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Business Strategy Marketing Strategy LEVEL 1 Top  Management Decisions Figure 2-1  The Primo CRM Decision Sequence Go-to-Market Strategy Supply Chain  Management (SCM) Customer Relationship Management (CRM ) LEVEL 2 Strategy Implementation Decisions Product Development Management (PDM) Structure Competencies Leadership LEVEL 3 Sales Force Program Decisions Activities Account Relationship Strategy
BUSINESS STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
FIGURE 2-2 :  FACTORS INFLUENCING STRATEGIC MANAGEMENT Strategic Management Planning Distinct competencies Marketing Financial Technology Information Environmental constraints Legal & regulatory Demographics Economic Conditions Technology Competitive conditions Sociocultural factors Resources Financial R&D Personnel Brand Equity Production Firm’s history management culture
Marketing Strategy
FIGURE 2-3 :  HIERARCHY OF SALES OBJECTIVES Major account objective Achieve sales revenues of $95,000 in product A Obtain an average gross margin of 80% Corporate goals Maximize shareholder wealth 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 $10.5 million in product A Obtain $7 million contributions after direct selling Salesperson objective Achieve sales revenues of $1.2 million in product A Obtain $0.8 million in gross margin dollars
A LOOK INTO WHAT COMPANIES WANT  . . . .
0 10 70 60 50 40 30 20 Building Brand of Company/ product Enhancing credibility of company product Increasing sales/ revenue Investor relations Saving costs Other What Goals are Most Important to You? 29.8% 31.9% 66.1% 7.7% 14.0% 7.8%
0 100 60 80 40 20 Building Brand of Company/ product Enhancing credibility of company product Increasing sales/ revenue Investor relations Saving costs Other How Successful Were You at Reaching Your Goals? 68% 58% 72% 94% 83% 93% 32% 42% 28% 6% 17% 7%
TYPES OF STRATEGIES (GENERIC) AND THEIR EFFECT ON SALES PROGRAMS
 
Build Strategy Expand market share in a high-growth market Harvest Divest Marketing Strategies Sales Strategies Hold Strategy Maintain market share at the lowest costs possible Harvest Strategy Reduce costs and focus on profit, not market share Divest Strategy Reduce  inventory at lowest cost possible Figure 2-4:  Business Portfolio Analysis and Primo CRM Strategy Secure Added Distribution Add new customers Provide high presale services Provide product & market feedback Focus on volume growth Build current relationships Call on targeted current customers Increase service to current customers Call on targeted new customers Focus on account penetration Call on most profitable accounts only Reduce overall service levels Reduce inventory levels Maintain distribution Invest as little time as necessary Eliminate services Offer exceptional pricing Focus on one time sales Minimize  time commitment
A MORE DETAILED LOOK AT MARKETING STRATEGY  ,[object Object],[object Object],[object Object],[object Object]
STRATEGIC IMPLEMENTATION DECISIONS
[object Object],[object Object],[object Object],[object Object],Steps in Developing a Go-to-Market Strategy
Figure 2-6  Essential Activities Interest Creation Purchase Pre-Purchase Post-Purchase
Large Small Low Information, Low Solution Needs High Information, High Solution Needs Buying Process Customer Size and Opportunity A Framework for Defining Essential Activities
Company Customers and Prospects Figure 2-7   Potential Go-to-Market Participants Direct Sales Force Agents Distributors Retailers Integrators Alliances Advertising Promotion Direct Mail Tele- marketing Internet Direct Indirect Non-Primo CRM Options Primo CRM Options
Figure 2-8   Comparing Various Go-to-Market Alternatives Sales Force Effectiveness Efficiency High Sales per Exposure Low Cost per Exposure Advertising Direct Mail Internet Telemarketing
Customer Base Go-to-Market Strategy: A Large Computer Manufacturer Account Teams Geographic Sales Force Direct Sales Force Industry Teams Outbound Inbound Telemarketing Partners Internet
Customer Base Go-to-Market Strategy: A Large Chemical Company Account Teams Direct Sales Force Inbound Telemarketing
Customer Base Go-to-Market Strategy: A Pharmaceutical Company Account Teams Geographic Sales Force Direct Sales Force Inbound Telemarketing Partners
Customer Base Go-to-Market Strategy: An Industrial Distributor Account Teams Geographic Sales Force Direct Sales Force Outbound Inbound Telemarketing Internet
Figure 2-9   Product Development Management  Subprocesses Identify customer needs for better solutions Discovering and designing new product solutions Developing new solution prototypes Managing internal departmental priorities and involvement Designing activities to speed-up development process Launching new and redesigned offerings
