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STRATEGI PEMASARAN

    Arriffin Mansor




                      1
Value Creation Model:

                              Value Creation/
                               Destruction

         Operating Income          - (      Total Assets        x        WACC          )
Gross Profit   -        Cost
                      Structure
                                      Current
                                      Assets        +     Fixed Assets   +   Long Term
                                                                              Liabilities


Revenues   -       Cost of
                   Goods
                                  Working
                                  Capital       +     Other Assets
                                                      & Liabilities

                                             Inventory
                                                  +
                                                Debtors
                                                  -
                                             Creditors
 2
Value Creation/
                              Destruction

       Operating Income          - (            Total
                                               Assets        x       WACC          )
Gross Profit   -       Cost
                     Structure
                                     Current
                                     Assets        +      Fixed
                                                          Assets     +   Long Term
                                                                          Liabilities


Revenues       -   Cost of
                   Goods
                                 Working
                                 Capital       +     Other Assets
                                                     & Liabilities

                                           Inventory
                                                 +
                                               Debtors
                                                 -
                                           Creditors
3
THE STRATEGIC GAPS
• HOW MUCH GROWTH IS LEFT IN MY CURRENT
  MARKETS? CUSTOMERS?
• WHERE WILL MY FUTURE GROWTH COME FROM?
• HOW WILL I CAPTURE MARKET SHARE?
• WHAT ARE THE COMPONENTS OF MY
  DIFFERENTIATION STRATEGY?
• WHERE DO I GENERATE PROFITS? WHERE COULD I
  GENERATE PROFITS?



4
P   Which segments /
        customers will we
                                  CUSTOMER
                                   TARGETS
    O   concentrate on ?


    S
    I
    T   Whom will we              COMPETITOR
    I   challenge for these
        customers?
                                   TARGETS

    O
    N
    I
    N   What incentives will we
        provide to get them to
                                    CORE
                                  STRATEGY
    G   buy from us… rather
        than from competitors?

5
THE ACCOUNT PORTFOLIO

                                   Strong                             Weak
                            High
                                                            Selectively
                                    Invest / Grow             Invest
                ACCOUNT
             ATTRACTIVENESS                                Manage for
                                        Maintain             Cash /
• Size                                                     Withdraw
• Growth                    Low
• Profitability                          BUSINESS STRENGTHS
• Location
• Purchasing criteria and
  processes                         •   Product range
• Current suppliers                 •   Product efficacy
• Status of customer                •   Service quality
  (prestige)                        •   Price
                                    •   Technical services
                                    •   Reputation/image
                                    •   Past experience
                                    •   Quality of sales staff
                                    •   Quality of relationships

    6
ACCOUNT PORTFOLIO ANALYSIS
              Strong                       Strength of Position                               Weak

      High                     KEY                                      TARGET
              Attractiveness:                             Attractiveness:
                Accounts are very attractive since they     Accounts are potentially attractive
                offer high opportunity and sales            since they offer high opportunity, but
                organization has strong position.           sales organization currently has weak
                                                            position with accounts.

              Sales call strategy:                        Sales call strategy:
                Accounts should receive a high level of     Selected accounts should receive a
                sales calls since they are the sales        high level of sales calls to strengthen
                organization’s most attractive              the sales organizations position.
                accounts.

 Account
Opportunity            MAINTENANCE                                  WHY BOTHER
              Attractiveness:                             Attractiveness:
                Accounts are somewhat attractive since      Accounts are very unattractive since
                sales organization has strong               they offer low opportunity and sales
                position, but future opportunity is         organization has weak position.
                limited.
                                                          Sales call strategy:
              Sales call strategy:                          Accounts should receive no field sales
                Accounts should receive a moderate          calls and a minimum of inside sales
                level of sales calls to maintain the        resources.
                current strength of the sales
                organization’s position. And, efforts
       Low      should be made to replace field sales
                calls with telephone sales.
7
ACCOUNT SEGMENTATION AND PRIORITIZATION

    High                           KEY ACCOUNTS                  TARGET ACCOUNTS
                                                              (Your competition’s Key Accounts)

                              • 10-20% of your account base   • Gets very little attention
    ACCOUNT ATTRACTIVENESS




                              • 80% of your GP$

                              • Receives less than 50% of
                                your resources



                             MAINTENANCE ACCOUNTS             WHY BOTHER? ACCOUNTS
                              • 40-45% of your account base   • 30-40% of your account base
                                                              • Less than 5% of your GP$
                              • 10-15% of your GP$
                                                              • Receives 20-30% of your
                              • Receives 30-40% of your         resources
                                resources
                                                              • Creates 90% of your
    Low                                                         ―headaches‖

8                            Strong        YOUR STRENGTH OF POSITION                     Weak
10 LANGKAH RANCANGAN PEMASARAN




                                 9
3 ways of doing business – M. Porter


             Mass          Product
          production   Differentiation
          and cheap    and premium
            pricing         pricing
            strategi       strategy


                Niche
               Marketing


                                         10
5 Langkah Rancangan Pemasaran`




                                 11
Matlamat Perniagaan



PTJ                Pusingan Aset   Gandaan Ekuiti


      • PTJ            • PTA           • PTE




                                                    12
CORPORATE PERFORMANCE

                  ROS
        ROA
                  ATO
ROE
                ASSETS
         EM
                EQUITY
                         13
PEMASARAN


                                                         Rancangan
                                             Rancangan   Pemasaran
                                             Jualan
                        Strategi Pemasaran

           Rancangan
           Keuntungan

Matlamat Pemasaran




                                                                14
5 Langkah Rancangan Pemasaran`
1
    • Titik pulang kos
1   • Matlamat Pemasaran

    • Modal kerja dan Modal Tetap
2   • Strategi Perniagaan

    • Segmentasi ,Sasaran dan profile pelanggan
3   • Saiz dan nilai pasaran

    • Strategi 4 P
4   • Positioning atau perletakan

    • Strategi Pemasaran melaui BSC perspektif
5   • Metrik Pemasaran


    • Belanjawan Pemasaran
6



                                                  15
STRATEGI PEMASARAN
          • Margin premium atau murah
 Harga    • Kuantiti banyak x margin kecil


Produk    •Kualiti atau biasa
          •Faedah produk diterang dgn jelas

          • Media dan saluran yang sesuai
Promosi   • Mesej yang sesuai

          • kesesuaian
Saluran   • Kos saluran

                                              16
Cash




CREDITORS
            Working    Stock
            capital



             debtors




                               17
Kehendak Manusia

       SELF ACTUALISATION

                EGO

              SOCIETY

             SECURITY

               BASIC



                            18
Interaksi Pemasaran


       Pelanggan




Organisasi     Produk



                        19
Penetapan Harga




                  20
PEMASARAN STRATEGIK

1.   Senario Ekonomi Malaysia
2.   Campuran Pemasaran
3.   Analisis Pemasaran (SWOT & Audit)
4.   Kajian Kes
5.   Penyediaan Pelan Pemasaran Strategik
6.   Pembentangan




