In recent years, IBM has worked hard to reposition itself from a supplier of information technology (IT)

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In recent years, IBM has worked hard to reposition itself from a supplier of information technology (IT) hardware and software to a company that provides business solution services. Although IBM is still the world's largest provider of IT hardware and software, its executives regard this as the means to an end and not the end. In their own words, ". . . we measure ourselves today by how well we help clients solve their biggest and most pressing problems." Obviously, successful problem solving leads to an increase in customers and an increase in goods and services sold.
The company has relied heavily on its global sales force in making the transition from goods to a solutions service provider. Personal selling always has been a fundamental aspect of IBM's business philosophy. Historically, it has been one of the foundations of the company's success. The enormous task of changing the company's focus from selling hardware and software to selling solutions cannot be overstated. IBM has customers in 174 countries who speak 165 languages. The company's sales force makes 18 billion client contacts a year and addresses 350,000 sales opportunities per day.

1. What are the advantages for IBM in selling solutions rather than goods?
2. Why is solutions selling more complex than hardware and software selling? Identify the sales skills needed for each approach?
3. What are some ways that IBM can measure the effectiveness of its solutions or consultative selling?

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Foundations of Marketing

ISBN: 978-0547154565

3rd Edition

Authors: William M. Pride, O. C. Ferrell

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