:Strategic Planning

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.1-1

Sales Management: Shaping Future Sales Leaders

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.1-2Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Introduction to Sales Management

Chapter 1


Learning Objectives

Define strategy hierarchy and understand how sales and marketing strategies affect overall strategy

Identify different types of selling strategies and how the selling process varies

Describe the sales management process and responsibilities and activities of sales managers


Managing Sales Force Is Important

Sales positions are hardest to fill

Sales consumes >20% of a firm’s revenue


$$$

Sales starting salaries are ~20% higher than other marketing positions

Many CEOs get their start in sales

Sales managers earn more than managers in other areas

Sales jobs predicted to grow at a faster rate than other professions


From Sales Rep to Sales Manager

“Manager of people”

Sales success is poor predictor of success as sales manager

Most successful sales reps are eventually pressured to make the transition to sales mgmt

“This is a decision that must be carefully analyzed because it’s not an easy transition to go from being a player to a coach.”


What Being a Sales Manager Means

Coaching Coaching salespeople so they can improve

Developing Developing strategies and delegating the

responsibility for implementation to others

Motivating Figuring out how to motivate people, some who

are older than you

Convincing Convincing others that what is right for the sales

force is right for their departments, too


Establishing the Parameters of the Firm’s Strategy: The Mission Statement

Inspire the members of an organization

Give purpose to their actions

Guide their decision-making

Serve as a standard against which decisions can be weighed

Once the mission’s objectives are set, strategy can be created


Sample Mission Statements

Everything we do is inspired by our enduring mission: To Refresh the World . . . in body, mind, and spirit To Inspire Moments of Optimism . . . through our

brands and our actions To Create Value and Make a Difference . . .

everywhere we engage

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit

Coca-Cola

Southwest Airlines


The Strategy Hierarchy

Corporate strategy encompasses plans and goals for the entire organization

Address questions such as what markets and sourcing options company should engage Ex: hire sales force vs. use distributors Ex: outsource mfg and focus internally on marketing

Business units create their plans to support corporate strategy


CorporateStrategy

Marketing Strategy

Sales Strategy

The Strategy Hierarchy


Creating a Marketing Strategy

Markets What markets do we serve with what products?

Relationships What types of relationships do we form and with

whom?

Investment What level of investment will be required, and

how will we locate and allocate the needed resources?

Objectives What are the detailed objectives and action

plans?


What Markets Do We Serve with What Products?

Find a sustainable competitive advantage

Need expertise, technology or a patent


Product-Market Grid


What Types of Relationships Do We Form and with Whom?

Strategic plan considers network of relationships Investors, potential investors, bankers Suppliers Personnel sources Regulatory agencies

Relationship with customers is most important

A service advantage is often a function of the quality of relationships

Customers’ lifetime value is worth more than the average single purchase


Customer Relationship Management (CRM): Key Terms

CRM: identifying and grouping customers to best acquire, retain, and grow customers Sales and marketing teams are responsible for CRM

Customer acquisition strategy: plan to obtain new customers

Customer retention strategy: plan designed to keep customers

Growth strategy: plan designed to increase sales to the same customers


S o u th A tlan tic O ce an S o u th P ac if ic O cean

N o rth P ac ific O cean

N o rth A tlan tic O ce an

In d ia n O c ean

A rc tic O ce an A rc tic O ce an A rc tic O ce an


U n ited S ta te s o f A m erica

U .S .A .

C an a d a

M e x ic o

B raz il

U . S . A .

F re n c h P o ly n e s ia (F r.)

A rg e n tin a U ru g u a y

P a ra g u a y

C h ile

B o liv ia

P e ru

E c u a d o r

C o lo m b ia

Ve n e z u e la F re n c h G u ia n a (F r.)

S u rin a m e G u y a n a

T h e B a h am a s

C u b a D o m in ica n R e p u b lic

P a n a m a C o s ta R ic a

N ica ra g u a

H o n d u ra s G u ate m a la

E l S a lv a d o r

T rin id a d a n d To b ag o

Ja m . H a iti P u e rto R ic o (U S )

G re e n la n d (D e n .)

Ic e la n d

M a d a g a sc a r

S o u th A fr ic a L e so th o

S w a z ila n d

M o z a m b iq u e

Ta n z a n ia

B o tsw a n a N a m ib ia Z im b a b w e

A n g o la

Z a ire

Z a m b ia

M a la w i

B u ru n d i

K e n y a R w a n d a

U g a n d a

C o n g o

G a b o n

S o m a lia

E th io p ia

S u d a n

D jib o u ti

B e liz e

E g y p t L ib y a

C h a d

N ig e r

A lg e ria

M a li

T u n is ia

N ig e r ia

C a m e ro o n C . A . R .

