Strategic Planning powerpoint presentation.ppt

ABCD

1. Strategic Planning
Sales Planning Strategies and Resource
Management
Prepared by Larry Podgorny

2. Why Plan?
Alice: Which way should I go?
Cheshire Cat: That depends on where you are going.
Alice: I don’t know where I am going.
Cheshire Cat: Then it doesn’t matter which way you go!!
Lewis Carroll
1872
Through the Looking-Glass

3. The Plan
•In the beginning was the plan.
•And then came the assumptions.
•And the assumptions were with out form.
•And the plan was completely without substance.
•And darkness was upon the face of the workers.

4. Definition of Strategy/Strategic
•A careful plan or method
•The art of devising or employing plans or stratagems
toward a goal
•Of great importance within an integrated whole or to
a planned effect
•Necessary to or important in the initiation, conduct, or
completion of a strategic plan

5. What Strategic Planning is Not
•Strategic planning is not forecasting
•Strategic planning is not the simple application of
quantitative techniques to business planning.
•Strategic planning is concerned with making
decisions today that will affect the organization
(product line) and it’s future.
•Strategic planning does not eliminate risk, it helps
managers access the risks they must take by gaining
a better understanding of the parameters involved in
their decisions.

6. Simplified Process of Strategic
Planning
The process of strategic planning is a step-by-step
approach three key questions that lie at the heart of
any business strategy:
•What are you going to sell?
•Who are your target customers?
•How can you beat or avoid your competition?
If you can answer these three questions well, you have
a strategy.

7. Simplified Process of Strategic
Planning (Cont.)
•There’s no denying that a simplified process involves
complex issues.
•The process involves digesting a lot of information
and requires some fairly difficult analysis.
•Good strategic planning should be simplified not
simplistic.
•Good intentions alone does not get the job done.

8. Simplified Process of Strategic
Planning (Cont.)
•You need to see it big at first. Start at a high level.
•Sift through all of the noise to get to the important
details
•The next step is do the things that matter very well.
•Occasionally, go back up to the high level to make
sure everything is still on course.

9. Simplified Process Of Strategic
Planning-Start By Studying The Way It
Is Now
•You need to gather basic information and facts
without making any judgments.
•Based on this information you build some
assumptions, again without making judgments.
•This process is the central part of the planning
process and needs to be reviewed in detail because
this information is the foundation for all further
strategy discussions and decisions.

10. Data
1.External Situation
2. Internal Situation
3. Capabilities and
competencies
Ideas
4. Assumptions
Analysis
5. Strategic assessment
Strategic Issues
Direction
6. Strategies
Commitment
7. Mission Statement
Goals
Objectives
Implementation
8. Action Plans
9. Budgets
10.Schedules

11. Simplified Process of Strategic
Planning-How it Works
Planning
•Gather Information
•Assess Capabilities
•Make Assumptions
•Make Strategic Assessments
•Formulate Strategy
•Establish Goals and Objectives
•Formulate Tentative Action Plans
•Finalize Action Plans
Execution
Monitor Developments
and
Progress

12. 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
Total Organizational Planning
Marketing Information
Strategic
Tactical
Long Term Business Plan

13. Start by Studying the Way It Is Now
The course to your vision, like all navigation, starts with
a known position.
•What markets should you pursue
•Who are your competitors
•Where is your competitive advantage
•What are your strengths
•What are your weaknesses
Figuring out point A is the first essential step to charting
a course to get to point B. So get your bearings!
Where are you today?

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

15. BUSINESS STRENGTHS
ACCOUNT
ATTRACTIVENESS
High
Low
Strong Weak
DEFINING AND SELECTING KEY/TARGET
ACCOUNTS
•Size
•Growth
•Profitability
•Location
•Purchasing criteria
and processes
•Current suppliers
•Status of customer
(prestige)
•Product range
•Product efficacy (the power to produce an
effect )
•Service quality (inc. distribution)
•Price
•Associated services (e.g. Tech advice)
•Reputation/image
•Past experience
•Quality of sales staff
•Quality of relationships
Invest / Grow
Selectively
Invest
Maintain
Manage for
Cash /
Withdraw

16. Strong Strength of Position Weak
High
Account
Opportunity
Low
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.
KEY TARGET
MAINTENANCE WHY BOTHER
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.

