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Chapter Two

Strategic Sales Force Management

Case Assign for Thursday:

KV Homes Case1-1, pp. 32-33

The Marketing System p. 39 External Environment

Economic Conditions

Sociocultural factors

Political-legal factors

Technology

Competition

2-1

The Marketing System (cont.)

Internal Variables in Marketing Systems

Marketing Mix

Product, Price, Place

Promotional Mix (Communications)

Used to adjust to External Environment

2-2

The Marketing Concept and Marketing

Management

Customer or Market Oriented

Organizationally Coordinated

Profitable Sales Volume (or Breakeven for Not-

For-Profit organizations) over the long run

2-3

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Marketing Management and Its

Evolution def. marketing management (Chief

marketing executive is responsible for the

planning, implementation, and coordinatingall marketing activities, and integrating theminto the overall operations of the firm)

History (Stages)

Production-Oriented

Sales orientation

Marketing Orientation

Relationship-Orientation

2-4

Evolution of Selling in the U.S.

Past titles for salespeople

Independent peddlers

Canvassers

Book Agents

Drummers

The key to success in sales has not changedin the past 83 years [Fig 2-3, p. 45]

ID customers problems and the underlying needs

Find a solution to the customers problems

Communicate your solution properly to yourcustomers

2-5

Relationship Marketing

Understanding Customer Expectations Promoting open communication

Empowering Employees

Building Service Partnerships

Collaborating in planning and teamwork

with members of the buying center

Total Quality Management

2-6

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How to Practice Relationship Marketing,from a recent Sales and Marketing Management(S&MM) Abstract

Continuous Dialogue with customers to define current

and future needs

Assign permanent contact personnel to each customer,

empower them to resolve customers problems

Use customer standards, # product returns, #

complaints, # billing errors, on time deliveries to drive

plans and customer relationships

Measure customer satisfaction on an on-going basis

2-7

Working together?

Integrating Marketing and Sales Functions

Integrating Production and Sales

2-8

Strategic Planning

Objectives

Specific, Measurable, Written,

Challenge (Stretch), Time limit

Alignment of Objectives and Decisions

Strategies

Tactics

2-9

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Strategic Planning at Company,

Marketing, and Sales Levels

Strategic Planning for the Total Company Goals --> Possible Strategies

Strategic Marketing Planning

Company Goal --> Company Strategy (marketing strategy) -->

Marketing Strategy

Sales Force Strategy Corporate goal --> Corporate Strategy (marketingstrategy) -->

Marketing Strategy (sales force goal) -~ Sales Force Strategy

Sales Force Tactics

Examples of goals and strategies p. 52 and at each

level p. 53

2-10

Strategic Trends

Internet Selling

Multiple Sales Channels

Multiple Relationship Strategies,

Transaction Selling

Consultative (Relationship) Selling

Partnership

2-11

Systems Selling(Selling a total package of services to solve customers problems)

Value added resellers

Systems integrator

2-12

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Marketing Managements Social

Responsibility

All we have to offer is Our Good Name

Trust based on honesty and dependability

2-13

Team Selling

Demography

Team Selling --> Buying Center Individuals

2-14

Marketing Managements Social

Responsibility

(Tobacco industry vs. Ben and Jerrys)

2-15