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Article
Publication date: 6 March 2017

Pablo Farías, Eduardo Torres and Roberto Mora Cortez

The purpose of this paper is to propose a new salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a…

Abstract

Purpose

The purpose of this paper is to propose a new salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a salesperson and the sales force equity.

Design/methodology/approach

This is a conceptual paper supported by a case study.

Findings

The authors contribute to the literature by operationalizing the salesperson lifetime value concept and introducing new important aspects in comparison with previous discussions, including peer effect, recruitment/hiring cost and termination costs.

Originality/value

This manuscript theoretically and practically contributes to personnel value management in the organization and sales force financial control. The authors introduce peer effects, hiring/recruitment costs and termination costs, which are missing as a set in previous research. In addition, this paper offers a simple but robust model to practitioners’ use.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 11 November 2014

Said Echchakoui

This paper aims to answer a prominent question that arises for the manager who wishes to recruit a salesperson to maintain and develop a portfolio–customer relationship…

Abstract

Purpose

This paper aims to answer a prominent question that arises for the manager who wishes to recruit a salesperson to maintain and develop a portfolio–customer relationship: Under which condition is this decision profitable for the firm? Though several authors have underscored the importance of the salesperson's role in the creation of purchaser–salesperson relationships, in the author's knowledge, no study has focused on the salesperson's profitability in the relationship approach. This issue is significant for sales managers because the investment in sales force is greater, and the relationship profitability with customers is not guaranteed.

Design/methodology/approach

Econometric model based on transaction cost economics theory and dynamic exchange between firm, salesperson and a customer. Specifically, this model links between customer life value, firm financial value, salesperson cost and relationship time.

Findings

Three zones are identified that can characterize the dynamic salesperson profitability. It was shown that only one zone can be profitable to the firm.

Research limitations/implications

This result is important because it can solve the equivocal posit between scholars with regard to the success or the failure of relationship marketing. This study also specifies the critical retention rate, the critical duration time in which a salesperson begins to be profitable.

Originality/value

In the author's knowledge, this study is the first to use an exchange model to show in which conditions the salesperson will be profitable in relationship marketing.

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Article
Publication date: 1 October 2018

Joon-Hee Oh and Judy Ma

Despite its significance in salespeople management, salespeople expectation management has received little attention in the literature, especially in the industrial…

Abstract

Purpose

Despite its significance in salespeople management, salespeople expectation management has received little attention in the literature, especially in the industrial marketing literature. In response, the purpose of this study is to leverage the expectation confirmation theory to present a conceptual framework that provides an effective tool for salespeople expectation management.

Design/methodology/approach

This study first explores the application and strategic implications of expectation-confirmation theory in salespeople expectation management and theorizes that salespeople establish pre-expectations (expectations that are developed before joining the firm), experience multiple stages of the expectation-confirmation process throughout their sales career with a firm and – in each stage – establish either a longer-term commitment to or permanent disengagement from the firm.

Findings

A winning strategy for sales organizations is to recognize salespeople expectations and to meet or beat these expectations. Salespeople expectation management is particularly important in sales organizations that frequently find aligning sales force management strategies with organizational imperatives to be challenging.

Research limitations/implications

This study extends expectation-confirmation theory by presenting a conceptual framework that: identifies the existence of pre-expectations of salespeople and their outcomes; recognizes that the expectation-confirmation process occurs across multiple stages in the salespeople’s career cycle; recognizes that the level of expectations in previous stages of one’s career cycle influences the level of expectations in subsequent stages; and conceptualizes the non-linear relationship between expectations, tenure and turnover intentions.

Originality/value

The multiple expectation-confirmation framework can be used for effective salespeople expectation and turnover management and may also serve as a general model of organizational interventions.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 8
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 4 March 2019

Tom Brashear-Alejandro, Hiram Barksdale, Danny Norton Bellenger, James S. Boles and Channelle James

This paper aims to examine a longitudinal study of mentoring functions and their effect on salesperson attitudes and intentions.

Abstract

Purpose

This paper aims to examine a longitudinal study of mentoring functions and their effect on salesperson attitudes and intentions.

