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    PURPOSE AND LEVELS OF ORGANIZATION PLANNING Module

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    Joanna Marie Simon
    This document discusses different levels of organizational planning including goals, objectives, policies, procedures, strategies, and tactics. It also discusses variables to consider in sales situation analysis, different growth strategies for sales management including strategic business units and the Boston Consulting Group matrix. Finally, it outlines types of sales department organizations and guidelines for developing a sales organization.

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    PURPOSE AND LEVELS OF ORGANIZATION PLANNING Module

    Uploaded by

    Joanna Marie Simon
    15 views21 pages
    This document discusses different levels of organizational planning including goals, objectives, policies, procedures, strategies, and tactics. It also discusses variables to consider in sales situation analysis, different growth strategies for sales management including strategic business units and the Boston Consulting Group matrix. Finally, it outlines types of sales department organizations and guidelines for developing a sales organization.

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    PURPOSE-AND-LEVELS-OF-ORGANIZATION-PLANNING-module

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    This document discusses different levels of organizational planning including goals, objectives, policies, procedures, strategies, and tactics. It also discusses variables to consider in sales situation analysis, different growth strategies for sales management including strategic business units and the Boston Consulting Group matrix. Finally, it outlines types of sales department organizations and guidelines for developing a sales organization.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    15 views21 pages

    PURPOSE AND LEVELS OF ORGANIZATION PLANNING Module

    Uploaded by

    Joanna Marie Simon
    This document discusses different levels of organizational planning including goals, objectives, policies, procedures, strategies, and tactics. It also discusses variables to consider in sales situation analysis, different growth strategies for sales management including strategic business units and the Boston Consulting Group matrix. Finally, it outlines types of sales department organizations and guidelines for developing a sales organization.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 21

    6

    4 PURPOSE AND
    LEVELS OF
    ORGANIZATION
    PLANNING
    LEVELS OF
    ORGANIZATIONAL
    PLANNING
    5 1 GOALS
    -are general, long range destinations.

    DEFINE GOALS
    OBJECTIVES
    AND
    OBJECTIVES - specific results desired within a

    designated frame – usually the period
    covered by the annual sales plan.
    5 2
    POLICIES
    SET POLICIES -predetermined approaches for

    handling routine matters or
    recurring situations.
    5 3
    PROCEDURES
    ESTABLISH -detailed descriptions of specific
    PROCEDURES steps for carrying out actions.
    5 4
    STRATEGIES
    - is an overall program of an action
    DEVISE for using resources to achieve
    STRATEGIES value-creating goals or objectives.
    5 5
    TACTICS
    DIRECT - are day-to-day actions that make up
    TACTICS or implement the strategic plan. 6.
    Develop and enforce controls.
    5 6

    DEVELOP AND
    ENFORCE
    CONTROLS

    SALES MANAGEMENT PLANNING PROCESS


    VARIABLES IN SITUATION
    ANALYSIS
    1. Market characteristics
    2. Competition
    3. Sales, cost, and profit data for current and recent years
    4. Benefits offered as perceived by potential customers
    5. Promotional mix
    6. Distribution systems
    1 2 3

    Market Sales Market


    Potential Potential Capacity

    1 2 3
    4 5

    Strategy Market
    Planning Penetration

    4 5
    6 7

    Market Product
    Development Development

    6 7
    GROWTH STRATEGIES OF SALES
    MANAGEMENT
    Strategic Business Units (SBUs)

    -Are logical divisions of major businesses within multiple


    product companies.

    Characteristics of SBU
    1. Distinct Mission
    2. Separate Management
    3. Unique Customer Segments
    4. Own Competitors
    5. Planning that is largely independent
    of other units in the company
    Business Portfolio Matrix

    - Most popular approach in evaluating a company's SBUs.


    -Method which segments the company’s activities into groups of well-
    defined businesses for which distinct strategies are developed.

    Boston Consulting Group (BCG) Growth-Share Matrix


    - Plots market share on the horizontal axis and market growth potential on
    the vertical axis.

    - Evaluates a company’s businesses based on market share and market


    growth and then puts them in one of four quadrants labeled cash cows,
    stars, dogs, or question marks/problem children.
    Strategies Based on the 4 Quadrants Suggest the
    following:
    Stars
    – produce large amounts of cash because of high market share but consume large
    amounts of cash because of high growth. If stars maintain or extend market share, they
    become cash cows.

    Cash Cows
    – leaders in mature markets and produce much more cash than they consume. Companies
    “milk” business units so they can invest cash in other products or services.

    Problem Children/Question Marks


    – growing rapidly and consuming large amounts of cash. They have the potential to
    increase market share and become stars.

    Dogs
    – have low market share and low growth rates. They do not consume
    much cash but also do not produce any.
    Dialectic Planning
    – one approach to examining the validity of assumptions in a forecast.

    -This approach calls for making a new set of assumptions – sometimes


    directly opposite – and reevaluating all previous planning decisions.

    Contingency Planning
    a backup plan to the one adopted, and it will be executed only if events
    occur beyond the control of the major plan.

    Types of Sales Department Organizations


    1. Product-Oriented Approach – useful when product lines are complex or distinct
    and require increased individualized attention.

    2. Function-Oriented Organization – structured by major functions, such as


    development of new accounts or maintenance of current customers.

    3.Customer/Market-Oriented Organization – appropriate for companies whose


    products are purchased in multiple combinations by several customer types with
    unique needs.

    Team Selling
    Relies on several individuals in an organization to sell products
    and services to all relevant decision makers.
    Guidelines for Developing Sales
    Organization

    1. A MARKET-ORIENTED APPROACH
    2. AN APPROACH DESIGNED AROUND SALES ACTIVITIES
    3. DEFINED AREAS OF AUTHORITY AND RESPONSIBILITY
    4. A REASONABLE SPAN OF CONTROL
    5. FLEXIBILITY
    6. COORDINATION AND BALANCE
    6
    2
    THANK
    YOU
    FOR
    LISTENI
    NG!

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