Ethical dilemma (p. 51)

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Ethical dilemma (p. 51)

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The personal computer business unit of Modern Tech is reaching the end of its ... ABC purchased a number of computers from you last year. ... – PowerPoint PPT presentation

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Title: Ethical dilemma (p. 51)


1
Ethical dilemma (p. 51)
  • The personal computer business unit of Modern
    Tech is reaching the end of its fiscal year and
    is very close to meeting its sales growth
    objective. Herb Smith, your sales manager, is
    rallying the troops to get over the top so
    everyone can earn a substantial performance
    bonus. You are motivated to do your share. Your
    first call today is to ABC. ABC purchased a
    number of computers from you last year. Mary,
    purchasing manager at ABC, indicates that her IT
    people want to upgrade these computers. You know
    this sale could be critical to meeting your quota
    and the business units sales growth objective.
    However, you also know that a new, more powerful
    PC will be available in 3 months. This new
    personal computer is exactly what ABC needs, but
    the sale cannot be made until after the fiscal
    year ends.

2
Organizational Strategiesand The Sales Function
  • Module Three

3
The Importance of TrustAn Experts Viewpoint
Franciscan Estates consists of seven winery
estates based in California. Using the
traditional sales strategy of working through
distributors, the company had little information
about product or customer sales beyond the
distributor level. The company developed a
customer relationship management (CRM) strategy
to establish different types of relationships
with different customers at different levels.
4
channels
  • Franciscan Estates makes wine
  • 300 distributors worldwide
  • restaurants
  • consumers

5
The Importance of TrustAn Experts Viewpoint
The sales organization uses this information to
strengthen relationships with existing accounts
and to prioritize sales efforts to existing and
new customers . . . . . . Franciscan Estates has
used it CRM strategy and technology to develop a
competitive advantage for its marketing and
selling efforts.
6
Organizational Strategy Levels
7
Mission statements
  • We aim to be a global organization that
    constantly stays a step ahead in dealing with
    change, creates new value, and contributes
    broadly to society. Sumitomo
  • To provide clients with Expertise, Leading Edge
    Technology and Quality Products that will produce
    Maximum Drilling Program Efficiency and
    Environmental Care. Genesis Internat. Oilfield
    Services
  • Our product SERVICE. Our value-added FINANCIAL
    ADVICE. Our competitive advantage OUR PEOPLE.
    Vision and values of WellsFargo

8
Organizational Strategy Levels
9
Definition ofStrategic Business Units (SBUs)
10
Change at the top
  • In the early 1980s, the information technology
    (IT) world revolved around the product offerings
    of the Big 4
  • IBM
  • Digital Equipment Corporation (DEC)
  • Burroughs
  • Data General
  • In office automation including word-processing,
    Wang Computers and Lanier dominated.
  • Only IBM remains as a major firm
  • in these markets.

11
SBU Objectives andthe Sales Organization
Salary plus incentive
Prospective and new accounts Provide high service
levels particularly pre-sales service Product/mark
et feedback
Build sales vol. Secure distribution
Build
12
Salary, bonus, incentive
  • A bonus is a lump-sum payment for an above-normal
    performance
  • A bonus must always be combined with salary
    and/or commission
  • incentive means commission
  • Siebel Systems in 2001 paid a base salary plus
    commissions plus a quarterly bonus based on
    customer satisfaction surveys for each rep

13
SBU Objectives andthe Sales Organization
Salary plus commission or bonus
Call on targeted current accounts Incr. service
levels to current accounts Call on new accounts
Maintain sales vol. Consolidate market position
through concentration on targeted segments Secure
additional outlets
Hold
14
SBU Objectives andthe Sales Organization
Salary plus bonus
Service most profitable accounts eliminate
unprofitable accounts Reduce service
levels Reduce inventories levels
Reduce selling costs Target profitable accounts
Harvest
15
SBU Objectives andthe Sales Organization
Salary
Dump inventory Eliminate service
Minimize selling costs and clear out inventory
Divest or Liquidate
16
Business Strategy andthe Sales Function
Strategy Type
Sales Force Role
Pursue large customers Minimize cost Compete on
price Seek customers who are low price shoppers
  • Low-cost supplier

17
Business Strategy andthe Sales Function
Strategy Type
Sales Force Role
Compete on non-price benefits Provide high
quality customer service Seek customers who are
not low price shoppers
  • Low-cost supplier
  • Differentiation

18
Business Strategy andthe Sales Function
Strategy Type
Sales Force Role
Serve a distinct target market not served well by
others Provide high quality customer service Seek
customers who are not low price shoppers
  • Low-cost supplier
  • Differentiation
  • Niche

19
Marketing Strategy andthe 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

20
Personal Selling-Driven vs. Advertising-DrivenMar
keting Communications Strategies
Personal Selling
When Message Flexibility is Important When
Message Timing is Important When Reaction Speed
is Important When Message Credibility is
Important When Trying to Close the Sale
When Low Cost per Contact is Important When
Repetitive Contact is Important When Control of
Message is Important When Audience is Large
Advertising
21
Target Market Situations andPersonal Selling
  • Target Market
  • A definition of the specific market segment to be
    served
  • Personal Selling-Driven Promotional Strategies
    are appropriate when
  • The market consists of only a few buyers that
    tend to be concentrated in location
  • The buyer needs a great deal of information
  • The purchase is important
  • The product is complex
  • Service after the sale is important

22
Integrated Marketing CommunicationsIMC
23
The Sales Strategy Framework
24
Organizational Buyer BehaviorTypes of
Organizations

