Sales Strategy

Vidhya Srinivas

What is your business model??????

PARTNER
NETWORK

KEY
ACTIVITIES

OFFER

CUSTOMER
RELATIONSHIPS

20 MIN

CUSTOMER
SEGMENTS

KEY
RESOURCES

COST STRUCTURE

DISTRIBUTION
CHANNELS

REVENUE STREAMS

PARTNER
NETWORK

KEY
ACTIVITIES

KEY
RESOURCES

COMMERCIAL /
BUSINESS
STRATEGY

COST STRUCTURE

What is the difference between

Business Strategy & Sales Strategy

A Sales strategy is the translation of

Business or Marketing strategy at
the level of Individual consumer

WHAT IS A SALES STRATEGY?

Key Questions
What type of relationships
4
do we want?
PARTNER
NETWORK

KEY

OFFER

CUSTOMER
RELATIONSHIPS

ACTIVITIES

KEY
RESOURCES

COST STRUCTURE

What is our value

proposition?

What is the
customers buying
behaviour?

CUSTOMER
SEGMENTS

DISTRIBUTION
CHANNELS

Who are we going to

target and why?

How are we going to

do it?

REVENUE STREAMS

What
The customer buying behaviour
is
1. What are their problems
and needs?
PARTNER
NETWORK

KEY
ACTIVITIES

OFFER

KEY
RESOURCES

COST STRUCTURE

CUSTOMER
RELATIONSHIPS

CUSTOMER
SEGMENTS

DISTRIBUTION
CHANNELS

REVENUE STREAMS

2. What type of value are

they looking for?
3. How do they typically buy
this type of product /
service?

1.What is their problem and their

need????

What is their opinion on all these changes?

What do they fear?
What do they like?

What do they think and feel?

Political / Legal Change

What do
they
hear

Custom
Technological Change
ers

What do
they see

Economical Changes
Social Changes

Others .

their customers doing?

their suppliers doing?
heir competitors doing?

What do they say and do?

What have they stopped doing?

What have they started doing?
What are their main problems / pains?

What do they try to achieve / gains ?

1. What are their problems and needs?

What type of value are they looking

What
is the
price

How
will it
impro
ve our
busine
ss

Extrinsic Value
Buyers

VALUE = BENEFITSCOSTS
Strategic Value
Buyers

How
will it
solve
our
proble
ms

Intrinsic Value
Buyers

Source: Neil Rackham, Rethinking the Sales Force

1. What are their problems and needs?

What type of value are they looking f

How do they typically buy this type o

product /service?

Strategic or cost importance of

the suppliers product

How do they typically buy this

product or service?
Leverage
Size

Shop
Low

Partner

Manage
Risk

Difficulty of SubstitutionHigh
Source: Neil Rackham, Rethinking the Sales Force

Strategic or Cost importance of the

Suppliers Product
Low
High

Examp
le

Which bank will give us the best

For rate?
which platform should we develop our app?

Which mobile phone should

Which
I buy?
training organisation should we use?

Low

Difficulty of Substitution

High

Source: Neil Rackham, Rethinking the Sales Force

How do your
customers buy
from you ??

What is Value
Proposition?
PARTNER
NETWORK

KEY
ACTIVITIES

OFFER

KEY
RESOURCES

COST STRUCTURE

CUSTOMER
RELATIONSHIPS

CUSTOMER
SEGMENTS

DISTRIBUTION
CHANNELS

REVENUE STREAMS

1. What are the features,

advantages and benefits
of your value proposition?
2. What is your sales pitch?

What is Value
Proposition?
1. What are the features, advantages and benefits
of your value proposition?

What are the FAB of your Value

Proposition?

Advantages

What is it for
Ways
how the product can be used
me?
meet the needs of the user.

Benefits
Advantages
Features

Features
So what?

Ways in which the features

can be used to help the
user.

What can your product

Raw
do?facts and information
about the product.

What are the FAB of your Value

Proposition?

FEATURE

This mobile phone has a colour screen.

