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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!!
Lewis Carroll
1872
Through the LookingGlass
The Plan
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.
Data
External Situation
Internal Situation
Capabilities and
competencies
1.
Analysis
1.
Strategic assessment
Strategic Issues
6.
1.
1.
2.
3.
Direction
Strategies
Commitment
Mission Statement
Goals
Objectives
Implementation
Action Plans
Budgets
Schedules
Ideas
Assumptions
Monitor Developments
and
Progress
Execution
Marketing Information
Key
Account Strategy
Target
Account Strategy
Maintenance
Account Strategy
Why Bother
Account Strategy
Strategic
Territory Plans
Action Plans
Tactical
P
O
S
I
T
I
O
N
I
N
G
Which segments /
customers will we
concentrate on ?
CUSTOMER
TARGETS
Whom will we
challenge for these
customers?
COMPETITOR
TARGETS
CORE
STRATEGY
Strong
High
ACCOUNT
ATTRACTIVENESS
Size
Growth
Profitability
Location
Purchasing criteria
and processes
Current suppliers
Status of customer
(prestige)
Low
Invest / Grow
Selectively
Invest
Maintain
Manage for
Cash /
Withdraw
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
Account
Opportunity
Low
Weak
Strength of Position
Strong
KEY
TARGET
Attractiveness:
Accounts are very attractive since they
offer high opportunity and sales
organization has strong position.
Attractiveness:
Accounts are potentially attractive
since they offer high opportunity, but
sales organization currently has weak
position with accounts.
MAINTENANCE
WHY BOTHER
Attractiveness:
Accounts are somewhat attractive since
sales organization has strong position,
but future opportunity is limited.
Attractiveness:
Accounts are very unattractive since
they offer low opportunity and sales
organization has weak position.
KEY ACCOUNTS
TARGET ACCOUNTS
ACCOUNT ATTRACTIVENESS
MAINTENANCE ACCOUNTS
Low
Strong
Weak
Strong
KEY
Sales Channel:
Selling Effort:
Heavy
MAINTENANCE
WHY BOTHER
Sales Channel:
Inside Sales
Field Selling and
Teleselling
Selling Effort:
Moderate
Selling Effort:
Low
Weak
ACCOUNT
OPPORTUNITY
Selling Effort:
Heavy by Specialist
TARGET
Strong
COMPETITIVE POSITION
Weak
Changing Business
Environment
The
Selling
Ballgame
Leads to
Changing Selling
Environment
Resulting in
Harder to Get and
Hold Customers and
It Costs More!
Implications
Better Understanding of
Customers Needs
Better Selectivity
PRIORITIES
Time Management
25
227
Acct.
Service/
Coordinatio
Administratio
n
n
13%
16%
Travel
17%
2001
Face-to-Face
Selling
29%
Phone
Selling
25%
HOW
SALESPEOPLE
SPEND THEIR
TIME
Acct. Service/
Coordination
11%
Administratio
n
16%
Travel
18%
2000
Face-to-Face
Selling
30%
Phone
Selling
25%
Customer Orientation
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.
Regulatory agencies
Environmental
Global competition
Mergers/acquisitions
Automation/technology
Price
Quality
Down sizing
Reengineering
Out-sourcing
EDI
Vendor reduction
Single source
product breadth
product depth
EDI
Vendor reduction
IV.
Willingness to change
Different organizational structure, e.g., Hunters and
Farmers
New skills
Sales force automation
Accountability / evaluation / compensation
More specialized sellers requiredcurrently generalists
Total company will become a selling teamcultural
change
Shift paradigm from products to integrated solution
systems
More research at the account level
Sharing of customer information
V.
Change Areas
Understanding
II
III
IV
Any business is
good!
All Business
is good!
What business
is good?
Certain business
is good!
