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.     

Problems evaluating sales representative performance?: Try activity-based costing

Activity-based costing (ABC) offers a way to improve performance evaluation by providing estimates of the cost of satisfying sales terms to which a sales representative may agree, such as number of batches in which an order is produced and number of training hours provided to customer employees. It also provides estimates of the cost of resources that a sales representative may use while engaging in marketing activities, such as making sales calls and attending trade shows. Traditional costing, which assumes that costs only vary at the unit level, does not provide estimates of the costs of many of these terms and activities.     

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.     

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.     

Effects of job perceptions on job behaviors: Implications for sales performance

We investigate the relationship between salesperson job perception and job behaviors and their effects on sales performance. Hypotheses are tested using a sample of automobile salespeople. Generally, results show that job involvement is positively related to working hard, but no significant relationship existed with working smart. Job challenge is positively related to both working hard and working smart. Finally, both working hard and working smart are positively related to performance. Discussion of hypothesis support is presented and implications for sales managers, limitations of the study and future research opportunities are then discussed.     

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.     

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.     

Technology improves sales performance—doesn't it?: An introduction to the special issue on selling and sales technology

Firms around the globe are rushing to invest in sales force technology or sales force automation (SFA). SFA appears to mean different things to different people. For example, management and sales personnel view the need for, application of, and advantages of SFA quite distinctly. As a result of technology, this special issue examines many areas of sales force automation to provide both practicing managers and sales force academicians with a clearer perspective of new technology in the B2B marketplace. This article introduces the special issue topic, individual contributors, and acknowledges support proffered by myriad individuals.     

The web as an information source for sales recruits: Its effectiveness in aiding anticipatory socialization of salespeople

Do firms' web pages contain information that will aid in the proper anticipatory socialization of sales recruits? While most Fortune 100 firms' web pages included general information (e.g., financials, news, product information), few listed industry information or provided an easy contact method for more information. Almost none included video or audio components, sales-specific pieces of information, or candid information about the selling job or the firm. Results of a convenience sample of potential recruits stress the importance of firms conducting primary marketing research in order to discover exactly what their recruits desire in a web page.     

How manufacturers value purchase offerings: An exploratory study

The notion of value and the principles and methods that buyers use to discover which supplier offering has more value needs to drive all business marketing activity. However, the concept of value and how to measure it is somewhat vague. The authors present a simple way to think about value. The research reports an exploratory empirical study of how the valuation model fits the views of purchasing managers and how purchasing agents view value and use it to make decisions. In general, the model posited appears to fit the view of purchasing agents, however, there is some digression and further research is needed.     

Impediments to sales force automation

Sales force automation (SFA) occurs when firms adopt technology to improve the efficiency and effectiveness of sales-related activities. Research has shown, however, that 55-75% of SFA projects fail. This paper first identifies and explains impediments that exist in three SFA areas: planning, communication, and evaluation. The high failure rate of SFA can also be explained by gaps that exist, between the sales force and management, in SFA perceptions and goals. Finally, after discussing each of these areas, study implications are provided to sales managers and suggestions are offered for future research.     

B2B sales force productivity: applications of revenue management strategies to sales management

Firms should be able to apply the time-based philosophy of revenue management to their sales forces. To do so requires a revision in the way most sales divisions traditionally have viewed salesperson time. Hence, a different type of proposed measure, revenue per available salesperson hour, is proposed to better integrate the value of the salesperson's time as a factor in sales potential and revenue calculation. This article seeks to (1) foster a positive perception of revenue management as a viable sales approach, (2) establish a framework for such a strategy, and (3) set a useful road map for facilitating execution.     

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.     

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.     

Industrial distributors: Can they survive in the new economy?

As e-commerce evolves and gains power in the business-to-business (B2B) marketplace, what lies ahead for the industrial distributor? The fundamental issue from the distributor's point of view is how to compete more effectively and profitably, given the changing business environment of the new economy. This paper reviews the literature on the distributor's role and relationships and introduces a conceptual model of distributor viability. The model identifies sources of value that distributors offer to manufacturers and customers, including customer relationship management (CRM), production and operations management (POM), and knowledge management (KM). The paper explores the managerial implications of distributor relationships and sources of value. This provides the foundation for better understanding of the viability of industrial distributors in the new economy.     

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.     

Understanding sales force automation outcomes: A managerial perspective

Despite the growing importance and potential of sales force automation (SFA), failure rates for SFA implementations have been reported to be as high as 55-80%. Given the growth of SFA programs, the potential effectiveness and efficiency SFA can bring to the sales force, and the magnitude of SFA failures, it is surprising that relatively few studies have addressed this important and timely topic. Many of the early studies have focused on the adoption and diffusion/infusion of SFA programs from an information technology perspective. The results of these studies have been inconclusive in explaining SFA implementation failures. The purpose of this study is to add to our understanding of SFA failures by investigating a broader set of implementation factors than those typically included in acceptance of technology studies. We conducted in-depth personal interviews with executives from three global organizations who were responsible for SFA initiatives in their firm. Results from the in-depth analyses yield recommendations and a proposed model to assist managers in the implementation of their SFA as well as getting their salespeople to “buy-in” to the SFA, and ultimately reduce SFA failures.     

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.     

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.     

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.