Flexibility in marketing & sales interfacing processes

Preliminary insights in the marketing literature indicate that flexibility is important in marketing and sales processes and interaction. However, to date, marketing and sales management literature lacks an understanding of what flexibility in marketing-sales interfaces looks like, its potential organizational consequences, and potential boundary conditions. Using data from interviews with marketing and sales managers, this study explores the nature, outcomes and facilitators of flexibility at the marketing-sales interface. This study conceptualizes marketing-sales interface flexibility (MSIF) as a process of flexible cross-functional resource exchange and finds that MSIF has positive organizational outcomes (both in terms of performance and relationship quality), that MSIF is essential for firms when dealing with exigencies in turbulent environments, and that the utility of MSIF is conditioned by the speed with which MSIF is implemented. The research contribution is twofold. At a theoretical level, the study defines the construct for the first time, revealing MSIF's conceptual composition for examination, and develops theory regarding MSIF's direct relationships with key business outcomes, as well as likely contingencies that shape its importance. At a practical level, the study's framework offers a tool that managers can use to help build organizational success through enhanced flexibility in their marketing-sales interfaces.     

Sales force obsolescence: Perceptions from sales and marketing executives of individual, organizational, and environmental factors

The trade and academic literature is replete with observations that many sales organizations are in the midst of a redefinition of the strategic role of their sales forces. With today's market forces, change is overdue in many sales organizations. Consequently, the issue of whether the sales force is becoming obsolete has come to the forefront in recent years. As business environments change rapidly, the relevance of the modern sales force comes into question. Data were gathered from 245 midlevel sales and marketing executives on perceived sales force obsolescence. Our findings suggest that obsolescence is a phenomenon for sales organizations to address. The main findings of our study are (1) obsolescence is a phenomenon that affects sales professionals' feelings toward the job (job satisfaction) and outcomes (performance); (2) a firm's market orientation is very important in lowering perceived obsolescence; (3) a learning orientation is important in detecting symptoms of obsolescence; (4) age and education are related to perceptions of obsolescence depending on the type of industry in which the sales force competes: high- or low-tech; and (5) organizational changes can also have a bearing on the sales force's perceptions of obsolescence.     

A process model of tacit knowledge transfer between sales and marketing

Although an ability to generate and transfer tacit knowledge provides the basis for competitive differentiation, organizations face two primary issues when attempting to achieve this task. First, tacit knowledge, which differs from explicit knowledge in that it can only be gained through experiences, deep interactions, and learning by doing, is highly complex and therefore difficult to transfer. Second, as challenging as tacit knowledge transfer may be under the most ideal circumstances, the issue is exacerbated by the fact that sales and marketing professionals oftentimes have a dysfunctional relationship. Addressing these issues, we present and examine a theoretical model which captures the process through which tacit knowledge transfer occurs across the two functions. Study results, derived from a sample of 215 salespeople, highlight the important role interfunctional communication quality and the development of a mutual understanding play in this process. We discuss the theoretical and managerial implications arising from the study, and present opportunities for further research in the area.     

Enhancing organizational sensemaking: An examination of the interactive effects of sales capabilities and marketing dashboards

Current marketing research highlights the direct effects of marketing resources on firm performance. Few studies, however, examine how such resources interact with one another and contribute to the strategic actions, such as sensemaking. In this study, we investigate how sales capabilities and performance monitoring via marketing dashboards influence a firm's sensemaking. The results from our study suggest that sales capability and the use of marketing dashboards not only contribute directly, but also have an interactive effect, highlighting the importance of integrating both sales and marketing operations. Further, we find evidence that sensemaking influences cost control and enhances customer relationship performance, suggesting that sensemaking has the potential to simultaneously impact both cost efficiency and growth.     

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.     

The impact of sales tax on internet and catalog sales: Evidence from a natural experiment

This paper studies the effect of sales tax changes on internet and catalog sales. We collect sales data from a retailer that sells its products through its internet and catalog channels. We analyze the retailer's sales before and after a major tax cut in one of the largest metropolitan areas in the U.S. This natural experiment allows us to separate the effect of the tax cut from the effect of other confounding factors. The results from our panel data analyses indicate that remote sales have decreased by about 15% in response to a four percentage point decrease in sales tax. Our results are statistically significant and highly robust. Interestingly, we also find that the effect of the tax cut varies across different types of consumers, products, and channels. These findings have important managerial and public policy implications.     