One product
One market
One product
One big market
Old/new
products many
markets
Redefine
customer
segment selling
Sell to
survive
Sell volume to
lower costs
Sell volume to
hold share
Optimize to get
best returns
Start-up
Volume
growth
Market share
Optimization
THE
PURPOSE
SALES FORCE TIME & EFFORT
Customer Resource Allocation
Decisions
Activity Resource
Allocation Decisions
Relationship expert
vs. product expert vs.
industry expert vs.
customer expert
volume
Differentiated vs.
nondifferentiated
Highly competitive vs.
noncompetitive
SELLING PROCESSES
EVOLUTION OF
BUYING PROCESS
Planning
1
Recognizing Searching
2
3
Evaluating
4
Selecting
5
VENDOR
Present-Handle Objections-Close
SUPPLIER
Searching through implementing
Where
Sellers
Focus
Efforts
Communication
Selling
Organization
Communication
REP
Buying
Organization
Marketing Strategy
Procurement Strategy
policies
procedures
programs
policies
procedures
programs
Relationship Creation
TYPICAL
PROCESS
Recognition
of Needs
Help
customers
recognize
and define
problems
and needs
in a new or
different
way.
Evaluation
of Options
Show
superior
solutions,
options, and
approaches
that
customers
may not have
understood
or
considered.
Resolution
of Concerns
Purchase
Help
customers
overcome
and remove
obstacles to
acquisition.
Make
purchase
painless,
convenient,
and hasslefree.
Implementstation
Show
customers
how to install
and use
product.
Evaluation
of Options
Resolution
of Concerns
Customer
has already
defined
needs and
problems
completely.
Customer
already
understands
alternative
solutions.
Customer
has few
issues or
concerns.
Little or no
opportunity
to create
sales value.
Little or no
opportunity
to create
sales value.
Little or no
opportunity
to create
sales value.
Purchase
Seller can
help make
purchase
painless,
convenient,
and hasslefree.
Little or no
opportunity
to create
sales value.
Implementstation
Customer
generally
knows
how to use
product.
Seller can
create most
value early
in the
process by
helping
customers
define
needs and
solutions.
Evaluation
of Options
Resolution
of Concerns
Consultative
seller can
design
customized
solutions
and help
customers
make
informed
choices.
Consultative
seller can
counsel
customers
and help
resolve
concerns.
Purchase
Implement
-tation
Consultative
seller can
advise and
problem
solve
implementati
on issues.
KEY ACCOUNT
SALESPEOPLE
5%
Needs Analysis
50%
10%
Problem Solving
30%
35%
F/B. Presentation
15%
50%
Trying to Close
5%
Tactical Purchasing
Strategic Sourcing
Regional Focus
Global Focus
Strategic Partners
Commodity Purchases
Technology Investments
Product Focus
Solution Focus
Buying Parts
Managing Processes
Price Focus
Research Findings
Managing Information
Orchestrating Resources
FUTURE
Strategic
Selling
World Class
Work Processes
Systems
Transactional
Selling
Information Flow
Transactional
Selling
Bottom Line
A business can no longer rely
on the uniqueness of their
products to retain customers
or grow new sales revenue.
60%
PROFITS
G.M. =
C.O.S. =
G.M.
C.O.S.
Gross Margin Dollars
Cost of Sale in Dollars
Implications
1.
Less discounting.
2.
3.
Selling more product lines to each customer
(cross-setting).
4.
Being more selective and discriminating in
qualifying potential buyers.
5.
Clear priorities in
terms of:
Markets
Customers
Products
Activities
And clear
strategy
To drive the
allocation of
2nd
Efficiency
Managing the
allocation of sales
resources to:
Markets
Customers
Products
Activities
Measure the
"return on
investment"
Productivity
PRODUCTIVITY
EFFICIENCY
EFFECTIVENESS
Number of doors
opened
What is done
once in door
SUMMARY
Sales Efficiency
Sales Effectiveness
Defined
Getting in front of
customer at minimum
cost
Mechanisms
for improving
Working harder:
time management
incentives
call reports
territory design
Working smarter:
coaching
skills training
account strategies
Measures
penetration
call rates
cost / call
success rates
repeat business
sustainable margins