17. High
ACCOUNT ATTRACTIVENESS
Low
Strong WeakYOUR STRENGTH OF POSITION
ACCOUNT SEGMENTATION AND PRIORITIZATION
KEY ACCOUNTS
•10-20% of your account base
•80% of your GP$
•Receives less than 50% of
your resources
TARGET ACCOUNTS
(Your competition’s Key Accounts)
MAINTENANCE ACCOUNTS WHY BOTHER? ACCOUNTS
•Gets very little attention
•40-45% of your account base
•10-15% of your GP$
•Receives 30-40% of your
resources
•30-40% of your account base
•Less than 5% of your GP$
•Receives 20-30% of your
resources
•Creates 90% of your
“headaches”

18. Strong
Weak
ACCOUNT
OPPORTUNITY
Strong COMPETITIVE POSITION Weak
Sales Team and Selling Effort
Sales Channel:Field Selling and
Inside Sales
Selling Effort:Heavy
KEY TARGET
MAINTENANCE WHY BOTHER
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

19. Better Understanding of
Customer’s Needs
Better Selectivity
Better Selling Strategies
Better Time & Territory
Management
The
Selling
Ballgame
Changing Business
Environment
Leads to
Changing Selling
Environment
Resulting in
Harder to Get and
Hold Customers and
It Costs More!
Implications

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

23. The Contemporary Marketing Concept
Customer Orientation
The purpose of a business is to satisfy the needs of customers.
Products and services are important only to the extent that they satisfy
these needs—they are means rather than ends. Therefore, marketing
starts with the determination of customer needs and ends with the
repeated satisfaction of those needs.
Profit Orientation
A business must satisfy the needs of its customers at an acceptable
level of profitability. Therefore, the purpose of marketing is not simply
to generate sales or achieve a certain market share, but rather to
produce profitable sales and a profitable market share.
Integrated Effort
All activities or a business should be integrated and coordinated so as
to satisfy customer needs at a satisfactory rate of profitability.
Marketing must be coordinated with finance, production, personnel
administration, engineering, and research and development. Moreover,
all marketing activities must be effectively integrated and coordinated
in order to achieve market impact.

24. I.Customer Change Drivers
•Raw material shortages
•Regulatory agencies
•Environmental
•Global competition
•Trade agreements (NAFTA, GATT)
•Mergers/acquisitions
•Automation/technology
•Reduction in cycle time
•“Price”
•“Quality”
•Down sizing

25. Customer Change Drivers (cont’d.)
•Reengineering
•Out-sourcing
•Systems versus products
•Out-sourcing of engineering and R&D to vendors
•Long term contracts (5 years)
•Sharing of warranty costs by suppliers
•EDI
•Vendor reduction

26. II.Purchasing Behavior/Buying Relationships
•Manage supply channel
•–strategic alliances
•–partnering
•–customer linked strategies
•–integrated supply
•National account programs
•Single source
•–product breadth
•–product depth
•EDI
•–seamless order and delivery
•–automation
•–paperless
•Removal / reduction in any redundancy
•Vendor reduction

27. Purchasing Behavior/Buying Relationships(cont’d.)
•Broader offering of “true” value added services
•Proof of performance—vendor score cards
provided by vendors
•Vendor as a business consultant to account
•Problem solving vendors will be chosen
•Reduction of in-house expertise by customers
•Require modular / systems, global vendors with
total quality
•Purchase “packages” of integrated components
(systems) versus single components
•Better P.O.P. merchandising

28. III.Role of the Sales Team
•Increased speed of response
•Technical value-added sales calls
•Greater knowledge of customer, competition and sellers
company
•Ability to make decisions (empowerment)
•Relationship selling at higher level—sell the “whole”
customer
•Empathy for the customer
•Functional sellers
•–sales teams/sellers focused on opening accounts
through “selling” creative solutions to problems
•–account managers on accounts to “service”

