CASE STUDY ONE CLYDE VALLEY BUILDING

PRODUCTS*

Clyde Valley Building Products (CV) operates two divisions, both of which basi­cally supply weatherproofing products for the building industry. Figure CSl.l illustrates the product composition of each division.

WINDOWS PRODUCTS DIVISION

Weatherstrips & Glazing Systems for Timber Windows & Doors

Weatherstrips & Glazing Systems for UPVC/Aiuminium Windows & Doors

Hardware for Windows & Doors

Security/Antivandal Glazing Systems

Retrofit Seals for Existing Windows & Doors

Specialised Glazing Systems

BUILDING PRODUCTS DIVISION

Cavity Tray Systems Standard & Lead Attached

DPC Systems Horizontals & Specials

Cavity Closures

Roof & Wall Ventilation Systems

Rainwater Systems

Security/Antivandal Sheeting & Cladding

Silicone, Mastic & Polysulphide Sealants Jointing, Sealing & Bonding Tapes Maintenance Free Finishing & Trims Ancillary Products

Figure CS1.1 Clyde Valley product portfolio

Window products division

The company do not manufacture but stock and distribute a range of weather­strips, seals and gaskets for timber, aluminium and UPVC windows and doors. The current margins (net sales value less cost of goods) is approximately 55 per cent for timber products, 45 per cent on aluminium and 40 per cent for UPVC. Until recently, they had exclusive distribution rights in Scotland and the north of England for several major brands as well as their own brand products.

However, two major suppliers have decided to end this exclusive position, although neither is attempting to terminate the business. The reason given by one supplier was that sales have fallen at a time when the market is increasing and they are now preparing to operate their own salesforce. The second supplier, whose sales have virtually remained static, is currently seeking addi­tional distributors.

" This case is based on a realistic situation. The name of the company, the products and the sales figures have been altered and disguised.

337

CASE STUDIES

338

To counter these threats, CV have obtained exclusive trading agreements with Dutch and West German suppliers. The directors of CV feel brand aware­ness to be low and product brand loyalty very low and are therefore confident that existing customers will accept alternative weatherstrips and glazing prod­ucts. Furthermore, to capitalise on these new agreements and a much larger market potential, CV aim to operate in the Midlands and possibly later in the south-east of England.

CV also supply draught seals and weather extruders for existing windows and doors. This market has low potential and low margins, local authorities and housing associations being the main purchasers. However, the market for specialised, custom-built glazing systems is highly attractive, with margins in the region of 60--120 per cent but potential is uncertain and variable. At present, relatively few commercial developments are underway and the potential for curtain wall glazing systems is low.

Another important product area for CV is window ironmongery, including handles and hinges manufactured to BS 5750 : Part 1. Five sizes are available and margins are around 40 per cent. The distribution rights cover Scotland only. These products accounted for 14 per cent of turnover in 1992 and 16 per cent in 1993. To complete the product profile of the window division there are secu­rity I anti vandal glazing systems which includes infill panels for schools, hospi­tals, bus shelters, public toilets and so on. Again, the company has an exclusive agreement as sole distributor in Scotland. Although margins are between 30 and 50 per cent, sales in this group are less than 1 per cent of total turnover.

Building products division

The building products division, which supplies products for new-build and refurbishment contracts, was established in 1990. From a standing start, the divi­sion has grown modestly in the past 2 years. Cavity trays were initially the only building products to make a significant contribution to the company's overall turnover (Tables CS1.1 and CS1.2)

The division is now beginning to show signs of growth, with the emergence of a range of products from other manufacturers which are making a substantial contribution. Table CS1.2 underlines the position of these new trays. Part of the attraction of this product is the added value from in-house design and fabrica­tion which enables these cavity trays to meet specific building applications by pre-attaching lead flashings. These specials are included under sales figures for cavity trays. In addition to fabrication, this category includes some own-brand gaskets and aluminium beading for timber windows. A further selling advan­tage for these products is that CV's technical design department can prepare the design and the quantities required from architectural drawings. This service is only undertaken if an order is guaranteed. CV is also an exclusive distributor in Scotland for a range of performed cavity trays for use in the construction of brick and tiled sills.

As a system complementary to the company's range of cavity trays, CV stock and distribute damp-proof course (DPC) systems for use in brick, block,

Table CS1.1

Table CS1.2

CASE STUDY ONE

stonework or concrete walls of both solid and cavity construction in horizontal, vertical or stepped positions. This is a highly specialised area where again the in-house technical facility can custom design DPCs to meet intricate detailing at corners, around concrete columns and at changes of level. All projects of this nature are individually priced. A damp-proofing medium new to the UK is now being distributed. This is a complete damp-proofing system for walls and floors in both new-build and renovation projects, where the membrane is a dry system which controls the movement of water and moisture and avoids the use of chemicals or wet, mixed cements and bitumen. Although sales for the present year are around only 0.3 per cent of total turnover, the directors believe that the product has considerable potential.

Product sales 1992 Product Sales value % of turnover Profit margin Contribution to

profit £ % %

Weatherseal 340,000 16 38 16 lronmongery 290,000 14 39 14 GP seals 180,000 9 58 13 Sealants 160,000 8 53 10 Own brands 220,000 10 54 14 Imports (W. Germany) 140,000 7 33 6 Imports (Holland) 87,000 4 52 6 Cavity trays 75,000 3 37 3 Vents 40,000 2 44 2 Others 568,000 27 23 16

Total 2,100,000 100 39 100

Product sales 1993 Product Sales value % of turnover Profit margin Contribution to

profit £ % %

Weatherseal 204,000 9 46 11 lronmongery 361,000 16 37 16 GP Seals 160,000 7 52 10 Sealants 169;000 7 53 11 Own brands 204,000 9 54 13 Imports (W. Germany) 102,000 5 33 4 Imports (Holland) 79,000 4 53 5 Cavity trays (incl. specials) 188,000 8 34 7 Vents 95,000 4 53 6 Rainwater systems 160,000 7 23 4 Others 534,000 24 21 13

Total 2,256,000 100 38 100

The building division are also distributors of PVC cavity closers and damp­proof fixings for windows and doors. The PVC channel section closes the cavity at an opening in the external wall and provides a waterproof barrier which

339

CASE STUDIES

340

prevents moisture penetrating the inside door leaf or window frame. The system offers considerable potential despite the fact that a significant number of sales have not materialised, either this year or last. As part of the building product portfolio, CV also distribute roof and wall ventilation systems. Under this range, CV stock roof and soffit ventilators, for which the company is sole distributor in Scotland for a branded range of ventilating tiles, sky lights and soil and vent pipes. In addition, the company has recently taken an exclusive distributorship for through the frame window vents.

