Chapter 03 Planning Sales Team Efforts

PART II
PLANNING THE SALES

TEAMS EFFORTS
Copyright 2001 by Harcourt, Inc. All rights reserved.
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 firms marketing
relationship efforts.
IMPORTANCE OF CORPORATE
PLANNING
STRATEGIC PLANNING
Strategic planning involves making
decisions about the organizations 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.
STRATEGIC PLANNING
Continued
Strategy is a pattern of actions and resource

allocations designed to achieve the goals of
the organization.
TACTICAL AND OPERATIONAL PLANNING

Tactical planning translates broad strategic
goals and plans into specific goals and plans
relevant to a definite portion of the
organization.
Tactic is the operational means by which an
organization intends to reach its objective.
Operational planning identifies the specific
procedures and processes required at lower
levels of the organization.
ESTABLISHING A MISSION AND VISION

Mission is the basic purpose and values of
the organization, as well as its scope of
operations.
Strategic vision provides a perspective on
where the company is headed and what the
organization can become.
Strategic plan is the companys mission,
values, objectives, strategies and tactics.
Four key questions:

1. Where are we?
2. Where do we want to be?
3. How should we get there?
4. Can we afford it?
FIGURE 3.1 KODAKS VISION, MISSION, AND VALUES
VISION
Our heritage has been and our future is to be
the World Leader in Imaging.
MISSION
Build a world-class, results-oriented culture
by providingsolutions to capture, store, process, output,
and communicateimages to people and machines
anywhere, anytime...bringing differentiated, cost-effective
solutionsto the marketplace and with
flawless qualitythrough a diverse team of energetic
employees with the world-class talent and skills
necessary to sustain Kodak as the World Leader in Imaging.
In this way, we will achieve our
fundamental objective of Total Customer Satisfaction,
and our consequent goals of Increased Global
Market Share and Superior Financial Performance.
VALUES
(1) Respect for the Dignity of the Individual
(2) Integrity (3) Trust (4) Credibility
(5) Continuous Improvement and Personal Renewal
Source: Kodaks 1999 annual report.
FIGURE 3.2 RELATIONSHIP BETWEEN THE ORGANIZATIONS STRATEGIC

PLAN AND OPERATIONAL PLANS
O r g a n iz a t i o n s S t r a t e g i c P l a n
M is s io n
O b j e c t iv e s
S tr a te g ie s
P o r t f o li o p l a n
O p e r a tio n a l P la n s
P r o d u c tio n P la n
M a r k e tin g P la n
O b j e c t iv e s
F o rec ast
B u d g e ts
S tra te g ie s a n d
O b j e c t iv e s
F o re c ast
B u d g e ts
S tr a te g ie s a n d
P o l i c ie s
P o l i c ie s
H u m an R eso u rc es
P la n
O b j e c t iv e s
F o rec ast
B u d g ets
p ro g ram s
P o l i c ie s
F i n a n c i a l P la n
O b j e c t iv e s
F o rec ast
B u d g e ts
p ro g ram s
P o l i c ie s
WHAT IS MARKETING?
Businesses have two major functions:
Production of goods or creation of services.
Marketing those goods and services.
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.
FIGURE 3.3 THE MARKETING GROUP THE LINK BETWEEN

CUSTOMERS AND THE ORGANIZATION
Top Management
Functional Departments
M a r k e tin g
P r o d u c tio n
H u m an
R e so u rc e s
Salespeople
Customers Manufacturers Service Wholesalers Retailers Consumers

Marketing people typically have these four

basic objectives to accomplish:
1. Maximize sales of existing products in
existing markets.
2. Develop and sell new products.
3. Develop new markets for existing or new
products.
4. Provide the quality of service necessary for
customers to be satisfied with their
transactions and to continue doing business
with the organization.
MARKETINGS IMPORTANCE
TO THE FIRM
Marketing generates sales.
Marketing provides quality service.
ESSENTIALS OF A FIRMS
MARKETING EFFORT
The essentials of a firms marketing effort
include its abilities (1) to determine the
needs of its customers and (2) to create
and maintain an effective marketing mix
that satisfies customer needs.
Marketing mix consists of four main

elements:
Product
Price
Distribution or place
Promotion.
PRODUCT: ITS MORE THAN YOU MIGHT

THINK
A good is a physical object that can be
purchased.
Service is an action or activity done for
others for a fee.
Product refers to both goods and services.
FIGURE 3.4 FOUR MARKETING-MIX ELEMENTS AND FOUR

