6

4 PURPOSE AND
LEVELS OF
ORGANIZATION
PLANNING
 LEVELS OF
ORGANIZATIONAL
PLANNING
5 1 GOALS
-are general, long range destinations.

DEFINE GOALS
OBJECTIVES
AND
OBJECTIVES - specific results desired within a

designated frame – usually the period
covered by the annual sales plan.
5 2
POLICIES
SET POLICIES -predetermined approaches for

handling routine matters or
recurring situations.
5 3
PROCEDURES
ESTABLISH -detailed descriptions of specific
PROCEDURES steps for carrying out actions.
5 4
STRATEGIES
- is an overall program of an action
DEVISE for using resources to achieve
STRATEGIES value-creating goals or objectives.
5 5
TACTICS
DIRECT - are day-to-day actions that make up
TACTICS or implement the strategic plan. 6.
Develop and enforce controls.
5 6

DEVELOP AND
ENFORCE
CONTROLS

SALES MANAGEMENT PLANNING PROCESS

 VARIABLES IN SITUATION
ANALYSIS
1. Market characteristics
2. Competition
3. Sales, cost, and profit data for current and recent years
4. Benefits offered as perceived by potential customers
5. Promotional mix
6. Distribution systems
1 2 3

Market Sales Market

Potential Potential Capacity

1 2 3
4 5

Strategy Market
Planning Penetration

4 5
6 7

Market Product
Development Development

6 7
GROWTH STRATEGIES OF SALES
MANAGEMENT
 Strategic Business Units (SBUs)

-Are logical divisions of major businesses within multiple

product companies.

Characteristics of SBU
1. Distinct Mission
2. Separate Management
3. Unique Customer Segments
4. Own Competitors
5. Planning that is largely independent
of other units in the company
 Business Portfolio Matrix

- Most popular approach in evaluating a company's SBUs.

-Method which segments the company’s activities into groups of well-
defined businesses for which distinct strategies are developed.

Boston Consulting Group (BCG) Growth-Share Matrix

- Plots market share on the horizontal axis and market growth potential on
the vertical axis.

- Evaluates a company’s businesses based on market share and market

growth and then puts them in one of four quadrants labeled cash cows,
stars, dogs, or question marks/problem children.
Strategies Based on the 4 Quadrants Suggest the
following:
Stars
– produce large amounts of cash because of high market share but consume large
amounts of cash because of high growth. If stars maintain or extend market share, they
become cash cows.

Cash Cows
– leaders in mature markets and produce much more cash than they consume. Companies
“milk” business units so they can invest cash in other products or services.

Problem Children/Question Marks

– growing rapidly and consuming large amounts of cash. They have the potential to
increase market share and become stars.

Dogs
– have low market share and low growth rates. They do not consume
much cash but also do not produce any.
 Dialectic Planning
– one approach to examining the validity of assumptions in a forecast.

-This approach calls for making a new set of assumptions – sometimes

directly opposite – and reevaluating all previous planning decisions.

Contingency Planning
a backup plan to the one adopted, and it will be executed only if events
occur beyond the control of the major plan.

 Types of Sales Department Organizations

1. Product-Oriented Approach – useful when product lines are complex or distinct
and require increased individualized attention.

2. Function-Oriented Organization – structured by major functions, such as

development of new accounts or maintenance of current customers.

3.Customer/Market-Oriented Organization – appropriate for companies whose

products are purchased in multiple combinations by several customer types with
unique needs.

Team Selling
Relies on several individuals in an organization to sell products
and services to all relevant decision makers.
 Guidelines for Developing Sales
Organization

1. A MARKET-ORIENTED APPROACH
2. AN APPROACH DESIGNED AROUND SALES ACTIVITIES
3. DEFINED AREAS OF AUTHORITY AND RESPONSIBILITY
4. A REASONABLE SPAN OF CONTROL
5. FLEXIBILITY
6. COORDINATION AND BALANCE
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