Values,the key to business in 1990 and beyond∗

This article is concerned with the changes which have affected the personal selling function in industrial markets in recent years. It reviews research findings from the UK, Europe and America, and discusses the implications for sales force management and sales training. It concludes that industrial marketing must focus upon key account relationship management, rather than the manipulation of the four Ps in order to create competitive advantage, and that radical new approaches are needed in sales training which reflect the changing nature of the sales person's role, and which may be demonstrated to have a positive affect on selling effectiveness.     

Segmentation and communication in the industrial marketplace

This article reports the results of a study undertaken in an intensely competitive industrial market in which the sponsoring company needed to identify those segments of the market that would lead to sales growth. The marketing planning and segmentation literature is used to provide conceptual guidance in developing a viable marketing strategy. Commercially available data were combined with data obtained from a telephone survey to identify potential new customers and to test a series of hypotheses. The results of the study suggest that 1) awareness of the company by potential buyers, 2) the size of the buyer's firms, and 3) the geographic location of the buyer's firms are all related to the buyers' interest in the company's products and their willingness to receive both impersonal and personal communications from the company.     

Consumer Brand Marketing through Full- and Self-Service Channels in an Emerging Economy

A unique characteristic of emerging economies is the wide variety of dominant channel formats. We evaluate the influence of a brand's marketing mix on channel partners and consumer sales in both full and self-service channels in one emerging economy (Brazil). We use monthly stock-keeping-unit (SKU) level sales, and marketing mix data from the beverage category in southeastern Brazil spanning more than four years. In this study, we specify a panel vector autoregression framework with error decomposition to account for endogeneity between sales and marketing mix, cross-sectional heterogeneity among SKUs, seasonality, and the different aggregation of marketing mix elements across the channels. The results show that structural differences in these channels cause differences in the responses to some of the manufacturers' marketing mix elements. Package size variety, price and merchandising have a greater long-term effect on sales in self-service than in full-service channels. Brands' channel relationship programs support price increases in self-service channels without a corresponding decrease in sales. Distribution gains are important in both channels. In the full-service channel, package size variety has the highest long-term effect among all of the modeled marketing mix elements. Our study highlights that marketing mix strategies popular in the self-service dominant channels of the developed economies are not as effective in the full-service formats that remain important in emerging economies.     

Relative Presence of Business-to-Business Research in the Marketing Literature

Relative to its contribution to the U.S. and other developed countries economies, industrial and business-to-business marketing have been underrepresented in the marketing literature. To determine the extent of this underrepresentation, the authors have evaluated thirty-one marketing journals beginning with the initial publication of the Journal of Marketing in 1936. Without the introduction of journals whose specific focus is industrial marketing, the underrepresentation would have been even more severe than it is currently. Six general research areas were also looked at to determine what trends in industrial marketing research have existed. These areas are: buyer behavior, sales management, marketing relationships, innovation and new product development, marketing strategy, and channels of distribution.     

Estimating Firm-Specific and Relational Properties in Interorganizational Relationships in Marketing

ABSTRACT

This research attempts to distinguish empirically between the potential influence of a manufacturer as compared to the influence of a manufacturer's salesperson over an industrial distributor. Given the existence of such a distinction, the scope of such influence is examined with regard to a distributor's business in eight different areas of potential influence: price, order quantity, product line, advertising and sales promotion, customer service, inventory, customer credit, and display. Data were collected from 412 industrial distributors in a marketing channel. The authors utilized regression analysis to distinguish between manufacturer and manufacturer salesperson power. Then, factor analysis was utilized to determine if the salesperson does have power over policy areas apart from that of the manufacturer. Research results suggest that the manufacturer's salesperson, compared with the manufacturer, possesses a different domain of power than does the manufacturer in a channel containing an industrial distributor.     

