Search results

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.

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.

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.

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

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.

Digital solutions (DS) that build on recurring revenue models (RRMs) offer new opportunities to continuously create and capture superior value. However, many firms fail to engage their sales force in digital solution selling (DS selling), leading to agency problems that receive little attention in literature. This study aims to examine the drivers of agency problems that surface in the transition toward DS selling and the sales control systems that resolve these problems.

The authors conducted a qualitative, inductive study. Data were collected from interviews with 72 marketing and sales managers representing 53 industrial firms transitioning toward DS selling.

DS selling is subject to adverse selection and moral hazard caused by motivation-related, opportunity-related and ability-related drivers. Input, capability, activity and outcome controls – detailed in this study – can resolve these agency problems.

The limitations of this study’s methodology and scope suggest several directions for future research. Methodology-wise, the authors mainly relied on cross-sectional interview data from informants in Central and Northern Europe. Scope-wise, more research is needed on the capabilities, processes and steering instruments supporting DS sales. Finally, only now do the authors begin to understand which compensation plans motivate DS selling.

The controls identified in this study help managers to steer their sales force in DS sales.

To the best of the authors’ knowledge, this study is the first to investigate DS sales control systems. Thereby, the authors enhance prior understandings of solution selling, agency problems and sales control systems.

Although sales activities in the wine industry are becoming increasingly important, there has been little research on the sales capabilities in wine businesses. The purpose of this paper is to address this gap by examining the most important salesperson and sales management capabilities and emerging trends related to the management of sales capabilities in the wine industry.

Empirical analysis based on an explorative research design was conducted in the Italian wine industry. Sales directors from 4 of the 30 largest Italian wine producers were interviewed. Textual data were analysed using template analysis.

Analysis of the findings revealed the most important capabilities of salespeople and sales managers and identified four emerging trends related to sales capability management in the wine industry – capabilities enrichment, capabilities balance, capabilities specialisation and capabilities acquisition process.

Given that only large wine producers in the Old World were interviewed, caution should be exercised before extending the findings to small and medium-sized players and to those in the New World.

The trends identified in this study provide actionable insights for designing strategies to manage sales capabilities in wine businesses.

This was one of the first studies to address the capabilities of salespeople and sales managers and to provide an in-depth examination of sales capability management trends in the wine industry.

The purpose of this paper is to more thoroughly investigate the role of organizational citizenship behaviors (OCBs) in sales force settings and the reason why salespeople should practice OCBs. In fact, in spite of the huge body of literature on OCBs and their impact on performance, some important knowledge gaps still remain to be filled. Inconsistent and unexpected findings are particularly apparent in the relatively few studies investigating OCBs in sales forces. The authors argue that some specific characteristics of the selling job and related tasks make the analysis of the practice of these behaviors in the sales context particularly interesting.

The authors explore which OCBs salespeople engage in, and analyze the perceived consequences of such behaviors using means-end theory and the laddering technique. They apply means-end theory and the laddering technique to interview a sample of salespersons from three companies operating in different business-to-business settings.

The end result of the empirical analysis is the hierarchical value map showing a set of linkages among OCBs and their perceived consequences. In the perceptions of salespeople, OCBs play a strong utilitarian role in that they facilitate personal goal attainment. In salespeople’s minds, there are no relevant trade-offs between OCBs and task-performance as long as the former can be used to improve the latter. For salespeople, the path from OCBs to performance may vary, depending on whether the performance in question is organizational, individual or customer-focused. Finally, some OCBs apparently contribute to creating customer trust in the salesperson.

The findings add some interesting insights to the discussion regarding some controversies in OCBs literature, especially the interplay of contextual performance and task performance.

Various types of OCBs can be encouraged through different managerial interventions. As an example, altruism can be fostered by appropriate recruiting criteria (e.g. using “attitude toward teamwork” as a key personnel selection factor), and by training initiatives and leadership style. Altruism can also be stimulated by an adequately designed organizational structure (e.g. team-based) as well as by adopting appropriate integration mechanisms that facilitate interpersonal and interfunctional cooperation. Sales managers can foster some OCBs by promoting knowledge sharing and reciprocal learning among members of the sales team, and by emphasizing the positive consequences of OCBs in all communication with salespeople.

Findings from this study challenge some widespread assumptions about OCBs in general. In fact, most of the literature holds that OCBs are an example of prosocial behaviors. Actually, the findings suggest that in the specific case of salespeople, OCBs are ultimately self-directed, for the most part.

The Nature of Business Policy Business policy — or general management — is concerned with the following six major functions:

Learning is at the crux of strategic alliance success today. The notion that alliances produce synergy implicitly means that alliance partners and employees must learn from the new environment created by the joining of two or more companies. Often, the sales force is overlooked in academic research concerning alliances. This is unfortunate, because the sales force is the “eyes and ears” for the alliance partners and can facilitate the learning process. Proposes a conceptual framework that captures learning at the interorganizational and individual salesperson levels. The research adds to the growing interest in organizational learning and strategic alliances, and it creates the groundwork for an interorganizational learning theory concerning the blending of two or more sales organizations.

