RE: Death of a Salesman … Let Prospects Sell Themselves

 

Traditionally, the reason that firms have employed and put such a large emphasis on the roles of salespeople is because they add value to a transaction. Before computers and the Internet became a necessity, knowledge of different products was conveyed through salespeople as the only medium. However, Tema Frank argues in her blog post, Death of a Salesman … Let Prospects Sell Themselves, that the utilities of a human sales fleet can be duplicated and refined by computers, and at a lower cost too. She uses the company Calgary’s Optimum Energy Products Ltd. as an example, and outlines the profitability and growth of the company over the last decade despite lack of any outside sales staff. Her main arguments are outlined below:

  • Humans make more mistakes than computers do. By automating the boring tasks you free up staff to spend time on things computers don’t do well, like understanding and solving unusual customer problems.
  • Make sure your website provides information relevant to both the end user and the person who’s going to pay. These may not be the same people, especially in the B2B world.
  • Make everything SEO (search engine optimization) friendly. That includes your catalogues, photos, videos and web pages.
  • What customers really want is: knowledgeable staff, speed, convenience, and a good flow of information between you and them. Automation can help you deliver all of these well.

I argue that it does not make sense for every business to eliminate an outside sales staff, and depend its business operations solely on e-commerce and sales automation. The benefits of human personal selling are often intangible. Sure, you can measure the sales revenue generated by each salesman individually, but a lot of the benefits reaped from personal selling is difficult to measure on paper. While the educating and providing advice, and increasing convenience for customers aspects of personal selling can be replicated through computers, the aspect of salespeople building long-term relationships with customers is difficult to reproduce. Not only do salespeople in stores improve convenience for customers by assessing inventory, setting up displays for visuals, and writing orders, but their most important contribution by far is relationship selling, which is focusing on maintain a relationship over a long-term horizon and investing in mutually beneficial opportunities. Without the human element, there is nothing enticing consumers to be loyal to your firm. In terms of generating leads, and the pre-approach process using CRM systems, there is definitely value in incorporating computers. However, sealing the deal is best left to Homo sapiens.

The Importance of a Sales Pitch:

Quebec Market Tricky For Target Corp.

Target Corp. expanding into different Canadian regions is a textbook example of segmenting a broader overall market, and meticulously positioning your products in a way that is relatable to that specific market. The article can be read at the following:

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/target-take-note-quebec-market-tricky-for-outsiders/article9259193/

Consumer attitudes in Quebec have always been distinct relative to the rest of the nation. Patriotism has obviously been a perennial concern of the French-speaking province, and that same brand loyalty applies when residents are making purchase decisions. There is an “intense resistance to switching brands, and Québécois are also far less welcoming of things that are considered foreign. However, with challenges come opportunities. Scrupulous research conducted concluded that Québécois put a much larger emphasis on “taking measures to simplify life,” and Target has realized that traditional marketing value propositions of telling a company’s entire story just will not work in Quebec. Rather, make your message simple and maybe they will pay attention.

My question is, do the benefits of expanding into the French-speaking province outweigh the costs? Geographic and demographic segmentation was taken into consideration, but the psychographic and behavioral aspects of Québécois also differ from the rest of Canada to such an extent that Target Corp may need to tailor its offering and marketing initiatives specifically for Quebec. Even if so, the loyalty and lifestyle differences of Québécois may make Target’s marketing initiatives futile. Target is displaying locational excellence in opening stores all over Canada, but is pursuing a French-speaking province that is likely to reject your offering anyway really worth it? Give me your thoughts below.

Re: McDonalds McCafe

In response to Christy Tang’s blog post regarding McDonalds McCafe, I completely agree with her viewpoint that the quality and taste of McDonalds coffee is subpar relative to other brands, yet, I don’t believe it was ever McDonalds’ intention to create a premium blend coffee that will out-rival the eminence of competition such as Starbucks Coffee Company in the coffee industry.

Coffee’s line-up of McCafe products essentially increases the product mix breadth of the brand. As a study states that “54% of Americans over the age of 18 drink coffee everyday,” obviously gaining market share in the coffee industry is a substantial market opportunity. However, I believe the decision to establish the company’s own coffee line was primarily stimulated by the goal of increasing sales of McDonalds’ more traditional items. What establishing a coffee-line essentially does is diversify McDonalds’ offering, in attracting a larger, broader target market, as well as increase the value of its offerings to consumers. By offering a variety of coffees that rival competitors in selection, McDonald’s has become a single hub that satisfies all consumer cravings of a fast-meal as well as caffeine, increasing convenience for a time-sensitive population, and in effect, increasing the value of its offering. From my own experience, prior to the introduction and revamp of the McCafe line-up, I know that when I was under time-constraints in the morning, I would stop at Starbucks for a coffee and rush to wherever I was headed with an empty stomach. With the introduction of the McCafe line, I am now able to pick-up food and caffeine in the same amount of time. Essentially, a coffee-line has translated to an increase in sales of the company’s food items, which would otherwise be forgone. While coffee-supremacy in terms of quality can be a contentious topic, it can be agreed upon that offering coffee in its stores definitely increases the convenience to consumers.