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    Sales Objectives and Planning

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    Amit Paul
    Sales objectives and planning involves establishing goals to ensure corporate targets are met. Objectives must be customer-designed annually and support both corporate and marketing/sales goals. Common objectives include sales volume, market share, upselling/cross-selling, and product-specific targets. Achieving objectives involves strategic planning to set objectives, formulate strategies, and develop tactical activities. Marketing objectives and strategies align with and support corporate goals, while sales force objectives, strategies, and tactics are developed to achieve marketing strategies. An organization's account relationship strategy determines the type of relationships built with customers based on factors like investment level and customer needs.

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    Sales Objectives and Planning

    Uploaded by

    Amit Paul
    84 views31 pages
    Sales objectives and planning involves establishing goals to ensure corporate targets are met. Objectives must be customer-designed annually and support both corporate and marketing/sales goals. Common objectives include sales volume, market share, upselling/cross-selling, and product-specific targets. Achieving objectives involves strategic planning to set objectives, formulate strategies, and develop tactical activities. Marketing objectives and strategies align with and support corporate goals, while sales force objectives, strategies, and tactics are developed to achieve marketing strategies. An organization's account relationship strategy determines the type of relationships built with customers based on factors like investment level and customer needs.

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    Sales objectives and planning involves establishing goals to ensure corporate targets are met. Objectives must be customer-designed annually and support both corporate and marketing/sales goals. Common objectives include sales volume, market share, upselling/cross-selling, and product-specific targets. Achieving objectives involves strategic planning to set objectives, formulate strategies, and develop tactical activities. Marketing objectives and strategies align with and support corporate goals, while sales force objectives, strategies, and tactics are developed to achieve marketing strategies. An organization's account relationship strategy determines the type of relationships built with customers based on factors like investment level and customer needs.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    84 views31 pages

    Sales Objectives and Planning

    Uploaded by

    Amit Paul
    Sales objectives and planning involves establishing goals to ensure corporate targets are met. Objectives must be customer-designed annually and support both corporate and marketing/sales goals. Common objectives include sales volume, market share, upselling/cross-selling, and product-specific targets. Achieving objectives involves strategic planning to set objectives, formulate strategies, and develop tactical activities. Marketing objectives and strategies align with and support corporate goals, while sales force objectives, strategies, and tactics are developed to achieve marketing strategies. An organization's account relationship strategy determines the type of relationships built with customers based on factors like investment level and customer needs.

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    of 31

    Sales Objectives and Planning

    Sales-Force Objectives
    • Objectives ensure that corporate goals are
    met
    • Goals include revenue, market share, and
    improving corporate image among others
    • Objectives assist sales force members to
    plan and execute their personal sales
    programs
    Sales-Force Objectives
    • Must be customer designed annually for
    each company
    • Established to support corporate goals as
    well as marketing and sales objectives
    • Annual objectives may change in the event
    of natural and other disasters
    Achieving Sales-Force Objectives

    • Sales Volume
    • Upselling and Second Chance Selling
    • Market Share or Market Penetration
    • Product-Specific Objectives
    Sales Volume

    • Sales volume measures depend on industry


    (like hospitality - Occupancy, passenger
    miles)
    • Sales volume by selected segments
    • Sales volume and price/margin mix
    Upselling and Second Chance
    Selling

    • Selling additional services or upgrading


    rooms and food and beverage
    • Encourages cooperation and teamwork
    between departments
    Market Share
    • A brand's share of the total sales of all
    products within the product category in
    which that brand competes
    • Determined by dividing a brand's sales
    volume by the total category sales volume
    Market Penetration
    • The percentage of the market owned by a
    company as represented by share of revenue
    • Sales personnel are often held accountable
    for a predetermined level of market
    penetration
    Product-Specific Objectives
    • Improving sales volume for specific product
    lines
    • Sales managers must be careful when
    setting product-specific objectives that they
    do not ignore other product line members
    Formulating Sales Objectives
    Strategic
    Set
    Planning Objectives
    • Objectives are the broad goals
    around which a strategic plan is
    formulated. Formulate
    • Strategies are the plans of Strategies
    action.
    • Tactics are the specific activities
    that people must perform in
    order to carry out the strategy.
    Develop Tactics
    Levels of Organizational Strategy
    • Corporate Strategy
    – Mission, business portfolio, and future growth directions
    for the entire corporate entity.
    • Business Strategy
    – action statements for each SBUs
    • Marketing Strategy
    – policies for each product-market combination.
    • Sales Force Strategy
    – decisions about how to access the target market and the
    type of relationship the company wants to have with its
    customers.
    Company Strategy-
    Marketing Objectives and Strategy
    Company

