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Sales Strategy
PRAVEEN
1
2
Organizational Strategy Levels
Strategy Level Key Decision Areas Key Decision Makers
Corporate Strategy Corporate Mission
SBU Definition
SBU Objectives
Corporate Growth Orientation
Corporate Management
Business Strategy Strategy Types
Strategy Execution
SBU Management
Marketing Strategy Target Market Selection
Marketing Mix Development
Integrated Mkt Communications
Marketing Management
Sales Strategy Account Targeting Strategy
Relationship Strategy
Sales Channel Strategy
Sales Management
SBU Objectives and the Sales Organization
3
Salary plus bonusCall on and service
most profitable
accounts only and
eliminate
unprofitable
accounts
Reduce inventories
Reduce selling
costs
Target profitable
accounts
Harvest
Salary plus
commission or
bonus
Call on targeted
current accounts
Increase service
levels to current
accounts
Maintain sales
volume
 Consolidate
market position
Hold
Salary plus incentiveCall on prospective
and new accounts
Product/market
feedback
Build sales volume
Secure distribution
Build
Recommended
Compensation
SystemPrimary Sales Tasks
Sales Organization
Objectives
Market Share
Objectives
Developing Growth Strategies
4
1. Market
Penetration
2. Market
Development
3. Product
Development
4. Diversification
Existing
Markets
New
Markets
Existing
Products
New
Products
Product/ Market Expansion Grid
Product/ Market Expansion Grid
Market Penetration: making more sales to current customers
without changing our products
Market Development: develop new markets for our current
products
◦ Identify new demographic or geographic markets.
Product Development: offering modified or new products to
current markets
◦ New Features, flavors, or modified products.
Diversification: new products for new markets
◦ Start up or buy new businesses.
5
Porter’s Generic Business Strategies(Competitive Advantage)
◦Low Cost - focus on low cost
◦Differentiation - focus on uniqueness
◦Niche - focus on a particular target market and use a low cost or
differentiation approach
Role of the Salesforce
◦Low Cost - sell to large customers; minimize costs; focus on price;
order taking role
◦Differentiation - sell non-price benefits; high customer service and
responsiveness; target low price sensitive customers; order
generator
◦Niche - low cost or differentiation approach 6
Business Strategy and the Sales Function
Business Strategy Types
Personal Selling-Driven vs. Advertising-
Driven
7
Advertising
Personal Selling
When Message Flexibility is Important
When Message Timing is Important
When Reaction Speed is Important
When Message Credibility is Important
When Trying to Close the Sale
When Low Cost per Contact is Important
When Repetitive Contact is Important
When Control of Message is Important
When Audience is Large
Sales Management Planning
a) Involves setting objectives and determining ways to achieve
them.
b) Sales planning is very crucial when introducing new products.
Close cooperation between sales and production management is
crucial to the successful launching of innovative products.
c) Strategic plan outlines how resources will be allocated to market
opportunities.
8
Planning Hierarchy
Corporate mission
Strategic business plan (long-term plan for the overall resource
allocation to market, which includes marketing, finance, HR,
operations, production).
Strategic marketing plan (long term plan for specific products
and markets).
Strategic sales plan (long range plan for sales activities).
Tactical Sales Plans (short run plan for implementing sales
strategy).
9
Information for Sales Planning
Primary Data – new data gathered specifically for the project in
hand
Secondary Data – available data also gathered for some other
purpose
Other sources of information (e.g. MIS(marketing info sys),DSS(Decision support
sys))
Sales Intelligence
10
Sales Intelligence
Sales people are expected to provide information for sales planning
and management and there is growing need for better sales
intelligence from the field.
Sales people possess vital information about the market that can be
used to develop sales forecasts and quotas, to assess new products,
and to formulate marketing strategies.
Salespeople should be encouraged/motivated by the management;
they should be provided with incentives, training, and proper
supervision to encourage them to provide relevant information.
11
Contd..
Sales managers must also make sure that the marketing intelligence
process is a two-way communication. Once the data has been analyzed,
it is essential that relevant facts are communicated back to the field
force in order to improve their selling efficiency.
Although the sales person has thorough knowledge about the market,
his opinion may be biased or incomplete knowledge.
For this reason sales manager must work with other staff specialists to
develop a procedure for incorporating information from the field into
the marketing planning process. For such reasons other sources are
also used, like:
12
1. Secondary data (which provides insight about the market
conditions and competitors)
2. Internal sales data (which allows managers to trace the
histories of individual accounts, products, territories, and
seasons)
3. Product life cycle patterns
4. Fluctuations, growth and decline of specific customers or
customer groups (This information can be used to detect
changes into different areas and at different times
throughout the year)
5. marketing research team
13
Sales Management Planning Process
1. Analysis – examines what happens in the past, look at the
present situation, SWOT analysis, trend analysis.
2. Goal setting phase – set the direction for the sales force
3. Sales strategies – translate the goals into action
4. Tactical plans – more specific action plans, specific detailed
outlines, assignment of responsibilities /deadlines
5. Implementation stage – plan is executed here
6. Control stage – serves to compare actual outcomes with
planned results, in order to examine any plan revisions for the
future.
