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Sales and Procurement summary - SALES PART

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Sales and Procurement summary: SALES PART

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  • April 2, 2023
  • 14
  • 2021/2022
  • Summary
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International Sales
Part 1: INTRODUCTION

Challenges for sales organisations

Three major observations:
• The Market Shift  more technological
• The Sales Environment changes
• Research indicates a shift in decision-making
As a consequence:
• The Role of Sales changes
The challenge becomes:
• What can WE do about it?

The Market Shift

• The shift: From mainly caring about selling
as much as possible to customer
orientation.




Evolution in Sales

1. Product orientation
2. Sales orientation: “hard-selling”
3. Market orientation: “relationship selling”




1st: Based on production



2nd: Based on what the market needs




1

, Shift 2: Market evolution:

• Pressure on the mid-market
segment from two
directions

Middle point: more good
products at low prices & people
tend to show more that they
can afford expensive products.


Ex: in stores: Primark (low) – H&M (middle) – Louboutin (top)

Shift 3: Increasing segmentation

• Ongoing segmentation in ALL market levels in order to survive competition
• Strategic choices become (low-cost vs. differentation) inevitable
• Marketing mix has to be adopted to each segment
• More and more: 1 to 1 marketing

 Nowadays: there isn’t 1 homogenous market. Markets can be
divided in small sections, because a lot of data is available (micro
segmentation)
Ex: Google selling data to Booking

The Sales Environment changes

Change 1: Environmental changes

1. Technological (r)evolution
2. Information (management) has become a strategic “resource”
3. Succes is defined by the quality of customer relations
4. Succes depends on the level of “added value” offered



Technological influences

• Automation of the sales function
• Virtual sales offices
• Electronical sales channels (internet)




2

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