                                            21
PEMASARAN STRATEGIK

Senario Ekonomi Malaysia
• Perniagaan ialah 1 unit drpd satu sistem ekonomi
• Perubahan dalam sistem yg besar beri kesan kpd
  unit-unit sekeliling
• Kepekaan kpd senario ekonomi semasa beri
  kemampuan untuk bertindak ikut rentak sealiran dgn
  ekonomi




                                                   22
PEMASARAN STRATEGIK

Petunjuk-petunjuk utama ekonomi (key economic
    indicators):
1. KNK (GDP)
2. Indeks Komposit BSKL
3. Belanjawan Negara
4. Polisi Fiskal
5. Polisi Kewangan



                                                23
PEMASARAN STRATEGIK

Senario Ekonomi Malaysia
1. Kepentingan Usahawan
2. Dunia Tanpa Sempadan
3. K-Ekonomi
4. Islam
5. AFTA




                                24
PEMASARAN STRATEGIK

Apa itu Pemasaran Strategik?
• Suatu usaha untuk mempertahankan keuntungan
  dan kelebihan kompetitif melalui satu Strategi
  Pemasaran yang komprehensif dan terkini
• 3 elemen pokok dlm Pemasaran Strategik ialah S.T.P
  (segmentation, targeting, & positioning)




                                                       25
Sales Force Management
        Fall 1999




                         26
Product Life Cycle Impact: The Value Added Wall for
                        HPBA Companies


                Value Added
Sales             Services               Price



             Product
                              Profits




 27                    Time
Profit Margin Management
                                                 Sales


                               Gross Margin



                  Net Profit

     Net Profit
      Margin



                  ÷
                                                 Cost of
                                               Goods Sold

                      Sales           Total
                                    Expenses




28
Managing Assets: Inventory and
        Accts Rec. are the keys
                                                    Inventory




                      Sales
       Asset                                        Accounts
      Turnover                  Current Assets     Receivable



                  ÷


                 Total Assets




                                     Fixed       Other Current
                                     Assets         Assets

29
Calculating Return on Assets
                                                                    Sales
                                              Gross Margin

                                 Net Profit

                  Net Profit
                   Margin




                                 ÷

                                                                   Cost Of
                                                                 Goods Sold
      Return on
       Assets
                                Sales         Total Expenses

                      x
                                                                  Inventory

       Net
     Profit/                         Sales
      Total
     Assets          Asset
                    Turnover
                                              Current Assets
                                                                 Accts Rec.


                                ÷




                               Total Assets



                                                   Fixed       Other Current
                                                   Assets         Assets


30
Sales management - Outline
• Role of the sales force in corporate strategy
• Trends in personal selling and sales
  management
• Functions of the salesperson and sales
  manager
• Course overview



                                                  31
Strategic Leverage of the Sales Force
• Customer focus
• Enhances customer loyalty
• Source of competitive advantage




                                         32
Enhances Customer Focus
• Allows a targeted market segment approach
  – one customer at a time
  – customize sales calls and presentations by needs
  – important source of market knowledge and
    customer needs assessment




                                                       33
Develops Customer Loyalty
• Creates high switching costs
  – salesperson (knowledge, expertise, relationship)
    creates product/service
    differentiation, particularly when competitors’
    products deliver the same basic benefits
• Loyalty reduces the customers’ price
  sensitivity



                                                       34
Source of Competitive Advantage
• Creates a barrier to entry
  – costs of creating a sales force
  – market access
• Creates a medium-to-long term competitive
  advantage
  – unlike advertising (medium-term) or pricing
    (short-term)



                                                  35
Trends in Personal Selling
• Nature of the sales job:
  – Informed consultant:
     • knowledge of customers, industries and applications
  – Process (rather than event) driven
  – Team player
  – Customer advocate/Market feedback
  – Integration of promotional mechanisms (e.g. DTC)



                                                             36
Trends in Personal Selling
• Nature of the sales manager’s job:
  – Decentralized management; greater span of
    control
  – Automation
  – Database targeting/customer data
  – Evaluated on team performance (rather than
    individual performance)
  – Reward in many ways (not just $$)


                                                 37
Importance of Effective Sales
             Management
• Expensive part of marketing strategy
• Cost of call:
  – Overall average: $157
  – ($239 for a value-added selling environment)




                                                   38
Sales and Marketing Management




39
Drivers Of/Barriers to Change




     What’s driving you to            What’s stopping you
                                      from making these
     make these changes?                  changes?




40
DIFFERENTIATING CUSTOMER SEGMENTS

                                           Customer Segment
ELEMENT OF
STRATEGY              KEY / TARGET          MAINTENANCE          WHY BOTHER
• Order Processing    Top priority.        Secondary priority.   Lowest priority.
• Technical Support   Top priority         Secondary priority.   Not available.
• Training            Yes.                 Yes. Hourly fee.      Not available.
• Fill Rates          X%                   Y%                    100%. No backorders
                                                                 ship complete.
• Returns             Yes. No restocking   Yes, restocking fee   Only if over $Y,
                      fee.                 of $X.                restocking fee of $X.
• On-time             Stock items same     Stock items same      Stock items shipped
  Shipment            day if order place   day if order placed   within 48 hours.
                      by 4:00 p.m.         before 1:00 p.m.
• Product Mix         Stock & non-stock    Stock and non stock   Stock, in stock only.
                      from stock & non-    from stocking
                      stock suppliers.     suppliers only.

• Non-stock           Yes.                 Yes, from stocking    No non-stocks.
  Sourcing                                 suppliers only.
• Minimum Order       No minimum.          No min. on stock      $200.
  Size
   41                                      items; $200 minimum
                                           on non-stock items.
Perspectives on the Sales Management Function


              Traditional View               New View

                                    Manager of Scarce
     Do-er
                                    Resources

     Responsible for Volume         Profit Planning

                                    Long Term and Short
     Short Run
                                    Term

                                    Customer Types and
     Individual Customers
                                    Segment Differences

     Field Work Rather              Systems for Market
     Than Desk Work                 Analysis, Planning
                                    and Control

     Driver                         Leader

     Developer of Sales             Developer of People
42
Changing Business
          Environment                     The
Leads to                                 Selling
           Changing Selling
                                        Ballgame
             Environment


Resulting in
                                       Better Understanding of
                                        Customer’s Needs
       Harder to Get and Hold
       Customers and It Costs          Better Selectivity
               More!
                                       Better Selling Strategies

                                       Better Time & Territory
                     Implications       Management
 43
THE INTEGRATED MODEL
                          Sales Force Drivers




     People and Culture                         Sales Force Activity




                                                Customer Results




                                                Company Results

44
PURPOSE OF A BUSINESS
•    Purpose of a business is to create a customer.
•    Profit is only a test of management decision making.
•    Profit is required to maintain the customer.
•    A business only has two primary functions, sales and
     innovation, everything else is just cost.