14
15
Any Inputs?
16
Thank You

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Sales/Marketing Strategy for the Startups

  • 2. 2 Organizational Strategy Levels Strategy Level Key Decision Areas Key Decision Makers Corporate Strategy Corporate Mission SBU Definition SBU Objectives Corporate Growth Orientation Corporate Management Business Strategy Strategy Types Strategy Execution SBU Management Marketing Strategy Target Market Selection Marketing Mix Development Integrated Mkt Communications Marketing Management Sales Strategy Account Targeting Strategy Relationship Strategy Sales Channel Strategy Sales Management
  • 3. SBU Objectives and the Sales Organization 3 Salary plus bonusCall on and service most profitable accounts only and eliminate unprofitable accounts Reduce inventories Reduce selling costs Target profitable accounts Harvest Salary plus commission or bonus Call on targeted current accounts Increase service levels to current accounts Maintain sales volume  Consolidate market position Hold Salary plus incentiveCall on prospective and new accounts Product/market feedback Build sales volume Secure distribution Build Recommended Compensation SystemPrimary Sales Tasks Sales Organization Objectives Market Share Objectives
  • 4. Developing Growth Strategies 4 1. Market Penetration 2. Market Development 3. Product Development 4. Diversification Existing Markets New Markets Existing Products New Products Product/ Market Expansion Grid
  • 5. Product/ Market Expansion Grid Market Penetration: making more sales to current customers without changing our products Market Development: develop new markets for our current products ◦ Identify new demographic or geographic markets. Product Development: offering modified or new products to current markets ◦ New Features, flavors, or modified products. Diversification: new products for new markets ◦ Start up or buy new businesses. 5
  • 6. Porter’s Generic Business Strategies(Competitive Advantage) ◦Low Cost - focus on low cost ◦Differentiation - focus on uniqueness ◦Niche - focus on a particular target market and use a low cost or differentiation approach Role of the Salesforce ◦Low Cost - sell to large customers; minimize costs; focus on price; order taking role ◦Differentiation - sell non-price benefits; high customer service and responsiveness; target low price sensitive customers; order generator ◦Niche - low cost or differentiation approach 6 Business Strategy and the Sales Function Business Strategy Types
  • 7. Personal Selling-Driven vs. Advertising- Driven 7 Advertising Personal Selling When Message Flexibility is Important When Message Timing is Important When Reaction Speed is Important When Message Credibility is Important When Trying to Close the Sale When Low Cost per Contact is Important When Repetitive Contact is Important When Control of Message is Important When Audience is Large
  • 8. Sales Management Planning a) Involves setting objectives and determining ways to achieve them. b) Sales planning is very crucial when introducing new products. Close cooperation between sales and production management is crucial to the successful launching of innovative products. c) Strategic plan outlines how resources will be allocated to market opportunities. 8
  • 9. Planning Hierarchy Corporate mission Strategic business plan (long-term plan for the overall resource allocation to market, which includes marketing, finance, HR, operations, production). Strategic marketing plan (long term plan for specific products and markets). Strategic sales plan (long range plan for sales activities). Tactical Sales Plans (short run plan for implementing sales strategy). 9
  • 10. Information for Sales Planning Primary Data – new data gathered specifically for the project in hand Secondary Data – available data also gathered for some other purpose Other sources of information (e.g. MIS(marketing info sys),DSS(Decision support sys)) Sales Intelligence 10
  • 11. Sales Intelligence Sales people are expected to provide information for sales planning and management and there is growing need for better sales intelligence from the field. Sales people possess vital information about the market that can be used to develop sales forecasts and quotas, to assess new products, and to formulate marketing strategies. Salespeople should be encouraged/motivated by the management; they should be provided with incentives, training, and proper supervision to encourage them to provide relevant information. 11
  • 12. Contd.. Sales managers must also make sure that the marketing intelligence process is a two-way communication. Once the data has been analyzed, it is essential that relevant facts are communicated back to the field force in order to improve their selling efficiency. Although the sales person has thorough knowledge about the market, his opinion may be biased or incomplete knowledge. For this reason sales manager must work with other staff specialists to develop a procedure for incorporating information from the field into the marketing planning process. For such reasons other sources are also used, like: 12
  • 13. 1. Secondary data (which provides insight about the market conditions and competitors) 2. Internal sales data (which allows managers to trace the histories of individual accounts, products, territories, and seasons) 3. Product life cycle patterns 4. Fluctuations, growth and decline of specific customers or customer groups (This information can be used to detect changes into different areas and at different times throughout the year) 5. marketing research team 13
  • 14. Sales Management Planning Process 1. Analysis – examines what happens in the past, look at the present situation, SWOT analysis, trend analysis. 2. Goal setting phase – set the direction for the sales force 3. Sales strategies – translate the goals into action 4. Tactical plans – more specific action plans, specific detailed outlines, assignment of responsibilities /deadlines 5. Implementation stage – plan is executed here 6. Control stage – serves to compare actual outcomes with planned results, in order to examine any plan revisions for the future. 14