Integrated Product and Sales Management in B2B : Developing, Managing and Selling Technology Based Industrial Products Profitably

This book describes the advantages of a high level of integration between product and sales management. It explains how highly integrated product and sales management can be achieved. Claus Tintelnot depicts the classic organizational models and provides examples of how these can be supplemented, fundamentally adapted and supported by digitalization. Best and worst practice examples indicate where classic management fails and show how integrated management can do better. Managers can only act as role models for an integrated team if they share the same attitude to leadership and pursue a common strategy. Business goals that need to be achieved can only be shared by integrated product and sales management and one avoids employees being worn down by the hurdles caused by inter-departmental boundaries. The book is aimed at practitioners in the fields of corporate management, strategy, product management, sales and interested readers from other areas of the supply chain. Without an adequate supply chain and fitting communication to the customers, B2B businesses cannot be successful and profitable. Students of business administration, economics, industrial engineering, business engineering, computer science for IT/ OT and other engineering disciplines will have a worthwhile read as well. Preface Contents 1 Classification of Integrated Product and Sales Management Abstract 1.1 Corporate Strategy 1.1.1 Defining a Business Mission 1.1.2 Achieving Expected Business Success 1.1.3 Partnerships for Achieving Corporate Goals—Make or Buy, Company Foundation or M&A 1.2 Leadership, Management, and Self-Management 1.3 Organization of Product and Sales Management 1.3.1 Organization of Product Management in the Matrix 1.3.2 Organizational Structures for Product and Sales Management References 2 Product Management Abstract 2.1 Basics of Product Management 2.2 Strategic Core Functions and Tasks of Product Management 2.2.1 Competitive Strategy 2.2.1.1 Factors Influencing Competitive Strategy 2.2.1.2 Technology Competence of Competitors 2.2.1.3 Price Competition and Management 2.2.2 Product Strategy and Innovation Management 2.2.2.1 Price Positioning 2.2.2.2 Product and Performance Focus 2.2.2.3 Innovations and Synergies—Standardization Versus Individualization 2.2.2.4 Service as Differentiation and as a Business Model 2.3 Market Strategy 2.3.1 Strategic Planning Scenarios and Objectives 2.3.1.1 Market Research for Customer Behavior and Needs 2.3.1.2 Market Research for Competitor Behavior and Their Offerings 2.3.2 Product and Service Planning 2.3.2.1 Product and Service Roadmap 2.3.2.2 Medium and Long-term Planning 2.3.3 Product and Service Controlling 2.4 Product Creation Process and Value Chain up to Market Launch 2.4.1 Research—Basic Research and Applied Research (Basic Development) 2.4.2 Technology development 2.4.3 Pre-development and Product Development 2.4.4 Development of Hardware, Software, and Services—Influence of Digitalization and Industrial IoT 2.4.4.1 Development with Target Costing 2.4.4.2 Commercial and Technical Value of a Solution 2.4.5 Product Types and Appropriate Product Development 2.4.5.1 Development of Standard Products and Components with Long-term Planning 2.4.5.2 Development of Customer Specific Products—Solution Business 2.4.6 Classic Product Development Versus Agile Development Methods 2.4.6.1 Classic Methodical Product Development with Evaluation Steps and Gates 2.4.6.2 Agile Development Methods 2.4.7 Problem Solving and Innovations through Knowledge and Creativity Techniques 2.4.8 Partnerships and Contracting out in Product Development 2.4.9 Laboratory Tests, Approvals, Listings, and Patent Applications 2.4.10 Parallel Development of Product and Production Technology—Simultaneous Engineering 2.5 Market Launch and the Roles of Product Management, Sales, and Marketing 2.5.1 Internal Training for Own Sales Staff, Sales Representatives, and Distributors 2.5.2 Industry, In-house Exhibitions, and Web Presence (Digital Touchpoints) 2.5.3 Individualization of Products and Services in B2B 2.5.3.1 Customer Specific Products 2.5.3.2 Individual Project Business such as Special Machinery and Plant Engineering 2.5.3.3 Special Components and Subsystems (OEM Business) 2.6 Commissioning, Maintenance, and IIoT Services 2.7 Product Life Cycle, “End of Life” of Products, and Requirement for Durable Products 2.8 Evaluation and Risk Assessment—Selected Tools for Product and Sales Management 2.8.1 Risk of Innovations according to Specht and Beckmann 2.8.2 Project Evaluation according to Arthur D. Little 2.8.3 SWOT Analysis 2.8.4 Strengths-Weaknesses Profiles with “Pros and Cons” 2.8.5 Success Factor Analysis 2.8.6 ABC Analysis for Classification of Products, Customers, and Other Services 2.8.7 Strategy Portfolios 2.8.7.1 Strategy Portfolio According to BCG (4-Field Matrix) 2.8.7.2 McKinsey Strategy Portfolio (9-field Matrix) 2.8.8 Waterfall vs. Pie Charts 2.9 Weaknesses of Product Management—Organizational Responsibilities Anchor 60 References 3 Sales Management Abstract 3.1 Sales Strategy and Objectives—What is Sales? 