                        INNOVATION MARKETING
                    The world according to Peter Drucker




45
THE LOGIC
                            Clarifying and Translating
                            the Focus and Strategy
                              Clarifying the focus
                              Gaining consensus



Communicating and                                        Strategic Feedback and
Linking                                                  Learning
   Communicating and                                    Clarifying the Focus
                                                           Articulating the focus and
    educating
   Setting goals          BALANCED SALES TEAM                strategy
                                                           Facilitating strategy
   Linking rewards to                                        review and learning
    performance measures
                            Planning and
                            Target Setting
                              Setting targets
                              Aligning strategic
                                initiatives
                              Allocating resources
                              Establishing
                                milestones

 46
STRATEGY DEVELOPMENT
                                            Strategic Value Customers
              Extrinsic Value Customers       (leveraging supplier’s
            (buying beyond product value)   enterprise competencies)



                                                        Create
                   Create new                       extraordinary
                  value through                    value for a few
 INCREASE          sales efforts                      very large
 BENEFITS                                            customers




 REDUCE
                                   Lessen cost
  COST
                                   and effort of
                                   acquisition



                             Intrinsic Value Customers
47                        (buying on product value alone)
Functions of the Salesperson
• Prospecting
• Communicating: two-way
• Allocating & coordinating: company
  resources, time
• Servicing
• Helping define marketing strategy



                                       48
Functions of the Sales Manager
• Communicate expectations: tell salespeople
  what you expect them to do
• Make the work doable: an important
  component o the SM role here is removing
  obstacles to performance
• Evaluate and give feedback: reward successful
  behavior, apply corrective actions for behavior
  that is not acceptable

                                                49
Course Overview
•   Effective Personal Selling
•   Strategic Issues
•   Tactical Issues
•   Industrial Settings
    – informed buyers
    – discipline of repeat purchase
    – often genuine differentiation is possible


                                                  50
PEMASARAN STRATEGIK

Petunjuk-petunjuk utama ekonomi (key economic
    indicators):
1. KNK (GDP)
2. Indeks Komposit BSKL
3. Belanjawan Negara
4. Polisi Fiskal
5. Polisi Kewangan



                                                51
Pyramid Metrics




                  52
Course Overview (continued)
• Effective Personal Selling
  – What is effective personal selling?
  – Business to business selling and the Buyclass
    Framework (Case: Lawford Electric)




                                                    53
Course Overview (continued)
• Strategic Issues
  – Vertical Integration (Case: Jamestown)
  – Control Systems
  – Structuring the Sales Force(Cases: Wright Line &
    Siebel Systems
  – Sales Force Allocation: Deployment &
    Organization (Case: Syntex)
  – Territory Assignment & Design
  – Strategy for Optimal Sales Productivity
                                                       54
Course Overview (continued)
• Tactical Issues
  – Sales Analysis (Case: Milford A)
  – Performance Evaluation (Case: Milford B)
  – Compensation (Case:Mary Kay Cosmetics) &
    Motivation (Case: IMAGE)
  – Selection (Case: IDS) & Training
  – Information Systems/Sales Force Automation
    (Case: Profiling at National Mutual)
  – Sales Force Automation
                                                 55
Personal Selling

“Everybody lives by selling something.”
       Robert Louis Stevenson


Careers in Sales
   High demand but not a career for everybody,
   but, good experience early in any career…
   Negative perceptions
   $…$…$




                                                 56
Personal Selling 7 steps

Selling Process
   1.   Prospecting
   2.   Customer Profile
   3.   Approaching
   4.   Presenting/Demonstration
   5.   Handling Objections and Questions
   6.   Closing
   7.   Follow-up


                                             57
Personal Selling

Sales force activities
    –   Cultivating new clients
    –   Communication
    –   Selling
    –   Servicing
    –   Information gathering
    –   Allocating scarce resources




                                              58
Personal Selling

Objectives
   Units or $ sold
   Market share by territory
   Target profit per sale
   Maximize sales per $ cost
   Maximize number of sales calls per period

   …but these mostly conflict…?




                                               59
Personal Selling

Salary versus Commission

   control…incentive

   security…fairness

   simplicity…flexibility




                                               60
Personal Selling

4 E’s
    1.   Energy for long hours
    2.   Enthusiasm for job, product
    3.   Empathy for customer
    4.   Ego, victory, desire to win




                                             61
Blowing in the Wind Video

Annoying Sales Promotion Works




                                 62
Cost-Volume-Profit Graph
                                                   Total Revenue
Revenue




                                     Profit           Total Cost


    Y

            Loss


                        X                     Unit sold
        X = Break-even point in units
        Y = Break-even point in revenue
                                                                   63
Profit-Volume Graph
Profit                                I = (P - V)X - F

                                   Slope = P - V




                                      Units
         Loss   Break-Even Point
                In Units
   -F




                                                         64
Example 3

The Rapid Meal has two restaurants that are open 24
hours per day. Fixed costs for the two restaurants
together total $450,000 per year. Service varies from a
cup of coffee to full meals. The average sales check for
each customer is $8.00. The average cost of food and
other variable costs for each customer is $3.20. The
income tax rate is 30%. Target net income is $105,000.




                                                           65
Example 3 Cont’d
Compute the total dollar sales needed to obtain the
target net income.



How many sales checks are needed to break even?


Compute net income if the number of sales checks
is 150,000


                                                      66
Multiple-Product Example
Assume the following:
                               Regular    Deluxe        Total     Percent
Units sold                         400        200         600         ----
Sales price per unit          $    500       $750          ----       ----
Sales                         $200,000   $150,000    $350,000     100.0%
Less: Variable expenses        120,000     60,000     180,000       51.4
Contribution margin           $ 80,000   $ 90,000    $170,000      48.6%
Less: Fixed expenses                                  130,000
Net income                                           $ 40,000
                                                    =======


1. What is the break even point?


2. How much sales revenue of each product must be generated to earn
a before tax profit $50,000?
                                                                             67
Pulangan terhadap ekuiti




                     Gandaan
          Pusingan   Ekuiti
 Pulangan Aset
 terhadap
 Jualan
                               68
Pulangan Prestasi Utama



                 PTE
        PTA
 PTJ
                          69
KEY PERFORMANCE INDICATORS



                                 A/E =
                      J/A =      GANDAAN
                      PUSINGAN   HUTANG
                      MODAL
U/J = UNTUNG BERSIH



                                           70
KEY PERFORMANCE INDICATORS



                                 A/E =
                      J/A =      GANDAAN
                      PUSINGAN   HUTANG
                      MODAL
U/J = UNTUNG BERSIH



                                           71
Maximising ROS strategies




                            72
Maximising ROA strategies




                            73
Maximising ROE strategies




                            74
Costs plus profit



Variable    Fixed
                       Profit   Price
 costs      costs




                                        75
Harga Pengilang




                  76
Harga Jual




             77
Kos Overhead Syarikat




                        78
Overhead Kilang




                  79
OVERHEAD JUALAN




                  80
Total Capital




                81
Financial Leverage:
     Assets         Liabilities




82
Harga Kilang




               83
Harga Produk




               84
Value Chain




              85
Strategy Map: Capture a Cause Effect
                        Relationship from the Bottom Up
 Stakeholder




                                              Improved                  More rapid and
                                             Returns on                  accessible
                                            Investments                   services
 Internal Process




