Comprehensive PowerPoint presentation on Strategic/Tactical planning,Sales Planning Strategic and Resource Management

12. Total Organizational Planning Sales Plan Target Account Strategy Key Account Strategy Maintenance Account Strategy Why Bother Account Strategy Territory Plans Key and Target Account Plans Action Plans Control & Evaluation Shorter Term Business Plan Market Plan Strategic Planning Marketing Information Long Term Business Plan Strategic Tactical

14. P O S I T I O N I N G Which segments / customers will we concentrate on ? Whom will we challenge for these customers? What incentives will we provide to get them to buy from us… rather than from competitors? CUSTOMER TARGETS COMPETITOR TARGETS CORE STRATEGY

16. ACCOUNT PORTFOLIO ANALYSIS Attractiveness: Accounts are very attractive since they offer high opportunity and sales organization has strong position. Sales call strategy: Accounts should receive a high level of sales calls since they are the sales organization’s most attractive accounts. Attractiveness: Accounts are potentially attractive since they offer high opportunity, but sales organization currently has weak position with accounts. Sales call strategy: Selected accounts should receive a high level of sales calls to strengthen the sales organizations position. Attractiveness: Accounts are somewhat attractive since sales organization has strong position, but future opportunity is limited. Sales call strategy: Accounts should receive a moderate level of sales calls to maintain the current strength of the sales organization’s position. And, efforts should be made to replace field sales calls with telephone sales. Attractiveness: Accounts are very unattractive since they offer low opportunity and sales organization has weak position. Sales call strategy: Accounts should receive no field sales calls and a minimum of inside sales resources. Strong Strength of Position Weak High Account Opportunity Low KEY TARGET MAINTENANCE WHY BOTHER

18. Sales Team and Selling Effort Sales Channel: Field Selling and Inside Sales Selling Effort: Heavy Sales Channel: Major Account PROGRAMS Selling Effort: Heavy by Specialist Sales Channel: Direct Marketing, Teleselling, and Field Selling Selling Effort: Heavy (best prospects) Low (other prospects) Sales Channel: Inside Sales Field Selling and Teleselling Selling Effort: Moderate Sales Channel: Teleselling, Direct Marketing, and Some Inside Selling Effort: Low Strong Weak ACCOUNT OPPORTUNITY Strong COMPETITIVE POSITION Weak KEY TARGET MAINTENANCE WHY BOTHER

20. PRIORITIES Time Management

21. Your Scarcest Resource TOTAL BUSINESS DAYS 2002 252 Less: • Vacation 10 • Holidays 10 • Personal absences 5 25 WORKING DAYS AVAILABLE IN YEAR 227 Less: • Meetings, Trade Shows, etc. • Training • Customer unavailability • Miscellaneous TOTAL

22. Administration 16% Administration 16% HOW SALESPEOPLE SPEND THEIR TIME Acct. Service/ Coordination 13% Acct. Service/ Coordination 11% Face-to-Face Selling 29% Face-to-Face Selling 30% Phone Selling 25% Phone Selling 25% Travel 17% Travel 18% 2001 2000

31. Why Do Sales Organizations Become Obsolete? Growth Evolution I II III IV Any business is good! All Business is good! What business is good? Certain business is good! One product One market One product One big market Old/new products many markets Redefine customer segment selling Sell to survive Sell volume to lower costs Sell volume to hold share Optimize to get best returns Start-up Volume growth Market share Optimization

32. THE PURPOSE Customer Resource Allocation Decisions What segment(s) to call on What volume segments to call on: – High volume vs. low volume – National accounts vs. smaller accounts What profitability segments to call on: highly profitable vs. less profitable New vs. existing accounts High penetration vs. low penetration accounts What geography to focus on Headquarters vs. field calls Product Resource Allocation Decisions New vs. existing products High volume vs. low volume products Easy to sell vs. hard to sell products – Familiar vs. unfamiliar products – Products with high short-term impact and low carryovers vs. products with low short-term impact and high carryover – High-tech products vs. low -tech products – Long selling cycle vs. short selling cycle – Differentiated vs. non-differentiated – Highly competitive vs. noncompetitive Activity Resource Allocation Decisions Hunting vs. farming Selling vs. servicing Relationship expert vs. product expert vs. industry expert vs. customer expert SALES FORCE TIME & EFFORT

