Sales Management Text Book

31451_11_cases.qxd 15/03/05 21:15 PM Page 377 Cases Evaluating the Success of a Salesforce Promotional Program 377 Denman Industrial Products South American Operations Division Report Beta/LR–12-month period ending 12/31/1996 printed 1/20/1997–4:14:47 a.m. G.M.T. page 1 of 3 Sales Exception Report/Large Accounts First Promotional Second Promotional Campaign 1996 Campaign 1996 Territory Territory Pre Post Returns Pre Post Returns Code Office Paraguay Asuncion (+) (+) (–) (–) (+) Colombia Bogotá (+) Brazil Brasilia (–) Argentina Buenos Aires (–) Venezuela Caracas French Guiana see Guyana (–) (+) Guyana Georgetown Bolivia La Paz Peru Lima Uruguay Montevideo Surinam see Guyana Trinidad/Tobago see Guyana Ecuador Quito Denman Industrial Products South American Operations Division Report Beta/LR–12-month period ending 12/31/1996 printed 1/20/1997–4:14:47 a.m. G.M.T. page 2 of 3 Sales Exception Report/Medium Accounts First Promotional Second Promotional Campaign 1996 Campaign 1996 Territory Territory Pre Post Returns Pre Post Returns Code Office Paraguay Asuncion (–) (–) (–) (+) Colombia Bogotá (+) (–) (+) Brazil Brasilia (–) (+) Argentina Buenos Aires (+) Venezuela Caracas French Guiana see Guyana Guyana Georgetown Bolivia La Paz Peru Lima Uruguay Montevideo Surinam see Guyana Trinidad/Tobago see Guyana Ecuador Quito

31451_11_cases.qxd 15/03/05 21:16 PM Page 378 378 Cases Dura-plast, Inc. (A): Global Account Management Denman Industrial Products South American Operations Division Report Beta/LR–12-month period ending 12/31/1996 printed 1/20/1997–4:14:47 a.m. G.M.T. page 3 of 3 Sales Exception Report/Large Accounts First Promotional Second Promotional Campaign 1996 Campaign 1996 Territory Territory Pre Post Returns Pre Post Returns Code Office Paraguay Asuncion (–) (–) (+) (–) (–) (+) Colombia Bogotá (–) (–) (–) Brazil Brasilia Argentina Buenos Aires (+) Venezuela Caracas French Guiana see Guyana Guyana Georgetown Bolivia La Paz Peru Lima Uruguay Montevideo Surinam see Guyana Trinidad/Tobago see Guyana Ecuador Quito Notes to report: 2. Sales return levels and/or contract cancellations for post-promotional periods are also identified 1. Exception reports identify, by account type and where significantly different from forecasts. territory, sales levels significantly different from forecasts for equal length periods immediately prior to and following promotional periods. DURA-PLAST, INC. (A): GLOBAL It is now January, 1995, and Mr. Parker is sitting ACCOUNT MANAGEMENT in his office at DP-A’s Flint, Michigan, headquarters. Tom Parker, CEO of Dura-plast-Americas, Inc. He is thinking about the efforts his company made (DP-A), directs the U.S. subsidiary of a profitable and the difficulties it encountered in presenting a suc- international equipment manufacturer, Kovner DP cessful sales contract to provide Techno Plastics, Inc. International (DP International). He is responsible with Dura-plast granulator equipment. Techno for directing DP-A’s long-term growth and wel- Plastics, based in France, is a major international plas- fare, as well as meeting annual sales and profitabil- tics producer which had decided to build a plant in ity targets. As the head of the manufacturer’s the southeastern part of the United States. The sales largest subsidiary, Parker also has been given the process was complicated by the need for coordination task of developing and implementing sales and across DP-A’s different country-based subsidiaries marketing strategies that will support the entire and because Techno Plastics was a new customer for Dura-plast group’s profitability. DP-A. Parker was pleased to receive reassurance from Source: Written by Ryan Oliver under the supervision of Professor Joe Cannon as a basis for classroom discussion. As part of the case development, firm and individual specifics have been disguised. Copyright © 1996 by the Roberto C. Goizueta Business School of Emory University. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Goizueta Business School. Reproduced March, 1996.

31451_11_cases.qxd 15/03/05 21:16 PM Page 379 Cases Dura-plast, Inc. (A): Global Account Management 379 Techno Plastics that his bid would be successful, but, Group continues to grow through expanded sales and realizing that more and more plastics manufacturers company acquisitions. Its operational structure and are setting up global manufacturing operations, tactics support the growth of individual companies Parker wondered if changes were needed to better operating as important market markers in focused serve global accounts. geographic areas. While most subsidiaries hold promi- nent positions near their customer bases, Thorton Granulation Equipment Company Headquarters have traditionally been DP-A and its parent company are in the business of placed close to their representative Norwegian manu- designing, manufacturing, assembling, and selling facturing plants. Thorton and DP International plastics granulators. A plastics granulator is used to specifics are provided in Exhibit 1 (Organizational chop plastics waste (bad parts and production Structure). rejects) into small granules for closed-loop recy- cling. Granulators are most commonly used in DP International follows a typical Thorton com- industrial shops, where excess scrap is fed into the pany organizational system: it develops and produces granulator hopper for conversion through rotating its granulation equipment in Norway and conducts knives. The small uniform bits of processing scrap sales through its international subsidiaries, thereby and bad parts which emerge from the granulator, manufacturing globally with local market support. called the “regrind,” can then be recycled. DP International invoiced sales totaling $233 and $326 million in 1992 and 1993 with respective earn- Granulators are specified by their infeed or throat ings of $11 and $47 million. The parent company had size, throughput and weight, and by the composi- a return on capital of over 35% during this period. In tion and chemical makeup of the plastic waste they 1994, approximately 2700 units were sold in Europe, can process within an hour. Each is fitted with an 2050 in America, and 500 in Asia. There has been infeed hopper designed to handle various plastics substantial improvement in earnings as a result of the dimensions. Granulators positioned next to the plas- strong volume growth. However, DP International, tic manufacturing machine to reclaim plastic scraps with its high level of sales abroad, has also benefited immediately are known as beside-the-press (B-T-P) from a weaker Norwegian krone rate.1 granulators. Other types of granulators are placed in a central location (Central) in the plant and scraps DP International’s low-noise granulators have are delivered to them manually or by conveyor or primarily been used for granulating plastic waste in sold as smaller, stand-alone (Automated) units. connection with the automated manufacture of plastic products. A proprietary design offers techni- The granulators sold range widely in price, feature, cal superiority which has allowed the company to and quality/performance tradeoffs. Because granula- establish a strong global market presence. Its tors can be tailored to the specific production process unique, patented reversible knife design is currently of the customer, both the analysis and identification of produced only in Norway. customer requirements and customization costs are figured into the price of the product. In addition to supplying all the cutting chambers to its international subsidiaries, DP International Thorton Group and Kovner sells a large number of complete machines because DP International of the complexity of the electrical and drive systems. DP-A is a wholly-owned subsidiary of the Norwegian However, because products qualifying as locally Thorton Group member, DP International. The made have lower costs due to lower import duties, group consists of a number of medium-sized engi- DP International established an assembly and man- neering companies in the producer-goods industry, ufacturing plant in the US and an assembly plant in each with the developing medium-sized industrial Germany. These run as autonomous P&L locations, companies in a particular specialty area. The Thorton typically assembling, customizing and adding local content to the larger granulators that are sourced Organizational Structure EXHIBIT 1 Thorton Group Kovner DP International St. Martins Dysan Ampad DP-A (Americas) DP Germany DP France DP Britain DP Asia DP Scandinavia

31451_11_cases.qxd 15/03/05 21:16 PM Page 380 380 Cases Dura-plast, Inc. (A): Global Account Management from Norway for sale throughout the Americas and business practice initiatives suitable to that business Europe. The small to medium-sized machines cur- environment and culture. Final responsibility, how- rently do not qualify as US products under NAFTA ever, and authority in decision making is given to the content requirements, and as such are not free from local subsidiary. import duties. However, because of the interrelated nature DP International is planning further decentraliza- between international marketing and manufacturing, tion of its manufacturing operations with the estab- there have been increasing problems regarding con- lishment of a cutting chamber production facility in tract specification and pricing issues internationally. the US. This move will lower transportation costs, Some members of the DP International group, for which currently add 6% or more to the final sale price instance, have begun to wonder if it might be a good of DP International units. In addition, it would idea to set a standard price internationally. With enable the company to meet in-country product respect to sales strategy, some agree with the DP-A requirements, lessen the risk of international currency Vice President for Sales, Richard Foster, who argues fluctuations, and lower tax and tariff duties. that confusion in the sales cycle could be limited if the criteria for involvement in the sales relationship DP International has responded to the cost of were more narrowly defined. His suggestion is for maintaining large product lines by developing flexibil- “involvement only when a person can enhance the ity in the manufacturing cycle. Increasingly, DP sales relationship.” Others suggest greater or lesser International has been able to customize its products involvement across countries. to meet customer requirements, an important factor in DP International’s low-cost, high-volume strategy. Traditionally, most countries have employed In fact, during 1992, DP International successfully Agents2 to sell and distribute granulators. Agents launched a new product generation based on a mod- buy the Dura-plast granulators and then sell them ular product system, which brought about a strong to their own customer base, setting their own price volume increase in 1993. In 1994, the US subsidiary, levels. Prices in some cases are higher than DP DP-A, developed a US hopper welding cell which International has wanted. In this set-up, the agent allowed for additional, in-house customization of the decides how he wants to sell in the market, and larger machines. determines his own segmentation, targeting, and positioning, perhaps to the exclusion of some areas In order to handle market demand changes and of the market. If the market is slumping, the agent increasing sales, DP International expanded its argues that the price is too high. However, the plant capacity in Norway this past year. When at full manufacturer has limited knowledge of the specific capacity, the new plant will allow the organization competitors, contract terms, or agent mark-up. In to expand sales from 5,000 to 7,000 with a sub- fact, if the agent forgoes the contract, the manufac- stantial increase in its large-capacity machine pro- turer can lose an entire customer base. duction facilities. One of DP International’s new channel strategies Subsidiary Companies is its transition to Manufacturer’s Representative Torger Erlandsen, the managing director of DP (MR)3 relationships in each of the DP International International, directs the integration of the interna- offices worldwide—thus standardizing part of its tional operations. Under his leadership, each of the selling strategy. This strategy focuses on generating subsidiary companies retains significant autonomy in sales through MRs contracts instead of through sales both organizational structure and management. As agents. One of the primary benefits of this strategy a result, the operational manager in each of the coun- is to help DP International to protect its current and tries functions in an atmosphere that offers a high long-term market position by getting closer to the degree of entrepreneurial freedom. Country man- customer. It is important for DP International to agers make their own decisions with respect to sales understand where its machines are being sold and to strategy, pricing, and promotion. Erlandsen believes develop brand name loyalty in the market. The that granting this leadership independence is the most global program to take control of the customer has effective way to maximize the opportunities within helped to clarify pricing and stabilize production. If the granulation equipment sales’ niche marketplace. the market is slumping, DP International’s regional sales managers will be able to intensify the sales While each of the subsidiary companies reports to efforts or make strategic decisions, such as price the Norwegian headquarters, the subsidiary organi- reductions. zations do not have formal ties with each other. In a growing number of cases, however, an order may Each of DP International’s subsidiaries handles the be generated from an area outside of a subsidiary’s MR and other selling issues differently. The following direct responsibility; the individual subsidiaries then sections provide more detail about DP International’s have the responsibility to coordinate efforts which subsidiaries in Germany, France, Britain and North take into account specification development and America.

31451_11_cases.qxd 15/03/05 21:16 PM Page 381 Cases Dura-plast, Inc. (A): Global Account Management 381 DP Germany (DPG). Germany is a large market DP-Americas (DP-A). DP-A, the biggest company in that is treated as an individual unit in DP the DP International Group, faces the challenge of International’s international planning exercises. marketing within the quick cycle, volatile US, Germany’s solo status and competitive advantage Canadian, and Mexican marketplaces. Strong in the stems from its market size, homogeneity, and the US and Canada, DP-A has not made significant location of a manufacturing plant which supplies inroads into the Mexican, Latin American or South the rest of Europe. The German market is almost as American markets as yet, principally because of practi- large as the US market with respect to the total cally non-existent safety standards, which allow com- number of customers. petitors in these developing countries to build machines at a significantly lower cost. German companies typically bid on a packaged basis. Each offer generally includes pricing and DP-A’s operations are led by a board of direc- terms regarding auxiliary equipment, start-up and tors, consisting of Torger Erlandsen, a Norway- installation, plans, and long-term spare part com- based manufacturing expert, and DP-A CEO Tom mitments. Each part of the bid package is important Parker. While Parker is responsible for day-to-day to contract acquisition. management of the DP-A activities, major decisions are approved by the board of directors. The board Germany recently changed its sales organization of directors currently meets on a quarterly basis structure by shifting from an agent driven sales- with additional meetings as needed. force to one which includes both agents and MRs. Under the direction of a DPG sales manager who DP-A’s domestic staff are split into three opera- controls a group of sales reps and one agent, the tional groups. The operations group manages the country has been divided into territories where assembly and small-scale manufacturing operations in representatives are given regional exclusivity. In Flint, Michigan and a larger manufacturing plant just addition to managing the salesforce, the sales man- outside Knoxville, Tennessee, which will come on line ager develops relationships and bids for larger in 1998. The Administration and Planning functions, granulation systems, calling on original equipment as well as the Sales functions, are centralized in Flint. manufacturers (OEMs) and the largest potential purchasers. The US bidding system is unlike Europe’s. In addition to the faster selling cycle (the time from ini- DP France (DPF). In France, as with the rest of tial inquiry to final sale lasts between 2–8 months), Europe, sales cycles have traditionally been much US customers do not require the same amount of longer than those in the US. The time from initial specificity and long-term price guarantees as those in inquiry for granulation equipment to delivery Europe. DP-A, for instance, typically bids systems averages 12–18 months. As a result, manufactur- without the inclusion of auxiliary equipment and ers and their customers have a longer time to plan start-up costs. Start-up tends to be handled in-house and delineate product quote and specifications. and auxiliary equipment purchases are placed as Tom Parker suggests that “the introduction of needed. Most equipment installations are designed to MRs has allowed DP France to manage its cus- be self-service—usually handled easily by in-plant tomer base more closely.” Consequently, DP engineers. DP-A does not bid for long-term spare France has developed sales relationships with sev- part commitments or with detailed plant location eral larger firms that have plants throughout specs either. Primarily because the market does not France and worldwide. France is currently the expect it, but also because the North American smallest DP International European subsidiary. market is much more price-driven, bidding is more French customers typically expect bids to be pre- narrowly focused than in Europe. sented in the same manner that German cus- tomers do—including all details on service, spare DP-A’s sales structure primarily relies on a network parts and support. of Manufacturers Representatives. Each of DP-A’s sales managers directs 4–5 MRs, spread out on a DP Britain (DP-UK). The DP International office regional basis. Sales managers have responsibility for in Britain still uses an agent system to promote and non-contiguous regions, such as a territory covering sell its products. The agent system works because it California, Canada, New England, and Texas. is a generally accepted practice in the market and Richard Foster notes that non-contiguous sales areas because of the limited interaction required in the give DP-A the ability to determine whether sales per- sales process. Unlike the rest of Europe, distributors formance is a result of regional economic downturns in Britain do not have to delineate each of the engi- or lackluster performance. Rising airline costs may neering and sales support requirements in the sales cause DP-A to review this policy. contract. DP-UK is a mid-sized DP International European subsidiary. Currently, DP-A has exclusive, non-compete con- tracts with 25 MR groups, which in turn employ over 100 sales representatives. The DP-A MRs are located throughout the United States, Canada, and

31451_11_cases.qxd 15/03/05 21:16 PM Page 382 382 Cases Dura-plast, Inc. (A): Global Account Management Mexico. MRs are the dominant distribution channel Granulators sold to customers in this category in the granulation industry because of their ability to generally sell for between $10,000 and $50,000. cross-sell to the customer. A typical MR represents While the service aspect of the sale provides injection molding, blow molding, extrusion mold- ground for an ongoing relationship, there are ing, vacuum systems for moving plastic, and drying no long-term purchase commitments. systems equipment to the companies he or she visits. As such, representatives are a one-stop shop for • Key accounts represent the top 15% of DP-A a company’s comprehensive plastic production sales and include large unit volume and annual equipment requirements. dollar sales. The DP-A employee acts as a con- sultant in this relationship; more technologically The use of MRs allows DP-A to increase coverage proficient DP-A managers discuss the company’s while keeping full-time personnel to a minimum. long-term plans and project goals. Currently, MRs are not always the only contact with the end- there are no formal long-term purchase commit- user; however, their expertise and relationship with ments. Machines sold to these customers often the buyers, built through the cross-sale of different cost more than $50,000. types of plant equipment provides an effective and efficient sales strategy. MRs do not sell to all DP-A Customers accounts. Larger sales are handled by DP-A’s own The plastics industry uses two types of materials— marketing managers on the basis of leads generated thermoplastics and thermosets—in combination from MRs and DP-A’s direct advertising. If a lead with stabilizers, colorants, flame retardants, and generated by an MR generates a sale, the MR still reinforcing agents in the plastic production process. receives the standard commission. These are then shaped or molded under heat and pressure to a solid state. Thermoplastics can be The best MRs generally carry the most effective resoftened to their original condition by heat; how- and best known products because of their ability to ever, thermosets cannot. Thermoplastics account close deals with a large group of well-established for almost 90% of total plastic production and principals. MR groups have between 2 and 10 sales- nearly 100% of granulation activity. people and close total sales in the range of 1 to 15 mil- lion dollars annually. Commissions on machines sales In general, thermoplastics output takes the form are generally 12% for mid-sized machines, 6% of pellets, flakes, granules, powders, liquid resins, for the large-size machines, and 14% for machines sheeting, pipe, profile, parts, or film. It can be under $10,000. If the MR and/or DP-A negotiated divided into four production categories: price discounts, these are generally split between the MR and DP-A. Type Examples % Total Industry MRs do not direct the installation or provide serv- ice for DP-A. Installation is not a critical sales factor Injection molding Automobile parts, 50 for the smaller machines, because the machines arrive Blow molding pudding cups 12 assembled and ready to run. For the larger central Extrusion 30 system machines, DP-A typically sends a service tech- Reclaim Soda and milk nician to the installation sight to check wiring and bottles 7 set-up specifications before the machine is first used. Service is directed from DP-A’s central headquarters Trash bags, plastic in Flint, Michigan. pipes Of DP-A sales, approximately 90% of all machines Post consumer sold are used for new applications and 10% to recycling replace outdated equipment. DP-A sales managers and MRs sell to a wide variety of individuals and DP International sells the largest number of companies on both a transactional and collaborative its granulators to injection molding companies. basis. DP-A classifies its current customers into the Nonetheless, it generates its highest level of profit following categories. from equipment utilizing extrusion processing, because the machines in this production category • Transactional accounts, where customers pur- are significantly larger and more complex. chase with both price and features in mind. In general, there are no long-term relationship or Large injection molding companies include Ford, purchase commitments. Machines sold to these Chrysler, and GM, as well as consumer product pro- customers generally sell for under $10,000. ducers such as Black and Decker. Injection molding is a versatile and quick production process, and compa- • System accounts are developed when MRs work nies relying upon it have recently taken advantage of with customers to define needs and establish fit. improvements in technology to expand productivity.

31451_11_cases.qxd 15/03/05 21:16 PM Page 383 Cases Dura-plast, Inc. (A): Global Account Management 383 In 1992 and 1993, this segment’s plastic purchases In recent years, large global purchasers are increas- grew by more than 11%. ingly seeking suppliers which can provide interna- tional turn-key solutions and services as opposed to Blow molding has shown high growth in the last sourcing from multiple suppliers for products and few years because its resulting products are less services. Using a single global supplier enhances expensive and easier to design. As new technology negotiating power, standardizes spare parts, and makes blow molding more profitable, blow mold- allows the customer to build a closer relationship ing firms, which include Coke, Pepsi, Tupperware, with one supplier. Global customers are asking gran- and Rubbermaid, have continued to expand their ulator manufacturers to solve scrap recycling prob- operations. lems rather than simply sell them machines. This move is partly a result of the reduction in engineers Extrusion is a popular method of producing at plastic manufacturer’s production facilities. One large quantities of both uniform and dissimilar customer commented that his firm wanted to focus material that can be packaged into small units and its efforts on manufacturing, not on developing an distributed easily. The demand for plastics used in expertise in recycling systems. extrusion grew by over 12% for both 1992 and 1993. Future projections are not so rosy; growth in The trend is especially prevalent among some segments of the extrusion industry which are European multinational firms, which traditionally expected to drop to less than 1% in 1995, and to have expected a high degree of supplier technical contract by 4.4% in 1996, due to excess capacity. support. Additionally, rather than hiring technical expertise, purchasers are now contracting with Granulator Sales. DP-A offers approximately 30 companies which provide a centralized rather than different models in four primary product groups and local engineering focus. one secondary product group through a strategic alliance with an original equipment manufacturer A recent survey of DP-A customers and MRs (OEM). The automation product group focuses on found that they most value product performance, fea- small, automated granulators for the injection mold- tures, and the ability to customize the application. ing market segment; the B-T-P product group is When asked to determine the most important attrib- geared toward mid-size granulators for the injection ute in the purchase decision, 41.7% of the customers molding/blow molding market; the central product chose quality/overall performance. In contrast, price group concentrates mostly in central reclamation in was the most frequent response given by the MRs the extrusion market, while the parts/auxiliary/serv- (31.4%). DP-A customers seem to view price as more ice product group is directed toward all customers. of an order qualifier rather than an order winner. (Exhibit 2 provides a price/attribute comparison of The manufacturing process for DP-A equipment DP-A customers and manufacturer representatives). is a flexible multi-step process because of the unique design needs of individual clients. Compact DP-A’s most recent value-added solutions machines generally require less customization. include its efforts within the injection molding, blow These machines come with DP-A’s positive feed molding and film extrusion market segments of the and rotating knife systems. Specifically, the design plastic industry. Specialized niche development in the cutting chamber ensures positive feed of includes reclaim for scrap plastic, robot-fed injection bulky materials and high throughputs. The molding, hot melt resin reclamation, edge trim reversible rotating knives allow the clearance film/sheet, post-consumer waste bottle, vinyl siding between the cutting edges of the rotating and bed and central thermoform scrap market segments. The knives and the screen to remain constant. Both con- niche markets are highly customized and provide tribute to improved efficiency by reducing energy high gross profits with limited competition. In sup- consumption and averting heat buildup. port of these markets, DP-A engineers have worked with the market managers to further develop prod- The heavy-duty models include the positive feed uct engineered systems to meet their customer’s and reversible rotating knife systems, as well as application needs. Identification of these opportuni- engineering systems capability and special hopper ties, however, continues to be a challenge. availability. Specialists in the engineering depart- ment are able to design a system to fit particular DP-A’s product portfolio overview provides production requirements. As Tom Parker remarked, information on each of the company’s three major “the machines are generic but the applications are product groupings, the Automated, B-T-P, and specific.” Some applications require specially Central. Individual components which are critical designed hoppers for maximum throughput and to application success and compliance include cut- increased productivity. Energy efficiency remains a ting chamber size, horsepower, rate screen, rotor common concern in the design and purchase of configuration, RPM, and product features such as both heavy-duty or compact machines. the tilt-back hopper and clam-shell screen cradle.

