DR. DAWNE MARTINBUSINESS MARKETING – MKTG 550

NOVEMBER 15 , 2011

Social Media, Sales & Sales Management

Learning Objectives

Review presentation guidelinesElectronic Media

Investigate how electronic media is used Investigate types and uses for B2B social media Investigate trends in interactive media use

Sales and Sales Management Identify the roles of sales in B2B marketing Identify the sales management issues and strategies f Review “Rethinking the Sales Force” and relate to current

strategies and situationsFor Next Time: Help for Project & Chapter 14 –

Pricing & Negotiating for Value

How Do B2B Marketers Use the Internet?

Channels of distributionCustomer relationship buildingBrand image – thought leadershipIntroduction of new products and solutionsTechnical expertiseCommunity

Trends for 2009“Marketers say social media, customer engagement and interactives are top trends for 2009”, BtoB, Nov. 12,

2009

Increase in use of social media, customer engagement Social networks for sharing business issues – blogs, online press

releases Interactive solution tools Strong analytics for database marketing and segmentation Interaction based on past purchase behavior

Solution marketing White papers Deeper product information Thought leadership programs – seeding the market with ideas

for improvement through innovative solutions Webinars Internet vides Blogs, Wikis, Podcasts

Some Examples

American Express: https://home.americanexpress.com/home/open.shtml?source

=prosphp_inav-smallbusinessEastman Kodak

http://graphics.kodak.com/US/en/default.htmIBM

Solutions: http://www.ibm.com/us/Oracle

Technology: http://www.oracle.com/technology/index.html Solutions: Communities: http://www.oracle.com/community/index.html

SalesForce.Com Demo: http://www.salesforce.com

Electronic Media

: IBM - A Smarter Planet - Overview - United States

Electronic/Web-based B2B Marketing

Virtual Conference: http://vue.on24.com/

Formulating a Strategic Sales Plan

External Environment

Organizational Environment

Target Markets & Marketing

Mix

Account Management Policies

Sales Force Organization

Sales Planning, Forecasting, Budgeting

Deployment, Territory Design

The Environment Marketing Strategy

Sales Management Activities

Churchill, Ford & Walker (1997), Sales Force Management, 5th ed., Irwin, p. 6.

Sales Person’s Role in Creating Value

Managing customer relationship Creating customers for life Customer service Coordinating the firm’s actions in order to satisfy

customer requirements Gaining customer information to aid in

marketing decision-making Customer dialog Competitive Information

Account Management Policies

What kind of selling should we use? Script-based selling Needs satisfaction selling Consultative selling Strategic partner selling

What kinds of accounts should sales reps handle?

What kinds of accounts should be handled through less expensive means (e.g., telemarketing, direct marketing, e-commerce)

BUYING AND SELLING TEAMS STREAMLINE MULTILEVEL SELLING

Vice PresidentOf Purchasing

Vice PresidentOf Sales

Director ofPurchasing

AccountManager

EngineerProductSpecialist

Buying Company Selling Company

Exhibit 13-513-15

CUSTOMER FOCUSED TEAM STRUCTURE

AccountConsultant

F&A Rep.Customer

Sales Specialists

AccountManagerTeamLeader

Manufacturing

Finance andAccounting

Other Business Units

OtherRep.(s)

PurchasingAgent

Shipping

CSSRep.

CustomerSupportService

Purchasing

ShippingManager

SalesSpecialists

Prod. / Ind.Mktg. Groups

Exhibit 13-713-16

Management Issues

Sales Force Organization & Size Geographic, Product, Customer Sales Teams Sales force size

Directing the Sales Force Territory design Quotas – activity and performance Compensation – Straight salary, straight commission,

bonuses, combination plansEvaluating Performance – Balance Score Card

Productivity – Activities vs. Outcomes Customer Satisfaction Profitability Contribution to the company

Exhibit 13-8

ALLOCATION GRID FOR SALES RESOURCES

Relatively fewerresources shouldbe allocated here

Low

Maintain sufficientresources to continueto reap the salespotential and strongposition

High

Direct more salesresources here

Assign toalternative methodof communicating,such astelemarketing

Weak

Strong

MARKET LIFETIME VALUE

RELATIVEPOSITION

13-18

DO YOU OUTSOURCE THE SALES FORCE?

YES NO• Establish relationships• Salary and selling

expenses can be limited• Little/no up-front investment

• Loss of control over sales presentation

• Products may not be aselling priority withrepresentative

TO MAKE IT WORK:

INVEST IN TRAINING ANDMERCHANDISING MATERIALS

13-19

MANAGER’S DILEMMA: EVALUATINGPERFORMANCE & MAINTAINING MOTIVATION

1. REVIEW SPECIFIC SALES OBJECTIVES

2. OBTAIN APPROPRIATE PERFORMANCE DATA

(outcomes and effort)

3. EVALUATE WHAT WAS BEYOND

SALESPERSON’S CONTROL

4. IDENTIFY PROBLEMS AND OPPORTUNITIES

5. CREATE A STRATEGY THAT RESOLVES

PROBLEMS AND SEIZES OPPORTUNITIES

5 STEPS TO EVALUATE SALES FORCE PERFORMANCE

Exhibit 13-1113-20

RECOGNIZING AND IDENTIFYING A PROBLEM

Expectations

Enormity of problem rests on length of this difference

Results

PROBLEM RECOGNITION

1. Our sales are down: WHY?2. We can’t see customers: WHY?3. We can’t make appointments on time : WHY?4. We spend too much time covering territory : WHY?5. Our territories are too big : WHY?6. We don’t have enough salespeople : WHY?

THE 6xWHY FILTER Ask the WHY question at least six times(or as many times as necessary)

PROBLEM IDENTIFICATION

“The Problem”

CONCLUSION / PROBLEMWe haven’t matched demand to our sales force.

13-21

Taxonomy of Relationships

Relationship Value

Discrete Transactions

Bilateral Governance

Adapted from Rackham & DeVincentis, Rethinking the Sales Force, 1999

Extrinsic Value

Intrinsic

Value

Strategic

Value

Relational Exchange

Customer Value & Selling Modes

Transactional Selling

Consultative Selling

Enterprise Selling

Value = Benefits - Costs

A Cheaper, No Hassle Pie

A Balanced Diet

Intrinsic Value

Buyers

Extrinsic Value

Buyers

Strategic Value

BuyersEnterprise Assets

Sales Assets

Transaction Asset

Intrinsic Value Buyers

Strategic Options Create New Value -- move to Extrinsic Value Adapt -- Reengineer sales approach

Eliminate sales force Move to lower-cost channels Drastically reduce cost of current sales force

Make the Market-- Find ways to profit from transaction itself

Exit -- Disengage from market segment

Extrinsic Value Buyers

New Consultative Selling Help customers understand problems,

issues & opportunities in new & different ways

Show customers new or better solutions Act as advocates for customers

What is Takes Investment of effort Longer relationship horizons Different skills -- Seeking Vs Telling Metrics

Strategic Value BuyersEnterprise Selling

Selling the enterprise, rather than product Searching for new ways to create value for customer Multi-functional relationship at many levels

Equality in the relationship Creating value at the boundary

Opportunities for value & improvement at boundaries between functions Production - New Product Development Logistic - Marketing & Sales