ABSTRACT
Intense competition in home markets motivates firms to consider entering overseas markets that are at earlier or less competitive stages of product and industry life cycles. It is this competitive environment that demonstrates the value of strategic planning and the need for competitive advantage. Not only must firms survive in their markets, they must perform at ever higher levels. For this to happen, companies must match their skills and abilities to opportunities that exist in the global marketplace. Of extreme importance within the corporate hierarchy are the sales manager and the sales force. This is because sales figures and market share – relative to competitors – are measures by which firm performance is judged. Sales performance depends upon firm effectiveness, as implemented by the sales force, in meeting customer needs in relation to competitors. This requires a thorough knowledge of: (1) customers and their needs, (2) sales force capabilities, and (3) competitor strengths and weaknesses. The strategic planning process provides a mechanism through which the firm can address customer needs and fend off competitors, thereby improving its chances of survival and its performance. This chapter focuses on the strategic planning process and links this process from the corporate level to the sales department. An important sales force performance measure in an industrial setting is the retention of key customers. Known as customer relationship management (CRM), this area is presented in Chapter 15.
