23E50010 - Managing Value-Based Selling, 27.10.2020-09.12.2020
This course space end date is set to 09.12.2020 Search Courses: 23E50010
Topic outline
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Most companies are in the middle of moving their business practices toward service-based exchange, proactive evidence of customer business value, and ecosystem-based value creation. Related skills are in great demand: Business management needs to update their mindset and capabilities to succeed in the transformation. Specifically, B2B selling and sales management need new skills, tool and processes to succeed in the new business environment.
The “Managing value-based selling” course focuses on contemporary B2B selling and sales management from an organizational perspective. The course views selling as a proactive business function that seeks to identify, communicate and agree for joint value creation opportunities by showing how the supplier's capabilities, products and services combined with the customer's capabilities help customers achieve their goals.
The course content builds on a view that suppliers and customers integrate their capabilities and resources to create value. The task and goal of the sales function is to 1) identify value creation opportunities, 2) communicate the value creation opportunity to key stakeholders in the customer organisation, structure and agree on the roles, responsibilities and rules for the joint value creation, and finally agree on how the valued created is shared among the participants.
The influencing task of the sales function is described as an organised system of sales activities, which are supported by (digital) tools and sales skills. Central to the value-based selling is value proposition, which the sales function builds, communicates, and adapts during the buyer-seller interactions.
The proactive influencing by the sales function is organised into a framework of sales, key account management, sales opportunity management, and sales funnel management processes, which all link to the customer's buying and procurement processes.
Learning Outcomes
The participants will learn how to plan, perform, and manage contemporary B2B sales. The course develops knowledge, skills, and tools to build an effective sales function, develop market-driven value propositions, and evaluate and coach sales quality. The course also teaches customer value (and value proposition), which lay the foundation for the business-to-business exchange. Further, the participants will learn about the changing role of sales as cross-disciplinary function in a networked (ecosystem-based) value creation.
Assignments
The course teaching leveraged a versatile set of learning methods, outlined below:
- Online activities (Online pre-learning module, short introductory videos on the key concepts)
- Article reviews (in-class activity, in groups of 2-4 students)
- Learning cases (visiting business guest speakers from sales consulting and professional services industries)
- Learning diary (1-page summary of a key topic in a pre-specified format)
- Course essay (group activity in groups of 2 students)
- Course exam
For details & dates, see the course schedule page.
Scope 6 Cr-
Student must submit this questionnaire to complete it
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There will be ten meetings between 27.10 and 1.12. Each session involves preparation work (such as watching an introduction video and/or reading an article on the topic), group presentation on a topic of the meeting, optional guest lecture, and summary presentation & group discussions on the day's topic.
The attached table defines the dates, meeting topics, research article to be presented by students, and the optional guest lecture.
Please note that on 12.11 there is no lecture meeting, but individual assignment instead.
Time Title Interactive lecture topic Online learning module Quiz Pre-reading and presentation articles Guest presentation Learning diary Meeting 1: Tue 27.10.2020
10:15 - 12:00Value creation in business relationships The role of sales in contemporary networked value-focused business relationships is to communicate a value proposition for joint value creation relationship. The first session introduces the course structure and the key concepts AND outline the different elements of sales management Online learning: "Introduction to value-based selling" The changing landscape of B2B selling Meeting 2: Thu 29.10.2020
10:15 - 12:00Organizational buying and selling connected Organizations buy solutions and services when implementing change. Fundamental to selling is to understand buying and decision making. Selling connects these processes to influence. Video: "Why and how customers buy?" Quiz "Why and how customers buy" Customer value propositions in business markets Goals and buying Meeting 3: Tue 3.11.2020
10:15 - 12:00Influencing by sales 1 The different activities of a structured value-based sales approach. The range of digital tools supporting the sales activity system. Video: "5 Steps of proactive selling" Quiz "5 steps of proactive selling" Selling solutions by selling value Meeting 4: Thu 5.11.2020
10:15 - 12:00Influencing by sales 2 Inside the sales process: People, value, and control Video: "3 Sales focus areas: People, value and control" Quiz "3 sales focus areas" The end of solution selling Proactive and structured influencing Meeting 5: Tue 10.11.2020
13:15 - 15:00Individual sales skills Individual sales skills are needed when implementing the customer-facing sales activities at the different stages of the overall sales process. Video: "Individual sales skills" Quiz "Individual sales skills" Tiebreaker selling Kalle Reunanen, Founding Partner, Innomaatti Oy Individual sales skills Meeting 6: Thu 12.11.2020 NO LECTURE Read & review an article "Value-based selling: An organizational capability perspective" Article review Meeting 7: Tue 17.11.2020
10:15 - 12:00Sales opportunity management When selling solutions with high cost of sales, and important managerial task is to prioritise between available sales opportunities to ensure best use of resources. Pre-learning: Sales opportunity management Quiz "Sales opportunity management" Value-based selling: An organizational capability perspective Meeting 8: Thu 19.11.2020
10:15 - 12:00Opportunity funnel management The opportunity funnel management provides the process and tools to manage the entire portfolio of active sales opportunities. Pre-learning: Sales funnel management Quiz "Sales funnel management" Assessing value co-creation and value capture potential in services: a management framework Pekka Moisio, VP Sales Development, Valmet Technologies Sales funnel & opportunity management Meeting 9: Tue 24.11.2020
10:15 - 12:00Customer portfolio & relationship management Customer portfolio and relationship management is the third element of the operational sales management function. Pre-learning: Key account management Quiz "Key account management" Managing the co-creation of value Meeting 10: Thu 26.11.2020
10:15 - 12:00The changing role of sales An effective sales organization has clear and measurable goals, roles, customer allocation, and performance management practices. This modules completes the sales management picture by introducing the resource management elements. Aligning mindset and capabilities. Meeting 11: 1.12.2020
10:15 - 12:00Summary & instructions Key learnigs from the course. Instructions for the exam. Transitioning from product to service-led growth in manufacturing firms: Emergent challenges in selecting and managing the industrial sales force Exam: Wed 9.12.2020 09:00 - 12:00 -
The first module paints the "big picture" of sales & sales management as part of the inter-company value creation.