In addition, the company distribute a range of aluminium rainwater systems, which has made a major contribution to turnover this year, as shown in Table CS1.2. The company can compete effectively with builders merchants on aluminium systems, particularly on lead times. Where merchants are quoting up to 12 weeks, the company can supply in 3 weeks irrespective of colour. The company work to margins of 25 per cent but, as with all building products which are prone to 'specification selling', margins are often reduced to win orders. Finally, the building products division provides a range of secu­rity I anti vandal sheeting and cladding products which provide margins between 80 and 100 per cent.

Sales and management structure

The company operates a separate salesforce for each product division. All personnel employed in the sales effort report directly to the sales director, who is in turn responsible to the managing director. Figure CS1.2 illustrates the organisational structure of the company.

There are four sales representatives for each division. Territories served by sales representatives are as follows:

Window products division: 01 - Strathclyde, Dumfries and Galloway, Borders 02 - Highlands and Islands, Grampian, Tayside, Fife 03 - North of England 04 - Central and Lothians

Building products division: 10- Tayside, Fife, Lothians 11 - Central, Strathclyde, Dumfries and Galloway 12 - Borders Region 13 - Highlands and Grampian

In addition to managing the salesforce, the director is also responsible for calling on key accounts. These are knoWn as 'house accounts' which, once devel­oped, are often re-allocated to the appropriate regional representative.

An internal sales department for each division handles enquiries, processes orders and controls stock levels. These departments are not used for direct selling or telesales.

Man

agin

g di

rect

or

r F

inan

cial

/com

mer

cial

dir

ecto

r S

ales

dir

ecto

r O

pera

tions

dir

ecto

r

I I

I I

I Admin/~

ccounts

Oper~tions

S

tock

con

trol

E

xter

nal

Inte

rnal

Te

chni

cal

I I

I I

I I

I I

I W

ind

ow

B

uild

ing

Win

dow

B

uild

ing

Win

dow

B

uild

ing

prod

ucts

pr

oduc

ts

prod

ucts

pr

oduc

ts

prod

ucts

pr

oduc

ts

I I

Sto

res

Pro

duct

ion

I I

divi

sion

di

visi

on

divi

sion

di

visi

on

divi

sion

di

visi

on

Sal

es 0

1 S

ales

10

Hea

d o

f H

ead

of

Hea

d o

f de

part

men

t de

part

men

t de

part

men

t I

Hea

d o

f S

ales

02

Sal

es 1

1 de

part

men

t

I I

Sal

es 0

3 S

ales

12

3S

taff

1

Sta

ff 2

Sta

ff H

ead

of d

epar

tmen

t 1

Sup

ervi

sor

I I

Sal

es 0

4 S

ales

13

4 S

tore

men

2

Ope

rativ

es

Fig

ure

CS

1.2

Cly

de V

alle

y or

gani

satio

n ch

art

CASE STUDIES

Table CS1.3

1992 Territory Total code sales

01 587,000

02 214,000 03 230,000 04 178,000 05 807,000 10 27,000 11 56,000 12 271 13 1,000 Total 2,100,000

342

Sales analysis

Table CS1.3 provides details on sales performance by geographical territory over the past 2 years. It is difficult to assess the exact performance of each sales team as house accounts (05) include both window and building customers. Nevertheless, by excluding house accounts - the majority of which in any case include window product customers- the table clearly shows the dominant posi­tion of the established window products division. Sales by the window products team accounted for 57 per cent in 1992 and 62 per cent in 1993. Building product sales, excluding the contribution from house accounts, accounted for 4 and 12.5 per cent over the same period.

Sales analysis by geographical territory, 1992 and 1993

Number Profit Profit 1993 Total Number Profit Profit of margin contribution Territory sales of margin contribution

accounts % % code accounts % %

176 46 31 01 744,000 124 42 34

89 46 11 02 319,000 109 45 16 102 51 14 03 152,000 52 48 8 69 44 9 04 183,000 85 43 8 33 34 32 05 576,000 16 37 23 16 32 1 10 20,000 17 36 1 28 36 2 11 193,000 17 36 8

29 12 36,000 8 31 3 35 13 33,000 8 35 1

523 41 100 2,256,000 449 41 100

There are several reasons why no conclusions should be drawn from these contributions. First, the window division has been established for six years while the building division has been trading for less than two. Second, a different type of selling process is involved for each division. For example, there is consider­able repeat business for weatherstrips and glazing systems as these products often become part of the window manufacturer's own specification. It can there­fore be surmised that a significant proportion of window product sales is guar­anteed and no real sales effort is required. In contrast, building products can be classified as a specification sale in what is a highly competitive market. Furthermore, the building products division is still at a development stage and, as a consequence, lacks both visibility and credibility in the eyes of key decision­makers. Despite the fact that the window division has a large customer base, it is perhaps of concern that such a small proportion of customers account for such a large share of the turnover achieved in each sales territory. Table CS1.4 shows the proportion of total business being taken by major customers in each territory.

As previously mentioned, the building division is now showing signs of growth. Sales this year, excluding the contribution from house accounts, show

Table CS1.4

CASE STUDY ONE

that building product sales have accounted for 12.5 per cent of total sales to date. Nevertheless, sales by the window product sales team stand at 62 per cent, although this can be partly explained by the number of house accounts which have been re-allocated.

Proportion of total business by top ten customers per sales territory, 1992

Customer territory Number of accounts Top ten customers %

01 176 53.1 02 89 43.5 03 102 61.5 04 69 58.3 05 33 93.7 10 16 72.9 a

11 28 57.5 b 12 4 NA 13 1 NA

a = top two accounts; b = top six accounts.

Sales remuneration

The salesforce are paid a basic salary and a bonus structure exists to reward sales representatives reaching targets, which are set per product group. Sales targets are set on an individual/ geographical basis and are initially estimated by the individual representative. Targets are then reviewed by the sales director who, in consultation with each sales representative, adjusts the estimate accord­ingly. Sales targets are expressed in monetary terms and no account is taken of profitability.

These targets are set as part of the company's overall sales policy: they are not dictated by suppliers. On the window division, suppliers of window product components do not set specific targets but do expect a reasonable growth in sales from year to year.

Building product suppliers have stated what they want to see in terms of sales but, with the division barely 2 years old, it is difficult to define what is a realistic target.

Sales planning and reporting procedures

Sales leads are generated from a number of sources. The company subscribes to the regional planning information bulletins published by Advanced Building Information (ABI) and Glennigan Sales Information Services. Leads are also obtained from representatives call report forms. Sales representatives operating for the window division provide regular reports. Building representatives return action and technical report forms. A number of suppliers also provide

343

CASE STUDIES

Your task

344

leads which originate from responses to trade press adverts. However, according to management, leads from suppliers have not proved productive.

