Chapter 1: Sales Function & Strategies Flashcards
What are the different types of sales markets?
- For Profit
- Non-Profit
What is the strategic goal for “For Profit” sales markets?
Competitiveness
What is the strategic goal for “Non-Profit” sales markets?
Mission effectiveness
What are success factors for “For Profit” sales markets?
- Market Share
- Growth Rate
- Earnings
What are success factors for “Non-Profit” sales markets?
- Management Practices
- Social Impact
- Cost Efficiency
What do “For Profit” sales markets value?
- Innovation
- Creativity
What do “Non-Profit” sales markets value?
- Accountability to public
- Integrity
Name the 4 Sales strategies to implement into a market
- Build
- Hold
- Harvest
- Divest
What are the sales objectives of the Build strategy?
- Build sales volume
- Increase distribution
- Provide high service levels
What are the sales objectives of the Hold strategy?
- Maintain sales volume
- Maintain distribution
- Maintain service levels
What are the sales objectives of the Harvest strategy?
- Reduce selling costs
- Target profitable accounts
- Reduce service costs and inventories
What are the sales objectives of the Divest strategy?
Clear inventory quickly
What are the sales strategies of the Build strategy?
- High call rates on existing accounts
- High focus during call
- Call on new accounts (prospecting)
What are the sales strategies of the Hold strategy?
- Continue present call rates on current accounts
- Medium focus during call
- Call on new outlets when they appear
What are the sales strategies of the Harvest strategy?
- Call only on profitable accounts
- Consider telemarketing or dropping the rest
- No prospecting
What are the sales strategies of the Divest strategy?
Quantity discounts to targeted accounts
Porter’s Generic Business Strategies
A framework for achieving sustainable competitive advantage by positioning themselves strategically in the market
Advantages of Porter’s Generic Business Strategies
- Product Oriented
- Cost Oriented
Limitations of Porter’s Generic Business Strategies
- May not suit every business or industry
- Dynamic markets require hybrid approach
Name the strategies of Porter’s Generic Business Strategies
- Cost Leadership Strategy
- Differentiation Strategy
- Focus Strategy (differentiation)
- Focus Strategy (Low Cost)
Cost Leadership Strategy
- Broad Target/Market Scope (Industry wide)
- Advantage: Low Cost
Differentiation Strategy
- Broad Target/Market Scope (Industry wide)
- Advantage: Product/Service Uniqueness
Focus Strategy (Differentiation)
- Narrow Target/Market Scope (Market Segment)
- Advantage: Product/Service Uniqueness
Can a business strategy alone work?
NO - Each business strategy needs to be accompanied by a sales strategy