After studying this chapter, you should be able to: Describe the major elements of business strategy, state the basic elements of strategic marketing planning, explain what is meant by strategic implementation process decisions, describe the purpose of a sales force program and list its major elements, tell what an account relationship strategy is and explain its purpose. | Part I THE BIG PICTURE Chapter 2: Strategy and Sales Program Planning Business Strategy Marketing Strategy LEVEL 1 Top Management Decisions Figure 2-1 The Sales Force Decision Sequence Structure Competencies Leadership LEVEL 3 Sales Force Program Decisions Sales Process Activities Account Relationship Strategy Go-to-Market Strategy Supply Chain Management (SCM) Customer Relationship Management (CRM) LEVEL 2 Strategy Implementation Decisions Product Development Management (PDM) Figure 2-2: Factors Influencing Strategic Management Distinct competencies Marketing Financial Technology Information Environmental constraints Legal & regulatory Demographics Economic Conditions Technology Competitive conditions Sociocultural factors Strategic Management Planning Resources Financial R&D Personnel Brand Equity Production Firm’s history management culture 1 Figure 2-3: Hierarchy of Sales Objectives Corporate goals Increase shareholder wealth by 10% Business unit objectives 12% revenue growth Grow pre-tax profits by 18% Marketing objectives Increase product A’s market share by 2 points Grow contributions after sales & marketing by 20% Sales department objectives Achieve sales revenue of $210 million Grow contributions after sales expenses by 25% Sales district objective Achieve sales revenue of $ million in product A Obtain $7 million contributions after direct selling Salesperson objective Achieve sales revenues of $ million in product A Obtain $ million in gross margin dollars Major account objective Achieve sales revenues of $95,000 in product A Obtain an average gross margin of 80% What is the best way to segment the market? What are the essential activities required by each segment? What group of go-to-market participants should perform the essential activities? Which face-to-face selling participants should be used? Steps in Developing a Go-to-Market Strategy Figure 2-5: Figure 2-6 Essential Activities Interest Creation Purchase Pre-Purchase Post-Purchase Direct | Part I THE BIG PICTURE Chapter 2: Strategy and Sales Program Planning Business Strategy Marketing Strategy LEVEL 1 Top Management Decisions Figure 2-1 The Sales Force Decision Sequence Structure Competencies Leadership LEVEL 3 Sales Force Program Decisions Sales Process Activities Account Relationship Strategy Go-to-Market Strategy Supply Chain Management (SCM) Customer Relationship Management (CRM) LEVEL 2 Strategy Implementation Decisions Product Development Management (PDM) Figure 2-2: Factors Influencing Strategic Management Distinct competencies Marketing Financial Technology Information Environmental constraints Legal & regulatory Demographics Economic Conditions Technology Competitive conditions Sociocultural factors Strategic Management Planning Resources Financial R&D Personnel Brand Equity Production Firm’s history management culture 1 Figure 2-3: Hierarchy of Sales Objectives Corporate goals Increase shareholder wealth by 10% Business unit objectives 12% revenue growth Grow