TUESDAY:
Value creation in business relationships: The role of sales in contemporary networked value-focused business relationships is to communicate a value proposition for joint value creation relationship. The first session introduces the course structure and the key concepts AND outline the different elements of sales management. Preparation for the meeting includes two activities: 1) read the the "the changing landscape of B2B selling" and 2) watch the very short video "Introduction to value-based selling".
1. Pre-reading article: the changing landscape of B2B selling
2. Video: Introduction to value-based selling. This video very briefly explains the focus areas of the modules 2 & 3, which teach the essentials of value-based selling as a part of an overall strategic marketing framework (this videos have been done in cooperation with Aalto Executive Education).
Here's a link to the presentation material.
THURSDAY:
Organizational buying and selling connected: Organizations buy solutions and services when implementing change. Fundamental to selling is to understand buying and decision making and salling can be used to influence these. PREPARATION for the day involves 1) reading the article discussion customer value propositions in business markets, 2) watching a video "Why and how customers buy" and 3) answering five "Quiz" questions. The, summarise your learning by writing a short reflective essay on week's learning.
1. Pre-reading & presentation article: "Customer value-propositions in business markets"
2. Video: Why and how customers buy?
4. Quiz: Why and how customers buy? The quiz is activated at 12.00 and closed at 13:00. You have 20mins to answer 9 true/false questions.
5: Learning diary: Write a short reflective online learning diary on "Customer goals & buying process"
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The second module is about sales as proactive and structured process to drive and influence buying.
TUESDAY:
Influencing by sales 1: The different activities of a structured value-based sales approach. The range of digital tools supporting the sales activity system. Preparation for the day includes two activities: 1) watch the video "5 steps of proactive selling" and 2) read the article "Selling solutions by selling value". The article outlines the content & structure of both buying and selling processes by stage and their connections. The article also discusses the timely challenge of moving from reactive selling to proactive value selling.
Link to the video: 5 steps of proactive selling
Prereading & presentation article presentation: "Selling solutions by selling value". This article outlines the stages of buying and selling, and create a platform for getting into specifics of activities within the proactive selling model.
Link to the presentation material: Influencing with sales 1, and another link to the sales tools description, which we will use in a breakout session.
Link to the quiz: 5 steps of proactive selling
THURSDAY:
Influencing by sales 2: Inside the sales process: People, value, and control. Preparation for the day involves watching a video "3 sales focus areas", reading the article "The end of solution sales".
Link to the video: Three sales focus areas: People, value, and control
Pre-reading and presentation article presentation "The end of solution sales". This article rather provocatively argues that a successful seller challenges rather than explores customer's views.
LInk to the presentation material
After the day's meeting, take the quiz: Inside the sales process
Learning diary: Write a short reflective online learning diary on "Proactive & structured influencing"
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The third module is about individual selling skills.
TUESDAY:
Individual selling skills: Individual sales skills are needed when implementing the customer-facing sales activities at the different stages of the overall sales process. Preparation for the day includes two activities: 1) watch the video "Individual sales skills", take the quiz, and read the article "Tiebreaker selling". The article discusses possibilities to differentiate when selling undifferentiated products and services.
Article presentation: "Tiebreaker selling"
Guest speaker: Kalle Reunanen from Innomaatti Oy. Kalle has about 15 years of professional sales management training experience, and a long career in professional solution and value selling and business management before his coaching career. The recording of Kalle's presentation is here. Please do not copy or share. Let me know, if you would like me to remove the video.
I have also prepared some background material on trust, questions, and sales process control. In the material I have a drawing showing 5 categories of questions, but a newer video I have integrated the first two into "Needs identification", which is about understanding goals, pressure and opportunity for a change.
The video introduction for the day is "Individual selling skills" and the quiz of day is "Individual selling skills". The quiz opens at 13:00 and closes at 18:00. The quiz is based on the video content only.