B e n in

To g o G h an a

B u rk in a F a so B a rb a d o s

D o m in ica

C ô te D ’Iv o ire

L ib e ria

S ie rra L e o n e

G u in e a G u in e a -B issa u

S e n e g a l T h e G a m b ia

M a u rita n ia

W es te rn S ah a ra (M o r.)

M o ro c c o

F in la n d

N o rw a y

S w e d e n E sto n ia L a tv ia

L ith u a n ia

P o lan d

R o m a n ia

B u lg a r ia

T u rk e y G re e c e

C z ec h .

H u n g .

I ta ly A lb a n ia

P o rtu g a l

F ra n c e

S p a in

A u s. S w itz .

U n ite d K in g d o m

Ire la n d

D e n .

G e rm an y N e th .

B e l.

C y p .

Ye m e n

O m a n S a u d i A ra b ia U . A . E .

Q a ta r

I ra n I ra q

S y ria

Jo rd a n

Isra e l L e b . C h in a

M o n g o lia

R u ss ia

A fg h a n is ta n

P a k is ta n

In d ia

S ri L an k a M a ld iv e s

N e p a l B h u .

M y a n m a r (B u rm a ) B a n g .

A n d a m a n Is la n d s (In d ia )

T h ai la n d

In d o n e s ia

M a la y s ia

B ru n e i

P h ilip p in e s

Ta iw a n

C a m b o d ia

V ie tn a m

L a o s

A u stra lia

P a p u a N ew G u in e a

N e w Z e a la n d

F ij i

N e w C a led o n ia

S o lo m o n Is la n d s

K ir ib a ti

M a rs h a ll Is lan d s F e d e ra te d S ta te s o f M ic ro n es ia

G u am (U S A )

Ja p a n

N . K o re a

S . K o rea

K u ri l Is la n d s

W ra n g e l Is la n d

A leu tian Is lan d s (U S A )

N e w S ib e r ia n Is la n d s

S e v e rn a y a Z e m ly a

N o v a y a Z e m ly a

F ra n z Jo se f L a n d S v a lb a rd (N o r.)

Ja n M a y en (N o r.) B a n k s Is lan d

Vic to r ia Is la n d B a ffin Is la n d

E lle sm e re Is la n d

Is lan d o f N e w fo u n d lan d

A n ta rc tic a

Î le s C ro ze t (F ra n ce )

Tasm an ia

S o u th G e o rg ia (a d m . b y U K , c la im e d b y A rg e n tin a )

F a lk la n d Is la n d s (Is la s M a lv in a s) (a d m . b y U K , c la im e d b y A rg e n tin a )

K u w a it C a n a ry Is la n d s (S p .)

S a o To m e & P rin c ip e

S in g a p o re E q . G u in e a

F a ro e Is . (D en .)

K a z a k h s ta n

B e la ru s

U k ra in e

M o ld o v a

G e o rg ia A rm e n ia A z e rb a ija n

T u rk m e n is ta n

U z b e k is ta n K y rg y z sta n

Yu g o .

M a c .

S lo v. C ro .

B o s .

S lo v a k .

E ri tre a

Ta jik is ta n

H aw a iian Is lan d s

G a la p ag o s Is la n d s (E cu a d o r)

M a u rit iu s

S e y c h e lle s

6 0 °

Global Sales Management:Going Global to Achieve Growth

QuadRep’s expanding customers wanted local support in Singapore

QuadRep opened office in Singapore

Has since followed customers across the globe, opening offices in Malaysia, China, Taiwan, Thailand, the Philippines, and Mexico

Source: Charles Cohon, Vice President of Research of Manufacturers’ Representatives EducationalResearch Foundation. He can be reached through his Web site, www.cohon.com.


S o u th A tlan tic O ce an S o u th P ac if ic O cean


N o rth A tlan tic O ce an

In d ia n O c ean

A rc tic O ce an A rc tic O ce an A rc tic O ce an


U n ited S ta te s o f A m erica

U .S .A .

C an a d a

M e x ic o

B raz il

U . S . A .

F re n c h P o ly n e s ia (F r.)

A rg e n tin a U ru g u a y

P a ra g u a y

C h ile

B o liv ia

P e ru

E c u a d o r

C o lo m b ia

Ve n e z u e la F re n c h G u ia n a (F r.)

S u rin a m e G u y a n a

T h e B a h am a s

C u b a D o m in ica n R e p u b lic

P a n a m a C o s ta R ic a

N ica ra g u a

H o n d u ra s G u ate m a la

E l S a lv a d o r

T rin id a d a n d To b ag o

Ja m . H a iti P u e rto R ic o (U S )

G re e n la n d (D e n .)

