Chapter 1 The Changing World of Sales Management4
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(SBUs)
A single product or brand, a line of products, or a mix of related products that meets a common market need or a group of related needs, and the unit's management is responsible for all (or most) of the basic business functions (Cravens 1991).”
Too few SBUs makes it difficult to support each product or line of products.
Too many SBUs creates expensive duplication within the corporation.
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MARKET SHARE
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(Exhibit 4.2)
Divest/Liquidate
Salary plus bonus
Call on and service most profitable accounts only and eliminate unprofitable accounts
Reduce service levels
Increase service levels to current accounts
Maintain sales volume
Secure additional outlets
Provide high service levels particularly pre-sale service
Product/market feedback
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(Compaq Computer Example)
and investing in companies
with promising new products
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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 - could go either low cost or differentiation approach
Business Strategy and the Sales Function
Business Strategy Types
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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
COST
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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
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Target Market Situations and Personal 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
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Original Equipment Manufacturers (OEM)
products
Resellers
Government Organizations
Agencies
Institutions
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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
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Control Cost in Product Use Situation
Seek Personal Pleasure
Adequate Supply of Products
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Sales Strategy
Account-Targeting Strategy
The classification of accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account or account group.
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Sales Strategy
Relationship Strategy
A determination of the type of relationship to be developed with different account groups.
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Sales Channel Strategy
Ensuring that accounts receive selling effort coverage in an effective and efficient manner.
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Sell complimentary products from non-competing manufacturers
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Multilevel Selling
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Selling Firm
Buying Firm
Sales Team
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Typically industry-sponsored events where companies utilize a booth to display product and services to potential and existing customers.
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