PROMOTION ACTIVITIES
M a r k etin g M ix
Product
P er s o n a l S el li n g
Price
A d v er t i s i n g
Place
Promotion
S a les P r o m o ti o n
P u b li ci ty
FIGURE 3.5 A GOOD/SERVICE CONTINUUM
R e la t iv e ly
P u re
G oods
S a lt
Soup
S e r v ic e I n te n s iv e
G oods
A u t o m o b ile s
H y b r id s
R e st a u r a n t s
G o o d sI n t e n s iv e
S e r v ic e s
A ir tra v e l
R e la t iv e ly
P u re
S e r v ic e s
B a b y - s i t t in g
I n su ra n c e
T e a c h in g
SERVICES ARE PRODUCTS

They present their own selling challenges
and opportunities:
Intangibility customers cannot sample.
Inseparability cannot be separated from the
seller.
Heterogeneity cannot standardize output.
Perishability and fluctuating demand
highly perishable, seasonal fluctuations.
A tough sell most challenging sales job.

M a r k etin g M ix
Product
Price
Place
Promotion
P u b li ci ty
PRICE: ITS IMPORTANT TO SUCCESS

Price refers to the value or worth of a product
that attracts the buyer to exchange money or
something of value for it.

M a r k etin g M ix
Product
Price
Place
Promotion
P u b li ci ty
DISTRIBUTION: IT HAS TO BE
AVAILABLE
Distribution (or place) refers to the channel
structure used to transfer products from an
organization to its customers.
There are three groups of customers:

Household decision-making unit buying
for personal use.
Firm an organization that produces goods
and services.
Government an organization that has two
functions: the provision of goods and
services to households and firms and the
redistribution of income and wealth.

M a r k etin g M ix
Product
Price
Place
Promotion
P u b li ci ty
PROMOTION: PEOPLE HAVE TO BE TOLD

Promotion, as part of the marketing mix,
increases company sales by communicating
product information to potential customers.
Four basic parts of a promotional

effort:
1. Personal Selling
2. Advertising
3. Publicity
4. Sales Promotion
TABLE 3.1 PROMOTIONAL ACTIVITIES
Personal selling. Personal communication of information to persuade a

prospective customer to buy something a good, service, idea, or whatever
that satisfies an individuals needs.
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.
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.
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.
FIGURE 3.6 TYPICAL DISTRIBUTION CHANNELS FOR CONSUMER

AND INDUSTRIAL PRODUCTS
C o n su m e r P ro d u c ts
M a n u fa c tu re r
H o u se h o ld C o n su m e r
R e ta ile r
W h o le sa le r
R e ta ile r
M a n u fa c t u r e r
I n d u s tria l P r o d u c ts
I n d u st r ia l U se r
W h o le sa le r
I n d u st r ia l U se r
TABLE 3.2 EXAMPLES OF EACH MARKETING-MIX

ELEMENT
PRODUCT
PRICE
PLACE
PROMOTION
Brand name
Credit term
Channels
Advertising
Features
Discounts
Inventory
Coupons
Image
List price
Locations
Free samples
Packaging
Promotional allowances
Retailers
Personal selling
Quality level
Transportation
Product displays
Returns
Wholesalers
Publicity
Services
Sales management
Sizes
Trade shows
Warranties
THE GOAL OF A MARKETING MIX

The organizations 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.
RELATIONSHIP MARKETING
Relationship marketing is the creation of
customer loyalty.
LEVELS OF RELATIONSHIP MARKETING

Transaction selling: Customers are sold to and not
contacted again.
Relationship selling: The seller contacts
customers after the purchase to determine if they
are satisfied and have future needs.
Partnering: The seller works continually to
improve its customers operations, sales, and
profits.
TECHNOLOGY BUILDS
RELATIONSHIPS AND PARTNERS
Most dramatic force shaping an
organizations marketing efforts today.
Helps salespeople increase the speed with
which they can find leads, gather
information, reduce paperwork, and
provide service.
Technology is expensive.
RELATIONSHIP MARKETING
AND THE SALES FORCE
These four basic questions are guidelines that define the role of
the sales force:
1. How much selling effort is necessary to gain and hold
customers?
2. Is the sales force the best marketing tool, compared to
advertising and other sales promotion methods, in terms
of cost and results?
3. What type of sales activities for example, technical
assistance and frequent or infrequent sales calls will
be necessary?
4. Can the firm gain strength relative to its competition
with its sales force?
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.
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.
A sales strategic plan includes the following four

major questions:
1. What is the sales departments present condition?
2. What trends are apparent?
3. What are the most important objectives?
4. What are the strategies for getting these
objectives accomplished?
SETTING NEXT YEARS SALES PLAN

The sales force may have objectives measured on
the basis of the following:
Contribution to profits.
Return on assets (ROA) managed by the sales
force.
Sales/cost ratio.
Market share.
SALES OBJECTIVES DIRECT OTHER