This mobile phone has an agenda function.
You dont have to keep two agenda up to date
because your phones agenda will synchronise with
your outlook.
You said you wanted to know whether you received
emails or phone calls during meetings, well with this
phone you can do that by setting it on vibrate mode.
This phone is very light dont you think?

ADVANTAGE BENEFIT

The(feature)means
you(advantage)with the real
benefit to you being(benefit).

20 MIN

1. Select at least 5 features of your value proposition

2. For each feature identify at least one advantage and
possible benefit.
3.

Identify which 1 or 2 features really makes your com

and product stand out from your competition.

Which features makes you really

unique?

What is Value Proposition?

1. What are the features, advantages and benefits of

your value proposition?

2. What is your sales pitch?

20 MIN

What is your Sales

Pitch?

1. Based the information from the FAB and from the

customer intimacy map write down your own sales pitch

HINT: A sales pitch is usually small. Do not try to put too mu

information.

For

<ideal customer>

who is unsatisfied with

<current alternative>

Our product is a

<product category>
<key benefits/advantages>

that

unlike

<competition>

we have assembled a product that

<unique differentiators>

Who are we going to target and

Why?

PARTNER
NETWORK

KEY
ACTIVITIES

OFFER

KEY
RESOURCES

COST STRUCTURE

CUSTOMER
RELATIONSHIPS

CUSTOMER
SEGMENTS

DISTRIBUTION
CHANNELS

REVENUE STREAMS

1. What makes a customer

attractive to us?
2. What makes us attractive
to our customers?
3. How to differentiate our
customer approach?

1. What makes a customer attractive to

us?

Who are we going to target and

Why?

Who are we going to target and

Why?

What makes a customer attractive

about us?
Soft

Nature of criteria

Customer
attributes

Customer
needs

Risk reduction:
working together

Opportunities for
product/service
differentiation

Hard

Outcomes
Financial
outcomes/profit

Strategically important
purchase

Member of targeted
segment

Turnover

Appropriate decisionmaking structure

Strategic fit

Volume

Want non-standard
solutions

Cost to serve

Prepared to pay for

value

Specifics (e.g. Speed,

compatible systems)

Contribution

Prepared to invest

Compatible services

Growth

Right attitude to
relationships

Spend

Profit
Price

30 MIN

In groups of 5 people:
- Select 1 type / segment of customers
within your group.
Attract
ive

- Select 5 to 6 criteria that define the

attractiveness of your customers.
- Attribute a weight to each of the criteria.
- Take 2 customers (preferably extremes)
and rate their attractiveness

What makes a customer attractive

about us?
Customer attractiveness factors (CAFs)

1) Relative
importance
rating

2) Customer A
rating 1-10

100%

Total =

3) Customer A
Score (=1x2)

2) Customer B
rating 1-10

Total =

3) Customer B
Score (=1x2)

Who are we going to target and

why?
1. What makes a customer attractive to us?

2. What makes us attractive to our customers?

What makes us attractive?

Examples of customer criteria when looking at their suppliers:

Product/service range
Product/service quality
Product/service adaptation to Customers needs
Quality of support services
Price
Associated Services (e.g. technical advice)
Expertise
Joint projects, R&D etc.
Reputation and image of supplier
Past experience of working with supplier
Quality of sales/KAM/Customer service staff
Quality of relationships
Easy to do business with
Geographical spread
Value for money

30 MIN

In groups of 5 people:

Attract
ive

Select 5 or 6 criteria which you

believe are the most important for
your customers.
Attribute a weight to each of the
criteria.
Put yourself into the shoes of your
customers and see how they would
rate your own company.

What makes us attractive?

Business Strength

1) Relative
importance
rating

2) Customer A
rating 1-10

100%

Total =

3) Customer A
Score (=1x2)

2) Customer B
rating 1-10

Total =

3) Customer B
Score (=1x2)

How to differentiate our customer

approach?

30 MIN

In groups of 5 people:
Select 4 or 5 of your customers.
Preferable small and large customers.
Complete the scorecard your just made
for each of them and plot the result on
your quadrant.

2
9

3
10

How to differentiate our customer

approach?

