The correct application of the Sales Excellence content promises a sustainable increase in professionalism in sales with a holistic effect within your company directed at your existing and potential customers.

This is not simply said (written), but is based on many years of experience in B2B sales.

The following figure first gives you an impression of the comprehensive approach of Sales Excellence, whose implementation process begins with the creation of an actual profile and ends with sustainably valuable customers.

To the diagram a little story:

After I was entrusted with the task of taking over the sales department of a well-known steel foundry a good 20 years ago, I set out on a quest to develop myself and thus “my” company further. Further education and training courses made me aware of the Sales Excellence approach of Homburg, Schäfer and Schneider. The authors dedicated themselves to this topic since 2001 and have been developing it consistently ever since. I took up the aspects and very quickly realised that sales alone cannot achieve the growth targets set. I began to think holistically in order to incorporate the established cross-divisional structures, processes and interfaces and harmonise them with the sales targets. At that time I convinced my colleagues with my ideas for multidimensional communication. Work preparation increasingly spoke with the design department, was interested in quality assurance issues and explained these directly to the customer’s QA department. This also led to meetings without participation of the classically acting persons in purchasing and sales. Today we speak of cross-functional action for a holistic customer focus. The turnover developed very positively. The market shares increased and consolidated. In the course of time we realised our strength in the market and started to question it. We proved that we have strong customer loyalty through the complex relationships that have developed. The mutual interest and understanding grew. Quasi as a by-product of multidimensional communication we achieved a higher quality level and a delivery reliability, which was even documented by some customers (!) with an OTD (On-Time-Delivery) rate of 100%. Re-purchases, cross-selling, recommendations for an acceptable new customer rate and a lower price sensitivity were also the positive results. Our understanding of the customers, their markets and their customers (vertical/multi-level marketing) increased steadily, because we received true information from each side and learned how to use it correctly. Gradually, our organisation adapted to the customers intuitively (today described as a learning and/or agile organisation) and sustainably. It was simply fun – together on all levels and with the customers.

Of course, I was not able to summarise all aspects and backgrounds of the successes from the application of the Sales Excellence approach in such a short time. Above all, the systematic approach and the digital transformation are hardly or not at all apparent here. The change process alone, the numerous individual and group interviews with the people involved and the coordination of the increased flow of information were among the elementary components and prerequisites for this development. However, the brevity of the story shows in a simple way the necessity of a holistic implementation. The relationships that have been established stand for sustainability, which naturally have to be cultivated.

The view of the big picture.

In the course of implementation or consulting, care must be taken to ensure that the individual elements of Sales Excellence are broadly reflected – see diagram below.

But one thing is still important to me.

Recently, I have had to hear and read that the Sales Excellence approach to the inclusion of digitisation has been thought too short or even incomplete. I resolutely reject this perception that is alien to practice. For me, digitisation or even digital transformation of processes and information is only a logical consequence; never the beginning of a strategy or process. A supporting and integrated CRM system only makes sense when the understanding and action of the organisation, more precisely the customer-oriented, cross-functional and cross-departmental employees, are available and lived for a cause, e.g. a CRM.

I do, however, admit one criticism regarding the little treated topic of price management. Due to the complexity, the depth and the enormous effect of a correct price management I also dedicate a separate field of application for my consulting and in the interim.

Stay tuned.

Allow yourself to be carried away by what I have to say and let me share in your thoughts. I would be happy to discuss opinions, experiences and ideas with you. Ask me about concrete problems, the causes of these problems and possible solutions for your personal strategy work or implementation.

Students or pupils are welcome to consult the content or the scientific literature reference as a suggestion for their own work. I am also happy to give tips here.

More blogs will follow. Soon you will find further relevant content for strategy and implementation: brand management, communication management, price management etc.

Stay tuned! Follow me on social media.

A call for reflection and prudence with a tribute to our thought leaders.

Not everything that constantly comes up on the “strategy market” is actually new in terms of content. If you follow the traditional and social media closely, I feel equally haunted by the inflationary hustle and bustle of supposedly new topics, contents, backgrounds, methods, tools etc.

