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Selling StrategyInterface between Place and
Promotion
Module Two
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Session Objectives
Strategic sales management
The External Environment
The Internal EnvironmentOrganisational Strategy Levels
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SALES INTERFACE
SALES FORCE
EXTERNAL
ENVIRONMENT
Economic
Social Cultural
Technological
Competitive
Legal Political
Natural
CUSTOMERS
CORPORATE AND
MARKETING STRATEGY
DISTRIBUTION
CHANNELS
INTERNALENVIRONMENT
Goals/Objectives/Cultures
Personnel
Financial Resources
Production and
Supply Chain
Service Capabilities
R&D
ADVERTISINGAnd
PROMOTION
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Strategic Marketing Planning Company Objective
Increase market share from present 8% to 20%
Company Strategy
Intensify marketing efforts in domestic markets
Marketing Objective
Increase sales revenue by Rs. 30 crores next
year
Marketing Strategy
Enter South and EastCover existing markets more aggressively
Strategy for one level becomes objective for next
level
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External Environment
Economic Conditions
Buyer-seller interactions take place
within the context of currenteconomic conditions
The economy impacts real potential
demand
Global economic conditions are
important
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External Environment
Social and Cultural
Population characteristics
Unequal rate of growth
Increase in average age
Changing geographic distribution
Increased education attainment
Increased number of working women
The nucleus family
Lower loyalties
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External Environment
Technological Factors
Transportation
The 2 wheeler and 4 wheeler boom
The high cost of travel
The traffic jams Communications
Telephones
Internet
Voice mail
SMS
Computers
Database for prospect
Order processing
MIS and reports
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External Environment
Competitive Factors
Need to know
Who is the competitorLowering trade barriers
Monopoly to Oligopoly to
Perfect competition
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External Environment
Legal and Political
Towards a free economy
MRTP (Competition Bill)
Packaging and Commodities Act
Excise and Customs
Sales Tax
VAT
Buyer Protection
Consumer Courts
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External Environment
Natural Environment
Nature influences demand for productsWeather
Natural disastersAvailability of raw materials
Energy resources
Demarketing may result from shortages
caused by natureGrowing social concern about the
possible negative impact of product andproduction have important implications
for marketing and sales programs
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Internal Environment
Goals/Objectives/Culture
Mission and objectives drive customer
management approachesA well-defined mission + successful
corporate history + top management
values = strong corporate culture
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Internal Environment
Personnel
Modern sales organizations are highly
complex and dynamicOften difficult to expand to take advantage
of growing markets
Utilizing outside specialists can help firmsmeet need to expand
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Financial Resources
Lack of financial resources can:
constrain ability to develop new products
limit promotional budgetlimit size of sales force
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Production and Supply Chain Capabilities
Production capacity
Location of production facilities
Transportation costsAbility to ensure seamless distribution and
service after the sale
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Service Capabilities
Opportunity for strong competitive
advantage
Difficult for other firms to compete forsame customers
Customers reluctant to switch regardless
of price
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R&D and Technological Capabilities
Excellence in design and engineering
provide major promotional appeal
Ability to communicate technologicalsophistication as value-add helps prevent
over-reliance on price to get sales
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BuyingBuying
SituationSituation
BuyingBuying
CenterCenter
OrganizationalOrganizational
Buyer BehaviorBuyer BehaviorAccountAccount
BuyingBuyingProcessProcess
BuyingBuying
NeedsNeeds
AccountAccountTargetingTargetingStrategyStrategy
RelationshipRelationship
StrategyStrategy
SalespersonSalespersonSalesSales
StrategyStrategy
Sales ChannelSales Channel
StrategyStrategy
SellingSelling
StrategyStrategy
The Sales Strategy Framework
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CorporateCorporate
StrategyStrategy
Corporate MissionCorporate MissionSBU DefinitionSBU Definition
SBU ObjectivesSBU Objectives
CorporateCorporate
ManagementManagement
SalesSales
StrategyStrategy
Strategy TypesStrategy Types
Strategy ExecutionStrategy Execution
SBUSBU
ManagementManagement
StrategyStrategy
LevelLevel
KeyKey
Decision AreasDecision Areas
KeyKey
Decision MakersDecision Makers
Organizational Strategy Levels
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StrategyStrategy
LevelLevel
KeyKey
Decision AreasDecision Areas
KeyKey
Decision MakersDecision Makers
MarketingMarketing
StrategyStrategy
CorporateCorporate
ManagementManagement
Target Market SelectionTarget Market Selection
Marketing Mix Dev.Marketing Mix Dev.
Integrated Mkt Comm.Integrated Mkt Comm.
BusinessBusinessStrategyStrategy
SBUSBUManagementManagement
Account Targeting StrategyAccount Targeting StrategySales Channel StrategySales Channel Strategy
Relationship StrategyRelationship Strategy
Organizational Strategy Levels
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Definition of
Strategic Business Units (SBUs)
Cravens (1991)Cravens (1991)
An SBU is a single product or brand, a line ofAn SBU is a single product or brand, a line of
products, or a mix of related products thatproducts, or a mix of related products that
meets a common market need or a group ofmeets a common market need or a group of
related needs, and the unit's management isrelated needs, and the unit's management is
responsible for all (or most) of the basicresponsible for all (or most) of the basic
business functions."business functions."
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Salary plus
incentive
Prospective and
new accounts
Provide high
service levels
particularly pre-
sales serviceProduct/market
feedback
Build sales vol.
