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CHAPTER 2

CHAPTER 2. The Changing World of Sales. “I always regarded the first day of practice as the beginning of a championship season. On my team, those who showed up in shape, ready to play and give an all out effort, understood this principle”. Bill Russel, Boston Celtics, NBA Hall of Fame.

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CHAPTER 2

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  1. CHAPTER 2 The Changing World of Sales

  2. “I always regarded the first day of practice as the beginning of a championship season. On my team, those who showed up in shape, ready to play and give an all out effort, understood this principle” Bill Russel, Boston Celtics, NBA Hall of Fame

  3. The Changing World of Sales • Sales people today must be: • Flexible • Agile • Learning-oriented

  4. Change Forces How the Sales Organization Is Positioned For Change Globalization How Individual Salespeople Respond to Change Organization Culture/Climate Organization Structure Market Orientation Leadership Support Learning Roar of Technological Innovation Is Our Sales Force Current? Is Organization And Individual Performance Satisfactory? Intensified Competition Customer Expectations Figure 2.1A Framework for Change in the Sales Force

  5. Key Change Forces • Globalization • Intensified competition • Inflated customer expectations • Technological innovation

  6. Competing in aGlobal Economy • The cumulative effect of globalization • More players • More products • New technology • Global markets

  7. Intensified Competition • Competitive advantage • Sustainable competitive advantage • Real competitive advantage

  8. Customer Expectationsare Ever-changing • Market turbulence • The rate of change in the composition of customers and their preferences • Salespeople must: • Learn new products • Learn new sales techniques • Learn new sales strategies • Un-learn old; that which is no longer viable

  9. Knowledge Updating Habitsof Successful Salespeople • Finding the right customers • Seeking out and listening to customers’ customers • Cultivating resources in their own organizations • Keeping an eye on their own and their customers’ bottom lines • Anticipating problems • Adopting a long-term view • Reviewing each sales call after-the-fact

  10. Support Existing Sales Drivers Knowledge Management Increased product innovation and/or efficiency Support New Sales Drivers Knowledge Management Work with others in the organization to learn about customer needs and wants Create New Value Propositions Knowledge Management Knowledge as product Figure 2.2The Salesperson as a Knowledge Manager:Expanding the Funnel of Value

  11. Technological Innovation • Technological turbulence is the rate of technological change in an industry • What impact (positive and negative) has new emerging technologies had on salespeople?

  12. Table 2.1The Role of the Salespersonas Knowledge Manager

  13. Five KeyOrganizational Characteristics • Organizational culture/climate • Organizational structure • Market orientation • Leadership support • Learning

  14. Organizational Culture/Climate • Culture is the deeply rooted set of values and beliefs that provide norms for behavior in a sales organization • Climate refers to how salespeople are managed and how effectively they can work with colleagues on day-to-day sales activities

  15. Organizational Structure • Formalization • Centralization • Departmentalization

  16. Market Orientation • Market-oriented firms focus on the continuous creation of superior customer value

  17. Leadership Support • Leadership support is the degree of support and consideration a sales force receives from leaders

  18. Learning • Learning involves the identification of gaps in knowledge, which can shed light on how planned and actual performance differs

  19. How SalespeopleRespond To Change • Many salespeople become complacent • Many salespeople engage in some ineffective (obsolete) activities

  20. Sales Force Obsolescence • Sales force obsolescence is a reduction in work effectiveness that occurs when salespeople fall behind in job-related skills and knowledge

  21. Symptoms ofSales Force Obsolescence • Salespeople feel less useful in their attempts to educate customers about new products • Salespeople feel that customers often obtain information on the latest developments from other means • Salespeople find that customers are likely to be more receptive to them if they provide custom design possibilities for specific applications • Salespeople find that many customers no longer require them to place orders or to provide general information

  22. Symptoms ofSales Force Obsolescence (cont’d) • Increasingly, salespeople find that much of what is purchased is taking on the characteristics of commodities • The cost of personal sales calls has increased dramatically • Salespeople find that their perceived value has been reduced among many of their large customers • Many customers claim that they are seeing more salespeople than ever before

  23. Preparation Intelligence (What Is Known) Thought (How Can I Improve?) Choice (What is Done/What Result) Attention Intelligence (What Is Known) Thought (How Can I Improve?) Choice (What is Done/What Result) Examination, Prescription, Conviction and Motivation Intelligence (What Is Known) Thought (How Can I Improve?) Choice (What is Done/What Result) Completion and Partnering Intelligence (What Is Known) Thought (How Can I Improve?) Choice (What is Done/What Result) Figure 2.3 A Dual Sales Approach: Knowledge and Process

  24. The Integrated Salesperson / CRM Manager Customer Orientation Around customer value/needs Customer Insight Approaches, processes and information systems need to closely link strategy and actions Customer Interface Tools/applications to maximize the value of every customer contact Customer Innovation Role of accurate, timely information to change thinking from a stand-alone activity to an on-going process Figure 2.4 Four Areas of Learning

  25. Table 2.3 Behavior-Based and Outcome-BasedSales Performance Measures

  26. Effectively Implementing Change • Strategic Positioning • The performance of different or similar sales activities that are carried out in different ways • Operational Effectiveness • Performing similar activities better than competitors can perform them • Implementation

  27. Sales Team Approaches

  28. A Growing Relianceon Sales Teams • Sales teams are positioned to: • Detect changes in the business environment • Gain knowledge about customers • Improve team members’ collective understanding of various customer situations • Analyze results of past actions

  29. The Key To Selling In A Rapidly Changing Business Environment Agility Selling • An agile sales force is: • One that is quick to see opportunities • Shrewd in developing short-cycle strategies • Able to meet customers' individual needs • Capable, flexible and fast at learning and unlearning • As innovative as possible

  30. “Street Smarts” • Contextual Intelligence • Adaptation • Environment selection • Environmental shaping • Street-smarts combined with agility selling can lead to improvements in sales performance

  31. The Four Os of Agility Selling

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