PART II –PLANNING THE SALES TEAM’S EFFORTS

Chapter 3 - BUILDING RELATIONSHIPS THROUGH STRATEGIC

PLANNING

LEARNING OBJECTIVES - Strategic planning helps an organization build long-term

relationships with its customers. This chapter will help you better understand:
 The importance of corporate strategy.
 How strategic planning differs from tactical operational planning.
 The relationship between marketing and sales force strategies.
 The role of personal selling in the firm’s marketing relationship efforts.
 Work with Comprehensive Case 1 – Zenith Terminals to discuss how creating
S.M.A.R.T. objectives in a short range business plan are critical in the
development of long strategic plans (pages 441-43). Each of you will be asked to
create a set within one of the departments from this case. Details will be
discussed in class.

1. IMPORTANCE OF CORPORATE PLANNING –Xerox Vignette – look at the
vignette and then using the link to Xerox (Websites on Blackboard read the brief
overview under the heading “About Xerox”, and then peruse the site to look at
strategies Xerox employs to market their products. Can you find anything that
demonstrates how they use cross-selling described in the vignette (look under Xerox
Partners on their home page)?
a. STRATEGIC PLANNING –What strategies can you find? any?
 Strategic planning involves making decisions about the organization’s long-
term goals and strategies.
 Strategic goals are major targets or end results that relate to the long-term
survival, value, and growth of the organization.
 Strategy is a pattern of actions and resource allocations designed to
achieve the goals of the organization.

2. TACTICAL AND OPERATIONAL PLANNING
a. Tactical planning translates broad strategic goals and plans into specific goals and
plans relevant to a definite portion of the organization.
b. Tactic is the operational means by which an organization intends to reach its
objective.
c. Operational planning identifies the specific procedures and processes required at
lower levels of the organization.
3. ESTABLISHING A MISSION AND VISION –Click on link to Kodak website (look
at the statement on page 53 – what has changed? if there is a difference, is the
statement better? stronger?
a. Mission is the basic purpose and values of the organization, as well as its scope of
operations. Can you find Xerox’s mission – you will need to know it for exam 1.
Discuss it in your group.
b. Strategic vision provides a perspective on where the company is headed and what
the organization can become.
c. Strategic plan is the company’s mission, values, objectives, strategies and tactics
  Where are we?
 Where do we want to be?
 How should we get there?
 Can we afford it?
4. WHAT IS MARKETING? - Marketing is defined as the process of planning and
executing the conception, pricing, promotion, and distribution of goods, services, and
ideas to create exchanges that satisfy individual and organizational objectives.
a. Businesses have two major functions:
 Production of goods or creation of services.
 Marketing those goods and services.
b. Marketing people typically have these four basic objectives to accomplish:
 Maximize sales of existing products in existing markets.
 Develop and sell new products.
 Develop new markets for existing or new products.
 Provide the quality of service necessary for customers to be satisfied with
their transactions and to continue doing business with the organization.
c. MARKETING’S IMPORTANCE TO THE FIRM
 Marketing generates sales.
 Marketing provides quality service
d. ESSENTIALS OF A FIRM’S MARKETING EFFORT - The essentials of a firm’s
marketing effort include its abilities:
 to determine the needs of its customers
 to create and maintain an effective marketing mix that satisfies customer
needs.
e. Marketing mix consists of four main elements:
 Product - refers to both goods and services.
1. A good is a physical object that can be purchased.
2. Service is an action or activity done for others for a fee.
 Price - refers to the value or worth of a product that attracts the buyer to
exchange money or something of value for it.
 Distribution (or place) - refers to the channel structure used to transfer
products from an organization to its customers.
 Promotion - increases company sales by communicating product information
to potential customers.
1. Four basic parts of a promotional effort:
a. Personal Selling - Personal communication of information to persuade
a prospective customer to buy something – a good, service, idea, or
whatever – that satisfies an individual’s needs.
b. Advertising - Nonpersonal communication of information paid for by
an identified sponsor such as an individual or an organization. Modes
of advertising include television, radio, direct mail, catalogs,
newspapers, and outdoor advertising such as billboards.
c. Publicity - Nonpersonal communication of information that is not paid
for by an individual or organization. Information appears in media
such as television, radio, and newspaper.
 d. Sales Promotion - Involves activities or materials used to create sales
for goods or services. The two types of sales promotion are consumer
and trade sales promotion. Consumer sales promotion includes free
samples, coupons, contests, and demonstrations to consumers. Trade
sales promotion encourages wholesalers and retailers to purchase and
to sell aggressively using devices such as sales contests, displays,
special purchase prices, and free merchandise.
 The goal of a marketing mix - The organization’s marketing group strives to
create a marketing mix for the right product, at the right price, at the right
time, and with the right promotional effort.
1. Look at Table 3.2 (page 61). I will assign a product from Xerox or Kodak
to each group. Which aspects of this marketing mix do you see being
applied with this product (list them for your group? When you see the
name Xerox or Kodak what comes to mind with regard to Quality Level?
If you wished to purchase that unit for home or your business, what aspect
of purchasing and price is eliminated or reduced via the internet?
f. RELATIONSHIP MARKETING - Relationship marketing is the creation of
customer loyalty.
 LEVELS OF RELATIONSHIP MARKETING
1. Transaction selling: Customers are sold to and not contacted again.
2. Relationship selling: The seller contacts customers after the purchase to
determine if they are satisfied and have future needs.
3. Partnering: The seller works continually to improve its customers’
operations, sales, and profits (revisit the definition of marketing and note
that .the phrase satisfy individual and organizational objectives is bolded
why?
g. TECHNOLOGY BUILDS RELATIONSHIPS AND PARTNERS
 Most dramatic force shaping an organization’s marketing efforts today.
 Helps salespeople increase the speed with which they can find leads, gather
information, reduce paperwork, and provide service.
 Technology is expensive.
1. RELATIONSHIP MARKETING AND THE SALES FORCE – looking
back on table 3.2, would personal selling be an important element within
the marketing mix to help either company generate sales?
2. These four basic questions are guidelines that define the role of the sales
force (How do you think Xerox or Kodak answer the following questions):
 How much selling effort is necessary to gain and hold customers?
 Is the sales force the best marketing tool, compared to advertising and
other sales promotion methods, in terms of cost and results?
 What type of sales activities – for example, technical assistance and
frequent or infrequent sales calls – will be necessary?
 Can the firm gain strength relative to its competition with its sales
force?
h. PERSONAL SELLING BUILDS RELATIONSHIPS
 Salespeople generate revenue.
 Salespeople provide service.
  Service quality is a subjective assessment that customers arrive at by
evaluating the service level that they perceive being delivered.
 Salespeople implement relationship marketing.
i. STRATEGIC PLANNING AND THE SALES MANAGEMENT PROCESS
 PLANNING A SALES STRATEGY
 THE DEVELOPMENT OF SALES STRATEGIES
1. A clear picture of the present situation.
2. Well-defined strategies covering every major aspect of the
selling units or departments.
3. Income and expense budgets and profit plan.
In addition, a sales strategic plan includes the following four major questions:
4. What is the sales department’s present condition?
5. What trends are apparent?
6. What are the most important objectives?
7. What are the strategies for getting these objectives
accomplished?
2. THE BOTTOM LINE
a. Strategic planning involves making decisions about an organization’s long-term
goals and strategies.
b. Most people today associate marketing with selling.
c. This marketing concept evolved over the years, developing as American
businesses matured.
d. The marketing mix consists of four variables: product, price, distribution, and
promotion.
e. Firms must carefully consider the role of the sales force in their promotional
program or promotional aspect of the marketing mix