Summary
Summary International Sales & Procurement
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The summary entails all of the theory and practical knowledge for Sales and Procurement. It's a summary of the PPT + my own notes during the class.
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SALES – SUMMARYTable of Contents
first observation: the market shift........................................................................................................................................................2
shift 1: Product -> customer orientation...........................................................................................................................................2
Shift 2: Market evolution..................................................................................................................................................................2
Shift 3: increasing segmentation.......................................................................................................................................................3
second observation: the sales environment changes...........................................................................................................................3
change 1: environmental change......................................................................................................................................................3
change 2: growing importance of R&d.............................................................................................................................................4
new solution selling...............................................................................................................................................................................6
digitize or die.........................................................................................................................................................................................6
big data..............................................................................................................................................................................................6
Lead generation.................................................................................................................................................................................7
change 3: growing “gap” B2B//B2C..................................................................................................................................................8
key selling motives................................................................................................................................................................................9
the decisive factor = trust...................................................................................................................................................................10
the relationship selling triangle.......................................................................................................................................................10
decicion making process (DMP)......................................................................................................................................................10
decision making unit (DMU)............................................................................................................................................................11
conclusion...........................................................................................................................................................................................12
kralijc matrix........................................................................................................................................................................................13
characteristics of B2B on demand......................................................................................................................................................14
Derived Demand.............................................................................................................................................................................14
the chain of derived demand..........................................................................................................................................................15
characterisitcs of B2B demand........................................................................................................................................................15
environmental analysis.......................................................................................................................................................................16
macro environment PESTLE............................................................................................................................................................16
micro environment porters 5 forces...............................................................................................................................................16
internal analysis SWOT....................................................................................................................................................................17
traditional vs modern selling...............................................................................................................................................................18
knapp’s staircase model (important)..................................................................................................................................................18
a strategic imperative.........................................................................................................................................................................21
consequence of not choosing: “stuck in the middle”.........................................................................................................................22
shift 2: market evolution.....................................................................................................................................................................22
account based marketing = partnership.............................................................................................................................................23
account based marketing................................................................................................................................................................24
1
,PART 1 – INTRODUCTION
Challenges for sales organisations:
Three major observations:
• The Market Shift
• 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?
FIRST OBSERVATION: THE MARKET SHIFT
SHIFT 1: PRODUCT -> CUSTOMER ORIENTATION
SALES
PRODUC
TION
PRODUC SALES
TION
PRODUCTION ORIENTATION CUSTOMER ORIENTATION
Product -> customer orientation: selling the products with a better market and customer understanding needs and wants etc.
Evolution in sales
1. Production orientation
2. Sales orientation: “hard selling”: not much focus on need and demand of
customer, more on volume of sales
3. Market orientation: “relationship selling”: market research, try to find out
what your customer wants and needs at that moment = shift in decision
making
SHIFT 2: MARKET EVOLUTION
Pressure on the mid-market segment from two
directions
2
, The pyramid shaped image of the economy. The mid range, which used to be the largest part of the economies, is shrinking. It is
also disappearing as it is under so much pressure.
Reason: there are so many products in the market at small prices, in almost all markets. They are just buying it because the price
is low. The demand for low priced product is growing
At the same time, we see the top is growing. This has to do with the parities between rich and poor. Rich getting richer and poor
getting poorer. The rich are often the dicision makers.
What happens is you don’t want to stay in the middle sector, but not everyone is able to do that and is forced to go down into
the low-price range.
Conscens: all economic activities in the middle sector are having a very hard time.
Example: trends in fashion
- Primark = low range
- H&M = middle range
- Christian Louboutin = high range: you pay for the experience, there is a lot of added value (salesperson who helps you,
being able to say you bought from brand X,…) And you were a part of that experience.
SHIFT 3: INCREASING SEGMENTATION
Ongoing segmentation in ALL market levels in order to survive competition
Strategic choices become (low-cost vs. differentiation) inevitable
Marketing mix has to be adopted to each segment
More and more: 1 to 1 marketing
Possible because of technology. We can slice the market into parts. We get to know those parts because of all the data we have.
We can put customers into parts because of all the information technology provides us with. Companies know a lot about you.
Example market segmentation Cool Blue:
- You have one common brand, Cool Blue, but underneath there are separate web shops all under the holding of Cool
Blue. Each and every web shop is dedicated to a very specific part of the market (example, web shop for vacuum
cleaners). The strategy behind, for each and every of those web shop there are experts behind it that know everything
about that product.
SECOND OBSERVATION: THE SALES ENVIRONMENT CHANGES
CHANGE 1: ENVIRONMENTAL CHANGE
1. Technological (r)evolution
2. Information (management) has become a
strategic “resource”
3. Success is defined by the quality of customer relations
4. Success depends on the level of “added value” offered.
Examples (look ppt for more info):
- World’s fastest computer
- Artificial intelligence: “Atlas” and “Sophia – Will Smith”
- Science fiction: Delhaize Lede and Mariott Hotel Ghent
3
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