Pause for a moment!
Embrace the new. Question your strategy, your structures and your processes in terms of the concrete benefits for your company. But please in a parallel world. Avoid actionism and an ill-considered change of direction of your strategy. Because the next new thing is already waiting.

Once you are in the midst of changing directions with your company, you will not reap any thanks from your strategic and operative employees. However, you will certainly experience an increasing acceptance of your strengths. And that is exactly what you have to avoid.

Basically there is nothing wrong with new ideas or new aspects. However, if you take a closer look at the relevant content and terms, patterns appear which we have actually known for a long time.

The different contents are introduced or justified in the past weeks and months of the Corona restrictions and also now in the time of the introduced loosening with its negative effects mostly with volatile markets, drop in demand, drop in prices, a high degree of homogeneous goods, missing returns of cost reduction measures and constantly converging communication for a differentiation from the competition.

Once again: it is basically right! But five or ten years ago we read that too. Have we done nothing since then? Or have we not done the right thing? Was the old new then not the right one? Will the new new be more right then? These are all questions that lead us to the true foundations.

In one of the next blogs, I will return to classic topics, contents, methods etc. from time to time and explain the basics of our masterminds. For a deeper understanding of marketing, the real understanding of the basics in strategy work is of great advantage. In addition, you will be able to evaluate the constantly new more thoroughly.

Let’s talk about brands!

It is not only since today that we talk about an individual experience for the customer during the procurement process. Cross-functional and cross-divisional approaches and those along the value chain have existed for a long time. Charging brands is nothing else. The art is to create and implement this process in a company-specific way. This includes your employees, who incidentally play the central role in brand building and brand maintenance.

Today, I would like to start by encouraging you think about the importance of brands. I would like to discuss opinions, ideas and patterns that we may have identified together. Ask me about concrete problems, the causes of these problems and possible solutions for your personal strategy work. The scientifically oriented writing style follows the appreciation of the masterminds that are valuable to me. I am happy to show their readings in a short bibliography. Click on the corresponding blog in the selection and enjoy the new old!

Students or pupils are welcome to consult the structure, content or bibliography as a suggestion for their own work. I am also happy to give tips.

In the next few blogs, more detailed content on the brand, communication management, price management etc. will follow.

Stay tuned!

Since I reject a derivation of the goals of brand strategies according to the brand functions due to the more superficial view, a derivation of the goals is done via brand theories.

Brand theories as a basis for the formulation of the objectives of brand strategies

Brand theories are considered general statements for the analysis and explanation of brands. Knowledge of their contents is elementary for brand identity as the basis for brand positioning as well as for brand strategies and for the implementation of the chosen strategy alternative. This applies in particular to the findings of behavioural science theories.^[1] The following figure shows an overview of brand theories from the various perspectives with their respective approaches or aspects and the models mentioned as examples or their thematic focus.^[2]

Behavioural science theories attempt to explain and empirically test the actual behaviour of people or consumers. The psychological aspect is provided, for example, by the Elaboration-Likehood Model (ELM)^[1]. From a sociological point of view, Baumgarth cites the sinus milieu approach, which classifies human behaviour according to social class and its basic orientation into social milieus or groups of like-minded people.^[2] The reference group model according to Bearden and Etzel stands for the socio-psychological view, as it describes the influence of other people on individuals.^[3] The modern neuro-economic approach aims at cortical relief and emotionalisation and is essentially concerned with the structure and functions of the nervous systems, especially the brain.^[4]

Target pyramid and target system for deriving the targets

Both Sattler and Völckner^[1] and Esch^[2] see the development and increase of brand equity as the central objective of brand policy, which, from the point of view of behavioural science, “can be understood as the result of the different reactions of consumers to marketing measures of a brand compared to identical measures of a fictitious brand on the basis of specific brand ideas stored in the memory”^[3] and thus builds on the findings of the corresponding theory. The evaluation as a central target value is based on the fact that the brand generates effects with consumers in terms of higher sales volumes and/or greater scope for pricing policy and that, consequently, higher turnover can be achieved, which allows the economic goals on the one hand and the overriding goals or the global goal of a company on the other hand to be achieved, as shown in the following target pyramid:^[4]