31451_11_cases.qxd 15/03/05 21:17 PM Page 384 384 Cases Dura-plast, Inc. (A): Global Account Management EXHIBIT 2 Attribute Weighting Freq Sales Calls Attribute Importance 5 Maint Agree 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Operator Training Customers Manufacturer’s Representatives Mfg Follow-up Delivery Key: 1ϭ“Not very important to the customer when making purchase decision” Rel w/Rep 5ϭ“Extremely important to the customer when making purchase decision” Tech Consul Relation w/Manf. Price Modify Equip Features Perf/Qual 0 Companies also have the choice of specialized company’s drive for customer satisfaction and total features such as low infeed heights, oversized bear- quality management in the early 1990’s, DP-A ings, integral soundproofing, auger in feed, and must now address issues related to account man- conveyor infeed. agement and market change. Many of DP-A’s larger machine segment clients now conduct business on DP International is one of the largest producers of both a domestic and international basis. Sales granulators worldwide and within the United States, efforts have required significant synchronization of DP-A has grown to be the largest supplier in unit vol- efforts between subsidiaries. In addition, under the ume of granulation equipment. Serving the entire goal of expanding profitability, management is range of companies in the plastic reclamation process, working to raise the dollar volume on individual DP-A’s installed customer account base includes over sales. Focusing on the mid- to large-size machine 6000 locations across the United States. sales efforts has resulted in a mixed response from the salesforce. The numbers, however, continue to Part of this growth comes from the addition of a grow, with DP-A projecting dollar bookings of 45% new OEM client to the DP-A portfolio. DP-A’s of the US market in 1995. strategic alliance with Fields (Powerflow) enables it to purchase and distribute up to 500 B-T-P units a year In the last year, DP-A has posted record profits, at a percentage discount. These units are sold under with an average profit margin of 9% per sale. Gross Powerflow’s nameplate. DP-A is also considering the profit, operating income, and net income informa- expansion of its OEM relationships to other major tion for 1993 and 1994 are presented in Table 1. plastics manufacturers. Both partners benefit through these expanded relationships: DP International can Competition increase market share and the OEMs can service their DP-A was one of 15 competitors in the US Market key accounts with a high quality product. which contributed to the 4500 granulators orders received overall in 1989 totaling $32.7 million and The key factors in DP-A’s 1995 $21 million sales 7000 granulators in 1994 totaling $120 million. effort include the introduction of new machines, expanded service relationships, and enhanced mar- Although DP-A is the newest competitor in the keting efforts, combined with further expansion of US granulator sales marketplace, it is currently the the OEM alliance with Powerflow. leader in volume sales, primarily through the OEM relationship with Powerflow. Before the linkage, it For Tom Parker, DP-A volume leadership is “not a reason to be complacent.” In addition to the

31451_11_cases.qxd 15/03/05 21:17 PM Page 385 Cases Dura-plast, Inc. (A): Global Account Management 385 TABLE 1 and a product manager for its B-T-P/Automation, Central/Systems and Pelletizing product groups. Dura-plast, Inc.* 1993 1994 Each product manager has an application engineer and clerical support. The company has a vice presi- Gross Profit $5,067,029 $6,995,259 dent of Sales who manages its regional sales man- Operating Income $294,289 $1,697,332 agers, parts department and service department. The Net Income $167,055 marketing group prepares their sales quotes and sup- $959,810 ports the sales group with marketing intelligence and new products. Northway recently acquired a manu- *Dura-plast, Inc. Income Statement as of December 31, facturer of screen changes and pelletizing which 1994 and 1993. seems, at least in the short run, to have negatively affected the company’s ability to support its granula- was number three in the market, driven by a strong tor sales. Northway has, however, been able to use its sales push. multi-product sales to continue as a dominant force in the Central and System markets. DP-A’s price position in relation to that of its com- petitors may hamper unit sales in some market Northway distribution efforts have been shifted segments. Some of its competitors are large conglom- from a 20-man direct salesforce to 2 regional sales erates which often use granulators as loss-leaders in managers and 18 manufacturer representative agen- negotiations to close higher dollar, turn-key system cies. Perhaps the two regional sales managers cur- orders. DP-A has traditionally had a poor record in rently cannot provide the level of service necessary acquiring these orders, which are generally multi-unit to meet customer retention requests; at any rate contracts. Northway now has the reputation of being hard to deal with and increasingly non-responsive. DP-A credits its success in the market to outper- forming competitors by delivering the highest stan- Northway historically has had a wider range of dard of customer service. While it has created the products, as compared to DP-A, because of its abili- perception of technical design superiority through ty to offer 20 machines in a market where DP-A has marketing proprietary concepts such as the “constant 3–4. Consequently DP-A has had to price aggres- flow methodology,” DP-A has traditionally viewed sively to remain competitive, especially on granulator itself as the underdog. The company continues to sales that fall into a DP-A market gap. There are resist complacency: one corporate motto states “we times, for example, when customers want machines must provide better service than our competitors; as specified for power requirements and size that lie in such, our customers are right 98% of the time.” between DP-A’s offerings. In order to get the sale, DP-A has to bid its larger machine. The market leader in dollars sold is the Northway Corporation, which is owned by the Abrahams Northway currently is not advertising aggressively. Group, a division of the German conglomerate In the past, however, it led the market in advertising Ludwig-Crow. It averages 35% gross margins on dollars spent. The parent company, the Abrahams granulators, 60% on parts/knives, and 35% on pel- Group, has a cooperative advertising strategy which letizers. Its profits last year averaged around promotes a comprehensive turn-key organization. 10%–14%. This reputation supplements Northway’s exceptional brand awareness and solid reputation. Northway also Northway has a product management organiza- runs a direct mail program to targeted acquisition tional structure with a vice president of Marketing and retention customers on a quarterly basis. TABLE 2 1989 1994 Competitor Units Unit % Dollars $ % Units Unit % Dollars $ % Northway 1200 26% $18 Million 28% 1400 20% $33.5 Mill. 28% Grindall 150 33% 16 Million 25% 1650 23% 27.5 Mill. 23% DP-A 650 14% 8.5 Million 13% 2050 28% 30 Million 25% Fields (Powerflow) 450 10% 6 Million 10% 12 Million 10% Smith & Smith 400 5 Million 9% 700 10 Million 8% 8% 600 9% 8%

31451_11_cases.qxd 15/03/05 21:17 PM Page 386 386 Cases Dura-plast, Inc. (A): Global Account Management DP-A, however, is the leading advertiser in the self-cleaning capabilities because these were not cur- North American market. It runs full-page color and rently in place at the newest Techno Plastics plant in 1⁄4-page black and white ads in five major publica- Germany. tions. It also attends 5–7 trade shows per year in order to exhibit its new products. DP-A has invested DP-A proposed to provide a “system to meet heavily in high-tech contemporary literature to com- Techno Plastics specifications,” a standard practice plement its quotations. for US bidding. Typical of DP-A’s bids to its US customers, the bid not provide specifics regarding Techno Plastics Request for Proposals each piece of individual equipment, formalized Techno Plastics, located outside of Paris, is a multi- engineering drawings, or spare part commitments. national blow molding company that specializes in the production of hardened plastic fuel tank systems In addition to the bid, the US sales executives for automobiles. Part of its expansion plan includes traveled to the Lawrenceville plant to meet with the development plan, namely, to be the largest Michel Duval, the plant manager. Scott Millar, producer of fuel tanks globally. To meet its goals, DP-A Regional Manager, and Richard Foster pre- the company decided to open a new fuel tank plant sented a sales proposal to Duval and other Techno in the US. Plastics staff. Both the presentation and bid were well received. DP International has developed a strong rela- tionship with Techno Plastics over the past 12 years September 1994. At another plastics convention in and is currently servicing Techno Plastics manufac- Paris in late September, US and European staff met in turing plants in Germany, UK, and France. Despite France for a second time with Stefan Sevan, the this relationship, Techno Plastics submitted a Techno Plastics engineer responsible for the request for proposals (RFP) to each of the major Lawrenceville, Georgia plant and Technical Director granulator producers as part of a plan to supply the for Techno Plastics’ Blow Molding Division. During plant it was building in Lawrenceville, Georgia. this meeting, Sevan and his colleague Bill Dubois were What follows is a summary and timeline of events led by Jean Handel in a discussion of the technical related to the RFP, which originated in France. specification requirements for the new plant. On the (Exhibit 3 provides an overview of organization basis of that discussion a new DP International prod- teams within the DP International and Techno uct was offered to the Techno Plastics engineers. At Plastics organizations.) the end of the meeting, Sevan requested that DP-A re-submit its quote for equipment and services, based August 1994. DP International’s US subsidiary on the new DP International machine and specifica- submitted its first quote for Techno Plastics’ tion modifications. Georgia granulator services in August of 1994. US executives visiting Europe on a planning trip were The need for outside vendor support for the new introduced to Techno Plastics personnel at a plastics offering and associated pricing of additional conveyor convention. The local French contact for Techno and blower equipment in the revised quote forced Plastics, Jean Handel, a DP France sales manager, DP-A to delay its bid resubmittal for six weeks. facilitated the introduction. In private, he explained At the end of this period, Sevan contacted DP Techno Plastics’ strategic importance to DP International’s US office regarding the quote. He International, in part due to its annual purchases of requested that it be forwarded as soon as possible. $1,000,000 in new equipment, parts and service. Additional problems surfaced, however, when Sevan contacted DP-A again, telling them he had not At the plastics convention, the US team members received the offer. Evidently it had been misdirected demonstrated several of DP International’s latest by office staff. Neither side admitted to the error. machines to Techno Plastics and began initial strat- egy discussions for the upcoming RFP response. During this period, Sevan also contacted Peter Over the next few weeks, Jean Handel followed up Olsen, Technical Director for DP International’s with information regarding the US plant’s specifica- Norwegian Headquarters team, in an attempt to tions and also provided recommendations with gain control over the sale. Following the quote’s respect to pricing. re-transmission and review, Sevan offered a tempo- rary approval to the sale. With Handel’s information, the DP-A bid was developed to mirror the specifications of Techno Richard Foster and Scott Millar traveled again Plastics’ German Plant, currently supplied by DP-G, to the Lawrenceville plant, following the third quote, with slightly higher pricing than the typical US bid. to meet with Michel Duval. Duval was very pleased These specifications included a cooling device for with DP-A following rigorous technical discussions. regrind and a conveyer system, but did not include January 1995. Notwithstanding the previous multi-quote issues, DP International seemed well

31451_11_cases.qxd 15/03/05 21:17 PM Page 387 Cases Dura-plast, Inc. (A): Global Account Management 387 Organizational Structures EXHIBIT 3 DP International Team Kovner DP International Torger Erlandsen Managing Director Peter Olsen Technical Director DP-A (Americas) DP France DP Germany DP Britain DP Asia DP Scandinavia Tom Parker Jean Handel CEO DP-A Sales Manager Richard Foster V. P. Sales Scott Miller Regional Manager Techno Plastics Team Techno Plastics Techno Plastics (USA) Techno Plastics France Techno Plastics Germany Headquarters Michel Duval Plant Manager Jean-Pierre Baran Managing Director Bill Dubois Stefan Sevan Engineering Manager Technical Director positioned to acquire Techno Plastics’ granulator order. DP-A responded by lowering its price, business. Then reports from DP International because Parker did not want to jeopardize DP-A’s European staff member visiting the Fukuma global position with Techno Plastics. To support Plastics’s trade show in Germany indicated another the relationship, Parker and Richard Foster flew to problem. The staff member had been informed by France to find out more about the French specifica- Stefan Sevan that the US subsidiary quotation was tion expectations. not adequate. The specifications had been quoted according to proposal requirements (the standard Caucusing with the French DP International sub- for project conformance), rather than to the current sidiary in Paris, a US, French, and Norwegian corpo- system in use at the Rothenburg, Germany plant. rate management team reviewed the Techno Plastics As such, the current bid would not meet all of case, preparing what they hoped would be the final Techno Plastics’ needs. bid. Although Jean Handel offered to negotiate on behalf of the US subsidiary, his offer was rejected, The bid was re-submitted according to the following what DP-A staff considered to be internal Rothenburg set-up. However, Sevan contacted the coordination errors and technical misinformation. DP International US Headquarters again, claiming that the bid still was not sufficient. Sevan encour- After lengthy intercompany caucusing, that DP-A aged Tom Parker to cut his price to ensure the and Techno Plastics executives worked through plant specifications and at least half a dozen new

31451_11_cases.qxd 15/03/05 21:17 PM Page 388 388 Cases Dura-plast, Inc. (B): Global Account Management issues developed in response to granulation require- Plastics engineers and management. Both sides were ments at the German plant. During this meeting, elated with the outcome. Sevan reassured Parker at DP International offered its final quotation, follow- the meeting saying, “I told you, I’ve always been a ing extensive technical discussions with Techno Dura-plast man.” DURA-PLAST, INC. (B): Re-examination of the bids, however, showed that GLOBAL ACCOUNT MANAGEMENT Northway’s slightly less expensive pricing did not It is June, 1995, and Tom Parker, CEO of Dura- include the same specifications as the DP-A offer. As plast, Inc. (DP-A), is reconstructing DP-A’s han- a result, the Northway package, when complete, will dling of the Techno Plastics granulation equipment actually be more expensive than the DP-A offer. order. He was surprised and extremely disappointed to learn that Techno Plastics had not selected DP-A For Tom Parker, a significant problem with the to supply granulators for their new plant. Techno Plastics bid failure revolves around the issue of marketing coordination. As a group, Dura-plast The considerable expenditure in human and cap- did not understand who was the key player in ital resources, along with meetings in both the US charge and who was the key decision maker. While and France to clarify issues related to equipment everyone intended to do the right thing, each mem- specification, time frame and bid pricing, were not ber of the DP-A team made mistakes. Parker com- to be justified by first-year earnings alone. DP-A’s mented, “When Richard and I went to France and efforts were targeted at extending the on-going DP met with Stefan Sevan and his people, he assured us International-Techno Plastics relationship in the US we had the order. We were convinced. However, we through a comprehensive order for both equipment never really had the order. Sevan may have thought and service for Techno Plastics’ new plant in he could give us the order, but he was not the deci- Lawrenceville, Georgia. The talks and the bid had sion maker. It was a nightmare . . . The only solu- been well received. It had seemed that the only for- tion I see is structured coordination among the DP mality left was the paperwork. International groups.” However, Torger Erlandsen, managing director of Global accounts are raising new issues for DP DP International Operations, recently informed International, particularly with respect to pricing, Parker that the Lawrenceville plant bid was awarded cross-subsidiary coordination, technology and mar- to Northway, a US-based granulator producer and a keting strategy. These issues were brought to a head major competitor. The news was delivered to in the Techno Plastics situation. Currently, Dura- Erlandsen by his DP France sales manager, Jean plast is trying to price at the local market, in effect, Handel. to maximize the profit potential in each subsidiary. However, there are concerns regarding this practice To make matters worse, it now seems evident as a long-term policy. that DP-A sold to the wrong decision maker, and did not offer the right equipment and price pack- Up to this point, all of Techno Plastics’ granulator age. Technically, there was no problem with the DP purchases had been through a DPI subsidiary—it was International product offering. very loyal to Dura-plast. Now, however, Northway is also threatening DPG and DP-UK because of dispar- It also appears that the final purchase decision was ities between European and US pricing. Northway’s made at the plant level in Lawrenceville by Michel inroad is a major concern because it threatens other Duval and in France by Stefan Sevan’s boss, the DP International key accounts. Techno Plastics engineer responsible for the Lawrenceville, Georgia plant, Jean-Pierre Baran. DP-A Known for his critical evaluation and analysis, had thought, that the decision would be made by Mr. Parker is committed to supporting the current DP-A’s main contact, Sevan, and his direct reports. To DP-A and DP International customer bases. He is DP-A’s surprise, management in Lawrenceville com- currently working on a plan to regain the US mented that they were more comfortable with Techno Plastics account and is outspoken regarding Northway, which “seemed more interested in their the importance of avoiding similar situations in the business and provided comprehensive information and future. He is also committed to supporting business service specifics in its bid.” They also stated that, while expansion through appropriate corporate change price was not the order winner, the Northway offer and new, viable projects. Mr. Parker wonders what was lower than the DP-A bid. is the best next step for DP-A. Source: Written by Ryan Oliver under the supervision of Professor Joe Cannon as a basis for classroom discussion. As part of the case development, firm and individual specifics have been disguised. Copyright © 1996 by the Roberto C. Goizueta Business School of Emory University. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Goizueta Business School. Reproduced March, 1996.

31451_12_glossary.qxd 15/03/05 18:31 PM Page 389 Glossary 360-degree feedback An assess- apathetics A salesperson who are bottom-up forecasting appro- ment technique that involves low on commitment to the performance assessment from organization and low on aches A forecasting approach multiple raters. involvement in his or her selling job. that consists of different meth- A assessment center Centers that ods for developing sales fore- absorption training A method offer a set of well-defined proce- of sales training that involves dures for using techniques such casts for individual accounts; furnishing trainees or sales- as group discussions, business people with materials that game simulations, presenta- these forecasts are then com- they peruse without opportu- tions, and role-playing exercises nity for immediate feedback for the purpose of employee bined by sales managers into and questioning. selection or development. territory, district, region, zone, account targeting strategy The B classification of accounts within and company forecasts. a target market into categories background investigation A ref- for the purpose of developing erence check on the job candi- breakdown approach An strategic approaches for selling date that can help verify the to each account or account true identity of the person and approach used for calculating group. possibly confirm his or her employment history. salesforce size that assumes an achieving congruence The process of matching the capabilities of behavior approach A category accurate sales forecast is avail- a sales recruit with the needs of research trying to uncover of the organization. what makes an effective leader able, which is then “broken that seeks to catalog behav- achieving realism The process of iors associated with effective down” to determine the num- giving a sales recruit an accu- leadership. rate portrayal of the sales job. ber of salespeople needed to behavioral criteria A criteria for activity-based costing (ABC) A performance evaluation that generate the forecasted level of method that allocates costs to emphasizes exactly what each individual units on the basis of salesperson does. sales. how the units actually expend or cause these costs. behavioral simulations A method business consultant A role the of sales training in which trainees adaptive selling The ability of a portray specified roles in staged salesperson plays in consulta- salesperson to alter their sales situations. messages and behaviors during tive selling where he or she a sales presentation or as they behaviorally anchored rating encounter different sales situa- scales (BARS) A performance uses internal and external tions and different customers. evaluation method that links salesperson behaviors with spe- (outside the sales organiza- AIDA An acronym for the various cific results. mental states the salesperson tion) sources to become must lead their customers behavior-based perspective A through when using mental perspective that incorporates an expert on the customer’s states selling: attention, inter- complex and often subjective est, desire, and action. assessments of salesperson business. This role also characteristics and behaviors amoral management A form of with considerable monitoring involves educating customers management in which man- and directing of salesperson agement is neither moral nor behavior by sales managers. on the sales firm’s prod- immoral, but decisions lie out- side the sphere to which moral benchmarking A ongoing meas- ucts and how these products judgments apply. urement and analysis process that compares an organization’s compare with competitive anticipation The process of sales current operating practices with managers extending their view the “best practices” used by offerings. into the future to determine world-class organizations. potential problems. business marketing A marketing situation in which business is the target market. business strategy An organiza- tional strategy level that must be developed for each strate- gic business unit (SBU) in the corporate family, defin- ing how that SBU plans to compete effectively within its industry. business unit portfolio A firm’s portfolio of their SBUs. buying center The many indi- viduals from a firm who par- ticipate in the purchasing process. buying needs Buying behavior that can be personal and organiza- tional. The organizational pur- chasing process is meant to satisfy the needs of the organiza- tion; however, the buying center 389

31451_12_glossary.qxd 15/03/05 18:31 PM Page 390 390 Glossary is made up of individuals who can remove rewards and pro- consultative selling The process of want to satisfy individual needs. vide punishment to affect helping customers reach their Buying Power Index (BPI) A behavior. strategic goals by using the market factor calculated for cognitive feedback Information products, services, and expertise different areas by the equation about how and why the of the sales organization. BPI ϭ (5I ϩ 2P ϩ 3R) Ϭ 10 desired outcome is achieved. where I ϭ Percentage of U.S. combination sales job A sales job contingency approach A category disposable personal income in in which the salesperson per- of research trying to uncover the area, P ϭ Percentage of forms multiple types of sales what makes an effective leader U.S. population in the area, jobs within the framework of a that recognizes the importance and R ϭ Percentage of U.S. single position. of the interaction between situ- retail sales in the area. commission base Commission ational factors and other factors. buying process Organizational pay based on sales volume or buyer behavior that consists of some measure of profitability. continued affirmation An exam- several phases: Phase 1 is recog- commission payout event ple of stimulus response selling nition of problem or need; Commission pay that is given in which a series of questions or Phase 2 is determination of when the order is confirmed, statements furnished by the the characteristics of the item shipped, billed, paid for, or salesperson is designed to con- and the quantity needed; Phase some combination of these dition the prospective buyer to 3 is description of the char- events. answering “yes” time after acteristics of the item and commission rate Commission pay time, until, it is hoped, he or quantity needed; Phase 4 is in which a percentage of the she will be inclined to say “yes” search for and qualification of commission earned is paid to to the entire sales proposition. potential sources; Phase 5 is the salesperson. acquisition and analysis of pro- commission splits Commission contribution approach An posals; Phase 6 is evaluation pay that is divided between approach to determining an of proposals and selection of two or more salespeople or organization’s profitability that suppliers; Phase 7 is selection of between salespeople and the only uses direct costs, not indi- an order routine; Phase 8 employer. rect or shared costs; net contri- is performance feedback and communication mechanisms bution is calculated from this evaluation. Communication leadership approach. processes that include letter C and memo writing, report corporate citizens A salesperson writing, and the use of e-mail. who is highly committed to canned sales presentation A compensation rewards Organiza- the organization, but who do structured “script” used by tional rewards that are given in not strongly identify with his salespeople to guide them in return for acceptable perform- or her selling role. making sales. ance or effort. competitive knowledge Know- corporate mission statement A centralization The degree to ledge of a competitive prod- statement that provides direc- which important decisions and uct’s strengths and weaknesses tion for strategy development tasks in an organization are in the market. and execution throughout the performed at higher levels in computerized matchmaking The organization. the management hierarchy. process of sales recruiters and recruitees using computer tech- corporate strategy An organiza- classroom/conference training nology such as company and tional strategy level that consists Sales training that features lec- career services Web sites and of decisions that determine the tures, demonstrations, and automated application services mission, business portfolio, and group discussion with expert to screen each other and match future growth directions for the trainers serving as instructors. up specific qualifications. entire corporate entity. conflicts of interest Job conflicts coaching A leadership function that place the salesperson in a cost analysis The assessment of in which a sales manager con- position that could violate cus- costs incurred by the sales centrates on continuous devel- tomer demands to benefit the organization to generate the opment of salespeople through company, or that could violate achieved levels of sales. supervisory feedback and role company policy to benefit cus- modeling. tomer demands. current spendable income Money constant rate A commission rate provided in the short term that code of ethics A written code of in which the salesperson is paid allows salespeople to pay for ethical business behavior that a constant percentage of what desired goods and services. members of an association are he or she sells. urged to adhere to. customer knowledge Information relating to customers’ needs, coercive power Power in an inter- buying motives, buying proce- personal relationship that is dures, and personalities. based on a belief that one party customer relationship manage- ment (CRM) A business strategy to select and manage the most valuable customer relationships. It requires a

31451_12_glossary.qxd 15/03/05 18:31 PM Page 391 Glossary 391 customer-centric business E basis for making sales manage- philosophy and culture to sup- ment decisions. port effective marketing, sales, economic stimuli Something that full cost approach An approach and service processes. stimulates or incites activity in that deals with shared costs in customer survey A survey the economy. an organization by allocating intended to define customer the shared costs to individual expectations. effectiveness index A type of units based on some type of sales analysis that can be com- cost allocation procedure that D puted by dividing actual sales results in a net profit figure. results by the sales quota and functional specialization Term decision models An analytical multiplying by 100. used to describe a salesforce in approach to the allocation of which salespeople specialize in selling effort in which mathe- ego drive An indication of the a required number of selling matical formulations are used degree of determination a per- activities. to achieve the highest level of son has to achieve goals and sales for any given number of overcome obstacles in striving G sales calls and to continue for success. increasing sales calls until their generic business strategies The marginal costs equal their mar- ego strength The degree to which ginal returns. a person is able to achieve an most popular of classification approximation of inner drives. decomposition methods Method schemes used in developing a for developing company fore- employee referral programs casts by breaking down previous Interorganizational programs business unit strategy. These company sales data into four in which existing employees are major components: trend, cycle, used as sources for recruiting generic strategies are low cost, seasonal, and erratic events. new salespeople because they have a good understanding of differentiation, or niche. Delphi method A structured type the type of person sought for of jury of executive opinion a sales position. geographic specialization Term method that involves selection of a panel of managers from enthusiasm A strong excitement used to describe a salesforce within the firm who submit of feeling. Salespeople should anonymous forecasts for each have an enthusiastic attitude in whose salespeople are typically account. a general sense and a special enthusiasm for selling. assigned a geographic area and detailer A salesperson in the phar- maceutical industry working at expense account padding Expense are responsible for all selling the physician level to furnish reimbursement in which a valuable information regarding salesperson seeks reimburse- activities to all accounts within the capabilities and limitations ment for ineligible or fictional of medications in an attempt to expenses. the assigned area. get the physician to prescribe their product. expert power Power in an inter- global account management personal relationship that is diagnostic skills Skills sales man- based on the belief that a per- (GAM) A type of major agers have to fully examine the son has valuable knowledge or root cause of a problem. skills in a given area. account organization that differentiation strategy A type exponential smoothing A type of serves the needs of major cus- of generic business strategy. It moving averages method that involves the creation of some- weights company sales in the tomers with locations around thing perceived industrywide most recent year differently than as being unique and provides company sales in the past years. the world. insulation against competitive rivalry because of brand loyalty extensive problem solving The government organizations and resulting lower sensitivity lengthy decision-making pro- to price. cess to collect and evaluate Federal, state, and local gov- purchase information in new diffusion of innovation The task buying situations. ernment agencies. process whereby new prod- ucts, services, and ideas are extrinsically motivated Motiva- graphic rating/checklist methods distributed to the members of tion occurring when salespeople society. are rewarded by others. Approaches in which salespeo- direction Salespeople choose F ple are evaluated by using some where their efforts will be spent among various job financial compensation mix The type of performance evaluation activities. relative amounts to be paid in salary, commission, and bonus. form. forecast A prediction for a future H period; forecasts provide the hierarchical sales analysis A way to identify problem areas in achieving sales effectiveness that consists of evaluating sales results throughout the sales organization from a top-down perspective. hybrid sales organization A sales organization structure that incorporates several of the basic structural types; the objective of a hybrid structure is to capi- talize on the advantages of each type while minimizing the dis- advantages.