Figure 2-10   Supply Chain Management Subprocesses Selecting and managing supplier relationships Managing inbound logistics Managing internal logistics Managing outbound logistics Designing product assembly and batch manufacturing Managing process technology Order, pricing, and terms management Managing channel partners Managing product installation and maintenance
Figure 2-11   Customer Relationship Management  Subprocesses Identifying high value prospects Learning about product usage and application Developing and executing advertising and promotion programs Developing and executing sales programs Developing and executing customer service programs Acquiring and leveraging customer contact information systems Managing customer contact teams Enhancing trust and customer loyalty Cross-selling and upselling of offerings
Three Steps in Leveraging the Customer Base ,[object Object],[object Object],[object Object],Shareholder Value Driver of Cash Flow & EVA ,[object Object],[object Object],[object Object],Business Driver of Profits ,[object Object],[object Object],[object Object],Sales Driver of Revenue
 
Sales Force Selling  Activities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Primo CRM Program Elements – Cont. Account  Relationship Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Primo CRM Program Elements – Cont. Organizational  Structure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Competency  Development  Program
“ I hate being transferred from one person to another.” “ It is frustrating to sit on hold for minutes on end.” “ Why can’t everybody know my issue? This is the 10 th  time I have call about the same problem.  Don’t they value my business?” “ I might not get a timely answer if I email. I’d rather call.” “ I entered my account number and the agent still asks me for it.” “ I just want to talk to a live person rather than enter 1, 2, or 3 on my touchtone phone.” Common customer service complaints
CRM FOR BETTER SERVICES
Primo CRM Program Elements – Cont. Leadership Program ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Different Sales Orientations Sales Argument Profile of  Sales Customer Contacts Offering Success Factors Product Sales Best products “ Product Expert” Narrow Space (e.g., purchasing) Best products with a competitive price Product excellence and/ or cost leadership Solutions to your needs “ Solution provider” Function/ department Product and service solutions to customer needs Understanding the customer’s needs Solution Sales Impact on your business results “ business consultant” All levels Valuable solutions to support competitive advantage Driving customer  profits and EVA Value Sales
Figure 2-14:  Changes in Customer Expectations of Suppliers
PIZZA EXAMPLE  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PIZZA EXAMPLE  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PIZZA EXAMPLE  ,[object Object],[object Object],[object Object],[object Object]
 

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Primo CRM

  • 1.  
  • 2. Business Strategy Marketing Strategy LEVEL 1 Top Management Decisions Figure 2-1 The Primo CRM Decision Sequence Go-to-Market Strategy Supply Chain Management (SCM) Customer Relationship Management (CRM ) LEVEL 2 Strategy Implementation Decisions Product Development Management (PDM) Structure Competencies Leadership LEVEL 3 Sales Force Program Decisions Activities Account Relationship Strategy
  • 3.
  • 4. FIGURE 2-2 : FACTORS INFLUENCING STRATEGIC MANAGEMENT Strategic Management Planning Distinct competencies Marketing Financial Technology Information Environmental constraints Legal & regulatory Demographics Economic Conditions Technology Competitive conditions Sociocultural factors Resources Financial R&D Personnel Brand Equity Production Firm’s history management culture
  • 6. FIGURE 2-3 : HIERARCHY OF SALES OBJECTIVES Major account objective Achieve sales revenues of $95,000 in product A Obtain an average gross margin of 80% Corporate goals Maximize shareholder wealth 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 $10.5 million in product A Obtain $7 million contributions after direct selling Salesperson objective Achieve sales revenues of $1.2 million in product A Obtain $0.8 million in gross margin dollars
  • 7. A LOOK INTO WHAT COMPANIES WANT . . . .
  • 8. 0 10 70 60 50 40 30 20 Building Brand of Company/ product Enhancing credibility of company product Increasing sales/ revenue Investor relations Saving costs Other What Goals are Most Important to You? 29.8% 31.9% 66.1% 7.7% 14.0% 7.8%
  • 9. 0 100 60 80 40 20 Building Brand of Company/ product Enhancing credibility of company product Increasing sales/ revenue Investor relations Saving costs Other How Successful Were You at Reaching Your Goals? 68% 58% 72% 94% 83% 93% 32% 42% 28% 6% 17% 7%
  • 10. TYPES OF STRATEGIES (GENERIC) AND THEIR EFFECT ON SALES PROGRAMS
  • 11.  
