Improving sales training cycle times for new trainees : An exploratory study

Sales training is a key organizational process used by many firms to develop high-quality salespeople into value-added agents. This development of salespeople as value-added agents can be accomplished in a number of ways. The results of this study suggest cycle time improvements in sales training can be achieved by properly preparing trainees prior to staging role-play exercises. The managerial implications of the results include indications as to how organizations can save on training by reducing the time it takes to effectively train new salespeople as well as evidence that demonstrates that the training enhancers we introduce can increase the initial revenue generating potential of these new salespeople.     

Understanding sales manager effectiveness: Linking attributes to sales force values

Although sales managers influence a variety of sales force outcomes critically important in the dynamic business environment of the 21st Century, research examining sales manager effectiveness is limited. As such, an investigation of the attributes of effective sales managers, as well as the impact of these attributes on the sales force, is warranted. To explore these issues, the authors employed value laddering, an in-depth interview technique that facilitates the identification of key attributes and the subsequent linkages of those attributes to consequences and underlying values or goals held by respondents. Data collected from sales professionals resulted in 308 ladders that were subsequently aggregated across subjects and used to generate a hierarchical value map (HVM) reflecting the associations among constructs. The HVM highlights the attributes of effective sales managers, as identified by respondents, and reflects three major sales management roles: communicator, motivator and coach. Each of these roles is explored and managerial and research implications are discussed.     

Project selection: A process analysis

Technology-oriented companies involved in rapidly changing markets are interested in the value of collaborative efforts aimed at the realization of shared benefits, while spreading the costs and risks across multiple partners. The experiences and insights of participants in such ventures can contribute to the understanding of how to build more productive alliances. This study examines the project evaluation processes employed by the most successful industry-university research centers sponsored by the National Science Foundation. The delivery of highly satisfying research programs, as indicated by the industrial representatives, is defined as being successful. This paper focuses on the process management issues involved in the formulation and evaluation of research proposals, structural advantages and liabilities associated with the process, as well as the conditions/contexts that favor their application. These processes are strategically significant because they define the organization's research agenda, focus resource allocations by linking capabilities and commitments, and frame the performance assessment process.     

Business suppliers' value creation potential : A capability-based analysis

Joint value creation through partnering and networking is a topic of current interest. This paper proposes that the dimensions of the supplier's value creation in a supplier-customer relationship could be classified according to efficiency, effectiveness and network functions. These functions are interrelated, but they are conceptually distinct. The value creation process could be described as a spectrum ranging from core value, to added value, to future value. The value-producing potential of a supplier can be assessed reasonably well only in the case of the core value, where there is sufficient benchmarking information in the form of existing alternative offerings and solutions. A priori evaluation of the costs and benefits of added value and, especially, future value projects is problematic, because the realisation of the value is dependent on the development of multiple partners, technologies and industries. In these cases, we suggest that a customer could use a supplier's capability profile as an indicator of how suitable that particular supplier is for specific value creation projects. A framework connecting specific capabilities to different types of value production is suggested, and its managerial implications are discussed.     

An exploratory study of the Internet as an industrial communication tool: Examining buyers' perceptions

A thorough understanding of the impact of the Internet on industrial purchase decisions is of critical importance for industrial marketers seeking to incorporate the Internet in their overall communication strategy. Accordingly, this study examines (1) the degree to which purchasing professionals perceive the Internet as useful, (2) how purchasing professionals are using the Internet for communication activities, (3) how the Internet compares to other promotional tools in influencing buyers' purchase decisions, and (4) whether differences among buyers can be identified relative to the perceived influence of suppliers' websites. The results provide some practical implications for industrial marketers regarding the use of the Internet relative to other promotional tools.     

Manufacturer-supplier relationships: An empirical test of a model of buyer outcomes

Relational buyer-seller exchanges have been the focus of significant research in the past few years. In extending this recent research, the authors draw upon transaction cost analysis and symbolic interactionism to propose and test a model focusing on outcomes of manufacturer-supplier relationships from the perspective of the manufacturer. Data from 157 purchasing executives offer empirical support for the relationships proposed in the model. In the context of acquiring critical items, relational orientation is found to be negatively related to measures of acquisition and possession costs and positively related to perceived product quality, and these variables, in turn, are significantly linked to the buyer's satisfaction with the supplier. Model results also indicate that a relational orientation has both a direct and an indirect link to satisfaction. Implications for both marketing managers and researchers interested in collaborative relationships between buyer and supplier organizations are offered.     