Secure
distribution
Build
SBU Objectives and
the Sales Organization
Compensation
System
Primary
Sales Tasks
Sales
Organization
Objectives
Market
Share
Objectives
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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 segmentsSecure additional
outlets
Hold
SBU Objectives and
the Sales Organization
Compensation
System
Primary
Sales Tasks
Sales
Organization
Objectives
Market
Share
Objectives
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Salary plus
bonus
Service most
profitable accounts
eliminate
unprofitable
accounts
Reduce servicelevels
Reduce inventories
levels
Reduce selling
costs
Target profitable
accounts
Harvest
SBU Objectives and
the Sales Organization
Compensation
System
Primary
Sales Tasks
Sales
Organization
Objectives
Market
Share
Objectives
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SalaryDump inventory
Eliminate service
Minimize sellingcosts and clear
out inventory
Divest orLiquidate
SBU Objectives and
the Sales Organization
Compensation
System
Primary
Sales Tasks
Sales
Organization
Objectives
Market
Share
Objectives
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Business Strategy and
the Sales Function
Low-cost supplier Pursue large customersPursue large customers
Minimize costMinimize cost
Compete on priceCompete on price
Seek customers who areSeek customers who are
low price shopperslow price shoppers
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Business Strategy and
the Sales Function
Low-cost supplier
Differentiation
Compete on nonCompete on non--priceprice
benefitsbenefits
Provide high qualityProvide high quality
customer servicecustomer service
Seek customers who areSeek customers who are
not low price shoppersnot low price shoppers
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Business Strategy and
the Sales Function
Low-cost supplier
Differentiation
Niche
Serve a distinct targetServe a distinct target
market not served well bymarket not served well byothersothers
Provide high qualityProvide high quality
customer servicecustomer service
Seek customers who areSeek customers who are
not low price shoppersnot low price shoppers
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Marketing Strategy and
the Sales Function
Advantages
+ Only promotional tool that consists ofpersonal communication between seller and
buyer
+ More credible and has more impact+ Better timing of message delivery+ Ability to tailor message to buyer
+ Allows for sale to be closedDisadvantage
High cost per contact
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Personal Selling-Driven vs. Advertising-Driven
Marketing Communications Strategies
AdvertisingAdvertising
Personal SellingPersonal Selling
When Message Flexibility is ImportantWhen Message Flexibility is Important
When Message Timing is ImportantWhen Message Timing is Important
When Reaction Speed is ImportantWhen Reaction Speed is ImportantWhen Message Credibility is ImportantWhen Message Credibility is Important
When Trying to Close the SaleWhen Trying to Close the Sale
When Low Cost per Contact is ImportantWhen Low Cost per Contact is Important
When Repetitive Contact is ImportantWhen Repetitive Contact is ImportantWhen Control of Message is ImportantWhen Control of Message is Important
When Audience is LargeWhen Audience is Large
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Target Market Situations and
Personal Selling
Target Market:A definition of the specific market segment to be served
Personal Selling-Driven Promotional Strategiesare appropriate when:The market consists of only a few buyers that tend to
be concentrated in location
The buyer needs a great deal of informationThe purchase is important
The product is complex
Service after the sale is important
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Classification of
Personal Selling Approaches
Stimulus Response
Mental States
Need Satisfaction
Problem Solving
Consultative Selling
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Stimulus Response Selling
SalespersonSalesperson
ProvidesProvides
StimuliStimuli
BuyerBuyer
ResponsesResponses
SoughtSought
ContinueContinue
Process untilProcess until
PurchasePurchase
DecisionDecision
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Mental States Selling
AttentionAttention InterestInterest ConvictionConviction DesireDesire ActionAction
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Need Satisfaction Selling
Uncover andUncover and
Confirm BuyerConfirm Buyer
NeedsNeeds
PresentPresent
Offering toOffering to
Satisfy BuyerSatisfy Buyer
NeedsNeeds
ContinueContinue
Selling untilSelling until
PurchasePurchase
DecisionDecision
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Problem Solving Selling
DefineDefine
ProblemProblem
GenerateGenerateAlternativeAlternative
SolutionsSolutions
ContinueContinue
SellingSellinguntiluntil
PurchasePurchase
DecisionDecision
EvaluateEvaluateAlternativeAlternative
SolutionsSolutions
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Long-term Ally
Consultative Selling
Strategic Orchestrator
Business Consultant
The process of helpingThe process of helping
customers reach theircustomers reach theirstrategic goals by usingstrategic goals by using
the products, service,the products, service,
and expertise of theand expertise of the
selling organization.selling organization.
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The Sales Process:
Selling Strategy
In order to be successful in todays global businessIn order to be successful in todays global business
environment, salespeople must also think and actenvironment, salespeople must also think and act
strategically. The must develop strategies for:strategically. The must develop strategies for:
Their Sales TerritoryTheir Sales Territory
Each Sales CallEach Sales Call
Each CustomerEach Customer
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The Sales Process: An
Overview
Salesperson
Attributes
DevelopingDeveloping
CustomerCustomer
RelationshipsRelationships
InitiatingInitiating
CustomerCustomer
RelationshipsRelationships
EnhancingEnhancing
CustomerCustomer
RelationshipsRelationships
SellingSelling
FoundationsFoundations
SellingSelling
StrategyStrategy
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SELLING
MODEL
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INTERRELATIONSHIP OF BASIC
STRATEGIES
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A SELLING PARTNER
Prepares strategically
Asks questions
Restates customer needsTeams with support people
Negotiates win-win
Exceeds customer expectations
Re-examines relationship
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