10

Business strength

Who are we going to target and

why?
1. What makes a customer attractive to us?
2. What makes us attractive to our customers?

3. How to differentiate our customer approach?

Strategic
Segments or
Customers

Star Segments
or Customers

How to differentiate our customer

approach?

Selectively
Invest

Streamline
Segments or
Customers

Status
Segments or
Customers

10

Invest

Maintain
1
1

2
3
9 2 10

Manage for Cash

4

5
6

6
7

10

Business strength

What types of relationship do we

want?
PARTNER
NETWORK

KEY
ACTIVITIES

OFFER

KEY
RESOURCES

COST STRUCTURE

CUSTOMER
RELATIONSHIPS

CUSTOMER
SEGMENTS

DISTRIBUTION
CHANNELS

REVENUE STREAMS

1. What type of
relationships do we
have?
2. What type of
relationships do we
want?

What types of relationship do we

want?

1. What type of relationships do we have?

What types of relationship do we

want?
Collaborative

Integrated
Interdepende
nt
Cooperative
Basic
Transactional
Exploratory

Collaborative
Customer Strategic Intent

Adapted from Millman and Wilson 1994 by McDonald and Woodburn 20

What types of relationship do we

want?

Sales
Person

Ops

Ops

Sales
Person

Key
Customer Ops

Board
Admin

Board Admin

Ops

Admin

CUSTOMERS / PARTNERS

Key
Customer
Contact

Board

SONY

Admin Board
Contact

You

CUSTOMERS/PARTNERS

Managers Managers
Operations Operations Customer
Sales
Person
Key Contact
AdministrationAdministration
Board

Board

What types of relationship do we

want?

Does this statement apply to your relationship with your customer?

Score
If our relationship ended, both parties would find it difficult and complicated to
exit
There is a real spirit of partnership and trust between our two companies
Together we have produced long-term strategic plans for the development of
our relationship and business together
Any information at all relevant to our business together is passed straight on to
the client
People at all levels in both organisations are in constant communication with
each other
We have both realised substantial benefits through working together
Total Score
Rating
Strongly agree
Agree
Disagree
Strongly disagree

Score
4
3
2
1

How to differentiate our customer

approach?

20 MIN

In groups of 5 people:
For each of the customers you platted
on your quadrant complete the
customer relationships survey.
Review with your colleagues if the
relationships is in line with the type of
customers.

What types of relationship do we

want?

1. What type of relationships do we have?

2. What type of relationships do we want?

What types of relationship do we

want?

Integrat
ed

Integrated

Interdepend
Interdependent
ent
Co-operative

10

Co
Operative

Basic

Basi
c

3
4
1 9 2 10
3 4
5
Business
Strategies

10

business strength

How are going to do it?

PARTNER
NETWORK

KEY
ACTIVITIES

OFFER

KEY
RESOURCES

COST STRUCTURE

CUSTOMER
RELATIONSHIPS

CUSTOMER
SEGMENTS

DISTRIBUTION
CHANNELS

REVENUE STREAMS

1. What type of sales

approach do we need?
2. Which channels should
we use?

1. What type of sales approach do we need?

What type of approach do we

need?

Leverage Size

Partner

Shop
Manage risk

Low

Difficulty of Substitution

High

Transactional Selling

Product and service

characteristics

Nature of relationship

Prerequisites for success

Nature of sale

Partnership Selling

-Differentiated
-Customisable
-Hidden capabilities

-High strategic and or cost

importance
- Limited substitutability

-Importance of problem
-Solution fit
-Price performance trade off

-Platform fit
-Value fit
-Sustainability
-Sufficient value for effort

-Event

-Purchasing stream

-Strategic plan

-Cost based
-Buyer seller
-Confrontational

-Benefit based
-Client advisor
-Cooperative

-Trust based
-Business equals
-Insider

-Access to decision maker

-Access to influencers

-Access to strategy

- Doing the deal

- Simple Sales process
- Short sales cycle
- One or few decision makers

- Problem / Need solving

- Long sales cycle
- Complex sales process
- Large DMU

-Agenda setting
- Boundaries blur - unclear who is
selling and who is buying.

-Well understood
-Readily substitutable
-Standard items

Key buyer concerns and decision-Price

criteria
-Availability and risk
-Ease of acquisition

Time horizon

Consultative Selling

What type of selling do you think each of these

salespeople at Suzuki use?

Car Salesperson. Responsible for persuading customers to buy a

Suzuki car.

Fleet Service Salesperson. Responsible for persuading Suzukis

resellers to promote their fleet services.

Distribution Salesperson. Responsible for persuading potential

resellers to become a Suzuki reseller.

What type of Sales approach do we

need?
DEFINE
STRATEGIC
AGENDA

Define
Strategic
Agenda

IDENTIFYING
EXECUTION
GAPS

Identifyin
g
Execution
Gaps

DEFINING
PROBLEMS AND
NEEDS

Defining
Problems
and
Needs

IDENTIFY
SOLUTION

Identify
Solution

SELECT
SUPPLIER &
PRODUCT

Select
Supplier
and
Product

PURCHAS
E

Source: Neil Rackham, Rethinking the Sales Force

Which sales approach will

you choose for your
customers?

How are going to do it?

1. What type of sales approach do we need?

2. Which channels should we use?

What type of sales channels do we

need?

10 MIN

In groups of 5 people:
Identify what are the different sales and
servicing needs of your customers.
How important are each of these
services for your customers?

What type of sales channels do we

need?
CUSTOMER
NEEDS
Expert advise and hand holding
Training
Customisation to specifications
Integrated total solution
On site setup and installation
Self Service
Low prices
Fast Local Support
24 * 7 Support

LO
W

MEDIU
M

HIG
H

What type of sales channels do we

need?
PERSONAL SELLING
Field SalesValue Added Volume Resellers Retail/mass Call Centres Internet

Force

Partners

and Distributors

Merchants

Customisation to specifications

Integrated total solution

Fast Local Support

24 * 7 Support

Customer Needs

Expert advise and hand holding

Training

On site setup and installation

Self Service

Low prices

What Sales Channels will

you use?

PART 3:
How to Design your SALES
ORGANISATION?

The Framework

SALES
MANAGEMENT

SALES PEOPLE

ACTIVITIES

SALES FORCE DESIGN

LOYALTY

PERFORMANCE

REWARD

How should we manage our sales

people?

3 What are the activities

part of our sales
process?

What type of sales people do we

4
need?

What type of sales

targets do we need?

What are the roles and

2
responsibilities of our sale
people?

1. What is our strategy

map?
2. What type of objectives,
targets and measures
are we going to use for
our strategy?

30 MIN

Instructions
In groups by company map
your own strategy map.
Focus on the sales &
marketing activities
Start by identifying the type
of financial objectives you
use.

Examples

Financial Perspective
Sales Volume per period
Profits per period
Orders per period

Customer Perspective
Customer Acquisition
Customer Satisfaction
Customer Relationship

Process Perspective
Sales Process
Account Planning process
Account Servicing Process

Learning Perspective
Competitor Knowledge
Selling Skills
Customer Knowledge
Market Knowledge

Sales & Marketing

Objectives
Increase sales revenue

Measures
Sales Revenue

Targets
1.000.000 EUROS

Revenue

Incr
ease

More new customers

Create a customer
experience

#contracts

1 contract a week

nbr of new
customers
must see
Customer
the added
value of
sales

Better
sales

Better
marketing

Online
Lead
generation

Find more
events

Sales
Training

8 leads a week
Standardised consultative
#leads follow up

5 proposals a week
sales approach
#proposal

5
follow
up calls a week
Increase follow up on
#proposal follow up
approach
leads
400 leads by sales perso
More and better
#of leads per sales person
marketing campaigns to
generate leads
campaigns

New online tools to

#Training days
capture leads
#Coaching days
Participate at new events #Events Participation
Increase training days
Tools

Not defined

20 MIN

Instructions
For your own strategy
map:
Complete the objectives
Define how you are
going to measure it.
Set the targets.