Sales representatives are left to plan their own call routes. Monday is set aside for representatives to complete forms and plan call schedules. As repre­sentatives are based in the areas in which they operate, planning and reporting activities are undertaken from home. The remainder of the week is spent on the road and it is expected that sales representatives will attend four appointments per day.

Sales training

Sales training has been restricted, in the main, to on-the-job product training. Time spent on training has been devoted to improving product knowledge and several in-house training courses have been organised in conjunction with product suppliers. No priority has been given to actual sales training as it is expected that sales techniques will be developed in the field. Management believe that because the products are of a technical nature, sales skills are viewed as secondary to product knowledge. This is reflected in the personal attributes of the salesforce. For example, the three sales representatives in the building division all came from a builders merchants/ construction-related background, with a bias in the technical side of the business rather than in sales.

Although the emphasis is on product knowledge, management are aware that certain individuals are weak in certain product areas, which could in future be detrimental to sales. Equally, there is an awareness that certain representa­tives display particular strengths in specific products and management have not ruled out the possibility of representatives specialising in future. To a certain extent, this process is already in operation as management have already partially segmented the market and given specific responsibility for targeting major house-builders.

8 Critically assess the current sales organisation of Clyde Valley.

8 Make recommendations on the future organisation and deployment of the salesforce. Fully support your recommendations.

8 Explain in what other ways sales performance can be improved and how you would do it.

GEORGE HOUSTON LIMITED

Introduction

George Houston Limited is a privately owned company with an annual turnover of approximately £10m who are contractors involved in engineering research, design, manufacture and repair for oil companies in the North Sea. The company was founded by George after he left one of the multinational companies, which he had joined in the early stages of North Sea develop­ment. A qualified mechanical engineer, George is entrepreneurial, enter­prising and aggressive. His style is very much hands-on and he has personally built up the business to the stage it is at now of 150 employees, but the company is finding it difficult to compete on the larger contracts where they are seen as competent, cost-effective but a relatively small player. Most of the managers in the organisation are also hands-on technical opera­tors or highly skilled artisans with a limited knowledge and experience of sales and marketing. The basis on which George Houston has built the busi­ness has been mainly precision engineering and a focus on the service and maintenance of other people's equipment. The company consider themselves a quality supplier and wish to move into the big league of contractors to the oil industry, both in the North Sea and Europe and eventually elsewhere in the world.

The UK oil and gas industry

The UK oil and gas industry is in a mature stage of its development. Estimates of the remaining oil and gas reserves are shown in Figures CS2.1 and CS2.2 respectively. This maturity is characterised by the decline of the larger, earlier discoveries in the North Sea, increasing smaller field development, reduced exploration activity and an increasing emphasis on cost-reduction strategies by operators in both capital expenditure and operating costs. These development phases in the UK continental shelf oil industry, along with an account of the nature of the activity, are summarised in Figure CS2.3. Despite these unfavourable indicators, business activity is still high in this sector. This apparent contradiction can be broadly explained using the term 'produc­tivity', itself a result of two main variables, namely technology and efficiency.

345

CASE STUDIES

346

Figure CS2.1 Enterprise)

Figure CS2.2 Enterprise)

Remaining UK oil reserves, million tonnes (Scottish

Remaining UK gas reserves, billion cubic metres (Scottish

provinces

Cost-reduction focus on declining facilities with smaller new field

developments. Overall decline in production

Maximise production with minimum maintenance.

Incremental field developments

High expenditure on initial large field development

North Sea oil Exit and gas industry phase

development

Mature phase

Growth phase

Develop­ment phase

Figure CS2.3 Development phases in UK continental shelf oil industry (Drummond, 1993)

Table CS2.1

CASE STUDY TWO

Advancements in technology, enabling the exploitation of smaller marginal satellite fields and innovative exploration techniques, indicate that the North Sea is only mature at certain geological levels. This leaves other geological periods yet to be explored and evaluated. A record of fields already devel­oped, fields under development and prospective developments is presented in Table CS2.1. It is the increases in efficiency that are enhancing productivity despite lower oil prices and correspondingly lower operating margins. These increases are also inspiring a new-found confidence in the Grampian region, where most activity takes place. Furthermore, these efficiencies are reflected in operators' recent claims that their cost-cutting initiatives have yielded savings of up to 25-30 per cent in both capital expenditure and operating costs. Such productivity enhancement transforms the economic viability of older fields that were otherwise threatened by low world oil prices, making exploration and production uneconomic.

Field development/production methods

Abandoned Manned Unmanned Floating Subsea Extended Total platforms platforms production systems reach

units drilling

Fields already developed (81 fields) 7 51 10 7 20 2 97

Fields under development (17 fields) 5 2 5 7 20

Other probable fields (1995-2001) (32 fields) 6 3 19 2 31

Total (130 fields) 7 62 13 15 46 5 148

Future fields (2002-2011) (50)

Source: Grampian Regional Council (1995)

A pattern in North Sea exploration and production is emerging whereby, on the one hand, the established operators exercise cost-reduction initiatives to justify continued production from existing declining fields, while, on the other, new operators are benefiting from technological advancements which enable them to develop and operate new smaller fields for the first time. Either way, the industry is continuing to attract a substantial amount of risk capital which is reflected in the forecast rate of development expenditure, illustrated in Figure CS2.4.

As a result of these market trends, operators seek to reduce their costs further by divesting certain operational responsibilities. This increasing focus on cost reduction for both new developments and the maintenance of existing offshore production facilities is leading to opportunities for contractors in the oil industry.

347

CASE STUDIES

348

c: .e :53 ...,

1994 1995 1996 1997 1998 1999

Explora1ion and appraisal

Development D Dpera1ing

Figure CS2.4 UK North Sea expenditure (Scottish Enterprise)

Contractors to the UK oil industry

For the contractor, the bid process begins at a prequalification stage and involves the application to operators for contracts which, by European Union competition law, have to be advertised in the daily European Union contracts publication for UK contracts- publication 5159. At this stage, operators will specify certain criteria to try to ensure that only the more suitable contractors apply. Such criteria will include:

• experience in maintenance and modification • a proven track record and sound reputation within the industry • satisfactory financial strength to perform the necessary work • evidence of a complementary corporate culture with the operator.

These criteria will be specified in more detail in the tender document for those companies invited to tender. At this next stage, the companies will be given the opportunity to demonstrate their technical capability in relation to the job in ques­tion in more detail, they will be advised of possible contractual liabilities and the framework for remuneration will be discussed. With respect to remuneration, and despite the close working relationship between contractor and supplier, many contracts have contentious clauses in them involving risks that some contractors may not be prepared to take. In such cases, the contractor will account for such risks in a higher bid price or will qualify the risks to the operator, who would be expected to bear them. Depending on the nature of the contract, in terms of value and longevity, a post-qualification stage bid could cost the contractor as much as £50,000 to compile. Much of the expense will be in management time and the preparation of costings and promotional material for presentation to the client (operator). The general consensus among contractors is that the minimum value of a contract needs to exceed £300,000 to make it worthwhile pursuing.