The above-mentioned definition and the target pyramid show that economic goals can only be achieved indirectly, so that behavioural science goals must first be realised. Their target values and interdependencies form the target system of brand policy as the following figure shows:^[11]

In the illustration the brand equity is clearly visible as the central target value.
At this point only the “brand awareness” and the “brand image” are explained in more detail.
The brand image is seen as an external image, the image of a brand from the point of view of the consumers or their perception.^[1] The counterpart to the brand image is the brand identity as a so-called self-image, which a brand is supposed to stand for, from the point of view of the owners, managers and employees of the company concerned.^[2][3] Thus it becomes clear that the implementation of the objectives must be directed inwards in relation to the self-image and outwards in relation to the external image.

I would be happy to send you further details, in particular on the implementation of the brand strategy goals, on request.

[1] Cf. Baumgarth (2014), p. 46
[2] See Baumgarth (2014), pp. 41-84
[3] See Petty / Cacioppo (1986a), in: Baumgarth (2014), pp. 47-49
[4] Cf. sinus (2010b), in: Baumgarth (2014), pp. 49-50
[5] See Bearden / Etzel (1982), pp. 183-194, in: Baumgarth (2014), pp. 51-52
[6] See Baumgarth (2014), pp. 52-55
[7] Cf. Sattler / Völckner (2013), p. 22
[8] Esch (2014), pp. 55 and 71
[9] Keller (1993), p. 13, in: Esch / Geus (2005), in: Esch (2005/ed.), Volume 2, p. 1266
[10] Esch (2014), p. 54
[11] See Esch et al. (2002), p. 475, in: Esch (2014), p. 71
[12] See Esch (2014), p. 79
[13] See Burmann / Meffert (2005), p. 49
[14] See Radtke (2014)

I will be happy to send you the detailed bibliography on request.

Overview of brand strategies.

With the contribution “Significance of brands” it was stated that companies have to refine and deepen the brand idea. For this purpose, specifically selected brand strategies are to be implemented in a process, taking into account the possible opportunities and risks.

Which brand strategies are available to companies?

The following figure shows the basic strategies with the respective strategy alternatives of Sattler and Völkner, which have become established in practice over time.

The basis of the present differentiation was based on preliminary considerations regarding the number of products under one brand, the number of brands per product market, a reasonable combination of brand names as well as a geographic range and a possible or reasonable further development of existing brands over time.^[1][2]
It is therefore the task of brand strategies to define the relationship between product performance and brand.^[3]

Other authors only distinguish between three basic strategies^[4][5] or assign brand positioning as a sub-area of the strategies.^[6]

However, the breakdown into three basic strategies is less in line with reality and thus contradicts an active application in practice.
The positioning in turn is often taken as the starting point for brand strategies.

In the following, the individual strategies with their advantages and disadvantages are briefly presented.

Brand related integration strategies

According to Sattler and Völckner, the brand-related integration strategies comprise the mono- or single-brand strategy and the brand transfer strategy, which includes the umbrella and family brand strategy.
These brand strategies differ in the number of products under one brand and the differentiation between mono-brand and brand transfer strategy with regard to their respective degree of integration^[1].
With the monobrand strategy the number is limited to one product per brand. This alternative is suitable for a company if the product range is very heterogeneous in itself and the target groups are addressed in clearly separable segments. A mono-brand often arises in connection with a new brand strategy, which is characterised by the fact that “for a new product, a completely new brand is developed from the point of view of potential customers”^[2].
A brand transfer strategy is when at least two products are integrated under one brand, i.e. by transferring an established trademark to a new product.^[3] Sattler and Völckner distinguish a total of six forms of brand transfer, which differ as follows:

• • by the number of brands per company (umbrella and brand family strategy), by the direction of the transfer (vertical and horizontal),
• • according to the product category, in terms of the way in which it is transferred (line, franchise extension or concept extension),
• • by type of origin (internally: own established brand and externally: licensing or merger & acquisition),
• • in terms of geographical reach or spatial transfer, and
• • according to the type of instruments used (product design, packaging and shelf design in retail outlets)^[4].