                       Economic               Reduce Re-Activities            Establish Web
                      Model Process              thru ABC/M                 Based Self Services
& Growth
Learning




                           Expand Global                   Leadership                      Knowledge
                           Facility Reach                 Development                     Management
        Investments




                           Facilities and                                            IT
                                                       Human Capital
                           Fixed Assets                                        Infrastructure

                                                                                                       86
Managing Assets: Inventory and
        Accts Rec. are the keys
                                                    Inventory




                      Sales
       Asset                                        Accounts
      Turnover                  Current Assets     Receivable



                  ÷


                 Total Assets




                                     Fixed       Other Current
                                     Assets         Assets

87
Perspektif BSC




                 88
Perspektif BSC




                 89
Perspektif BSC

      Kewangan

    Pelanggan

  Proses Dalaman

Pekerja dan Kemahiran
                        90
KOS DAN HARGA




                91
Strategi Pemasaran
Perspektif     KPIs




                         92
Matlamat Pemasaran
       • untung
PTJ    • Jualan

       • Jualan
PTA    • Jumlah Aset

       • Aset
GE     • Ekuiti
                       93
Produk

         isi

         Intangible
         Jaminan

         Bungkusan




                      94
Kualiti Produk


            keselamatan

             economy




                          95
STRATEGI PEMASARAN
           PULANGAN
           TERHADAP         Kurangkan kos tingkatkan
            JUALAN          jualan




PULANGAN       PUSINGAN            Jualan tunai dan belian
TERHADAP             ASET          secara kredit
  EKUITI



           GANDAAN             Sewa jangan beli
            EKUITI             Jika beli dengan
                               pinjaman bank

                                                             96
Rancangan Pemasaran




                      97
PEMASARAN


                          Strategi

             Perletakan


Segmentasi



                                     98
Marketing Plan
 Marketing
                   Product           Place             Price        Promotion
 Objectives
                                                                    Have web
 Increase                                         Reduce Price of
                 New Product       Penang                             based
Market Share                                        product A
                                                                    promotion


 Gain New
                 Add benefits    Direct selling   Higher margin     networking
 Customers


   Market           Better      Existing klang    Reducing Price
                                                                      CRM
 Penetration      brochures     valle channel        by 3%


                                                                    Using web
Improve Sales                     Reduce
                Change packing                    Increase Price      based
   Margin                      marketing costs
                                                                    marketing
                                                                                 99
Strategi Pemasaran perspektif BSC
    • Tingkatkan                             • Tambah
      Pulangan                                 Pelanggan
    • Syer pasaran                           • Nilai Jualan


                     Matlamat    Kepuasan
                     Kewangan    Pelanggan



                     Pekerja &    Proses
                      Latihan    Dalaman
    • Kompetensi                             • Masa
    • Teknologi                                penyampaian
      baru                                   • Kos menurun


                                                              100
Rancangan Pemasaran
•   Analisis kos, volum dan untung.
•   Belian atau harga kilang
•   Tunai + penghutang + stok
•   Kos Penghantaran
•   Overhead Pemasaran




                                      101
14 Langkah Rancangan Pemasaran
    Analisis Kos                                   Strategi
                     Matlamat      Segmentasi
    volum dan                                    Pemasaran –
                    Pemasaran       Pelanggan
      untung                                         4ps




   Belanjawan
                    7 Langkah     Pengurusan     Perletakan
   Belian atau
                     menjual        Jualan        Produk
   harga kilang




     Ramalan                          Kos         Overhead
                    Modal Kerja
  Jualan Bualanan                 Penghantaran   Pemasaran




                                   Belanjawan      Metrik
                                   Pemasaran     Pemasaran



                                                               102
COMPTENCY DEVELOPMENT
                       Identified   Assessment     Areas of
       Role          competencies      result    improvement   Action plan




Dr. MG Jomon, XIMB
Current Sales Trend




                      104
Musical stairs




                 105
Soalan soalan jika ada




                         106
“Bottom Line”

               A business can no longer rely
                on the uniqueness of their
               products to retain customers
                or grow new sales revenue.




      Customers will align their business with strategic
       suppliers who understand their business and
        bring a unique offering which adds value by
      impacting their ―bottom line‖ through increased
              sales revenue or reduced costs


107
Inadequate Sales Performance
      Aware of what      No    How can goals and standards
      was expected                   be made clear?

                 Yes
      Aware of own       No     How can the salesperson
      performance                   be sensitized?

                 Yes
       Uncontrollable    Yes     How to avoid, eliminate,
      negative factors                 or ignore?

                 No
                         Yes
      Lack of ability                 How to train?

                 No
                         Yes
      Lack of want-to               How to motivate?
108
Evaluating Sales Performance


                               Data Analysis



  Information                  Observation
    Sources


                                 Interview


109
Possible Situations...
                           Fix the
  Causes of the problem
                          problem
       are fixable
                           (ROTI)



 Causes of the problem    Forget the
    are fixable, but        problem
    not work fixing            or
                           Terminate
 Causes of the problem    the person
    are not fixable
110
THE SALES REPRESENTATIVE THINKS…
1. What is expected of me?

       The Planning Process
       Priorities
       Programs
       Processes
       The Numbers



2. How am I doing?               3. How do I need to change?
      The Feedback Process         The Adjustment Process
       Metrics                      Corrective actions
       Performance Appraisals       Continuous Improvement
       Field coaching               KIP’s, PIP’s
       Meetings                      New planning for the
       Compensation                   future


111
QUOTES FROM PERFORMANCE APPRAISALS

•         ―This individual has talents but has kept them well hidden.‖
•         ―Combs his hair to one side and appears rustic.‖
•         ―A quiet, reticent, neat appearing individual—
          industrious, tenacious, diffident, careful, and neat. I do not wish to
          have this person as a member of my staff at any time.‖
•         "His leadership is outstanding except for his lack of ability to get along
          with his subordinates.‖
•         ―He hasn’t any mental traits.‖
•         ―He needs careful watching since he borders on the brilliant.‖
•         ―Believes sincerely in the power of prayer and it is astonishing to note
          how many times his prayers are answered.‖
•         ―He never makes the same mistake twice but it seems to me that he has
          made them all once.‖
•         ―Gives the appearance of being fat due to the tight clothes he wears.‖
    112
QUOTES FROM PERFORMANCE APPRAISALS–2


 •    ―Is keenly analytical and his highly developed mentality could best
      be used in the research and development field. He lacks common
      sense.‖
 •    ―An independent thinker with a mediocre mentality.‖
 •    ―Recently married and devotes more time to this activity than to his
      current assignment.‖
 •    ―Tends to create the impression of unpositive personality through
      needless and undiscerning gentility and soft spokenness.‖
 •    ―Of average intelligence except for lack of judgment on one
      occasion in attempting to capture a rattlesnake for which he was
      hospitalized.‖




113
The Key Challenge

                                              G.M.
            Sales Productivity         =
                                              C.O.S.