31451_12_glossary.qxd 15/03/05 18:31 PM Page 392 392 Glossary I integrative meeting A sales knowledge to forecast sales to meeting in which several sales individual accounts. immoral management A form of and sales management func- management in which man- tions are achieved. L agement decisions, actions, and behavior imply a positive intensity The amount of mental Leader–Member Exchange and active opposition to what and physical effort put forth by is ethical. the salesperson. (LMX) model A sales leader- income statement analysis A type intensive interviews Interviews ship model that focuses on the of profitability analysis that conducted to get an in-depth studies the different levels in a look at a job candidate. salesperson–sales manager dyad sales organization and different types of sales. interpersonal communication as a reciprocal influence process. skills Skills that include listen- incremental approach An ing and questioning. leadership The use of influence approach used for calculating salesforce size that compares interviewer bias Something that with other people through com- the marginal profit contribu- occurs when an interviewer tion with the marginal selling allows personal opinions, atti- munication processes to attain costs for each incremental tudes, and beliefs influence salesperson. judgments about a job candi- specific goals and objectives. date. independent representatives legitimate power Power in an Independent sales organizations intrinsically motivated Motiva- that sell complementary, but tion occurring when salespeo- interpersonal relationship that noncompeting, products from ple find their jobs inherently different manufacturers; also rewarding. is associated with the right to called manufacturers’ represen- tatives or reps. J be a leader, usually as a result industrial distributors Sales job analysis A investigation of the of designated organizational channel middlemen who take task, duties, and responsibili- title to the goods they market ties of the sales job. roles. to end users. job analysis The process of inves- limited problem solving The influence strategies A type of tigating the tasks, duties, and communication strategy sales responsibilities of the job. decision-making process that managers can use on their salesforce that can be based on job application form A form job occurs in a modified rebuy threats, promises, persuasion, applicants fill out designed to relationships, and manipulation. gather all pertinent informa- buying situation that involves tion and exclude unnecessary initial interviews Brief interviews information. collecting additional informa- used to screen job applicants in order to replace a review of job description A written sum- tion and making a change resumes or application forms. mary of the job. when purchasing a replace- initiation to task The degree to job involvement A strong attach- which a sales trainee feels com- ment by the salesperson to the ment product. petent and accepted as a work- job itself. ing partner. line sales management Sales man- job preview The process of giving inside sales Nonretail salespeople a sales recruit an idea of what agement position that is part of who remain in their employer’s the sales job constitutes and place of business while dealing how the job is performed. the direct management hierar- with customers. job qualifications The aptitude, chy within the sales organiza- institutional stars A salesperson skills, knowledge, personal who is highly committed to traits, and willingness to accept tion. Line sales managers have the organization and highly occupational conditions neces- involved in his or her selling sary to perform the job. direct responsibility for a certain job. job rotation The exposure of the number of subordinates and institutions Public and private sales trainee to different jobs. organizations. report directly to management job satisfaction A salesperson’s integrated marketing communi- happiness with his or her job. at the next highest level in the cation (IMC) The strategic integration of multiple market- job security Job reward in which sales organization. ing communication tools in the salesperson feels com- the most effective and efficient fortable that his or her job lone wolf A salesperson who is manner. will last. often enthusiastic about his or jury of executive opinion method A bottom-up forecasting her selling job (high involve- approach in which the execu- tives of the firm use their expert ment), but who is not bound to his or her organization (low commitment). long-term ally A role the salesper- son plays in consultative selling where he or she supports the customer, even when an imme- diate sale is not expected. low-cost strategy A type of generic business strategy. It involves aggressive construc- tion of efficient-scale facilities, vigorous pursuit of cost reduc- tions from experience, tight cost, and overhead control, usually associated with high relative market share. M major account organization A type of market specialization based on account size and

31451_12_glossary.qxd 15/03/05 18:31 PM Page 393 Glossary 393 complexity; an organization mental states selling An approach needs assessment A process that handles major accounts, to personal selling that assumes or large, important accounts. that the buying process for performed to compare the major account selling The devel- most buyers is essentially iden- opment of specific programs to tical and that buyers can be specific performance-related serve a firm’s largest and most led through certain mental important accounts. states, or steps, in the buying skills, attitudes, perceptions, management by objectives process; also called the formula (MBO) A performance eval- approach. and behaviors required for uation method that involves the (1) mutual setting of well- mentor A coach or sales trainer salesforce success with the defined and measurable goals who observes and informs sales within a specified time period, trainees on how to improve state of readiness of the sales- (2) managing activities within their sales performances. the specified time period force. toward the accomplishment misrepresentation Something of the stated objectives, and that occurs when incorrect new task buying situation A sit- (3) appraisal of performance information is given about a against objectives. job to entice a sales recruit into uation in which an organiza- management levels The number taking that job. of different hierarchical levels tion is purchasing a product of sales management within missionary salespeople Sales- the organization. people who usually work for a for the first time. manipulation An influence manufacturer but may also be strategy that involves sales found working for brokers niche strategy A type of generic managers controlling circum- and manufacturing representa- stances to influence the target tives. Sales missionaries are business strategy. It involves of influence. expected to “spread the word” market bonus A one-time pay- to convert noncustomers to service of a particular target ment given upon hiring that customers. recognizes an existing imbal- market, with each functional ance in the supply and demand modified rebuy buying situation in a given labor market to A situation that exists when an policy developed with this tar- entice a sales recruit to join the account has previously pur- organization. chased and used the product. get market in mind. Although market factor method Method for breaking down company moral management A form of market share in the industry forecasts that involves iden- management in which man- tifying one or more factors agement activity conforms to a might be low, the firm domi- that are related to sales at standard of ethical, or right, the zone, region, district, ter- behavior. nates a segment within the ritory, or account levels and using these factors to break motivation A measurement of an industry. down the overall company individual’s intensity, persist- forecast into forecasts at these ence, and direction. noncompensation rewards levels. market specialization Term used moving averages Method for Organizational rewards that to describe a salesforce that developing company forecasts assigns salespeople specific by calculating the average com- include factors related to the types of customers and are pany sales for previous years. required to satisfy all needs of work situation and well-being these customers. multilevel selling A variation of marketing mix A marketing offer team selling in which the of each salesperson. designed to appeal to a defined emphasis is to match functional target market. areas between the buying and nonfinancial compensation Job marketing strategy An organi- selling firms. zational strategy level that rewards that include career includes the selection of tar- N get market segments and the advancement through promo- development of a marketing national account management mix to serve each target (NAM) A type of major tion, sense of accomplishment market. account organization that focuses on meeting the needs on the job, opportunities of specific accounts with multi- ple locations throughout a large for personal growth, recog- region or entire country. nition of achievement, and job need satisfaction selling An approach to selling based on security. the notion that the customer is buying to satisfy a particular nonrole act An unethical act that need or set of needs. would not related to a sales man- ager’s or a salesperson’s specific job role but rather is a calculated attempt to gain something at the expense of the company. O objective and task method A type of zero-based budgeting in which each sales manager pre- pares a separate budget request that stipulates the objectives achieved, the tasks required to achieve these objectives, and the costs associated with per- forming the necessary tasks. observation The process in which sales managers monitor their salespeople during field selling activities. on-the-job training (OJT) Sales training that puts the trainee into actual work circumstances under the observant eye of a supportive mentor or sales manager.

31451_12_glossary.qxd 15/03/05 18:31 PM Page 394 394 Glossary opportunities for personal evaluation of particular tasks or charged by the agency that is growth Job reward such as skills of the salesforce. college tuition reimbursement persistence The salesperson’s paid by the employer or the programs and seminars and choice to expend effort over workshops on such topics as time, especially when faced with job seeker, as established by physical fitness, stress reduc- adverse conditions. tion, and personal financial personal selling Personal com- contract before the agency planning. munication with an audience through paid personnel of an begins work for either party. opportunity for promotion Job organization or its agents in reward in which a salesperson such a way that the audience problem-solving selling An exten- obtains a higher job position perceives the communicator’s on the organizational chain. organization as being the sion of need satisfaction selling source of the message. order-getters Salespeople who persuasion An influence strategy that goes beyond identifying actively seek orders, usually in a in which sales managers use highly competitive environment. expert and referent power to needs to developing alternative imply that the target of influ- order-takers Salespeople who spe- ence must first change his or solutions for satisfying these cialize in maintaining existing her attitudes and intentions to business. produce a subsequent change needs. in behavior. organizational commitment A pioneers Salespeople who are product knowledge Knowledge psychological bond to an constantly involved with either organization or a bond new products, new customers, about a product’s benefits, demonstrated through behav- or both. Their task requires ior over time. creative selling and the ability applications, competitive to counter the resistance to original equipment manufacturers change that will likely be pres- strengths, and limitations. (OEM) Organizations that ent in prospective customers. purchase products to incorpo- planned earnings An advantage product specialization Term rate into products. of fixed salaries in which man- agement can predict easily used to describe a salesforce outcome bias The prejudice that what individuals will be paid. occurs when the outcome of a planning activities The first step in that assigns salespeople selling decision rather than the appro- the salesperson recruitment and priateness of the decision influ- selection process; they include responsibility for specific prod- ences an evaluator’s ratings. (1) conducting a job analysis, (2) establishing job qualifica- ucts or product lines. outcome feedback Information tions, (3) completing a writ- about whether a desired out- ten job description, (4) setting productivity analysis A form of come is achieved. recruitment and selection objectives, and (5) developing analysis that is measured in outcome-based perspective A per- a recruitment and selection spective that focuses on objec- strategy. terms of ratios between out- tive measures of results with planning and control unit The little monitoring or directing of first step in territory design; an puts and inputs. salesperson behavior by sales entity that is smaller than a ter- managers. ritory. professional development criteria portfolio models An analytical P approach to the allocation of A criteria for performance eval- selling effort where each percentage of sales method A account served by a firm is con- uation that assesses improve- method of cost analysis that sidered as part of an overall calculates an expenditure level portfolio of accounts; therefore, ments in certain characteristics for each category by multiply- accounts within the portfolio ing an expenditure percentage represent different situations of salespeople that are related to times forecasted sales. and receive different levels of selling effort attention. successful performance in the performance bonus A type of private employment agency An current spendable income used external source for recruiting sales job. to direct effort toward relative- salespeople in which a fee is ly short-term objectives. professional societies Professional performance management An organizations sales executives approach that involves sales managers and salespeople join to establish a network of working together on setting goals, giving feedback, review- colleagues who have common ing, and rewarding. interests. performance testing A method used to determine sales train- profitability analysis An analysis ing needs that specifies the that combines sales and cost data to produce a measure of how profitable an organization is. profitability criteria A criteria for performance evaluation that assesses the profitability of sales. progressive rate A commission rate in which the percentage a salesperson is paid increases as he or she reaches prespecified selling targets. promises An influence strategy in which sales managers can use reward power to achieve desired behaviors. R ranking methods Approaches in which salespeople are evaluated according to a relative per- formance on each performance criterion rather than evaluating them against a set of perform- ance criteria.

31451_12_glossary.qxd 15/03/05 18:31 PM Page 395 Glossary 395 recognition Job reward that can be tional rewards to direct sales- to provide direction for informal such as “nice job” people’s behavior toward the improved performance and pre- accolades, or formal such as attainment of organizational scription for needed changes. group competition or individual objectives. sales process A series of inter- accomplishments representing role definition A salesperson’s related steps beginning with improved performance. understanding of what tasks locating qualified prospective are to be performed, what the customers. From there, the recruitment The second step in priorities of the tasks are, and salesperson plans the sales pres- the salesperson recruitment how time should be allocated entation, makes an appointment and selection process; it is the among the tasks. to see the customer, completes procedure of locating a suffi- role distortion act An unethical the sale, and performs post-sale cient number of prospective act that may put the individual activities. job applicants. at risk, presumably to benefit sales productivity The ratio of the company and the individ- sales generated to selling effort recruitment and selection strategy ual’s own job objectives. used. A plan formulated after the role failure act An unethical act sales professionalism A cus- recruitment and selection objec- that involves a failure to per- tomer-oriented approach that tive have been set that requires form job responsibilities. uses truthful, nonmanipulative the sales manager to consider role playing A method of sales tactics to satisfy the long-term the scope and timing of recruit- training in which one trainee needs of both the customer ment and selection activities. plays the role of the salesper- and the selling firm. son and another trainee acts as sales quota A reasonable sales referent power Power in an inter- the buyer; role playing is objective for a territory, dis- personal relationship that is videotaped or performed live trict, region, or zone. based on the attractiveness of for a group of observers who sales support personnel A firm’s one party to another. then critique the performance. personnel whose primary routinized response behavior responsibility is dissemination regressive rate A commission rate The process in which a buyer is of information and perform- in which the percentage a merely reordering from the ance of other activities designed salesperson is paid declines at current supplier. to stimulate sales. some predetermined point. sales techniques Fundamental S procedures salespeople can fol- relationship strategy A determina- low to make sales. tion of the type of relationship salary compression A narrow sales trainer A mentor for sales- to be developed with different range of salaries in a salesforce. people in their organization account groups. who provides advice and infor- salary plus incentive Payment mation for improving sales per- relationships An influence strategy plans for salespeople that feature formance. containing two types of influ- some combination of salary, sales training media Communi- ence processes: one based on commission, and bonus pay. cations and computer technolo- referent power that builds on gy used in the sales training personal friendships, or feelings sales analysis An important ele- process. of trust, admiration, or respect; ment in evaluating sales organ- sales training objectives Objectives the other based on legitimate ization effectiveness in which sales managers set during sales power over another party by the organization studies its training that force the manager virtue of position in the organi- sales progress. to define the reasonable expecta- zational hierarchy. tions of sales training. sales channel strategy The process salesforce audit A systematic, resellers Organizations that pur- of ensuring that accounts diagnostic, prescriptive tool chase products to sell. receive selling effort coverage in that can be employed on a a effective and efficient manner. periodic basis to identify and results criteria A criteria for address sales department prob- performance evaluation that sales contests Temporary pro- lems and to prevent or reduce assesses the results achieved by grams that offer financial and/ the impact of future problems. salespeople. or nonfinancial rewards for salesforce composite method A accomplishing specified, usually bottom-up forecasting approach return on assets managed short-term, objectives. that involves various procedures (ROAM) A calculation that by which salespeople provide can extend the income state- sales expenses Expenses incurred forecasts for their assigned ment analysis to include asset while on the job that include accounts, typically on specially investment considerations. travel, lodging, meals, entertain- designed forms or electronically ment of customers, telephone, via computer. revenue producers Something and personal entertainment. that brings in revenue or income to a firm or company. sales organization audit A com- prehensive, systematic, diagnos- reward power Power in an inter- tic, and prescriptive tool used to personal relationship that assess the adequacy of a firm’s stems from the ability of one sales management process and party to reward the other party for a designated action. reward system management The selection and use of organiza-

31451_12_glossary.qxd 15/03/05 18:31 PM Page 396 396 Glossary salesforce deployment Important ization concentrate on per- vidual accounts about their sales management decisions forming some of the required purchasing plans for a future involved in allocating selling activities to the exclusion of period and translates these res- effort, determining salesforce other tasks. ponses into account forecasts. size, and designing territories. staff sales management Sales management position that does T salesforce socialization The not directly manage people, process by which salespeople but is responsible for certain target market A specific market acquire the knowledge, skills, functions (e.g., recruiting and segment to be served. and values essential to perform selecting, training) and are their jobs. not directly involved in sales- task-specific self-esteem The generating activities. feeling salespeople have about salesforce survey A survey in stimulus response selling An themselves relating to perform- which sales managers monitor approach to selling in which the ing and accomplishing job- their salesforce in an attempt key idea is that various stimuli related duties; high levels to isolate sales training needs. can elicit predictable responses have been linked to improved from customers. Salespeople performance and job satis- seek feedback One way sales furnish the stimuli from a reper- faction. managers can improve antici- toire of words and actions pation of potential problems designed to produce the desired team selling The use of multiple- by interacting with customers, response. person sales teams in dealing salespeople, and other impor- straight commission A form with multiple-person buying tant sources regularly. of payment in which salespeo- centers of their accounts. ple are paid by commission selection The third step in the only. technical support sales-people salesperson recruitment and straight rebuy buying situation Technical specialist who may selection process; it is the A situation wherein an account assist in design and specification process of choosing which can- has considerable experience in processes, installation of equip- didates will be offered the job. using the product and is satis- ment, training of the customer’s fied with the current purchase employees, and follow-up serv- self-efficacy The strong belief that arrangements. ice of a technical nature. success will occur in the job. straight salary A form of pay- ment in which salespeople are telemarketing A sales channel that self-management An individual’s paid one set salary. consists of using the telephone effort to control certain aspects strategic business unit (SBU) A as a means for customer contact of his or her decision making single product or brand, a line to perform some of or all the and behavior. of products, or a mix of related activities required to develop products that meets a common and maintain account relation- selling budget Corporate resources market need or a group of ships; also called telesales. earmarked for personal selling related needs, and the unit’s expenses for a designated period. management is responsible for territory A designated area that all (or most) of the basic busi- consists of whatever specific selling strategy The planned sell- ness functions. accounts are assigned to a spe- ing approach for each relation- strategic orchestrator A role cific salesperson. ship strategy. the salesperson plays in con- sultative selling in which he threats An influence strategy in sense of accomplishment Job or she arranges the use of the which a manager might spec- reward that emanates from the sales organization’s resources ify a desired behavior and salesperson’s psyche. in an effort to satisfy the the punishment that will fol- customer. low if the behavior is not service motivation A strong stress interview An interview achieved. desire to provide service to the designed to put job candidates customer. Service motivation under extreme, unexpected, time and territory management comes from desiring the psychological duress for the (TTM) Salesperson’s training approval of others. purpose of seeing how they to teach salespeople how to use react. time and efforts for maximum sexual harassment Lewd remarks, supervision The day-to-day con- work efficiency. physical and visual actions, and trol of the salesforce under sexual innuendos that make routine operating conditions. top-down forecasting approaches individuals feel uncomfortable. survey of buyer intentions A forecasting approach that method A bottom-up forecast- consists of different methods single factor models An analytical ing approach that asks indi- for developing company fore- approach to the allocation of casts at the business unit level selling effort in which the typi- that are then broken down by cal procedure is to classify all sales managers into zone, accounts on one factor and region, district, territory, and then to assign all accounts in account forecasts. the same category the same number of sales calls. total quality management (TQM) An approach that incorporates span of control The number of a strong customer orientation, individuals who report to each a team-oriented corporate sales manager. specialization A concept in which certain individuals in an organ-

31451_12_glossary.qxd 15/03/05 18:31 PM Page 397 Glossary 397 culture, and the use of statis- that attempts to determine the W tical methods to analyze and personality traits of an effective improve all business processes leader. workload approach An approach including sales management. transformational leadership A used for calculating salesforce trade shows A typically industry- sales leadership model in which size that first determines how sponsored event in which com- the leaders are charismatic, much selling effort is needed to panies use a booth to display inspirational, and driven by a cover the firm’s market ade- products and services to sense of mission. quately and then calculates the potential and existing cus- number of salespeople required tomers. U to provide this amount of sell- trait approach A category of ing effort. research trying to uncover users Organizations that purchase what makes an effective leader products and services to produce other products and services.

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31451_13_notes.qxd 15/03/05 18:32 PM Page 399 notes Module 1 17Kate Fitzgerald, “An Automation Breakthrough,” Sales and Field Force Automation (April 1999): 32. 1Henry Canaday, “How Did You Become a Sales Manager?” Selling Power (June 2004): 16–17. 18Henry Canaday, “Go Forth—With Care,” Selling Power (Special Edition 2003): 8–11. 2Canaday, “How Did You Become a Sales Manager?” 15–16. 19Don Labriola, “Videoconferencing in Action,” Sales and Field Force Automation (September 1999): 74. 3Lain Chroust Ehmann, “Secrets of the Sales Giants,” Selling Power (March 2003): 53. 20Melinda Ligos, “Point, Click, & Sell,” Sales & Marketing Management (May 1999): 51. 4Henry Canaday, “Are National Accounts Part of Your Company’s Sales Strategy?” Selling Power (September 21David W. Cravens, “The Changing Role of the Sales 2004): 14–15. Force,” Marketing Management (Fall 1995): 54; and Thomas N. Ingram, Raymond W. LaForge, and 5Bennett Voyles, “The Will to Survive,” Sales & Thomas W. Leigh, “Selling in the New Millennium: Marketing Management (May 2002): 46. A Joint Agenda,” Industrial Marketing Management 31 (2002): 559–567. 6Canaday, “Are National Accounts Part of Your Company’s Sales Strategy?” 19. 22Adapted from William Keenan, Jr., “The Man in the Mirror,” Sales & Marketing Management (May 7Karen E. Starr, “CEM Solution Keeps Sales Force in 1995): 95. Tune,” Selling Power (July/August 2001): 21. 23Gabrielle Birkner, “Wish List,” Sales & Marketing 8Erika Rasmusson, “Best at Customer Loyalty,” Sales & Management (September 2000): 65–70. Marketing Management (July 2000): 76. 24“Top Reasons for Voluntary Turnover,” Sales & 9Andy Cohen, “Making Salespeople Smarter,” Sales & Marketing Management (June 1999): 14. Marketing Management (July 2000): 74. 25Tricia Campbell, “Death of a Salesman’s Loyalty,” 10Thomas W. Leigh and Greg W. Marshall, “Research Sales & Marketing Management (August 1999): 13. Priorities in Sales Strategy and Performance,” Journal of Personal Selling & Sales Management (Spring 26“Sales Execs Need to Lead as Well as Manage,” 2001): 83–94; and Thomas N. Ingram, Raymond W. Selling Power (May 1999): 103. LaForge, and Thomas W. Leigh, “Selling in the New Millennium: A Joint Agenda,” Industrial Marketing 27“The Right Stuff,” Sales & Marketing Management Management 31, no. 6 (October 2002): 559–567. (January 1999): 15. 11Michele Marchetti, “Home-Style Selling,” Sales & 28Henry Canaday, “Where Does the Time Go?” Marketing Management (August 1999): 16. Selling Power (October 2003): 19. 12Ken Liebeskind, “Guiding Light,” Selling Power 29Adapted from Michael H. Morris, Minet (March 1999): 15. Schindehutte, and Raymond W. LaForge, “Entrepreneurial Marketing: A Construct for 13Ken Liebeskind, “Service in Overdrive,” Selling Power Integrating Emerging Entrepreneurship & Marketing (March 1999): 18. Perspectives,” Journal of Marketing Theory and Practice (Fall 2002): 119. 14From “Selling Teams: A Conceptual Framework and Research Agenda.” Copyright © 1994 by Pi Sigma 30Michael Weinreb, “Power of the People,” Sales & Epsilon. From Journal of Personal Selling & Sales Marketing Management (April 2003): 30–35. Management 15, no. 1 (Summer 1994): 23. Reprinted with permission of M. E. Sharpe, Inc. 31“SMM’s Best of Sales & Marketing,” Sales & Marketing Management (September 2001): 32. 15Tricia Campbell, “Getting Top Executives to Sell,” Sales & Marketing Management (October 32Robert J. Kelly, “Tomorrow’s Labor Pool,” Sales & 1998): 32. Marketing Management (March 1994): 34. 16Linda Strnad, “Top of Their Class,” Sales & 33Chris Sandlund, “There’s a New Face to America,” Marketing Management (February 2004): 54–56. Success (April 1999): 38. 399

