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1、Unit 3DEVELOPINGMARKET STRATEGIESIntroductionNow that you have completed a market analysis of your present staff, your products and services, as well as the territory served by your field sales office, it is time to set your market objectives. With the market objectives established, you can then con

2、centrate on the methods that you will use to achieve your objectives. These two steps will form the core of your marketing plan.Unit ObjectivesAt the completion of this unit, you will be able to:Establish valid market objectivesUse the marketing factors to determine the methods to useCoordinate mark

3、et activities into an action planMonitor the results of your market planningProjects for This UnitIn addition to the study assignment and review questions, this unit contains the following projects:Project l: Setting Market ObjectivesProject 2: Deciding Upon a Market StrategyBegin work on this unit

4、by carefully reading the Study Assignment that starts on the following page. When you have finished your reading, complete the “Check Yourself” Unit Review at the end of the Study Assignment. Check your answers by comparing them with those provided on the answer sheets found at the end of the entire

5、 module. Then complete the projects that follow the “Check Yourself” Unit Review. Make arrangements with your trainer to submit these projects for review or to meet with your trainer to discuss the work that you have done on the projects.UNIT 3Study AssignmentA Map for the FutureYou have gathered a

6、great deal of marketing-related information during your diagnosis of the current situation, but unless you translate that data into action, it has little value. There are three remaining steps in the DOME planning process:O setting objectives: These are the goals for each market that you decide to p

7、enetrate. They are typically stated in terms of sales, sales increases, or marketing penetration. For example, a market objective might be: “By year-end, use increased knowledge of the market to raise sales to college instructors from the current level of $700,000 to $1,100,000.”M identifying the me

8、thods you will use: This is the step in which you decide what must be done to meet your market goals. The marketing factors discussed in Unit l identify the key areas to consider areas for which you will need to set subobjectives. For example, you may decide that changes in advertising strategy at t

9、he local level are necessary. If so, the subobjective that you establish might be: “Develop and implement a new advertising program and launch it by March 15.”For each area in which you decide that changes are needed, develop a list of the specific activities that must take place. For example, if yo

10、u decide that some changes should be made in advertising, then some relevant activities would be:Identify the best advertising sources for this market.Establish the advertising budget.Develop the copy and format for the ads.Place ads with local media.Monitor the effectiveness of each ad.E evaluating

11、 the results: Once you have decided on your market goals and the methods that you will use to achieve them, schedule periodic progress checks. While long-range goals are desirable and necessary, they are too distant to exert much pressure for the staff to attain them. Even a one-year goal can be dec

12、eiving. Set frequent subgoals quarterly, monthly, weekly and check to see that each is attained. Subgoals accomplish three purposes:They provide benchmarks to measure progress toward the ultimate goal. They provide incentives that are near enough to exert needed pressure. They provide the opportunit

13、y to make sure that each building block is in place and on schedule.In the earlier reference to setting objectives, the example of sales to college instructors called for an increase of $400,000 by year-end. Instead of waiting until the end of the year to see whether this goal has been accomplished,

14、 divide that $400,000 into subgoals and check on the results periodically. In addition, check to see that all of the activities identified in the methods step are being accomplished on schedule.There is a logical flow to the DOME planning process. The steps are not separate activities that stand alo

15、ne; each depends on the others and affects the others.D The diagnosis describes the realistic limits of your internal and external resources so that your market objectives can be attainable.O The market objectives establish the direction for the methods and provide standards for evaluation.M The met

16、hods are dependent on both the market analysis or diagnosis for resources and the market objectives for direction.E The evaluation depends on the methods outlined in your action plan for results and is measured against the market objectives that you established.Establishing Market ObjectivesThe Mark

17、et Analysis Work Sheet that you completed in Unit 2 will help you to identify specific markets that are suitable for your field sales office to penetrate. Objectives for each of these markets should be set by wording the market opportunities in positive statements indicating what an individual will

18、be doing by a specific date.As an example, assume that in the diagnosis step, you identified interns and residents at eight major teaching hospitals in your areas as a market opportunity. You determined that interns and residents represented a specific market opportunity because they met many of the

19、 market criteria explored earlier.The size of the market was sufficient in that there were well over 700 interns and residents within the potential market.The market was geographically concentrated.The target group represented responsible people who, while at the moment were earning modest incomes,