               Where:       G.M. =         Gross Margin Dollars
                           C.O.S. =        Cost of Sale in Dollars
      Implications
       1.   Less discounting.
       2.   Selling higher margin products.
       3.   Selling more product lines to each customer (cross-selling).
       4.   Being more selective and discriminating in qualifying
            potential buyers.
       5.   Better use of selling time (deployment).

114
SUMMARY

                 Sales Efficiency     Sales Effectiveness

Defined         Getting in front of   Using skills and abilities
                customer at minimum   to maximize sales
                cost                  potential

Mechanisms      Working harder:       Working smarter:
for improving    – time management     – coaching
                 – incentives          – skills training
                 – call reports        – account strategies
                 – territory design

Measures         – penetration         – success rates
                 – call rates          – repeat business
                 – cost / call         – sustainable margins




115
MOVING TO ACTION


      • Efficiency:
         – Can be driven top down

      • Effectiveness:
         – Acting differently
         – Hard to drive top down
         – Salespeople and managers do it



                           Source: The Klompmaker Consulting Group

116
Logistics – A Strategic Perspective

• Measured by Cost
• Technology allows firms to manage inventory
  they cannot see and sometimes do not own
• Disintermediation
• Creating wholesaler value




117
Two Views of Inventory Management




      Velocity



                          Level




118
Inside the Buyer’s Mind
•     What do you offer?
•     What do you offer that no one else has?
•     What do you offer of value?
•     Does it really fill my need?
•     Is it real world?
•     Will it work?
•     Will it work in our environment?
•     How will it impact our people?
•     How could it impact our success?
•     Will senior management buy in?
•     Will my people use it?
•     How will we produce as a result of the purchase?
•     How will we profit as a result of the purchase?
•     Do I trust the people I’m buying from both as people and for their ability to deliver
      what they promise?
•     How will it come together?
•     How do we buy it?
•     Do I have the comfort to sign off now?
119
ABC Analysis Based on Annual Dollar Volume
                             Annual Dollar Volume Percentages

                        1                2                 3                 4
         Item                       Annual Usage     Annual Usage       % of Total
                    Unit Cost
                                       (units)         (dollars)       Dollar Usage
          1                  4.00            1,000
          2                  2.50            1,500
          3                  3.00            5,000
          4                 30.00            4,000
          5                 31.00           10,000
          6                  1.20            8,000
          7                 25.00            1,500
          8                 20.00              100
          9                  8.00              625
          10                 6.00            2,000
                                             Total                         100%

      1. Now rank the answers from the highest annual dollar usage to the lowest:

                         1                  2               3                4
         Item       Annual Usage
                                        % of Total    Cumulative % Classification
                      (dollars)