31451_13_notes.qxd 15/03/05 18:32 PM Page 400 400 Notes 34Ellen Neuborne, “Bridging the Culture Gap,” Sales & 11Jon M. Hawes, Anne K. Rich, and Scott Widmier, Marketing Management (July 2003): 22. “Assessing the Development of the Sales Profession,” Journal of Personal Selling & Sales Management 24 35This section synthesizes information provided in (Winter 2004): 27–38. Henry Canaday, “A New Vision of Change,” Selling Power (July/August 2001): 61–68; Erin Strout, “Fast 12Synthesized from Thomas N. Ingram, “Relationship Forward,” Sales & Marketing Management (December Selling: Moving from Rhetoric to Reality,” Mid- 2001): 37–43; Andy Cohen, “The Traits of Great Sales American Journal of Business 11 (Spring 1996): 5; Forces,” Sales & Marketing Management (October David W. Cravens, Emin Babakus, Ken Grant, Thomas 2000): 67–72; Lisa Gschwandtner, “What Makes an N. Ingram, and Raymond W. LaForge, “Removing Ideal Sales Manager,” Selling Power (June 2001): 52–59; Sales Force Performance Hurdles,” Journal of Business Bernard L. Rosenbaum, “What You Need for Success in and Industrial Marketing 9, no. 3 (1994): 19; Eli the 21st Century,” Selling (November 1999): 8–9. Jones, Steven P. Brown, Andris A. Zoltners, and Barton A. Weitz, “The Changing Environment of Selling and 36Cohen, “The Traits of Great Sales Forces,” 72. Sales Management,” Journal of Personal Selling & Sales Management (forthcoming 2005). 37Benson Smith and Tony Rutigliano, “Building a World-Class Salesforce,” http://www.destinationcrm. 13“Best Buy Accelerates Customer Centricity com. Accessed 3/8/02. Transformation,” press release dated May 3, 2004, from www.bestbuy.com. 38Cohen, “The Traits of Great Sales Forces,” 70. 14Neil Rackham and John DeVincentis, Rethinking 39Cohen, “The Traits of Great Sales Forces,” 69. the Sales Force (New York: McGraw-Hill, 1999): 1–28. 40Maryann Hammers and Gerhard Gschwandtner, “Tap into the 7 Qualities of the Best Sales Managers,” 15Robert F. Gwinner, “Base Theory in the Formulation Selling Power (May 2004): 60–65. of Sales Strategy,” MSU Business Topics (Autumn 1968): 37. Module 2 16Ramon A. Avila, Thomas N. Ingram, Raymond W. 1Marjorie J. Caballero, Roger A. Dickinson, and Dabney LaForge, and Michael R. Williams, The Professional Townsend, “Aristotle and Personal Selling,” Journal of Selling Skills Workbook (Fort Worth, TX: The Dryden Personal Selling & Sales Management 4 (May 1984): 13. Press, 1996): 20. 2William T. Kelley, “The Development of Early Thought 17Michael Bruce, “How to Get Better Sales Talent in Marketing,” in Salesmanship: Selected Readings, ed. Through State-of-the-Art Advertising,” Personal Selling John M. Rathmell (Homewood, IL: Irwin, 1969): 3. Power 13 (March 1993): 46–47. 3Thomas L. Powers, Warren S. Martin, Hugh Rushing, 18Gina Rollins, “This Thing Will Sell Itself !” Selling and Scott Daniels, “Selling before 1900: A Historical Power (June 2004): 69–71. Perspective,” Journal of Personal Selling & Sales Management 7 (November 1987): 5. For additional 19This section on consultative selling is based on review of personal selling from 1600 to the present era, Kevin J. Corcoran, Laura K. Petersen, Daniel B. see Robert Desman and Terry E. Powell, “Personal Baitch, and Mark F. Barrett, High Performance Sales Selling: Chicken or Egg,” in Proceedings, 13th Annual Organizations (Chicago: Irwin, 1995): 44. Conference of the Academy of Marketing Science, ed. Jon M. Hawes (Orlando, FL: 1989). 20Steve Atlas, “Deliver Quality at Every Step,” Selling Power (June 2004): 40. 4Michael Bell, The Saleman in the Field (Geneva: International Labour Office, 1980): 1. 21Ibid., 42. 5Stanley C. Hollander, “Anti-Salesman Ordinances of 22Jon M. Hawes, Kenneth E. Mast, and John E. Swan, the Mid-19th Century,” in Salesmanship: Selected “Trust Earning Perceptions of Sellers and Buyers,” Readings, ed. John M. Rathmell (Homewood, IL: Journal of Personal Selling & Sales Management 9 Irwin, 1969): 9. (Spring 1989): 1. 6Ibid., 10. 23Interview by the authors with Blake Conrad, sales representative with Centurion Specialty Care. 7Jon M. Hawes, “Leaders in Selling and Sales Management,” Journal of Personal Selling & Sales Module 2 Appendix Management 5 (November 1985): 60. 1Occupational Outlook Handbook, 2004–05 ed. 8Charles W. Hoyt, Scientific Sales Management (New (Washington, D.C.: U.S. Department of Labor, 2004); Haven, CT: George W. Woolson and Co., 1913): 3. and U.S. Department of Labor, Bureau of Labor Statistics, “Occupational Employment Projections to 9Ibid., 4. 2012,” Monthly Labor Review (February 2004): Table 21. 10Edward C. Bursk, “Low-Pressure Selling,” Harvard Business Review 25 (Winter 1947): 227.

31451_13_notes.qxd 15/03/05 18:32 PM Page 401 Notes 401 2Michele Marchetti, “A Sales Pro Tries to Energize 17Victoria D. Bush, Greg Rose, Faye Gilbert, and HP,” Sales & Marketing Management (September Thomas N. Ingram, “Managing Culturally Diverse 1999): 15. Buyer–Seller Relationships: The Role of Intercultural Disposition and Adaptive Selling Behavior in Developing 3Thomas N. Ingram and Charles H. Schwepker Jr., Intercultural Communication Competence,” Journal of “Perceptions of Salespeople: Implications for Sales the Academy of Marketing Science 29, no. 4 (Fall 2001): Managers and Sales Trainers,” Journal of Marketing 391–404. Management 2 (Fall/Winter 1992–93): 1. 18“And the Surveys Say,” Personal Selling Power 4Thomas N. Ingram, “Relationship Selling: Moving (October 1995): 55. from Rhetoric to Reality,” Mid-American Journal of Business 11 (Spring 1996): 5. Module 3 5“Here’s to the Winners,” Sales & Marketing 1David W. Cravens, Strategic Marketing (Homewood, Management (July 1999): 66. IL: Irwin, 1994): 30. 6Michael J. Swenson, William R. Swinyard, Frederick 2Betsy Cummings, “Getting Reps to Live Your W. Langrehr, and Scott M. Smith, “The Appeal of Mission,” Sales & Marketing Management (October Personal Selling as a Career: A Decade Later,” 2001): 15. Journal of Personal Selling & Sales Management 13 (Winter 1993): 51. 3Cravens, Strategic Marketing, 46. 7Occupational Outlook Handbook, 2004–05 ed. 4Matt Murray, “GE Says It Will Combine Appliances, Lighting Units,” The Wall Street Journal Online 8Emin Babakus, David W. Cravens, Ken Grant, (August 30, 2002): 1–2. Thomas N. Ingram, and Raymond W. LaForge, “Removing Salesforce Performance Hurdles,” 5Robert Schoenberger, “GE Finds Merger Pays Off in Journal of Business and Industrial Marketing 9, no. 3 Profits,” The Courier-Journal (September 13, 2003): (1994): 19. F1–F2. 9See Herbert M. Greenberg and Jeanne Greenberg, 6Adapted from William Strahle and Rosann L. Spiro, What It Takes to Succeed in Sales (Homewood, IL: “Linking Market Share Strategies to Salesforce Dow-Jones Irwin, 1990). Objectives, Activities, and Compensation Policies,” Journal of Personal Selling & Sales Management 10James M. Comer and Alan J. Dubinsky, Managing (August 1986): 14–15. Used with permission. the Successful Sales Force (Lexington, MA: D.C. Heath and Co., 1985): 5; Steven P. Brown, Thomas W. 7Michael E. Porter, Competitive Strategy (New York: Leigh, and J. Martin Haygood, “Salesperson The Free Press, 1980): 34. Performance and Job Attitudes,” in The Marketing Manager’s Handbook, 3rd ed., eds. Sidney J. Levy, 8Adapted from William L. Cron and Michael Levy, George R. Frerichs, and Howard L. Gordon “Sales Management Performance Evaluation: A Residual (Chicago: The Dartnell Corporation, 1994): 107. Income Perspective,” Journal of Personal Selling & Sales Management (August 1987): 58. Used with permission. 11Babakus et al., “Removing Salesforce Performance Hurdles,” 19; Greg W. Marshall, Daniel J. Goebel, 9Madhubalan Viswanathan and Eric M. Olson, “The and William C. Moncrief, “Hiring for Success at the Implementation of Business Strategies: Implications Buyer-Seller Interface,” Journal of Business Research for the Sales Function,” Journal of Personal Selling & 56 (April 2003): 247–255. Sales Management (Winter 1992): 45. 12Rosann L. Spiro and Barton A. Weitz, “Adaptive 10Bob Thompson, “What Is CRM?” The Customer Selling: Conceptualization, Measurement, and Relationship Management Primer, CRMguru.com Nomological Validity,” Journal of Marketing Research (January 2001): 1. 27 (February 1990): 61. 11Alex R. Zablah, Danny N. Bellenger, and Wesley J. 13Marshall et al., “Hiring for Success,” 251. Johnston, “An Evaluation of Divergent Perspectives on Customer Relationship Management: Towards a 14Kevin J. Corcoran, Laura K. Petersen, Daniel B. Common Understanding of an Emerging Baitch, and Mark F. Barrett, High Performance Sales Phenomenon,” Industrial Marketing Management Organizations (Chicago: Irwin Professional Publishing, 33 (2004): 475–489. 1995): 77. 12Darrell K. Rigby, Frederick F. Reichheld, and Phil 15Marshall et al., “Hiring for Success,” 251. Schefter, “Avoid the Four Perils of CRM,” Harvard Business Review (February 2002): 101–110. 16Arun Sharma and Rajnandini Pillai, “Customers’ Decision-Making Styles and Their Preference for Sales 13David W. Cravens, Gerald E. Hills, and Robert B. Strategies: Conceptual Examination and an Empirical Woodruff, Marketing Management (Homewood, IL: Study,” Journal of Personal Selling & Sales Irwin, 1987): 546. Reprinted by permission of the Management 16 (Winter 1996): 21. McGraw-Hill Companies.

31451_13_notes.qxd 15/03/05 18:32 PM Page 402 402 Notes 14Michael V. Copeland, “Best Buy’s Selling Machine,” 32Eilene Zimmerman, “Making the Dysfunctional Business 2.0 (July 2004): 93–102. Functional,” Sales & Marketing Management (September 2004), 30–31. 15Cyndee Miller, “Marketing Industry Report: Who’s Spending What on Biz-to-Biz Marketing,” Marketing 33John F. Yarbrough, “Salvaging a Lousy Year,” Sales & News (January 1, 1996): 1, 7; Cyndee Miller, Marketing Management (July 1996): 72. “Marketing Industry Report: Consumer Marketers Spend Most of Their Money on Communications,” 34Danielle Harris, “The Shows Will Go On,” Sales & Marketing News (March 11, 1996): 1, 5. Marketing Management (May 2000): 85. 16Adapted from Michael D. Hutt and Thomas W. 35Deborah L. Vence, “Trade Show Magic,” Speh, Business Marketing Management (Fort Worth, Marketing News (November 11, 2002): 4. TX: The Dryden Press, 1995): 18–21. Module 4 17Michael D. Hutt and Thomas W. Speh, Business Marketing Management (Fort Worth, TX: The 1Reported in “Structuring the Sales Organization,” in Dryden Press, 1995): 71. Sales Manager’s Handbook, ed. John P. Steinbrink (Chicago: The Dartnell Corporation, 1989): 90. 18David W. Cravens, Gerald E. Hills, and Robert B. Woodruff, Marketing Management, 161. Reprinted 2See Robert W. Ruekert, Orville C. Walker, Jr., and by permission of The McGraw-Hill Companies. Kenneth J. Roering, “The Organization of Marketing Activities: A Contingency Theory of Structure and 19Ernest Waaser, Marshall Dahneke, Michael Performance,” Journal of Marketing (Winter 1985): Pekkarinen, and Michael Weissel, “How You Slice It: 13, for a more complete presentation of structural Smarter Segmentation for Your Sales Force,” characteristics and relationships. The discussion in this Harvard Business Review (March 2004): 105–111. section borrows heavily from this article. 20Malcolm Campbell, “The New Sales Force,” Selling 3Ibid., 20–21. Power (July/August 1999): 51. 4From David W. Cravens, Strategic Marketing, 7th ed. 21“e-market stats,” Sales & Marketing Management (New York: McGraw-Hill): 541. Reprinted by permis- (May 2002): 19. sion of The McGraw-Hill Companies. 22“Point of Contact,” Sales & Marketing Management 5Christian Homburg, John P. Workman, Jr., and Ove (March 2001): 11. Jensen, “Fundamental Changes in Marketing Organization: The Movement Toward a Customer- 23Reported in Chad Kaydo, “You’ve Got Sales,” Sales & Focused Organizational Structure,” Journal of the Marketing Management (October 1999): 30. Academy of Marketing Science (Fall 2000): 459–478. 24Ibid., 34. 6Andy Cohen, “Managing,” Sales & Marketing Management (April 1996): 77. 25Andy Cohen, “Herman Miller,” Sales & Marketing Management (July 1999): 60. 7Charles T. Clark, “Is Your Company Ready for Global Marketing?” Sales & Marketing Management 26Henry Canaday, “Independent Rep’s Comp,” (September 1994): 42. Selling Power (January/February 2001): 79. 8Adapted from Benson P. Shapiro and Rowland T. 27Adapted from Harold J. Novick, “The Case for Moriarity, National Account Management: Emerging Reps vs. Direct Selling: Can Reps Do It Better?” Insights (Cambridge, MA: Marketing Science Industrial Marketing (March 1982): 90–98; and Institute, March 1982): 6. “The Use of Sales Reps,” Small Business Report (December 1986): 72–78. 9Benson P. Shapiro and Rowland T. Moriarity, National Account Management: Emerging Insights (Cambridge, 28Tricia Campbell, “Who Needs a Sales Force MA: Marketing Science Institute, 1982): 19. Anyway?” Sales & Marketing Management (February 1999): 13. 10Adapted from Benson P. Shapiro and Rowland T. Moriarity, Organizing the National Account Force 29Adapted from Michael D. Hutt, Wesley J. Johnston, (Cambridge, MA: Marketing Science Institute, April and John R. Rouchelto, “Selling Centers and Buying 1984): 1–37. Centers: Formulating Strategic Exchange Patterns,” Journal of Personal Selling & Sales Management (May 11John P. Workman, Jr., Christian Homburg, and Ove 1985): 34. Used with permission. Jensen, “Intraorganizational Determinants of Key Account Management Effectiveness,” Journal of the 30“Team Selling by Industry,” Selling (January/ Academy of Marketing Science (Winter 2003): 3–21. February 1994): 46. 12From David W. Cravens and Raymond W. LaForge, 31Thomas N. Ingram, “Relationship Selling: Moving “Salesforce Deployment,” in Advances in Business from Rhetoric to Reality,” Mid-American Journal of Marketing, ed. Arch G. Woodside (1990): 76. Business 11, no. 1 (Spring 1996): 5–13.

31451_13_notes.qxd 15/03/05 18:32 PM Page 403 Notes 403 13Raymond W. LaForge, David W. Cravens, and 7Joel Bryant and Kim Jensen, “Forecasting Inkjet Clifford E. Young, “Improving Salesforce Productivity,” Printers at Hewlett-Packard Company,” Journal of Business Horizons (September–October 1985): 54. Business Forecasting (Summer 1994): 27. Copyright 1985 by the Foundation for the School of Business at Indiana University. Reprinted by permission. 8Mark Barash, “Eliciting Accurate Sales Forecasts from Market Experts,” Journal of Business Forecasting 14See Raymond W. LaForge, David W. Cravens, and (Fall 1994): 24. Clifford E. Young, “Using Contingency Analysis to Select Effort Allocation Methods,” Journal of Personal 9Kenneth B. Kahn and John T. Mentzer, “The Impact Selling & Sales Management (August 1986): 23, for of Team-based Forecasting,” Journal of Business a summary of productivity improvements from deci- Forecasting (Summer 1994): 18. sion model applications. 10Norton Paley, “Welcome to the Fast Lane,” Sales & 15Andy Cohen, “Profits Down? Time to Add to Your Marketing Management (August 1994): 65. Headcount,” Sales & Marketing Management (August 2002): 15. 11Keenan, “Numbers Racket.” 16Scott Hensley, “As Drug-Sales Teams Multiply, 12“Keeping Sales in the Loop,” Sales & Marketing Doctors Start to Tune Them Out,” The Wall Street Management (June 1995): 34. Journal Online (June 12, 2003): 1–4. 13These and other recommendations are available in 17Betsy Wiesendanger, “Temp Reps,” Selling Power Robin T. Peterson, “Sales Force Composite (May 2004): 68–71. Forecasting—An Exploratory Analysis,” Journal of Business Forecasting (Spring 1989): 23; James E. Cox, 18LaForge, Cravens, and Young, “Improving Salesforce Jr., “Approaches for Improving Salespersons’ Productivity,” 57. Forecasts,” Industrial Marketing Management 18 (1989): 307. 19Ken Grant, David W. Cravens, George S. Low, and William C. Moncrief, “The Role of Satisfaction with 14Essam Mahmoud, Gillian Rice, and Naresh Territory Design on the Motivation, Attitudes, and Malhotra, “Emerging Issues in Sales Forecasting and Work Outcomes of Salespeople,” Journal of the Decision Support Systems,” Journal of the Academy of Academy of Marketing Science (Spring 2001): 165–178. Marketing Science (Fall 1988): 53. Module 4 Appendix 15See Benito E. Flores and Edna M. White, “A Framework for the Combination of Forecasts,” 1For other classification schemes and more detailed dis- Journal of the Academy of Marketing Science (Fall cussion of individual forecasting methods, see Harry R. 1988): 95, for an examination of different combina- White, Sales Forecasting: Timesaving and Profit-Making tion approaches. Strategies That Work (Glenview, IL: Scott, Foresman and Company, 1984): 6; David M. Georgoff and 16Sanders and Manrodt, “Forecasting Practices in Robert G. Murdick, “Manager’s Guide to Forecasting,” U.S. Corporations.” Harvard Business Review (January–February 1986): 113; J. Scott Armstrong, Roderick J. Brodie, and Shelby Module 5 McIntyre, “Forecasting Methods for Marketing: Review of Empirical Research,” International Journal 1Michael Munson and W. Austin Spivey, “Salesforce of Forecasting 3 (1987): 355. Selection That Meets Federal Regulation and Management Needs,” Industrial Marketing 2Nada R. Sanders and Karl B. Manrodt, “Forecasting Management 9 (February 1980): 12. Practices in U.S. Corporations: Survey Results,” Interfaces 24 (March–April 1994): 92. 2http://www.census.gov. Accessed 5/14/04. 3See John T. Mentzer, “Forecasting with Adaptive 3Rene Darmon, “Where Do the Best Sales Force Extended Exponential Smoothing,” Journal of the Profit Producers Come From?” Journal of Personal Academy of Marketing Science (Fall 1986): 62, for dis- Selling & Sales Management 3 (Summer 1993): 17. cussion and examples of different exponential smoothing methods. 4Julia Lawlor, “Highly Classified,” Sales & Marketing Management (March 1995): 75; Chad Kaydo, 4See “Survey of Buying Power,” Sales & Marketing “Overturning Turnover,” Sales & Marketing Management (August 13, 1990), for a discussion of Management 149 (November 1997): 50. the Buying Power Index and for the calculated indices throughout the United States. 5Presentation by Jim Sodomka, Sabrina Rogers, and Brad Parrack, managers, Federated Insurance, at 5Conversation with director of marketing at Central Missouri State University, February 26, 2004. Sherwood Medical in St. Louis, MO. 6Herbert Greenberg, Harold Weinstein, and Patrick 6William Keenan, Jr., “Numbers Racket,” Sales & Sweeney, How to Hire and Develop Your Next Top Marketing Management (May 1995): 64. Performer: The Five Qualities That Make Salespeople Great (New York: McGraw-Hill Company, 2001).

31451_13_notes.qxd 15/03/05 18:32 PM Page 404 404 Notes 7Georgia Chao, Anne O’Leary-Kelly, Samantha 21Martha Frase-Blunt, “Make a Good First Wolf, Howard Klein, and Philip Gardner, Impression,” HR Magazine 49 (April 2004): 80–84. “Organizational Socialization: Its Content and Consequences,” Journal of Applied Psychology 79 22Watson Wyatt, “Staffing Expense per Hire,” The (October 1994): 730. Controller’s Report (November 2003): 8. 8Position description taken from http://xerox.wfre- 23Joe Rudich, “Job Hunting on the Web,” Link-Up cruiter.com/jobs_details1.asp?Job_idϭ24062&Page 17 (March/April 2000): 21. _idϭ5619&Publishedϭ1. Accessed 5/17/04. 24Gillian Flynn, “E-Recruiting Ushers in Legal 9John S. Hill and Meg Birdseye, “Salesperson Dangers,” Workforce 81 (April 2002): 70–72. Selection in Multinational Corporations: A Study,” Journal of Personal Selling & Sales Management 9 25Judith Marshall, “Don’t Rely Exclusively on (Summer 1989): 39. Internet Recruiting,” HR Magazine 48 (November 2003): 24. 10Erika Rasmusson, “Can Your Reps Sell Overseas? How to Make Sure They Have What It Takes,” 26Max Messmer, “Temporary Employees Are Sales & Marketing Management 150 (February Permanent Part of New Europe,” Personnel Journal 1998): 110. 73 (January 1994): 100. 11Xerox Corporation, https://xerox.wfrecruiter.com/ 27Barb Cole-Gomolski and Tim Ouellette, “Hiring jobs_details1.asp?Job_idϭ24062&Page_Idϭ5619& Managers Turn to Video,” Computerworld 32 (April Publishedϭ1. Accessed May 2004. 1998): 29. 12From Michael Bruce “How to Get Better Sales 28Jessica Feinberg and Erin Strout, “Cheap Sales Talent Through State-of-the-Art Advertising” in Help,” Sales & Marketing Management 155 (March Personal Selling Power 13 (March 1993): 46–47. 2003): 50. Reprinted with permission of Personal Selling Power Inc. 29Michele Marchetti, “Sales Reps to Go,” Sales & Marketing Management 151 (January 1999): 14. 13Adapted from Industrial Marketing Management (March 1995), Vol. 24, 135–144, “Guidelines for 30James Borck, “Recruiting Systems Control Resume Managing an International Sales Force” by Earl Chaos,” Infoworld 22 (July 24, 2000): 47–48. Honeycutt and John Ford. Copyright © 1995, with permission from Elsevier. 31Flynn, “E-Recruiting Ushers in Legal Dangers.” 14Lawlor, “Highly Classified.” 32Borck, “Recruiting Systems Control Resume Chaos.” 15James A. Breaugh, Leslie A. Greising, James W. 33Flynn, “E-Recruiting Ushers in Legal Dangers.” Taggart, and Helen Chen, “The Relationship of Recruiting Sources and Pre-Hire Outcomes: 34Erin Strout, “Recruiting and Hiring for Less,” Sales & Examination of Yield Rations and Application Marketing Management 154 (May 2002): 61. Quality,” Journal of Applied Social Psychology 33 (November 2003): 2267–2287. 35http://gallup.com/content/?CIϭ62. Accessed 5/25/04. 16Dave Porter, “Creating a Recruiting Culture,” National Underwriter Life & Health (March 22, 36Linda Thornburg, “Computer-Assisted Interviewing 2004): 17, 39. Shortens Hiring Cycle,” HR Magazine 43 (February 1998): 73. 17Sodomka, Rogers, and Parrack, 2004. 37Sodomka, Rogers, and Parrack, 2004. 18Andy Bargerstock and Hank Engel, “Six Ways to Boost Employee Referral Programs,” HRM 38“Interviewing the Candidate,” Sales Consultants Magazine 39 (December 1994): 72; Kathryn Tyler, International, Inc., Cleveland, Ohio. “Employees Can Help Recruit New Talent,” HR Magazine 41 (September 1996): 57. 39Paul Taylor, “Providing Structure to Interviews and Reference Checks,” Workforce (1999): 7–10. 19Darmon, “Where Do the Best Sales Force Profit Producers Come From?” 40 Taken (with permission) from William C. Byham, “Can You Interview for Integrity?” Across the Board 20Bruce, “How to Get Better Sales Talent Magazine (March/April 2004). Through State-of-the-Art Advertising,” 46–47; “What’s Wrong with Your Recruitment Ads?” 41Robert Gatewood and Hubert Feild, Human Sales & Marketing Management (November Resource Selection (Fort Worth, TX: The Dryden 1994): 50; and William H. Krause, “Advertising Press, 1994). for Agents?” Agency Sales Magazine 28 (May 1998): 4–7. 42Wesley J. Johnson and Martha C. Cooper, “Industrial Sales Force Selection: Current Knowledge and Needed Research,” Journal of Personal Selling & Sales Management 1 (Spring–Summer 1981): 49.