20、had excellent potential for being in the top 2 percent income bracket.The market is approachable because all three of the sales representatives knew a large number of health care people in these institutions and two of the three sales representatives had biochemistry backgrounds in college and were

21、somewhat familiar with medical terms, language, habits, attitudes, etc.As far as compatibility is concerned, your office has some products that have direct application to the needs of interns and residents; several of your sales representatives are interested in working this market.Jointly with the

22、three sales representatives who have expressed an interest in working this intern and resident market, you have determined that it should be pursued. Currently, total sales generated by the three sales representatives in this market have been $850,000. In discussion with them, you have decided that

23、with a solid market plan, each could achieve an additional $500,000 in gross sales; as a result, the combined objective would be $2.35 million.Your market objective might be stated as follows:Using a specially developed marketing plan, Mr. Jones, Ms. Smith and Mr. Peters will achieve $2.35 million i

24、n sales to the intern and resident market by year-end. Each person will be responsible for one third of this objective.The above market objective is an example of an objective that meets the criteria of a good objective. It is motivational, attainable, and measurable.1.Motivational. People responsib

25、le for achieving the objective should feel that they want to achieve the objective. The objective should inspire people to try to achieve it.2.Attainable. The objective should be challenging enough to motivate people, but not so high that it will be impossible to achieve. Emphasis should always be o

26、n realism. How high should objectives be set? Experience has shown that successful people typically set objectives that will challenge and motivate them, but that are within their reach. Unsuccessful people either set an objective that is too simple to achieve or that is so difficult that it is virt

27、ually impossible to achieve. As a result in either case, they fail.3.Measurable. If you cannot measure progress toward an objective or determine whether the objective has been achieved, you will not be able to use the objective as a way of managing results. In order to measure progress toward goals,

28、 each objective must contain three elements: conditions, behaviors, and standards.Conditions identify the situation in which the action will take place. For example: Willthe approach be made at a gathering place for the people in a specific market, at their places of business, or individually at the

29、ir homes? Will the sales representative use a special presentation tailored to that market? Behaviors are verbs; they tell who will be doing what. Standards identify the frequency of the activity as well as the desired level of performance.Lets look at another example of the objective-writing proces

30、s. Consider the situation of a manager who decided that dentists would be a good market for the field sales office to penetrate. One of the sales representatives already had a number of sales in this market, but hadnt really concentrated on it. One of the women in the office is the daughter of a den

31、tist and so was able to provide a great deal of background information on the interests and needs of people in this profession. The manager established the following objective for the dentist market:By September 30, using a sales presentation tailored to the needs of dentists, two sales representati

32、ves will increase sales to this market by 46 percent.Is the objective motivational? Achieving the objective would make a valuable contribution to the field sales office and would enable the two sales representatives to substantially increase their production.Is the objective attainable? The activity

33、 and the results should be within the grasp of the two experienced sales representatives. The goal is neither set so low that it is not challenging nor so high that it cannot be achieved.Is the objective measurable? By checking results, you will know whether the two sales representatives increased s

34、ales 46 percent by September 30.The objective states the conditions under which the objective will be accomplished the two sales representatives will use a sales presentation tailored to the needs of dentists. It also identifies what they will be doing (the behaviors) increasing sales. The objective

35、 also includes standards by identifying the desired level of performance they will increase sales by 46 percent by September 30.A word of caution: Take time to word your market objectives carefully. Objectives that do not meet these three criteria can cause serious problems for you as you implement

36、your marketing plan. Lets look at some examples:Improve sales to owners of small businesses.How do you define “improve”? How will you know when the goal has been reached?Develop greater rapport with government employees who are a good market in my territory.How will you achieve greater rapport? What

37、 will be the results? Unless a specific benefit is expected, will the sales representatives find this a motivational objective?Increase sales of financial planning services to doctors.The increase in sales cant be measured as the objective is stated nor can you know whether it is attainable without

38、a yardstick against which to measure performance. What tools will the sales representatives use? What period of time will the objective involve?The objectives step of the DOME process involves a combination of what you would like to have happen and what is likely to happen, and this analysis must be

39、 based on reality. Clearly defined objectives give purpose, meaning, vitality, and direction.Translating Ideas Into ActionTake advantage of the strengths that you have identified during your market analysis as methods to accomplish your objectives. If you found that one of the products available to

