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LINKING STRATEGIES AND THE SALES ROLE IN THE ERA OF CUSTOMER RELATIONSHIP MANAGEMENTS

LINKING STRATEGIES AND THE SALES ROLE IN THE ERA OF CUSTOMER RELATIONSHIP MANAGEMENTS.

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LINKING STRATEGIES AND THE SALES ROLE IN THE ERA OF CUSTOMER RELATIONSHIP MANAGEMENTS

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  1. LINKING STRATEGIES AND THE SALES ROLE IN THE ERA OF CUSTOMER RELATIONSHIP MANAGEMENTS www.AssignmentPoint.com

  2. √ Understand and outline the key components and goals of Customers Relationship Management (CRM).√ Explain the importance of a market orientation and how a market orientation is fostered within a firm.√ Identify the key steps in developing and implementing strategies.√ Describe the role of personal selling in marketing strategy.√ Outline the stages in developing strategic partnership relationships between organizations.√ Discuss the actions salespeople can take to ensure successful long-term buyer-seller relationships. LEARNING OBJECTIVES www.AssignmentPoint.com

  3. WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT? • From a selling function perspective, a customer-centric culture includes, but is not limited to, the following major components: • Adopting of a relationship or partnership business model, with mutually shared rewards and risk management. • Defining the selling role in terms of the provision of customer business consultation and solutions. • Increasing formalization of customer analysis processes and agreements. • Taking a proactive leadership role in educating customers about value chain and cost reduction opportunities. • Focusing on continuous improvement principles stressing customer satisfaction. www.AssignmentPoint.com

  4. MARKETING EVOLUTION WITH CHARACTERISTICS AND TECHNOLOGY ATTRIBUTES www.AssignmentPoint.com

  5. THREE MAJOR OBJECTIVES OF CRM • Customer retention. The ability to retain loyal and profitable customers and channels to grow the business profitably. • Customer acquisition. Acquisition of the right customers, based on known or learned characteristics, which drive growth and increased margins. • Customer profitability. Increased individual customer margins, while offering the right products at the right time. • ADVANTAGES OF CRM • Reduces advertising costs. • Makes it easier to target specific customers by focusing on their needs. • Makes it easier to track the effectiveness of a given promotional (marketing • communications) campaign. • Allows organizations to compete for customers based on service, not prices. • Prevents overspending on low-value clients or under spending on high-value • ones. • Speeds the time it takes to develop and market a product (the marketing • cycle). • Improves use of the customer channel, thus making the most of each contact • with a customer. www.AssignmentPoint.com

  6. Toward a Relationship-Based Enterprise In order to move toward being a relationship-based enterprise, and to improve the effectiveness of CRM initiatives, 10 critical questions must be answered. These questions may be grouped by the following categories: customers, the relationship, and managerial decision making. CUSTOMERS Who are our customers? What do our customers want and expect? What is the value potential of our customers? THE RELATIONSHIP What kind of relationship do we want to build with our customers? How do we foster exchange? How do we work together and share control? MANAGERIAL DECISION MAKING Who are we? How do we organize to move value closer to our customers? How do we measure and manage our performance? How do we increase our capacity for change? www.AssignmentPoint.com

  7. EXTERNAL INTERNAL EMPHASIS EMPHASIS Inside-out process Outside-in process Spanning process Customer order fulfillmentPricingPurchasingCustomer service deliveryNew product/service developmentStrategy development Financial managementCost controlTechnology developmentIntegrated logisticsManufacturing/transformation processHuman resources managementEnvironmental health and safety. Market sensingCustomer linkingChannel bondingTechnology monitoring CLASSIFYING CAPABILITIES OF MARKET-ORIENTED FIRMS www.AssignmentPoint.com

  8. Step oneAnalyze market opportunities Step TwoGenerate strategies Step ThreeSelect the strategy Step FourProgram the marketing mix Step FiveReview and revise the strategy Step SixAudit and adjust the strategy STEPS IN DEVELOPING AND IMPLEMENTING STRATEGIES www.AssignmentPoint.com