3.2 Competitors and Own Company—Customer Surveys 3.3 Differentiation from Competitors 3.3.1 Differentiation Through Product Offerings and Service 3.3.2 Differentiation Through Branding 3.4 Decision-Makers at the Customer and Influencing Factors 3.5 Sales Organization and Sales Control 3.5.1 Organizational Structure and International Sales Territories with Subsidiaries in Direct Sales 3.5.2 The Dilemma of the Matrix—Products, Industries, and Regions or Countries 3.5.2.1 Customers in the Value Chain in B2B and B2D 3.5.2.2 Field Sales for Direct Business in B2B 3.5.2.3 Specialized Sales for Direct Business of Products and Services in B2B 3.5.2.4 Key Account and OEM Support for Direct Business in B2B 3.5.3 Multichannel Distribution 3.5.3.1 Indirect Sales via Representative and Distributers—B2D2B 3.5.3.2 E-commerce with Sales Portals and Integrated Systems in B2B, B2D, and C2O 3.5.3.3 Project Business with Customers, End Customers or Plant Operators 3.5.4 Sales Steering with Customer Prioritization 3.5.4.1 Sales Control with International Pricing 3.5.4.2 Sales Steering with Sales Back-office 3.5.4.3 Value- and resource-oriented Sales Management 3.6 Target Agreements in Sales—Motivation Through Salary, Bonuses, and Incentives 3.6.1 Bonus System and Performance Measures 3.6.2 Target Agreements 3.6.3 Control Measures to Prevent Bonus Manipulations 3.7 Sales Controlling, Reporting, and Supply Chain Management 3.7.1 Basic Aspects of Controlling-Based Sales Management 3.7.2 Controlling of Revenue and Margin Development 3.7.3 Sales Reporting 3.7.3.1 Revenue, Cost, and Profit Planning 3.7.3.2 Deviations from the Plan and the Budget 3.7.3.3 Monthly Reporting with Highlights and Lowlights 3.7.4 Planning Calendar and Sales Forecast 3.7.5 Sales Process with CRM Systems, Digital Touchpoints, and Print Media 3.8 Sales Training and Coaching 3.8.1 Product and Service Trainings 3.8.2 Improving Sales Process and Personnel Development 3.8.2.1 Individual Sales Coaching 3.8.2.2 Individual Personality Coaching for Sales Staff and other Functional Areas Anchor 42 References 4 Customer Contact and Sales Conversation Abstract 4.1 Building and Maintaining Relationships (Relationship Management) 4.2 Cultural Fit—Appearance in Sales—Compliance 4.2.1 Kindness and Empathy with Customers 4.2.2 Appearance in Sales 4.2.3 Compliance 4.3 Sales versus Consulting 4.4 Who is the Right Contact Person at the Customer? 4.4.1 Selling-Center Meets Buying-Center 4.4.2 Decision-Maker Pyramid—Speaking Time with Influential People 4.5 The Sales Conversation and the Customer Relationship 4.5.1 Salesmen Personalities 4.5.2 Forms of Personal and Impersonal Sales 4.5.3 Preparation and Follow-up of Customer Contacts with CRM Systems 4.5.4 Cold Acquisition versus Hot Acquisition 4.5.4.1 Cold Calling with Software Support and Telephone Contact 4.5.4.2 Warm Acquisition—Sales Leads, Funnel, Pipeline 4.5.5 Technical Articles and Conference Contributions 4.5.6 Customer Visits or Video Conferences with Appointment and Offers 4.5.6.1 Preparation of Customer Visits—Travel Planning, Samples, and Presentations 4.5.6.2 Sales Conversations—Who is Likely to Participate and Who Should Participate? 4.5.6.3 Touchable Samples and Product Presentations with Software 4.5.6.4 Accelerate and Record Sales Negotiations 4.5.6.5 Follow-up in Sales Processes 4.5.6.6 Customer Retention and Effort for Customer Recovery 4.6 The Offer and the Purchase Agreement 4.6.1 Offer Price, Invoice Price, and Conditions 4.6.2 Purchase Contract, Work Contract, Terms and Conditions, SLAs, Liability, and Listings 4.6.3 Customer Inquiry Management 4.7 Customer Journey and Customer Experience 4.7.1 Sales is the Voice of the Customers within the Company 4.7.2 Customer Satisfaction with Product or Service—Pre- and After-Sales 4.7.3 Customer Satisfaction with Delivery Performance, Payment Terms, Payment Arrears, and Complaint Processing 4.7.4 Customer Satisfaction Studies Based on Customer Surveys 4.8 Work-Life Balance Anchor 37 References