40、you is a strong, competitive product that is well suited to the needs of a specific market, then focus on sales of that product. If someone in your office has access to a specific market, take that factor into account when deciding how to proceed. The background information that you have been able t

41、o gather on a specific market will help you to identify the appropriate steps to take.If your analysis revealed some weaknesses in your personnel, available products and services, or the marketplace, include steps to overcome these weaknesses whenever possible. You will be able to make important cha

42、nges in some areas, but will encounter constraints in others.The 10 marketing factors and the levels of control discussed in Unit 1 will provide valuable guidelines for you as you determine the methods to use in achieving a market objective. Lets look at the marketing factors again and consider thei

43、r implications for achieving the objective related to the intern and resident market:Using a specially developed marketing plan, Mr. Jones, Ms. Smith and Mr. Peters will achieve $2.35 million in sales to the intern and resident market by year-end. Each person will be responsible for one third of thi

44、s objective.Office philosophy. What is the present attitude of the three sales representatives toward market segmentation? How do they feel about working in this specific market? How committed are you to this marketing philosophy? Are the sales representatives involved in this market now? What resis

45、tance, if any, are you likely to meet?There is a deep commitment among these three sales representatives to market segmentation. They see the benefits to them of further penetrating this market. I am committed to this marketing philosophy. Resistance is unlikely.Product development. Are customized f

46、inancial services products needed for the intern and resident market? If so, are you constrained in any way by your company when you try to customize services? What are these constraints? How can you deal with them? Will these factors impact upon your market objective?This is not an issue for this m

47、arket objective. Three products are clearly appropriate to the needs of the intern and resident group: life insurance, disability income insurance, and intermediate retirement planning such as individualized retirement accounts. We will consider other products in the terms of the needs of this marke

48、t.Pricing. What types of pricing systems do you operate by in your field sales office? Are you free, for example, to price products and services within a particular range established by your company? Are you expected to adhere to rigid price guidelines? For example, do you want to position a particu

49、lar service to be a loss leader? A break-even service? A profit-maker? What effect will pricing have on the intern and resident market?No adjustment is necessary or possible in current company pricing policies and systems. Sales systems. How do you sell? What sales strategies are likely to work best

50、 in this market? How will you identify prospects? Should you use direct-mail approaches? What specific face-to-face selling techniques are most appropriate for this market? Do you plan to use brochures and other support materials?We will use an intensive direct-mail campaign plus a great deal of per

51、sonal contact. Primary reliance will be on the three sales representatives.Advertising. What advertising programs have you used in the past? Which ones are most effective for this market? Do you plan to use local newspaper ads or will you rely on advertising in market-oriented journals or newsletter

52、s read by interns and residents? How will you coordinate this advertising with the advertising needed to achieve other market objectives?Expect to use targeted ads in local suburban newspapers, plus ads in medical journals and periodicals circulated to the hospital marketplace. Will coordinate this

53、advertising with the advertising needed for other markets in master plan.Promotion. What types of promotional activities have you used in the past that would be appropriate for this market? Could you use a sales contest for this limited number of sales representatives? Will you involve your support

54、staff in any contests? What criteria will you use for success in any contests? Will you have to change your promotional programs as you sell to this market?Will consider a specific sales contest for the three sales representatives involved in this market. Might also tie this contest in with contests

55、 related to meeting other market objectives. Will also include a prize for any support staff member who assists sales representatives in meeting goals by conducting research on the market, handling direct-mail, making appointments, processing paperwork, etc.Office location. Will the location of your

56、 office affect your ability to penetrate the intern and resident market? Are the people in this market within reasonable traveling distance of your office?All major hospitals are readily accessible. The location of the office will not create a problem.Use of technology. To what extent is your field

57、sales office involved in computer operations? What type of hardware and software do you have available that might enhance your ability to penetrate this market? What modifications may be necessary?Mailing lists and direct-mail pieces will be generated through computerized operations. Interns and res

58、idents will be identified for more regular prospecting and personal calls.Organization of personnel. How will the structure of your field sales office affect plans to penetrate this market? Do sales representatives report direct to unit managers? Do you have specialists who sell selected product/ser

59、vice lines or do all sales representatives handle all products and services? Is the administrative staff actively engaged in providing marketing support? What structural changes may be necessary when you plan to penetrate this and other selected markets?While these three sales representatives will each stay

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