Qxgc 6103 3
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This document discusses various aspects of sales force management strategies and their relationship to business performance. It addresses selling strategies like relationship selling versus transactional selling, the internalization of selling activities, the extent of managerial supervision of salespeople, and the focus of salesperson control. It also discusses salesperson compensation plans, market intensity, and cost leadership strategies. The key factors that influence business performance according to this document are the type of selling strategy employed, the level of supervision and control over salespeople, and the sales compensation structure.
Qxgc 6103 3
- 1. Start-up Issue and Business Strategy Strategy Type and Performance: The Influence of Sales Force Management Business Strategy, Technology Policy and Firm Performance
- 2. Selling Strategy Internalization of selling activities Extent of managerial supervision Focus of salesperson control Salesperson compensation plan Market intensity Cost leadership
- 3. Relationship selling is based on interdependence between sellers and buyers. Sharing of critical information that is based on trust berween two parties. This relationship gives the seller to develop new offerings before the compettion or to augment commodity-like product with high value added services.
- 4. A transaction occurs when a good or service is transferred across a seperable interface, such as when a firm contracts with independent sales representatives to facilitate transactions. The alternative is for the firm to integrate forward and add the selling activity to its activities in product development and production.
- 5. The extent of supervision required is concerned with the degree to which sales people are monitored and direted. Low supervision requirements imply that sales people are knowledgeable and are best able to determine the appropriate activities to achieve the firm goals. High supervision implies that sales people require substantial guidance to select activities that will lead to to the accomplishment of their goals.
- 6. Regardless of the extent of supervision imposed on individual salesperson or independent reps, managers must articulate the expectations of the salesperson and monitor performance compared to expectations. While different competitive startegies require different and varied selling behaviors, the sales force must achieve certain outcomes related to revenue or profit targets
- 7. Compensation system span a spectrum from straight salary fixed to straight commission or ‘incentive-based’. Sales people tend to be more loyal to the organization and are willing to follow management directives more closely. Incentive-oriented compensations systems shift risk from the firm to the salesperson. They require entrepreneurial sales people who tend to place their personal goals above those of the organization
- 8. Firms vary signifiantly in their emphasis on marketing activities. Some firms view advertising as a primary and necessary revenue generating tool while others build their business strategy around other competitive tactics. Similarly, creating strong brand identification within a market may have varying utility for different copmetitors
- 9. The concept of cost leadership has been popularized in Porter (1980) writings on generic business strategies. According to Porter, a firm can gain a competitive advantage through acheiveing the lowest cost structure in the industry without neglecting other important areas such as service and product quality. Finding ways to reduce production cost, achieve high capacity utilization, offer competitive (low) price and establish efficient operations in terms of raw materials procurement, internal production processes and product distribution.
- 10. Marketing does not operate in a vacuum, its between the firm/company, wokers, customer and market changes, require the best business strategy to facing several challenges. The most important things to considered after business plan.