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name of the term: Sales Integration
descriptions of the term:

Sales Integration

After a merger, the integration of the sales units (sales integration) is one of the major activity areas in the canon of the functional integration. The following exemplary activities should be undertaken relating to the sales integration: 
 

  1. Definition and implementation of new sales structures including internal and external communication
  2. Determination of the new product program including pricing and arrangement of terms
  3. Staffing and cultural integration of sales staff. The sales integration goals can be derived from the general M&A goals.

These mainly include:
 

  • Realizing cost reductions by benefiting from synergy effects
  • Increasing market share by using cross-selling effects
  • Entering new geographical markets through production or sales in new markets
  • Personal Management objectives such as increase in power, influence and public reputation
  • Following diversification strategies, which require access to new technologies, markets and products


These general M&A goals lead to sales objectives and therefore also to sales integration goals. However, these goals can be quite different depending on the explicit M&A case and must therefore be prioritized and scheduled differently. Major sales integration goals with reference to the following four dimensions are:

Strategy:

  • The product/marketing strategy has been defined at company level and will be implemented
  • Product positioning and pricing strategy will be supported by sales
  • Sales integration does not lead to a negative impact on client delivery HR/Organization:
  • Sales employees are available as required with respect to number and qualification
  • Staffing integration is in line with the targeted degree of integration of the sales units
  • The sales organizational structure supports the sales goals in the best way possible


Processes:

  • The integrated sales processes are efficient, clear and known within the company
  • The sales processes allow efficient and customer-optimal marketing
  • Interfaces to additional business processes have been defined, described and communicated


IT/CRM:

  • Information technology is used to increase sales efficiency and quality
  • Where it makes sense, IT-based systems are in force and are utilized by sales personnel
  • IT-based CRM systems are integrated in a comprehensive customer relationship management


Culture:

  • Possible cultural differences do not lead to a negative impact on sales
  • The integration approach of the sales cultures is defined and is being implemented
  • The sales culture is aligned to the overall corporate culture


The general merger goals and the resulting sales goals from the individual case have a strong impact on the implementation of the sales integration. A merger aimed at reaching cost synergies will also define strongly cost-oriented sales goals for the sales integration, for example, it will seek to minimize sales costs in relation to the sold products.

Type of term: definition
Language of the term (2 char ISO code): en
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