TableCS2.2

CASE STUDY TWO

To recoup the considerable expense of unsuccessful bids and those won on the basis of a minimum cost tender, contractors attempt to increase their charges with each modification requested by the operator. This causes conflict, which is exacerbated by operators challenging contractors' estimates, both sides incur­ring further costs by employing additional personnel to assess claims and counterclaims. Contractors respond further by incorporating complex terms and conditions into their tender submissions along with extensive contingencies in cost estimates.

Research in the UK service and supply sector indicates that there are approx­imately ten companies engaged in the bidding for contracts put out for tender by the operators in the region. However, the picture is made more complex because of two particular factors. First, the range of services offered varies from contractor to contractor, each being recognised for particular areas of expertise. Second, some of the contractors are engaged in alliances or joint ventures with other contractors for certain projects where their own range of capabilities is not sufficient or adequately specialised. Of the ten or so contractors, the seven companies outlined in Table CS2.2 are the main players:

Competitor activity

Company

1. AOC International

2. AMEC Process & Energy

3. John Wood Group

4. Atlantic Power & Gas

5. Kvaerner Oil & Gas

6. Brown & Root

7. Trafalgar House

Main business

Construction, hook-up, maintenance

Platform hook-up, maintenance

Engineering, drilling, logistic services

Offshore maintenance

Oil-related services

Multitask offshore contractor

Oil-related services

Promotion approach

High-profile advertising, collaborative ventures and positive publicity on successful projects

Sales, market information base, reputation

Sales and PR

Sales plus PR

Literature plus some sales

Brochure, partnership agreements and joint venture

Sales plus literature

Turnover and profitability for each company will fluctuate from year to year depending on the number of projects and the stage of each project. Naturally, the financial strength and resources of the organisation are important considerations for the operator when choosing a supplier of services. It can reasonably be assumed that the companies listed in Table CS2.2 possess the required depth of resources for the majority of the contracts for which they bid, by virtue of the fact that they are all members of multinational groups and have developed in recent years to the status of front-line contractors, preferred by the operators to the detriment of smaller contractors. The job of the salesperson, usually with the title 'business development manager' or similar, is to assess which projects are more suitable for their company to bid, to prepare a solution following discussions with the client and to coordinate and present the proposal to the client at the

349

CASE STUDIES

350

tender stage. Each solution will be customised to that project and to the client's requirements. For example, maintenance work in the southern North Sea will demand a totally different approach from fabrication work in the northern fields. For this reason, issues concerning price and product will be dictated by the market requirements of the project in question and finalised during the later stages of contract negotiations. The role of sales in this instance will be to provide the decision-makers with the relevant information based on sound analysis of the situation and particular requirements of the specific contract.

Current position

As their work is mainly in the maintenance and refurbishment sector, George Houston's revenues and profits are more predictable since they come under the category of 'operating expenditure' (as opposed to capital expenditure). However, the trend for partnering and alliances between large contractors and the large oil companies is creating problems for a relatively small player (Figure CS2.5). As with many of the contractors, the terms 'sales' and 'marketing' tend to be used interchangeably. George Houston puts little emphasis on formal marketing, publicity or PR activity. Their approach is for their technical managers (six in total) to put on their sales/business development hat and negotiate face to face for contracts and bids which they feel are attractive and the company are capable of providing. Presentations are made to clients and are based on technical solutions.

Vertically integrated services

Scope of supply

Limited specification of supply

Definitive contract specifocation

• •• • •

Pannerlng egteemenl ••

Length of contract (years)

Figure CS2.5 The changing nature of North Sea oil industry contracts (Drummond, 1993)

Your task

CASE STUDY TWO

All the contractors recognise the importance of personal relationships within the industry, which also serve as a network through which new opportunities are learned of and, where appropriate, exploited. The advent of European Union competition rules, which demands that all new opportunities are documented, has created more bids for some of the contracts than was previously the case. Also, as the scale and variety of projects increases, so the number of personal relationships has also increased, requiring a more formal approach. The impor­tance of personal relationships and contacts should not be underestimated, as the following quote from a manager of one of the contractors suggests:

If you want to understand marketing in Aberdeen or North East Scotland the answer is simple. Befriend the chief buyers of the major companies, grease their palms, play golf with them and you will sell your product unless it is really bad, of course. If you want to put icing on the cake then the answer is simple. Join the correct golf club or, better still, the Freemasons. After almost 25 years of oil and gas Aberdeen is still just a service and maintenance centre. It is nothing more than a source of partially skilled labour for the rigs and production platforms. It is a retail outlet like an industrial equivalent of Tesco. Anything that is really high-tee comes from outside Aberdeen but all this talk of quality being the only name in town is nonsense. The only quality that matters in the oil patch is the quality of the back-handers and who one knows.

Although this may be seen as an extreme view, those contractors who appeared to place a low priority on such visible marketing activity were those who placed an emphasis on sales, relying heavily on the personal relationships network, which manifests itself in corporate entertainment at sports and social functions. More than one contractor has suggested that the expense involved in the bid process, plus the costs incurred with corporate entertainment, are a severe strain on their budgets. The nature and history of the industry and the methods perceived necessary to win business are responsible for such attitudes. The view in this industry is that marketing means little more than advertising and promotion. The benefits of a coordinated marketing strategy and a sound sales plan would suggest that there is considerable scope for a company such as George Houston to enhance their reputation and standing. George acknowledges that his marketing and sales operation needs to be on a more business-like and professional footing but is uncertain how to proceed. At the same time, he realises that the personal relationships in this industry are still vitally important.

8 Draw up a strategic sales plan, with budgets, for George Houston Limited.

8 Draw up an organisational structure which incorporates marketing, sales and business development in this company.

8 Specifically, what development and training would you recommend for the existing sales/business development personnel in the George Houston company?

351

352

CASE STUDY

THREE SCOPE FINANCIAL SERVICES LIMITED

Industry background

The financial services industry is undergoing major supply side changes which are affecting the competitive performance of firms and the regulatory frame­work within the industry. In particular, the private pensions and life assurance market in the UK, although well over 100 years old, has seen some radical changes in the past few years. The product offering consists mainly of 'protec­tion' but with a varying proportion of savings added. Therefore, recent product developments have linked life assurance with unit trusts or mortgages, which does not change the basic product but leads to substantial differences in the appeal to different groups of customer. Traditionally, life assurance was bought rather than sold but, in recent years, new ways of operating have totally changed the market.

Since the 1960s a number of companies have adopted aggressive direct selling methods the success of which, although initially beneficial to these companies, was not necessarily in the best interests of their customers. As a result, a number of regulatory measures has been introduced to make competition fairer and protect the consumer from unethical practices.

