Social Media, Sales & Sales
Management
DR. DAWNE MARTIN
BUSINESS MARKETING – MKTG 550
NOVEMBER 15, 2011
Learning Objectives
 Review presentation guidelines
 Electronic Media

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Investigate how electronic media is used
Investigate types and uses for B2B social media
Investigate trends in interactive media use
 Sales and Sales Management
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Identify the roles of sales in B2B marketing
Identify the sales management issues and strategies f
Review “Rethinking the Sales Force” and relate to current strategies
and situations
 For Next Time: Help for Project & Chapter 14 – Pricing
& Negotiating for Value
How Do B2B Marketers Use the Internet?
 Channels of distribution
 Customer relationship building
 Brand image – thought leadership
 Introduction of new products and solutions
 Technical expertise
 Community
Trends for 2009
“Marketers say social media, customer engagement and interactives are
top trends for 2009”, BtoB, Nov. 12, 2009
 Increase in use of social media, customer engagement

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Social networks for sharing business issues – blogs, online press
releases
Interactive solution tools
Strong analytics for database marketing and segmentation
Interaction based on past purchase behavior
 Solution marketing
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
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White papers
Deeper product information
Thought leadership programs – seeding the market with ideas for
improvement through innovative solutions
Webinars
Internet vides
Blogs, Wikis, Podcasts
Some Examples
 American Express:

https://home.americanexpress.com/home/open.shtml?source=pros
php_inav-smallbusiness
 Eastman Kodak

http://graphics.kodak.com/US/en/default.htm
 IBM

Solutions: http://www.ibm.com/us/
 Oracle
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Technology: http://www.oracle.com/technology/index.html
Solutions:
Communities: http://www.oracle.com/community/index.html
 SalesForce.Com

Demo: http://www.salesforce.com
Electronic Media
: IBM - A Smarter Planet - Overview - United States
Electronic/Web-based B2B Marketing
 Virtual Conference: http://vue.on24.com/
Formulating a Strategic Sales Plan
The Environment
External
Environment
Organizational
Environment
Marketing
Strategy
Target
Markets &
Marketing
Mix
Churchill, Ford &
Walker (1997),
Sales Force
Management, 5th
ed., Irwin, p. 6.
Sales Management
Activities
Account Management
Policies
Sales Force
Organization
Sales Planning,
Forecasting, Budgeting
Deployment, Territory
Design
Sales Person’s Role in Creating Value
 Managing customer relationship
 Creating customers for life
 Customer service
 Coordinating the firm’s actions in order to satisfy
customer requirements
 Gaining customer information to aid in marketing
decision-making
Customer dialog
 Competitive Information