31451_13_notes.qxd 15/03/05 18:32 PM Page 405 Notes 405 43Greg W. Marshall, Miriam B. Stamps, and Jesse N. 60Gatewood and Feild, Human Resource Selection. Moore, “Preinterview Biases: The Impact of Race, Physical Attractiveness, and Sales Job Type on 61Ibid. Preinterview Impressions of Sales Job Applicants,” Journal of Personal Selling & Sales Management 18 62W. E. Patton III and Ronald King, “The Use of (Fall 1998): 21. Human Judgement Models in Sales Force Selection Decisions,” Journal of Personal Selling & Sales 44Ron Panko, “Getting Testy about Sales Screening Management 12 (Spring 1992): 1. Tests,” Best’s Review—Life-Health Insurance Edition 98 (December 1997): 67; Michael Santo, “How to 63Michele Marchetti, “The New Gold Rush,” Recruit and Retain Top-Level Talent,” Agency Sales Sales & Marketing Management 150 (September Magazine 28 (May 1998): 39. 1998): 42. 45Seymour Adler, “Personality Tests for Salesforce 64Alan J. Dubinsky, Roy D. Howell, Thomas N. Ingram, Selection: Worth a Fresh Look,” Review of Business 16 and Danny N. Bellenger, “Salesforce Socialization.” (Summer/Fall 1994): 27. Reprinted from Journal of Marketing 50 (October 1986): 203, published by the American Marketing 46http://www.doubleeaglecomm.com/salesprofile.htm. Association; and Mike Delaney, “Background Checks: Accessed 5/25/04. Five Steps Toward Compliance,” HR Focus 74 (December 1997): S6. 47Alison Overholt, “A Nice Personality,” Fast Company (June 2004): 20. 65C. David Shepherd and James Heartfield, “Discrimination Issues in the Selection of 48Based on Samual J. Maurice, “Stalking the High- Salespeople: A Review and Managerial Suggestions,” Scoring Salesperson,” Sales & Marketing Management Journal of Personal Selling & Sales Management 11 (October 7, 1985): 63; George B. Salsbury, “Properly (Fall 1991): 67. Recruit Salespeople to Reduce Training Cost,” Industrial Marketing Management 11 (April 1982): 143; 66Munson and Spivey, “Salesforce Selection,” 15. Richard Kern, “IQ Tests for Salesmen Make a Comeback,” Sales & Marketing Management (April 67For more discussion of what information should not 1988): 42. be sought in a job interview, see John P. Steinbrink, ed., The Dartnell Sales Manager’s Handbook, 14th ed. 49Northwestern Mutual Financial Network, (Chicago: The Dartnell Press, 1989): 820; Shepherd http://www.nmfn.com/tn/careers-fr0-fr. Accessed and Heartfield, “Discrimination Issues.” 5/24/04. 68Jon M. Hawes, “How to Improve Your College 50Sodomka, Rogers, and Parrack, 2004. Recruiting Program,” Journal of Personal Selling & Sales Management 9 (Summer 1989): 51. 51http://www.wonderlic.com/products/product.asp? prod_id_ ϭ 10. Accessed 5/25/04. 69Adapted from “What Would You Do?” Sales & Marketing Management 154 (March 2002): 64. 52http://www.chally.com/assessment/testimonial.html. Accessed 5/25/04. Module 6 53Anne Fisher, “How Can We Be Sure We’re Not 1Alan J. Dubinsky, Roy D. Howell, Thomas N. Ingram, Hiring a Bunch of Shady Liars?” Fortune 147 (May and Danny N. Bellenger, “Salesforce Socialization,” 26, 2003): 180–181. Journal of Marketing 50 (October 1986): 195. 54Weld Royal, “From Socialist to Sales Rep,” Sales & 2Mark W. Johnston, A. Parasuraman, Charles M. Futrell, Marketing Management (August 1994): 63. and William C. Black, “A Longitudinal Assessment of the Impact of Selected Organizational Influences on 55E. James Randall, Ernest F. Cooke, and Lois Smith, Salespeople’s Organizational Commitment During Early “A Successful Application of the Assessment Center Employment,” Journal of Marketing Research 27 Concept to the Salesperson Selection Process,” (August 1990): 341. Journal of Personal Selling & Sales Management 5 (May 1985): 53. 3Jeffrey K. Sager, “How to Retain Salespeople,” Industrial Marketing Management 19 (May 56Sodomka, Rogers, and Parrack, 2004. 1990): 155. 57“Background/Reference Checks May Provide 4Judy A. Siguaw, Gene Brown, and Robert E. Widing Defense to Discrimination Suit,” Fair Employment II, “The Influence of the Market Orientation of the Practices Guidelines (December 1, 2003): 4–5. Firm on Sales Force Behavior and Attitudes,” Journal of Marketing Research 31 (February 1994): 106. 58Anne Fisher, “How Can We Be Sure We’re Not Hiring a Bunch of Shady Liars?” Fortune 147 (May 5“Your Marketing Opportunity: Anticipations, Expec- 26, 2003): 180–181. tations, and Realizations,” brochure by Federated Mutual Insurance Co. (2000). 59How to Select a Sales Force That Sells, 3d ed. (Dayton, OH: The HR Chally Group, 1998): 14. Reprinted with kind permission from H. R. Chally Group.

31451_13_notes.qxd 15/03/05 18:32 PM Page 406 406 Notes 6Gilbert A. Churchill, Jr., Neil M. Ford, Steven W. 23http://questionpro.com. Accessed 6/3/04. Hartley, and Orville C. Walker, Jr., “The Determinants of Salesperson Performance: A Meta-Analysis,” 24Chad Kaydo, “Training: A Complete Regimen for Journal of Marketing Research 22 (May 1985): 117. Making Your Salespeople Smarter,” Sales & Marketing Management 150 (December 1998): 33. 7Christine Galea and Carl Wiens, “2002 Sales Training Survey,” Sales & Marketing Management 25See “Study Reveals Needs of Business Marketers,” 154 (July 2002): 34–37. Marketing News (March 13, 1989): 6; Success Factors in Selling (Stamford, CT: Learning International, 8Brandon Hall, “Should Corporate Shareholders Care 1989); “How Do Salespeople Rate Themselves?” About Training?” Training 41 (May 2004): 16. Sales & Marketing Management (March 1989): 17; Heide, Dartnell’s 30th Sales Force Compensation 9Julia Chang, “More Bang for Your Buck,” Sales & Survey. Marketing Management 155 (June 2003): 26. 26Galea and Wiens, “2002 Sales Training Survey.” 10“Training Managers’ Forum,” IOMA’s Report on Managing Training & Development (October 27C. David Shepherd, Stephen B. Castleberry, and 2003): 15. Rick E. Ridnour, “Linking Effective Listening with Salesperson Performance: An Exploratory 11Christen Heide, Dartnell’s 30th Sales Force Investigation,” Journal of Business & Industrial Compensation Survey (Chicago: The Dartnell Marketing 12 (Fall 1997): 315. Corporation, 1999). 28 Jaclyn Fierman, “The Death and Rebirth of the 12Galea and Wiens, “2002 Sales Training Survey”; Salesman,” Fortune (July 25, 1994): 80; David William Powell, “Train Today, Sell Tomorrow,” T & Stamps, “Training for a New Sales Game,” Training D 55 (September 2001): 40–48. 34 (July 1997): 46. 13Heide, Dartnell’s 30th Sales Force Compensation 29Sue Melone and Gary Summy, “Sales Training 101: Survey. Best Practices for Keeping Pace with Rapid Change in Selling,” presentation at the National Conference in 14Seonaid Farrell and A. Ralph Hakstain, “Improving Sales Management, April 5, 2002. Salesforce Performance: A Meta-Analytic Investigation of the Effectiveness and Utility of Personnel Selection 30Bernard L. Rosenbaum, “Do You Have the Skills for Procedures and Training Interventions,” Psychology & 21st Century Selling? Rate Yourself with This Exercise,” Marketing 18 (March 2001): 281–316. American Salesman 45 (July 2000): 24–30. 15From Galea and Wiens, “2002 Sales Training 31Rosenbaum, “Do You Have the Skills for 21st Survey.” Copyright © VNU Business Media Inc. Century Selling?” Reprinted by kind permission of Reprinted by permission. the author. 16For an extensive review of how the sales manager 32Marc Hequet, “Product Knowledge: Knowing might be involved in the details of sales training, see What They’re Selling May Be the Key to How Well John P. Steinbrink, ed., The Dartnell Sales Manager’s They Sell It,” Training (February 1988): 18. Handbook, 14th ed. (Chicago: The Dartnell Corporation, 1989): 850. 33Alan J. Dubinsky and Thomas N. Ingram, “A Classification of Industrial Buyers: Implications for 17Galea and Wiens, “2002 Sales Training Survey.” Sales Training,” Journal of Personal Selling & Sales Management 2 (Fall–Winter 1981–1982): 49. 18See Alan J. Dubinsky and Richard W. Hansen, “The Sales Force Management Audit,” California 34Julia Chang, “Multicultural Selling,” Sales & Management Review 24 (Winter 1981): 86. Marketing Management 155 (October 2003): 26. 19Joseph O. Rentz, C. David Shepherd, Armen 35Victoria Davies Bush and Thomas N. Ingram, Tashchain, Pratibha A. Dabholkar, and Robert T. “Adapting to Diverse Customers: A Training Matrix Ladd, “A Measure of Selling Skill: Scale Development for International Marketers,” Industrial Marketing and Validation,” Journal of Personal Selling & Sales Management 25 (September 1996): 373; Strout, Management 22 (Winter 2002): 13–21. Brewer, and Kaydo, “Are Your Salespeople Tech Savvy?” 20“Gallup Study of Sales Force Effectiveness Kicks Up Old Debate About Need for Sales Training,” Lifelong 36From “Global Do’s and Don’ts” by Andy Cohen Learning Marketing Report 8 (September 5, 2003): from Sales & Marketing Management 148 (June 1, 3–4. 1996): 72. Reprinted by permission of Reprint Management Services. 21Erin Strout, Geoffrey Brewer, and Chad Kaydo, “Are Your Salespeople Tech Savvy?” Sales & 37Harish Sujan, Barton A. Weitz, and Mita Sujan, Marketing Management 152 (July 2000): 109. “Increasing Sales Productivity by Getting Salespeople to Work Smarter,” Journal of Personal Selling & Sales 22Betsy Cummings, “Wake Up, Salespeople!” Sales & Management 8 (August 1988): 9. Marketing Management 154 (June 2002): 11.

31451_13_notes.qxd 15/03/05 18:32 PM Page 407 Notes 407 38Thayer C. Taylor, “Take Your Time,” Sales & Chang, “No Instructor Required?” Sales & Marketing Marketing Management 146 (July 1994): 45. Management 155 (May 2003): 26. 39Ned C. Hill and Michael J. Swenson, “The Impact 55http://www.federatedinsurance.com/Employment/ of Electronic Data Interchange on the Sales training.html. Accessed 6/8/04. Function,” Journal of Personal Selling & Sales Management 14 (Summer 1994): 80. 56Galea and Wiens, “2002 Sales Training Survey.” 40Scott A. Inks and Amy J. Morgan, “Technology 57Ibid. and the Sales Force: Increasing Acceptance of Sales Force Automation,” Industrial Marketing 58http://www.raindance.com/rndc/services/services. Management 30 (June 2001): 463–472; Robert C. jsp?itϭheader and http://www.webex.com/home/ Erffmeyer and Dale A. Johnson, “An Exploratory services_trainingcenter.html. Accessed 6/8/04. Study of Sales Force Automation Practices: Expectations and Realities,” Journal of Personal 59Max Smetannikov, “Content Distribution Meets Selling & Sales Management 21 (Spring 2001): E-Learning,” Interactive Week 8 (May 2001): 24. 167–175. 60Powell, “Train Today, Sell Tomorrow.” 41Colette A. Frayne and J. Michael Geringer, “Self-Management Training for Improving Job 61Erffmeyer and Johnson, “The Future of Sales Performance: A Field Experiment Involving Training.” Salespeople,” Journal of Applied Psychology 85 (June 2000): 361–372. 62Carl L. Pritchard, “From Classroom to Chat Room,” Training & Development 52 (June 1998): 76. 42Jared F. Harrison, ed., The Sales Manager as a Trainer (Orlando, FL: National Society of Sales Training 63http://www.remax.com/press/2002/07_30.html. Executives, 1983): 7. Accessed 6/3/04. 43Craig Lindsay, “Successful Distributor Reps,” 64Sarah Lorge, “Top of the Charts—Frito-Lay,” Sales Industrial Distribution 90 (March 2001): S8–S9. & Marketing Management (July 1998): 38. 44Julia Chang, “What Worked,” Sales & Marketing 65http://www.sales-training-management-institute. Management 155 (July 2003): 29 com/products/digital/simulator.htm. Accessed 6/3/2004. 45http://www.wilsonlearning.com. Accessed 6/03/04. 66“E-Train,” Sales & Marketing Management 155 46Adapted from Linda Cecere, “Picking the Perfect (October 2003): 26. Training Program,” Sales & Marketing Management (July 1994): 38. 67Christine Galea and Carl Wiens, “2002 Sales Training Survey,” Sales & Marketing Management 47Julia Chang, “Faker or Deal Maker?” Sales & 154 (July 2002): 34–37. Marketing Management 155 (December 2003): 28–33. 68Jon M. Hawes, Stephen P. Huthchens, and William 48Heide, Dartnell’s 30th Sales Force Compensation F. Crittenden, “Evaluating Corporate Sales Training Survey. Programs,” Training and Development Journal 36 (November 1982): 44. 49Julia Chang, “The Premium Blend,” Sales & Marketing Management 156 (April 2004): 19. 69Melone and Summy, “Sales Training 101: Best Practices for Keeping Pace with Rapid Change in 50Julia Chang, “What Worked,” Sales & Marketing Selling.” Management 155 (September 2003): 27. 70Charles Gottenkieny, “Proper Training Can Result 51Olivia Thetgyi and Geoffrey Brewer, “The Games in Positive ROI,” Selling (August 2003): 9. Salespeople Play,” Sales & Marketing Management 152 (January 2002): 74. 71Mark P. Leach and Anie H. Liu, “Investigating Interrelationships Among Sales Training Evaluation 52http://www.sales-training-management-institute. Methods,” Journal of Personal Selling & Sales com/products/digital/simulator.htm. Accessed Management 23 (Fall 2003): 327–339. 6/3/2004. 72Robert C. Erffmeyer, K. Randall Russ, and Joseph 53For guidelines for enhancing role playing, see F. Hair, Jr., “Needs Assessment and Evaluation “Skills,” Personal Selling Power (January/February in Sales-Training Programs,” Journal of Perso- 1995): 54. Also see Thomas N. Ingram, “Guidelines nal Selling & Sales Management 11 (Winter for Maximizing Role-Play Activities,” in Proceedings, 1991): 17–30. National Conference in Sales Management, Dallas, TX, 1990. 73Julia Chang, “What Worked,” Sales & Marketing Management 155 (July 2003): 29. 54Julia Chang, “The Premium Blend” Sales & Marketing Management 156 (April 2004): 19; Julia 74Gail Johnson, “Forget Me Not,” Training 41 (March 2004): 12.

31451_13_notes.qxd 15/03/05 18:32 PM Page 408 408 Notes 75Alan J. Dubinsky, Marvin A. Jolson, Ronald E. 6Susan K. Delvecchio, “The Quality of Michaels, Masaaki Kotabe, and Chae Un Lim, “Ethical Salesperson–Manager Relationship: The Effect of Perceptions of Field Sales Personnel: An Empirical Latitude, Loyalty and Competence,” Journal of Personal Assessment,” Journal of Personal Selling & Sales Selling & Sales Management 18 (January 1998): 31–47. Management 12 (Fall 1992): 9; Karl A. Boedecker, Fred W. Morgan, and Jeffrey J. Stoltman, “Legal 7Based on John French, Jr. and Bertram Raven, “The Dimensions of Salespersons’ Statements: A Review and Bases of Social Power,” in Studies in Social Power, ed. Managerial Suggestions,” Journal of Marketing 55 D. Cartwright (Ann Arbor, MI: The University of (January 1991): 70. Michigan Press, 1959). 76Adapted from Alan J. Dubinsky, Marvin A. Jolson, 8Paul Busch, “The Sales Manager’s Bases of Social Ronald E. Michaels, Masaaki Kotabe, and Chae Un Power and Influence upon the Sales Force,” Journal Lim, “Ethical Perceptions of Field Sales Personnel: of Marketing 44 (Summer 1980): 95. An Empirical Assessment,” Journal of Personal Selling & Sales Management 12 (Fall 1992): 9–21. 9Ibid., 98. 77Melone and Summy, “Sales Training 101: Best 10Prescott Tolk, “Supplying Success,” Sales & Practices for Keeping Pace with Rapid Change in Marketing Management 150 (April 1998): 22. Selling.” 11From L.B. Gshwandtner “Personal PR Strategies for 78Boedecker et al., “Legal Dimensions of Salespersons’ Creating Power and Influence” in Personal Selling Statements.” Power (October 1990): 20. Reprinted with permis- sion of Personal Selling Power Inc. Module 7 12Janet E. Keith, Donald W. Jackson, Jr., and 1The figure and discussion are adapted from Thomas Lawerence A. Crosby, “Effects of Alternative Types N. Ingram, Raymond W. LaForge, William B. of Influence Strategies under Different Channel Locander, Scott B. MacKenzie, and Philip M. Dependence Structures,” Journal of Marketing 54 Podsakoff, “New Directions for Sales Leadership (July 1990): 30. Research,” Journal of Personal Selling & Sales Management (Spring 2005—forthcoming). 13Donald W. Jackson, Jr., Stephen S. Tax, and John W. Barnes, “Examining the Salesforce Culture: 2Bernard M. Bass, Leadership and Performance Managerial Applications and Research Propositions,” Beyond Expectations (New York: Free Press, 1985). Journal of Personal Selling & Sales Management 14 (Fall 1994): 1. 3Philip M. Podsakoff, Scott B. MacKenzie, Robert H. Moorman, and Richard Fetter, “Transformational 14Michele Marchetti, “Shifting into Growth Mode,” Leader Behaviors and Their Effects on Followers’ Trust Sales & Marketing Management (March 2004): 12. in Leader, Satisfaction, and Organizational Citizenship Behaviors,” Leadership Quarterly (1990): 107–142. 15Francis J. Yammarino and Alan J. Dubinsky, “Salesperson Performance and Managerially 4Daniel Goleman, “Leadership That Gets Results,” Controllable Factors: An Investigation of Individual Harvard Business Review (March–April 2000): and Work Group Effects,” Journal of Management 16 78–90; Daniel Goleman, Richard Boyatzis, and Annie (1990): 87. McKee, Primal Leadership: Realizing the Power of Emotional Intelligence (Boston: Harvard Business 16Michele Marchetti, “Master Motivators,” Sales & School Press, 2002). Marketing Management 150 (April 1998): 38. 5Rosemary R. Lagace, “An Exploratory Study of 17Elana Harris, “Stars in the Making,” Sales & Trust between Sales Managers and Salespersons,” Marketing Management 153 (March 2001): 58–61. Journal of Personal Selling & Sales Management 11 (Spring 1991): 49; David Strutton, Lou E. Pelton, 18Betsy Cummings, “From Good to Great,” Sales & and James R. Lumpkin, “The Relationship between Marketing Management (December 2001): 53–54. Psychological Climate and Salesperson–Sales Manager Trust in Sales Organizations,” Journal of 19William L. Cron and John W. Slocum, Jr., “Career Personal Selling & Sales Management 13 (Fall 1993): Stages Approach to Managing the Sales Force,” 1; Karen E. Flaherty and James M. Pappas, “The Journal of Consumer Marketing 3 (Fall 1986): 11. Role of Trust in Salesperson–Sales Manager Relationships,” Journal of Personal Selling & Sales 20This discussion of influence strategies is largely Management 20 (Fall 2000): 271–278; Howard J. based on Madeline E. Heilman and Harvey Klein and Jay S. Kim, “A Field Study of the Influence Hornstein, Managing Human Forces in Organization of Situational Constraints, Leader–Member (Homewood, IL: Irwin, 1982): 116. Exchange, and Goal Commitment on Performance,” Academy of Management Journal 41 (February 21Ajay K. Kohli, “Some Unexplored Supervisory 1998): 88. Behaviors and Their Influence on Salespeople’s Role Clarity, Specific Self-Esteem, Job Satisfaction, and Motivation,” Journal of Marketing Research 22 (November 1985): 424.

