[...] No waves
disturbed their journey. Especially the last decade this calm sea turned into a world of waves,
the tips of the waves blinking white, a sign for a restless sea and a build up of higher waves.
The Internet brought many companies into permanent white water, the ever changing business
environment. They need to adapt in order to remain profitable and secure survival. The
Internet is a type of global information infrastructure consisting of computer hardware and
software that is characterized as both general and open (Peterson, Balasubramanian and
Bronnenberg, 1997). In this definition “general” refers to the fact that the Internet has not
been designed for one particular set of services. “Open” implies that all specifications
necessary to use the Internet are publicly available. In other words, the Internet is a network
of networks. The Internet is a rapid growing phenomenon. One of the most fascinating
elements has been its amazing growth. The Bureau of Economic Analysis (2000) found that
U.S. consumers and businesses spending on information technology was about 10 % of the
U.S. gross national product (GDP) in the year 2000 compared to a merely 1.5 % in 1981. The
present popularity of the Internet as a commercial medium is due to its ability to facilitate
global sharing of information and resources, and its potential to provide an efficient channel
for advertising, marketing, and even direct distribution of certain goods and information
services. The Internet has been called the most important new marketing medium since
television. The use of the Internet allows companies to identify their customers, differentiate
them, interact with them, and then customize programs that will heighten customer
satisfaction and loyalty (Groossman, 1998). The Internet has radically changed the way
companies do business. For instance, it can be used as an effective business-to-business tool
to increase collaboration. Therefore, the main problem statement this paper answers is : What
is the effect of the Internet on Sales management?
First, the general advantages and disadvantages of the Internet will be discussed. Second, the
effect of the Internet on the buyer-seller relationship are enlightened. Third, change in the
sales representative’s job are elaborated on. After that a proposal is made to effectively
integrate the Internet in the sales force activities. The paper ends with a short conclusion.
Table of Contents
Introduction
The Advantages and the Disadvantages of the Internet
The Buyer-Seller Relationships
Impact of the Internet on the Sales Force
Practical Implications
Conclusion
Objectives and Topics
This paper examines how the integration of the Internet has transformed traditional sales management practices and influenced the dynamics between buyers and sellers. It addresses the overarching research question regarding the specific effects of Internet technology on the effectiveness and operational strategies of sales forces in a modern business environment.
- Analysis of general advantages and disadvantages of Internet integration in sales.
- Examination of the shift toward relational exchange in buyer-seller interactions.
- Evaluation of changing sales representative skill sets and the trend toward consultative selling.
- Case study insights into recruitment, training, and sales force automation.
- Strategic recommendations for aligning sales management with Internet capabilities.
Excerpt from the Book
Impact of the Internet on the Sales Force
The increased use of the Internet in the business arena has altered the sales function. In the old days salespeople were order takers. These are salespeople who specialize in maintaining existing business, this implies taking routine orders from established customers (Ingram, Laforge, Avila, Schwepker, and Williams, 2001). Nowadays, the salespeople act more like consultants, spending more time on trying to solve customer's problems and less time on pushing products. "Customers do not want glad-handers, they want well-rounded partners who can help them build their businesses" says T.J. Coombs, an all-star sales executive at GNB Technologies (Marchetti, 2000). According to the CEO at MOHR Development who conducted a study called "Sales Competencies for the 21st Century" the number of business-to-business salespeople who concentrate only on straight selling has dropped by one-third over the past five years and will drop even more in the near future (Clark and Callahan, 2000).
Summary of Chapters
Introduction: This chapter introduces the "white-water" metaphor for the modern business environment and establishes the paper's focus on the impact of Internet technology on sales management.
The Advantages and the Disadvantages of the Internet: This section details how the Internet facilitates cost-effective communication and disintermediation while addressing concerns regarding consumer privacy.
The Buyer-Seller Relationships: This chapter explores the shift from discrete, transactional selling toward long-term relational exchange models driven by increased communication.
Impact of the Internet on the Sales Force: This chapter highlights the evolution of the salesperson from an order taker to a consultative partner requiring high-level analytical skills.
Practical Implications: This chapter provides real-world examples of how companies like DresdnerKleinworthWasserstein and Mercedes-Benz use the Internet for recruitment, training, and CRM.
Conclusion: This chapter summarizes the paper's findings, emphasizing that Internet integration is essential for companies to remain competitive and efficient in their sales operations.
Keywords
Internet, Sales Management, Buyer-Seller Relationship, Consultative Selling, Disintermediation, Relational Exchange, Sales Force Automation, Customer Relationship Management, Business-to-Business, Sales Competencies
Frequently Asked Questions
What is the primary focus of this paper?
The paper primarily explores how the adoption of the Internet has fundamentally changed sales management strategies, tools, and the professional requirements for sales representatives.
What are the central themes discussed in the work?
Key themes include the shift in marketing communications models, the transition of buyer-seller relationships toward relational exchange, and the strategic automation of sales force activities.
What is the main research question?
The study seeks to answer: "What is the effect of the Internet on Sales management?"
Which methodology does the author employ?
The paper utilizes a literature-based academic review combined with practical industry case studies to evaluate the operational impact of Internet technology.
What topics are covered in the main body?
The main body covers the economic advantages of the Internet, the shift in relationship models, evolving sales competencies, and specific practical applications in recruitment and training.
Which keywords characterize the work?
The work is characterized by terms such as consultative selling, relational exchange, sales force automation, and business-to-business strategy.
How does the Internet influence buyer-seller dynamics according to the text?
The Internet shifts the dynamic toward relational exchange by facilitating deeper communication, reducing transactional friction, and fostering mutual dependence through shared information.
What role does the "BRAIN" program play for Mercedes-Benz?
It acts as an internal knowledge management system that allows the company to store answers to customer queries and learning modules, ensuring uniformity and reducing training costs for sales staff.
- Quote paper
- Tomislaw Dalic (Author), 2001, The Effect of the Internet on Sales Management, Munich, GRIN Verlag, https://www.grin.com/document/15633