Ic e la n d

M a d a g a sc a r

S o u th A fr ic a L e so th o

S w a z ila n d

M o z a m b iq u e

Ta n z a n ia

B o tsw a n a N a m ib ia Z im b a b w e

A n g o la

Z a ire

Z a m b ia

M a la w i

B u ru n d i

K e n y a R w a n d a

U g a n d a

C o n g o

G a b o n

S o m a lia

E th io p ia

S u d a n

D jib o u ti

B e liz e

E g y p t L ib y a

C h a d

N ig e r

A lg e ria

M a li

T u n is ia

N ig e r ia

C a m e ro o n C . A . R .

B e n in

To g o G h an a

B u rk in a F a so B a rb a d o s

D o m in ica

C ô te D ’Iv o ire

L ib e ria

S ie rra L e o n e

G u in e a G u in e a -B issa u

S e n e g a l T h e G a m b ia

M a u rita n ia

W es te rn S ah a ra (M o r.)

M o ro c c o

F in la n d

N o rw a y

S w e d e n E sto n ia L a tv ia

L ith u a n ia

P o lan d

R o m a n ia

B u lg a r ia

T u rk e y G re e c e

C z ec h .

H u n g .

I ta ly A lb a n ia

P o rtu g a l

F ra n c e

S p a in

A u s. S w itz .

U n ite d K in g d o m

Ire la n d

D e n .

G e rm an y N e th .

B e l.

C y p .

Ye m e n

O m a n S a u d i A ra b ia U . A . E .

Q a ta r

I ra n I ra q

S y ria

Jo rd a n

Isra e l L e b . C h in a

M o n g o lia

R u ss ia

A fg h a n is ta n

P a k is ta n

In d ia

S ri L an k a M a ld iv e s

N e p a l B h u .

M y a n m a r (B u rm a ) B a n g .

A n d a m a n Is la n d s (In d ia )

T h ai la n d

In d o n e s ia

M a la y s ia

B ru n e i

P h ilip p in e s

Ta iw a n

C a m b o d ia

V ie tn a m

L a o s

A u stra lia

P a p u a N ew G u in e a

N e w Z e a la n d

F ij i

N e w C a led o n ia

S o lo m o n Is la n d s

K ir ib a ti

M a rs h a ll Is lan d s F e d e ra te d S ta te s o f M ic ro n es ia

G u am (U S A )

Ja p a n

N . K o re a

S . K o rea

K u ri l Is la n d s

W ra n g e l Is la n d

A leu tian Is lan d s (U S A )

N e w S ib e r ia n Is la n d s

S e v e rn a y a Z e m ly a

N o v a y a Z e m ly a

F ra n z Jo se f L a n d S v a lb a rd (N o r.)

Ja n M a y en (N o r.) B a n k s Is lan d

Vic to r ia Is la n d B a ffin Is la n d

E lle sm e re Is la n d

Is lan d o f N e w fo u n d lan d

A n ta rc tic a

Î le s C ro ze t (F ra n ce )

Tasm an ia

S o u th G e o rg ia (a d m . b y U K , c la im e d b y A rg e n tin a )

F a lk la n d Is la n d s (Is la s M a lv in a s) (a d m . b y U K , c la im e d b y A rg e n tin a )

K u w a it C a n a ry Is la n d s (S p .)

S a o To m e & P rin c ip e

S in g a p o re E q . G u in e a

F a ro e Is . (D en .)

K a z a k h s ta n

B e la ru s

U k ra in e

M o ld o v a

G e o rg ia A rm e n ia A z e rb a ija n

T u rk m e n is ta n

U z b e k is ta n K y rg y z sta n

Yu g o .

M a c .

S lo v. C ro .

B o s .

S lo v a k .

E ri tre a

Ta jik is ta n

H aw a iian Is lan d s

G a la p ag o s Is la n d s (E cu a d o r)

M a u rit iu s

S e y c h e lle s

6 0 °

Global Sales Management:Going Global to Achieve Growth

Empire Technical Group’s customers moved mfg and purchasing to Asia

ETG and several other companies formed a consortium and included Asian partners where Asia/Pacific resources were required

Became opportunity to pursue contracts to build entire assemblies as well as just parts

Morphed into international design and assembly house, controlling manufacturing of complete assemblies, turning “a $3 (part) sale to a $103 sale”

Source: Charles Cohon, Vice President of Research of Manufacturers’ Representatives EducationalResearch Foundation. He can be reached through his Web site, www.cohon.com.


What Level of Investment Will Be Required, and How Will We Allocate the Needed Resources?

Money, human or social capital

Human capital decisions include: Determining number of salespeople What skills and experience they must have What training they require

Other decisions include: Whether to hire telephone prospectors or to outsource Who handles customer service (a sales rep or a

customer service rep)


What Are the Detailed Objectives and Action Plans?

