dr. dawne martin business marketing – mktg 550 november 15, 2011 social media, sales & sales...
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DR. DAWNE MARTINBUSINESS MARKETING – MKTG 550
NOVEMBER 15 , 2011
Social Media, Sales & Sales Management
Learning Objectives
Review presentation guidelinesElectronic Media
Investigate how electronic media is used Investigate types and uses for B2B social media Investigate trends in interactive media use
Sales and Sales Management 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 situationsFor Next Time: Help for Project & Chapter 14 –
Pricing & Negotiating for Value
How Do B2B Marketers Use the Internet?
Channels of distributionCustomer relationship buildingBrand image – thought leadershipIntroduction of new products and solutionsTechnical expertiseCommunity
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 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 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
=prosphp_inav-smallbusinessEastman Kodak
http://graphics.kodak.com/US/en/default.htmIBM
Solutions: http://www.ibm.com/us/Oracle
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
External Environment
Organizational Environment
Target Markets & Marketing
Mix
Account Management Policies
Sales Force Organization
Sales Planning, Forecasting, Budgeting
Deployment, Territory Design
The Environment Marketing Strategy
Sales Management Activities
Churchill, Ford & Walker (1997), Sales Force Management, 5th ed., Irwin, p. 6.
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
Vice PresidentOf Purchasing
Vice PresidentOf Sales
Director ofPurchasing
AccountManager
EngineerProductSpecialist
Buying Company Selling Company
Exhibit 13-513-15
CUSTOMER FOCUSED TEAM STRUCTURE
AccountConsultant
F&A Rep.Customer
Sales Specialists
AccountManagerTeamLeader
Manufacturing
Finance andAccounting
Other Business Units
OtherRep.(s)
PurchasingAgent
Shipping
CSSRep.
CustomerSupportService
Purchasing
ShippingManager
SalesSpecialists
Prod. / Ind.Mktg. Groups
Exhibit 13-713-16
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 plansEvaluating Performance – Balance Score Card
Productivity – Activities vs. Outcomes Customer Satisfaction Profitability Contribution to the company
Exhibit 13-8
ALLOCATION GRID FOR SALES RESOURCES
Relatively fewerresources shouldbe allocated here
Low
Maintain sufficientresources to continueto reap the salespotential and strongposition
High
Direct more salesresources here
Assign toalternative methodof communicating,such astelemarketing
Weak
Strong
MARKET LIFETIME VALUE
RELATIVEPOSITION
13-18
DO YOU OUTSOURCE THE SALES FORCE?
YES NO• Establish relationships• Salary and selling
expenses can be limited• Little/no up-front investment
• Loss of control over sales presentation
• Products may not be aselling priority withrepresentative
TO MAKE IT WORK:
INVEST IN TRAINING ANDMERCHANDISING MATERIALS
13-19
MANAGER’S DILEMMA: EVALUATINGPERFORMANCE & MAINTAINING MOTIVATION
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
5 STEPS TO EVALUATE SALES FORCE PERFORMANCE
Exhibit 13-1113-20
RECOGNIZING AND IDENTIFYING A PROBLEM
Expectations
Enormity of problem rests on length of this difference
Results
PROBLEM RECOGNITION
1. Our sales are down: WHY?2. We can’t see customers: WHY?3. We can’t make appointments on time : WHY?4. We spend too much time covering territory : WHY?5. Our territories are too big : WHY?6. We don’t have enough salespeople : WHY?
THE 6xWHY FILTER Ask the WHY question at least six times(or as many times as necessary)
PROBLEM IDENTIFICATION
“The Problem”
CONCLUSION / PROBLEMWe haven’t matched demand to our sales force.
13-21
Taxonomy of Relationships
Relationship Value
Discrete Transactions
Bilateral Governance
Adapted from Rackham & DeVincentis, Rethinking the Sales Force, 1999
Extrinsic Value
Intrinsic
Value
Strategic
Value
Relational Exchange
Customer Value & Selling Modes
Transactional Selling
Consultative Selling
Enterprise Selling
Value = Benefits - Costs
A Cheaper, No Hassle Pie
A Balanced Diet
Intrinsic Value
Buyers
Extrinsic Value
Buyers
Strategic Value
BuyersEnterprise Assets
Sales Assets
Transaction Asset
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
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 BuyersEnterprise 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 - New Product Development Logistic - Marketing & Sales