120

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Strategi pemasaran

  • 1. STRATEGI PEMASARAN Arriffin Mansor 1
  • 2. Value Creation Model: Value Creation/ Destruction Operating Income - ( Total Assets x WACC ) Gross Profit - Cost Structure Current Assets + Fixed Assets + Long Term Liabilities Revenues - Cost of Goods Working Capital + Other Assets & Liabilities Inventory + Debtors - Creditors 2
  • 3. Value Creation/ Destruction Operating Income - ( Total Assets x WACC ) Gross Profit - Cost Structure Current Assets + Fixed Assets + Long Term Liabilities Revenues - Cost of Goods Working Capital + Other Assets & Liabilities Inventory + Debtors - Creditors 3
  • 4. THE STRATEGIC GAPS • HOW MUCH GROWTH IS LEFT IN MY CURRENT MARKETS? CUSTOMERS? • WHERE WILL MY FUTURE GROWTH COME FROM? • HOW WILL I CAPTURE MARKET SHARE? • WHAT ARE THE COMPONENTS OF MY DIFFERENTIATION STRATEGY? • WHERE DO I GENERATE PROFITS? WHERE COULD I GENERATE PROFITS? 4
  • 5. P Which segments / customers will we CUSTOMER TARGETS O concentrate on ? S I T Whom will we COMPETITOR I challenge for these customers? TARGETS O N I N What incentives will we provide to get them to CORE STRATEGY G buy from us… rather than from competitors? 5
  • 6. THE ACCOUNT PORTFOLIO Strong Weak High Selectively Invest / Grow Invest ACCOUNT ATTRACTIVENESS Manage for Maintain Cash / • Size Withdraw • Growth Low • Profitability BUSINESS STRENGTHS • Location • Purchasing criteria and processes • Product range • Current suppliers • Product efficacy • Status of customer • Service quality (prestige) • Price • Technical services • Reputation/image • Past experience • Quality of sales staff • Quality of relationships 6
  • 7. ACCOUNT PORTFOLIO ANALYSIS Strong Strength of Position Weak High KEY TARGET Attractiveness: Attractiveness: Accounts are very attractive since they Accounts are potentially attractive offer high opportunity and sales since they offer high opportunity, but organization has strong position. sales organization currently has weak position with accounts. Sales call strategy: Sales call strategy: Accounts should receive a high level of Selected accounts should receive a sales calls since they are the sales high level of sales calls to strengthen organization’s most attractive the sales organizations position. accounts. Account Opportunity MAINTENANCE WHY BOTHER Attractiveness: Attractiveness: Accounts are somewhat attractive since Accounts are very unattractive since sales organization has strong they offer low opportunity and sales position, but future opportunity is organization has weak position. limited. Sales call strategy: Sales call strategy: Accounts should receive no field sales Accounts should receive a moderate calls and a minimum of inside sales level of sales calls to maintain the resources. current strength of the sales organization’s position. And, efforts Low should be made to replace field sales calls with telephone sales. 7
  • 8. ACCOUNT SEGMENTATION AND PRIORITIZATION High KEY ACCOUNTS TARGET ACCOUNTS (Your competition’s Key Accounts) • 10-20% of your account base • Gets very little attention ACCOUNT ATTRACTIVENESS • 80% of your GP$ • Receives less than 50% of your resources MAINTENANCE ACCOUNTS WHY BOTHER? ACCOUNTS • 40-45% of your account base • 30-40% of your account base • Less than 5% of your GP$ • 10-15% of your GP$ • Receives 20-30% of your • Receives 30-40% of your resources resources • Creates 90% of your Low ―headaches‖ 8 Strong YOUR STRENGTH OF POSITION Weak
  • 9. 10 LANGKAH RANCANGAN PEMASARAN 9
  • 10. 3 ways of doing business – M. Porter Mass Product production Differentiation and cheap and premium pricing pricing strategi strategy Niche Marketing 10
  • 11. 5 Langkah Rancangan Pemasaran` 11
  • 12. Matlamat Perniagaan PTJ Pusingan Aset Gandaan Ekuiti • PTJ • PTA • PTE 12
  • 13. CORPORATE PERFORMANCE ROS ROA ATO ROE ASSETS EM EQUITY 13
  • 14. PEMASARAN Rancangan Rancangan Pemasaran Jualan Strategi Pemasaran Rancangan Keuntungan Matlamat Pemasaran 14
  • 15. 5 Langkah Rancangan Pemasaran` 1 • Titik pulang kos 1 • Matlamat Pemasaran • Modal kerja dan Modal Tetap 2 • Strategi Perniagaan • Segmentasi ,Sasaran dan profile pelanggan 3 • Saiz dan nilai pasaran • Strategi 4 P 4 • Positioning atau perletakan • Strategi Pemasaran melaui BSC perspektif 5 • Metrik Pemasaran • Belanjawan Pemasaran 6 15
  • 16. STRATEGI PEMASARAN • Margin premium atau murah Harga • Kuantiti banyak x margin kecil Produk •Kualiti atau biasa •Faedah produk diterang dgn jelas • Media dan saluran yang sesuai Promosi • Mesej yang sesuai • kesesuaian Saluran • Kos saluran 16
  • 17. Cash CREDITORS Working Stock capital debtors 17
  • 18. Kehendak Manusia SELF ACTUALISATION EGO SOCIETY SECURITY BASIC 18
  • 19. Interaksi Pemasaran Pelanggan Organisasi Produk 19
  • 21. PEMASARAN STRATEGIK 1. Senario Ekonomi Malaysia 2. Campuran Pemasaran 3. Analisis Pemasaran (SWOT & Audit) 4. Kajian Kes 5. Penyediaan Pelan Pemasaran Strategik 6. Pembentangan 21
  • 22. PEMASARAN STRATEGIK Senario Ekonomi Malaysia • Perniagaan ialah 1 unit drpd satu sistem ekonomi • Perubahan dalam sistem yg besar beri kesan kpd unit-unit sekeliling • Kepekaan kpd senario ekonomi semasa beri kemampuan untuk bertindak ikut rentak sealiran dgn ekonomi 22
  • 23. PEMASARAN STRATEGIK Petunjuk-petunjuk utama ekonomi (key economic indicators): 1. KNK (GDP) 2. Indeks Komposit BSKL 3. Belanjawan Negara 4. Polisi Fiskal 5. Polisi Kewangan 23
  • 24. PEMASARAN STRATEGIK Senario Ekonomi Malaysia 1. Kepentingan Usahawan 2. Dunia Tanpa Sempadan 3. K-Ekonomi 4. Islam 5. AFTA 24
  • 25. PEMASARAN STRATEGIK Apa itu Pemasaran Strategik? • Suatu usaha untuk mempertahankan keuntungan dan kelebihan kompetitif melalui satu Strategi Pemasaran yang komprehensif dan terkini • 3 elemen pokok dlm Pemasaran Strategik ialah S.T.P (segmentation, targeting, & positioning) 25
  • 26. Sales Force Management Fall 1999 26
  • 27. Product Life Cycle Impact: The Value Added Wall for HPBA Companies Value Added Sales Services Price Product Profits 27 Time
  • 28. Profit Margin Management Sales Gross Margin Net Profit Net Profit Margin ÷ Cost of Goods Sold Sales Total Expenses 28
  • 29. Managing Assets: Inventory and Accts Rec. are the keys Inventory Sales Asset Accounts Turnover Current Assets Receivable ÷ Total Assets Fixed Other Current Assets Assets 29
  • 30. Calculating Return on Assets Sales Gross Margin Net Profit Net Profit Margin ÷ Cost Of Goods Sold Return on Assets Sales Total Expenses x Inventory Net Profit/ Sales Total Assets Asset Turnover Current Assets Accts Rec. ÷ Total Assets Fixed Other Current Assets Assets 30
  • 31. Sales management - Outline • Role of the sales force in corporate strategy • Trends in personal selling and sales management • Functions of the salesperson and sales manager • Course overview 31
  • 32. Strategic Leverage of the Sales Force • Customer focus • Enhances customer loyalty • Source of competitive advantage 32
  • 33. Enhances Customer Focus • Allows a targeted market segment approach – one customer at a time – customize sales calls and presentations by needs – important source of market knowledge and customer needs assessment 33
  • 34. Develops Customer Loyalty • Creates high switching costs – salesperson (knowledge, expertise, relationship) creates product/service differentiation, particularly when competitors’ products deliver the same basic benefits • Loyalty reduces the customers’ price sensitivity 34
  • 35. Source of Competitive Advantage • Creates a barrier to entry – costs of creating a sales force – market access • Creates a medium-to-long term competitive advantage – unlike advertising (medium-term) or pricing (short-term) 35
  • 36. Trends in Personal Selling • Nature of the sales job: – Informed consultant: • knowledge of customers, industries and applications – Process (rather than event) driven – Team player – Customer advocate/Market feedback – Integration of promotional mechanisms (e.g. DTC) 36
