Click 'Read Original' for details -01- Digitalization will completely transform marketing organizations. The way of transformation depends on whether traditional organizations resist or adapt. Adapting means transformation; resisting means first 'eliminate', then rebuild. Recently, Teacher Fang Gang proposed 'eliminating' the sales department, and some reacted fiercely. There were all kinds of sarcasm and ridicule. In 2017, when Teacher Fang Gang proposed that the marketing department 'castrate itself', the reaction was the same. Over the years, the original marketing department either changed its name, such as IP department, marketing content department; or the name remained unchanged, but the functional positioning changed, and the personnel changed. The current marketing department is definitely not what it used to be! The marketing department originally had three major functions: market research, mass communication, and sales policy. In 2017, Teacher Fang Gang proposed marketing department reform, which only changed the communication function, from mass communication to new media communication. Around new media communication, the original marketing department's positions, knowledge, skills, cost models, etc. all changed. The personnel responsible for communication in the marketing department either learned new skills, introduced new personnel, or established new departments. With marketing digitalization, the other two core functions of the marketing department will continue to change. Digital research is a new skill. If you don't understand digital research, will you retain and transform, or find a replacement? Sales strategies and sales policies around BC integration will also change. The functions that combine marketing and sales may be transferred to the data middle office. The original offline policies may become online policies. -02- Who would have imagined that the current ground war is becoming a ground war where you 'cannot see the opponent'. Similarly, will the sales department, which was once called the 'army' and ground promotion, become an online-focused sales department? Perhaps the sales department still exists, but it is no longer the original sales department; perhaps the sales department no longer exists, but its functions have new carriers. Whether it's old bottles with new wine, or new bottles with new wine, the bottle doesn't matter; what matters is the new wine. In the past, people in sales always said that no matter how powerful the 'air force' is, capturing the hilltop position still requires people to charge up. It seems that the sales department naturally exists and is indispensable. Don't think that marketing naturally requires a sales department. Many countries in Europe, America, Japan, and Australia hardly have Chinese-style salesmen. Even if they do, they are service personnel, not sales personnel. Because in developed market countries, channels are independent third parties, unlike China's fragmented channels, which require a strong sales department to connect channels in a 'human chain' manner. It is said that China has 80 million salesmen, while the United States has over 10 million salespeople. The difference is: salesmen are 2B, salespeople are 2C. I'm not saying that Chinese channels will definitely become like Europe and America. If it weren't for the internet, Chinese channels would likely move towards the European and American model in the future, just a matter of time. However, with the emergence of marketing digitalization, China's BC integrated channel model will be the most unique in the world. -03- How to view the changes in the sales department during digital transformation? There can be four perspectives: first, the overall change in marketing organization; second, the change in sales department functions; third, the future channel situation; fourth, the new skill requirements for salesmen. From the overall marketing organization perspective, the original marketing organization was divided into the front-end sales department and the back-end marketing department. Now it must become front-end, middle-end, and back-end. In the new organizational structure, the sales department as the front-end is the offline frontline; the middle-end, although in the back, is the online frontline. The front-end and middle-end are inseparable. The original marketing department and sales department, one was brand-driven, the other was channel-driven. After BC integration, the two driving forces merge. The changes in sales department functions and the requirements for sales personnel's professional skills will be discussed separately later. -04- In the digital environment, the functions of the sales department (front-end) change significantly. Under the deep distribution system, the sales department mainly handles 2B business, roughly with four functions: First, build customer relationships to the terminal and distribute to the terminal. Customer relationships come first, then distribution; Second, terminal maintenance, because the terminal is the interface between BC; Third, terminal promotion, mainly KA's promotion to the C-end, such as shopping guides; Fourth, various procedural and transactional work derived from the above, such as cost issues (e.g., expense applications and verification), process issues (e.g., various check-ins), market issue handling (e.g., near-expiry products), etc. Transactional work involves procedural justice and takes up a large proportion of salesmen's time. After channel digital transformation, what changes occur in the functions of sales department salesmen? First, the 2B function still exists, but because of 2C factors, the importance of 2B will decline. In the past, deep distribution strengthened channel push. With push, salesmen need the terminal. The manufacturer is the passive party, and the terminal is the active party. Competition for terminal customer relationships consumed a lot of salesmen's energy. Undifferentiated store visits took up a large amount of salesmen's time. BC integration brings channel pull, with the C-end forcing the B-end. With pull, the manufacturer is active. Marketing digitalization balances channel push and pull. Although the importance of terminal customer relationships has declined to a certain extent, it is still very important. Therefore, I disagree with the statement that digitalization will 'eliminate' salesmen. Second, with