Marketing research through the salesforce

This article reviews the use and role of the salesforce as an extension of the marketing research function. The purpose of this paper is to provide a tentative assessment of the role of salespeople in the marketing research function as applied to an advanced-technology company active in several industries, countries, and continents.     

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.     

An analysis of buying center decisions through the salesforce

In this paper we examine whether classical customer surveys that are used to predict group buying decisions can be replaced by the method of interviewing the salesforce. We set up a two-step research approach. In the first step, we examined the predictive performance of different measurement processes in a salesforce survey (self-explicated approach and limit conjoint analysis for the preferences and constant sum scale and for the influence measurement limit conjoint analysis). In the second step, we conducted a classical customer survey using limit conjoint analysis and compared it with the predictions derived from the salesforce survey. Our results show that when surveying the salesforce (1) limit conjoint analysis is superior to the self-explicated approach in measuring preferences. With regard to the measurement of influence, we did not find any significant differences between the two procedures. (2) Our major findings are that the predictions derived from the salesforce survey are not only more practical because of the relatively low costs but that they also outperform those from the customer survey.     

From Experience: Why Bad Things Happen to Good New Products

The rollout of a new product can be an exhilarating time for everyone involved in the development and launch effort. Just as a construction crew may meet at a local gathering place to hail the “topping-off” of a new home or office building, the development team—or possibly the entire company—may gather to celebrate a new product’s release. Launch meetings generate enthusiasm among the salespeople, and favorable reviews lead to an influx of inquiries from prospective customers. Despite this initial wave of enthusiasm, however, customer desire for the innovative new product may soon wane. Does this mean that everyone was wrong about the new product’s potential?Citing three examples of launches that followed this pattern, Neil Rackham addresses a key question for product development professionals: “Why should promising products from highly respected companies fail despite clear evidence of market need, strong marketing support, and real enthusiasm and energy from salespeople?” Based on his own experience in these three cases, as well as research investigations into elements of these and other launches, he rejects the conventional wisdom that the problem stems from resistance to change on the part of either the customers or the salespeople.He suggests that the problem rests with the way in which highly innovative products are launched to the salesforce, which in turn influences the manner in which the products are sold. He notes that the launch of an innovative product typically focuses on all the great new features the product offers. However, the new features that make the product so exciting may draw the salesperson’s attention away from the most important issue in the selling process: the customer’s needs. In other words, he suggests that the launch and the selling of innovative products tend to be product-centered instead of customer-centered, causing customer interest to fade as the selling process progresses.Rather than fill the salesforce with details about a product’s “bells and whistles,” he suggests that the launch should focus on describing the product in terms of the problems it solves for the customer. Similarly, rather than bombard customers with details about product features, he suggests that the salesperson should focus on asking questions. In this customer-centered approach, the product’s features are considered only in terms of the manner in which they meet the customer’s needs.     

Increasing resilience by creating an adaptive salesforce

During disruptions such as the COVID-19 pandemic, the resilience of any commercial organization becomes a critical characteristic. This paper examines the flexibility of the sales process—that is, adaptive selling—as an analog to resiliency, and recommends that firms create an adaptive salesforce to increase resilience. By examining the extant research and conducting interviews with sales leaders, the findings of this paper suggest that an adaptive salesforce should focus on three areas of change within team structures. The first is an increase in flexibility and adaptiveness for the functions that the salesforce performs. The second area is an improvement of the adaptiveness of scale in which sales functions can be rapidly insourced or outsourced. The final area is technology adaptiveness, in which the salesforce adopts the use of technologies that are most relevant to customers. Implications for the firm, sales function, and individual salespeople are also derived.     

Choosing an optimal channel mix in multichannel environments

In the last two decades, particularly with the advent of the Internet, multichannel strategies have come to the fore in business-to-business marketing. Multichannel strategies allow firms to reach customers in multiple ways, increasing the firms' reach. In addition, multichannels allow customers to reach businesses by using their preferred channel (e.g., Internet, salesforce, or value-added reseller). The advantages of reaching increasing number of customers through multiple channels (e.g., sales, trial, profit) are partially offset by two potential negative effects of multiple channels. First, multiple channels create conflict that may dissuade some channels' members from carrying the firm's product. Second, with an increase in the number of channels carrying the product, the sales derived from each new channel drops making it difficult for a firm to recover its costs. Based on these considerations, the paper provides a framework that will allow firms to develop optimal channel mix in multichannel environments. We test the framework in the context of a software firm and provide academic and managerial implications.     

