INSEAD Library

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Rethinking the Sales Forces Redefining Selling to Create and Capture Customer Value Contents Acknowledgments ix CHAPTER ONE. THE NEW SELLING: FROM COMMUNICATING VALUE TO CREATING VALUE I Change at Every Level 3 6 8 What's a Sales Force For? 5 Communicating Value to Customers The Value Communication Trap The New Marketing Myopia 9 Beyond the Value Slogans 12 More Benefits or Less Cost? 13 Limitations of Organizing by Size Alone The Three Types of Customers 16 When Size Segmentation Fails 20 Matching the Customer's Investment Segmenting the Sales Effort by Value Making Fatal Mistakes 28 14 21 23 CHAPTER TWO. THE NEW PURCHASING WORLD: HOW VALUE IS RESHAPING PURCHASING DECISIONS 33 The Confusing Customer 35 Value: The Common Factor in a Confusing World 36 New Realities Shaping the Buying Environment 38 How Consumer Ideas of Value Are Changing 41 Implications of Changes in Consumer Environment Changes in Business Buying 49 Lifetime Cost of Ownership 49 The Cost of Purchasing Promiscuity 51 47 The Movement toward Supplier Reduction Segmenting Suppliers 55 What Does the New Selling Look Like? 53 63 CHAPTER THREE. RESPONDING TO THE NEW BUYING REALITY THE THREE EMERGING SELLING MODES 65 Creating Value across the Buying Process 66 The Three Emerging Selling Modes 70 Value Creation Opportunity 77 What about Relationship Selling? 81 The Changing Meaning of Trust 83 Which Selling Model Is Best? 85 Matching Selling Mode to Customer Type 87 Investing in Value Creation 89 Matching Selling Strategies to Buying Strategies Breaking Out of the Buying Quadrants 93 90 CHAPTER FOUR. THE NEW TRANSACTIONAL SELLING: FROM FAT AND HAPPY TO LEAN AND MEAN 97 When There's No Value to Create 99 Transactional Sales Needn't Be Small 99 Commoditization and the Pace of Change 101 Transactional Buying Pressure 101 Surviving the Transactional Sale 103 CHAPTER FIVE. THE NEW CONSULTATIVE SELLING: FROM ROCK STARS TO INSTITUTIONAL VALUE 125 By the Mid-Seventies, the World Was Changing 127 The Three Pillars of Consultative Selling 128 When Consultative Selling Works Best 130 Why So Difficult? 130 What's Different about Consultative Selling? 131 The Rise of the Rock Star 138 The Rock-Star Trap 139 Hunters and Farmers 140 Drivers of Value Creation 146 Support, Tools, and Information 151 Applying Process Thinking to Sales 155 CHAPTER SIX. THE NEW ENTERPRISE SELLING: FROM LARGE SALES TO DEEP RELATIONSHIPS 157 The Enterprise Relationship 158 The Enterprise Offering 159 Equality in the Relationship 162 Creating Value at the Boundary 163 Assessing Enterprise Sales Potential 166 Preconditions for a Successful Enterprise Relationship 167 Initiating an Enterprise Relationship at the Top 177 Starting at the Top: How IBM and Monsanto Searched for Enterprise Value 178 Due Diligence: Preparing the Enterprise Ground 180 Making Enterprise Relationships Work 181 Alignment of Value Creation Skills 183 Maintaining the Enterprise Relationship 183 The Future of the Enterprise Sale 185 CHAPTER SEVEN. SALES PROCESS: LIGHT IN THE LONG DARK TUNNEL Process 101 188 Boundary Problems 189 Process in Enterprise, Transactional, and Consultative Sales Process in the IBM Enterprise Sale 193 Enterprise Process: The Logical Next Step 196 Breaking Down the Sales and Marketing Silos 197 Process in the Hewlett-Packard Transactional Sale 199 Process in the Consultative Sale 202 Where's the Process Problem? 204 Into the Long Dark Tunnel 204 The Idea of "Individual Process" 206 Designing Individual Process 207 The VIP Process 215 Seven Characteristics of a Good Sales Process 217 Process As Institutional Value 219 187 192 CHAPTER EIGHT. RETHINKING CHANNELS TO CREATE AND CAPTURE VALUE 221 Channel Role in Value Creation 225 Develop Channel Value Creation Potential 227 Channel Conflict The Future of Channels 242 248 CHAPTER NINE. CHANGING THE SALES FORCE Caution 1: It Takes Longer Than You Think 252 Caution 2: There's No Silver Bullet 253 Caution 3: You Can't Hire Your Way to Capability 253 Caution 4: You Can't Improve Salespeople without Improving Sales Management 254 Four Change Levers 255 Metrics for the Transactional Sale 284 Metrics for the Consultative Sale 287 Metrics for Enterprise Sales 292 Wake up Rip Van Winkle! 295 249 Index 297