BC integration, the core work of salesmen will change. BC integration, also known as dual-line deep distribution, includes both 2B offline deep distribution and 2C online deep distribution. This is the new function of the future sales department, which is to connect the three-dimensional space. In the three-dimensional connection, we have proposed three key points of BC integration: offline experience, KOC, and cloud stores. Offline experience must be a new function of the sales department, and salesmen have no room to retreat. The discovery and utilization of KOC is also a new function of the sales department. Lidu has already set up chief experience officers and chief communication officers in each county, adapting to offline experience and KOC operations. The online operation of cloud stores should be a function of the middle-end. But the front warehouse delivery of cloud stores, the user experience of cloud stores, and conversion (e.g., into KOC) also leave no room for the sales department to retreat. Third, the sales department (front-end) and the middle-end fight side by side online and offline. Although there is digital support from the middle-end, offline customer relationships still require salesmen to be on site. However, using data to optimize salesmen's routes and work content will greatly change their work efficiency. For example, under the deep distribution system, a salesman is responsible for 150-200 terminals. With digitalization, the salesman's work will be more precise and efficient, and the number of terminals per salesman will greatly increase. Fourth, the work process of salesmen will change. For example, new product promotion used to be first distribution, then promotion. That is, first 2B, then 2C. Or only 2B, no 2C. With BC integration, the new product promotion process can completely change to: first 2C, then 2B. First 2C to form user awareness, then 2B to complete distribution. Unified's new self-heating rice 'Kaixiaozao' is first 2C then 2B, which they call CB integration. -05- In the deep distribution system, the channel is in a 'gray box' state. A gray box refers to a system with incomplete or uncertain information, also known as a partially observable black box. For example, channel inventory is roughly known, but the exact quantity is unknown, and the shelf life is unknown. The current high rate of near-expiry products, which requires a lot of time and cost to handle, is because the channel is in a gray box state. BC associated data under marketing digitalization can make channel quantities completely transparent, including inventory, dates, and flow rates. In the past, it took a lot of time to check warehouses and terminals; now it is clear at a glance in the digital system. Also, terminal displays, which are crucial for sales, used to require a lot of time on site to figure out the layout and display. Now, with AI object recognition systems, it can be generated instantly and improved promptly as required. With channel transparency, the workload for salesmen to go to the site will decrease. Correspondingly, the phenomenon of market mistakes due to individual misjudgment, which were hard to remedy after discovery, will also decrease. Traditional salesmen 'work alone', making independent judgments and personal decisions. With data support, personal routes and work content are optimized through data, greatly improving efficiency. The above situation will weaken the requirements for individual quality in some work. However, while big data optimizes, it also puts a 'tightening curse' on salesmen. Just like delivery riders, because of optimized delivery routes, some riders are forced to 'run red lights'. -06- The most important abilities of traditional salesmen are: first, the ability to judge and grasp the overall market; second, the ability to build customer relationships. These are decisive abilities for 2B business. Marketing digitalization has changed marketing organizations and organizational functions, and the requirements for salesmen's skills have also changed. First, offline workload decreases, but offline work becomes 'heavier'. In the three-dimensional connection, we propose to 'do thoroughly' a store and 'explode' a county. Marketing digitalization still has such requirements. Therefore, although the workload of customer relationship work and routine visits will decrease, high-intensity cognitive work like offline experience will increase. Offline experience is a new technology or new position, such as chief experience officer. Only when offline is 'heavier' can online be 'easier'. Second, 2B work decreases, and 2C workload increases. Traditional enterprise 2B salesmen find it difficult to shift to 2C. This has been verified by years of practice: traditional salesmen do not have the 2C gene. E-commerce 2C personnel also find it difficult to shift to 2B. 2B is like a maze for 2C personnel. 2C personnel also do not have the 2B gene. BC integration requires sales department personnel to do both 2B business and enter the C-end. This is a very difficult task. Third, salesmen link with the middle-end to promote BC integration. BC integration first connects the three-dimensional space, linking offline, community, and network, then from B-end to KOC, and then to C-end. At the same time, activate the B-end through the C-end. This work is very difficult. First, it requires linkage with the middle-end; second, it goes from B to C, and then from C to B. The technical content is high. Overall, the salesman's work goes from B-end to C-end, which is deepening; the on-site work at the B-end, after digital optimization, greatly reduces workload, which is evolution. -07- In the past, the sales department experienced multiple transformations, but they were basically shifts between different B-ends. For example, during the wholesaler period, the focus was on wholesalers; during the market center sinking period, the focus was on distributors; during the deep distribution period, the focus was on terminals. Wholesalers, distributors, and terminal stores are just different types of B-ends. Marketing digitalization brings a big change. From B-end to C-end, from offline to online, from front-end to middle-end. With such a big change, can individuals adapt? Can organizations adapt? Adaptation means transformation and rebirth; non-adaptation means first 'eliminate' and then reorganize.