Details how the O2 sales academy has helped to improve the skills of the UK mobile‐telecommunications company's sales force.

Explains the reasons for the setting up the academy, the form it takes and the results it has achieved.

Describes the academy's four competence levels and the accreditation levels that correspond with these. Details the improvements, for individuals and the organization as a whole, that the academy has brought.

Reveals that O2's sales people and managers are now better able to engage with customers in a truly consultative way, and that this has had a measurable impact on the company's revenues.

Describes how to build a sales organization capable of being seen as a source of value by the customer.

Provides much to interest companies operating in markets where customers have difficulty differentiating between competing products and services and are driven by price.

The purpose of this paper is to examine sales manager training approaches, methods, and instructors (as well as their perceived effectiveness, frequency, and assessment).

Utilizing a survey approach, data were collected (and analyzed) from 355 members of two associations: the United Professional Sales Association and the American Society for Training and Development.

First, internal training approaches and instructors are most commonly used and perceived as most effective. Second, sales managers are exposed to a wide variety of training content as part of their training activities. Third, the frequency, duration, and assessment of training vary widely among respondent organizations.

The utilized sample of sales managers and trainers are employed by firms within the USA. Cultural differences could exist in training practices, training content, and perceptions of effectiveness among respondents from other countries.

First, sales manager training activities lie on a continuum that complicates effectiveness measurement. Second, sales manager training should be provided in the field by those who are either senior to or more knowledgeable on the training topic(s) than the sales manager. Third, internet‐based training methods are still in their infancy. Fourth, the complexities associated with the sales manager position lead to a need for varied training being delivered by diverse instructors.

Almost a decade has passed since the last empirical studies of the “nuts and bolts” of sales manager training practices were published. The current study builds on previous work by utilizing a larger sample and incorporating technology advances and new content areas (e.g. financial analysis, networking, partnering, cross‐functional activities).

To sustain firm profitability, it is critical for sales managers to direct business-to-business (B2B) salespeople to generate revenues by simultaneously acquiring new customers and selling to current customers. However, emerging research indicates territory-based B2B salespeople have a preferred customer engagement orientation that reflects a tendency for engaging in selling activities to new (i.e. hunters) and/or existing (i.e. farmers) customers, suggesting that managerial ambidexterity directives could have deleterious effects on salespeople. This paper aims to address this possibility by investigating the moderating effects of salesperson regulatory focus on the relationship between managerial directives for salesperson ambidexterity and salesperson job satisfaction.

The study uses a mixed-method approach by using a field study of 106 matched sales manager–salesperson dyads from a large Fortune 500 B2B industrial distributor sales force and an experiment involving 152 B2B salespeople from a cross-section of industries.

The results indicate that sales manager ambidexterity requests reduce salesperson job satisfaction. However, the findings also demonstrate that salesperson regulatory focus moderates these negative effects such that the negative effect of manager ambidexterity requests on job satisfaction is reduced for salespeople with high vs low levels of regulatory focus ambidexterity balance. The results from the cross-sectional experimental study illustrate the cognitive mechanism that helps explain why this occurs.

The Fortune 500 firm used in Study 1 uses a territory-based generalist sales force model where salespeople are not incentivized to prioritize hunting over farming (and vice versa). As a result, the findings may not generalize to firms with hunting/farming incentive systems or to those that operate in particular industries requiring a focus on either hunting or farming.

The findings show why managers attempting to direct territory-based salespeople to increase their ambidexterity behaviors may undermine the job satisfaction of certain salespeople by triggering a decrease in motivation while the same directives have the opposite effect for other salespeople. The findings also demonstrate salesperson reactions to ambidexterity requests, which provide additional insights for effective salespeople hiring, training and management.

The findings have implications for better understanding the effectiveness of sales management leadership directives. The study also offers a promising direction for future research to investigate salesperson receptivity to managerial controls.

The purpose of this paper is to examine practices of and differences between small and large organizations as they relate to the training of sales managers.

Utilizing a survey approach, data were collected from a sample of sales managers and trainers employed by firms across the USA. Analysis was conducted between “small” and “large” organizations based on sales force size.

While many similarities do exist between small and large firms' sales manager training practices, some significant differences also exist in terms of teaching approaches, types of instructors, training locations, methods, and content utilized. Results of the current study exhibit both similarities and differences as compared to results of sales manager training practices found in earlier studies.

The study was based on a sample of sales managers and trainers employed by firms within the USA. Sales manager training practices could differ due to cultural differences, the industry the firm competes in, and other factors.

First, sales manager training activities show more similarities than differences between small and large firms. Second, internet‐based training methods are becoming prevalent in large firms while still struggling for acceptance in smaller ones. Third, no one type of instructor is viewed as being highly effective in either small or large firms. Fourth, senior management must support and encourage positive behavioral changes associated with sales manager training or else efforts will fail.

The current study answers the call for research to identify contemporary sales manager training practices, building upon results of previous studies.