The life assurance market is huge. In 1992 new premiums grew to £9.1 billion (Economist, 1993). The National Consumer Council assessed that, in 1994, 31 per cent of personal wealth in the UK was invested into life assurance and pensions. Mintel, in 1994, reported that spending in insurance was the fastest growth area of household spending and had increased by 232 per cent since 1983. Despite this growth, consumer distrust of financial organisations has never been higher. The products have evolved over more than 100 years rather than being designed from scratch. Such products, endowments, personal pensions or simple savings plans, have been characterised by high initial charges, which would typically equate to 1-2 years premium. These front-end charges were used to fund the commission paid to direct salespeople who won the business.

The life assurance industry has typically had a high turnover of salespeople. New recruits, often graduates or people perhaps redundant from other jobs, have been attracted by the high earnings potential which resulted from the commission paid on policies sold. According to a survey by the Life Insurance Marketing and Research Association (LIMRA) in 1992, almost 80 per cent of life insurance salespeople left within 2 years of joining a company. Only 8 per cent of salespeople had been with their company for more than 4 years. Some

CASE STUDY THREE

customers have done well financially from such policies but many would not have bought their policy without the hard sell of highly motivated salespeople.

Sales and marketing channels

The retailing of life assurance and pensions includes a wide range of products and channels of distribution. These form an increasingly complex set of product-channel combinations as financial institutions continue to diversify into new and related financial services. There are currently six main types of channel used to attract buyers of life assurance products:

1. The Independent Advisor Channel (IFA). Independent financial advisers are qualified consultants who act as the agent of the investor and give their clients 'best advice' about the most appropriate range of products to address their needs. Their recommendations are made on the basis of infor­mation drawn from all products and services available from all providers. Many IFAs are small businesses but, in addition, the major banks and building societies have traditionally offered an IFA service. There are also some larger networks of IF As. In the past, there have been accusations that some IFAs have sold policies on the basis of the most lucrative commis­sions rather than in the best interests of their clients.

2. Direct salesforces. Direct salespeople are company representatives and agents of the life company they represent. They also give their clients best advice' but their recommendations are drawn only from the products and services available from the company they represent. These salespeople can represent only one company at one time.

3. Appointed representatives. Appointed representatives are similar to a company representative but are not directly employed. As sales agents, they sell through outlets which are not primarily life assurance sales oper­ations. Many banks and building societies, estate agencies and general insurance brokerages are appointed representatives. For example, the Bank of Scotland were appointed representatives for Standard Life and only sold Standard Life products.

4. Bancassurance. This applies to the sale of life assurance products through banks and building societies. Bancassurers are product providers who have acted in the past as IFAs and operated as representatives for life companies. More recently, banks and building societies are providing their own products and targeting life assurance business with their existing customers.

5. Mail and advertising. This approach has been used to generate execution only business or to create sales lea:ds for the salesforce, IFAs or banc­assurers. Sales resulting from off-the-page advertising or direct mail account for only a small share of the market.

6. Telephone. This approachwas·used initially for generating leads but has revo­lutionised the business with the entry of Direct Line in motor insurance. This

353

CASE STUDIES

354

approach is now being extended to life assurance and other products and copied by a number of leading insurance companies. The telephone is increasingly becoming an exclusive sales method for this type of product.

Figure CS3.1 shows a sample of companies who use alternative distribution channels, as outlined above.

Insurance company

M&G

I IFA

Off -the-page ads

I

Insurance company

SKANDIA LIFE

I I

Appointed reps

CLIENTS CLIENTS CLIENTS

Products Products not suited suited

Products suited

Insurance company

STANDARD LIFE

I

I I

I Salesforcel

CLIENTS

Products suited

Bancassurer

BARCLAYS r--MNK

IFA

I Salesforcel

Direct mail

Insurance company

J ROTHSCHILD ASSURANCE

CLIENTS CLIENTS CLIENTS

Products Products Products not suited suited suited

Figure CS3.1 Methods of distribution in the UK life insurance industry

The products

The present life insurance companies have moved from being solely life compa­nies, offering few services, to becoming full financial services institutions. A life insurance policy is a contract which exists between the insurer and the assured or insured (the terms being nowadays interchangeable), who is the original owner of the policy. Life assurance also tends to incorporate a range of products such as pension plans, investment bonds, health insurance and endowment policies. Life insurance policies are generally designed to provide financial protection for the insured and/ or their dependants. To clarify:

• Term assurance pays a lump sum (or a series of lump sums) on the death of the life assured provided that the death occurs within a specified period. It has no element of savings or investment.

CASE STUDY THREE

• Whole-of-life policies are geared towards providing a substantial level of life cover but have an element of investment. These policies offer the policy­holder a guaranteed level of cover for the lifetime of the life assured.

• Endowment policies pay a lump sum on the death of the life assured or at the end of the endowment period provided the insured is living. These policies are primarily used as savings vehicles.

• Investment bonds are lump sum whole-life policies and are for investment purposes only.

• Permanent health insurance (PHI) policies are designed to replace lost incomes for an individual who is unable to work due to illness or accident for more than a specified period of time.

• Critical illness cover can be for either a fixed term or whole of life. The sum assured is payable on the diagnosis of a range of illnesses.

• Pension plans provide capital sums at retirement, part of which can be taken as a tax-free lump sum and part of which buys a lifetime pension. Pension investments grow tax-free and tax relief is available on premiums. The premiums can be paid by the individual and/ or the employer depending on the type of pension plan.

The need for legislation

During the 1970s public concern over the ease with which anyone could describe themselves as an insurance broker was growing. The Insurance Brokers' Registration Act 1977 was set up to maintain a register of qualified insurance brokers and to implement rules regarding the conduct of those brokers. This control was limited and further regulation was introduced with the Insurance Companies' Act of 1982, which authorised insurers and how they conducted their business. A report by Professor J Gower in 1982 suggested that the framework could be improved by a Securities Act replacing the many previous Acts. This resulted in the Financial Services Act 1986.

The Financial Services Act regulates investment business carried on by firms or individuals in the UK and imposes a number of rules on how business should be conducted. The means of implementation was delegated to the Securities and Investments Board (SIB). This board introduced new training and competence standards in January 1994 for those involved in selling investment and related products. Life insurance is also self-regulated through LAUTRO for the insur­ance companies and FIMBRA for the IFAs, which have now amalgamated into one single regulator, the Personal Investment Authority (PIA). The PIA has the intention of protecting financial services customers from fraud and incompetent advice by enforcing consistency of standards and introducing new standards of regulation in financial services. Some of the rules recommended are that sales­people must disclose certain information such as:

• their commission at the point-of-sale in cash terms • the effect of management charges and expenses for the policy in cash terms

355

CASE STUDIES

356

• that all quotations must be specific to the life office's own charges • that salespeople must clearly state whether they are independent or a

company representative.

