sales/marketing strategy for the startups
TRANSCRIPT
Sales StrategyPRAVEEN
1
2
Organizational Strategy Levels
Strategy Level Key Decision Areas Key Decision Makers
Corporate Strategy Corporate MissionSBU DefinitionSBU ObjectivesCorporate Growth Orientation
Corporate Management
Business Strategy Strategy TypesStrategy Execution
SBU Management
Marketing Strategy Target Market SelectionMarketing Mix DevelopmentIntegrated Mkt Communications
Marketing Management
Sales Strategy Account Targeting StrategyRelationship StrategySales Channel Strategy
Sales Management
SBU Objectives and the Sales Organization
3
Salary plus bonusCall on and service most profitable accounts only and eliminate unprofitable accountsReduce inventories
Reduce selling costsTarget profitable accounts
Harvest
Salary plus commission or bonus
Call on targeted current accountsIncrease service levels to current accounts
Maintain sales volume Consolidate market position
Hold
Salary plus incentiveCall on prospective and new accountsProduct/market feedback
Build sales volumeSecure distribution
Build
Recommended Compensation
SystemPrimary Sales TasksSales Organization
ObjectivesMarket Share
Objectives
Developing Growth Strategies
4
1. Market Penetration
2. Market Development
3. Product Development
4. Diversification
ExistingMarkets
NewMarkets
ExistingProducts
NewProducts
Product/ Market Expansion Grid
Product/ Market Expansion Grid Market Penetration: making more sales to current customers without changing our products
Market Development: develop new markets for our current products
◦ Identify new demographic or geographic markets.
Product Development: offering modified or new products to current markets
◦ New Features, flavors, or modified products.
Diversification: new products for new markets◦ Start up or buy new businesses.
5
Porter’s Generic Business Strategies(Competitive Advantage)◦ Low Cost - focus on low cost◦ Differentiation - focus on uniqueness◦ Niche - focus on a particular target market and use a low cost or
differentiation approach
Role of the Salesforce◦ Low Cost - sell to large customers; minimize costs; focus on price;
order taking role◦ Differentiation - sell non-price benefits; high customer service and
responsiveness; target low price sensitive customers; order generator
◦ Niche - low cost or differentiation approach6
Business Strategy and the Sales FunctionBusiness Strategy Types
Personal Selling-Driven vs. Advertising-Driven
7Advertising
Personal SellingWhen Message Flexibility is ImportantWhen Message Timing is ImportantWhen Reaction Speed is ImportantWhen Message Credibility is ImportantWhen Trying to Close the Sale
When Low Cost per Contact is ImportantWhen Repetitive Contact is ImportantWhen Control of Message is ImportantWhen Audience is Large
Sales Management Planning
a) Involves setting objectives and determining ways to achieve them.
b) Sales planning is very crucial when introducing new products. Close cooperation between sales and production management is crucial to the successful launching of innovative products.
c) Strategic plan outlines how resources will be allocated to market opportunities.
8
Planning Hierarchy
Corporate mission
Strategic business plan (long-term plan for the overall resource allocation to market, which includes marketing, finance, HR, operations, production).
Strategic marketing plan (long term plan for specific products and markets).
Strategic sales plan (long range plan for sales activities).
Tactical Sales Plans (short run plan for implementing sales strategy).
9
Information for Sales Planning
Primary Data – new data gathered specifically for the project in hand
Secondary Data – available data also gathered for some other purpose
Other sources of information (e.g. MIS(marketing info sys),DSS(Decision support sys))
Sales Intelligence
10
Sales Intelligence
Sales people are expected to provide information for sales planning and management and there is growing need for better sales intelligence from the field.
Sales people possess vital information about the market that can be used to develop sales forecasts and quotas, to assess new products, and to formulate marketing strategies.
Salespeople should be encouraged/motivated by the management; they should be provided with incentives, training, and proper supervision to encourage them to provide relevant information.
11
Contd..
Sales managers must also make sure that the marketing intelligence process is a two-way communication. Once the data has been analyzed, it is essential that relevant facts are communicated back to the field force in order to improve their selling efficiency.
Although the sales person has thorough knowledge about the market, his opinion may be biased or incomplete knowledge.
For this reason sales manager must work with other staff specialists to develop a procedure for incorporating information from the field into the marketing planning process. For such reasons other sources are also used, like:
12
1. Secondary data (which provides insight about the market conditions and competitors)
2. Internal sales data (which allows managers to trace the histories of individual accounts, products, territories, and seasons)
3. Product life cycle patterns
4. Fluctuations, growth and decline of specific customers or customer groups (This information can be used to detect changes into different areas and at different times throughout the year)
5. marketing research team
13
Sales Management Planning Process
1. Analysis – examines what happens in the past, look at the present situation, SWOT analysis, trend analysis.
2. Goal setting phase – set the direction for the sales force
3. Sales strategies – translate the goals into action
4. Tactical plans – more specific action plans, specific detailed outlines, assignment of responsibilities /deadlines
5. Implementation stage – plan is executed here
6. Control stage – serves to compare actual outcomes with planned results, in order to examine any plan revisions for the future.
14
15
Any Inputs?
16
Thank You