13. Sales Force, Internet and Direct Marketing

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CRAVENSCRAVENS

PIERCYPIERCY

8/e8/eMcGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc., All


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Chapter Thirteen

Sales Force,Internet, and

Direct MarketingStrategies

McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc., All


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Sales Force

Strategy Internet Strategy

Direct Marketing

Strategies

SALES FORCE,

INTERNET, AND DIRECTMARKETINGSTRATEGIES


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OFFICE DEPOTSS!CCESSF!L INTERNET

STRATEG"Using a seamless network, Web operations are integrated into Ofce Depots existingbusinesses.

An easy-to-use electronic link is proidedbetween t!e online store and internal networks.

"urc!asing aut!ori#ations and limits areincorporated

into t!e system.

$ase o% use rat!er t!an tec!nology is t!e keypriority %or improing t!e online network.

&onuses are o'ered to salespeople to encouracorporate customers to use online ordering.

(ales applicants are tested concerning )nterne%amiliarity, and in%ormed o% t!e importance o%

Ofce

Depots online initiaties during t!e !iringprocess.

(ource0 1!arles 2addad, 3Ofce Depots $-Dia,4 &usiness Week e.bi#, August 5, +,$&-$&6.


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A co#$anys sales %orce

strategy&eter#ines 'o(

t'e organi)ation (ill *se

t'e $ersonal selling

%*nction to #aintain

contact (it' c*sto#ers an&

&e+elo$ t'e relations'i$s

t'at #anage#ent (ants in

or&er to ac'ie+e #arketing

an& $ro#otion o-ecti+es.

DESIGNING ANDIMPLEMENTING SALES

FORCE STRATEG"


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Sales Force Strategy

Determine t!e

role o% t!e sales%orce inpromotionstrategy

De/ne t!e sellingprocess 7!ow selling

will be accomplis!ed8

Decide i% and !owalternatie sales c!annels

will be utili#ed

Design t!e salesorgani#ation

9ecruit, train, and managesalespeople

$aluate per%ormanceand make ad:ustments

w!ere necessary


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C'allenges in Sellingan& Sales

Manage#entwo sets o% et!ical dilemmas are o% particularconcern to sales managers. !e /rst set isembedded in t!e managers dealings wit! t!esalespeople. $t!ical issues inoled inrelations!ips between a sales manager and t!e

sales %orce include suc! t!ings as %airness ande;ual treatment o% all social groups in !iring anpromotion, respect %or t!e indiidual insuperisory practices and training programs,and %airness and integrity in t!e design o% salesterritories, assignment o% ;uotas, and

determination o% compensation and incentierewards. $t!ical issues perade nearly allaspects o% sales %orce management.

!e second set o% et!ical issues arises %rom t!e

interactions between salespeople and t!eircustomers. !ese issues only indirectly inolet!e sales manager because t!e manager cannoalways directly obsere or control t!e actions oeery member o% t!e sales %orce. &ut manager!ae a responsibility to establis! standards o%

et!ical be!aior %or t!eir subordinates,communicate t!em clearly, and en%orce t!em(ource0 reg W.


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/*siness an&Marketing Strategy

In0*ences on SalesStrategy

SALESSTRATEG"

/*siness

Strategy

MarketTarget1s2Strategy

Pro#otion

Strategy

Distri*tionStrategy

PricingStrateg

y

Pro&*ctStrategy


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/l*rring o%in&*stry

o*n&aries Tec'nologyA&+ances

Mergersan&

ac3*isitins

Marketing$ro&*cti+ity

crisis

Escalatingc*sto#er

e4$ectationsIntensegloal

co#$etitin

SALES FORCEC5ALLENGES


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Range o% PersonalSelling Roles

TransactionalSelling

Feat*re6/ene7t Selling

Sol*tionSelling

8al*e9A&&e&Selling


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DEFINING T5ESELLING PROCESS

Fin&ing Pros$ects

O$ening t'e

Relations'i$

:*ali%ying t'ePros$ect

Presenting t'eSales Message

Closing t'eSale

Ser+icingt'e Acco*n

(ource0 reg W.


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As radical change sweeps through

todays marketplace, managers facedaunting questions about just how to

adapt. Most of those questions focus

on the structure and deployment ofsales forces: What is the right mi of

outside salespeople, inside reps,

independent reps, brokers,

telemarketers, and support staff! Are

sales reps e"en necessary! #r can

they be replaced by $%% numbers,

catalogs, shopping channels, or the

&nternet!

