Pipeline management for the acquisition of industrial projects

The management and controlling of the industrial project acquisition process, with its staged, funnel-like structure, has been neglected in empirical research so far—even though an effective acquisition process is crucial for economic success. In addition to profitability, the main goal of industrial companies is to implement a pipeline process that ensures that the pipeline is always filled with acquisition projects and results in a constant stream of orders over time. The projects considered are characterized by complexity, uniqueness, and discontinuity. Based on a large-scale survey among German industrial companies, we describe the industrial project acquisition process, where the projects mentioned above are sold on a non-continuous basis to industrial customers. We assess how the industrial project acquisition process is really structured, whether a sales funnel management is applicable and utilized by sales management to monitor and control this process, and whether a sophisticated sales funnel management contributes to enhanced economic success.     

Strategic relationships between boundary-spanning functions: Aligning customer relationship management with supplier relationship management

This review focuses on the potential impact of enhanced strategic relationships between the boundary-spanning functions in supplier organizations. Specifically, the concern is with alignment between the organizational groups managing: marketing, sales and strategic account management; purchasing and supply strategy; and, collaborations and external partnerships. The topic is framed by the organizational evolution being driven by market change, and the search for superior innovation capabilities and business agility. These changes bring new challenges in cross-boundary integration and managing complex market networks. The logic is that strategic external relationships (with customers, supplier and partners) should be mirrored in strategic internal relationships (between the functions with lead responsibilities for managing relationships with customers, supplier and partners). Approaches to enhancing this capability include process management, internal partnering strategies and internal marketing activities. The discussion identifies a number of implications for practice and new research directions.     

Industrial buying during the coronavirus pandemic: A cross-cultural study

With the onset of the 2020 coronavirus pandemic, industrial suppliers are increasingly challenged to close their open sales opportunities and keep generating business. Against this backdrop, the authors of this study investigate which offerings industrial customers are most likely to purchase as the pandemic progresses. Drawing on positive decision theory and empirically investigating 31,353 sales opportunities across 57 countries, the authors show that the coronavirus pandemic significantly decreases industrial customers' purchase probability, especially for high-priced offerings. In countries with low uncertainty avoidance and strong long-term orientation (e.g., China, India, Singapore), purchase probability is less affected by the pandemic. The coronavirus pandemic even increases purchase probability for offerings with low prices in countries where cultures are simultaneously uncertainty-avoidant and short-term oriented (e.g., Argentina, Brazil, Mexico). This is presumably because customers safeguard their operations in the face of impending supply shortages. Consequently, this helps suppliers focus on the right sales opportunities to secure their business during exogenous global shocks such as the coronavirus pandemic.     

Reputation gaps and the performance of service organizations

Links between the reputation of organizations and their financial performance are intuitively attractive to assume, but often difficult to demonstrate convincingly. Gaps between employee and customer perceptions of corporate reputation have traditionally been associated with poor performance. In the context of service business and applying assimilation‐contrast theory, we hypothesize that the nature of such gaps will, in reality, have a differential effect on future revenue depending on the size and valence of the gap. The effects of small gaps should be assimilated by customers, but larger ones have a greater potential of creating a contrast effect resulting in significant increases or decreases in subsequent sales. In businesses where employees have a more positive view of the company reputation than customers, we hypothesize a growth in future sales, and where they have a relatively more negative view, a decline. We test the effects of what we label as reputation gaps in 56 business units drawn from nine service organizations and confirm our hypotheses. Among the implications of our findings are that managing reputation by elevating employee perceptions of a company's reputation above those perceived by its customers holds the potential to enhance future sales. Copyright © 2009 John Wiley & Sons, Ltd.     

Organizational innovativeness and firm performance: Does sales management matter?

Salespeople interact with individual customers to drive revenues by identifying and finding solutions for customer needs. The external knowledge salespeople acquire in conjunction with the network position they hold in their firm suggests that the sales force has great value in facilitating organizational innovativeness. Sales managers set the tone for sales operations, and an intellectually stimulating sales manager can create ripple effects of innovative thinking across the sales force and organization. In this paper, we propose that sales manager intellectual stimulation helps drive organizational innovativeness and, in turn, sales growth. Survey data collected from a cross-industry sample of business-to-business sales leaders are linked to an objective measure of firm sales growth. The results indicate that sales manager intellectual stimulation leads to organizational innovativeness. They also suggest that the degree to which the sales department is integrated within the firm strengthens this positive relationship. Finally, the relationship between organizational innovativeness and sales growth follows a non-linear U shape.     

