Sales Management ch.3

Customer Relationship Management (CRM)

A combination of technologies, strategies, and practices that help businesses manage and analyze their interactions with customers.

Customer-Centric Culture

Is a Partnership business model with shared risks and rewards between the customer and the company

Selling is made as customer business consultation

Formalizes customer analysis processes and agreements

Proactively educates customers about value chain and cost reduction opportunities

Focuses on continuous improvement principles stressing customer satisfaction

CRM Objectives

Customer Retention

Customer Acquisition

Customer Profitability

CRM Advantages

CRM Reduces advertising costs

Increases awareness of customer needs

Tracks effectiveness of promotional campaigns

Helps Compete for customers based on service, not prices

Prevents over-spending on low-value clients, under-spending on high-value ones

Speeds time to develop and market a product

Improves use of customer channel

CRM Failure Reasons

Disruption of routines

Perception of CRM as micro-management tool

Differences in expectations

Perceived lack of management support

CRM- Driven Data Analytics

A process that collects and analyzes customer data to help businesses make better decisions. It's also known as customer analytics.

Data Driven Insights into Consumers and Markets

Insights for customer segmentation

Insights into value of customers

Insights into market opportunities

Promote accountability for the sales force

Provide greater decision clarity and motivation for the sales force

Enable sales managers to lead and manage

Strategic Plan

It provides direction, enhances decision-making, improves resource management, and increases operational efficiency

Strategy Development Process

From the company mission come the goals and objectives

These goals and objectives are overarching for the company, and generate strategy meant to fulfill these goals and objectives

Goals are broad statements of what you want to achieve, while objectives are specifications you take to achieve those goals:

Goals and objectives are cut into smaller, attainable ones for employees to reach

Strategic business units aid in this process

A Strategic business unit (SBU) is relatively an independent/autonomous division of a large company that operates as an independent enterprise with responsibility for a particular range of products or activities.

Strategic business units (SBUs) are responsible for their own profit or loss but answer to the top leadership/management

SBU – STRATEGIC BUSINESS UNIT Strategy

SBU answers to how the business will compete in its industry to achieve sustainable competitive advantage (SCA)

SCA focuses on distinctive competencies

Porter’s Three Generic Strategies:

Low Cost,Differentiation,Niche (or Focus)

Market exchanges

One-shot transactions occurring between a buyer and seller with limited thought of future consideration

Personal Selling’s Role in Functional Relationships

Create a climate of cooperation, with open and honest communication

Roles of salespeople

Engender high level of personal trust in well managed business activities

Provide expertise for competitive advantage

Danger when one party in the relationship leaves

Personal Selling’s Role in Strategic Partnerships

Long-term relationships where both parties make significant investments

Roles of salespeople

Direct communication with production, production designers, and others

Relationship manager and general manager

Work with clients large enough to make investments worthwhile

Relationship Development

Stage 1: Exploration: Determine value, build trust, set proper expectations, monitor

Stage 2:Expansion : Generate repeat sales, full-line selling, cross-selling

Stage 3:Commitment: Build loyalty, become a preferred supplier, engage in TQM

Integrated Marketing Communication (IMC)

Integrates personal selling, advertising and other communications options

Advantages of selling in IMC:Face-to-face contact, More persuasive, More demonstrative Customization opportunities

Disadvantages of selling in IMC:Limited ability to duplicate, More costly