Selling Value in Business Markets: Individual and Organizational Factors for Turning the Idea into Action

Modern business-to-business firms focus increasingly on understanding and selling value, as a strategic priority and to achieve marketing and sales excellence. Yet many companies struggle to implement their value orientation, without sufficient knowledge of how to translate it into sales practice. This study therefore examines value-based selling (VBS) as an implementation of value-based marketing at the sales force level. The proposed motivation–opportunity–ability framework integrates individual- and organizational-level antecedents, outcomes, and moderators in an attempt to explain the adoption and performance outcomes of VBS in business markets. Multilevel path modeling with cross-sectional survey data from 944 salespeople and managers in 43 sales organizations confirms the prediction that VBS enhances salespeople's performance, beyond that achieved with established selling approaches. However, firms need specific types of salespeople and dedicated organizational support for effective VBS implementation. A salesperson's learning orientation and networking competencies emerge as critical antecedents. Organizational value assessment tools can compensate for individual salespeople's lack of learning orientation; reference marketing efforts also strengthen the performance outcomes of VBS. Finally, VBS is most effective in organizational settings where perceived customers value demandingness is lower, enabling salespeople to use VBS as a proactive selling approach.     

The Effects of Formal Controls on Supervisee Trust in the Manager in New Product Selling: Evidence from Young and Inexperienced Salespeople in China*

How should sales managers enhance the support and commitment of young, inexperienced salespeople during a new product selling? Some scholars have suggested sales managers should use formal controls (i.e., output and process controls) to develop the salespeople's trust in their benevolence. Drawing on a sample of young, inexperienced salespeople with rather low education selling new products in China's competitive, volatile, and transitional economic environment, the present study investigates the relationship between output and process controls and supervisee trust (i.e., the salesperson's trust in the sales manager). The empirical results of the study suggest that process and output controls have differential effects on supervisee trust. Specifically, the results indicate that process control enhances supervisee trust by itself and also under conditions of intense training for new product selling and when market volatility is perceived as high. However, process control hinders supervisee trust when the manager is long‐term oriented and engages in participative supervision. It was found that output control engenders supervisee trust when the manager is long‐term oriented but hinders supervisee trust when salespeople have undergone intensive training for new product selling. Implications of these results are provided for both researchers and practitioners involved in launching and selling new products.     

Do business customers perceive what salespeople believe? Perceptions of salesperson adoption of innovations

A salesperson's commitment and effort toward an innovation can determine whether the customer agrees to buy it, such that customers' perceptions of such commitment and effort are critical. But these perceptions also might differ fundamentally from the salesperson's self-perceptions of commitment and effort. Therefore, this paper presents a theoretical framework of the relation between salesperson-perceived and customer-perceived commitment and effort, as exhibited by the salesperson while selling an innovation, which represents salesperson adoption. In the framework, job satisfaction factors also exert contingent, moderating effects. The authors gather unique, dyadic data from surveys of salespeople and their (potential) business customers during visits to sell a conventional, incremental innovation, complemented by objective purchase data gathered from company records. Three key insights emerge fromt this study. First, salespeople's own perceptions of their commitment and effort have only moderate influences on customers' perceptions of salespeople's commitment and effort. Second, customers seem to recognize salesperson effort more readily than salesperson commitment, although salesperson commitment has a higher sales performance impact than salesperson effort. Thus, sales managers should seek to encourage and support both the commitment of salespeople and also perceptions of that commitment among customers. Third, while a higher organizational support or job autonomy strengthens customers' perceptions of salesperson adoption, a higher pay satisfaction diminishes it. Thus, firms might need to find ways to increase the support for the salespeople and their autonomy and to reduce salespeople's satisfaction with their (direct) payments. In total, these findings suggest significant scientific and managerial implications.     