33. SELLING PROCESSES

34. EVOLUTION OF BUYING PROCESS Selling organizations get involved at different stages in the customer’s buying process Where buyers experience the greatest challenges Planning 1 Recognizing 2 Searching 3 Evaluating 4 Selecting 5 Committing 6 Implementing 7 Tracking 8 VENDOR “ Present-Handle Objections-Close” SUPPLIER Searching through implementing ADDED VALUE PARTNER Entire process: Planning through tracking results Where Sellers Focus Efforts

35. Sellers Boundary Role Communication Selling Organization Marketing Strategy policies procedures programs REP Communication Buying Organization Procurement Strategy policies procedures programs

37. TYPICAL PROCESS Help customers recognize and define problems and needs in a new or different way. Show superior solutions, options, and approaches that customers may not have understood or considered. Help customers overcome and remove obstacles to acquisition. Make purchase painless, convenient, and hassle-free. Show customers how to install and use product. Implement- station Recognition of Needs Evaluation of Options Resolution of Concerns Purchase

38. ADDING VALUE TO A TRANSACTIONAL SALE Customer generally knows how to use product. Recognition of Needs Evaluation of Options Resolution of Concerns Purchase Implement- station Little or no opportunity to create sales value. Seller can help make purchase painless, convenient, and hassle-free. Little or no opportunity to create sales value. Customer has few issues or concerns. Customer already understands alternative solutions. Little or no opportunity to create sales value. Customer has already defined needs and problems completely. Little or no opportunity to create sales value.

39. Consultative seller can design customized solutions and help customers make informed choices. Consultative seller can counsel customers and help resolve concerns. Consultative seller can advise and problem solve implementation issues. ADDING VALUE TO A CONSULTATIVE SALE Seller can create most value early in the process by helping customers define needs and solutions. Recognition of Needs Evaluation of Options Resolution of Concerns Purchase Implement-tation

40. Sales Call Time 5% Needs Analysis 50% 10% Problem Solving 30% 35% F/B. Presentation 15% 50% Trying to Close 5% TYPICAL SALESPEOPLE KEY ACCOUNT SALESPEOPLE

46. “ Bottom Line” A business can no longer rely on the uniqueness of their products to retain customers or grow new sales revenue. Customers will align their business with strategic suppliers who understand their business and bring a unique offering which adds value— impacts their “bottom line” through increased sales revenue or reduced costs

47. Natural Sales Skills 60% 5% 35% 5% “Process the requisite selling skills that make them stand out” 35% “Just manage to pay their way” 60% “Just there for the beer”

50. PROFITS

51. The Key Challenge Implications 1. Less discounting. 2. Selling higher margin products. 3. Selling more product lines to each customer (cross-setting). 4. Being more selective and discriminating in qualifying potential buyers. 5. Better use of selling time (deployment). Sales Productivity = G.M. C.O.S. Where: G.M. = Gross Margin Dollars C.O.S. = Cost of Sale in Dollars

52. SALES FORCE PRODUCTIVITY 1st Effectiveness 2nd Efficiency Productivity Clear priorities in terms of: • Markets • Customers • Products • Activities And clear strategy To drive the allocation of resources Managing the allocation of sales resources to: • Markets • Customers • Products • Activities Measure the "return on investment" regularly. = +

53. EFFICIENCY EFFECTIVENESS PRODUCTIVITY Number of doors opened What is done once in door Components of Sales Productivity

54. SUMMARY Defined Getting in front of Using skills and abilities customer at minimum to maximize sales cost potential Mechanisms Working harder : Working smarter : for improving – time management – coaching – incentives – skills training – call reports – account strategies – territory design Measures – penetration – success rates – call rates – repeat business – cost / call – sustainable margins Sales Efficiency Sales Effectiveness