This document outlines organizational strategies and the sales function. It discusses sales strategy frameworks that include account targeting strategies, relationship strategies, selling strategies, sales channel strategies, and potential channel conflicts. It also covers organizational buyer behavior, explaining concepts like buying situations, buying centers, the buying process, and buying needs. The objectives are to discuss organizational buyer behavior concepts, define account targeting strategies, explain relationship strategies and selling strategies, and describe advantages and disadvantages of sales channel strategies.
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Organizational Strategies and The Sales Function
This document outlines organizational strategies and the sales function. It discusses sales strategy frameworks that include account targeting strategies, relationship strategies, selling strategies, sales channel strategies, and potential channel conflicts. It also covers organizational buyer behavior, explaining concepts like buying situations, buying centers, the buying process, and buying needs. The objectives are to discuss organizational buyer behavior concepts, define account targeting strategies, explain relationship strategies and selling strategies, and describe advantages and disadvantages of sales channel strategies.
*ORGANIZATIONAL STRATEGIES AND THE SALES FUNCTION (P. 55 – 68)
Objectives After completing this presentation, you should be able to:
1. Discuss the important concepts behind organizational buyer behavior.
2. Define an account targeting strategy. 3. Explain the different types of relationship strategies. 4. Discuss the importance of different selling strategies. 5. Describe the advantages and disadvantages of different sales channel strategies. A. Sales Strategy Framework B. Organizational Buyer Behavior Type of Organizations B. Organizational Buyer Behavior Buying Situation Buying Center Buying Process Buying Needs
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Buying Situation Straight Rebuy Buying Situation Routinized Response Behavior Modified Rebuy Buying Situation Limited Problem Solving New Task Buying Situation Extensive Problem Solving Buying Center Initiators, who start the organizational purchasing process Users, who use the product to be purchased Gatekeepers, who control the flow of information between buying center members Influencers, who provide input for the purchasing decision Deciders, who make the final purchase decision Purchasers, who implement the purchasing decision Buying Process Phase 1. Recognition of a problem or need Phase 2. Determination of the characteristics of the item and the quantity needed Phase 3. Description of the characteristics of the item and quantity needed Phase 4. Search for and qualification of potential sources Phase 5. Acquisition and analysis of proposals Phase 6. Evaluation of proposals and selection of suppliers Phase 7. Selection of an order routine Phase 8. Performance feedback and evaluation Buying Needs Personal Goals Organizational Goals Want a feeling of power Control cost in product use situation Seek personal pleasure Few breakdowns of product Desire job security Dependable delivery for repeat purchases Want to be well liked Adequate supply of products Want respect Cost within budget limit C. Sales Strategy Account Targeting Strategy Relationship Strategy Selling Strategy Sales Channel Strategy
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Account Targeting Strategy An account targeting strategy is 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. The account targeting strategy provides the foundation for all other elements of a sales strategy. Relationship Strategy A determination of the type of relationship to be developed with different account groups. Selling Strategy A selling strategy is the planned selling approach for each relationship strategy. Developing efficient and effective selling strategies is an important sales management task. Sales Channel Strategy Sales channel strategy—ensuring that accounts receive selling effort coverage in an effective and efficient manner—is a necessary component of sales strategy. The Internet Distributors Independent Representatives Team Selling Telemarketing Trade Shows The Internet The Internet is rapidly becoming an important sales channel in selling to organizations. The focus is using this electronic channel in a way that meets customer needs and reduces selling costs. Distributors Middlemen that take title to the goods that they market to end users. Independent Representatives Independent sales organizations that sell complementary, but noncompeting, products from different manufacturers. Team Selling The use of team selling is increasing in many firms, especially as a sales channel for a firm’s most important prospects and customers Tele Marketing Using the telephone as a means for customer contact, to perform some of, or all, the activities required to develop and maintain account relationships Trade Shows an industry-sponsored event in which companies use a booth to display products and services to potential and existing customers Channel Conflict Channel conflict occurs when the interests of different channels are not consistent. Typical examples of channel conflict include: Introducing an Internet sales channel that takes sales away from distributors or independent reps Determining which accounts are served by the field salesforce and which accounts are served by a distributor Taking accounts from field salespeople and turning them over to tele marketers. THANK YOU Any Question?