=ames 1!ampy, 3(trategy (ession,4 (A


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T'e Selling ProcessG*i&es

Recr*iting

Training E;ort Allocation

Organi)ationalDesign

Selling S*$$ort

Acti+ities


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Selecting SalesC'annels to 8al*e

C'ain Me#ers an&En& !sers

Ma-or Acco*ntManage#ent

Fiel& Sales Force

Tele#arketing

Electronic6Mail Contact


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DESIGNING T5E SALESORGANI


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S les Force

Deployment

Size of the Sales Force

Allocation of Selling Effort

Sales person skills and effort

PLUS

Market potential

Number and location ofcustomers

Intensit of competition

Market !brand" position ofthe compan


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+ustomer needsdifferent

roduct- Market

)ri"en design

Market)ri"en

design

(imple

product

offering

+omple

range of

product

roduct

)ri"en design

/eography

)ri"en design

+ustomer needs

similar

Alternati+e Designs


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Selecting n

Org niz tion l

Design

#hat is the selling $ob%

&o' much customer(product

specialization is necessar% )ole of *alue chain !channel"

relationships%

&o' man sales management le*els!hierarch *ersus process"%

#ill sales teams be used%

Sales channels in addition to the field

sales force% Are there an sales structure danger

signals !high costs+ turno*er+ large

sales *ariations across territor%


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,-

./

.-

0/

0-

1/

1-

/

-

2- 3- 4- 5- 1-- 11-

(ales

0millions

1umber of salespeople

(elling

epense

/ross profit

contribution

+urrent

le"el

Maimum profitcontribution le"el

Sales Force Si)eE4a#$le


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MANAGING T5ESALES FORCE

Fin&ing an&Selecting

Sales$eo$le

Training6De+elo$#e

nt Manage#ent Control

Monitoring

Directing

E+al*ating

Re(ar&ing


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T'e S(iss Dr*g MakerNo+artis Strengt'ens

Sales Force Ca$ailitiesFoartis +EEE sales growt! wasery low compared to rialsdouble-digit sales increases. op

management launc!ed a ma:orturnaround strategy, spear!eadedby new product initiaties andstrengt!ening o% t!e sales %orce.(alespeople were proided customer

researc! in%ormation to %ocus t!eirtargeting e'orts.!e si#e o% t!e sales %orce wasincreased

%rom ,G+ to 5, in .1ollaboration and persistence were determined to be key traits o% !ig!

per%ormance Foartis salespeople.


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SALES FORCEE8AL!ATION AND

CONTROL

erformance

Measures

erformance(tandards

Acti"ities 2ocus of Management

+ontrol and-or #utcomes


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REIN8ENTING T5ESALES ORGANI


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INTERNET STRATEG"

(trategy )e"elopment

&nternet #bjecti"es

*+ommerce (trategy

3alue #pportunities and

4isks Measuring

*ffecti"eness

5he 2uture of the&nternet


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Internet StrategyAlternati+es

Pro#otionalMe&i*#

Co##*nicationTool

8al*e9C'ainC'annel

Se$arate/*siness Mo&el


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Deci&ing InternetO-ecti+es

+reating Awareness

and &nterest

&nformation

)issemination

#btaining 4esearch&nformation

6rand 6uilding

&mpro"ing +ustomer

(er"ice


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DESIGNING T5ESTRATEG"

+.1ustomer >roupsargeted

.Halue "ropositionC.1ommunications

(trategy

6.Designing t!e Website

.(tructure o% t!e

Organi#ation5.Alliance "artners

@.(!are!older Halue

.r kin " r% rm n(ource0 =. ?. 9ayport and &. =. =aworski, e-1ommerce, raw-2illB)rwin, C, +.


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Meas*ring InternetE;ecti+eness

1!allenging butcapabilities are

deeloping.W!at s!ould be measuredand !owI


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DIRECT MARKETING

7iosk

(hopping +atalogs

)irect Mail*lectronic

(hopping

4adio-Maga'ine

-

1ewspaper 5ele"ision

5elemarketing

DIRECTMARKETINGMET5ODS


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Adv nt ges of

Direct M rketing

Socio6economic 7rends

7ime constraints(

con*enience Lo' Access 8osts

Much lo'er than face6to6face

contact 9ata :ase Management

Facilitates direct marketing

initiati*es

;alue

An attracti*e bundle of *alue

13. Sales Force, Internet and Direct Marketing

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Transcript of 13. Sales Force, Internet and Direct Marketing