Joint determination of inventory replenishment and sales effort with uncertain market responses

An optimal joint operational and marketing decision is crucial for robust supply chain management. This paper addresses concurrent determination of inventory replenishment and sales effort decisions such as price, incentives to salesforce, and short-term promotions, or a combination of them. Market responses to sales efforts are typically highly uncertain, and demand in each period has its distribution dependent on the selected sales effort. In each period a replenishment order may be issued, which incurs both fixed and variable ordering costs, and at the same time the sales effort is also determined, the execution of which may incur costs. For such a model, the previously developed methods which are used for the joint inventory-pricing models become inadequate. A computational procedure for obtaining an optimal joint policy is addressed, and the conditions for the optimality of that policy are identified.     

Salespeople satisfaction and performance feedback

A model of the relationship between sales supervision and salesforce job satisfaction is developed and tested. The model hypothesizes that salespeople will experience greater job satisfaction when they receive more performance feedback and more opportunity to participate in their supervisor's decision making processes and when they have supervisors who are high on consideration and initiation of structure. In addition, because of recent empirical evidence suggesting a possible consideration/initiation of structure interaction effect on job satisfaction, a hypothesized interaction effect was examined in this study. The results suggest that performance feedback is an important predictor of job satisfaction. Furthermore, they indicate that the sales supervisor's consideration and initiation of structure are related to the salesperson's satisfaction with certain aspects of the job. Participation and consideration/initiation of structure interaction were not found to be significant predictors of salesforce job satisfaction.     

Does information and communication technology improve job satisfaction? The moderating role of sales technology orientation

Empirical research concerning the role of information and communication technology (ICT) in shaping business-to-business salesforce job satisfaction remains relatively scarce. The authors propose and empirically test a causal model that theoretically represents structural relationships among factors comprising ICT and eventual salesperson job satisfaction. Study results indicate that ICT indirectly influences job satisfaction through salesforce administrative performance. While ICT infrastructure, training, and support positively relate to administrative performance, none of them influence outcome performance significantly. In addition, salesperson technology orientation moderates the effect of both ICT infrastructure and support on job satisfaction. Managerial insights and implications from the research are discussed.     

“Salesforce deployment analysis”

An approach to designing a decision support system for salesforce deployment analysis is developed and illustrated with an application example. The approach incorporates research findings from salesforce decision modeling over the last decade. The features and limitations of decision models and methods of analysis are discussed. Guidelines are presented for each stage of decision support system development, while the possibility of expanding a basic deployment analysis system into a more comprehensive sales management decision support system is suggested.     

An empirical analysis of sustained advantage in the U.S. pharmaceutical industry: impact of firm resources and capabilities

The authors test a model of the relationships among firm resources, firm capabilities, and sustained competitive advantage between 1971 and 1989. Sustained comparative advantage was captured by two variables: therapeutic differentiation and global NCEs. The results show that R&D and salesforce expenditures have indirect and direct effects, respectively, on sustained competitive advantage. Firm capabilities were differentiated into component and integrative capabilities. Component capabilities were captured by the firm’s internal R&D efforts and therapeutic market focus, while integrative capabilities were concerned with the firm’s ability to obtain FDA approvals and to develop radical new drugs. Findings on each of these four capabilities on therapeutic differentiation and global NCEs are mixed. The direct and indirect effects of these resources and capabilities on therapeutic differentiation and global NCEs suggest important managerial implications in the way firms coordinate and combine their assets so as to achieve sustained competitive advantage. Copyright © 1999 John Wiley & Sons, Ltd.     

Industrial salesforce satisfaction and performance with Herzberg's theory

Sales managers are seeking answers to facilitate the salesforce motivational process. This study empirically tested one of the most prominant motivational theories, which, some authorities consider the leading work formulated on the idea that satisfaction leads to performance. This study found no support for Herzberg's dichotomy or the correlation between satisfaction and performance.     

Industrial organization in oil markets since the embargo

Recently it has become obvious that OPEC, a cartel which only a few years ago could cause substantial redistribution of wealth in its favor, is now hard pressed to protect these gains. In the history of cartels the phenomenon is not new, and the conventional tools of industrial organization analyses are used here to provide insights into the process. The dynamics of structural change and the conduct of market participants have undermined OPEC's dominance in world crude oil trading. Strategies adopted by major energy companies which have contributed to weakening the cartel are examined. The development of crude reserves alternate to those held by OPEC has been the focus of large investment expenditures. In addition, the development of flexible trading policies for purchases of crude oil has enhanced bargaining power with alternate suppliers. The paper also examines marketing and organizational changes within OPEC. Less and less are OPEC members simply sellers of crude oil. Increasingly, crude is bartered or sold in packages containing mixtures of LNG or refined products. Moreover, corporate diversity among various OPEC national oil companies is growing as major new facilities in refining, marketing, transportation and chemical production come into operation. The very fact that this complexity reflects explicit decisions by participants indicates the growing force of individual as opposed to group interest maximization and permanently weakens the cartel's ability to exercise market power.     