Sales & Marketing

Objectives

Measures

Targets

1. What type
specialisation do we
need in our sales force?
2. What type of roles and
responsibilities will we
assign to our sales
people?

Market Driven
Specialisation

Product / Market Driven

Specialisation

Geography Driven
Specialisation

Product Driven
Specialisation

Complex RANGE of Products

Customer Needs
Simple 1

5 Complex
All our customers and prospects have very
specific needs depending on the type of
organisation and sector their operate it.

All our customers and prospects have very

similar needs.

Product Range
Simple 1

All our products are very similar allowing one

person to easily sell their all.

5 Complex
Our products are very different and each of
them require highly specific knowledge from
our sales force.

They seek out new channels

and support existing ones.
Main activities are channel
management, Prospecting,
Training and Recruiting and
entertaining. Additionally some
relationship selling

Maintaining close long-term

relationships with
organisational customers. They
are often involved in team
selling. Main activities are
providing product support,
maintenance and installation
and entertaining.

They manage large scale and

value of sale. Long negotiation,
complex purchase decision,
usage of the product is different
from consumer sale. Main
activities are relationship
selling, and prospecting.

Sales person is not permitted or

expected to take orders. The
objective is to create goodwill or
educate the customer Main activities
are delivering samples, education ad
promotional activities and sales
service.

Retail sales assistant, customer

chooses freely the product.
Sales person only handles the
transaction. Telemarketing
taking orders from customers
how are calling in.

Position where the salesperson

is predominantly an order taker
Helping the customer to make
their choice and complete the
transaction.

They provide support to the

retailers and wholesales to
ensure that their product is well
represented and displayed.
Main activities are promotion
activities and servicing.

They are involved in complex and

highly technical sales as support of
the sales team. They play a dual
role of sales person and advisor.
Main activities are analysing the
customers problems and needs and
proposing a tailored solution.

Salesperson predominantly
delivers the product. Selling
skills as secondary to good
servicing skills. Main activities
are stock shelving, writing up
orders, and checking inventory

Their objective and main

activities are providing support
to the sales people who are in
the field.

The objective is to win new

business by identifying and
selling to prospects.
Main activities are Prospecting
and Relationship selling.

Identifying potential business

opportunities by analysing market
trends and developing strategies.
Closing new business opportunities
by coordinating requirements;
developing and negotiating
contracts.

1. What type of activities

should our sales people
do?
2. What does our sales
process look like?

LEADS

DEAL

AWARENESS

Consists of activities that

enable the customer to
become aware of the
needs for your product or
services.

INTREST

DESIRE

ACTION

Consists of the activities

Consists of the activities
Consists of the activities
that will stimulate
that are likely to
that will get the customer
interest with the
stimulate your customer
to actually purchase your
customer for your
to desire / want your
product or service.
product or service.
product or service.

Applicable for:
- Short sales cycles (1 to 2 visits to close a sales)
- Consumer sales
- Product Based Sales

Prospecting

Consists of
activities such as
generating,
qualifying and
distributing new
leads.

Qualification

Presenting

Negotiating

Closed

Follow-up

Consists of
Consists of all the
Consists of all the
Consists of showing Consists of agreeing
understanding the the customer how the terms of the final contractual
activities the sales
needs and problems the suppliers
purchase with the activities to close the force provides during
customer.
deal.
of the customer and produces and
the after sales of the
product.
determining whether
services will enable
the sales persons them to solve their
products and servicesproblems and
can be of value to the needs.
customer.

Applicable for:
- Long and complex sales cycles
- Project Based Sales
- Business to Business sales

EXPLORATION

BASIC

CO OPERATTION

ALLIGNED

INTEGRATED

Consists of activities that Consists of the activitiesConsists of the activities Consists of the activities Consists of the activities
that will get the customerthat will get the customer
enable the customer to that will stimulate
that are likely to
stimulate your customerto actually purchase yourto actually purchase your
become aware of the
interest with the
product or service.
to desire / want your
product or service.
needs for your product or customer for your
services.
product or service.
product or service.