  9. STEPS IN DEVELOPING AND IMPLEMENTING STRATEGIES • Step One: Analyze Market Opportunities: In the broadest sense, a market opportunity exists whenever some human need is unsatisfied. However, an unsatisfied need represents a viable and attractive opportunity for a firm only if: • The opportunity is consistent with the mission and objectives of the firm. • Enough potential customers exist for the needed product or service so the total potential sales volume is, or will be, substantial. • The firm has the necessary resource and expertise to capture an adequate share of the total market. • Step Two : Generate Strategies: Strategy generation is a creative task. Typically, several strategies will achieve the same objective. For example, a computer firm interested in increasing its market share might (1) attempt to leapfrog its competitors by introducing a technically superior new generation of computers, (2) attempt to become the low-cost producer and compete aggressively on price, or (3) appeal to customers by developing more convenient distribution channels, such as Dell Computers, which sells its products online and by phone but also offers customers the opportunity to order from manned kiosks in shopping malls and airports. • Step Three: Select the Strategy: The criteria used to select the most promising marketing strategy should be directly related to the objectives to be accomplished. For example, if the major marketing objective is to increase market share, then those strategies likely to yield high share increases should be scrutinized. Typically, however, a business will have several marketing objectives, and the strategy that is best for one might be detrimental in achieving another. Thus, the best overall strategy may not be the best for any single objective. www.AssignmentPoint.com

  10. STEPS IN DEVELOPING AND IMPLEMENTING STRATEGIES Step Four: Program the Marketing Mix: A marketing program combines elements of the marketing mix to implements the strategy. It reflects a particular allocation of financial and human resources. The decision involves three questions: (1) How much is going to be spent on the total marketing effort? (2) How is that expenditure going to be allocated among the elements of the marketing mix? (3) How are the dollars and effort allocated to an element going to be divided among the possible activities? The program level is where the formulation of the firm's sales program often enters the planning picture-it is one part of the firm's overall marketing communications program. Step Five: Review and Revise the Strategy: Those in charge of the functional areas of the business are typically charged with generating plans for the functions they supervise. This raises the possibility that the marketing plan prepared by a product manager may be incompatible with the business unit's financial or production plans. For example, the cash flows generated by projected product sales might be insufficient or provide too low a return on capital to produce the product. The various functional plans, therefore, must be reviewed and integrated into a cohesive whole at the business-unit and corporate level. Step Six: Audit and Adjust the Strategy: Today's volatile environment makes planning crucial and also necessitates periodic evaluations of these plans. As competitors adjust their strategies and other environmental conditions change, it may be necessary to revise the firm's plans and programs. www.AssignmentPoint.com

  11. PERSONAL SELLING’S ROLE IN MARKETING STRATEGY • Neil Rackham described four different roles for salespeople operating in a market exchange (transactional) selling environment: • Create new value. Fine a way to create a truly distinctive offering, either by product innovation or by developing truly distinctive services that are of real and measurable value to customers and, in so doing, escape a transactional role. • Adapt. Reengineer your sales approach to succeed in transactional selling by relentlessly stripping out sales and related costs. • Make the market. Find ways to profit from the transaction itself, either in addition to or in place of the profit you make from the products you sell. A great example of this is the SABRE airline reservation system originally operated by American Airlines parent AMR Corporation. While air travel has become increasingly a commodity, SABRE has positioned itself to make money from the transactions a commodity-driven system generates. • Exit. If you can't figure out a way to succeed in this type of sale, then seriously consider disengaging from the transactional segment of the market, this transactional product or product line, or this transactional customer type. www.AssignmentPoint.com

  12. The firm's marketing objectives, strategy, and resources Emphasis devoted to personal selling relative to other marketing communication mix elements The target market Communication tasks to be accomplished by the marketing communication mix Product characteristics Distribution practices Specific personal selling activities required Account management policies Pricing policies Factors influencing the role of personal selling in a firm's IMC strategy www.AssignmentPoint.com

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