Chapter
2
2-1
Strategic Sales
Force Management
You got to be very careful
if you don’t know where
you’re going, because
you might not get there.
Yogi Berra
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Figure 2-1:
A company’s
complete
marketing
system
2-2
Macroenvironmental
forces:
Demography
Economic conditions
Sociocultural factors
Political-legal factors
Technology
Competition
Company’s marketing mix:
Suppliers
Marketing
intermediaries
Product planning
Price structure
Distribution system
Promotional activities
Marketing
intermediaries
Nonmarketing resources in the firm:
Production
Financial
Personnel
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Public image
Research and
Development
Location
The
market
2-3
The Marketing Concept
 A philosophy:
Achieving organizational goals depends
on the firm’s ability to identify the needs and wants of a
target market, and then to satisfy those needs and
wants better than the competition does.
 Based
on three fundamental beliefs
Company planning and operations should be customer or
market oriented.
 Marketing activities in a firm should be organizationally
coordinated.
 The goal of the organization should be to generate
profitable sales volume over the long run.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Evolution of
Marketing Management
 Production

orientation
Age of the hard-sell.
 Marketing

orientation
Focus on mass-producing a limited variety of products for
as little cost as possible.
 Sales

2-4
orientation
The marketing concept first emerges.
 Relationship
orientation
A natural extension of the marketing-orientation stage.
 The buyer and seller commit to doing business over a
long time.

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
2-5
Figure 2-3
How do these
selling styles
depicted in this
1927 cartoon
relate to the
four stages in
the evolution
of marketing
management?
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Relationship Marketing:
Four key issues
Open
communication
Empowering
Customers
Working
 Total
employees
and the planning process
in teams
quality management
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
2-6
2-7
Teaching Teamwork
 In
your opinion, which one of these (if any) would be
most effective at teaching a salesperson how to be an
effective member of a selling team?

Cooking class

Drum circle

Military exercise

Outdoor adventure

Ropes exercise
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
2-8
Integrating…
 …Marketing
and Sales
Marketing executives  develop marketing strategy
 Salespeople  implement the strategy in the field

 …Production

and Sales
Production makes what Sales sells

Close integration / accurate forecasts needed, or else…


Under-production  dissatisfied customers
Over-production  excessive, costly inventory
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
2-9
Strategic Planning

Set
Objectives
Objectives are the broad
goals around which a strategic

plan is formulated.
Formulate
Strategies are the plans of
Strategies
action.

Tactics are the specific
activities that people must
perform in order to carry out
the strategy.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Develop Tactics
2-10
Company StrategyMarketing Objectives and Strategy
Company
Objectives
Marketing
Earn 20% ROI
Strategy
Increase marketing share 10%
Objectives
Increase market
share 10%
Strategy
Increase share of customer business
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
2-11
Marketing StrategySales Force Objectives, Strategy and Tactics
Marketing
Objectives
Sales Force
Increase market share 10%
Strategy
Objectives
Increase share of customer business
Increase share of
customer business
Strategy
Build long-term
customer relations
Tactics
Develop sales teams
Provide bonuses for greater customer share
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
2-12
Strategic Trends
 Internet
Selling
 Multiple Sales Channels
 Multiple Relationship Strategies

Transaction selling  Consultative selling
 In
this era of global warming, toxic waste, pollution, and
other concerns, marketing executives must act in a
socially responsible manner if they wish to succeed or
even survive.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Customer Relationship
Management
 CRM
2-13
practices
Involve a company-wide software application utilizing
advanced computer- and Internet-technology.
 Aggregate all information about customers into a single
database.
 Provide salespeople/customers access to timely and
relevant information.
 Allow effective management of every aspect of the buyerseller relationship.
 Require training


Only effective if salespeople embrace it and are willing to
use it.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.