    Objectives Marketing
    Earn 20% ROI

    Strategy
    Objectives
    Increase marketing share 10% Increase market
    share 10%

    Strategy
    Increase share of customer business
    Marketing Strategy-
    Sales Force Objectives, Strategy and Tactics
    Marketing

    Objectives
    Increase market share 10%
    Sales Force

    Strategy
    Increase share of customer business
    Objectives
    Increase share of
    customer business

    Strategy
    Build long-term
    customer relations

    Tactics
    Develop sales teams
    Provide bonuses for greater customer share
    Marketing Objectives and
    Strategy
    Company Company Strategy Marketing
    Objective (marketing Goal) Strategy

    Increase ROI Increase market Increase share


    from 10 % to share from 30 % with existing
    20 % to 35 % customers
    Capture new
    customers
    Sales Force Objectives and
    Strategy
    Marketing Sales Force Sales Force
    strategy (Sales Strategy Tactics
    Force objective)
    Increase share Build Long Change
    with existing term customer compensation
    customers by 5 relations plan
    % Change
    emphasis in
    training prog.
    Sales Force Strategies
    • Market Coverage
    • Relationship
    • Account
    Market Coverage
    Sales Control vs. Coverage…
    Control Coverage

    Goal “We want to dominate and lead in “We want to reach and serve new
    our core customer base, to markets and customers, and to
    protect the brand, and control the grow as fast as possible”
    relationship with the customer”

    Channel • Field sales force • Retail, mass merchants


    Approach • Telesales
    • High-end partners, thoroughly • Distributors
    trained, with binding contracts • Value-added resellers
    covering all aspects of the sales • Internet
    process • Strategic alliances
    • 3rd party service agreements
    • Etc.
    Market Coverage Example 1

    Large, enterprise
    Direct, Field Sales Reps
    customers
    Corporate
    Resellers
    Mid-sized
    VAR’s, Solution Partners
    accounts

    Small office /
    Mail order catalog (unserved market)
    home office

    Markets Simple, “off the Mass-customized Complex, unique


    rack products products solutions
    Products
    Market Coverage Example 2

    Large, enterprise Direct, Field Sales Reps


    customers

    Mid-sized Business partners


    accounts +
    Telechannels
    +
    Web sites
    Small office /
    home office

    Markets Simple, “off the Mass-customized Complex, unique


    rack products products solutions
    Products
    Account Strategy
    Target Account Strategy
    SALES
    STRATEGY TARGET
    ACCOUNTS

    • Undifferentiated Account Approach


    Target Account Strategy

    MULTIPLE Account Account


    SALES 1 2
    STRATEGY
    Account Account
    3 4

    • Account Segmentation Approach


    – Key Account
    – Profitability
    – Size
    – Potential
    Account Relationship Strategy
    Account Relationship Strategy:

    • A firm’s account relationship strategy refers to


    the type of relationship it intends to develop with
    its customers.
    • this decision determines which customers can be
    profitably served because it calls for very different
    levels of investment into customer relationships.
    • Account relationships may take a variety of forms,
    each having major implications for the sales force
    with respect to recruiting and selection,
    compensation, necessary competencies, and
    behaviors.
    Account Relationship Strategy

    • How long is the selling cycle?


    • How much time is spent on customer need discovery?
    • Will the offering be customized for each customer?
    • Will other functional areas be involved in the sale?
    • How much will we need to invest in the individual
    customer relationship?
    • How easily can the customer switch to a competitor
    once the relationship is established?
    Types of Account Relationship:
    • 1-A transactional relationship is one in
    which the relationship is based on the need
    for a product of acceptable quality,
    competitively priced, and a process and
    relationship convenient for the buyer.
    • it is usually based on a personal relationship
    between individual buyers and sellers.
    Types of Account Relationship:
    • 2- Consultative Relationship. A consultative
    relationship, a quite common relationship in
    industrial markets, is based on the customer’s
    demand and willingness to pay for a sales effort
    that creates new value and provides additional
    benefits outside of the product itself.
    • -get very close to the customer and to intimately
    grasp the customer’s business issues.
    3-Enterprise Relationship.
    • An enterprise relationship is one in which the
    primary function is to leverage any and all
    corporate assets of the supplier in order to
    contribute to the customer’s strategic success.
    • -To achieve successful enterprise relationships, the
    supplier must deliver exceptional customer value
    while also extracting sufficient value from the
    relationship.
    rise ip
    te rp s h
    n
    En atio
    l
    Investment Re
    by ti ve
    u lta ship
    Supplier ns tion
    o
    C ela
    R
    n al
    o
    a cti ship
    n s on
    a i
    Tr elat
    R

    Investment by Customer

    Alternative Types of Account Relationships

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