  • 37. Trends in Personal Selling • Nature of the sales manager’s job: – Decentralized management; greater span of control – Automation – Database targeting/customer data – Evaluated on team performance (rather than individual performance) – Reward in many ways (not just $$) 37
  • 38. Importance of Effective Sales Management • Expensive part of marketing strategy • Cost of call: – Overall average: $157 – ($239 for a value-added selling environment) 38
  • 39. Sales and Marketing Management 39
  • 40. Drivers Of/Barriers to Change What’s driving you to What’s stopping you from making these make these changes? changes? 40
  • 41. DIFFERENTIATING CUSTOMER SEGMENTS Customer Segment ELEMENT OF STRATEGY KEY / TARGET MAINTENANCE WHY BOTHER • Order Processing Top priority. Secondary priority. Lowest priority. • Technical Support Top priority Secondary priority. Not available. • Training Yes. Yes. Hourly fee. Not available. • Fill Rates X% Y% 100%. No backorders ship complete. • Returns Yes. No restocking Yes, restocking fee Only if over $Y, fee. of $X. restocking fee of $X. • On-time Stock items same Stock items same Stock items shipped Shipment day if order place day if order placed within 48 hours. by 4:00 p.m. before 1:00 p.m. • Product Mix Stock & non-stock Stock and non stock Stock, in stock only. from stock & non- from stocking stock suppliers. suppliers only. • Non-stock Yes. Yes, from stocking No non-stocks. Sourcing suppliers only. • Minimum Order No minimum. No min. on stock $200. Size 41 items; $200 minimum on non-stock items.
  • 42. Perspectives on the Sales Management Function Traditional View New View Manager of Scarce Do-er Resources Responsible for Volume Profit Planning Long Term and Short Short Run Term Customer Types and Individual Customers Segment Differences Field Work Rather Systems for Market Than Desk Work Analysis, Planning and Control Driver Leader Developer of Sales Developer of People 42
  • 43. Changing Business Environment The Leads to Selling Changing Selling Ballgame Environment Resulting in  Better Understanding of Customer’s Needs Harder to Get and Hold Customers and It Costs  Better Selectivity More!  Better Selling Strategies  Better Time & Territory Implications Management 43
  • 44. THE INTEGRATED MODEL Sales Force Drivers People and Culture Sales Force Activity Customer Results Company Results 44
  • 45. PURPOSE OF A BUSINESS • Purpose of a business is to create a customer. • Profit is only a test of management decision making. • Profit is required to maintain the customer. • A business only has two primary functions, sales and innovation, everything else is just cost. INNOVATION MARKETING The world according to Peter Drucker 45
  • 46. THE LOGIC Clarifying and Translating the Focus and Strategy  Clarifying the focus  Gaining consensus Communicating and Strategic Feedback and Linking Learning  Communicating and Clarifying the Focus  Articulating the focus and educating  Setting goals BALANCED SALES TEAM strategy  Facilitating strategy  Linking rewards to review and learning performance measures Planning and Target Setting  Setting targets  Aligning strategic initiatives  Allocating resources  Establishing milestones 46
  • 47. STRATEGY DEVELOPMENT Strategic Value Customers Extrinsic Value Customers (leveraging supplier’s (buying beyond product value) enterprise competencies) Create Create new extraordinary value through value for a few INCREASE sales efforts very large BENEFITS customers REDUCE Lessen cost COST and effort of acquisition Intrinsic Value Customers 47 (buying on product value alone)
  • 48. Functions of the Salesperson • Prospecting • Communicating: two-way • Allocating & coordinating: company resources, time • Servicing • Helping define marketing strategy 48
  • 49. Functions of the Sales Manager • Communicate expectations: tell salespeople what you expect them to do • Make the work doable: an important component o the SM role here is removing obstacles to performance • Evaluate and give feedback: reward successful behavior, apply corrective actions for behavior that is not acceptable 49
  • 50. Course Overview • Effective Personal Selling • Strategic Issues • Tactical Issues • Industrial Settings – informed buyers – discipline of repeat purchase – often genuine differentiation is possible 50
  • 51. PEMASARAN STRATEGIK Petunjuk-petunjuk utama ekonomi (key economic indicators): 1. KNK (GDP) 2. Indeks Komposit BSKL 3. Belanjawan Negara 4. Polisi Fiskal 5. Polisi Kewangan 51
  • 53. Course Overview (continued) • Effective Personal Selling – What is effective personal selling? – Business to business selling and the Buyclass Framework (Case: Lawford Electric) 53
  • 54. Course Overview (continued) • Strategic Issues – Vertical Integration (Case: Jamestown) – Control Systems – Structuring the Sales Force(Cases: Wright Line & Siebel Systems – Sales Force Allocation: Deployment & Organization (Case: Syntex) – Territory Assignment & Design – Strategy for Optimal Sales Productivity 54
  • 55. Course Overview (continued) • Tactical Issues – Sales Analysis (Case: Milford A) – Performance Evaluation (Case: Milford B) – Compensation (Case:Mary Kay Cosmetics) & Motivation (Case: IMAGE) – Selection (Case: IDS) & Training – Information Systems/Sales Force Automation (Case: Profiling at National Mutual) – Sales Force Automation 55
  • 56. Personal Selling “Everybody lives by selling something.” Robert Louis Stevenson Careers in Sales High demand but not a career for everybody, but, good experience early in any career… Negative perceptions $…$…$ 56
  • 57. Personal Selling 7 steps Selling Process 1. Prospecting 2. Customer Profile 3. Approaching 4. Presenting/Demonstration 5. Handling Objections and Questions 6. Closing 7. Follow-up 57
  • 58. Personal Selling Sales force activities – Cultivating new clients – Communication – Selling – Servicing – Information gathering – Allocating scarce resources 58
  • 59. Personal Selling Objectives Units or $ sold Market share by territory Target profit per sale Maximize sales per $ cost Maximize number of sales calls per period …but these mostly conflict…? 59
  • 60. Personal Selling Salary versus Commission control…incentive security…fairness simplicity…flexibility 60
  • 61. Personal Selling 4 E’s 1. Energy for long hours 2. Enthusiasm for job, product 3. Empathy for customer 4. Ego, victory, desire to win 61
  • 62. Blowing in the Wind Video Annoying Sales Promotion Works 62
  • 63. Cost-Volume-Profit Graph Total Revenue Revenue Profit Total Cost Y Loss X Unit sold X = Break-even point in units Y = Break-even point in revenue 63
  • 64. Profit-Volume Graph Profit I = (P - V)X - F Slope = P - V Units Loss Break-Even Point In Units -F 64
  • 65. Example 3 The Rapid Meal has two restaurants that are open 24 hours per day. Fixed costs for the two restaurants together total $450,000 per year. Service varies from a cup of coffee to full meals. The average sales check for each customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The income tax rate is 30%. Target net income is $105,000. 65
  • 66. Example 3 Cont’d Compute the total dollar sales needed to obtain the target net income. How many sales checks are needed to break even? Compute net income if the number of sales checks is 150,000 66
  • 67. Multiple-Product Example Assume the following: Regular Deluxe Total Percent Units sold 400 200 600 ---- Sales price per unit $ 500 $750 ---- ---- Sales $200,000 $150,000 $350,000 100.0% Less: Variable expenses 120,000 60,000 180,000 51.4 Contribution margin $ 80,000 $ 90,000 $170,000 48.6% Less: Fixed expenses 130,000 Net income $ 40,000 ======= 1. What is the break even point? 2. How much sales revenue of each product must be generated to earn a before tax profit $50,000? 67
  • 68. Pulangan terhadap ekuiti Gandaan Pusingan Ekuiti Pulangan Aset terhadap Jualan 68
  • 69. Pulangan Prestasi Utama PTE PTA PTJ 69
  • 70. KEY PERFORMANCE INDICATORS A/E = J/A = GANDAAN PUSINGAN HUTANG MODAL U/J = UNTUNG BERSIH 70