Multimarket contact and sales growth: evidence from insurance

Research on pricing, profits, and firm survival has shown that multimarket contact causes mutual forbearance against competition, but has not considered the consequences of imperfect observability of competitive moves. Here, predictions are developed to explain how mutual forbearance occurs—but sometimes fails—in markets with imperfect observability. Mutual forbearance means that firms do not seek to take market share from each other through price cuts or nonprice competition, and thus that sales grow at uniform rates. Firms defect from mutual forbearance, and hence have higher sales growth, if the potential rewards are high and the likelihood of being discovered is low. This theory is tested on a panel of firms operating in the Norwegian general insurance industry. The evidence suggests that sales growth is most rapid in firms that do not meet many multimarket competitors in a given market and firms that are economically troubled. Growing or highly concentrated markets have higher heterogeneity of growth rates. Copyright © 2007 John Wiley & Sons, Ltd.     

The impact of aligned rewards and senior manager attitudes on conflict and collaboration between sales and marketing

This research was carried out using five case studies and a survey to discover how sales and marketing managers are rewarded and if alignment of rewards can improve collaboration between sales and marketing and/or reduce inter-functional conflict. In addition, it examined the role of senior managers' support for coordination on sales/marketing collaboration. The results reveal that organizations which use aligned rewards can increase sales/marketing collaboration through such reward structures, but not reduce inter-functional conflict. In addition, senior managers' support for coordination is vital, as it increases sales/marketing collaboration, and strongly reduces inter-functional conflict. This is important because inter-functional conflict has a strong negative impact on collaboration between sales and marketing in business to business firms.     

Perceptions of sales force automation: Differences between sales force and management

Differences between management and salespeople in their perceptions of a new technology can affect the acceptance and implementation of that technology. For sales force automation (SFA) systems, the differences in the perceptions held by management and salespeople toward the SFA can affect the successful adoption and implementation of the system by the organization. This paper reports the results of an investigation that focused on the differences in perceptions held by the United States Army's recruiting force and its higher level management toward the Army's newly adopted SFA system, the Army Recruiting Information Support System (ARISS). The results of the study indicate that significant differences exist between the perceptions held by the recruiting force and higher level management toward ARISS, the SFA system. The results offer important insights into managing SFA system deployment and gauging user expectations.     

Export intensity and marketing in transition economies: Evidence from China

Firms in transition economies face a common adaptation problem of having to compete within increasingly marketized environments. This creates a need for managers to learn skills associated with marketing, such as those pertaining to the development of new and better products. Although distance is usually a barrier to learning, we propose that in exchange situations involving transition economy firms, the benefits of long-distance trade may outweigh the costs of knowledge acquisition. We find support for this proposition in this study by establishing a link between the export intensity of Chinese exporters and their acquisition of marketing know-how. We also find evidence that the marketing knowledge of transition economy firms has a positive effect on overall performance.     

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.     

常州动漫玩具联盟3年要做10个亿!

动漫产业近年来迎来了井喷式的发展,动漫企业遍地开花。借着完善的产业基础配套,江苏常州的动漫产业便在这一股发展风潮中脱颖而出,成为国内领先的动漫产业基地之一。然而,跟整个中国动漫产业一样,常州动漫同样有着＂高投入高产出低回报＂的困扰。正如常州市动漫行业协会会长徐冠东所说：＂虽然年产出动画片1万分钟,但如何获得盈利,企业们却没有多少办法＂。     

Winning through innovation and marketing: Lessons from Australia and Vietnam

We examine the role of innovation and marketing, two functional capabilities that have the capacity to play a major role in creating superior marketplace performance in firms. Our study of the two capabilities and firms' marketplace performance also takes into account the contribution of entrepreneurial orientation (EO) and market orientation (MO) to our focal functional capabilities and marketplace performance. The results of a study of firms in Australia and Vietnam show innovation capability, marketing capability mediate the effects of the firm's MO on its marketplace performance. The results also show that the interaction of innovation and marketing capabilities significantly influences firms' marketplace performance more than they do individually. Finally, our results show that MO partially mediates the relationship between EO and innovation and marketing capabilities.     