  • 12. Build Strategy Expand market share in a high-growth market Harvest Divest Marketing Strategies Sales Strategies Hold Strategy Maintain market share at the lowest costs possible Harvest Strategy Reduce costs and focus on profit, not market share Divest Strategy Reduce inventory at lowest cost possible Figure 2-4: Business Portfolio Analysis and Primo CRM Strategy Secure Added Distribution Add new customers Provide high presale services Provide product & market feedback Focus on volume growth Build current relationships Call on targeted current customers Increase service to current customers Call on targeted new customers Focus on account penetration Call on most profitable accounts only Reduce overall service levels Reduce inventory levels Maintain distribution Invest as little time as necessary Eliminate services Offer exceptional pricing Focus on one time sales Minimize time commitment
  • 13.
  • 15.
  • 16. Figure 2-6 Essential Activities Interest Creation Purchase Pre-Purchase Post-Purchase
  • 17. Large Small Low Information, Low Solution Needs High Information, High Solution Needs Buying Process Customer Size and Opportunity A Framework for Defining Essential Activities
  • 18. Company Customers and Prospects Figure 2-7 Potential Go-to-Market Participants Direct Sales Force Agents Distributors Retailers Integrators Alliances Advertising Promotion Direct Mail Tele- marketing Internet Direct Indirect Non-Primo CRM Options Primo CRM Options
  • 19. Figure 2-8 Comparing Various Go-to-Market Alternatives Sales Force Effectiveness Efficiency High Sales per Exposure Low Cost per Exposure Advertising Direct Mail Internet Telemarketing
  • 20. Customer Base Go-to-Market Strategy: A Large Computer Manufacturer Account Teams Geographic Sales Force Direct Sales Force Industry Teams Outbound Inbound Telemarketing Partners Internet
  • 21. Customer Base Go-to-Market Strategy: A Large Chemical Company Account Teams Direct Sales Force Inbound Telemarketing
  • 22. Customer Base Go-to-Market Strategy: A Pharmaceutical Company Account Teams Geographic Sales Force Direct Sales Force Inbound Telemarketing Partners
  • 23. Customer Base Go-to-Market Strategy: An Industrial Distributor Account Teams Geographic Sales Force Direct Sales Force Outbound Inbound Telemarketing Internet
  • 24. Figure 2-9 Product Development Management Subprocesses Identify customer needs for better solutions Discovering and designing new product solutions Developing new solution prototypes Managing internal departmental priorities and involvement Designing activities to speed-up development process Launching new and redesigned offerings
  • 25. Figure 2-10 Supply Chain Management Subprocesses Selecting and managing supplier relationships Managing inbound logistics Managing internal logistics Managing outbound logistics Designing product assembly and batch manufacturing Managing process technology Order, pricing, and terms management Managing channel partners Managing product installation and maintenance
  • 26. Figure 2-11 Customer Relationship Management Subprocesses Identifying high value prospects Learning about product usage and application Developing and executing advertising and promotion programs Developing and executing sales programs Developing and executing customer service programs Acquiring and leveraging customer contact information systems Managing customer contact teams Enhancing trust and customer loyalty Cross-selling and upselling of offerings
  • 27.
  • 28.  
  • 29.
  • 30.
  • 31. “ I hate being transferred from one person to another.” “ It is frustrating to sit on hold for minutes on end.” “ Why can’t everybody know my issue? This is the 10 th time I have call about the same problem. Don’t they value my business?” “ I might not get a timely answer if I email. I’d rather call.” “ I entered my account number and the agent still asks me for it.” “ I just want to talk to a live person rather than enter 1, 2, or 3 on my touchtone phone.” Common customer service complaints
  • 32. CRM FOR BETTER SERVICES
  • 33.
  • 34. Different Sales Orientations Sales Argument Profile of Sales Customer Contacts Offering Success Factors Product Sales Best products “ Product Expert” Narrow Space (e.g., purchasing) Best products with a competitive price Product excellence and/ or cost leadership Solutions to your needs “ Solution provider” Function/ department Product and service solutions to customer needs Understanding the customer’s needs Solution Sales Impact on your business results “ business consultant” All levels Valuable solutions to support competitive advantage Driving customer profits and EVA Value Sales
  • 35. Figure 2-14: Changes in Customer Expectations of Suppliers
  • 36.
  • 37.
  • 38.
  • 39.