  • 71. KEY PERFORMANCE INDICATORS A/E = J/A = GANDAAN PUSINGAN HUTANG MODAL U/J = UNTUNG BERSIH 71
  • 75. Costs plus profit Variable Fixed Profit Price costs costs 75
  • 82. Financial Leverage: Assets Liabilities 82
  • 86. Strategy Map: Capture a Cause Effect Relationship from the Bottom Up Stakeholder Improved More rapid and Returns on accessible Investments services Internal Process Economic Reduce Re-Activities Establish Web Model Process thru ABC/M Based Self Services & Growth Learning Expand Global Leadership Knowledge Facility Reach Development Management Investments Facilities and IT Human Capital Fixed Assets Infrastructure 86
  • 87. Managing Assets: Inventory and Accts Rec. are the keys Inventory Sales Asset Accounts Turnover Current Assets Receivable ÷ Total Assets Fixed Other Current Assets Assets 87
  • 90. Perspektif BSC Kewangan Pelanggan Proses Dalaman Pekerja dan Kemahiran 90
  • 93. Matlamat Pemasaran • untung PTJ • Jualan • Jualan PTA • Jumlah Aset • Aset GE • Ekuiti 93
  • 94. Produk isi Intangible Jaminan Bungkusan 94
  • 95. Kualiti Produk keselamatan economy 95
  • 96. STRATEGI PEMASARAN PULANGAN TERHADAP Kurangkan kos tingkatkan JUALAN jualan PULANGAN PUSINGAN Jualan tunai dan belian TERHADAP ASET secara kredit EKUITI GANDAAN Sewa jangan beli EKUITI Jika beli dengan pinjaman bank 96
  • 98. PEMASARAN Strategi Perletakan Segmentasi 98
  • 99. Marketing Plan Marketing Product Place Price Promotion Objectives Have web Increase Reduce Price of New Product Penang based Market Share product A promotion Gain New Add benefits Direct selling Higher margin networking Customers Market Better Existing klang Reducing Price CRM Penetration brochures valle channel by 3% Using web Improve Sales Reduce Change packing Increase Price based Margin marketing costs marketing 99
  • 100. Strategi Pemasaran perspektif BSC • Tingkatkan • Tambah Pulangan Pelanggan • Syer pasaran • Nilai Jualan Matlamat Kepuasan Kewangan Pelanggan Pekerja & Proses Latihan Dalaman • Kompetensi • Masa • Teknologi penyampaian baru • Kos menurun 100
  • 101. Rancangan Pemasaran • Analisis kos, volum dan untung. • Belian atau harga kilang • Tunai + penghutang + stok • Kos Penghantaran • Overhead Pemasaran 101
  • 102. 14 Langkah Rancangan Pemasaran Analisis Kos Strategi Matlamat Segmentasi volum dan Pemasaran – Pemasaran Pelanggan untung 4ps Belanjawan 7 Langkah Pengurusan Perletakan Belian atau menjual Jualan Produk harga kilang Ramalan Kos Overhead Modal Kerja Jualan Bualanan Penghantaran Pemasaran Belanjawan Metrik Pemasaran Pemasaran 102
  • 103. COMPTENCY DEVELOPMENT Identified Assessment Areas of Role competencies result improvement Action plan Dr. MG Jomon, XIMB
  • 106. Soalan soalan jika ada 106
  • 107. “Bottom Line” A business can no longer rely on the uniqueness of their products to retain customers or grow new sales revenue. Customers will align their business with strategic suppliers who understand their business and bring a unique offering which adds value by impacting their ―bottom line‖ through increased sales revenue or reduced costs 107
  • 108. Inadequate Sales Performance Aware of what No How can goals and standards was expected be made clear? Yes Aware of own No How can the salesperson performance be sensitized? Yes Uncontrollable Yes How to avoid, eliminate, negative factors or ignore? No Yes Lack of ability How to train? No Yes Lack of want-to How to motivate? 108
  • 109. Evaluating Sales Performance Data Analysis Information Observation Sources Interview 109
  • 110. Possible Situations... Fix the Causes of the problem problem are fixable (ROTI) Causes of the problem Forget the are fixable, but problem not work fixing or Terminate Causes of the problem the person are not fixable 110
  • 111. THE SALES REPRESENTATIVE THINKS… 1. What is expected of me?  The Planning Process Priorities Programs Processes The Numbers 2. How am I doing? 3. How do I need to change? The Feedback Process The Adjustment Process Metrics Corrective actions Performance Appraisals Continuous Improvement Field coaching KIP’s, PIP’s Meetings  New planning for the Compensation future 111
  • 112. QUOTES FROM PERFORMANCE APPRAISALS • ―This individual has talents but has kept them well hidden.‖ • ―Combs his hair to one side and appears rustic.‖ • ―A quiet, reticent, neat appearing individual— industrious, tenacious, diffident, careful, and neat. I do not wish to have this person as a member of my staff at any time.‖ • "His leadership is outstanding except for his lack of ability to get along with his subordinates.‖ • ―He hasn’t any mental traits.‖ • ―He needs careful watching since he borders on the brilliant.‖ • ―Believes sincerely in the power of prayer and it is astonishing to note how many times his prayers are answered.‖ • ―He never makes the same mistake twice but it seems to me that he has made them all once.‖ • ―Gives the appearance of being fat due to the tight clothes he wears.‖ 112
  • 113. QUOTES FROM PERFORMANCE APPRAISALS–2 • ―Is keenly analytical and his highly developed mentality could best be used in the research and development field. He lacks common sense.‖ • ―An independent thinker with a mediocre mentality.‖ • ―Recently married and devotes more time to this activity than to his current assignment.‖ • ―Tends to create the impression of unpositive personality through needless and undiscerning gentility and soft spokenness.‖ • ―Of average intelligence except for lack of judgment on one occasion in attempting to capture a rattlesnake for which he was hospitalized.‖ 113
  • 114. The Key Challenge G.M. Sales Productivity = C.O.S. Where: G.M. = Gross Margin Dollars C.O.S. = Cost of Sale in Dollars Implications 1. Less discounting. 2. Selling higher margin products. 3. Selling more product lines to each customer (cross-selling). 4. Being more selective and discriminating in qualifying potential buyers. 5. Better use of selling time (deployment). 114
  • 115. SUMMARY Sales Efficiency Sales Effectiveness Defined Getting in front of Using skills and abilities customer at minimum to maximize sales cost potential Mechanisms Working harder: Working smarter: for improving – time management – coaching – incentives – skills training – call reports – account strategies – territory design Measures – penetration – success rates – call rates – repeat business – cost / call – sustainable margins 115
  • 116. MOVING TO ACTION • Efficiency: – Can be driven top down • Effectiveness: – Acting differently – Hard to drive top down – Salespeople and managers do it Source: The Klompmaker Consulting Group 116
  • 117. Logistics – A Strategic Perspective • Measured by Cost • Technology allows firms to manage inventory they cannot see and sometimes do not own • Disintermediation • Creating wholesaler value 117
  • 118. Two Views of Inventory Management Velocity Level 118
  • 119. Inside the Buyer’s Mind • What do you offer? • What do you offer that no one else has? • What do you offer of value? • Does it really fill my need? • Is it real world? • Will it work? • Will it work in our environment? • How will it impact our people? • How could it impact our success? • Will senior management buy in? • Will my people use it? • How will we produce as a result of the purchase? • How will we profit as a result of the purchase? • Do I trust the people I’m buying from both as people and for their ability to deliver what they promise? • How will it come together? • How do we buy it? • Do I have the comfort to sign off now? 119
  • 120. ABC Analysis Based on Annual Dollar Volume Annual Dollar Volume Percentages 1 2 3 4 Item Annual Usage Annual Usage % of Total Unit Cost (units) (dollars) Dollar Usage 1 4.00 1,000 2 2.50 1,500 3 3.00 5,000 4 30.00 4,000 5 31.00 10,000 6 1.20 8,000 7 25.00 1,500 8 20.00 100 9 8.00 625 10 6.00 2,000 Total 100% 1. Now rank the answers from the highest annual dollar usage to the lowest: 1 2 3 4 Item Annual Usage % of Total Cumulative % Classification (dollars) 120