Differences between Presidents' and Sales Managers' Perceptions of the Industry Environment and Firm Strategy in Small Industrial Firms: Relationship to Performance Satisfaction

The industrial sales force is the primary source of information about the competitive environment. Differences of perceptions of that environment between the national sales manager and the firm president in small industrial firms may reflect inadequate environmental information input into strategic decision-making. The sales force is a major element in implementation of strategy and differences between perceptions of firm strategy may reflect inadequate coordination and communication between the chief strategy decision-maker and the manager who is responsible for implementing that strategy in the market place. It would be expected that these differences in perceptions would impact negatively strategy formulation and execution resulting in unsatisfactory firm performance. This study surveyed the environmental and strategy perceptions of presidents and national sales managers in small to medium-sized industrial firms as well as presidents' satisfaction with firm profitability and marketing/sales effectiveness. The average absolute difference in environment perceptions has a negative relationship with satisfaction with profit. The average absolute difference in strategy perceptions has a negative relationship with marketing/sales effectiveness. This latter relationship is especially strong in an environment high in capital spending variation and for larger firms. The authors suggest implications for managers based on these results.     

Conceptualization and Integration of Marketing Intelligence: The Case of an Industrial Manufacturer

Purpose: The primary goal of this article was to conceptualize a systematic marketing intelligence process for industrial manufacturers because, up until now, such concepts have only been focused on consumer goods settings. Hence, this article investigates how marketing intelligence activities are developed and managed effectively in industrial markets.

Methodology/approach: The authors conducted a case study of Maschinenfabrik Reinhausen, a German based manufacturer of regulation technology for power transformers.

Findings: We found that a systematic marketing intelligence process should be based on the resource- and market-based view of strategy as well as on the market orientation construct. When implementing marketing intelligence, the integration of the sales force within the whole process is the crucial lever for an industrial company. The formalization of the process is necessary to ensure its continuity and acceptance; however, the varying intensity allows the necessary flexibility of the process.

Research implications: The constraints of the decisive process steps of marketing intelligence have to be further enhanced for industrial markets. It is important to find out how the integration of the sales force can best be designed to incorporate reward systems and motivation structures, and how to establish a corporate marketing-minded culture throughout the organization.

Practical implications: The important steps for a well implemented marketing intelligence process are a preparation phase, followed by the gathering, analysis, and dissemination of information. This article highlights the success factors for each process step. Above all, managerial and organizational commitment is necessary for the implementation of the whole process.

Originality/value/contribution: By focusing on the industrial manufacturing business, this study provides deep insights into a neglected area of research. Light needs to be shed on marketing intelligence in industrial markets, where the lack of traditional market research has to be compensated.     

Meta‐marketing: Unifying organisational focus to achieve marketplace goals and objectives

Marketing and sales have not received the same emphasis from western leadership that they have in Japan. In the American model, one group markets, another sells, another designs and manufactures, and another sets organisational goals and objectives. Each area becomes separate and isolated without a common focus. Well‐designed meta‐marketing strategies directed by senior management can facilitate rapid and productive responses to changing environments.

To excel in a global economy, the field of marketing must take a new position, rethinking its fundamental relationship to all aspects of the organisation and its external environment. The perception of marketing must move beyond its present paradigm. To improve profits and sales by x percent each year is limiting. A business should expand in relation to potential, not last year's profits. A marketing focus must be designed that will increase market share, growth, short‐ and long‐term profits, and employment. Leadership can improve productivity by directing all employees to reflect a common corporate marketing and sales focus.     

Exploring communication differences between women and men sales representatives in a relationship selling context

The purpose of this exploratory research is to investigate the different styles of communication used by women and men sales representatives in relationship selling. An analysis of in-depth interviews revealed that the language used by women sales representatives is more conducive to building customer trust and more suggestive of relationship selling behaviour than the language used by their male counterparts. That women sales representatives may draw upon nurturing language and behaviour learned in developing other relationships (wife, mother, daughter, sister or friend) to build customer relationships is consistent with role theory and supports a theoretical explanation for the lower levels of role conflict surprisingly reported by women sales representatives in previous research. The results suggest that in a relationship selling task, marketing managers should consider using sales representatives with a 'feminine' style for sales jobs requiring extensive customer relationships. Directions for future research are also suggested.     