Users purchase products and services to produce
other products and services
Original Equipment Manufacturers (OEM) purchase
products to incorporate into products
Resellers purchase products to sell
25
Organizational Buyer BehaviorTypes of
Organizations

Federal, State, and Local Government Agencies
Government Organizations
Public and Private Institutions
Institutions
26
Organizational Buyer Behavior Buying Situations
  • Straight Rebuy Buying Situation
  • Routinized Response Behavior
  • Modified Rebuy Buying Situation
  • Limited Problem Solving
  • New Task Buying Situation
  • Extensive Problem Solving

27
Organizational Buyer Behavior Buying Center
  • Initiators
  • Users
  • Gatekeepers
  • Influencers
  • Deciders
  • Purchasers

28
Organizational Buyer BehaviorBuying Process
  • Phase 1 Recognize Problem/Need
  • Phase 2 Determine Item Specs/Quantity Needed
  • Phase 3 Specify Item Specs/Quantity Needed
  • Phase 4 Identify and Qualify Potential Sources
  • Phase 5 Acquire and Analyze Proposals
  • Phase 6 Evaluate Proposals/Select Suppliers
  • Phase 7 Selection of Order Routine
  • Phase 8 Performance Feedback/Evaluation

29
Personal and Organizational Needs
30
Sales StrategyAccount-Targeting Strategy
  • The classification of accounts withina target
    market into categories forthe purpose of
    developing strategic approaches for selling to
    each account or account group.

31
Sales StrategyRelationship Strategy
  • A determination of the type of relationship to be
    developed with different account groups.

32
Characteristics of Relationship Strategies
33
Sales Strategy Selling Strategy
  • Ensuring that accounts receive selling effort
    coverage in an effective and efficient manner.

34
Matching Selling andRelationship Strategies
35
Sales Strategy Sales Channel Strategy ensuring
that accounts receive selling effort coverage
efficiently and effectively
  • The planned selling approach for each
    relationship strategy. Use one or more these
  • The Internet
  • Industrial Distributors
  • Independent Representatives
  • Team Selling
  • Telemarketing
  • Trade Shows

36
Sales Strategy The Internet
  • Increase Reach
  • Gather Information about Customers
  • Showcase New Products
  • Conduct Surveys
  • Enhance Corporate Image
  • Obtain Feedback
  • Service Existing Customers

37
Sales Channel StrategyIndustrial Distributors
  • Have Their Own Sales Force
  • May Represent One Manufacturer Several
    Non-competing Manufacturers Several Competing
    Manufacturers
  • Normally Carry Inventory

38
Sales Strategy Independent or Manufacturers
Reps
  • Sell complementary products from non-competing
    manufacturers.
  • Do Not Normally Carry Inventory
  • Paid for Performance (commission)
  • Reduced Control over Selling Effort
  • Reduced Access to Customer Information

39
Independent sales firm
  • You want to expand and increase your customer
    base, but you need sales people to do it. And you
    can't hire sales people until you are making
    revenues from a larger customer base.
  • The most common solution is to hire an
    independent sales company, or rep firm

40
Rep firm
  • The rep firm will work on commission-only, but
    the reps will not work just for you -- they will
    represent several different companies and sell
    whoever's product or service seems the best match
    for the customer

41
Fixed costs..Variable costs
42
Sales Strategy Team Selling
  • Three Selling Situations
  • New Task Selling
  • Modified Resell Selling Situation
  • Routine Resell Selling Situation
  • Two Types of Team Selling
  • Multilevel Selling
  • Major Account Selling

43
Sales Strategy 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

44
Sales Strategy Trade Shows
  • Generate Leads
  • Test Market New Products
  • Introduce New Products
  • Close Sales
  • Gather Competitive Information
  • Service Existing Customers
  • Enhance Corporate Image

45
Enhancing the brand
  • Trade shows are an excellent place to enhance the
    brand because of the personal contact that can
    occur.
  • Even with all the emailing and Internet
    communication most customers crave the personal
    contact of a sales call and conversation at a
    trade show.

46
Enhancing the brand
  • All the personalization efforts on the best
    interactive web sites cannot come close to the
    experience of a personal contact.
  • The larger the purchase the more the need to have
    some personal contact.
  • The more complex the transaction the more need
    for personal contact.

47
Integrating the trade show
  • Use the Internet to support your relationship
    marketing plan.
  • Develop an appropriate preview of your trade show
    exhibit and post it on the web about a month
    before the show and leave it up for a month
    afterwards.
  • Surveys show that more that 60 percent of
    attendees use the Internet to plan their trade
    show visits.

48
Focus
  • Before going to a trade show try to be very clear
    who your market segment is and who it is not.
  • If top management is unclear about exactly whom
    its target market is, spend some time with them
    to make it clear.
  • Planning, executing and following up on the
    results of a trade show are infinitely easier if
    you have a good description of your target market
    segment.

49
Use the trade show
  • Introducing a new brand at a trade show is often
    an excellent idea because your most important
    buyers and potential partners are likely to
    attend and be in the right frame of mind to learn
    about your new offering.
  • Trade shows are excellent for maintaining
    awareness of the product with the primary buyers.

50
Trade shows are expensive
  • Average annual trade show budget in 2001
    777,730
  • Average pay for exhibit managers was 60k for
    males and 48k for females

51
Mktg dollars in B2B
Telemktg
PR
Direct mail 9
Field sales 47
Trade ads 12
Trade shows 14
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