Account Management Policies
 What kind of selling should we use?
 Script-based selling
 Needs satisfaction selling
 Consultative selling
 Strategic partner selling
 What kinds of accounts should sales reps handle?
 What kinds of accounts should be handled through
less expensive means (e.g., telemarketing, direct
marketing, e-commerce)
BUYING AND SELLING TEAMS
STREAMLINE MULTILEVEL SELLING
Buying Company
Selling Company
Vice President
Of Purchasing
Vice President
Of Sales
Director of
Purchasing
Account
Manager
Engineer
Product
Specialist
Exhibit 13-5
13-15
CUSTOMER FOCUSED TEAM STRUCTURE
Sales Specialists
Manufacturing
Customer
Support
Service
Shipping
Account
Manager
Account
Team
Consultant
Leader
CSS
Rep.
Shipping
Manager
F&A Rep.
Customer Sales
Specialists
Purchasing Other
Rep.(s)
Agent
Purchasing
Finance and
Accounting
Prod. / Ind.
Mktg. Groups
Other Business
Units
Exhibit 13-7
13-16
Management Issues
 Sales Force Organization & Size
 Geographic, Product, Customer
 Sales Teams
 Sales force size
 Directing the Sales Force
 Territory design
 Quotas – activity and performance
 Compensation – Straight salary, straight commission,
bonuses, combination plans
 Evaluating Performance – Balance Score Card
 Productivity – Activities vs. Outcomes
 Customer Satisfaction
 Profitability
 Contribution to the company
ALLOCATION GRID FOR SALES RESOURCES
MARKET LIFETIME VALUE
High
Low
Relatively fewer
Strong resources should
be allocated here
RELATIVE
POSITION
Weak
Assign to
alternative method
of communicating,
such as
telemarketing
Maintain sufficient
resources to continue
to reap the sales
potential and strong
position
Direct more sales
resources here
Exhibit 13-8
13-18
DO YOU OUTSOURCE THE SALES FORCE?
•
•
•
YES
Establish relationships
Salary and selling
expenses can be limited
Little/no up-front
investment
NO
• Loss of control over
•
sales presentation
Products may not be a
selling priority with
representative
TO MAKE IT WORK:
INVEST IN TRAINING AND
MERCHANDISING MATERIALS
13-19
MANAGER’S DILEMMA: EVALUATING
PERFORMANCE & MAINTAINING
MOTIVATION
5 STEPS TO EVALUATE SALES FORCE PERFORMANCE
1.
REVIEW SPECIFIC SALES OBJECTIVES
2. OBTAIN APPROPRIATE PERFORMANCE DATA
(outcomes and effort)
3. EVALUATE WHAT WAS BEYOND SALESPERSON’S
CONTROL
4. IDENTIFY PROBLEMS AND OPPORTUNITIES
5. CREATE A STRATEGY THAT RESOLVES PROBLEMS
AND SEIZES OPPORTUNITIES
Exhibit 13-11
13-20
RECOGNIZING AND IDENTIFYING A PROBLEM
PROBLEM RECOGNITION
Expectations
“The Problem”
Results
Enormity of problem rests on length of this difference
PROBLEM IDENTIFICATION
THE 6xWHY FILTER Ask the WHY question at least six times
(or as many times as necessary)
1.
2.
3.
4.
5.
6.
Our sales are down: WHY?
We can’t see customers: WHY?
We can’t make appointments on time : WHY?
We spend too much time covering territory : WHY?
Our territories are too big : WHY?
We don’t have enough salespeople : WHY?
CONCLUSION / PROBLEM
We haven’t matched demand to our sales force.
13-21
Taxonomy of Relationships
Discrete
Transactions
Relationship
Value
Relational
Exchange
Extrinsic
Value
Bilateral
Governance
Strategi
c Value
Intrinsi
c Value
Adapted from Rackham & DeVincentis,
Rethinking the Sales Force, 1999
Customer Value & Selling Modes
Value = Benefits - Costs
Transaction
Asset
Sales Assets
Enterprise Assets
A Cheaper, No
Hassle Pie
Intrinsic
Value
Buyers
Extrinsic
Value
Buyers
Strategic
Value
Buyers
Transactional
Selling
Consultative
Selling
Enterprise
Selling
A Balanced Diet
Intrinsic Value Buyers
 Strategic Options
 Create New Value -- move to Extrinsic Value
 Adapt -- Reengineer sales approach
Eliminate sales force
 Move to lower-cost channels
 Drastically reduce cost of current sales force

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Make the Market-- Find ways to profit from transaction itself
Exit -- Disengage from market segment
Extrinsic Value Buyers
 New Consultative Selling
 Help customers understand problems, issues &
opportunities in new & different ways
 Show customers new or better solutions
 Act as advocates for customers
 What is Takes
 Investment of effort
 Longer relationship horizons
 Different skills -- Seeking Vs Telling
 Metrics
Strategic Value Buyers
 Enterprise Selling
 Selling the enterprise, rather than product
Searching for new ways to create value for customer
 Multi-functional relationship at many levels

Equality in the relationship
 Creating value at the boundary


Opportunities for value & improvement at boundaries between
functions


Production
Logistic
- New Product Development
- Marketing & Sales