Design/methodology/approach

The research is based on a multi-year study of salespeople beginning when the salesperson entered the industry being examined.

Findings

The level of interaction between the mentor and protégé was found to be the only antecedent examined that related to the perceived quality of mentoring functions. Age, education and length of employment for both parties; the degree of age and education difference; and the length of the mentoring relationship were not significant. Successful mentoring appeared to be based heavily on a mentor’s willingness and ability to interact frequently with the protégé.

Originality/value

This study adds to the literature on mentoring, looking at mentoring in a sales context. Research examining mentoring in a sales setting is much more limited than in many other professions, so the findings represent a valuable addition to the sales mentoring literature. Its influence on sales socialization may be very important.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 1 April 2019

Roberto Mora Cortez and Wesley J. Johnston

The purpose of this study is to examine predicted business-to-business (B2B) marketing capabilities for the next three to five years by companies in advanced, emerging and…

Abstract

Purpose

The purpose of this study is to examine predicted business-to-business (B2B) marketing capabilities for the next three to five years by companies in advanced, emerging and developing economies.

Findings

The authors identify the prevalent marketing capabilities in industrial companies operating in an advanced economy (USA), two emerging economies (Chile and Peru) and one developing economy (Bolivia), consolidating the themes in firms’ orientations. The study offers a taxonomy of the marketing role in different stages as per country development.

Design/methodology/approach

Qualitative approach based on grounded theory.

Originality/value

This manuscript contributes to the understanding of B2B marketing across different levels of market development. The authors offer theoretical and practical implications regarding the paradigms reigning the role of marketing. The coding scheme emerging from the data illustrates how companies and markets evolve in a two-way interaction.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 13 February 2020

Hector Augusto Torres, Andres Chiappe and Yasbley Segovia

The purpose of this paper is to identify in the specialized literature published in the past 20 years about sales training, some elements or key factors that could be…

Abstract

Purpose

The purpose of this paper is to identify in the specialized literature published in the past 20 years about sales training, some elements or key factors that could be applied to the use of information and communication technologies (ICT) as a support for the learning of the detection of business opportunities.

Design/methodology/approach

This is a study of a documentary nature in which a method of systematic literature review was applied to 132 studies published in journals indexed in Scopus and Scielo on sales training processes. The analysis of the data combined a process of categorization and frequencies statistical analysis.

Findings

The results highlight the role of ICT and specifically the use of mobile devices to support the strengthening of training in sales in terms of relationship, opportunity and flexibility in communication with the client, the construction of positive emotional environments and experiential/situated training.

Originality/value

The originality of this study lies in the extraction and interpretation of key factors focused on addressing a guiding question about the relationships between the use of ICT and sales training.

Details

Industrial and Commercial Training, vol. 52 no. 1
Type: Research Article
ISSN: 0019-7858

Keywords

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Article
Publication date: 13 February 2017

Said Echchakoui

This paper aims to examine the roles of both aggregate and specific commission rates to control the sales force in relationship marketing with a customer portfolio.

Abstract

Purpose

This paper aims to examine the roles of both aggregate and specific commission rates to control the sales force in relationship marketing with a customer portfolio.

Design/methodology/approach

Drawn on the concept of customer lifetime value and agency theory, the author calculated both specific and aggregate sales force commission rates in a relationship marketing perspective. Contrary to the prior researchers, the author assumes that, at any period, both the gross margins and retention rate of each customer are a stochastic function of the salesperson’s effort.

Findings

The results indicated that when there is symmetric information between a sales manager and salesperson, both aggregate and specific commissions can be used to monitor the sales force. Under asymmetric information, however, each type of commission rate can only be used under certain conditions. In addition, conditions in which the aggregate commission is equivalent to the specific commission for each customer were derived.

Research limitations/implications

Hypothetical data were used to explain the model. It would be more appropriate to use real data to see its managerial relevance.

Originality/value

In the author’s knowledge, this study is the first that specifically links scholastic customer’s retention and salesperson commission rate to monitor salesperson effort in relationship marketing. It is also the first that shows in which conditions aggregate and specific commission rates are equal for a salesperson’s customer portfolio management.