SMART format for establishing objectives

S pecific

Measurable

A chievable, yet challenging

Realistic

T ime-based


Self-Assessment Library

Go to http://www.prenhall.com/sal/ Access code came with your book

Click the following Assessments

I. What About MeC. Motivation Insights

5. What Are My Course Performance Goals?


Selling Approaches

Problem Solvingor Consultative

Identify and solve a client’s problems Also called needs-satisfaction selling or

problem/solution selling

Affiliative Based on the friendship between the salesperson

and the individual buyer

Transactional

Finish sale as quickly and as easily as possible Key to success is making as many calls as

possible to as many people as possible

Enterprise

Business-to-business (B2B) concept Based on not only person-to-person relationships

but on company-to-company relationships


The Selling Approach: 8 Steps


Prospecting

Prospecting involves identifying potential customers for a particular product or service

A prospect is a MAD buyer the Money to spend the Authority to buy the Desire to buy it


Pre-Approach

During Pre-Approach, the salesperson tries to learn everything he can about the account

Can take a significant amount of time


Approach

Approach: salesperson asks buyer to commit to a meeting

Opening statement must get buyer’s attention


Needs Identification

Needs identification: salesperson confirms prospect is MAD (Money, Authority, Desire)

Comprised of 3 elements

Questioning1

Identification2

Pre-commitment3


Presentation

Presentation: salesperson describes product and how it meets buyer’s needs

Feature Evidence

Benefit Agreement


Handling Objections

Objections: reasons a buyer offers to not buy your product

Can occur at any time

Salesperson should find out root of concern and resolve it


Closing the Sale

Close: when salesperson asks buyer for the sale

Good close Reinforce decision to buy Confirm implementation schedule Thank the buyer Ask for referral


Implementation/Follow-Up

Follow-Up: After delivery, ensure that the customer has good experience with product

Training, service, policies and procedures


Selling Process vs. Selling Approach

Selling ProcessSelling Approach

Prospecting

PresentingClosing

Transactional

Consultative

Affiliative

Enterprise


Sales Leaders


Sales Executive

Plan Devise sales plan to meet strategic objectives Develop general strategies that specify sales

approach

Organize Determine type of sales force Create hiring and training policies and strategies

Implement Communicate and roll out the plan Create the right culture Choose a compensation model

Monitor Sales and customer satisfaction Salesperson recruitment, selection, training Take corrective action as necessary


Field Sales Manager

Plans, organizes, implements, and monitors for specific sales team

Salespeople report to Field Sales Manager

Primary responsibility is sales quota

Responsible for training and motivating salespeople


Sales Executive vs. Sales Manager Duties

Activity Sales Executive Sales Manager

Plan Set overall sales targets for each product

Set quotas for each salesperson for each product

Organize Decide what type of people to hire for sales positions

Interview and hire specific people for sales positions

Implement Determine the compensation plan

Identify each person’s motivators and find ways to reward good performance for each person

MonitorTrack sales by region; take corrective action such as additional training if sales are too low

Observe each salesperson’s actions in the field and offer suggestions for their improvement


Ethics in Sales Management:Maintaining NCR’s Ethical Sales Culture

We … recognize that selling only works when everything is right for the customer—when we deliver value

—Rick MakosPresident, NCR-Canada


Role Play: T&G Supply

Opportunity 1: T&G Supply Provides maintenance, repair, and operations items to

manufacturers Janitorial products, hardware products to fix machines,

and other common maintenance products

Opportunity 2: Columbia Leasing Car rental and leasing company Your job is to sell corporate contracts


Role Play (continued): Action Steps

Break into pairs

Each person picks 1 company to play sales mgr

Think about issues that reflect a service-dominant logic in each situation

Using other concepts discussed in the chapter, identify three characteristics that you would want each new salesperson to have

Take turns interviewing your partner for a sales position


Caselet 1.1: Killebrew Manufacturing

Makes plastic patio products

Widow Francine took over company

Annual growth rate ~5% for past 20 years

Trying to grow company 10% introductory discount Makes prices same as biggest competitor Killebrew quality is much better Problem: Few new accounts are reordering Are salespeople too quick to sell price, not quality?


Caselet 1.1 (continued): What Would You Do?

Quality must be demonstrated and sold

What sales process or approach should Francine consider?


Caselet 1.2: Morton’s Ice House

Grill and microbrewery

Owner Sherry Morton hired Trey Denton to sell franchises

Trey sold 12 franchises in 1 year

Corporate goal is to sell 200 franchises in next 2 yrs

Hired 5 salespeople for Trey to manage


Caselet 1.2 (continued): What Would You Do?

Problems Salespeople calling on same prospects Other prospects not being called on Sold only 22 franchises in 6 months 2 salespeople quit 10 franchises want out of contracts

What should Sherry do?

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Part One: Strategic Planning Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall....

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Transcript of Part One: Strategic Planning Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall....