3 sales management
Advanced Marketing and sales
(a) sales-oriented company
,(b) marketing oriented company (figure 2.6)
,'Sales' in the Marketing Plan
a) Analyze current market situation
b) Determine sales potential / forecast sales
c) Generate and select sales strategies
d) Budget, implement and control
e) Influence sales channels (more in week 4)
Which promotional mix (incl. Sales) to use?
DEPENDS ON:
▪ Type of market we are in
▪ Stage in the buying process the customer is in
▪ Push vs. Pull strategy as part of Marketing strategy
▪ Stage in the product life-cycle our product is in
How to transfer from 'sales strategy' to 'sales tactics'
(see earlier table – Marketing Objective -> Sales Objective -> Sales Strategy)
, case
Mephisto's current business orientation can be described as product-oriented. The company focuses on
producing technically sophisticated electromechanical control devices for the chemical processing industry.
Their philosophy, influenced by the founder James Watkinson, emphasizes product and production excellence,
supported by strong technical sales and targeted marketing messages. They believe that if the product is well-
designed and manufactured to the highest quality, there will be a market for it. The sales team's approach is
predominantly focused on pointing out the negative consequences of not having Mephisto's safety
mechanisms rather than highlighting the positive aspects and benefits of their products.
In terms of selling activities, the following changes are recommended:
1. Diversify into new industries: The market research and the Head of Marketing's opinion suggest that there
are opportunities to sell Mephisto products in new industries. The sales team should be encouraged to explore
and target potential customers outside the chemical industry.
2. Adopt a customer-oriented sales approach: The sales team should shift from high-pressure sales tactics to
more conversational selling techniques. This means actively listening to customers, understanding their needs
and challenges, and then presenting how Mephisto's products can address those specific needs. This
customer-focused approach will help build stronger relationships and increase the chances of making
successful sales.
3. Emphasize benefits and value: Instead of solely emphasizing the negative aspects and dangers of not having
safety devices, the sales team should also highlight the positive aspects, such as the effectiveness of the
products, time savings in case of plant breakdowns, and improvements in working conditions. By emphasizing
the benefits and value Mephisto's products bring to customers, the sales team can create a more compelling
value proposition.
4. Sales promotions and discounts: To attract new customers and encourage larger orders, Mephisto should
consider offering sales promotions and discounts. This can include discounts for large order quantities or
extended service contracts. Salespeople should be given the authority to provide such discounts within limits,
without the need for approval from accounts, enabling them to make quick decisions and close deals more
efficiently.
5. Implement customer relationship management (CRM): For long-established customers, adopting CRM
practices can help strengthen relationships and improve customer satisfaction. CRM systems can provide
insights into customer preferences, buying patterns, and history, enabling personalized interactions and better
understanding of their needs.
To be more customer-oriented, Mephisto should:
1. Conduct market research: Continuously gather market information and identify potential customers in new
industries. This will help the sales team understand the needs and requirements of different customer
segments, allowing them to tailor their approach accordingly.
Advanced Marketing and sales
(a) sales-oriented company
,(b) marketing oriented company (figure 2.6)
,'Sales' in the Marketing Plan
a) Analyze current market situation
b) Determine sales potential / forecast sales
c) Generate and select sales strategies
d) Budget, implement and control
e) Influence sales channels (more in week 4)
Which promotional mix (incl. Sales) to use?
DEPENDS ON:
▪ Type of market we are in
▪ Stage in the buying process the customer is in
▪ Push vs. Pull strategy as part of Marketing strategy
▪ Stage in the product life-cycle our product is in
How to transfer from 'sales strategy' to 'sales tactics'
(see earlier table – Marketing Objective -> Sales Objective -> Sales Strategy)
, case
Mephisto's current business orientation can be described as product-oriented. The company focuses on
producing technically sophisticated electromechanical control devices for the chemical processing industry.
Their philosophy, influenced by the founder James Watkinson, emphasizes product and production excellence,
supported by strong technical sales and targeted marketing messages. They believe that if the product is well-
designed and manufactured to the highest quality, there will be a market for it. The sales team's approach is
predominantly focused on pointing out the negative consequences of not having Mephisto's safety
mechanisms rather than highlighting the positive aspects and benefits of their products.
In terms of selling activities, the following changes are recommended:
1. Diversify into new industries: The market research and the Head of Marketing's opinion suggest that there
are opportunities to sell Mephisto products in new industries. The sales team should be encouraged to explore
and target potential customers outside the chemical industry.
2. Adopt a customer-oriented sales approach: The sales team should shift from high-pressure sales tactics to
more conversational selling techniques. This means actively listening to customers, understanding their needs
and challenges, and then presenting how Mephisto's products can address those specific needs. This
customer-focused approach will help build stronger relationships and increase the chances of making
successful sales.
3. Emphasize benefits and value: Instead of solely emphasizing the negative aspects and dangers of not having
safety devices, the sales team should also highlight the positive aspects, such as the effectiveness of the
products, time savings in case of plant breakdowns, and improvements in working conditions. By emphasizing
the benefits and value Mephisto's products bring to customers, the sales team can create a more compelling
value proposition.
4. Sales promotions and discounts: To attract new customers and encourage larger orders, Mephisto should
consider offering sales promotions and discounts. This can include discounts for large order quantities or
extended service contracts. Salespeople should be given the authority to provide such discounts within limits,
without the need for approval from accounts, enabling them to make quick decisions and close deals more
efficiently.
5. Implement customer relationship management (CRM): For long-established customers, adopting CRM
practices can help strengthen relationships and improve customer satisfaction. CRM systems can provide
insights into customer preferences, buying patterns, and history, enabling personalized interactions and better
understanding of their needs.
To be more customer-oriented, Mephisto should:
1. Conduct market research: Continuously gather market information and identify potential customers in new
industries. This will help the sales team understand the needs and requirements of different customer
segments, allowing them to tailor their approach accordingly.
