Creating a well-oiled sales machine

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Reference no: EM133417303

Assignment:

Based on the Propco case study, "Creating a Well-Oiled Sales Machine" (Please provide detailed, thorough answers - no AI generated responses):

1. Explain the relationship between Oil Field Service (OFS) companies and Exploration and Production (E&P) companies. Hydrofracking requires heavy capital-intensive equipment - who bears this fixed cost? Who ultimately pays the variable costs of developing a well?

2. It is harder to sell a high price specialty than a low-price commodity for an application unless the customer understands that the economic value created by the specialty more than covers it's higher price. What was the source of extra eco- nomic value supposedly created by the specialty proppant; that is, what is the 'value proposition'? Was Propco capable of effectively selling specialty proppant?

3. The consultants arrived and undertook a three-phase project to rebuild Propco's sales capability.

Phase 1 involved segmentation of the OFS customers along four dimensions.

What were these dimensions and what were the messages that were sent as a result; that is, how did these segmentation dimensions correspond to the customer's ability to create economic value for itself (i.e., improve profits)?

4. Phase 1 also involved segmentation of the E&P customers. What were the dimensions of those segments and what messages were sent as a result; that is how did these segmentation dimensions correspond to the customer's ability to create economic value for itself, i.e., improve profits?

Reference no: EM133417303

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