Like perishable goods in grocery stores, sales models have a sell-by date. As product standards evolve and new entrants emerge, buyers have more choices and demand more in terms of quality and performance across vendors. Firms that fail to adjust to changing customer expectations lose advantage. Building and maintaining a relevant sales model—that is understood by everyone from executives in …
Only a few years ago, most software companies sold seat licenses for their products, charging customers on the basis of head count. But today, software is typically provided using cloud-based software-as-a-service (SaaS) models that charge customers fees for consumption. Technology companies have spent billions on the innovation necessary to achieve this product shift. Now, they need to transfo…
Includes index
Includes bibliographies and index
Although pricing is one of the strongest drivers of profitability, little empirical research has examined how a firm should organize pricing internally. This research draws on the information-processing view of organizational design to conceptualize a framework of how firms organize their pricing authority both within the sales function and across the sales, marketing, and finance functions. Th…
Salespeople represent a primary source of competitive intelligence (CI), but the contextual factors that influence the performance impact of salesperson CI quality remain underresearched. The authors develop a framework to examine the performance impact of CI quality at the individual salesperson and sales district levels, with sales district CI quality diversity and sales managers? network cen…
Two key issues in business-to-business (B2B) sales force management are (1) how much a given sales job should be compensated (pay level) and (2) how much of the compensation should be fixed versus variable (pay structure). The authors examine the paychecks drawn by people in more than 14,000 selling jobs and more than 4000 sales management jobs in five B2B industry sectors in five European coun…
Sales contests are short-term incentives that managers use to raise sales effort. The extant marketing theory predicts that the optimal prize structure should have two characteristics: (1) The number of prizewinners should be greater than one, and (2) prize values should be unique and rank ordered. However, this theory has not been empirically examined. This article presents two empirical studi…
No question about it: This is a tough time to be selling to business customers. This would be thoroughly discouraging if not for one fact: Companies have survived downturns before, and some have even profited from them. Rather than resign themselves to hearing the standard, Sorry, we have no budget for that, some vendors - even some very young start-ups - have found a way to reach their custome…
Manufacturers frequently believe that adding value in the form of services will provide a competitive advantage after their products start to become commodities. But for every success story, at least five cautionary tales remind us that manufacturing companies will most likely struggle to turn a profit from their service businesses. Companies unsuccessful at developing service businesses have t…
n many organizations, there is little coordination between the marketing and the sales functions. Leads generated by marketing activities are often ignored by the sales force, and inadequate knowledge of the sales process often results in marketing programs of, at best, variable quality. Integration requires an understanding of how multiple communications influence one another. The authors deve…
While there is a significant amount of research on determinants of selling effectiveness for individual salespeople, there is a surprising lack of study of factors that affect selling effectiveness in team-selling situations. The context of key account management (KAM) is discussed, and a conceptual model of factors that affect KAM effectiveness is developed. An hypotheses with data from 385 fi…
Sales force automation technologies are increasingly used to support customer relationship management strategies; however, commentary in the practitioner press suggest high failure rates. A study uses identity theory as a lens to better understand salesperson perceptions associated with technology rejection. Survey data were collected from 454 salespeople across 2 firms that had implemented sal…
Sales response models are widely used as the basis for optimizing the marketing mix. Response models condition on the observed marketing-mix variables and focus on the specification of the distribution of observed sales given marketing-mix activities. The models usually fail to recognize that the levels of the marketing-mix variables are often chosen with at least partial knowledge of the respo…