31451_13_notes.qxd 15/03/05 18:32 PM Page 409 Notes 409 22Ibid., 118. by permission of and copyrighted by Minnesota Mining and Mfg. Co. 23L. B. Gschwandter, “How to Influence with Integrity,” Personal Selling Power (January–February 39Mark Roberti, “Meet Me on the Web,” Fortune 1990): 40. 144 (Winter 2002): 37. 24Harry Campbell, “Phone Efficiency,” Sales & 40Sir Adrian Cadbury, “Ethical Managers Make Their Marketing Management (May 2004): 16. Own Rules,” Harvard Business Review 65 (September–October 1987): 70. 25Mark C. Johlke, Dale F. Duhan, Roy D. Howell, and Robert W. Wilkes, “An Integrated Model of Sales 41Archie B. Carroll, “In Search of the Moral Manager,” Managers’ Communication Practices,” Journal of the Business Horizons 30 (March–April 1987): 12. Academy of Marketing Science 28 (Spring 2000): Copyright 1987 by the Foundation for the School of 263–277. Business at Indiana University. Reprinted by permission. 26Gregory A. Rich, “The Constructs of Sales 42Carroll, “In Search of the Moral Manager,” 7. Coaching: Supervisory Feedback, Role Modeling and Trust,” Journal of Personal Selling & Sales 43Chemical Market Reporter 260 (October 8, 2001): 2. Management 18 (Winter 1998): 53. 44Christopher Palmeri, “On the Defense at Pre-Paid 27Saul W. Gellerman, “The Tests of a Good Legal Services,” Business Week Online (April 25, Salesperson,” Harvard Business Review 68 (May–June 2002): N.PAG. 1990): 68. 45Erin Strout, “To Tell the Truth,” Sales & 28Gabrielle Birkner, “Wish List,” Sales & Marketing Marketing Management 154 (July 2002): 40–47. Management 153 (September 2000): 64–70. 46“The Charge Sheet: So Far, So Few,” The Economist 29Barton A. Weitz, Harish Sujan, and Mita Sujan, 364 (September 14, 2002): 62; Strout, “To Tell the “Knowledge, Motivation, and Adaptive Behavior: A Truth.” Framework for Improving Sales Effectiveness,” Journal of Marketing 50 (October 1986): 183; 47Strout, “To Tell the Truth.” Bernard J. Jaworski and Ajay K. Kohli, “Supervisory Feedback: Alternative Types and Their Impact on 48Ibid. Salespeople’s Performance Satisfaction,” Journal of Marketing Research 28 (May 1991): 190–201. 49Michele Marchetti, “Whatever It Takes,” Sales & Marketing Management 149 (December 1997): 28. 30Ibid. 50Excerpted from Sales and Marketing Executives 31Compiled from Barry J. Farber, “Sales Managers: Do International Certified Professional Salesperson Code Yourself a Favor,” Personal Selling Power (April 1990): of Ethics (Cleveland: Sales and Marketing Executives 33; “First Train Them, Then Coach Them,” Sales & International, 1994). Reprinted by permission of Marketing Management (August 1987): 64–65; Stuart SME International at 800-999-1414. R. Levine, “Performance Coaching,” Selling Power (July/August 1996): 46; and Bill Cates, “A Coach for 51Michael R. Hyman, Robert Skipper, and Richard All Reasons,” Selling Power (June 1996): 64–65. Tansey, “Ethical Codes Are Not Enough,” Business Horizons (March–April 1990): 15. 32Rich, “The Constructs of Sales Coaching.” 52Joseph A. Bellizzi and Robert E. Hite, “Supervising 33Gregory A. Rich, “The Sales Manager as a Role Unethical Salesforce Behavior,” Journal of Marketing Model: Effects on Trust, Job Satisfaction, and 53 (April 1989): 36. Performance of Salespeople,” Journal of the Academy of Marketing Science 25 (Fall 1997): 319. 53Adapted from James A. Waters and Frederick Bird, “Attending to Ethics in Management” from 34Rich, “The Constructs of Sales Coaching.” Journal of Business Ethics 8 (June 1989): 494. Reprinted with kind permission of Kluwer 35Elaine Evans, “How to Create Sales Meeting Academic Publishers and Frederick Bird, author of Magic,” Personal Selling Power (September 1990): 34. Good Management: Business Ethics in Practice and The Muted Conscience: Moral Silence and the 36Complied from Rayna Skolnik, “Salespeople Sound Practice of Ethics in Business. Off on Meetings,” Sales & Marketing Management (November 1987): 108; and Hank Trisler, “Million 54James A. Waters and Frederick Bird, “Attending to Dollar Meetings,” Selling Power (March 1996): 66–67. Ethics in Management,” Journal of Business Ethics 8 (June 1989): 493. 37Mark McMaster, “Sales Meetings Your Reps Won’t Hate,” Sales & Marketing Management 153 (May 55Thomas R. Wotruba, “A Comprehensive 2001): 63–67. Framework for the Analysis of Ethical Behavior, with a Focus on Sales Organizations,” Journal of 38“Six Secrets to Holding a Good Meeting,” fur- Personal Selling & Sales Management 10 (Spring nished by 3M Visual Systems Division. Reproduced 1990): 30.

31451_13_notes.qxd 15/03/05 18:32 PM Page 410 410 Notes 56Michael Prince, “Battling Workplace Drug Use,” Management 9 (Spring 1989): 22; Jeffrey K. Sager Business Insurance 35 (January 29, 2001): 20. and Mark W. Johnston, “Antecedents and Outcomes of Organizational Commitment: A Study of 57Judith Spain and Rosemary Ramsey, “Workers’ Salespeople,” Journal of Personal Selling & Sales Compensation and Respondeat Superior Liability Management 9 (Spring 1989): 30. Legal Cases Involving Salespersons’ Misuse of Alcohol,” Journal of Personal Selling & Sales 5A study of salespeople that illustrates the interrelation- Management 20 (Fall 2000): 263–269. ship, yet distinctiveness, of intrinsic and extrinsic dimen- sions of motivation is Thomas N. Ingram, Keu S. Lee, 58Melinda Ligos, “Are Your Reps High?” Sales & and Steven J. Skinner, “Empirical Assessment of Marketing Management 149 (October 1997): 80; Salesperson Motivation, Commitment, and Job Andy Cohen, “Getting Personal,” Sales & Marketing Outcomes,” Journal of Personal Selling & Sales Management (May 1996): 45. Management 9 (Fall 1989): 25. 59From “How to Manage the 7 Most Difficult (but 6Galea, “The 2004 Compensation Survey.” Promising) Sales Personalities” by Donald J. Moine and Gerhard Gschwandter in Personal Selling Power, 7CyberAtlas staff, “Customer Satisfaction Playing 15th Anniversary Issue (1995): 71. Reprinted with Role in IT Compensation,” eCRM News (February 4, permission of Personal Selling Power Inc. 2002). Accessed at http://www.ecrmguide.com/ news/article/0,3376,10382_967751,00.html on 60Thomas N. Ingram, Keun S. Lee, and George H. 11/7/02. Lucas, Jr., “Commitment and Involvement: Assessing a Salesforce Typology,” Journal of Academy of 8Scott Widmier, “The Effects of Incentives and Marketing Science 19 (Summer 1991): 187. Personality on Salesperson’s Customer Orientation,” Industrial Marketing Management 31 (October 61Leslie M. Fine, C. David Shepherd, and Susan L. 2002): 609–615. Josephs, “Sexual Harassment in the Sales Force: The Customer Is Not Always Right,” Journal of Personal 9Jeanne Greenberg and Herbert Greenberg, What Selling & Sales Management 16 (Fall 1994): 15. It Takes to Succeed in Sales: Selecting and Retaining Top Producers (Homewood, IL: Dow-Jones Irwin, 62Michael Barrier, “Sexual Harassment,” Nation’s 1990): 112. Business (December 1998): 14. 10Compiled from two studies: Thomas N. Ingram and 63Julia Lawlor, “Stepping Over the Line,” Sales & Danny N. Bellenger, “Personal and Organizational Marketing Management (October 1995): 91. Variables: Their Relative Effect on Reward Valences of Industrial Salespeople,” Journal of Marketing Research 64http://www.eeoc.gov/stats/harass.html, “Sexual 20 (May 1983): 198–205; and Neil M. Ford, Gilbert Harassment Charges EEOC & FEPAs Combined: FY A. Churchill, Jr., and Orville C. Walker, Jr., 1992–FY 2001.” Accessed on 10/7/02. “Differences in the Attractiveness of Alternative Rewards Among Industrial Salespeople: Additional 65Barrier, “Sexual Harassment.” Evidence,” Journal of Business Research 13 (April 1985): 123–138. Another study confirmed pay as Module 8 salespeople’s most preferred reward, but did not pro- vide rankings of alternative rewards. This study is: 1From Christine Galea, “2004 Compensation Lawrence B. Chonko, John F. Tanner, and William A. Survey,” Sales & Marketing Management 156 (May Weeks, “Selling and Sales Management in Action: 2004): 28–34. Reward Preferences of Salespeople,” Journal of Personal Selling & Sales Management 12 (Summer 2Orville C. Walker, Jr., Gilbert A. Churchill, Jr., and 1992): 67–75. Neil M. Ford, “Where Do We Go from Here? Selected Conceptual and Empirical Issues 11Judith A. Ross, “Japan: Does Money Motivate?” Concerning the Motivation and Performance of the Harvard Business Review 75 (September–October Industrial Salesforce,” in Critical Issues in Sales 1997): 9. Management: State-of-the-Art and Future Research Needs, eds. Gerald Albaum and Gilbert A. Churchill, 12Christen P. Heide, Dartnell’s 30th Sales Force Jr. (Eugene, OR: Division of Research, College of Compensation Survey (Chicago: The Dartnell Business Administration, University of Oregon, Corporation, 1999): 43; see also Bridget McCrea, 1979): 25. “Hanging on to Good Sales Reps,” Industrial Distribution 90 (June 2001): 73–75. 3Barton A. Weitz, Harish Sujan, and Mita Sujan, “Knowledge, Motivation, and Adaptive Behavior: 13Donald L. Caruth and Gail D. Handlogten-Caruth, A Framework for Improving Selling Effectiveness,” “Finding Just the Right Formula,” American Journal of Marketing 50 (October 1986): 180. Salesman 49 (June 2004): 6–15. 4See Thomas R. Wotruba, “The Effect of Goal- 14Andy Cohen, “Battling the Competition’s Falling Setting on Performance of Independent Sales Agents Prices,” Sales & Marketing Management 155 (March in Direct Selling,” Journal of Personal Selling & Sales 2003): 12.

31451_13_notes.qxd 15/03/05 18:32 PM Page 411 Notes 411 15http://www.accountprosoftware.com/salescom- Marketing Management (January 1996): 30; mission.htm. Accessed 6/28/04. William H. Murphy and Peter A. Dacin, “Sales Contests: A Research Agenda,” Journal of Personal 16Ellen Neuborne, “Save Your Stars,” Sales & Selling & Sales Management 18 (Winter 1998): 1; Marketing Management 155 (March 2003): 36–39. Melanie Berger, “When Their Ship Comes In: How to Create an Incentive Program That Motivates All 17Donald L. Caruth and Gail D. Handlogten-Caruth, of Your Salespeople and Sends More Happy Winners “Compensating Sales Personnel,” American on That Coveted Trip,” Sales & Marketing Salesman 47 (April 2002): 6–15. Management 149 (April 1997): 60; Ajay Kalra and Mengze Shi, “Designing Optimal Sales Contests: A 18Ibid. Theoretical Perspective,” Marketing Science 20 (Spring 2001): 170–193. 19From “Salesforce Compensation Plans” by Amiya K. Basu, Rajiv Lal, V. Srinivasan and Richard Staelin 32Steve Donohue, “Sales Reps Go for Olympic Gold,” in Marketing Science 4 (Fall 1985): 270. Reprinted by Multichannel News (May 24, 2004): 22. permission of INFORMS. 33SalesDriver, www.salesdriver.com/tour/catalog.asp. 20Betsy Cummings and Erin Strout, “The Perfect Accessed 6/30/04. Plan,” Sales & Marketing Management 154 (February 2002): 53. 34William H. Murphy, Peter A. Dacin, and Neil M. Ford, “Sales Contest Effectiveness: An Examination 21Ram C. Rao, “Compensating Heterogeneous Sales- of Sales Contest Design Preferences of Field Sales forces: Some Explicit Solutions,” Marketing Science 9 Forces,” Journal of the Academy of Marketing Science (Fall 1990): 319. 32 (Spring 2004): 127–143. 22See William L. Cron, Alan J. Dubinsky, and Ronald 35“Super Sales Manager’s Source Book 2002.” E. Michaels, “The Influence of Career Stages on Components of Salesperson Motivation,” Journal of 36Sridhar N. Ramaswami and Jagdip Singh, Marketing 52 (January 1988): 78; Gilbert A. “Antecedents and Consequences of Merit Pay Churchill, Jr., Neil M. Ford, and Orville C. Walker, Fairness for Industrial Salespeople,” Journal of Jr., “Personal Characteristics of Salespeople and the Marketing 67 (October 2003): 46–66. Attractiveness of Alternative Rewards,” Journal of Business Research 7 (June 1979): 25; Ford, Churchill, 37Aaron Bernstein, “Women’s Pay: Why the Gap and Walker, “Differences in the Attractiveness of Remains a Chasm,” Business Week (June 14, 2004): Alternative Rewards among Industrial Salespeople: 58–59. Additional Evidence”; Ingram and Bellenger, “Personal and Organizational Variables: Their 38From a presentation by Ron Burke, Towers Perrin Relative Effect on Reward Valences of Industrial Consulting, at the New Horizons in Personal Selling Salespeople,” 198. and Sales Conference, July 14, 1996, Orlando, Florida. 23Jennifer Gilbert, “What Motivates Me,” Sales & Marketing Management 155 (February 2003): 39Betsy Cummings, Julia Chang, and Erin Strout, “All 30–35. for One,” Sales & Marketing Management 154 (August 2002): 53–54. 24Heide, Dartnell’s 30th Sales Force Compensation Survey, 121. 40“How to Reward Project Teams,” Harvard Management Update 5 (July 2000): 6–7. 25Ibid. 41From a presentation by Ron Burke, Towers Perrin 26Gene Garofalo, Sales Manager’s Desk Book (Engle- Consulting, at the New Horizons in Personal Selling wood Cliffs, NJ: Prentice-Hall, 1989): 128. and Sales Conference, July 14, 1996, Orlando, Florida. 27Concur Technologies www.concur.com/solu- 42Nancy Katz, “Getting the Most Out of Your tions/exp/default.htm. Accessed 6/28/04. Team,” Harvard Business Review 79 (September 2001): 22. 28Jay Boehmer, “Common T&E Expense Reporting Frauds,” Business Travel News 20 (August 11, 2003): 68. 43Michael Schrage, “A Lesson in Perversity,” Sales & Marketing Management 156 (January 2004): 28. 29“T&E Report,” Sales & Marketing Management 155 (July 2003): 62. 44Julia Chang and Erin Strout, “Care Package,” Sales & Marketing Management 154 (September 2002): 69. 30“Super Sales Manager’s Source Book 2002,” Personal Selling Power 21 (Special Edition 2002): 16. 45Sonke Albers, Manfred Krafft, and Wilhelm Bielert, “Global Salesforce Management: A Comparison of 31Andy Cohen, “Why Some Contests Are Losers,” German and U.S. Practices,” in Emerging Trends in Sales & Marketing Management (August 1996): 39; Sales Thought and Practice, eds. Gerald J. Bauer, Mark Thayer C. Taylor, “Selling with Sales Contests,” S. Bauchalk, Thomas N. Ingram, and Raymond W. Sales & Marketing Management (June 1995): 35; LaForge (Westport, CT: Quorum Books, 1998). Andy Cohen, “Motivating the Masses,” Sales &

31451_13_notes.qxd 15/03/05 18:32 PM Page 412 412 Notes 46John F. Tanner, Jr. and George Dudley, Piercy, “Examining Business Strategy, Sales “International Differences—Examining Two Management, and Salesperson Antecedents of Sales Assumptions about Selling,” reported in Baylor Organization Effectiveness,” Journal of Personal Business Review (Fall 2003): 44–45. Selling & Sales Management 21 (Spring 2001): 109–122; Ken Grant and David W. Cravens, 47Richard B. Peterson, Nancy K. Napier, and Won “Examining the Antecedents of Sales Organization Sul-Shim, “Expatriate Management: A Comparison Effectiveness: An Australian Study,” European of MNCs Across Four Parent Countries,” Journal of Marketing 33 (Issue 9/10): 945–957; Thunderbird International Business Review 42 Nigel F. Piercy, David W. Cravens, and Neil A. (March–April 2000): 145–166. Morgan, “Relationships Between Sales Management Control, Territory Design, Salesforce Performance 48Al Wright, “Don’t Settle for Less: Global and Sales Organization Effectiveness,” British Compensation Programs Need Global Compensation Journal of Management 10 (Issue 2): 95–111; Emin Tools,” Employee Benefit Plan Review 58 (March Babakus, David W. Cravens, Ken Grant, Thomas N. 2004): 14–18. Ingram, and Raymond W. LaForge, “Investigating the Relationships Between Sales Management 49Earl D. Honeycutt, Jr., and John B. Ford, “Guidelines Control, Sales Territory Design, Salesperson for Managing an International Sales Force,” Industrial Performance, and Sales Organization Effectiveness,” Marketing Management (March 1995): 135. International Journal of Research in Marketing 13 (Summer 1996): 345–363. 50Michele Marchetti, “Paring Expatriate Pay,” Sales & Marketing Management (January 1996): 28; Timothy 2Adapted from David W. Cravens, Thomas N. Dwyer, “Trends in Global Compensation,” Ingram, Raymond W. LaForge, and Clifford E. Compensation and Benefits Review 31 (July/August Young, “Behavior-Based and Outcome-Based 1999): 48–52. Salesforce Control Systems,” Journal of Marketing 57 (October 1993): 47–59. Reprinted by permission of 51Charlene Marmer Solomon, “Global Compen- American Marketing Association. sation: Learn the ABCs,” Personnel Journal (July 1995): 70. 3David W. Cravens, Thomas N. Ingram, Raymond W. LaForge, and Clifford E. Young, “Hallmarks of 52From “Global Gamble” by Michele Marchetti from Effective Sales Organizations,” Marketing Sales & Marketing Management 148 (July 1996): Management 1 (March 1992): 56. 64–69. Copyright © VNU Business Media Inc. Reprinted by permission. 4Much of the discussion in this section comes from Alan J. Dubinsky and Richard W. Hansen, “The Sales 53Ellen Neuborne, “A Compensation Plan Checkup,” Force Management Audit,” California Management Sales & Marketing Management 155 (May 2003): Review (Winter 1981): 86. 38–41. 5From “The Sales Force Management Audit” by 54Michelle Gillan and Erin Strout, “E-Motivation,” Alan J. Dubinsky and Richard W. Hansen. Sales & Marketing Management 155 (April 2003): 50. Copyright © 1981, by The Regents of the University of California. Reprinted from the 55Adapted from Erin Strout, “What Would You California Management Review, Vol. 24, No. 2. By Do?” Sales & Marketing Management 153 (March permission of The Regents. 2001): 78. 6Meridian’s, http://www.meridiansds.com/Case 56This case is developed from information in “What Studies/Testimonials.htm. Accessed 7/21/04. Would You Do?” Sales & Marketing Management 150 (June 1998): 100–101. 7From Dubinsky and Hansen, “The Sales Force Management Audit.” Module 9 8George Smith, Dorris Ritter, and William Tuggle, 1For a more complete discussion of this issue, see “Benchmarking: The Fundamental Question,” Orville C. Walker, Jr., Gilbert A. Churchill, Jr., and Marketing Management 2 (1993): 43. Neil M. Ford, “Where Do We Go from Here? Selected Conceptual and Empirical Issues 9Best Practices LLC Web site, http://www.best-in- Concerning the Motivation and Performance of the class.com/site_tools/faq.htm. Accessed 6/17/04. Industrial Salesforce,” in Critical Issues in Sales Management: State-of-the-Art and Future Research 10Stanley Brown, “Don’t Innovate—Imitate!” Sales Needs, eds.; Gerald Albaum and Gilbert A. & Marketing Management 147 (January 1995): 24. Churchill, Jr. (Eugene, OR: University of Oregon, 1979). Also see David Cravens, Thomas Ingram, 11Adapted from George Smith, Dorris Ritter, and Raymond LaForge, and Clifford Young, “Behavior- William Tuggle, “Benchmarking: The Fundamental Based and Outcome-Based Salesforce Control Question” in Marketing Management (1993): 43–48. Systems,” Journal of Marketing 57 (October 1993): Reprinted by permission of American Marketing 47; Arthur Baldauf, David W. Cravens, and Nigel F. Association.

31451_13_notes.qxd 15/03/05 18:32 PM Page 413 Notes 413 12C. Jackson Grayson, “Benchmarking,” in 24Bridget McCrea, “A-B-C, Easy as 1-2-3,” Marketing Encyclopedia, ed. Jeffrey Heilbrunn Industrial Distribution 92 (October 2003): H1–H4. (Chicago: American Marketing Association, 1995): 324. 25Jagdish Sheth and Rajendra Sisodia, “Improving Marketing Productivity,” in Marketing Encyclopedia, 13Paulette Kitchen, “Sales Quality,” Sales Manager’s ed. Jeffrey Heilbrunn (Chicago: American Marketing Bulletin 1351 (April 1995): 3. Association, 1995): 217. 14“Benchmarking Made Easy: Benchmarking Module 10 Websites,” The Public Manager: The New Bureaucrat 27 (Summer 1998): 62. 1Adapted from Jan P. Muczyk and Myron Gable, “Managing Sales Performance through a 15Grayson, “Benchmarking.” Comprehensive Performance Appraisal System,” Journal of Personal Selling & Sales Management (May 16“The ‘What,’ ‘Why,’ and ‘How’ of Benchmarking” 1987): 41; Steven Thomas and Robert Bretz, by Gary Beasley and Joseph Cook from Agency Sales “Research and Practice in Performance Appraisal: Magazine 25 (June 1995): 52–56. Copyright © 1995, Evaluating Employee Performance in America’s Manufacturers’ Agents National Association. P.O. Largest Companies,” SAM Advanced Management Box 3467, Laguna Hills, CA 92654-3467. Journal (Spring 1994): 28. Harry Levinson, Phone (949) 859-4040; toll free: (877) 626-2776; fax: “Management by Whose Objectives,” Harvard (949) 855-2973. E-mail: [email protected]; Business Review 81 (January 2003): 107–116. Website: http://www.manaonline.org. All rights reserved. Reproduction without permission is strickly 2For more complete results, see Donald Jackson, Jr., prohibited. John Schlacter, and William Wolfe, “Examining the Bases Utilized for Evaluating Salespeople’s 17Michael Morris, Duane Davis, Jeffrey Allen, Ramon Performance,” Journal of Personal Selling & Sales Avila, and Joseph Chapman, “Assessing the Management 15 (Fall 1995): 57; William Wolfe, John Relationships among Performance Measures, Schlacter, and Donald Jackson, Jr., “Examining How Managerial Practices, and Satisfaction When Evaluating Sales Managers Evaluate Their Salespeople’s the Salesforce: A Replication and Extension,” Journal Performance,” National Conference in Sales of Personal Selling & Sales Management 11 (Summer Management Proceedings, ed. Timothy Longfellow, 1991): 25; Geoffrey Brewer, “Measuring Sales (Normal, IL: Illinois State University, 1995): 75; Effectiveness,” Sales & Marketing Management 152 Michael H. Morris and Sean R. Aten, “Sales Force (October 2000): 136. Performance Appraisal: Contemporary Issues and Practices,” in Progress in Marketing Thought, eds. L. 18From “Measuring Sales Effectiveness” by Geoffrey M. Capella, H. W. Nash, J. M. Starling, and R. D. Brewer from Sales & Marketing Management 152 Taylor (Mississippi State University, MS: Southern (October 2000): 136. Copyright © VNU Business Marketing Association, 1990): 413; Michael H. Media Inc. Reprinted by permission. Morris, Duane L. Davis, Jeffrey W. Allen, Ramon A. Avila, and Joseph Chapman, “Assessing the 19Web Survey, http://www.apogeeanalytics.com. Relationships between Performance Measures, Accessed 11/15/02; NetReflector, http://www.netre Managerial Practices, and Satisfaction when flector.com. Accessed 6/15/04. Evaluating the Salesforce,” Journal of Personal Selling & Sales Management (Summer 1991). 20Nigel F. Piercy, “The Marketing Budgeting Process: Marketing Management Implications,” Journal of 3Betsy Cummings and Erin Strout, “Tell It Like It Marketing (October 1987): 45. Is,” Sales & Marketing Management 153 (August 2001): 59–60. 21For a more complete presentation of this concept, see J. S. Schiff, “Evaluate the Sales Force as a 4Robert Hoffman, “Ten Reasons You Should Be Business,” Industrial Marketing Management 12 Using 360-Degree Feedback,” HR Magazine 40 (1983): 131. (April 1995): 82; Dana Ray, “See the Big Picture,” Personal Selling Power (October 1995): 3. 22Thomas Stevenson, Frank Barnes, and Sharon Stevenson, “Activity-Based Costing: An Emerging 5Andie Evans, “From Every Angle,” Training 38 Tool for Industrial Marketing Decision Makers,” (September 2001): 22. Journal of Business and Industrial Marketing 8 (1993): 40; William M. Baker, “Understanding 6Clive Fletcher, “Circular Argument,” People Activity-Based Costing,” Industrial Management 36 Management 4 (October 1998): 46. (March/April 1994): 28. 7Fernando Jaramillo, Francois A. Carrillat, and 23Reprinted by permission of Harvard Business William B. Locander, “Starting to Solve the Method Review. From “Measure Costs Right: Make the Right Puzzle in Salesperson Self-Report Evaluations,” Decisions” by Robin Cooper and Robert S. Kaplan, Journal of Personal Selling & Sales Management 23 (September/October 1988): 96–103. Copyright © (Fall 2003): 369–377. 1988 by the Harvard Business School Publishing Corporation, all rights reserved.

