Chapter Summary

Modern sales managers understand that they are but one link in the total marketing strategy for the firm. Moreover, they understand the place of the firm's marketing strategy within the company's total strategic plan.

In addition, both managers and reps should understand the external environmental forces that affect their operations. Specifically, they must monitor and respond to any changes in the demographics, economic conditions, sociocultural-factors, political-legal factors, technology, and competition associated with their market. They must also understand their markets, their suppliers, and the marketing intermediaries (wholesalers and retailers).

To respond to their environment, managers can manipulate the variables of the marketing mix, which include product, price structure, distribution system, and promotional activities. Personal selling is a major element of promotion.

With the advent of the marketing concept and its acceptance by most businesses, the job of the sales manager has been changed and sales operations have become but one portion of the firm's total marketing program. Marketing has evolved through several stages. It is now in the relationship-orientation stage, in which buyers and sellers make long-term commitments to do business with each other. For effective relationship marketing, all functions of the selling firm must work together as a team to help solve customer problems.

Setting specific, clear-cut objectives is an essential step in the management of a company. Once the company's objectives are set, management can develop appropriate strategies. Tactics are the organizational behaviors that execute the strategy.

Strategic planning across all levels in a firm should be coordinated. Strategic decisions at the top of the organization dictate what goes in the strategic marketing plan, which in turn guides the activities of the sales force. At the same time, top-level executives cannot plan effectively without listening to lower-level employees such as salespeople.

Several strategic trends have emerged in the past decade and are shaping the strategy of sales organizations. The Internet has had a significant impact on sales strategy-though sales organizations have not completely grasped how best to use it. In response to intensified competition and changes in customer purchasing patterns, many firms are now using multiple sales channels to reach a broad customer base and multiple relationship strategies to sell to different customers. Finally, today's managers must act in a socially responsible manner if they wish to succeed.