Chapter 4

• Corporate strategy


  The big picture plan for the whole company made by top management, including direction, product/service decisions, marketing and sales, operations, finances, and people management
• Strategic business unit (SBU)


  Smaller teams within a big company that have their own goals and plans, focusing on specific projects or markets
• SBUs


  • Can work independently and focus on making profits
  • Help companies like Procter & Gamble or LG manage their different product lines as mini-companies
• Business strategy


  How a company can stand out from its competitors by answering questions like why the company exists, what it's good at, who it should sell to, and what it should sell or stop selling
• Main business strategies


  • Differentiation (being different and better)
  • Cost leadership (being the cheapest)
  • Focus/Niche (focusing on a small part of the market)
• Personal selling


  When salespeople talk directly to customers to persuade them to buy by asking questions, addressing concerns, asking for the sale, and following up
• Personal selling approaches


  • Stimulus response selling
  • Mental state selling
  • Need satisfaction selling
  • Problem solving selling
  • Consultative selling
• Sales strategy


  A plan that positions a company's brand or product to gain a competitive advantage by planning sales goals, understanding the market, and motivating the sales team
• Components of sales strategy

  • Using different marketing channels
  • Using testimonials
  • Using promotions to create brand awareness and trust
• Effective selling strategies


  • Knowing the product well
  • Letting customers experience the product/service
  • Understanding the target customer's needs and preferences
  • Obtaining referrals from existing customers
  • Setting prices competitively while communicating value