Why helping coworkers does not always make you poor: The contingent role of common and unique position within the sales team

In recent years, many companies have implemented sales teams as a way of streamlining accountability and promoting the development of sales expertise. The success of such work groups largely depends on experienced members' willingness to help coworkers. Previous studies indicate that group structure and individual position along individual attributes (e.g., experience) are important to understand interactions between coworkers. However, sales research on this topic is lacking. Drawing on a motivation-opportunity-ability framework, this study addresses this void by examining the impact of individual salesperson's job experience position within work groups on the motivation to help coworkers and his or her own sales performance. The findings of a multisource, multilevel empirical study reveal interesting effects. The results highlight the important role of job experience position: if a salesperson's level of job experience is common within the sales team, it activates identification as a driver of helping behaviors, which in turn negatively influences own performance. Conversely, if a salesperson's level of job experience is unique, it does not activate identification as a driver of helping, but does positively influence the effect of helping on own performance. The authors discuss implications for theory and practice.     

中间组织理论:基于不确定性与缓冲视角

本文认为,在市场经济条件下,生产性组织赖以生存的最基本功能在于对不确定性的处理和缓冲机制的建立。本文基于不确定性理论．探讨了生产性组织形态向中间组织形态的演进,提出应对不确定性的缓冲功能与利用不确定性的创新功能两个方面是组织形态演进的核心问题。缓冲功能打破了一体化组织的边界,是中间组织形态的必要条件;创新功能真正决定着中间组织的发展与壮大,是中间组织的充分条件。     

Purchasing-driven sales: Matching sales strategies to the evolution of the purchasing function

The personal selling field has witnessed the emergence of various sales strategies, including relationship, value, key account, and solution selling. Despite claims about their effectiveness, recent work challenges the relevance of existing sales strategies across buying contexts. Specifically, emerging sales strategies often focus on the user in the customer organization, without being explicitly aligned with the increasingly important purchasing function. To define the critical role of the purchasing function for sales effectiveness, this study collects data from 32 firms in two markets; their purchasing departments reveal four stages of purchasing evolution: passive (price focused), independent (cost-focused), supportive (solution/innovation focused), and integrative (strategy focused). The research demonstrates that each stage of purchasing evolution then requires distinct sales strategies by selling firms and any mismatch of purchasing evolution and sales strategy may be detrimental to sales. This novel view and the supported findings offers several implications for both research and practice.     

Adoption of digital sales force automation tools in supply chain: Customers' acceptance of sales configurators

Digitalization changes both buying processes and sales processes and, consequently, the dynamics and division of work between buyers and suppliers in the supply chain. This has major implications for industrial marketing and supply chain management. In this study, we analyze the impact of sales configurators, which are used to create valid configurations of market offerings that fulfill customer requirements. The usefulness of sales configurators can be investigated from both the sellers' and buyers' perspectives. In this research, we focus on the latter, and we specifically investigate the antecedents of customers' acceptance of sales configurators in a supply chain. In our analysis, we concentrate on system-level antecedents, which have been neglected by the existing literature. Our research yields better knowledge of how digital sales technologies can be used by customers for improved effectiveness and perceived value. The results demonstrate that ease of use and system adaptability contribute strongly to the perceived effectiveness, and eventually to the perceived usefulness, of sales configurators. Yet, surprisingly, perceived enjoyment is identified as having the most significant effect on perceived usefulness.     

Uncertainty and Auction Outcomes: Evidence from Used Car Actions

I study the sequence of bidding in an open-outcry English auction to examine how uncertainty affects auction outcomes. I do this by analyzing a data set that was collected from a series of public auctions of used cars in New Jersey. I conjecture that the uncertainty is related to the auction’s progress and demonstrate that, empirically, an increase in the uncertainty is associated with an increase in the number of rounds that is required to sell an object and with a reduction in the ratio of the selling price to the presale estimate.     

Industrial sales managers: Satisfaction and performance

This article examines some key variables that affect managerial satisfaction and performance. Some specific supervisory actions are suggested that may improve the field sales managerial satisfaction.