Adoption of New Products by the Sales Force: The Construct, Research Propositions, and Managerial Implications

Some firms take salesforce commitment to any new product as a given, seemingly adopting the attitude, “If we build it, they will sell.” However, management has no guarantee of salesforce commitment to a new product. For various reasons, salespeople may fail to sell a new product, or they may engage in dysfunctional behavior during the selling process—for example, misrepresenting the product's benefits to gain short-term sales. Ensuring salesforce adoption of a new product requires careful consideration of the characteristics of the product, the competitive environment, the firm, and the members of the salesforce. In other words, managers who hope to engender support for a new product would do well to view the salespeople as a first line of customers. Successfully launching a new product to the company's salesforce requires the same high levels of creativity, energy, and managerial insight as does the product's launch into the marketplace. Consequently, managers and researchers need to examine more closely the factors underlying the successful launch of a new product to a firm's salesforce. As a first stop toward gaining greater insight into those factors, Kwaku Atuahene-Gima develops a model for exploring the characteristics that affect new-product adoption by the salesforce. His model suggests that a salesperson's commitment to a new product depends, to a large extent, on the salesperson's learning style, performance orientation, and problem-solving style. For example, he proposes that, compared to their colleagues with systematic problem-solving styles, salespeople with intuitive problem-solving styles are more likely to adopt a new product and are less likely to engage in dysfunctional behavior in the selling process. The model also suggests that the salesforce's perceptions of the firm's commitment to new products, tolerance for failure, and attitude toward intradepartmental conflict during the product development process play key roles in determining whether the salesforce will take an active, positive approach to selling the new product. For example, a firm that views occasional failures as opportunities for learning and growth offers an environment in which salespeople can accept the risks that selling a new product entails. The proposed model also takes into account the moderating effects of the product's innovativeness, the intensity of market competition, and the type of sales control systems that the firm uses.     

The Role of Sales in NPD: An Investigation of the U.S. Health‐Care Industry

The new product development (NPD) literature emphasizes that the success of new products strongly depends on a firm's capability to understand customer needs and translate them into new products. Because of their close relationships with customers, salespeople are in the ideal position to connect the firm's NPD efforts to its customers. The extant literature on the role of sales in NPD focuses on either sales’ contribution to generating new product ideas or the adoption of new products by salespeople, while a systematic study of sales’ contribution during all NPD stages is lacking. In addition, the role of sales is typically studied in isolation, while in practice, the role of sales depends on the relationship between sales and marketing. This article addresses these gaps in the literature by reporting on an empirical investigation of the role of sales during the entire NPD process in the U.S. health‐care industry, taking into account the complexities of the sales‐marketing dynamic. The article is based on interviews with 21 sales and 15 marketing informants from the U.S. health‐care industry, both pharmaceutical firms (selling drugs to physicians) and device manufacturing firms. Our findings highlight how salespeople are distant from NPD process during the discovery stage. Salespeople are focused on selling to customers, and marketing keeps sales distant from the NPD process. During the development stage, sales is still only indirectly involved in NPD through its relationship with marketing. During commercialization, however, marketing takes the driver's seat and strongly involves sales in the various (pre)launch activities. But while salespeople are mostly indirectly involved in NPD, sales managers have a closer relationship with sales and are more directly involved. The findings also show how the involvement of sales is influenced by characteristics of the health‐care industry. Thus, this article contributes to our understanding of the role of sales in NPD by integrating theoretical perspectives from the sales‐marketing interface literature into the NPD literature.     

Salespersons as Internal Knowledge Brokers and New Products Selling: Discovering the Link to Genetic Makeup

Managers increasingly realize the importance of involving the sales force in new product development. However, despite recent progress, research on the specific role of the sales force in product innovation‐related activities remains scarce. In particular, the importance of a salespersons' internal knowledge brokering has been neglected. This study develops and empirically validates the concept of internal knowledge brokering behavior and its effect on selling new products and developing new business, and explores whether a salesperson's internal brokering qualities are determined by biological traits. The findings reveal that salespeople with the DRD2 A1 gene variant engage at significant lower levels of internal knowledge‐brokering behavior than salespeople without this gene variant, and as a result are less likely to engage effectively in new product selling. The DRD4 gene variant had no effect on internal knowledge brokering. Management and future research implications are discussed.     