I will gladly send you further, more detailed information on request.

Multi-brand strategies

While in market-based integration strategies the number of products under one brand is the systematisation criterion, multi-brand strategies are characterised by the number of brands on a product market that a company manages in parallel.
This strategy focuses on the delineation of product markets^[5].
However, multi-brand strategies can also take the form of a mono-brand strategy or a single product market brand strategy if only one brand is offered in a separate market.^[6]
The opportunities offered by multi-brand strategies compared with the single product market brand strategy include broader market coverage, securing the competitive position, the use of brand switching behaviour with low brand loyalty of the target group, greater market penetration or the more concentrated use of marketing instruments per market segment.^[7]
Risks or dangers are, for example, the higher expenditure on communication measures as part of the marketing mix and the difficulties of segmentation, which leads to greater complexity and thus requires even greater coordination, as well as less flexibility in the overall brand strategy, and can result in cannibalisation among brands.^[8]

I will gladly send you further, more detailed information on request.

Brand combination strategies

Characteristic of brand combination strategies is that two or more brands are offered together.
The difference between the single brand name strategy and the multiple brand name strategy is the number of brand names used^[9].
The design forms of these combination strategies are diverse and can be divided into internal and external.
The internal combination strategies deal with the relationship of the brands to each other, i.e. the hierarchy and its arrangement, the brand architecture. “Brand architecture involves the arrangement of all brands with the aim of defining their specific roles and positioning and the [hierarchies] desired between the brands”^[10] Such complex architectures are becoming increasingly common, as a number of approaches to structuring brand architecture have been developed in recent years. One recommendable approach is, for example, the work of Aaker and Joachimsthaler^[11].
External brand combination strategies are differentiated between Sattler and Völckner according to the criterion of the number of brand suppliers.
The offer of several brands from one supplier is easy to understand.
The offer of several suppliers is to be explained on the basis of the concept of a brand alliance.
Brand alliances describe the joint appearance of at least two independent brands, the design of which can be summarised for the participating companies as follows: Co-promotions as joint promotion activities of brands, co-advertising as joint advertising activities of brands, co-branding as a horizontal combination of brands for a joint branding of a product, ingredient branding in the case of a vertical combination, and company cooperations and mergers and acquisitions as a special case.^[12]
The chances of multi-brand strategies are that an additional benefit can be created for the consumer, that the image of the individual brands can be strengthened, that easier access to the retail trade can be achieved and that broader and more intensive customer loyalty can be the result.^[13]
On the other hand, there are risks such as an increased coordination effort, a limited flexibility of action, as the concerns of the partner company have to be taken into account, the risk of a change in the position of the partner brand and the resulting possible damage to its image.^[14]

I will gladly send you further, more detailed information on request.

International brand strategies

International brand strategies refer to the geographical reach of the brand offering in regional, national, international and global markets. These strategies focus on the availability of resources, competitive behaviour and the political-legal and technological framework.^[15] The planning of international brand management has to follow a planning process that starts with a situation analysis, followed by basic planning with its elements of brand selection and brand positioning and ends with the implementation of the international brand strategy or control.^[16] The planning of an international brand management has to follow a planning process that starts with a situation analysis, followed by basic planning with its elements of brand selection and brand positioning and ends with the implementation of the international brand strategy or control.^[16]
The two characteristics of standardisation and differentiation of brand positioning are therefore recognisable as special features in relation to the brand and the content of the strategy.
The extreme of standardisation would be that the brand is a global brand with a globally identical brand label, with an equally globally identical positioning and brand knowledge structure.^[17]
The extremes of differentiation are completely contradictory.
In practice, it is easy to imagine that one of the extremes cannot be found in its pure form. One may rather assume that a mixed form is the rule, which is characterised by the determinants outlined by Sattler and Völckner, such as, among others, the protectability of brands, media spillover, basic corporate strategy and demand behaviour, taking into account country-specific cultural events.^[18]
From the opposite poles, the advantages of standardization can be clearly and comprehensibly identified as cost degression, the use of synergy effects and the development of the brand into a global brand and thus the increase in brand value.^[19]
The reverse effect of the determinants mentioned above would result in the disadvantages of standardisation or the advantages of differentiation. One particular point is that a high degree of standardisation means that target groups can be addressed less specifically and brand potential could therefore not be fully exploited^[20].

