STRATEGIC SALES MANAGEMENT

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STRATEGIC SALES MANAGEMENT

• The world of selling must accommodate a
  dramatically changed world of buying

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Territory Analysis

• Why Do It?
• To obtain thorough coverage of the market
• To establish territory responsibilities
• To evaluate Performance
• To improve customer relations
• To reduce cost/increase profitability
• To allow better salesforce/customer matching

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Target Account Strategy
TARGET ACCOUNTS
SALES STRATEGY

• Undifferentiated Account Approach

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Target Account Strategy
Account 1
Account 2
SALES STRATEGY
Account 3
Account 4

• Account Segmentation Approach
• Key Account
• Profitability
• Size
• Potential

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Expected Value Analysis

• Determination of product potential on an account
  by account basis.
• Estimates of Market Share and Probability are
  based upon the judgement of the salesperson and
• Amount of past sales
• Degree and kind of competition
• Product,Price, and Service commitments
• Economic conditions
• Existing account relationships

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Expected Value of an Account

• EV PPV x ?(SES x PES)
• EVExpected value
• PPV Potential Product Volume
• SES Salesperson Estimated Share
• PES Probability of getting expected share

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Expected Value

• EVPPV X Expected Share
• 60,000 X .43 25,800

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Sales Force Quality Impacts Financial Performance

• Value of Quality Sales Force Increases as
• Customer pressure intensify
• Sources of Product differentiation dry up
• Supply Chain Functions become more integrated

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Sales Strategy is most important when
High Low

• Product is differentiated
• Product is New
• Product is late in life cycle
• Product is undifferentiated

High Low
Amount of Product Differentiation Product Life
Cycle
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From Product Power to Customer Power

• Over time sources of of MFG. Profitability change
  
• Early one profits are proportional to account
  size
• Consolidation in most customer industries has led
  to much more concentration at the top of the
  account triangle

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