Details

Journal of Modelling in Management, vol. 12 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

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Article
Publication date: 4 March 2019

Mario Kienzler, Daniel Kindström and Thomas Brashear-Alejandro

This paper aims to investigate factors that affect the use of value-based selling and the subsequent influences on salespeople’s sales performance.

Abstract

Purpose

This paper aims to investigate factors that affect the use of value-based selling and the subsequent influences on salespeople’s sales performance.

Design/methodology/approach

Industrial salespeople from five steel manufacturers were surveyed. Scales measure three components of value-based selling: comprehension, crafting and confirmation. Partial least squares path analysis tested the conceptual model.

Findings

Salespeople’s learning orientation has the greatest impact on the use of value-based selling. Managerial support exerts a positive effect on crafting. Salespeople’s experience has a positive impact on comprehension and confirmation. The implementation of value-based selling has a positive effect on sales performance.

Research limitations/implications

The research is cross-sectional, with a small sample size (n = 60). The data were collected from a single source (i.e. salespeople).

Practical implications

The results suggest that value-based selling is a multi-component sales process that requires balancing managerial actions among individual and organizational factors.

Originality/value

This paper presents a broad evaluation of measures and assessments of value-based selling in business-to-business sales settings. The findings provide new elaborations on the theoretical and practical implications of value-based selling and reveal which individual and organizational factors affect the usage of value-based selling.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 27 February 2007

Ben Shaw‐Ching Liu, Nicholas C. Petruzzi and D. Sudharshan

The purpose of this paper is to apply customer lifetime value models to assess the overall value of the service encounter and to establish implications that such an…

Abstract

Purpose

The purpose of this paper is to apply customer lifetime value models to assess the overall value of the service encounter and to establish implications that such an assessment has for managing customer relationships under a fixed‐size salesforce.

Design/methodology/approach

Using a specific relationship between customer servicing activities and the buying rhythms of customers, an analytical model for assessing the overall value of a service encounter is developed.

Findings

A stochastic parameter is identified, characterizing the level of quality to compute the long‐term value of a given customer and stochastic ordering properties to determine the relative value of different customers.

Research limitations/implications

The implications discussed are analytical to help service managers shaping their thought process in decision making. Future research can empirically test the model proposed.

Practical implications

The theorem specifies the optimal solutions to determine: how much capacity should be committed to a given customer; and how to choose a customer in the first place. These are important and useful tools for managers in making their managerial decisions in service marketing.

Originality/value

A general model of resource allocation is provided, under which those seminal models such as CALLPLAN, DETAILER are special cases. This is particularly valuable as key account management has become more important in globally operated businesses.

Details

Journal of Services Marketing, vol. 21 no. 1
Type: Research Article
ISSN: 0887-6045

Keywords

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Article
Publication date: 22 May 2020

Faheem Ahmad Khan, Khuram Shafi and Amer Rajput

The purpose of this study is to reveal important insights by examining the relationships of two different field managers’ monitoring styles with performance through…

Abstract

Purpose

The purpose of this study is to reveal important insights by examining the relationships of two different field managers’ monitoring styles with performance through salespersons’ engagement.

Design/methodology/approach

Data was collected from 318 salespersons’ from 20 pharmaceutical firms. Given the performance-driven nature of the pharmaceutical sales profession, field managers seek to adopt the best monitoring style, which can optimize individual’s performance while providing a healthy work environment.

Findings

The results from multivariate analysis show the evidence of positive relationship between interactional monitoring and salespersons’ engagement. The results also confirm that engagement partially mediates the proposed relationships.

Originality/value

Authors assimilate and extend research and theory on field managers’ monitoring, salespersons’ performance and salespersons’ engagement to advance a model of salespersons’ reactions to different monitoring styles based on self-determination theory. Perhaps in no other field, the salespersons-field managers’ relationship is as important as in the field of pharmaceutical selling. The study offers insights about the important consequence of two different monitoring styles; also the study is one of the exceptional efforts to provide evidence regarding the role of engagement in the relationship between two different monitoring styles and salespersons’ performance.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 14 no. 3
Type: Research Article
ISSN: 1750-6123

Keywords

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