Applicable for:
- Long and complex relationships
- Key Account based Sales
- Business to Business sales

30 MIN

Instructions
In groups of 4 or 5:

1. Select the sales stages

tat are more appropriate
for your sales process.
2. For each of the stages
identify all the key
activities that the sales
people will need to
perform.

S LES PROCESS:
Stages

Activities

Tasks /
Working
procedures

1. What type of sales

people do we need?

CONSULTANT

RELATIONSHIP
BUILDER

9
8
7
6
5
4
3
2
1

DISPLAY SALES
PERSON

9
CLOSER

Personality:
High energy
Manipulative
High Need to achieve
Risk Takers
Skills:
Prospecting
Presenting
Motivation:
Status
Recognition

Personality:
Team Leader
Professional
Enjoys challenges
Highly Educated
Calculated Risks
Skills:
Problem Solving
Motivation:
Mastery
Purpose

Personality:
Likable, fun
Hard working
Team Player
Likes his autonomy
Avoids Risks
Skills:
Developing
Relationships
Motivation:
Autonomy
Sense of Belonging

Personality:
Happy, outgoing
Service oriented
Not an overachiever
Pleases the customer
Avoids Risks
Skills:
Service driven
Motivation:
Recognition

Customer Needs
New Product
Established System
Sales Person Profile
New System Buyers
Commodity Buyers
Buyers
Buyers

85%

40%

25%

20%

50%

82%

46%

30%

15%

55%

89%

35%

10%

9%

18%

70%

Source: HR The Chally Group: How to Match the Type of Salesperson to your customers?

1. What type of sales

approach to adopt ?
2. How will we coach our
sales people?

MARKET BASED

MARKET BASED
The market / customer sales revenues
determine whether the sales people are doing
a good job or not.
BEHAVIOUR BASED
Adherence to our sales process and activity
targets determine whether the sales people
are going a good job or not.

BEHAVIOUR BASED

CLAN BASED

CLAN BASED
dherence to our companys values and
norms determine whether the sales people
are going a good job or not.

97

ADVANTAGES

DISADVANATAGTES

- Keep sales people focus on results.

- Focus on the end rather then the

means

- Easy to apply.
- Promote initiative

- Fails to stimulate growth of

professionalism

- Consistent across different people in the

organisation
- Requires very little management
attention

- Short term focus

- Requires sales people whit a risk

taking profile

Tupperware ladies

Self Employed Sales Agents

Jerry Maguire Movie

ADVANTAGES

DISADVANATAGTES

- Greater opportunity for behaviour

modification.

- Requires management ability to

observe and diagnose

- Encourage customer relationships.

- Require time for observation

- Recognize the difference between

cause and effort.

- Requires impartiality

- Encourages risk averse people to start

a career in sales.
- Applicable where sales people need
very specialised knowledge and skills.

- Likely to be implemented with some

inconsistency across the organisation

Retail Salesperson

ADVANTAGES

DISADVANATAGTES

- Requires very little management

effort

- Difficult to measure, very subjective

- Encourages loyalty

- Lack of outcome focus

- Recognises that selling is a team

based effort.

- Requires impartiality
- Lacks real accountability

- Promotes autonomy and initiatives

- Applicable where sales people need
very specialised knowledge and skills
- Applicable in highly volatile markets

Sales Team

Process Knowledge
Perfect

Imperfect

Behaviour or
Outcome
Based

Outcome
Based

Behaviour
Based

Clan
Based

High

Low

20 MIN

Instructions
You probably will combine all
three approaches in your
management style. The question
is:
1. How important is each going
to be. Draw a line connecting
the three legs indicating thei
relative importance.
2. Describe how you are going
to implement the approach
in terms of management
activities, rewards and
targets.

MARKET BASED

BEHAVIOUR BASED

CLAN BASED

20 MIN

In groups of 2 participants:
GOALS: What are your goals for the this
period?
REALITY: How far are you from realising
your individual goals? For which goals are
you lagging?
Why?
Why?

Why?

OBSTACLE: Why are you lagging? Ask 3

times the why question.
WAY FORWARD: How can we remove the
obstacle?