Commitment to technological change,sales force intelligence norms,and salesperson key outcomes

Despite increasing interest in sales technology investments, companies continue to struggle with getting their salespeople to use these expensive technologies. In this context, two under-researched issues warrant attention. First, although sales technology represents a continuous source of change, little is known about why salespeople commit to technology-induced changes. Second, knowledge on whether sales force intelligence norms play a role into translating use of sales technology to performance gains is remarkably sparse. To address these gaps, this study develops a conceptual framework that explores the linear and non-linear effects of commitment to technological change (i.e., affective, normative, and continuance) on sales technology infusion, and, in turn, on two key outcomes (i.e., customer-oriented selling and sales performance). Our framework also advances knowledge on how sales force intelligence norms (i.e., analytical sales processes and knowledge sharing with customers) moderate the relationships between sales technology infusion and key outcomes. Analysis is done using multilevel structural equation modeling on a sample of 303 salespeople nested within 22 firms. Findings support the view that the three components of commitment are distinct, with some counter-intuitive results. Specifically, affective commitment does not exert a significant positive influence as expected; yet, normative commitment does. In contrast, while lower levels of continuance commitment reduce infusion, higher levels have positive effects, thus depicting a U-shaped effect. Finally, sales technology infusion influences both key outcomes — and findings support the importance of fostering sales force intelligence norms. Implications of the study are discussed.     

Intangible sales team resources: Investing in team social capital and transactive memory for market-driven behaviors,norms and performance

Complex offerings and evolving customer needs increase the demand for market-driven salespeople. Yet many of today's managers struggle to effectively deploy this selling approach. In light of this reality, we develop and test a multi-level market capabilities framework to examine team-level drivers and boundary conditions of market-driven salesperson behaviors, norms, and performance. Data collected in a lagged, multi-source, cross-level field study of 246 salespeople nested within 54 sales teams provide evidence that investments in team social capital (ITSC) support the self-correcting, customer-centric, learning behaviors needed for performance. Results show that managers' ITSC are positively associated with team goal monitoring, commitment to service quality, and learning effort. Further, goal monitoring and learning effort increase commitment to service quality, which helps drive sales performance. We also find that transactive memory systems (TMS) can be an efficient team knowledge resource that strengthens the learning effort-to-performance and service quality-to-performance relationships.     

A psychometric assessment of the Lennox and Wolfe self-monitoring scale in the sales force

In today's turbulent business environment, salespeople and sales managers must constantly adapt to changes. Self-monitoring, i.e., the cognitive ability to adapt one's own behavior in response to the behavior of others, may be a meta-KSA (knowledge, skill, or ability) that influences adaptive selling behavior. To assist researchers and practitioners seeking to identify and improve the self-monitoring skills of salespeople, this study investigates Lennox and Wolfe's (1984) self-monitoring scale with a sample of salespeople and one with sales managers. Although a hypothesized relationship between self-monitoring and job performance was supported partially, our results highlight potential problems with the measure. Further investigations are needed to determine whether or not the problems lie with the scale or the concept of self-monitoring in a selling context.     

“I think I can…I think I can”: The impact of perceived selling efficacy and deal disclosure on salesperson escalation of commitment

Salespeople have considerable autonomy in the choices they make with respect to both the types and amounts of resources they deploy in pursuing potential customer accounts and specific sales opportunities. Building from a prospect theory framework and also leveraging self-justification theory, this research reports the results of three experimental studies conducted on practicing salespeople. The experiments help shed light on several factors that might influence a critical form of salesperson resource allocation decision — the allocation of the salesperson's own ‘selling time’ which is devoted to a specific sales opportunity. Study 1 establishes that an escalation of commitment effect exists when salespeople pursue a new customer opportunity, and that “competitive intensity” is a key variable that attenuates the escalation of commitment effect. Study 2 demonstrates that a salesperson's “selling efficacy” – or their confidence in their abilities and decision-making in sales – has important, but mixed, effects on the salesperson's allocation of scarce resources. Finally, study 3 broadens this research by showing that environmental factors such as the extent to which the salesperson has ‘disclosed’ their pursuit of a new sales opportunity within their own organization can also influence the escalation of commitment effect on how they allocate resources in pursuit of that business. The article's broader contribution is that it offers an overdue and preliminary glimpse into the levers which shape and influence how, when, and why salespeople apply resources in the pursuit of new customers.     