Understanding the interfaces:: How ocean freight shipping lines can maximize satisfaction

Physical distribution services are becoming increasingly important as supply chains strive to become more efficient in the logistical flow of goods to industrial customers. Performance of these services, however, takes place during encounters that customers have with various interfacing departments within the firm. These encounters may ultimately determine the level of satisfaction clients have with the service and the concomitant perceived quality. While previous research in this area has focused on service quality assessment, little attention has been given to determining the pattern of interfacing departments that maximize service satisfaction. This study examines a sample of shipping managers in Singapore who evaluated the service dimensions of ocean freight shipping lines (or companies). Using an analytical method called decision tree calculus, this article identifies the combination of interfacing departments that maximize service satisfaction. The results of this approach offer definite guidance to ocean shipping lines in terms of the importance of key interfacing departments in shaping satisfaction and perceived quality. Implications are discussed.     

Selling in the new millennium: A joint agenda

Progressive sales organizations are becoming more strategic in their approaches to the initiation, development, and enhancement of customer relationships. In moving to a more strategic, less tactical approach, these organizations are exploring new leadership models to direct change. In addition, they are using emerging technologies to support sales strategy. This article presents a 15-point joint agenda following a review of pertinent research in the sales strategy, leadership, and technology areas. This joint agenda offers action items, food for thought, and research ideas for sales executives, academicians, trainers, consultants, and professional organizations.     

Branding importance in business-to-business markets: Three buyer clusters

With the growth of e-commerce and global competition, business-to-business (B2B) marketers are showing increased interest in the potential of branding, especially at the corporate level. This paper describes branding in the context of B2B markets, and examines its perceived importance to buyers. A review of relevant literature and the development of a conceptual model enables a cluster analysis of data from a survey of industrial buyers. The exploratory analysis examines to whom branding is important, and in what situations. Three clusters of buyers are found: branding receptive, highly tangible, and low interest. The practical implications for managers are explored.     

Compressing new product success-to-success cycle time: Deep customer value understanding and idea generation

Despite nearly 30 years of research focused on improving new product development (NPD) processes, recent research reveals that these improvements have failed to materialize as expected. Additionally, in today's continuous-change business environment, managers are focused on reducing cycle time in nearly all operations, including NPD, in order to realize acceptable returns on investments more quickly. Thus, we must not only be better but also faster at NPD, specifically at compressing the cycle time between new product successes, i.e., accelerating success-to-success velocity and not just accelerating each NPD project. But, how can businesses both improve the probability of new product successes and also speed up the process of doing so? This paper proposes that formalizing front-end processes will certainly help. Specifically, a process is presented which draws on customer value research that ought to help clarify the traditional “fuzzy front end” of NPD processes, resulting in consistently more successful new products.     

Antecedents and outcomes of new product development speed: An interdisciplinary conceptual framework

Modern marketplaces are characterized by speedy technological breakthroughs, rapid changes in sociopolitical conditions and consumer tastes, and continuously shrinking product life cycles. Consequently, companies must consider strategies that reduce the time required to take a product from concept to market. The authors draw from a diverse body of published research findings and corporate experiences to generate an interdisciplinary inventory of organizational factors associated with short new product development (NPD) cycles. An integrative framework is presented that describes the influence of infrastructural characteristics (structure, culture, and capital investment) and procedural factors (groupwork, controls, and incentives) on NPD speed, and the subsequent effects on organizational outcomes (revenue, profitability, corporate image, and brand image).     

Sales training in Malaysia: High- vs. low-tech methods

This study examines initial high-tech sales training practices of firms in Malaysia. A review of initial sales training programs reveals that firms that engage in high-tech sales training practices report significantly greater levels of needs determination, objective setting, instructional methods, and training program content than their low-tech counterparts. Also, firms that employ high-tech training methods report teaching the “soft area” of salesmanship via computer and both groups place less emphasis on evaluating training programs. To better understand high-tech sales training, managers are provided with in-depth discussions and managerial implications of the study's findings.     

