Search results

Companies spend millions on training their sales representatives. Thousands of textbooks have been published; thousands of training videos have been recorded. Hundreds of good pieces of advice and tips for sales representatives have been presented along with hundreds of sales methods and techniques. Probably the largest number of indicators and measures are applied in sales and distribution. On the one hand, this is a result of the fact that sales provide revenue and profit to a company; on the other hand, the concept of management by objectives turns out to be most effective in regional sales teams with reference to sales representatives and methods of performance evaluation. As a result, a whole array of indices has been created which enable the evaluation of sales representatives’ work and make it possible to manage goods distribution in a better way.

The indices presented in this chapter are rooted in the consumer market and are applied most often to this type of market (particularly in relation to fast-moving consumer goods at the level of retail trade). Nevertheless, many of them can be used on other markets (services, means of production) and at other trade levels (wholesale).

Although the values of many indices presented herein are usually calculated by market research agencies and delivered to companies in the form of synthetic results, we have placed the emphasis on the ability to determine them independently, both in descriptive and exemplifying terms. We consider it important to understand the genesis of indices and build the ability to interpret them on that basis. What is significant is that the indices can be interpreted differently; the same index may provide a different assessment of a product’s, brand or company’s position in the market depending on the parameters taken into account. Therefore, we strive to show a certain way of thinking rather than give ready-made recipes and cite ‘proven’ principles. Sales and distribution are dynamic phenomena, and limiting them within the framework of ‘one proper’ interpretation would be an intellectual abuse.

In this chapter, a qualitative study of successful sales organizations is reported. Based on the findings, different concepts are derived. The aim of the conceptual development is to help describing the processes of managing a sales organization. It is a new model created from the ground. Still, we can easily see the similarities to the findings and connections to important concepts from established literature.

The interplay between structure and processes, “the frame,” and individual’s development turns out to be at the core of successful sales organizations. This interplay is coined organizational balancing.

The study and this chapter contribute to the extant discussion of causalities between specific factors influencing the sales process, a holistic approach seems highly relevant. However, one specific factor, namely the role of leadership will also be examined.

The core of managing a sales organization effectively is to be aware and take into consideration how the frame and the individual are intervened into each other. They exist in a complex interplay that is in constant flux. That is the message of organizational balancing.

Three major environmental changes are taking place regarding business-to-business salesforce. The first trend is the marketing discipline's shift from a product-focus to a service-focus. In response, firms are shifting their salesforce from a product-focus to providing integrated products and services or solutions to their customers. The second trend that is affecting salesforce is the enhanced utilization of technology, as technology is being used to handle some selling tasks (e.g., information provisioning). The third trend is globalization that is evolving to a stage where global salesforce originating from different countries is interacting with customers from different countries. This chapter suggests that these three trends are changing salesforce strategy, structure, and processes. The chapter reports on the decline in product-based salesforce, growth in customer-focused and global salesforce, globalization of salesforce, and the broader business and research implications. The shifts are dramatic and for researchers, it will be a new and fertile area of research.

The purpose of this chapter is to set the stage for the rest of the book. It is based on a number of interesting observations illustrating contemporary activities in regard to a broad range of sales-related topics. Among other observations are a number of developments that have followed with digitalization.

The chapter presents the core themes of the book and provides rationales for the choices. The themes are: value-based offerings, solution-oriented business, and on-going efforts of organizing to manage the multitude of issues connected to sales and marketing.

A second issue is the presentation of a framework against which to position important core issues in sales management. This includes aspects of organizational design, leadership, technology support, and more. All these are organized into four main categories. This “map” is utilized to position the coming parts and chapters.

In this chapter, six cases are presented, four from Poland and two from Hungary. The Polish cases are Partec Rockwool, PLM, Bulten Tools, and Vattenfall, while Svedala and Getinge belong to Hungary.

The cases have been described in different phases following the conceptual framework, developed in chapter six. All cases we present in three phases except Svedala where there are two phases. In the later case, neither the alliance nor the partners could be traced. Among the cases, level of performance varied. Getinge is the only case where the partners continued with the same alliance and the ownership structure remained unchanged. In Partec, the foreign partner acquired the local shares to establish a wholly owned subsidiary, and in Bulten Tool, the foreign partner became the major owner to have control over the company. Partec Rockwool and Vattenfall had been sold to other companies after amicable settlement between the partners.

When linked to human behavior and executed effectively, value-based pricing represents the most effective lever that a company has at its disposal to maximize profitability. The ability to integrate sophisticated analytics and market research in order to sell a customer the right product (and value) at the right price will drive profitability far more effectively and sustainably than other business initiatives (Marn & Rosiello, 1992, p. 84). This chapter addresses the use of analytics to determine where value resides and how to turn that analysis into an effective platform for pricing decisions. Organization-wide involvement in pricing is essential. A company must provide those persons responsible for pricing – including finance and sales persons – with information regarding the levers they can pull in the product transaction execution. Statistical business analytical software enables companies to apply microeconometrics (analytical and statistical capabilities) for the pricing and selling of products. The pricing waterfall helps companies understand where they can increase profits by using the pocket price and pocket margin to gain insights into which customer relationships can be more profitable than others. By examining the transaction structure, behavioral segmentation, and price optimization (three dimensions of the Analytics Triad), a company can conceive the full value proposition for groups of customers. An effective process and technology infrastructure that enables granular data development and analysis will help enable accurate and timely pricing decisions.

The following is an introductory profile of the fastest growing firms over the three-year period of the study listed by corporate reputation ranking order. The business activities in which the firms are engaged are outlined to provide background information for the reader.