29. IV.Sales Force Issues / Problems
•Willingness to change
•Different organizational structure, e.g., Hunters and
Farmers
•New skills
•Sales force automation
•Accountability / evaluation / compensation
•More specialized sellers required—currently generalists
•Total company will become a selling team—cultural
change
•Shift paradigm from products to integrated solution
systems
•More research at the account level
•Sharing of customer information

30. V.Change Areas
•International, national account perspectives
•Better technical skills
•Better research skills
•“Understanding”
•Customer specialized sales forces

31. Why Do Sales Organizations Become Obsolete?
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
Growth Evolution
I II III IV

32. 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
THE
PURPOSE
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. Where buyers experience
the greatest challenges
EVOLUTION OF
BUYING PROCESS
Planning
1
Recognizing
2
Searching
3
Evaluating
4
Selecting
5
Committing
6
Implementing
7
Tracking
8
Selling organizations get involved at
different stages in the customer’s
buying process
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

36. Transactions and Relationships
1.Selling dominates learning
2.Talking dominates listening
3.Persuading the customer is
product driven and benefits
focused
4.The goal is to build buyers
and sales through
persuasion, price, presence
and terms
1.Learning about the customer
is intense and dominates
selling
2.Listening dominates talking
3.Teaching the customer is
need driven and problem
focused
4.The goal is to build
relationships through
credibility, responsiveness,
and trust
Transaction Selling Relationship Creation

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.
Recognition
of Needs
Evaluation
of Options
Resolution
of Concerns
Purchase
Show
customers
how to install
and use
product.
Implement-
station

38. 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.
ADDING VALUE TO A TRANSACTIONAL SALE

39. Seller can
create most
value early
in the
process by
helping
customers
define
needs and
solutions.
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
implementati
on issues.
Recognition
of Needs
Evaluation
of Options
Resolution
of Concerns
Purchase
Implement
-tation
ADDING VALUE TO A CONSULTATIVE SALE

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

41. Buying Discipline in Transition
•Tactical Purchasing Strategic Sourcing
•Regional Focus Global Focus
•Large Supplier Base Strategic Partners
•Commodity Purchases Technology Investments
•Product Focus Solution Focus
•Buying Parts Managing Processes
•Price Focus Total Cost / Value

42. Research Findings
•The world of selling is dynamic by customers’
changing needs and values.
•Customers are more reliant upon sellers for:
–information
–advice
–problem solving
•Information technology is having a major
impact on customer / seller relationships.
•Total organization win, sustain, and grow
customer relationships.

43. Implications for Salespeople
•Salespeople need to understand how to:
•Respond to the needs customers have for
information, advice and problem solving.
•Create value beyond their products and
services in a way that differentiates the
selling organization from its competition.
•Create and manage the organization-to-
organization relationship.

44. Sales Discipline for the 90’s
How you can…
Thinking Strategically Anticipate ways to create
value for customers
Managing Information Deliver focused, usable
information to customers and
associates
Advancing the Relationship Increase customers’ trust in
and commitment to you and
your company
Orchestrating Resources Form an efficient sales team
and manage it cost-effectively

45. Key Shift—Selling Competencies
“World Class”
•Work Processes
–Systems
•Information Flow
Transactional
Selling
Strategic
Selling
FUTURE
Strategic
Selling
Transactional
Selling
NOW

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”

48. Super Salesperson’s Characteristics
•Charisma in sales situation
•Sense of humor
•Good planning and preparation skills
•Physical energy
•Tenacity and resilience at rejection
Peak Sales Performers
Study of 1,500 Achievers Over 20 years
•Take risks and innovate
•Powerful sense of mission
•More interested in problem solving
•See customers as partners
•Rejection is information
•Use mental rehearsal

49. •THE SALESPERSON OF TODAY IS EXPECTED
TO:
•Do more forecasting of future customer requirements
•Spend more time planning calls
•Spend more time in group, system, and strategic selling
•Improve territory management
•Do less driving in the territory
•Spend more time in telephone selling
•Do more “active” selling
•Prepare more detailed market reports

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 EfficiencySales Effectiveness