Power, conflict, and cooperation: The impact of guanxi in Chinese marketing channels

This paper tests the impact of guanxi on behaviors among firms in a Chinese marketing channel. Guanxi is operationalized in this paper as emotional closeness and interactive state. We find that the emotional closeness between channel-boundary personnel of firms has a positive impact on their exercise of noncoercive power, a negative impact on their exercise of coercive power, and a negative impact on the perceived conflict between them. In addition, emotional closeness has an indirect but positive impact on perceived cooperation. Interactive state between the boundary personnel of two firms has a positive impact on a firm exercising noncoercive power and a negative impact on perceived conflict between them. At the same time, it is positively related to a firm exercising coercive power. This shows not only the significant influence of guanxi on a firm's channel behaviors but also the constructive effects of both emotional closeness and interactive state on marketing channel behaviors in China.     

Patterns of cooperation during new product development among marketing, operations and R&D: Implications for project performance

Successful new product development is fundamentally a multidisciplinary process. While this view has helped lead management to the wide‐spread adoption of cross‐functional new product development teams, in this study we question whether simply increasing the level of functional integration is truly a guarantee for enhancing the performance of new products. To assess this we examined patterns of cooperation between marketing, R&D, and operations at both early and late stages of the new product development process for 34 recently developed products whose level of innovativeness ranged from high to low. A unique feature of this study is that data were collected from four sources for each project. This included personal interviews with a project leader and written surveys from marketing, operations, and R&D personnel on each project. Findings from this study reveal that: (1) functional cooperation typically increases as the process moves from early to late stages; (2) cooperation between marketing and R&D is highest during early stages of the process, but for marketing and operations, and for R&D and operations, cooperation typically increases as the process moves from early to late stages; (3) higher project performance — irrespective of the level of project innovation — is demonstrated when cooperation between marketing and R&D, and cooperation between operations and R&D is high during early stages; (4) late stage cooperation between marketing and operations, and R&D and operations is a key determinant in project performance for innovative products but not for noninnovative products, and; (5) that early stage cooperation between marketing and operations is associated with superior performance for low innovation projects but is also associated with poor performance for innovative projects. Findings from this study demonstrate that the importance of cooperation between specific functional dyads (i.e., marketing — R&D; R&D — operations; operations ‐ marketing) indeed varies by time (i.e., early vs. late stages), and by the level of innovativeness (i.e., new‐to‐the‐world vs. modifications) associated with the new product being developed.     

论“共主体”营销话语的建构与践行——关于现代营销近视症的矫治研究

本文针对当前营销理论和实践存在的"外形化"问题,梳理了莱维特提出营销近视症后的营销理论发展进路,得出该近视症并没有得到根治而且有新变异的论断和具有主体中心论特征与弊端的现代营销近视症;认为要根治该近视症,首先应克服"现代营销者研究现代营销"以及由此产生的"营销研究的近视症"局限,以营销研究者的身份、在跨学科和方法论高度与层面去寻求突破性思路和方法。基于这种认识,本文萃取和应用"后现代性"、"主体间性"与"网络嵌入性"等多学科话语作为矫治这种营销近视症的创新方法,重构了具有"消解对立、善待他者、与他者网络化互嵌共生"意蕴的共主体营销新话语,并论述了践行这种营销新话语的方式、机理和愿景。     

Synergy,environmental context,and new product performance: A review based on manufacturing firms

This study adopts a meta-analytic approach to review the effects of technology synergy, marketing synergy and environmental context on new product performance by aggregating the empirical evidence documented in studies published from 1979 to 2011. Based on this aggregation, the results from a structural equation analysis show that (a) increasing technology and marketing synergies improves new product performance and the performance effect of marketing synergy is stronger than that of technology synergy; (b) increasing technology synergy enhances product advantage, which increases new product performance, whereas increasing marketing synergy does not; (c) increasing technology and marketing synergies may hinder product innovativeness; and (d) improving product innovativeness increases new product performance through product advantage. These findings suggest that ignoring the intermediary roles of product advantage and innovativeness may lead to an incomplete understanding of the relationships among technology and marketing synergies, environmental context, and new product performance. The results also demonstrate that technological turbulence affects new product performance through product innovativeness and advantage; in contrast, market intensity has a direct effect on new product performance. Future studies can examine the relationships among synergy, product effectiveness, and new product performance by constructing a mediated moderation or moderated mediation framework based on the environmental context.     