31451_13_notes.qxd 15/03/05 18:32 PM Page 414 414 Notes 8Robert W. Eichinger and Michael M. Lombardo, based Salesforce Control Systems,” Journal of Marketing “Knowledge Summary Series: 360-Degree Assessment,” 57 (October 1993): 47–59; and Richard Oliver and Erin Human Resource Planning 26 (2003): 34–44. Anderson, “An Empirical Test of the Consequences of Behavior- and Outcome-based Sales Control Systems,” 9Adapted from Allan Church, “First-Rate Multirater Journal of Marketing 58 (October 1994): 53–67. Feedback,” Training & Development 49 (August 1995): 42–43; and Scott Wimer and Kenneth M. 21Arthur Baldauf, David W. Cravens, and Kegn Grant, Nowack, “13 Common Mistakes Using 360-Degree “Consequences of Sales Management Control in Feedback,” Training & Development 52 (May 1998): Field Sales Organizations: A Cross-National 69–78; Bret J. Becton and Mike Schraeder, Perspective,” International Business Review 11 “Participant Input into Rater Selection: Potential (October 2002): 577–609. Effects on the Quality and Acceptance of Ratings in the Context of 360-Degree Feedback,” Public 22Richard Oliver and Erin Anderson, “Behavior- and Personnel Management 33 (Spring 2004): 23–32. Outcome-based Sales Control Systems: Evidence and Consequences of Pure-Form and Hybrid 10David W. Bracken, Lynn Summers, and John Fleenor, Governance,” Journal of Personal Selling & Sales “High-Tech 360,” T & D 52 (August 1998): 42. Management 15 (Fall 1995): 1. 11Information obtained from http://www.survey- 23Manfred Krafft, “An Empirical Investigation of the tracker.com and http://www.cognology.biz. Accessed Antecedents of Sales Force Control Systems,” 7/12/04. Journal of Marketing 63 (July 1999): 120–134. 12Helen Rheem, “Performance Management: A 24Sanjeev Agarwal, “Impact of Job Formalization and Progress Report,” Harvard Business Review Administrative Controls on Attitudes of Industrial (March–April 1995): 11. Salespersons,” Industrial Marketing Management 28 (July 1999): 359–368. 13William Fitzgerald, “Forget the Form in Performance Appraisals,” HR Magazine 40 25David W. Cravens, Greg W. Marshall, Felicia G. (December 1995): 134. Lassk, and George S. Low, “The Control Factor,” Marketing Management 13 (January/February 14Rheem, “Performance Management.” 2004): 39–44. 15David Cravens, Raymond LaForge, Gregory Pickett, 26Charles E. Pettijohn, Linda S. Pettijohn, and Albert and Clifford Young, “Incorporating a Quality J. Taylor, “An Exploratory Analysis of Salesperson Improvement Perspective into Measures of Salesperson Perceptions of the Criteria Used in Performance Performance,” Journal of Personal Selling & Sales Appraisals, Job Satisfaction, and Organizational Management 13 (Winter 1993): 1. Commitment,” Journal of Personal Selling & Sales Management 20 (Spring 2000): 77–80. 16Thomas R. Wotruba, “The Transformation of Industrial Selling: Causes and Consequences,” 27Donald Jackson, Jr., John Schlacter, and William Industrial Marketing Management 25 (September Wolfe, “Examining the Bases Utilized for 1996): 327. Evaluating Salespeople’s Performance,” Journal of Personal Selling & Sales Management 15 (Fall 17Khalid A. Aldakhilallah and Diane H. Parente, 1995): 57–65. “Redesigning a Square Peg: Total Quality Management Performance Appraisals,” Total Quality Management 28Gary Summy, “Sales Training 101: Best Practices for 13 (2002): 39–51. For further discussion on TQM and Keeping Pace with Rapid Change in Selling,” presenta- the salesforce, see Stephen B. Knouse and David tion at the National Conference in Sales Management, Strutton, “Molding a Total Quality Salesforce Through April 5, 2002. Part of salespeople’s compensation at Managing Empowerment, Evaluation, and Reward and IBM is based on customer satisfaction. Recognition Processes,” Journal of Marketing Theory & Practice 4 (Summer 1996): 24–35. 29Arun Sharma and Dan Sarel, “The Impact of Customer Satisfaction–Based Incentive Systems on Salespeople’s 18Adapted from Erin Anderson and Richard L. Oliver, Customer Service Response: An Empirical Study,” “Perspectives on Behavior-based versus Outcome- Journal of Personal Selling & Sales Management 15 based Salesforce Control Systems,” Journal of (Summer 1995): 17; Bulent Menguc and A. Tansu Marketing 51 (October 1987): 86, published by the Barker, “The Performance Effects of Outcome-Based American Marketing Association. Incentive Pay Plans on Sales Organizations: A Contextual Analysis,” Journal of Personal Selling & Sales 19For a more complete discussion and theoretical Management 23 (Fall 2003): 341–358. rationale for these perspectives, see Erin Anderson and Richard L. Oliver, “Perspectives on Behavior-based 30Douglas M. Lambert, Arun Sharma, and Michael versus Outcome-based Salesforce Control Systems,” Levy, “What Information Can Relationship Journal of Marketing 51 (October 1987): 76. Marketers Obtain from Customer Evaluation of Salespeople?” Industrial Marketing Management 26 20David Cravens, Thomas Ingram, Raymond LaForge, (March 1997): 177. and Clifford Young, “Behavior-based and Outcome-

31451_13_notes.qxd 15/03/05 18:32 PM Page 415 Notes 415 31John Hill and Arthur Allaway, “How U.S.-based Investigation of Consequences of Failure,” Journal of Companies Manage Sales in Foreign Countries,” Business & Industrial Marketing 19 (2004): 39–48. Industrial Marketing Management 22 (1993): 7. 44http://www.synygy.com/news/press_release.asp? 32Dominique Rouzies and Anne Macquin, “An doc_idϭ6. Accessed 7/12/04. Exploratory Investigation of the Impact of Culture on Sales Force Management Control Systems in 45David J. Good and Charles H. Schwepker, Jr., “Sales Europe,” Journal of Personal Selling & Sales Quotas: Critical Interpretations and Implications,” Management 23 (Winter 2003): 61–72. Review of Business 22 (Spring 2001): 32–36. 33Jackson, Schlacter, and Wolfe, “Examining the Bases 46Ibid. Utilized for Evaluating Salespeople’s Performance.” 47Jackson, Schlacter, and Wolfe, “Examining the Bases 34Ibid. Utilized for Evaluating Salespeople’s Performance.” 35Goutam Challagalla and Tasaduq Shervani, 48See Mark R. Edwards, W. Theodore Cummings, “Dimensions and Types of Supervisory Control: and John L. Schlacter, “The Paris-Peoria Solution: Effects of Salesperson Performance and Satisfaction,” Innovations in Appraising Regional and International Journal of Marketing 60 (January 1996): 89. Sales Personnel,” Journal of Personal Selling & Sales Management (November 1984): 27. 36For a review and more complete discussion of this approach, see Adrian B. Ryans and Charles B. 49Adapted from Mark R. Edwards, W. Theodore Weinberg, “Territory Sales Response,” Journal of Cummings, and John L. Schlacter, “The Paris-Peoria Marketing Research (November 1979): 453; Adrian Solution: Innovations in Appraising Regional and B. Ryans and Charles B. Weinberg, “Territory Sales International Sales Personnel,” Journal of Personal Response Models: Stability Over Time,” Journal of Selling & Sales Management (November 1984): 29. Marketing Research (May 1987): 229. Used with permission. 37From “A Market Response Model for Sales 50Eastman Chemical Company, “Checking Management Decision Making” by Raymond LaForge Customer Value Through Continual Improvement” and David Cravens. Copyright © 1981 by Pi Sigma survey. Epsilon. From Journal of Personal Selling & Sales Management (Fall/Winter 1981–82): 14. Reprinted 51For a comprehensive scale for evaluating salesperson with permission of M. E. Sharpe, Inc. performance, see Douglas N. Behrman and William D. Perreault, Jr., “Measuring the Performance of 38Adapted from Adrian B. Ryans and Charles B. Industrial Salespersons,” Journal of Business Research Weinberg, “Territory Sales Response Models: Stability 10 (1982): 355. Over Time,” Journal of Marketing Research (May 1987): 231, published by the American Marketing 52Jim Meade, “Automated Performance Appraisal,” Association. HR Magazine 43 (October 1998): 42. 39From “Selling and Sales Management in Action” by 53Mark McMaster and Andy Cohen, “Should You Rank David J. Good and Robert W. Stone. Copyright © Your Salespeople?” Sales & Marketing Management 1991 by Pi Sigma Epsilon. From Journal of Personal 153 (August 2001): 13. Selling & Sales Management, vol. 11, no. 3 (Summer 1991): 57–60. Reprinted with permission of M. E. 54Jan P. Muczyk and Myron Gable, “Managing Sharpe, Inc. Sales Performance Through a Comprehensive Performance Appraisal System,” Journal of Personal 40For specific examples of regression analysis used to Selling & Sales Management (May 1987): 46. Used establish territory sales quotas, see David W. Cravens, with permission. Robert B. Woodruff, and James C. Stamper, “An Analytical Approach for Evaluating Sales Territory 55McMaster and Cohen, “Should You Rank Your Performance,” Journal of Marketing (January 1972): Salespeople?” 31; David W. Cravens and Robert B. Woodruff, “An Approach for Determining Criteria of Sales 56Edwards, Cummings, and Schlacter, “The Paris- Performance,” Journal of Applied Psychology (June Peoria Solution,” 30. 1973): 240. 57Adapted from Mark R. Edwards, W. Theodore 41Erin Strout, “Is Your Pay Plan on Target?” Sales & Cummings, and John L. Schlacter, “The Paris-Peoria Marketing Management 154 (January 2002): 18. Solution: Innovations in Appraising Regional and International Sales Personnel,” Journal of Personal 42Jhinuk Chowdhury, “The Motivational Impact of Selling & Sales Management (November 1984): 31. Sales Quotas on Effort,” Journal of Marketing Used with permission. Research 30 (February 1993): 28. 58For a more complete discussion of this process, see A. 43Charles H. Schwepker, Jr. and David J. Good, Benton Cocanougher and John M. Ivancevich, “BARS’ “Understanding Sales Quotas: An Exploratory Performance Rating for Sales Force Personnel,” Journal of Marketing (July 1978): 87.

31451_13_notes.qxd 15/03/05 18:32 PM Page 416 416 Notes 59A. Benton Cocanougher and John M. Ivancevich, 74Betsy Wiesendanger, “Making (and Staying on) the “BARS’ Performance Rating for Sales Force Team,” Selling (April 1996): 46. Personnel,” reprinted from Journal of Marketing 42 (July 1978): 91, published by the American 75Adapted from Peter Allan, “Designing and Marketing Association. Implementing and Effective Employee Appraisal System,” Review of Business 16 (Winter 1994): 3–8; 60Bernard Jaworski and Ajay Kohli, “Supervisory and Minda Zelin, “How to Avoid Lawsuits,” Sales & Feedback: Alternative Types and Their Impact Marketing Management (December 1994): 86. on Salespeople’s Performance and Satisfaction,” Journal of Marketing Research 28 (May 1991): 190. 76For examples of these studies, see A. Parasuraman and Charles M. Futrell, “Demographics, Job 61Cathy Owens Swift and Constance Campbell, “The Satisfaction, and Propensity to Leave of Industrial Effect of Vertical Exchange Relationships on the Salesmen,” Journal of Business Research 11 (1983): Performance Attributions and Subsequent Actions of 33; Charles M. Futrell and A. Parasuraman, “The Sales Managers,” Journal of Personal Selling & Sales Relationship of Satisfaction and Performance to Management 15 (Fall 1995): 45. Salesforce Turnover,” Journal of Marketing (Fall 1984): 33; Steven Brown and Robert Peterson, 62Thomas E. DeCarlo and Thomas W. Leigh, “Antecedents and Consequences of Salesperson Job “Impact of Salesperson Attraction on Sales Managers’ Satisfaction: Meta-Analysis and Assessment of Attributions and Feedback,” Journal of Marketing 60 Causal Effects,” Journal of Marketing Research 30 (April 1996): 47. (February 1993): 63; Emin Babakus, David W. Cravens, Mark Johnston, and William C. Moncrief, 63Greg Marshall, John Mowen, and Keith Fabes, “Examining the Role of Organizational Variables in “The Impact of Territory Difficulty and Self versus the Salesperson Job Satisfaction Model,” Journal of Other Ratings on Managerial Evaluations of Sales Personal Selling & Sales Management 16 (Summer Personnel,” Journal of Personal Selling & Sales 1996): 33; Earl Naumann, Scott M. Widmeier, and Management 12 (Fall 1992): 35. Donald W. Jackson, Jr., “Examining the Relationship Between Work Attitude and Propensity 64“Study Shows Appraisals Favor Male Workers,” HR to Leave Among Expatriate Salespeople,” Journal of Briefing (July 1, 2002): 7. Personal Selling & Sales Management 20 (Fall 2002): 227–242. 65Greg Marshall and John Mowen, “An Experimental Investigation of the Outcome Bias in 77For examples of this research, see Richard P. Salesperson Performance Evaluations,” Journal of Bagozzi, “Performance and Satisfaction in an Personal Selling & Sales Management 13 (Summer Industrial Sales Force: An Examination of Their 1993): 31. Antecedents and Simultaneity,” Journal of Marketing (Spring 1980): 65; Douglas N. Behrman and William 66Peter Allan, “Designing and Implementing and D. Perreault, Jr., “A Role Stress Model of the Effective Employee Appraisal System,” Review of Performance and Satisfaction of Industrial Business 16 (Winter 1994): 3. Salespersons,” Journal of Marketing (Fall 1984): 9; Steven Brown and Robert Peterson, “The Effect of 67Robert Trent and Robert Monczka, “Guidelines for Effort on Sales Performance and Job Satisfaction,” Developing Team Performance Appraisal Systems,” Journal of Marketing 58 (April 1994): 70. NAPM Insights (July 1994): 30. 78Christian Homburg and Ruth M. Stock, “The 68Michael Campion and A. Catherine Higgs, “Design Link Between Salespeople’s Job Satisfaction and Work Teams to Increase Productivity and Satisfaction,” Customer Satisfaction in a Business-to-Business HR Magazine 40 (October 1995): 101. Context: A Dyadic Analysis,” Journal of the Academy of Marketing Science 32 (Spring 2004): 69Jack Zigon, “Team Performance Measurement,” 144–158. Journal for Quality & Participation 21 (May/June 1998): 48–54. 79For a complete discussion of the scale, see Gilbert A. Churchill, Jr., Neil M. Ford, and Orville C. Walker, 70Trent and Monczka, “Guidelines for Developing Jr., “Measuring the Job Satisfaction of Industrial Team Performance Appraisal Systems.” Salesmen,” Journal of Marketing Research (August 1974): 254. For validation support, see Charles M. 71Profile Booklet, Teamwork Effectiveness/Attitude Futrell, “Measurement of Salespeople’s Job Satisfac- Measurement (TEAM) (New York: Education tion: Convergent and Discriminant Validity of Research, 1994). Reprinted with permission from Corresponding INDSALES and Job Descriptive Education Research, NY: Tel: 212-661-9280. Fax: Index Scales,” Journal of Marketing Research 212-953-5899. (November 1979): 594; Rosemary Lagace, Jerry Goolsby, and Jule Gassenheimer, “Scaling and 72Ibid. Measurement: A Quasi-Replicative Assessment of a 73Taken from Jack Zigon, “Team Performance Measurement,” Compensation and Benefits Review 29 (January/February 1997): 38–47.

31451_13_notes.qxd 15/03/05 18:32 PM Page 417 Notes 417 Revised Version of INDSALES,” Journal of Personal 4Chronic ulcers are ulcers of unpredictable duration. Selling & Sales Management 13 (Winter 1993): 65. The healing process can easily go on for several See also Sarath A. Nonis and S. Altan Erdem, months. The most common causes of chronic ulcers “A Refinement of INDSALES to Measure Job are continuous pressure on a particular part of Satisfaction of Sales Personnel in General Marketing the body (e.g., bedsores) or vascular or circulatory Settings,” Journal of Marketing Management 7 problems. A chronic ulcer can be shallow or (Spring/Summer 1997): 34. deep, and in serious cases can lead to necrosis, gan- grene, and may even require amputation of the 80James M. Comer, Karen A. Machleit, and Rosemary affected part. R. Lagace, “Psychometric Assessment of a Reduced Version of INDSALES,” Journal of Business Research 5Throughout the case, unless stated otherwise, the 18 (1989): 295–296. Reprinted by permission of market shares of specific products refer to the phar- Elsevier Science. macies channel, which was monitored by IMS, a market research services company. Market 81Futrell and Parasuraman, “The Relationship of share data for hospitals were difficult to estimate, as Satisfaction and Performance to Salesforce Turnover.” they depended on the outcome of the bidding process. 82Jaworski and Kohli, “Supervisory Feedback.” 6In 1999, S&N had bid in almost 500 auctions. 83Jeffrey K. Sager, Junsuab Yi, and Charles M. Futrell, “A Model Depicting Salespeople’s 7Galicia has an area of 29,575 km2 and is almost Perceptions,” Journal of Personal Selling & Sales square in shape. In 1998 its population was approxi- Management 18 (Summer 1998): 1; Gregory A. mately 2,716,000. Asturias is elongated and narrow in Rich, “The Sales Manager as a Role Model: Effects shape, with an area of 10,604 km2 (approx. 260 ϫ 50 on Trust, Job Satisfaction, and Performance of km), and in 1998 had 1,060,000 inhabitants. Salespeople,” Journal of the Academy of Marketing Science 25 (Fall 1997): 319; Melissa Campanelli, 8The company IMS conducted a panel study of phar- “What Price Sales Force Satisfaction,” Sales & maceutical retailers. Usually, it only provided aggre- Marketing Management (July 1994): 37; Mary E. gate data for the whole of Spain. The territorial sales Shoemaker, “Leadership Practices in Sales Managers analysis (análisis territorial de ventas, ATV) was a spe- Associated with the Self-Efficacy, Role Clarity, cial service that IMS provided, offering the same data and Job Satisfaction of Individual Industrial broken down by geographical areas similar in size to Salespeople,” Journal of Personal Selling & Sales postal districts. Management 19 (Fall 1999): 1–20 9606,000 pesetas in October; 1,042,000 in November; 84Melissa Campanelli, “What Price Sales Force 1,779,000 in December 1999; and 1,706,000 in Satisfaction.” January 2000. Cases 10134,000 pesetas in October; 252,000 in November; 528,000 in December 1999; and 570,000 in January Smith & Nephew—Innovex 2000. 1Allevyn®, Opsite®, and Intrasite® Gel are registered Dairyland Seed Company trademarks of T. S. Smith & Nephew Ltd. Innovex™ and Quintiles™ are registered trademarks of Quintiles 1Estimation by Dairyland executives, based on Transnational Corporation. reports of the American Seed Trade Association. Assuming the development of high-yielding vari- 2Also known as health centres, basic health areas, or, eties of soybean. Seeds out of the bag (does not previously, outpatient clinics. They delivered primary include bin seed). care services to the population covered by Spanish Social Security. There were some 3,000 primary care 2Monsanto press releases are available online at centres in the country as a whole, each tied to a refer- http://www.monsanto.com/monsanto/media. ral hospital. A hospital and the group of primary care centres tied to it made up what was known as a health 3Dairyland. management area. Adams Brands 3Only products classed as “medical accessories” (under Royal Decree Legislative 9/1996 of January 1Company records and industry data. 15, which regulates the selection of medical acces- sories, their financing from Social Security funds Modern Plastics or government funds earmarked for healthcare, and the basis on which they may be supplied and 1This information was developed from a field survey dispensed to outpatients) could apply for conducted by Modern Plastics. reimbursement. 2Developed from several trade journals.

31451_13_notes.qxd 15/03/05 18:32 PM Page 418 418 Notes Dura-plast, Inc. (A): 3Manufacturing Representatives have been employed Global Account Management by many original equipment manufacturers because of their knowledge and ties within a particular indus- 1The unit of currency is the Norwegian krone, which try. Manufacturer’s Representatives represent multi- is abbreviated NOK. NOK 1 = 100 ore. Note that all ple, noncompeting manufacturers, and are generally figures are in U.S. dollars unless otherwise noted. The granted exclusive territories. They represent the assumed exchange rate is 7.00 NOK to $1 U.S. supplier, but are not usually involved in distribution or installation. MRs do not take possession or 2Agents are generally businesses that contract with ownership of equipment—they only operate as original equipment manufacturers to sell their prod- agents on behalf of (usually) multiple principals ucts for a given period of time. Agents take ownership (i.e., manufacturers). of the products and usually have protected territories.

31451_14_index.qxd 15/03/05 18:33 PM Page 419 Index Bold indicates key terms. single factor models and, 94–95, B 94 (figure), 95 (exhibit) A Background investigation, 147, 148 Amendment to Fair Credit Reporting (exhibit) ABC. See Activity-based costing Act of 1997, 150 (exhibit) ABC Company, 85, 86, 87, 88 Amendment to Fair Credit Absenteeism, job satisfaction and, 297 American Airlines, 45 Reporting Act and, 150 (exhibit) Absorption training, 174 American Express, 79 Account opportunity, 95 American Management credit check and, 148 (exhibit) AccountPro, 221 critical incident technique and, 148 Account targeting strategy, 63–64 Association, 172 Achieving congruence, 130–131 American Marketing Association, 172 (exhibit) American Productivity and Quality customer opinion and, 148 (exhibit) at Hershey Chocolate, 131 personal habits and, 148 (exhibit) job preview and, 130 Center, 249 reference check and, 147, 148 Achieving realism, 130–131 American Society of Training and Activity-based costing (exhibit) Development, 172 (exhibit) Bakiewicz, Suzanne, 192 (ABC), 260 Americans with Disabilities Act Bax Global, 173 Adaptive selling, 25 Behavioral criteria, 277, 278 Adelphia Communications, 202 of 1990, 150 (exhibit) Administrative orientation Amoral management, 200–204, (exhibit), 278 (figure), 279 Behaviorally anchored rating scales vs. entrepreneurial orientation, 11 202 (exhibit) ADP. See Automatic Data Processing Ansir International, 161 salesperson performance evaluation Advancement opportunity, 39–40 Anticipation, of problems, and and, 286 (exhibit), 291, Advertisement, 2 292 (exhibit) leadership skills, 193–194 marketing communication and, 56 Apathetics, 206 Behavioral simulations (figure), 57, 57 (figure) Apogee Analytics, 251 games and, 173 Apples and Oranges (board role playing and, 173 recruitment and, 138, 138 (exhibit) sales training methods and, 173 recruitment and selection strategy game), 173 Armstrong World Industries, 171 Behavior approach, sales leadership and, 136, 136 (exhibit) ASG. See Automotive Systems Group and, 192 Age Discrimination in Employment Assessment centers, evaluation and Behavior-based perspective, Act of 1967, 150 (exhibit) hiring and, 147 salesperson performance evalua- AIDA (attention, interest, desire, and Assistance programs, chemical abuse tion and, 275–277, 276 (exhibit) action), 27 and dependence issues and, 205 Behavior simulations, computer- Allied Office Products, 15, 272 AT & T, 39, 193, 249 based, 173 Australia, 231, 276 sales contests at, 230 Austria, 276 Benchmarking, 249–250 salesperson performance evaluation Automatic Data Processing (ADP), goals of, 250 at Hormel Foods Corporation, 250 at, 273 15, 165 keys to successful, 250 (exhibit) Allocation of selling effort, 93, 93 sales managers at, 1–2 process of, 249, 250 (figure) sales training at, 167, 176 Web services, 266 (figure), 94–96, 94 (figure) Automotive Systems Group (ASG), 6 analytical approaches to, 94–96, Autonomy, sales professionalism The Benchmarking Network, 249 Best Buy, 24, 57–58 94 (figure) and, 22 Best Practices, 249, 266 decision models and, 94 (figure), Avon, 43, 220 Bias, salesperson performance Azanda Network Devices, 71 95–96 evaluation and, 291–292 portfolio models and, 94 (figure), 95, 96 (figure) 419