Preparing for these rules ensures a reorganising of their sales operations and attempting to make their policies simpler and more attractive to customers. Costs are more likely to be spread over the life of a policy rather than lumped in the first few years, as has previously been the case. This means that it is in the salesperson's interest to keep the policy going for the duration rather than just close the sale. Standard Life is one company which has abandoned high up­front charges on its pensions and life policies, choosing to fund the initial cost itself and spreading the cost over the entire term to the policy-holder.

Industry scandals

The SIB published a report on the misselling of personal pensions by life insurers and others, suggesting that 1.5 million people may have been wrongly advised to opt out of a company pension, and the financial compensation for this may amount to as much as £2 billion (Economist, 1994). This is one more inci­dent in a long list of wrongdoings by the life assurance and pensions industry, much of which reflects badly on the sales management and salespeople involved in this business. The result is that consumers are increasingly confused and suspicious of financial services companies. For example, the National Consumer Council/MORI Survey of 2,000 respondents found that 88 per cent of consumers believed that, in theory, financial advice should be independent of company interest but 57 per cent felt they had not received impartial approaches. Furthermore, 92 per cent said that financial advice should be clear and easy to understand while 56 per cent have found this not to be the case. One-third of respondents do not feel happy about choosing a pension or allowing an expert to choose one for them. Much of the consumer dissatisfac­tion lies in the confusion between company salespeople and IFAs. The problem of conflict between incentives and commission and being properly objective appears almost irreconcilable. The life insurance industry faces a tough chal­lenge in winning back consumer confidence and loyalty.

Prospects in the life and pensions market

Despite these problems, financial planning is becoming increasingly essential as the idea of state care from cradle to grave is floundering. The worth of the basic state pension will continue to decline as a proportion of average earnings at the same time as the proportion of population over retirement age continues to increase. To redress the balance, consumers will have to build their own savings and the government appears to encourage this idea of self-sufficiency in pension provision. Life insurers face growing competition for people's savings from

Your task

CASE STUDY THREE

other financial institutions, such as building societies, as deregulation continues. European insurers are now also free to sell their policies in the UK. Companies previously operated on the basis that a motivation for selling in this industry was related to the reward the salesperson received yet commission-based advisers are more likely to offer unsound advice when trying to make a sale. Leading companies, to protect their reputation, are now employing salary-paid salespeople who show a commitment to the client and offer the correct advice.

Selling direct to the customer by telephone, first developed in car insurance, has now penetrated the life insurance industry and other financial services. Many companies, such as Commercial Union and Standard Life, have followed Direct Line's approach, but these have been accompanied by non-traditional suppliers such as Marks and Spencer and Virgin. The premise of these opera­tions is that selling by telephone will reduce the cost of providing these prod­ucts and that using computer technology improves the service, information and advice given to customers. MORI also found that 75 per cent of respondents preferred face-to-face contact with sales agents but that 60 per cent of respon­dents would buy a £100 per month premium life insurance if the first year charges were 40 per cent less. Telephone sales enable the price-sensitive appeal to be realised.

0

• •

Discuss the advantages and disadvantages of pursuing a personal selling approach in the life insurance industry .

Using Figure CS3.1 above suggest which approach you feel a company such as Norwich Union, one of the UK's largest insurers, should pursue for their life insurance business .

Outline, as a sales manager, what actions you could take to recruit, train and motivate salespeople to be effective in this industry.

357

358

REFERENCES

CHAPTER 1 Bagozzi, R.P. (ed.) (1979) Sales Management: New Developments from Behavioural and Decision Model Research. Chicago: American Marketing Association and MSI Proceedings.

Cravens, D., Grant, K., Ingram, T., LaForge, R. and Young, C. (1992) In search of excellent sales organisations, European Journal of Marketing, 26 (1): 6-23.

Dubinsky, A.J. and Ingram, T.N. (1987) From selling to sales management: a development model, Journal of Business and Industrial Marketing, 2 (2): 27-36.

Evans, F. B. (1963) Selling as a dyadic relationship- a new approach, American Behavioural Scientist 6: 76-9.

Gronroos, C. (1990) Marketing redefined, Management Decision, 28 (8): S-9. Hakansson, H. (ed.) (1982) International Marketing and Purchasing of Industrial Goods: an

Interaction Approach. New York: John Wiley & Sons. Hite, R.E and Bellizzi, J.A. (1986) A preferred style of sales management, Industrial

Marketing Management, 15 (3): 215-23. Kashani, K. (1987) From strategy to sales, Management Decision, 25 (4): 10--14. Kirkpatrick, C.A. and Russ, F.A. (1981) Effective Selling, 7th edn. Cincinnati: South

Western. Kotler, P. (1997) Marketing Management: Analysis, Planning, Implementation and Control, 9th

edn. Englewood Cliffs, NJ: Prentice-Hall. Lamont, L.M. and Lundstrom, W.J. (1977) Identifying successful industrial salesmen by

personality and personal characteristics, Journal of Marketing Research, XIV (Nov): 517- 29.

Levitt, T. (1960) Marketing myopia, Harvard Business Review, Jul-Aug: 45-56. Loen, R.O. (1964) Sales managers must manage, Harvard Business Review, May-Jun:

86-93. McMurry, R.N. (1961) The mystique of super-salesmanship, Harvard Business Review,

Mar-Apr: 113--22. Morgan, R.M. and Hunt, S.D. (1994) The commitment-trust theory of relationship

marketing, Journal of Marketing, 58 (Jul): 20--38. Pettijohn, C., Pettijohn, L. and Taylor, A. (1995) The relationship between effective coun­

selling and effective behaviors, Journal of Consumer Marketing, 12 (1): 5-15. Reward Group, Sales and Marketing Rewards 1997. Stone, Staffs: Reward Group/CIM. Ryans, A.B. and Weinberg, C.B. (1981) Salesforce management: integrating research

advances, California Management Review, 24 (1): 75-89. Sales and Marketing Management (1993) Sales manager's budget planner, 28 June: p. 65. Sheth, J.N . and Parvatiyar, A. (1995) The evolution of relationship marketing,

International Business Review, 4 (4): 397-418. Still, R.R., Cundiff, E.W. and Govoni, N.A.P. (1988) Sales Management: Decisions Strategies

and Cases, 5th edn. Englewood Cliffs, NJ: Prentice-Hall. Turnbull, P.W. and Cunningham, M.J. (1981) International Marketing and Purchasing,

London: Macmillan.

REFERENCES

Avlonitis, G.J., Boyle, K.A. and Kouremenos, A.G. (1986) Matching salesmen to .the selling job, Industrial Marketing Management, 15 (1): 45-54.