Exploring the Role of Product Development Capability for Transforming Marketing Intelligence into Firm Performance

ABSTRACT

Purpose: This study examines the role of product development capability for transforming marketing intelligence activities into firm performance on industrial markets.

Methodology/Approach: The authors apply structural equation modeling to analyze survey data from 342 industrial manufacturing companies.

Findings: Results reveal that sales integration and holistic macroeconomic view are particularly important features of the marketing intelligence capability on industrial markets to gain additional insights in order to develop products successfully. Results also reveal that product development capability transforms the marketing intelligence activities into firm performance on industrial markets.

Research Implications: This study offers new insights on marketing theory by extending and concretizing the concept of market orientation to a broader concept of the marketing intelligence capability for industrial markets. Further, this research reveals that the product development capability serves as a mediator to business performance.

Practical Implications: This study’s systematic and tangible outline of the dimensions of marketing intelligence and its link to the product development capability helps firms to better understand how to capitalize on market orientation’s potential values.

Originality/Value/Contribution: This research (a) reveals the relevant dimensions of marketing intelligence on industrial markets and (b) shows how the product development capability tranforms marketing intelligence activities into firm performance on industrial markets.     

The Impact of Personality Variables,Prior Experience,and Training on Sales Agents' Internet Utilization and Performance

ABSTRACT

Emerging literature on the impact of the Internet on business-to-business (B2B) marketing has primarily focused on examining this issue from the perspective of manufacturers and buyers. This study focuses on the sales agent, a third prominent actor in B2B markets, and tests a conceptual model that relates a sales agent's personality, demographic, and user-situational constructs to that sales agent's Internet utilization for selling activities. Further, the model tested in this study relates a sales agent's Internet utilization to perceived sales performance. Findings in this study indicate that internal locus of control, learning orientation, and sales related Internet training relate positively to a sales agent's Internet utilization, and that a sales agent's age relates negatively to Internet utilization. Further, the results support a positive relationship between a sales agent's Internet utilization and sales performance. This study emphasizes that the Internet can be a productive tool for sales agents. The implications of the results of this study for sales agents with respect to training and recruitment are discussed and avenues for future research are suggested.     

Sponsorship leveraged packaging: An exploratory study in FMCG

The concept of 'internal marketing' has received considerable coverage in the literature, but even its most ardent supporters have noted problems in translating the concept into reality. This paper discusses the findings of an exploratory case study carried out within 35 UK high street retail banks. Internal marketing is an initiative adopted by the organizations studied in order to nourish a marketing orientation.The implementation approach shapes the nature and form of the internal marketing communications that organizations adopt. Even though UK retail banks intend to implement internal marketing effectively, in reality the current implementation approach appears to be counter-productive to the achievement of the core aims of the initiative. The core finding from this exploratory research suggests that there are substantial barriers to the successful implementation of internal marketing within the banks studied, barriers such as the focus on short-term sales goals, the lack of a formal and 'holistic' implementation approach and the creation of 'personnel discrimination' and negative internal competition.     

Cause-Related Marketing: Keys to Successful Relationships with Corporate Sponsors and Their Customers

SUMMARY

An increasingly popular method for nonprofits to raise awareness, educate the public, and receive financial support from corporations is through cause-related marketing. The distinctive feature of cause-related marketing is the corporate sponsor's contribution to a designated cause being tied to customers' participating in revenue-producing transactions with the sponsor. The sponsor benefits from favorable publicity and increased sales. This article discusses factors contributing to the potential success of a cause-related marketing campaign: the sponsor's product quality, fair pricing, and customer traits; the nonprofit's and the sponsor's reputation, shared values, good communication, and commitment; a well-planned and executed campaign, and specific terms that protect both party's assets and clearly outline each party's responsibilities.     

