6 Strategy and Alignment Flashcards
What is the main issue with the new salesperson’s approach?
They are promising lower prices to win deals, which reduces revenue and profit
What is the purpose of a sales strategy?
To provide guidance on how to compete for and win opportunities
Why is it important to be a purist in sales strategy?
To ensure consistency and alignment in all sales efforts
What distinguishes sales approaches from sales strategies?
Sales approaches are methods used, while strategies are overarching plans for competition
What are the two major sales strategies mentioned?
- Transactional strategy
- Consultative strategy
What characterizes a transactional strategy?
Designed to provide clients with what they need without complications
What type of clients is a transactional strategy best suited for?
Clients who buy frequently and where product failure has low consequences
What is an example of a transactional strategy?
Selling cheap computer chips with direct orders
What does a consultative strategy focus on?
Providing advice and recommendations to help clients make informed decisions
When is a consultative strategy most effective?
When clients need counsel for significant decisions with potential negative consequences
What is a major risk of allowing salespeople to deviate from the chosen sales strategy?
It can harm results and disrupt the company’s delivery model
What can result from using the wrong strategy in a sales force?
Failure to grow revenue and loss of effective salespeople
What are the three strategies from the book ‘The Discipline of Market Leaders’?
- Always have the lowest price
- Always have the best product
- Customer Intimacy
What is the challenge of maintaining a low-price strategy?
It requires concessions from suppliers and employees
What defines the ‘Customer Intimacy’ strategy?
Providing customized solutions and deep understanding of client needs
What is predatory pricing?
Setting low prices to capture market share and then raising them later
What is the main goal of a land grab strategy?
To capture clients quickly to prevent competitors from gaining market access
What is competitive displacement?
Displacing a competitor by addressing unmet client needs
What is the first step in a displacement strategy?
Capturing mindshare by explaining changes in the client’s environment
What does the champion-challenger strategy involve?
Taking part of a client’s business while leaving their existing supplier in place
Fill in the blank: A __________ strategy is designed to provide clients with advice to improve their results.
consultative
True or False: A transactional strategy involves high-pressure sales tactics.
False
What is the risk of a transactional strategy in high-stakes environments?
It may lead to significant negative consequences for the client
What is the champion-challenger strategy?
A strategy that captures some of a client’s spending while leaving their existing supplier in place, forcing the champion to work harder.