I will gladly send you further, more detailed information on request.

Brand evolution strategies

Brand evolution strategies include brand consolidation in the form of the brand elimination strategy and the brand migration strategy.

In brand elimination, weak brands are skimmed off and taken out of the market in order to optimise the value of the entirety of the brands, the brand portfolio.^[21] Also in the context of brand policy, it is important to analyse the existing compound effects, to evaluate them objectively and correctly so that the horizontally and/or vertically arranged brands are not negatively influenced.

In the brand migration strategy, one brand is transferred into another, whereby the performance range of the brand is largely retained, but the marking such as the brand logo or the lettering is completely replaced.^[22]
The brand expansion strategy involves a brand transfer or geographical expansion,^[23] which can be dealt with using the basic strategies already mentioned.
Brand revitalisation describes the process, also explained above, of reintroducing a brand that has been temporarily withdrawn from the market^[24].

I will gladly send you further, more detailed information on request.

[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24] See Sattler / Völckner (2013)

I will be happy to send you the detailed bibliography on request.

Companies are subject to constant change. If we look at the past decades, markets have become narrower, i.e. fragmented into smaller and smaller segments, and at the same time more transparent for those who demand them, as a result of mergers, internationalisation and globalisation in conjunction with the enormous growth of Internet technology. For suppliers, this has increased the intensity of competition, which has led to a large number of different products whose life cycles are becoming shorter and shorter, and thus to new products and variations coming onto the market at ever shorter intervals. It cannot be expected that this market behaviour will come to a standstill in the future.

In their micro-environment, companies react as a result of a systematic marketing management process with, among other things, advertising as a classic marketing tool to inform target groups about their product and to differentiate it from the multitude of competing products. Since communication takes place simultaneously by many companies, the large amount of information creates an information overload on the demand side.^[1] The consequence is often that a product-related unique competitive advantage, also known as a Unique Selling Proposition (USP),^[2] is communicated but the target group is not reached or is reached only to a small extent, and thus perception is limited and not very promising.

More and more, therefore, brand management is coming to the fore. By means of brand identity and brand awareness, a lasting brand image is created and anchored in the consumer’s mind over a long period of time. This generates a special USP, so to speak, which can also withstand a flood of information^[3].

Sattler and Völkner also describe the value-based significance of brands in the company value and equate the brand or brands of a company to an asset.^[4] The basis for this classification is a survey conducted by PwC, Sattler, GFK and the Markenverband in 2012 with the result that over 90% of the companies surveyed consider brands to be one of the most important factors influencing the success of a company.^[5] At the same time, Sattler and Völkner also mention flop rates in the context of brand design and thus point to risk factors which, in turn, have a negative influence on the success or value of a company, possibly with far-reaching consequences for the continued existence of a company.^[6]

Companies are therefore required to implement or refine or deepen the brand concept and to implement the brand strategy specifically selected in a process, taking into account the possible opportunities and risks.

[1] Cf. Meffert et al. (2015), p. 569
[2] See Reeves (1961), in: Becker (2013), p. 248
[3] See Esch (2014), pp. 16-18
[4] Cf. Sattler / Völkner (2013), p. 21 ff.
[5] Cf. PwC et al. (2012), in: Sattler / Völkner (2013), p. 22
[6] Cf. Sattler / Völkner (2013), p. 96 ff.

I will gladly send you the detailed bibliography on request.