ACTIVITIES
FIGURE 3.8 THE STRATEGIC SALES FORCE PLANNING PROCESS
S a l es F o r ce O b j ect i v es
D e fi n e R o l e s, A ct i v i t i es ,
a n d M a r k e t s o f S a l e s F o r ce
S t a ff i n g
E sta b lish O r ga n iz a tio n a l

D e s i g n a n d S t r u ct u r e
T ra in in g
S a l es A n a l y s i s a n d
E v a lu a tio n o f S a les P er so n n el
D i r ect i n g
THE BOTTOM LINE

Strategic planning involves making decisions about an
organizations long-term goals and strategies.
Most people today associate marketing with selling.
This marketing concept evolved over the years, developing as
American businesses matured.
The marketing mix consists of four variables: product, price,
distribution, and promotion.
Firms must carefully consider the role of the sales force in their
promotional program or promotional aspect of the marketing
mix.

Chapter 03 Planning Sales Team Efforts

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PART II

PLANNING THE SALES

Copyright 2001 by Harcourt, Inc. All rights reserved.

Copyright 2001 by Harcourt, Inc. All rights reserved.

Strategic goals are major targets or end

Strategy is a pattern of actions and resource

Copyright 2001 by Harcourt, Inc. All rights reserved.

TACTICAL AND OPERATIONAL PLANNING

ESTABLISHING A MISSION AND VISION

Four key questions:

Copyright 2001 by Harcourt, Inc. All rights reserved.

FIGURE 3.1 KODAKS VISION, MISSION, AND VALUES

FIGURE 3.2 RELATIONSHIP BETWEEN THE ORGANIZATIONS STRATEGIC

Copyright 2001 by Harcourt, Inc. All rights reserved.

Copyright 2001 by Harcourt, Inc. All rights reserved.

Marketing is defined as the process of

Copyright 2001 by Harcourt, Inc. All rights reserved.

FIGURE 3.3 THE MARKETING GROUP THE LINK BETWEEN

Customers Manufacturers Service Wholesalers Retailers Consumers

Marketing people typically have these four

Copyright 2001 by Harcourt, Inc. All rights reserved.

Copyright 2001 by Harcourt, Inc. All rights reserved.

Marketing mix consists of four main

Copyright 2001 by Harcourt, Inc. All rights reserved.

PRODUCT: ITS MORE THAN YOU MIGHT

FIGURE 3.4 FOUR MARKETING-MIX ELEMENTS AND FOUR

Copyright 2001 by Harcourt, Inc. All rights reserved.

FIGURE 3.5 A GOOD/SERVICE CONTINUUM

Copyright 2001 by Harcourt, Inc. All rights reserved.

SERVICES ARE PRODUCTS

FIGURE 3.4 FOUR MARKETING-MIX ELEMENTS AND FOUR

Copyright 2001 by Harcourt, Inc. All rights reserved.

PRICE: ITS IMPORTANT TO SUCCESS

Copyright 2001 by Harcourt, Inc. All rights reserved.

FIGURE 3.4 FOUR MARKETING-MIX ELEMENTS AND FOUR

Copyright 2001 by Harcourt, Inc. All rights reserved.

Copyright 2001 by Harcourt, Inc. All rights reserved.

There are three groups of customers:

FIGURE 3.4 FOUR MARKETING-MIX ELEMENTS AND FOUR

Copyright 2001 by Harcourt, Inc. All rights reserved.

PROMOTION: PEOPLE HAVE TO BE TOLD

Copyright 2001 by Harcourt, Inc. All rights reserved.

Four basic parts of a promotional

Copyright 2001 by Harcourt, Inc. All rights reserved.

TABLE 3.1 PROMOTIONAL ACTIVITIES

Personal selling. Personal communication of information to persuade a

Publicity. Nonpersonal communication of information that is not paid for by an

Copyright 2001 by Harcourt, Inc. All rights reserved.

FIGURE 3.6 TYPICAL DISTRIBUTION CHANNELS FOR CONSUMER

Copyright 2001 by Harcourt, Inc. All rights reserved.

TABLE 3.2 EXAMPLES OF EACH MARKETING-MIX

Copyright 2001 by Harcourt, Inc. All rights reserved.

THE GOAL OF A MARKETING MIX

Copyright 2001 by Harcourt, Inc. All rights reserved.

Copyright 2001 by Harcourt, Inc. All rights reserved.

LEVELS OF RELATIONSHIP MARKETING

PERSONAL SELLING BUILDS RELATIONSHIPS

Copyright 2001 by Harcourt, Inc. All rights reserved.

STRATEGIC PLANNING AND THE

A sales strategic plan includes the following four

Copyright 2001 by Harcourt, Inc. All rights reserved.

SETTING NEXT YEARS SALES PLAN