THURSDAY:
We have NO LECTURE on Thursday
The learning assignment for Thursday is to read the article "Value-Based Selling: An organizational capability perspective" and write a learning diary by reviewing the article. This article is rather successfully receiving citations as a holistic description of how to prepare, how to conduct, and how to leverage value-based selling.
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The fourth module is about the tools and processes for managing important individual sales cases and managing the entire portfolio of ongoing sales cases.
TUESDAY:
Sales opportunity managements: When selling solutions with high cost of sales, and important managerial task is to prioritise between available sales opportunities to ensure best use of resources. Preparation for the day is done by reading a whitepaper "Sales opportunity management" (in Finnish or in English) and taking the quiz on opportunity management. The white paper outlines the key concepts and processes for sales opportunity management.
Article presentation: "Value-based selling: An organizational capability perspective". This is the article that you have already read and reviewed, and we have an opportunity reflect the three stages of VBS.
The presentation material is also available. The material covers both sales funnel management and sales opportunity management, to prepare for our guest speaker on Thursday.
THURSDAY:
Sales funnel management. The isles funnel management provides the process and tools to manage the entire portfolio of active sales opportunities.
Preparation for the day is to read the article "Assessing value co-creation and value capture potential in services: A management framework". This paper extends the earlier discussed buying and selling process structures into management processes. As we have no article presentation, it would be rather important to read this paper to be well prepared for the guest speaker presentation.
The funnel management quiz is based on the lecture material from Tuesday. You need this picture in a break out room exercise.
Guest speaker: Our guest speaker is Pekka Moisio from Valmet Technologies. Pekka is a Vice President of sales development, and has an extensive experience of transforming the way Valmet sales solutions and services. Valmet has been developing the value and solution selling capability and sales management for years with very good results.
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The fifth module is focusing on how selling is changing toward partnership management in a tightly integrated network of companies.
TUESDAY:
Customer portfolio & relationship management: Customer portfolio and relationship management is the third element of the operational sales management function. Preparation for the day is done by reading the presentation article "Managing the co-creation of value". The KAM Quiz will be based on the lecture material.
Article presentation: "Managing the co-creation of value".
THURSDAY:
The changing role of sales. An effective sales organization has clear and measurable goals, roles, customer allocation, and performance management practices. This modules completes the sales management picture by introducing the sales performance management.
Article presentation: "Aligning the mindset and capabilities at multiple customer interfaces". This article demonstrates that while changing the business mindset and associated capabilities within a firm faces many barriers, success requires similar changes in the connected firms as well. Please read the presentation article, paying attention to conflicting business logics and the multi-dimensional change between mindset and ability, inside a firm, and among connected firms.
The Quiz will be based on the lecture material and the pre-reading article.
Then final learning diary is about key account management and sales performance management.
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The closing module is summarising the course content, racially focusing on the boundary spanning role of the sales organisation in identifying joint value creation opportunities. Also the institutional challenges relating to the change are discussed.
Instructions for the remaining steps to complete the course are presented.
TUESDAY:
Lecture presentation: The evidence-based management of proactive selling in collaborative value creation. Instructions on course essay and final exam.
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Article reviews are done in groups of 2-4 students by reading the assigned article and preparing a short presentation on the key points. The presentation structure typically includes the following elements?
1. What is the article about? What was studied & why was it important to study?
2. What were the results of the article? What concepts, frameworks, models, or theories did the article come up with?
3. What would you like us to learn of the article?
4. What is your opinion of the article? What was good & interesting, what was not?
After your presentation, please submit your presentation as a pdf file into the submit box.
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The course essay is (preferably) written in groups of three. The preferred essay topic is to review a solution sales methodology book. The target size is about 7-10 A4 pages. I have a selection of books to borrow for review, including "Customer-Centric Selling", "Solution Selling", and "The New Strategic Selling" which all give an excellent overview & details of a contemporary methodology for solution selling.
Completion deadline for the essay is 31.1.2021.
Within your group, each group member selects a topic to review, one topic per person.
ESSAY STRUCTURE
INTRODUCTION- What are the topics you review and why?MAIN CONTENT (one chapter for each topic reviewed)-Explain the topic: Key concepts, frameworks, and models-Discuss the topic: How relevant, how practical, how easy to learn and implement, …DISCUSSION AND CONCLUSIONS-How would you like to summarize the book against what you have learned duringthe course-How would you compare the book against your previous experience?-What important elements of modern selling the book is not discussing (if any)?List of REFERENCES (if any)ESSAY ASSESSMENT CRITERIAStructure-Organization of the content-Focus and integration of the paragraphsPresentation-Text flow & language,-Clarity and maturity of expression: don’t just say something is important but explain why; if you claim something, give proof (references or other evidence)-Relevance of content: (everything you say should support you argument, do not copy & paste just to create content, …)-Referencing (the way the authors use sources, for example, smart quotation)Originality-Independent, reflective, and critical thought -
Once every week, you are requested to reflect on your learning by answering three questions:
1. In your opinion, what were the key topics of the day's session and why? Please refer to the introduction videos, pre-reading & presentation articles, and lecture materials to support your review.
2. What new did you learn? Critically reflect the topics presented.
3. Any other questions or comments?