Emotions and salesperson propensity to leave: The effects of emotional intelligence and resilience

Emotions constitute a powerful psychological force that can significantly influence the behavior and performance of salespeople. However, emotions in the workplace still constitute an under-developed area of study, mainly in the field of sales. Sales turnover is also particularly important in relation to sales management due to the nature of sales positions, their historically high turnover levels, and the difficulty involved in filling them.In view of the need to broaden knowledge on how to more successfully retain valuable salespeople, and the fact that B2B selling jobs are not the same across the board, this paper, while controlling the type of selling situation, analyzes the influence of two emotional skills (i.e. emotional intelligence and resilience) on salesperson propensity to leave their organization, both directly and indirectly, through their impact on work–family conflict and emotional exhaustion. The moderating effect of servant leadership perceived by salespeople on the relationship between emotional exhaustion and intention to leave is also addressed. Information provided by 209 salespeople from 105 enterprises from various industries confirms the hypotheses put forward and highlights the importance of encouraging the development of emotional skills as a way of alleviating work stress and reducing salesperson turnover. In addition, the results confirm the contribution of servant leadership towards reducing the effect of emotional exhaustion on salesperson intention to leave.     

Internet integration into the industrial selling process: A step-by-step approach

The Internet has evolved into an outstanding tool for industrial salespeople. Reps use the Internet to prospect new accounts more efficiently, serve existing customers more effectively, and build more enduring business buyer relationships. This paper examines these practices and possibilities in detail while offering ways to facilitate and augment WWW usage. Each phase in the selling process is addressed by proposing specific websites, web-based tools, and techniques that industrial salespeople can use to further enhance their selling competitiveness and effectiveness. Examples of how the Internet is used by salespeople in a variety of industries are described. A series of propositions and a new conceptual model summarizes the positive effects of the increased Internet utilization on individual selling effort. The paper concludes with a discussion of managerial implications for sales management and recommendations for future research.     

Steering the Sales Force for New Product Selling: Why Is it Different,and How Can Firms Motivate Different Sales Reps?

This study investigates how to direct and assemble the sales force for new product selling. In a first step, the authors draw on self‐determination theory to explore and empirically test a threefold conceptualization of motivation. Results provide insights into why sales force steering works differently in the new product selling context. Specifically, results show that for new products’ financial performance, internalized new product selling motivation is more important than intrinsic and controlled motivation. In a second step, the authors show how firms can motivate different sales reps to achieve higher financial performance of new products. In doing so, they examine the interaction effects of sales reps’ predispositions and widespread firm‐steering instruments on new products’ financial performance. Results reveal that the new product sales orientation of the bonus strengthens the positive relationship between sales reps’ performance predisposition and new product financial performance but weakens the relationship between sales reps’ learning predisposition and financial new product performance. Moreover, results reveal that the new product sales orientation of the periodic review strengthens the positive relationship between sales reps’ learning predisposition and financial new product performance. A post hoc analysis shows that a differentiated steering approach that matches appropriate steering instruments with sales reps’ varying predispositions substantially enhances reps’ financial new product performance.     

SOCO's impact on individual sales performance: The integration of selling skills as a missing link

Conventional wisdom suggests that a customer orientation is a vital cornerstone upon which the success of salespeople is predicated in terms of serving their customers and prospects. However, at a pragmatic level, not all salespeople practice a customer-oriented philosophy in their day-to-day selling. In fact, decades of sales research provide largely inconclusive results with respect to individual salespersons' customer orientation and performance outcomes. We argue that for customer orientation to be a predictor of sales performance, specific selling skills must be present. Furthermore, we empirically demonstrate that without these requisite selling skills, salespeople are better off utilizing a sales orientation approach, as opposed to a customer orientation approach. More provocatively, this research shows that a “missing link” in the long standing body of research on the SOCO (sales orientation/customer orientation) perspective is that specific selling skills can impact sales performance directly as well as moderate the impact that both a “sales orientation” and a “customer orientation” ultimately have on sales performance.     

An empirical investigation of technology acceptance in a field sales force setting

Gaining technology acceptance by salespeople is critical in modern organizations. Sales technology is an integral tool for enhancing customer-related information management and knowledge development. Knowledgeable salespeople are able to use the information and knowledge to practice adaptive selling, improve performance, and enhance their firm's competitive advantage in the marketplace. This study proposes and tests a model linking technology acceptance to adaptive selling and job performance of field salespeople. The results provide evidence that behavioral intentions to use technology positively affect salesperson performance through enhanced propensity to practice adaptive selling. Implications of the study for managers and researchers are discussed.     