An Exploratory Analysis of the Impact of Salesperson Customer-Orientation on Sales Force Productivity

Abstract

Consumer sovereignty is a concept that is well-established in the marketing literature. It is widely assumed the customer satisfaction is a crucial variable in determining the long-run prosperity of a business. Since the sales force often has the most contact with the customer, it seems logical that their efforts toward satisfying the client would be imperative. The selling orientation-customer orientation (SOCO) scale developed by Saxe and Weitz (1982) was used to determine the customer-orientation of 180 real estate sales personnel. The results of the research indicate that real estate sales representatives can practice customer-oriented selling without fear of losing sales due to their being too “soft” in their selling methods. In addition, the results indicate that companies wishing to enhance their sales personnel's level of customer-orientation may do so through professionally designed sales training programs.     

The World Class Sales Manager:

Sales managers today need to be world class. They can no longer succeed by merely carrying out parachially defined roles and duties of sales management. Not only must today's sales managers perform an increasingly eclectic array of sale and marketing functions but they must do so from a global perspective. Future profits and growth will go largely to those companies whose sales managers become truly world class in adjusting to a complex mix of evolutionary and revolutionary megatrends.     

Strategic and organisational determinants of sophistication in deployed sales force automation systems within three industry sectors in the UK

Abstract

This paper investigates strategic and organisational context determinants of the sophistication of adopted sales force automation (SFA) systems in three UK industries: financial services, pharmaceuticals, and building/construction. Sophistication of adopted systems is associated with the organisation placing greater emphasis on information orientation, which is itself driven by an increased integration of IT and sales coupled with increased organisational slack. Increased integration of IT and sales is itself driven by increased strategic importance of sales coupled with increased use of internal communication networks. Importantly, a firm's marketing orientation, although also driven by the strategic importance of sales, has no impact on either information orientation or SFA sophistication. We discuss the implications of our findings to aid understanding of SFA implementation failure.     

Exploring the Effectiveness of Business Gifts: Replication and Extension

Abstract

This investigation replicates Beltramini's (1992) study of the effectiveness of business gifts, and extends the research to include actual marketplace sales response. A company's customers'perceived satisfaction and intention to continue repurchasing are surveyed both before and after being sent a more expensive gift, a less expensive gift, or no gift at all, and customers'actual sales are longitudinally tracked. The results indicate business gift-giving represents an effective part of a marketer's overall marketing communications strategy, and both limitations and implications are discussed.     

Important issues for a growing timeshare industry

Timeshares—which involve the purchase of the use of resort accommodations for an interval of time—have become a relatively common way for people to vacation. Even so, the industry still has achieved just a 3-percent penetration of U.S. households with incomes over $50,000. A survey of 127 timeshare executives in the United States found that the industry's greatest challenges come from issues involving marketing and the industry's image (e.g., many potential clients still remember the high-pressure tactics that brought the industry into question 20 to 30 years ago). Timeshare developers have formed a trade association to address some of those image issues, but not all companies subscribe to that group. Other marketing issues include the overall cost of sales and marketing—in particular, the cost of developing leads. The process of finding customers is complicated by the fact that the individual states regulate timeshare sales, and a company must be registered in a state to offer timeshares to residents of that state. This matter impedes the use of the internet for timeshare sales. A final important issue is human resources: finding, retaining, and training employees and managers is difficult for timeshare companies (as it is for hotels), partly because they operate in resort areas where labor resources generally are already spread thin.     

Improving relationships between sales and marketing: the relative effectiveness of cross-functional coordination mechanisms

ABSTRACT

The importance of effective sales and marketing working relationships is well known and this article examines the effectiveness of various coordination mechanisms used to improve this cross-functional relationship. Six coordination mechanisms are measured to identify their effect on sales and marketing conflict and collaboration, which in turn influence business performance. The results reveal that not all coordination mechanisms are equally effective. Structuring sales and marketing as a single unit and creating cross-functional project teams improve the interface, as do providing opportunities for job rotation and establishing cross-functional meetings. However, employing cross-functional training and co-locating sales and marketing do not influence this working relationship. Finally, reducing conflict and increasing collaboration between sales and marketing is shown to independently, and positively, influence business performance.