Online group buying: Some insights from the business-to-business perspective

Extant marketing research has examined online group buying (OGB) from the consumer behavior perspective. The goal of this article is to broaden understanding of OGB by offering insights into the topic from the business-to-business (B2B) perspective. In doing so, it offers insights to help stimulate greater interest in and scholarly work on better understanding and improving B2B relationships and outcomes in OGB. Three discovery-oriented qualitative studies were conducted and analyzed using content analysis with an interpretive approach and contingency theory as a theoretical lens. The findings reveal that marketing exchanges through OGB offers businesses the opportunity to raise corporate and product brand awareness, gain an immediate pool of large groups of customers, expand the customer base, sell other products, contribute to better cash flow, encourage positive word of mouth, and increase sales during non-peak sales periods. However, marketing exchanges through OGB may also be challenging for businesses in terms of maintaining business profitability, managing costs, withstanding competition, obtaining support from OGB website operators, and managing customer expectations of continued discounts. These findings should help businesses that promote and sell their products through OGB to become better informed of the potential benefits and pitfalls of engaging in OGB, and thus improve their navigation in the OGB marketplace to achieve desired marketing outcomes.     

Complexity of sales situation and sales lead performance: An empirical study in business-to-business company

Close collaboration in business-to-business relationships has been an interest of both researchers and managers; however, companies are often struggling to obtain the benefits of close collaboration with their customers. Our study examines the complexity of the sales situation from three perspectives 1) relational complexity, 2) complexity of internal sales tasks, and 3) vendor's cross-business unit collaboration, and its effect on the sales lead performance in a business-to-business context. We adopted a mixed methods approach; our data consists of interviews with sales personnel and a Customer Relationship Management (CRM) system data of 4000 sales leads from a large IT company that sells integrated solutions. Sales leads are classified into three categories: win, lost, and canceled. Based on multinomial logistic regression analysis, the results show that close collaboration with customers increases the probability of sales leads to be canceled. Our findings suggest that the selling approach focusing on close collaboration with the customers may not be a method to increase hit rates, due to possible high amount of canceled sales leads. This should be considered when salespeople's performance is measured in highly collaborative business-to-business environment. We conclude our paper with managerial and theoretical implications, and avenues for the further research.     

B2B relationships on the fast track: An empirical investigation into the outcomes of solution provision

In academic and business literature, suppliers providing solutions to their business-to-business (B2B) customers are often described as achieving increased customer retention, higher sales volumes, and enhanced cross-selling. Yet there is limited empirical evidence to support the positive impact of solutions on these customer-related outcomes. Moreover, it is unclear whether suppliers obtain similar outcomes from buyers at different relationship life-cycle stages. This paper aims to address these two gaps and tests the contingency role of the relationship life-cycle in driving future customer outcomes. It proposes that there is a positive effect for solutions provided to recent customers (labeled as “accelerator” role) rather than to established ones (labeled as “leverage” role). Results from a longitudinal analysis of the sales database of a North American company providing solutions to its customers empirically support the “accelerator” role of solutions.     

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.     

Interfacing and customer-facing: Sales and marketing selling centers

Organizations are turning to the collective knowledge of selling teams in order to manage increasingly complex customers and solutions. One specific cross-functional unit that organizations are commonly using when selling to business-to-business customers is a team of sales and marketing personnel. While the interface between sales and marketing has received attention in the literature, which notes the inherent advantages and challenges of incorporating both roles on a team, opportunities remain to examine sales and marketing selling centers (SMSCs): instances where sales and marketing jointly and directly interact on a relatively temporary basis in customer-facing situations. The authors utilize a discovery-oriented, theories-in-use inquiry to better understand customer-facing SMSC processes, facilitators, and outcomes. Based on insights captured from 29 in-depth interviews with informants who each served on SMSCs in both sales and marketing roles, this study extends sales research by providing a dual perspective of those working on SMSCs, thus enhancing the utility of such malleable selling teams.     