Managing salespeople strategically when promoting new products – incorporating market orientation into a sales management control framework

Salespeople play a pivotal role in promoting new products. Therefore, managers need to know what control mechanism (i.e., output-based control, behavior-based control, or knowledge-based control) can improve their salespeople’s new product sales performance. Furthermore, managers may be able to assist salespeople in performing better by having a strong market orientation. The literature has been inconsistent regarding the effects of sales management control mechanisms and has not yet incorporated market orientation into a sales management control framework. The current study surveyed 315 Taiwanese salespeople from publicly traded electronics companies with the aim of contributing to the sales management literature. The results show that sales management controls can directly affect salespeople’s innovativeness, which, in turn, affects new product sales performance. However, sales management controls cannot affect performance directly. Furthermore, market orientation can positively moderate the relationship between salespeople’s innovativeness and new product sales performance.     

Designing sales force satisfying selling positions: a conjoint measurement approach

To design selling positions that appeal to both new and incumbent salespersons, management needs to understand salespersons' preferences for job characteristics. The study reported here exemplifies an effort to operationalize salespersons' preferences for job and task characteristics that takes account of both career stage and gender. Findings indicate that salespeople in the sample prefer salary-based compensation and that female salespeople prefer sales jobs that are fixed in location.     

Identifying the Key Success Factors in New Product Launch

Effective product launch is a key driver of top performance, and launch is often the single costliest step in new product development. Despite its importance, costs, and risks, product launch has been relatively underresearched in the product literature. We reviewed the extant literature on product launch to identify the most critical strategic, tactical, and information-gathering activities influencing the launch success. We then used a retrospective methodology to gather managerial perceptions regarding launch activities pertaining to a recent new product launch, and the product's performance in terms of profitability, market share, and relative sales. A mail survey of PDMA practitioners elicited data on nearly 200 recent product launches. Successful launches were found to be related to perceived superior skills in marketing research, sales force, distribution, promotion, R&D, and engineering. Having cross-functional teams making key marketing and manufacturing decisions, and getting logistics involved early in planning, were strategic activities that were strongly related to successful launches. Several tactical activities were related to successful launches: high quality of selling effort, advertising, and technical support; good launch management and good management of support programs; and excellent launch timing relative to customers and competitors. Furthermore, information-gathering activities of all kinds (market testing, customer feedback, advertising testing, etc.) were very important to successful launches. We conclude with observations about current product launch practice and with recommendations to management. Logistics plays a key role in successful strategy development and should receive the requisite amount of managerial attention. In particular, activities involving logistics personnel in strategy development showed much room for improvement. We also find that the timing of the launch (i.e., when the launch is conducted from the point of view of the company, the competition, and the customer) is just as important as whether the activities are performed. More managerial attention should be devoted to launch timing with respect to all of these viewpoints in order to improve the chances of success.     

More effective sales force reporting

As the need for marketing intelligence by sales and marketing managers grows more essential, field sales personnel are increasingly being asked to gather and report information. Many executives realize the potential value of using salespersons to supply information useful to management decision making. The sales force is familiar with their territories, their customers' needs and sources of information inside customer organizations, their competitors' marketing activities, and trends in product acceptance. The incremental costs and effort required are low compared to other research methods, since information can be submitted within the context of a regular call report system [2, 6, 8].But salespersons have been found to be inadequate and uncooperative reporters in many instances. Numerous field salespersons believe that reporting infringes on their primary responsibility of selling, and furthermore that management apparently doesn't make use of the resulting information anyway. Thus, while salespersons have access to a wealth of marketing information of potentially great value to the firm, they are often inadequate, unreliable, and unmotivated reporters [4, 5].This article reports the results of a study designed to investigate what management practices contribute to, or detract from, effective reporting of marketing information by salespersons. Current practices in reporting are noted and some recommendations are made to help management improve sales force reporting.     

Relational selling strategy and key account managers' relational behaviors: An exploratory study

Many companies see key account management as a potentially successful way to implement a relational strategy. Nevertheless, the literature suggests that strategy implementation at the sales force level is difficult to achieve, mainly because salespeople may not understand - nor accept - what they are requested to do. Despite their relevance, behaviors of key account managers have poorly been investigated. This article defines and tests a model of relational selling behaviors from the part of key account managers. Results show that the perception of the adoption of a relational selling strategy is associated with some specific key account managers' behaviors (customer-oriented selling, adaptive selling and team selling), but not with others (organizational citizenship behaviors). These findings suggest that potential discrepancies can exist between a relational selling strategy and its implementation at the key account manager level. Based on these results, theoretical and managerial implications are discussed.