Bettger, E. (1949) How I Raised Myself from Failure to Success in Selling. Englewood Cliffs, NJ: Prentice-Hall.

Cespedes, F.V. (1996) Managing Marketing Linkages: Texts, Cases and Readings. Upper Saddle River, NJ: Prentice-Hall.

Chu, W., Gestner, E. and Hess, J.D. (1995) Costs and benefits of hard-sell, Journal of Marketing Research, XXXII (Feb): 97-102.

Cravens, D., Grant, K., Ingram,T., LaForge, R. and Young, C. (1992) In search of excellent sales organisations, European Journal of Marketing, 26 (1): 6-23.

Cuddihy, L. (1996) An investigation of sales management practices in the Irish pharma­ceutical industry. Unpublished MBS thesis, Dublin City University School.

Dion, P.A. and Banting, P.M. (1988) Industrial supplier-buyer negotiations, Industrial Marketing Management, 17: 43-7.

Doney, P.M. and Cannon, J.P. (1997) An examination of the nature of trust in buyer-seller relationships, Journal of Marketing, 61 (Apr): 35-51.

Kahn, G.N. and Schuchman, A. (1961) Specialise your salesmen, Harvard Business Review, Jan-Feb: 125-33.

McMurry, R.N. (1961) The mystique of super-salesmanship, Harvard Business Review, 39: 113-22.

McMurry, R.N. and Arnold, J.S. (1968) How to Build a Dynamic Sales Organisation. New York: McGraw-Hill.

Millman, A.F. and Wilson, K.J. (1995) From key account selling to key account manage­ment, Journal of Marketing Practice, 1 (1): 8-21.

Millman, A.F. and Wilson, K.J. (1996) Developing key account management competen­cies, Journal of Marketing Practice, 2 (2): 7-22.

Moncrief, W.C. (1986) Selling activity and sales position taxonomies for industrial sales­forces, Journal of Marketing Research, XXIII (Aug): 261-70.

Moncrief, W.C. (1988) Five type of industrial sales jobs, Industrial Marketing Management, 17: 161-7.

Newton, D.A. (1969) Get the most out of your sales force, Harvard Business Review, Sep-Oct: 16-29.

Rosenbloom, B. and Anderson, R.E. (1984) The sales manager: tomorrow's super marketer, Business Horizons, Mar-Apr: 50-6.

Sujan, H., Weitz, B.A. and Kumar, N. (1994) Learning orientation, working smart, and effective selling, Journal of Marketing, 58 (Jul): 39-52.

Tack, A. (1989) Increase Your Sales the Tack Way. Aldershot: Gower. Wilson, K. (1993) Managing the industrial sales force of the 1990s, Journal of Marketing

Management, 9 (2): 123-39.

Bettger, F. (1949) How I Raised Myself from Failure to Success in Selling, Englewood Cliffs, NJ: Prentice-Hall.

Buzzotta, V.R., Lefton, R.E. and Sherberg, M. (1982) Effective Selling Through Psychology. Cambridge, MA: Ballinger.

Churchill, G.A., Ford, N.M., Hartley, S.W. and Walker, O.C. (1985) The determinants of salesperson performance: a meta-analysis, Journal of Marketing Research, XXII (May): 103-18.

Crosby, L.A., Evens, R.K. and Cowles, D. (1990) Relationship quality in service selling: an interpersonal influence perspective, Journal of Marketing, 54 (Jul): 68-81.

Derose, L.J. (1988) What the buyer-seller partnership requires, Purchasing World,32 (5): 74-5. Ditz, G.W. (1967) Status problems of the salesman, MSU Business Topics, Winter: 68-77. Donaldson, B. (1997) The importance of financial incentives in motivating salespeople.

Proceedings of the 1st International Symposium on Selling and Major Account Management. Southampton: Southampton Institute.

359

SALES MANAGEMENT

360

Donaldson, B. and Thomson, C. (1991) Recruiting graduates into sales. Preparing Marketing for the New Millenium. Proceedings of the 1991 Marketing Education Group, Cardiff, pp. 340-53.

Donaldson, B., Tzokas, N. and Saren, M. (1997) Project RELATOR: assessing the relation­ship orientation of salespeople. Proceedings of 31st Annual Conference of the Academy of Marketing, Manchester.

Dunkeld, S.B. and Cashin, M.R. (1979) Sales Force Practice Today, Cookham: Institute of Marketing.

Dwyer, F.R., Schurr, P.H. and Oh, S. (1987) Developing buyer-seller relationships, Journal of Marketing, 51 (2): 11-27.

Gillan, A. (1982) The Principles and Practice of Selling. London: Heinemann. Greenberg, J. and Greenberg, H. (1976) Predicting sales success: myths and reality,

Personnel Journal, Dec: 621~7. Hakansson, H. (ed.) (1982) International Marketing and Purchasing of Industrial Goods- An

Interaction Approach. New York: John Wiley & Sons. Hayes, H.M. and Hartley, S.W. (1989) How buyers view industrial salespeople, Industrial

Marketing Management, 18: 73-80. Lamont, L. M. and Lundstrom, W. J. (1977) Identifying successful industrial salesmen by

personality and personal characteristics, Journal of Marketing Research, XIV (Nov): 517-29.

Levitt, T. (1967) Communications and industrial selling, Journal of Marketing, 31 (Apr): 15-21.

Mason, J.L. (1965) The low prestige of personal selling, Journal of Marketing, 29 (4): 7-10. Mayer, D. and Greenberg, H. M. (1964) What makes a good salesman, Harvard Business

Review, Jul-Aug: 119-25. Morrill, J.E. (1970) Industrial advertising pays off, Harvard Business Review, Mar-Apr:

4-14. Morris, M.H. and Holman, J.L. (1988) Source loyalty in organisational markets: a dyactic

perspective, Journal of Business Research, 16 (2): 117-31. Plank, R.E. and Reid, D.A. (1994) The mediation role of sales behaviors: an alternative

perspective on sales performance and effectiveness, Journal of Personal Selling and Sales Management, 14 (3): 43-56.

Rackham, N. (1987) Making Major Sales. Aldershot: Gower. Ramsey, R., Lassk, F.G and Marshall, G.W. (1995) A critical evaluation of a measure of job

involvement: the use of the WDAHL and KEJNER (1965) scale with salespeople, Journal of Personal Selling and Sales Management, XV (Summer): 65-74.

Rochford, L. and Wotruba, T.R. (1993) New product development under changing economic conditions: the role of the salesforce, Journal of Business and Industrial Marketing, 8 (3): 4-12.

Sigaw, J.A. and Honeycutt, E.D. (1995) An examination of gender differences in selling behaviours and job attitudes, Industrial Marketing Management, 24: 45-52.

