HP TO HIRE 100’s OF SALESPEOPLE …..

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HP TO HIRE 100’s OF SALESPEOPLE …..

 user 2006-07-11 at 10:38:00 am Views: 46
  • #15957

    HP to Hire ‘Hundreds’ of Salespeople to Push Demand
    Hewlett-Packard
    is hiring “hundreds” of salespeople to increase demand across channels
    as part of a play for market share, CEO Mark Hurd revealed June 19 in
    an address to resellers at the vendor’s Americas Partners Conference in
    Las Vegas.The boost to the direct sales organization, while competing
    with VARs for business, would ultimately drive demand for HP’s vast
    portfolio in the market and drive sales for VARs, Hurd said.”This is
    not a statement about channel direction,” Hurd told the more than 1,100
    resellers. “This is about demand. As we add more salespeople, we add
    more demand for HP and increase the HP halo in the market. If you’re
    aligned with us, you will benefit from increased opportunity.”The Palo
    Alto, Calif., company will use the additional staff to plug gaps in its
    coverage model on its march to greater market share, Hurd said. He
    called HP’s current 4 percent share unacceptable.HP’s market share more
    than doubles when the company has at least one salesperson, direct or
    indirect, assigned to an account, a ratio the company won’t meet at its
    current configuration, he said.While the measure is likely to ruffle
    feathers in HP’s channel, typically cautious of the company’s direct
    sales force that used to compete directly with its resellers, the
    theory holds water, said Tiffani Bova, research director of IT channel
    sales at Gartner Group, based in Sherman Oaks, Calif.”If HP is creating
    demand for the product, it can only help resellers,” Bova said. “But
    they have to be careful how they execute. If they don’t take the proper
    steps and put in place the proper protocols, they’re only going to
    multiply the problems [channel conflict and mistrust] they already
    have.”In addition to renewed sales pressure, HP plans to approach the
    market differently, Hurd said, controlling access points, where
    customers enter the market, and building more of a solution to sell the
    product.Along those lines, the company’s market-leading Imaging and
    Printing Group would need to change its pedigree from a printer company
    to a printing company, to take advantage of the 11 percent increase in
    page printing that might not necessarily translate into an increase in
    printer sales.HP plans to own more “control points in the market,”
    which, he said, are the points at which customers access certain
    services, such as digital photo printing kiosks and an on-demand
    Web-based commercial printer.”We don’t necessarily want to be in the
    kiosk business or the most omnipresent company on the Web,” Hurd said.
    “But to have access to the customer now you have to control those
    access points where they access the market.”The march toward greater
    market share will continue to include a greater emphasis on “attach,” a
    practice to attach additional items to sales-such as monitors and PCs
    to a document management solution-which HP began trumpeting earlier
    this year in the channel with added incentives.
    Committed to the Channel
    Hurd,
    in his address, also reiterated the company’s commitment to the
    channel.”I view the channel as a strategic advantage for HP,” he said.
    “There is no way to get to buying the points on our own without your
    help. There is no way to provide the solutions customers want without
    your help. There is no way to provide the local knowledge and the local
    presence customers need without your help.”HP’s staff, and Hurd in
    particular, has been working to improve relations with channel partners
    after partners experienced several years of frustration while the
    vendor appeared bent on competing with them through indirect sales for
    even some of the smallest accounts in the market.To exacerbate matters,
    Hurd appeared to intimate last year, shortly after he took the
    company’s helm, that the vendor would give preferential treatment to
    partners who showed their loyalty by favoring the brand at the cost of
    other vendors. The ill-timed statement frosted partners who already
    were resentful of HP’s direct efforts.