Forecasting business needs in the telephone market

The last decade has seen substantial changes in the environment in which U.S. telephone companies operate. As regulated monopolies, telephone companies are experiencing effective competition in several areas of their operations. Additionally the consumerist movement has made regulatory agencies more aware of the requirements of the numerous markets served by the utilities. With “good” telephone service available at reasonable cost throughout the United States, users and telephone companies are more aware of secondary product attributes such as style (decorator sets) and auxiliary features (the ability to place one caller on hold and answer another call). These changes reflect the evolution of the marketing function within the telephone companies and the increasing use of marketing research for product line expansion and sales forecasting. What has caused this shifting perspective on the function of marketing? How have the utilities responded? The following discussion deals with these questions as well as the ways in which marketing research has aided the telephone company in forecasting sales to business customers.     

Outside-in marketing: Why,when and how?

We explore the nature and evolution of outside-in marketing. Outside-in is the marketing view of strategy, with inside-out being the traditional view. We show how outside-in and inside-out clash culturally, and trade off strategically, especially in service. Technological advances in communications and information technology have enabled closer relationships with customers, and “big data” for managing those relationships. The marketing function is important for managing outside-in, because market orientation alone is insufficient. Outside-in management is most effective for focusing on customer satisfaction and revenue, since insights about customer needs and wants tend to move bottom-up through the organization. Taken to its logical conclusion, outside-in implies replacing inside-out, product-focused management (e.g., brand managers) with outside-in, customer-focused management (e.g., customer managers). Customer-focused, future-oriented metrics (e.g., customer satisfaction, customer lifetime value, customer equity) increasingly grab attention away from aggregate, short-term metrics (e.g., product sales). Long-term impact from customer-relevant issues such as discrimination plays out over time, and must be researched using longitudinal methods. Eventually, even the meaning of “outside” will change, as computers increasingly become the customer.     

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.     

What drives customer Re-engagement? The foundational role of the sales-service interplay in episodic value co-creation

As existing business-to-business value co-creation (VCC) contracts approach their planned expiration, customers evaluate incumbent suppliers when forming their decisions to re-engage or defect. During this late stage of VCC, supplier sales and service personnel perform unique activities to support one another and foster VCC re-engagement. To investigate this sales-service interplay, the authors employ an exploratory inquiry consisting of 115 depth interviews across 63 customer accounts. Interviews were conducted with customers following the decision to re-engage or defect from an incumbent supplier. Findings suggest that sales' efforts to renew the VCC contract depend on tactical insights provided by service. Through their involvement with customers, service holds a tactical perspective that can extract micro-level customer insights. Findings also suggest that service's ability to influence supplier-specific knowledge stores within the customer organization depends on macro-level strategic customer directives that may be shared by sales. Further, service's activation of such knowledge stores moderates the relationship between sales' RFP response and the customer's VCC re-engagement decision. The results have implications for the industrial sales and service fields, since the integration of the sales and service teams is critical for garnering intrafirm knowledge flows that drive recurrent VCC within collaborative customer-supplier relationships.     

Social media in B2B sales: Why and when does salesperson social media usage affect salesperson performance?

The importance of social media usage by B2B salespeople has been well documented in the sales literature. In particular, a B2B salesperson's use of social media to prospect for customers and adapt their sales approach have primarily been shown to explain sales performance. However, an increasing body of literature in the sales domain has called for B2B salespeople to be ambidextrous by engaging in service activities aimed at helping their customers. We argue that by giving B2B salespeople an opportunity to communicate directly with their customers, social media is used by salespeople to proactively service their customers and hence can play a critical role in driving sales performance. Drawing from the Task-Technology Fit theory, we develop and test a conceptual model in which B2B salesperson social media usage affects salesperson performance indirectly through value-oriented prospecting and proactive servicing. Additionally peer social media usage was a key moderator in the relationship between B2B salesperson social media usage on the one hand and value-oriented prospecting and proactive servicing on the other hand. We test the model with data from 171 B2B salespeople and find that salesperson social media usage relates positively with proactive servicing and value-oriented prospecting. While we did not find support for the relationship between social media usage and adaptive selling, we did find support for the impact of all three sales activities salesperson performance. In addition, results show that peer social media usage has positive moderating effects on the B2B salesperson social media usage and value-oriented prospecting/proactive servicing relationships.     

