Strategic Sales Management


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0 STRATEGIC SALES MANAGEMENT The world of selling must accommodate a dramatically changed world of buying

Territory Analysis:

Territory Analysis Why Do It? To obtain thorough coverage of the market To establish territory responsibilities To evaluate Performance To improve customer relations To reduce cost/increase profitability To allow better salesforce/customer matching

Target Account Strategy:

Target Account Strategy Undifferentiated Account Approach TARGET ACCOUNTS SALES STRATEGY

Target Account Strategy:

Target Account Strategy Account Segmentation Approach Key Account Profitability Size Potential SALES STRATEGY Account 1 Account 2 Account 3 Account 4

Expected Value Analysis:

Expected Value Analysis Determination of product potential on an account by account basis. Estimates of Market Share and Probability are based upon the judgement of the salesperson and Amount of past sales Degree and kind of competition Product,Price, and Service commitments Economic conditions Existing account relationships

Expected Value of an Account:

Expected Value of an Account EV= PPV x  (SES x PES) EV=Expected value PPV= Potential Product Volume SES= Salesperson Estimated Share PES= Probability of getting expected share

Expected Value:

Expected Value EV=PPV X Expected Share $60,000 X .43 = $25,800

Sales Force Quality Impacts Financial Performance:

Sales Force Quality Impacts Financial Performance Value of Quality Sales Force Increases as: Customer pressure intensify Sources of Product differentiation dry up Supply Chain Functions become more integrated

Sales Strategy is most important when:

Sales Strategy is most important when Product is differentiated Product is New Product is late in life cycle Product is undifferentiated Amount of Product Differentiation Product Life Cycle High Low High Low

From Product Power to Customer Power:

From Product Power to Customer Power Over time sources of of MFG. Profitability change Early one profits are proportional to account size Consolidation in most customer industries has led to much more concentration at the top of the account triangle

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