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Selling through customer business development: P & G

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  1. Introduction
  2. Which of the sales force structures discussed in the text best describes P&G's CBD structure?
  3. From the perspective of team selling, discuss the positive as well as dome possible negative aspects to the CBD sales organization
  4. Discuss the importance of recruiting, training, and compensation in making the CBD structure more effective
  5. Discuss some ways that the CBD structure may be more effective than a single sales rep for each step in the personal selling process
  6. It seems that P&G has the most effective sales force structure of any company in its industry. Why have competitors not been able to match it?
  7. Conclusion

In the 80's, manufacturers began to spend money to better understand consumers, and P&G more than anyone. However, they never really asked, if these needs were the same in retailers. It was the period when P&G decided, to change the sales department into a more strategic department named Customer Business Development. The objective was to indicate that they wanted to work more strategically with retailers than before. If they wanted to make the difference on the point-of-purchase, instead of trying to sell the maximum, they had rather to work differently with retailers. They wanted to show that Procter wasn't only the shampoo seller, but could be also, a partner which can help them to optimize sales.

They relied on Trade Marketing theories that were popular in the 90's. Trade Marketing was defined as ?a methodical procedure carried out jointly by suppliers and retailers, whose objective is to better serve customers' needs and expectations, increase profitability and competitive position, while taking into account each other's constraints and specificity? (Randall, G. 1994: 115).

[...] They have less possibility to compare, which can be useful to improve the business. RECRUITING, TRAINING, AND COMPENSATION TO MAKE THE CBD STRUCTURE MORE EFFECTIVE Procter's vision of Human Resources is different from many other organizations. They realized that if the consumer does not do well, the company too won't do well; it is also the same concerning its employees. The recruitment is a crucial step for P&G and especially into the CBD structure. The objective is to find the right person, for the right place, at the right time. [...]

[...] Conversely, in case of trouble, the customer can easily contact a staff member. As the members of the team work together, it is easy to treat the problem or to meet the needs of the customer. Various objectives are estimated to know if they are effective or not. Observing this process leaded by the CBD team, we realize that there is a huge difference if we compare it to a single sales rep. When the CBD team benefits from the expertise of each membres on different areas, the single sales rep has only his persuasion power to make the difference. [...]

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