Research-Based Pedagogy For New Product Development: MBA's Versus Engineers In Different Countries1

An experiential exercise based on the meta‐analysis results reported by Montoya‐Weiss and Calantone [22] was used in eleven graduate classes, all electives in technology management, at five different institutions in the U.S., Germany, Hungary, and the Czech Republic, during the period 1999–2001. The purpose of this article is to describe the details of this exercise used to promote awareness of the process leading to relative success of new product commercialization and the results of testing hypotheses on the differences between classes from different countries (i.e., in Europe and the U.S), and professional disciplines. During the sixth meeting of the course, new product development is introduced to the class using a discussion of the value of academic research in this field. First, the results of the meta‐analysis are reviewed and then converted to a method that can be used to screen new product introduction cases for potential success. The entire exercise is devoted to the prime factors that drive commercial success of new products. This is done as part of a larger unit on new product development in the context of technological innovation. Second, students are collectively asked to evaluate the potential of the introduction of a new ultrasound product described in a business publication article, which serves as the teaching case in this instance. The exercise culminates with the class “voting” on the probability of success of this new ultrasound product introduced in the short case. Predicted differences in the form of more optimistic probability estimates turned out to be supported for class composition (e.g., discipline) but not for country (U.S. vs. rest‐of‐world). Although all classes correctly predicted the eventual success of this new product (>60% success rate), graduate engineers were significantly more pessimistic than heterogeneous groups of MBA students in their average probability estimates for new product success (grand mean of 62% vs. 75% respectively). Implications of these results are discussed. Future research might investigate the sources of these differences and the subtle differences within, as well as between, these groups. For example, in MBA classes, the differences between marketing and operations majors might be important and for technical professionals, the differences between electrical engineers and mechanical engineers would make a good comparison. Further, a broader range of geographic regions could be evaluated such as Asia and South America. The results of interventions to promote optimal diversity in new product and venture teams might also be a valuable research stream. © 2002 Elsevier Science Inc. All rights reserved.     

The Roles of Marketing and Industrial Design in Discontinuous New Product Development*

Radical or “discontinuous” products based on new technological breakthroughs are playing an ever‐increasing role in the success of firms. However, little research has been conducted that investigates the roles of marketing and industrial design (ID) in the development of these types of products. Further, past research has tended to overlook the role that industrial design, and the impact of the marketing‐industrial design interaction, can have on the development of discontinuous new products. Frequently, the term design is used broadly or is equated with engineering; thus, while the marketing–research and development (R&D) interaction is studied, the marketing–ID as well as the industrial design–R&D relationships are not considered. This article examines the roles of marketing and industrial design in the product development process for discontinuous innovations. Specifically, questions concerning how and the degree to which marketing and industrial design are integrated into the development process are investigated. The investigation employs multiple methods, or triangulation, in order to secure an in‐depth understanding of the roles of these disciplines. In the course of examining these questions, key factors influencing industrial design and marketing involvement are identified and preliminary models are examined. The research, which was conducted in two phases, employed a mixed‐method, multiple sample design. The methods used included a survey, field observation study, and depth‐interviewing. Data were collected from three different samples: R&D managers, project team members (including personnel from various disciplines—marketing, R&D, industrial design, engineering, etc.), and industrial design managers. The use of the different data sources and sampling of various groups of managers was employed in order to provide a rich context for investigating the research questions of interest. In addition, a preliminary analysis of factors (e.g., degree of product discontinuity, product innovation objectives, process discontinuity, process formality) identified in the first phase was conducted, and these relationships were explored further in the second phase of the research. Findings across the two phases of this research suggest that the development of discontinuous new products involves a process that is different from more conventional new product development—particularly as it concerns the roles of marketing and industrial design. The high degree of discontinuity inherent in such projects, along with the strong R&D orientation often surrounding them, results in delayed involvement of marketing and ID, as well as altering their roles in the new product development (NPD) process. Factors such as the degree of product discontinuity (DPD), process discontinuity (PCD), and process formality (PF) seemed to exert a differential influence on the involvement of marketing and ID. Although their roles and involvement are altered in discontinuous new product development, this research suggests that marketing and ID roles in this context involve increased challenges with respect to validation of key assumptions and product application directions. Additionally, managers operating in this development context need to explicitly consider the influence of factors such as discontinuity level in undertaking NPD projects with respect to how it affects the execution of industrial design and marketing activities.     

关于供电企业营销管理的思考

随着电力体制改革不断深化,传统的经营管理理念和作法已不适应形势发展,需探索研究新形势下的电力营销工作。为此提出了树立客户至上,形象带动、全员营销,依法营销等营销观念,并对存在的问题,如市场意识淡薄、营销体系落后、服务水平不高、电费回收较难等,提出了应采取的措施。