Product Growth Strategies in Young High-Technology Firms

This article presents an analysis of the strategies, business practices and growth patterns of 68 small, young, high-technology firms. These firms manufactured high-technology goods or produced advanced computer software products, had at most 100 employees and reported under $30 million in annual sales. In reporting the results of her study, Teresa Pavia writes that neither a technological growth path (new products to existing customers) nor a market-expansion growth path (existing products to new customers) is superior. Practices that minimize strategic dependencies and produce a high-quality product that suits the customer's needs directly (needing no further modifications after the sale) are associated with success. Firms that have used market expansion to grow demonstrate higher levels of systematic planning and describe their industry as rapidly changing. Furthermore, they describe themselves as technologically innovative and their customers as well informed about the products they buy.     

成品油销售企业冬季0号车用柴油质量管理探讨

成品油销售企业在冬季销售0号柴油过程中,经常发生因在低温环境油品结蜡而引发的顾客投诉。认为,成品油销售企业流通过程中存在质量风险的环节主要包括油品入库、出库、运输、进站、储存等。指出,要制定合理的冬季0号车用柴油销售策略和有效的质量管理控制措施,才能避免纠纷投诉。     

How Do Interaction Activities among Customers and between Customers and Firms Influence Market Performance and Continuous Product Innovation? An Empirical Investigation of the Mobile Application Market

Mobile application markets (MAMs) significantly differ from other existing marketplaces at least in two aspects. First, customers (app users) and firms (app providers) frequently interact with each other in real time, which is not common in the conventional marketplaces. Second, many app providers incorporate customers’ opinions or suggestions into their software upgrades, representing one of the most unique and interesting aspects of MAMs. Therefore, it has become critical to understand the impact of interaction activities not only among customers, but also between customers and firms on the market performances of new products in MAMs. One of the most significant issues firms face is whether firms reflect on customers’ postpurchase interaction activities, and the next interesting question is how firms respond to them. This study explores the effects of customer‐to‐customer (C2C), customer‐to‐firm, and firm‐to‐customer interaction activities on market performance. In addition, this study investigates how communication activities influence a firm's tendency to pursue continuous product innovation through research and development (R&D). Using data obtained from a major MAM, T store, three models that are respectively related to product sales, product lifetime, and a firm's R&D activity for product upgrades, are applied to empirically test hypotheses concerning the effects of interaction activities. In our analyses of market performance, a hierarchical log regression model with 10,840 weekly transactions data set related to product sales (model A) and 291 aggregate transactions related to product lifetime (model B) is used. Results indicate that C2C and customer‐to‐firm communication activities have a positive impact on sales, but little relationship with product lifetime. However, a firm's continuous product R&D has a positive impact on both sales and lifetime performance. Our analysis of a firm's R&D (model C) shows that C2C and customer–firm communication increases a firm's R&D activity. Taken together, these results have important implications for customer–firm interactions, market performance, and R&D strategies.     

The impact of the product to service shift in industrial markets and the evolution of the sales organization

Marketing is undergoing a paradigmatic shift that involves a change in focus from the exchange of goods, which are usually manufactured output, to providing a service, which is fundamental to economic exchange (Vargo & Lusch 2004).Evidenced by three decades of marketing transformation in B2B (business-to-business) sales organizations, this paper examines the evolution of sales organizations as a result of the shift from product- to service-focused commerce. This paper also identifies areas of future research and practice in marketing. Findings suggest that the traditional product-focused sales organization will evolve in two directions. First, enhanced use of technology will reduce some traditional sales functions and even face-to-face contact. Second, customers who are important to marketers will experience improvements in the level of customer contact—leading to growth in customer-focused sales organizations and an increase in global account management teams. Changes in sales organizations will also lead to changes in the selection, training, and recruitment of salespeople as well as their roles.Direction for future research and managerial implications are highlighted throughout the paper as are changes likely to occur in sales organizations.     

基于风险管理的商业银行价值创造模式研究

商业银行是经营风险的企业。商业银行通过控制自身业务经营活动中的风险和主动为客户管理风险两个途径寻求建立持续竞争优势,进而创造价值。由此产生四种基本的价值创造模式：预控制、对冲操作、价值创新和重组模式。