Engineering New-Product Success: The New-Product Pricing Process at Emerson

Emerson Electric Co. is a diversified manufacturer with $14 billion in sales. The Emerson Price Improvement Team is an internal consulting group that serves the 60+ Emerson divisions. The team's mission is to help divisions achieve their financial and market objectives by providing pricing skills, tools, and project assistance that improve a division's pricing practices. This paper discusses an implementation of the Price Improvement Team's New Product Pricing Process at Fisher-Rosemount, a business unit of Emerson. Fisher-Rosemount is the world's leading supplier of process control systems, and measurement instrumentation. One of the eight Fisher-Rosemount divisions planned to introduce a new process sensor at a price of $2,650. After completing the New Product Pricing Process, Fisher-Rosemount increased the planned sensor price 19%, introducing it at a price of $3,150, resulting in a fifth-year operating profit improvement of $11 million. The New Product Pricing Process enabled the division to gain a detailed understanding of customer perceptions of product value; determine a key design specification for the new product; reduce cannibalization of its existing and highly profitable sensor by positioning the new product to optimize the total product portfolio; predict unit sales, revenue, and profitability for a range of market scenarios; and confidently set the right product price. Achieving optimal revenue and profitability, in a manner consistent with the company's business strategy, is a goal of the process. Equally important, the process ensures that customers receive fair value-based pricing while enabling the supplying company to maintain overall industry price equilibrium.     

E-commerce in China: Changing business as we know it

In discussing the future of e-commerce, many experts have assumed that e-commerce in emerging markets will evolve along the same lines as it has in the US, North America, and to a great extent, in Western Europe. This assumption fails to take into account the differences that exist between the economic infrastructures of emerging markets and those of the developed markets of the West. This article considers how China's economic infrastructure, which like the infrastructures of most emerging markets is much less highly developed than the industrial West's, will influence the development of e-commerce in China. By implication, the route of e-commerce development in China may be a more likely route of development for other emerging markets to follow.     

E-comprehension: Evaluating B2B websites using readability formulae

The Internet has often been referred to as an “infocentric” medium. Information abounds on topics, people, products and companies. With the multiplicity and diverse variety of web pages containing information, comprehension becomes a critical issue, and a major facet of comprehension is readability of content. The study described in this paper examines the readability of the text on business-to-business (B2B) websites. First, the paper presents an overview of readability formulae. It then applies selected readability formulae to web pages in the semiconductor industry. The study explores how readability formulae can provide quick feedback to web marketers based on key indicators such as sentence length, proportion of difficult words and frequency of polysyllabic words. It also demonstrates how the relative readability of a company's web pages can be evaluated against those of its competitors. In closing, the paper considers the managerial implications associated with the use of readability formulae and offers directions for future study in this relatively under-researched domain.     

Going the extra mile: Antecedents of salespeople's discretionary effort

Many sales organizations are scrambling for success in today's intensely competitive environment. An increasing number of firms are finding that tried and true traditional selling strategies are less effective, or not effective at all. Moreover, companies are discovering that what has been an acceptable level of performance no longer is adequate for maintaining or gaining competitive advantage. Consequently, managers need to focus on alternative means through which the organization can be successful. One alternative is for sales forces to engage in discretionary effort-work activities that entail going beyond the call of duty. This paper develops propositions regarding antecedents of salesperson discretionary effort, which provide managerial direction should the propositions be confirmed.     

Electronic reverse auctions: Promises, risks and conditions for success

Because reverse auctions hold high promises, it has become a popular tool in the past several years. One estimate is that as much as US$50 billion worth of goods may be purchased with reverse auctions in 2001. However, risks exist with reverse auctions. To better understand purchasers' motivation for using reverse auctions, what they perceive as the risks and the conditions required for successful use, interviews were conducted with 41 purchasing professionals who had used reverse auctions. The interviews revealed three primary motivations, three perceived risks and four conditions for success. The conditions required for success are: (1) the product or service specifications must be clear and comprehensive, (2) the purchase must be large enough to provide an incentive for the supplier to participate in the auction, (3) the appropriate supply market conditions must exist, and (4) the appropriate infrastructure must exist within the buying organization.     

Customer-supplier partnerships: Perceptions of a successful key account management program

Key account management (KAM) is regarded as one of the significant marketing trends over the last few years. This study investigated the perceptions of suppliers and key account customers regarding the success factors of customer-supplier partnerships. The results are reported from a survey of 92 suppliers and 98 key account customers. Analysis of the results indicates that suppliers and their key account customers have similar perceptions of the key success factors in the customer-supplier partnership. Finally, recommendations for the development or improvement of a KAM program are presented.