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Why Plan?
Alice: Which way should I go? Cheshire Cat: That depends on where you are going. Alice: I dont know where I am going. Cheshire Cat: Then it doesnt matter which way you go!!
The Plan
In the beginning was the plan. And then came the assumptions. And the assumptions were with out form. And the plan was completely without substance. And darkness was upon the face of the workers.
Definition of Strategy/Strategic
A careful plan or method The art of devising or employing plans or stratagems toward a goal Of great importance within an integrated whole or to a planned effect Necessary to or important in the initiation, conduct, or completion of a strategic plan
1. 2. 3.
4.
Ideas Assumptions
6.
Direction Strategies
7.
8. 9. 10.
Execution
Territory Plans
Action Plans
Tactical
P O S I T I O N I N G
CUSTOMER TARGETS
COMPETITOR TARGETS
What incentives will we provide to get them to buy from us rather than from competitors?
CORE STRATEGY
Maintain
Size Growth Profitability Location Purchasing criteria and processes Current suppliers Status of customer (prestige)
Low
BUSINESS STRENGTHS
Product range Product efficacy (the power to produce an effect ) Service quality (inc. distribution) Price Associated services (e.g. Tech advice) Reputation/image Past experience Quality of sales staff
Weak
Attractiveness: Accounts are potentially attractive since they offer high opportunity, but sales organization currently has weak position with accounts. Sales call strategy: Selected accounts should receive a high level of sales calls to strengthen the sales organizations position.
Account Opportunity
MAINTENANCE
Attractiveness: Accounts are somewhat attractive since sales organization has strong position, but future opportunity is limited. Sales call strategy: Accounts should receive a moderate level of sales calls to maintain the current strength of the sales organizations position. And, efforts should be made to replace field sales calls with telephone sales.
WHY BOTHER
Attractiveness: Accounts are very unattractive since they offer low opportunity and sales organization has weak position. Sales call strategy: Accounts should receive no field sales calls and a minimum of inside sales resources.
Low
TARGET ACCOUNTS
(Your competitions Key Accounts)
ACCOUNT ATTRACTIVENESS
MAINTENANCE ACCOUNTS
40-45% of your account base 10-15% of your GP$ Receives 30-40% of your resources
Low Strong
Weak
KEY
TARGET
Sales Channel: Direct Marketing, Teleselling, and Field Selling Selling Effort: Heavy (best prospects) Low (other prospects)
ACCOUNT OPPORTUNITY
MAINTENANCE
Sales Channel: Inside Sales Field Selling and Teleselling Moderate
WHY BOTHER
Sales Channel: Teleselling, Direct Marketing, and Some Inside Selling Effort: Low
Selling Effort:
Weak
Strong
COMPETITIVE POSITION
Weak
Leads to
Changing Selling Environment
Resulting in
Harder to Get and Hold Customers and It Costs More!
Implications
PRIORITIES
Time Management
25 227
Administratio n 16%
Travel 17%
2001
n 16%
Travel 18%
2000
Profit Orientation
A business must satisfy the needs of its customers at an acceptable level of profitability. Therefore, the purpose of marketing is not simply to generate sales or achieve a certain market share, but rather to produce profitable sales and a profitable market share.
Integrated Effort
All activities or a business should be integrated and coordinated so as to satisfy customer needs at a satisfactory rate of profitability. Marketing must be coordinated with finance, production, personnel administration, engineering, and research and development. Moreover, all marketing activities must be effectively integrated and coordinated in order to achieve market impact.
Manage supply channel strategic alliances partnering customer linked strategies integrated supply National account programs Single source product breadth product depth EDI
Broader offering of true value added services Proof of performancevendor score cards provided by vendors Vendor as a business consultant to account Problem solving vendors will be chosen Reduction of in-house expertise by customers Require modular / systems, global vendors with total quality Purchase packages of integrated components (systems) versus single components Better P.O.P. merchandising
V.
