Sales Management 4
Strategic Roles
Sales and Sales Management
Organizational Capabilities
External
Emphasis
Internal
Emphasis
Outside-In
Process
Inside-Out
Process
Spanning Process
•Market Sensing
•Customer Linking
•Channel Bonding
•Technology Monitoring
•Customer Order
Fulfillment
•Pricing
•Purchasing
•Customer Service
Delivery
•New Products/Service
Development
•Strategy Development
•SALES
•Financial Management
•Cost Control
•Technology Development
•Integrated Logistics
•Manufacturing/
Transformation Processes
•Human Resources
Management
•Environmental Health
and Safety
Integrated Marketing
Make sure the Four Ps match.
 If selling on price, can’t have most
expensive ingredients.
 Make sure all marketing communications
are working together.
 Same message in ads, sales, literature,
PR, promotions

General Business Strategies and Their Implications
Type of Strategy
Sales Force Implications
PORTER’S TYPOLOGY
______________
Aggressive construction of efficient-scale
facilities, vigorous pursuit of cost
reductions from experience, tight cost
and overhead control, usually associated
with high relative market share.
Servicing large current customers, pursuing
large prospects, minimizing costs, selling
on the basis of price, and usually assuming
significant order-taking responsibilities.
_______________
Creation of something perceived
industrywide as being unique.
Provides insulation against competitive
rivalry because of brand loyalty and
resulting lower sensitivity to price.
____________
Service of a particular target market, with
each functional policy developed with
this target market in mind. Although
market share in the industry might be
low, the firm dominates a segment within
the industry.
Selling nonprice benefits, generating
orders, providing high quality of customer
service and responsiveness, possibly
significant amount of prospecting if high
growth industry, selecting customers based
on low price sensitivity. Usually requires a
high quality sales force.
To become experts in the operations and
opportunities associated with the target
market. Focusing customer attention on
nonprice benefits and allocating selling time
to the target market.
Miles and Snow Typology
___________
Attempt to pioneer in product/market development. Offer a frequently
changing product line and be willing to sacrifice short-term profits to
gain a long-term stronghold in their markets.
____________
Offer a limited, stable product line to a predictable market. Markets are
generally in the late growth or early maturity phase of the product life
cycle. Emphasis is on being the low-cost producer through high volume
______________
Choose high growth markets while holding onto substantial mature
markets. Analyzers are an intermediate type of firm. They make fewer
and slower product market changes than prospectors, but are less
committed to stability and efficiency than defenders.
Prospector
Primary focus is on sales volume growth.
Territory management emphasizes
customer penetration and prospecting
Defender
Maintain the current customer
base. Very little prospecting
for new customers is involved.
Customer service is
emphasized along with greater
account penetration.
Analyzer
Must balance multiple
roles: servicing existing
customers, prospecting
for new customers,
uncovering new
applications, holding
onto distribution of
mature products and
support campaigns for
new products.
Marketing Strategy and
the Sales Function

Advantages
 Only promotional tool that consists of personal
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 closed

Disadvantage
 High cost per contact
Advertising
Relatively Important
Large
Low
Small
Little
Low
Pull
Pre-set
Many
Personal Selling
Relatively Important
Number and Dispersion of _____________
Buyers’ ____________Needs
Size and Importance of ___________
Postpurchase Service Required
Product ____________
Distribution Strategy
Pricing Policy
______________ Available for Promotion
Small
High
Large
Much
High
Push
Negotiated
Few
Sources of Increased Profit from Loyal Customers
Why loyal
customers are
more profitable
120
Contribution to profits
100
80
Price premium
Referrals
Lower costs
Increased sales
volume
Initial sales
Cost of new
customer
60
40
20
0
0
1
2
3
4
5
Years as a customer
6
7
Using the Internet in Sales

Increase Reach

Gather Information about Customers

Showcase New Products

Conduct Surveys

Enhance Corporate Image

Obtain Feedback

Service Existing Customers
Industrial Distributors

Have Their Own Sales Force

May Represent One Manufacturer;
Several Non-competing Manufacturers;
Several Competing Manufacturers

Normally Carry Inventory
Independent/Manufacturers’ Reps
 Sell
complementary products from non-
competing manufacturers.
 Do
Not Normally Carry Inventory
 Paid
for ____________
 Reduced
__________over Selling Effort
 Reduced
_______to Customer Information
Team Selling
Two Types of Team Selling
–Multilevel Selling
–Major Account Selling
Telemarketing
May replace field sales force for certain accounts
When integrated with field sales force, activities
include:

Prospecting, Qualifying Leads, Conducting
Surveys

Taking Orders, Checking on Order Status,
Handling Order Problems

Following Up for Repeat Business
Trade Shows

Generate ______

Test Market New _________

Introduce New ___________

Close __________

Gather Competitive ___________

Service Existing Customers

Enhance Corporate Image