31451_14_index.qxd 15/03/05 18:33 PM Page 420 420 Index Bonuses, job offer and, 149 Business unit portfolio, 52 Citigroup, 245 Bose Corporation, 6 Buyers, types of, and sales training, City Wholesale Bostic, Laura, 159 Bottom-up approaches, 117, 118 167, 168 (exhibit) salesperson performance evaluation Buying centers, 62 at, 271 (figure), 122–123, 124 Delphi method and, 123, team selling and, 69, 70 (figure) Civil Rights Act of 1964, 150 Buying needs, 62–63, 63 (exhibit) (exhibit) 126 (exhibit) Buying Power Index (BPI), jury of executive opinion method Civil Rights Act of 1991, 150 120–121, 122 (exhibit) (exhibit) and, 123, 126 (exhibit) Buying process, 62 sales composite method and, Buying situation, 61–62 Clampitt, Jane Hrehocik, 14, 51, 60 123, 126 (exhibit) C survey of buyer intentions method Classroom/conference train- Cable Television Advertising Bureau, ing, 172 and, 123, 126 (exhibit) 229 BPI. See Buying Power Index Clopton, Douglas, 15, 131, Breakdown approach, for calculating Canada, 231 133, 134 Canned sales presentation, 21 salesforce size, 99–100 Canon USA, 163 Coaching Breakdown methods Career builder.com, 138 cognitive feedback and, 198, CareerEthic Inventory, 146 198 (exhibit) Buying Power Index and, Career fairs, 140 feedback and, 198, 198 (exhibit) 120–121, 122 (exhibit) Career Journal, 237 at KV Pharmaceutical Cash, as incentive reward, 216 Company, 199 market factor methods and, outcome feedback and, 198 120–121, 123 (exhibit) (exhibit) recency principle and, 198 Catalyst, Inc., 39 repetition and, 198 Breakdown methods, and forecasts, Catholic Charities of Kansas, 15 sales leadership and, 197–199, 120–121 Center for Creative Leadership, 172 198 (exhibit) Bridge, Tony, 2 (exhibit), 211 Coca-Cola, 199 Brooks Group, 173, 175 Centers for Medicare and Medicaid Code of ethics Brown-Forman Corporation, 15 Services, 9 management ethics and, 203, major accounts organization Centralization, sales organization 203 (exhibit) at, 89 structure and, 81, 84–85, sales professionalism and, 22 territorial design at, 102 84 (exhibit) sales training and, 178 Burlington Industries, 207 Central Missouri State University, 140 Coercive power, 191 Business consultant, 30 Centurion Specialty Care, 31 Cognitive feedback, 198, 198 Businesses, existing Century Maintenance Supply, 191–192 (exhibit) order-takers in, 42–43 Century 21 People Services Collaborative relationship, 64–65, personal selling jobs in, 42–43 Realty, 12 Businesses, new Channel conflict, 71–72 64 (exhibit), 65 (figure), 66 order-getters in, 42 Charles Schwab, 13 (exhibit) personal selling jobs in, 42 Chemical abuse and dependence Colleges and universities, recruit- pioneers in, 42 issues, 205 ment and, 139–140 Business firms, salespeople and, 24 Chief sales executives, positions and Combination plans Business marketing, personal selling activities of, 187–188, 188 advantages of, 223 (exhibit) disadvantages of, 223 and, 57, 57 (figure) Chile, 231 financial compensation mix and, Business-on-demand, 79 China, 169 (exhibit) 222, 223 (exhibit) Business organizations, CIRS, 140 rewards and, 222–223 Cisco, 66, 174 salary-plus-bonus plan and, 222 organizational buyer behavior salary-plus-commission-plus-bonus and, 61 (exhibit) plan and, 222 Business strategy salary plus incentive and, defined, 50 222–223 execution of, 53 sales function and, 53–54 types of, 53–54

31451_14_index.qxd 15/03/05 18:33 PM Page 421 Index 421 Combination sales jobs, personal Computerized matchmaking Critical incident technique, selling jobs in, 43 services, recruitment and, 140 background investigation and, 148 (exhibit) Combustion Engineering, 193 Computer literacy, 170 Commission base, 220 Computer rosters, recruitment Cullens, Theresa, 192 Commission payout event, 220 Cullinet Software, 172 Commission plans and, 140 Cultural issues, in sales Concur Technologies, 227 advantages of, 221 Conflicts of interest, 204–205 management, 12 disadvantages of, 221–222 Conrad, Blake, 31 Curbstone conferences, 197 variation in, 220–221 Considerate buyer, 168 (exhibit) Current spendable income, Commission rate, 220 Constant rate, 220–221 Commission splits, 220 Consultative customized selling, 218–219 Commitment, job satisfaction Customer relationship strategy and, 66, and, 297 66 (exhibit) as determinant of specialization, Communicable disease testing, 147 Consultative selling, 25, 30 84–85, 85 (figure) Communication business consultant and, 30 long-term ally and, 30 focus on, and sales managers, leadership skills and, 195–197 at Lucent Technologies, 30 12–13 See also Communication tech- relationship strategy and, 66, 66 (exhibit) salespeople and, 24–25 nology; Integrated marketing strategic orchestrator and, 30 Customer knowledge, 167 communication; Intercultural Contingency approach, sales communication; Interpersonal leadership and, 192 foreign customers and, 167, communication skills; Marketing Continued affirmation, 27 168–169 (exhibit) communication; Personal Contribution approach, 259, 259 communication (exhibit) Customer opinion, background Communication mechanisms, profit contribution and, 259 investigation and, 148 (exhibit) leadership skills and, 197 Convergys, 2 Communication technology, 200. Corporate citizens, 206 Customer relationship, sales process See also Communication Corporate mission, 51 and, 31, 31 (figure) Company forecasting methods, Corporate mission statement, 51 118–120 Corporate strategy Customer relationship decomposition methods and, corporation mission statement management (CRM), 53–54 120, 120 (exhibit), 125 and, 51 (exhibit) defined, 50 at Deere and Company, 49 exponential smoothing and, 119, sales function and, 50–53 sales function and, 49–50 119 (exhibit), 125 (exhibit) strategic business unit definition Customer respect, 46 moving averages and, 118–119, and, 51–52 Customer satisfaction 119 (exhibit), 125 (exhibit) strategic business unit objectives compensation rewards and, 218 Company salesforce and, 52, 52 (exhibit) job satisfaction and, 297 sales channel strategy and, 66 Cort Furniture Rental, 194 sales organization effectiveness vs. independent representative, Cost analysis, 256–258 cost of, 68, 68 (figure) selling budget and, 256–257, and, 251 Compensation, 41 256 (exhibit) Customer satisfaction survey Compensation rewards types of, 257–258, 258 cost of, 216 (exhibit), 217–218 (exhibit) at Eastman Chemical Company, customer satisfaction and, 218 Courtyard Inn, 6 287–288 (exhibit), 289 Competitive knowledge, Covey Leadership Center, 172 167–168 (exhibit) on Internet, 251 Competitive position CPRi Communications, 12 Customer survey, 164 defined, 95 Credit check, 148 (exhibit) Czech Republic, 147 Comprehensive Personality Profile, 146 D Death of a Salesman (Miller), 40 Deciders, buying center and, 62 Decision models, allocation of selling effort and, 94 (figure), 95–96 Decker Communications, 172 (exhibit)

31451_14_index.qxd 15/03/05 18:33 PM Page 422 422 Index Decomposition methods, 120, 120 Ecolab, 173 resumes and, 141 (exhibit), 125 (exhibit) e-Commerce University, 159, 160 selection and, 140–149 Economic stimuli, salespeople technology and, 141 strengths and weaknesses of, testing and, 142, 144, 146–147 125 (exhibit) as, 23 Expatriates EEOC. See Equal Employment recruitment and selection strategy Deere, John, 49 Deere and Company, 54 Opportunity Commission and, 136, 137 (exhibit) Effectiveness index, sales analysis reward system and, 231–232 customer relationship manage- Expense account padding, 228. ment at, 49 and, 255 Ego drive, salespersons and, 45, 46 See also Expense budget; Sales Dell, 58, 177 Ego strength, salespersons and, 45 expense Delphi method, 123, 126 (exhibit) Empathy, salespersons and, 44 Expense budget, 227 Employee referral programs, 137 reimbursable items and, 226, strengths and weaknesses of, Employers 226 (exhibit) 126 (exhibit) report form, 227, 227 (exhibit) Equal Employment Opportunity See also Expense account; Sales Delta Airlines, 221 Commission guidelines and, 207 expense Deluxe Corporation, 161 Expert power, 191 Desktop personal computer video- Employment, termination Exponential smoothing, 119, 119 of, 206–207 (exhibit), 125 (exhibit) conferencing, 174 strengths and weaknesses of, 125 Detailer, 42 Enron, 202 (exhibit) Diagnostic skills, leadership skills Enthusiasm, salespersons and, Express Personnel Services, 71 Extended Systems, 11 and, 194 45–46 Extensive problem solving, buying Dialog Coach, 173 Entrepreneurial orientation, vs. situation and, 61 Dictaphone, Inc., 131 External sources, recruitment and, Differentiation strategy, 53, administrative orientation, 11 138–140 Equal Employment Opportunity Extrinsic motivation, 216 54 (exhibit) Diffusion of innovation, 23–24 Commission (EEOC), 151 F Digital River, 40 sexual harassment charges filed Dilenschneider, Robert, 192 FAB approach. See DiMonti, Jerry, 12 with, 207 Feature-advantage-benefit Direction, motivation and, 216 sexual harassment guidelines, 207 approach Direct-to-consumer sales, personal Equal pay, 229–230 Equal Pay Act of 1963, 150 Fair Employment Opportunity Act selling jobs in, 43 of 1972, 150 (exhibit) Discrimination, in recruitment and (exhibit), 229, 230 Ethics Fairfield Inn, 6 selection, 150 (exhibit), 151–152 Farmers, 106–107 Dive Rite, 232 code of ethics and, 22, 178, Feature-advantage-benefit (FAB) Doig Corporation, 260 203, 203 (exhibit) Dow Chemical, 123 approach, 34 Dr Pepper/Seven Up, 177 recruitment and selection and, 152 Federal Trade Commission, 178 Drug testing, 147, 149 sales leadership and, 200–204 Federated Insurance, 130, 132, 137, DuPont, 14, 199, 249 sales training and, 178, 179 146, 147, 160, 174 organizational strategy at, 51 (exhibit) Federated Mutual Insurance, 15 sales strategy at, 60 selling budget and, 263 DXI, 7–8 stress interview and, 152 recognition and incentive Dynamic Sag Corrector (DySC), 29 See also Management ethics programs at, 226 DySC. See Dynamic Sag Corrector Europe, 279 Evaluation, post-training, 176–178, sales leadership at, 194 E FedEx, motivation and reward 177 (exhibit) Eastman Chemical Company, 249 Evaluation and hiring at, 215 customer satisfaction survey at, 287–288 (exhibit), 289 assessment centers and, 147 background investigation and, Eastman Kodak, 218 147, 148 (exhibit) interviews and, 141–142 job application form and, 141 physical examination and, 147, 149

31451_14_index.qxd 15/03/05 18:33 PM Page 423 Index 423 Feedback exponential smoothing and, 119, France, 169 (exhibit) coaching and, 198, 198 (exhibit) 119 (exhibit), 125 (exhibit) Frito-Lay, 43, 175 leadership skills and, 194 Frontier Corporation, 193 market research and, 24 firm level and, 115, 116 (exhibit) Fuji, 45 sales careers and, 40 geographic area and, 115, 116 Full cost approach, 258–259, 259 salesperson performance evaluation and, 273–275 (figure) (exhibit) 360-degree feedback, 273–275, industry level and, 115, 116 Functional sales organization, 87–88, 274 (exhibit) (exhibit) 89 (figure) Field sales managers, positions and jury of executive opinion method Functional specialization, salesforce activities of, 187–189, 188 (exhibit) and, 123, 126 (exhibit) specialization and, 87–88 market factor methods and, Fifth Amendment, 150 (exhibit) G Final territory design, 106, 107 120–121, 123 (exhibit) market forecast and, 116, 116 Gallup, Inc., 141–142 (exhibit) Gallup International Research and Financial compensation, (exhibit), 117 market potential and, 116, 116 Education Center, 146 218–223 GAM. See Global account combination plans and, 222–223 (exhibit), 117 current spendable income and, moving averages and, 118–119, management Games, behavioral simulations 218–219 119 (exhibit), 125 (exhibit) performance bonuses and, 222 product level and, 115, 116 (figure) and, 173 salary plans and, 219–220, quarterly form and, 124 (figure) Gandolf, Ted, 12 salesforce composite method and, Gatekeepers, buying center and, 62 222–223 GE. See General Electric straight commission and, 123, 126 (exhibit) Geffert, Clint, 2 sales forecast and, 116, 116 GE Medical Systems, 101–102 220–222 General Electric (GE), 6, 13, 51–52, straight salary and, 219–220 (exhibit), 117 types of, 219, 219 (exhibit) sales potential and, 116, 116 171, 289 Financial compensation mix, 222, General Foods, 199 (exhibit), 117 General Mills, 41 223 (exhibit) selection of methods and, 125 General Motors, 146, 249 Finder’s fee, 137 statistical methods and, 124 General Motors Service Parts Fiorina, Carly, 39–40 strengths and weaknesses of Firm level Operation (GMSPO), 8 methods of, 125–126 (exhibit) Generic business strategies, 53 forecasts and, 115, 116 (exhibit) survey of buyer intentions method Geographic area First-party references, 148 (exhibit) Fisher Scientific International, 10 and, 123, 126 (exhibit) forecasts and, 115, 116 (figure) Flat sales organization, 82 time period and, 115, 116 (figure) Geographic sales organization, top-down approaches to, (figure), 83 85–86, 86 (figure) Ford, 6, 289 117–122, 118 (figure), 124 Germany, 169 (exhibit) Forecasts, 115 types of, 115–117, 118 (exhibit), Gerrard, Paul, 2 Gifts, as incentive reward, 216 bottom-up approaches to, 117, 118 (figure) 118 (figure), 122–123, 124 usage of approaches to and (exhibit) GlaxoSmithKline (GSK), 43 breakdown methods and, methods of, 123–125, Global account management 120–121 124 (exhibit) uses of, 117 (GAM), 90 Buying Power Index and, Foreign customers Global compensation, 231–232, 120–121, 122 (exhibit) customer knowledge and, 167, 168–169 (exhibit) 232 (exhibit) company forecasting methods sales training and, 167, 168–169 Global orientation, vs. local and, 118–120 (exhibit) Formula approach. See Mental states orientation, 11–12 decomposition methods and, 120, selling GMSPO. See General Motors 120 (exhibit), 125 (exhibit) Fortune 500, 19 Forum, 46, 171 Service Parts Operation Delphi method and, 123, 126 Fourteenth Amendment, 150 (exhibit) (exhibit)

31451_14_index.qxd 15/03/05 18:33 PM Page 424 424 Index Google.com, 301 Hunters, 106–107 Industrial Revolution, 20–21 Goulet, Blair, 245 Hybrid sales organizational post-, 21 Government organizations, structure, 91, 92 (figure), 93 Industry level organizational buyer behavior forecasts and, 115, 116 (exhibit) and, 61, 61 (exhibit) I Graphic rating/checklist methods, IndustrySalesPro.com, 139 286–287 (exhibit), 286–289, IBM, 64, 84, 87, 149, 171, 218, Influencers, buying center and, 62 286 (exhibit) 249, 277, 279 Influence strategies Graver, Brad, 2 Great Depression, 21 strategy and sales organization at, manipulation and, 196–197 Great-West Life Assurance 79–80 persuasion and, 196 Company, 245 promises and, 196 GSK. See GlaxoSmithKline IHS. See Information Handling relationships and, 196 Services threats and, 195–196 H Information Graphics Group, IMC. See Integrated marketing Hard bargainer, 168 (exhibit) communication recruitment and selection at, 129 Harvard Business Review, 22, 200 Information Handling Services Heffel, Jerry, 15, 20 IMClone Systems, 202 Herman Miller company, 67 Immoral management, 200–204, (IHS), 30 Hershey Chocolate, 15, 132, Initial interviews, 141–142. See 202 (exhibit) 134, 140 Impact Selling Simulator, 173 also Interview(s) achieving congruence at, 131 Incentive programs, at Federated Initial territory design, 105, 105 job qualifications at, 133 Hewlett-Packard, 2, 39–40, 69, Mutual Insurance, 226 (exhibit) Incentive rewards, 217, 217 Initiation to task, 160 79, 123 Initiators, buying center and, 62 Hierarchical sales analysis, (exhibit) InnergE, 234 Incentives, job offer and, 149 Inside sales, personal selling jobs in, 43 253–254, 254 (figure) Inc magazine, 35 Institutional stars, 206 Hill and Knowlton, 192 Income statement analysis, Institutions, organizational buyer Hill-Rom, 63 Hire.com, 141 258–259 behavior and, 61, 61 (exhibit) Hiring. See Evaluation and hiring contribution approach and, 259, Insurance industry, recognition Hiring guidelines, 151–152 259 (exhibit) programs in, 225 job application form and, 151 full cost approach and, 258–259, Integrated marketing job description and, 151 job discrimination and, 259 (exhibit) communication (IMC), Incremental approach, for calculat- 58–59. See also Communication 151–152 Integrative meetings, 199–200, job qualifications and, 151 ing salesforce size, 100–101, 200 (exhibit), 201 (exhibit) Holophane Corporation, 9 101 (exhibit) communication technology HomeBanc, 230 Independence, 41 and, 200 Home Depot, 52 Independent representatives Intel, 249 Hormel Foods, 15, 260 advantages of, 67–68, 68 Business Conferencing Group, 10 benchmarking at, 250 (exhibit) Intensity, motivation and, 216 Host-country nationals, recruitment sales channel strategy and, Intensive interviews, 142 67–69 interview bias and, 142, 145 and selection strategy and, 136, vs. company salesforce, cost of, (exhibit) 137 (exhibit) 68, 68 (figure) interview guide and, 142, Hoyt, Charles W., 21 Individual, vs. teamwork, 8–9 143–144 (exhibit) HR Chally Group, 146, 148 INDSALES, 297, 298, 298 interview questions and, 142, 145 (exhibit), 154 (exhibit) (exhibit) Industrial distributors, sales channel See also Interview(s) strategy and, 67 Intercultural communication Industrial organizations, organiza- sales training in, 167 tional buyer behavior and, See also Communication 61 (exhibit)

31451_14_index.qxd 15/03/05 18:33 PM Page 425 Index 425 Internal sources, recruitment and, Job offer, 149 Leadership, 188 137–138 bonuses for relocation and, 149 vs. management, 10–11, 11 incentives and, 149 (exhibit) International Paper, 173 market bonus and, 149 See also Sales leadership; International salesforce, 129 Leadership skills; Leadership Job preview, achieving congruence style; Sales managers recruitment and selection strategy and, 130 and, 136, 137 (exhibit) Leadership skills, 190, 190 (figure), Job qualifications 193–197 Internet at Hershey Chocolate U.S.A., 133 customer satisfaction survey on, 251 hiring guidelines and, 151 communication and, 195–197 sales channel strategy and, 66–67 planning activities and, 133–134 communication mechanisms sales training media and, 174 sales training programs on, 10 Job rotation, 173 and, 197 search engines, 301 Job satisfaction diagnostic skills and, 194–195 feedback and, 194 Internships programs, recruitment indicators of, 297 and problems, anticipation of, and, 139–140 INDSALES and, 297, 298, 298 193–194 Interpersonal communication skills (exhibit) selection and matching responses salespersons and, 45 and job satisfaction information, See also Communication and, 195 use of, 298 See also Leadership Interviewer bias, 142, 145 (exhibit) measurement of, 297, 298 Leadership style, 189 Interview(s) transactional leadership style (exhibit) evaluation and hiring and, reward system and, 215–216 and, 189 141–142 Job security, 39, 225 transformational leadership style Job variety, 40–41 guide, 142, 143–144 (exhibit) Jobweb.com, 140 and, 189 initial interviews and, 141–142 Johnson Control, 6 See also Leadership intensive interviews and, 142 J. P. Morgan Chase, 79 Legal issues questions, 142, 145 (exhibit) Jury of executive opinion method, job application form and, stress interview and, 152 Intrinsic motivation, 216 123, 126 (exhibit) 151–152 strengths and weaknesses of, 126 recruitment and selection and, J (exhibit) 150–152, 150 (exhibit) Japan, 169 (exhibit), 218 salesperson performance evaluation Jennings, Mark, 215 K Job analysis and, 292, 293 (exhibit) Karem, Jason, 1–2, 15, 167, 176 sales training and, 178, 179 planning activities and, 133 Key account. See Major account sales training needs assessment Knowledgepoint, 274 (exhibit) KV Pharmaceutical, Inc., 15, 284 Legitimate power, 191 and, 164 Leisure trips/travel Job application form coaching at, 199 salesperson performance evaluation as incentive reward, 216 (exhibit) evaluation and hiring and, 141 Levin, Carole, 197 hiring guidelines and, 151 at, 285 Limited problem solving, buying legal issues and, 151–152 Job description L situation and, 61 hiring guidelines and, 151 Line sales management, vs. staff misrepresentation of, 152 LaMontagne, Bob, 15, 89, 102 planning activities and, 134, 135 Lanx Fabric, 2 sales management, 83–84, Latin America, 169 (exhibit) 83 (figure) (exhibit) Latitude Communications, 200 LLC, 249 Job design, reward and motivation Leader-Member Exchange LMX model. See Leader-Member Exchange model and, 234 (LMX) model, 189 Loback, Ron, 129 Job discrimination, hiring guidelines Local orientation, vs. global orientation, 11–12 and, 151–152 Lockheed Martin Information Technology, 9

31451_14_index.qxd 15/03/05 18:33 PM Page 426 426 Index Lofland, Randy, 2 role distortion act and, 203, 204 Marley Cooling Tower, 68 Lone wolf, 8, 206 (exhibit) Mary Kay Cosmetics, 43, 220 Long-term ally, 30 Maschuzik, John, 41 Lotus Notes, 200 role failure act and, 203, 204 Mavericks, 205–206 Low-cost strategy, 53, 54 (exhibit) MBO. See Management by (exhibit) and unethical acts, types of, objectives “Low Pressuring Selling” (Harvard 203–204, 204 (exhibit) McDermott, Bill, 187 MCI, 193 Business Review), 22 See also Ethics Mediacom Communications Lucent Technologies, 15, 39 Management levels, vs. span of Corp., 229 consultative selling at, 30 control, 82–83, 82 (figure) Mental states selling, 27–28, Management Recruiters M 28 (exhibit) International, 223 AIDA and, 27 Mackenzie, John, 199 Managers, salespeople as future, 24 relationship strategy and, 66, 66 Major account coverage, 90–91, Manipulation, influence strategies (exhibit) 91 (figure) and, 196–197 Mentors, on-the-job training and, Major account management Manufacturers’ representatives. See 172–173 programs, 91 Independent representatives Merchandise/gifts, as incentive Major account organization, Market bonus, job offer and, 149 Market factor methods, 120–121, reward, 216 (exhibit) 88–91 Mexico, 169 (exhibit) at Brown-Forman Corporation, 89 123 (exhibit) Microsoft, 79, 289 salesforce specialization Market forecast, 116, 116 (exhibit), Middle East, 168 (exhibit), and, 88–91 117 169 (exhibit) Major accounts, 88 Marketing communication Miller, Arthur, 40 Misrepresentation, of job descrip- identification of, 90, 90 (figure) advertising and, 56 (figure), 57, Malcolm Baldridge National Quality 57 (figure) tion, 152 Missionary salespeople, 42 Award, 7, 249 personal selling and, 56, MIT, 193 Management, 188 56 (figure), 57 (figure) Mitchell, L. A., 15, 30 Mohawk Ltd, 192 vs. leadership, 10–11, 11 (exhibit) tools, 58, 59 (exhibit) Molson Canada, 171, 177–178 See also Sales management See also Communication Monsanto, 174 Management account organization Marketing mix Monster.com, 138 global account management development of, 55–56 Moral management, 200–204, personal selling and, 57–58, 58 and, 90 202 (exhibit) major account coverage and, (exhibit) Motivation, 216–217 Marketing strategy 90–91, 91 (figure) defined, 216 national account management defined, 50 direction and, 216 integrated marketing communica- extrinsic motivation and, 216 and, 89 at FedEx, 215 Management by objectives tion and, 58–59 guidelines for, 233–234 marketing mix development and, intensity and, 216 (MBO), 290 intrinsic motivation and, 216 Management ethics 55–56 job design and, 234 sales function and, 54–59 job satisfaction and, 297 amoral management and, target market selections and, 55 persistence and, 216 200–204, 202 (exhibit) Market potential, 104 proactive approach to, 234 forecasts and, 116, 116 promotion opportunity and, 234 approaches to, 202 (exhibit) recruitment and selection and, 233 immoral management and, (exhibit), 117 reward system and, 215–216 Market research, feedback and, 24 200–204, 202 (exhibit) Market sales organization, 87, moral management and, 88 (figure) 200–204, 202 (exhibit) Market specialization, salesforce nonrole act and, 203, 204 specialization and, 87 (exhibit) Market strategy, personal selling and, 55, 55 (figure)