Change Areas
International, national account perspectives Better technical skills Better research skills Understanding Customer specialized sales forces
I
Any business is good!
II
All Business is good!
III
What business is good?
IV
Certain business is good!
Sell to survive
Start-up
Volume growth
Market share
Optimization
THE PURPOSE
SALES FORCE TIME & EFFORT
Customer Resource Allocation Decisions What segment(s) to call on What volume segments to call on: High volume vs. low volume National accounts vs. smaller accounts What profitability segments to call on: highly profitable vs. less profitable New vs. existing accounts High penetration vs. low penetration accounts What geography to focus on Headquarters vs. field calls Product Resource Allocation Decisions New vs. existing products High volume vs. low volume products Easy to sell vs. hard to sell products Familiar vs. unfamiliar products Products with high short-term impact and low carryovers vs. products with low short-term impact and high carryover High-tech products vs. low -tech products Long selling cycle vs. short selling cycle Differentiated vs. non-differentiated Highly competitive vs. noncompetitive Activity Resource Allocation Decisions Hunting vs. farming Selling vs. servicing Relationship expert vs. product expert vs. industry expert vs. customer expert
SELLING PROCESSES
Planning 1
Recognizing Searching 2 3
Evaluating 4
Selecting 5
VENDOR
Present-Handle Objections-Close Where Sellers Focus Efforts
SUPPLIER
Searching through implementing
Communication
Communication
Selling Organization
REP
Buying Organization
Marketing Strategy
policies procedures programs
Procurement Strategy
policies procedures programs
Relationship Creation
1. Learning about the customer is intense and dominates selling 2. Listening dominates talking 3. Teaching the customer is need driven and problem focused 4. The goal is to build relationships through credibility, responsiveness, and trust
2. Talking dominates listening 3. Persuading the customer is product driven and benefits focused 4. The goal is to build buyers and sales through persuasion, price, presence and terms
TYPICAL PROCESS
Recognition of Needs Evaluation of Options Resolution of Concerns Purchase Implementstation
Help customers recognize and define problems and needs in a new or different way.
Show superior solutions, options, and approaches that customers may not have understood or considered.
Seller can help make purchase painless, convenient, and hasslefree. Little or no opportunity to create sales value.
Seller can create most value early in the process by helping customers define needs and solutions.
Consultative seller can design customized solutions and help customers make informed choices.
Research Findings
The world of selling is dynamic by customers changing needs and values. Customers are more reliant upon sellers for: information advice problem solving Information technology is having a major impact on customer / seller relationships. Total organization win, sustain, and grow customer relationships.
Orchestrating Resources
Strategic Selling
Transactional Selling
Transactional Selling
Bottom Line
A business can no longer rely on the uniqueness of their products to retain customers or grow new sales revenue.
Customers will align their business with strategic suppliers who understand their business and bring a unique offering which adds value impacts their bottom line through increased sales revenue or reduced costs
5% Process the requisite selling skills that make them stand out 35% Just manage to pay their way 60% Just there for the beer
Do more forecasting of future customer requirements Spend more time planning calls Spend more time in group, system, and strategic selling Improve territory management
Do less driving in the territory Spend more time in telephone selling Do more active selling
PROFITS
G.M. = C.O.S. =
3. Selling more product lines to each customer (cross-setting). 4. Being more selective and discriminating in qualifying potential buyers. 5. Better use of selling time (deployment).
2nd Efficiency
Productivity
Clear priorities in terms of: Markets Customers Products Activities And clear strategy To drive the allocation of resources
Managing the allocation of sales resources to: Markets Customers Products Activities Measure the "return on investment" regularly.
PRODUCTIVITY
EFFICIENCY
Number of doors opened
EFFECTIVENESS
What is done once in door
SUMMARY
Sales Efficiency
Defined Getting in front of customer at minimum cost Working harder: time management incentives call reports territory design penetration call rates cost / call
Sales Effectiveness
Using skills and abilities to maximize sales potential Working smarter: coaching skills training account strategies
Measures