Spiro, R.L. and Weitz, B.A. (1990) Adaptive selling: conceptualisation, measurement and nomological validity, Journal of Marketing Research, 28 (Feb): 61-9.

Spekeman, R.E. (1988) Strategic supplier selection: understanding long-term buyer rela­tionships, Business Horizons, 31 (Jul-Aug): 75-81.

Walker, O.C., Churchill, G.A. and Ford, N.M. (1977) Motivation and performance in industrial selling: present knowledge and needed research, Journal of Marketing Research, XIV (May): 15~8.

Weitz, B.A. (1978) Relationship between salesperson performance and understanding of customer decision-making, Journal of Marketing Research, XV (Nov): 501-16.

Weitz, B.A., Sujan, H. and Sujan, M. (1986) Knowledge, motivation and adaptive behav­iour: a framework for improving selling effectiveness, Journal ofMarketing, 50 (Oct): 174-91.

REFERENCES

Anderson, E., Chu, W. and Weitz, B. (1987) Industrial purchasing: empirical exploration of the buyclass framework, Journal of Marketing, 51 (3): 71--86.

Brock, T.C. (1965) Communicator-recipient similarity and decision change, Journal of Personality and Social Psychology, 1 (6): 650--4.

Buckner, H. (1967) How British Industry Buys. London: Hutchinson. Davis, H.L. and Silk, A.J. (1972) Interaction and influence processes in personal selling,

Sloan Management Review, Wmter: 59-76. Donaldson, B. (1994) Supplier selection criteria on the service dimension: some empirical

evidence, European Journal of Purchasing and Supply Management, 1 (4): 209-17. Doney, P.M. and Cannon, J.P. (1997) An examination of the nature of trust in buyer-seller

relationships, Journal of Marketing, 61 (Apr): 35-51. Engel, J.F., Blackwell, R.D. and Miniard, P.W. (1994) Consumer Behaviour, 8th edn. Fort

Worth: Dryden Press. Greenberg, J. and Greenberg, H. (1976) Predicting sales success: myths and reality,

Personnel Journal, Dec: 621-7. Gwinner, A. (1968) Base theory in the formulation of sales strategy, MSV Business Topics,

16:37-44. Hayes, H.M. and Hartley, S.W. (1989) How buyers view industrial salespeople, Industrial

Marketing Management, 18: 73--80. Heiman, A. and Muller, E. (1996) Using demonstration to increase new product accep­

tance: controlling demonstration time, Journal of Marketing Research, XXXIII (Nov): 422-30.

Hite, R.E. and Bellizzi, J.A. (1986) A preferred style of sales management, Industrial Marketing Management, 15 (3): 215-23.

Howard, J.A. and Sheth, J.N. (1969) The Theory of Buyer Behaviour. New York: John Wiley &Sons.

Hunt, S.D. (1983) General theories and the fundamental explananda of marketing, Journal of Marketing, 47 (Fall): 9-17.

JICNARS (1970) Social Grading on the National Readership Survey. London: Research Services Limited.

Kotler, P. (1997) Marketing Management: Analysis Planning Implementation and Control, 9th edn. Englewood Cliffs, NJ: Prentice-Hall.

Levitt, T. (1967) Communications and industrial selling, Journal of Marketing, 31: 15-21. McDermott, D.R. and Schweitzer, C.N. (1980) Product v. customer focused industrial

selling, Industrial Marketing Management, 9 (2): 151-7. Market Research Society (1981) An evaluation of social grade validity. MRS: London. Maslow, A.H. (1954) Motivation and Personality. New York: Harper & Row. O'Toole, T. (1996) Relationship governance: structure and performance in industrial

markets. Unpublished PhD thesis, University of Strathclyde, Glasgow. Palda, K.S. (1966) The hypothesis of a hierarchy of effects: a partial evaluation, Journal of

Marketing Research, 111 (Feb): 13-24. Rackham, N. (1987) Making Major Sales. Aldershot: Gower. Rackham, N. (1988) Account Strategy for Major Sales. Aldershot: Gower. Rackham, N. (1995) Spin Selling. Aldershot: Gower. Ramsey, R.P. and Sohi, R.S. (1997) Listening to your customers: the impact of perceived

salesperson listening behavior on relationship outcomes, Journal of the Academy of Marketing Science, 25 (2): 127-37.

Robinson, P.J., Farris, C.W. and Wind, Y. (1967) Industrial Buying and Creative Marketing. Boston: Allen & Bacon.

Rogers, E.M. (1982) Diffusion of Innovations, 3rd edn. New York: Free Press. Schmitz, J.M. (1995) Understanding the persuasion process between industrial buyers

and sellers, Industrial Marketing Management, 24 (4): 83-90. Sheldon, A.F. (1902) The Art of Selling. Chicago: Sheldon School. Strong, E.K. (1925) The Psychology of Selling. New York: McGraw-Hill.

361

SALES MANAGEMENT

362

Sujan, H., Weitz, B.A. and Kumar, N. (1994) Learning orientation, working smart, and effective selling, Journal of Marketing, 58 (July): 39-52.

Tosi, H.L. (1966) Effects of expectation levels and role consensus on buyer-seller dyad, Journal of Business, 39 (4): 516-29.

Webster, F.E. and Wind, Y. (1972) Organisational Buying Behaviour. Englewood Cliffs, NJ: Prentice-Hall.

Wells, W.D. and Gubar, G. (1996) Life-cycle concepts in marketing research, Journal of Marketing Research, XXXIII (Nov): 355-63.

Wernerfelt, B. (1996) Efficient marketing communication: helping the customer learn, Journal of Marketing Research, XXXIII (May): 239-46.

Baker, M.J. and Parkinson, S.T. (1986) Organisational Buying Behaviour: Purchasing and Marketing Management Implications. London: Macmillan.

Bhote, K.R. (1989) Strategic Supply Management: A Blueprint for Revitalising the Manufacturer-Supplier Partnership. New York: American Management Association.

Buzzotta, V.R., Lefton, R.E. and Sherberg, M. (1982) Effective Selling Through Psychology. Cambridge, MA: Ballinger.

Christopher, M., Payne, A. and Ballantyne, D. (1991) Relationship Marketing. Oxford: Butterworth-Heinneman.

Cronin, J.J. (1994) Analysis of the buyer-seller dyad: the social relations model, Journal of Personal Selling and Sales Management, 14 (3): 69-76.

Crosby, L.A., Evans, R.K. and Cowles, D. (1990) Relational quality in services selling: an interpersonal influence perspective, Journal of Marketing, 54 (3): 68-81.

DeCormier, R.A. and Jobber, D. (1993) The counsellor selling method: concepts and constructs, Journal of Personal Selling and Sales Management, 23 (4): 39-59.

Dion, P., Easterling, D. and Miller, S.J. (1995) What is really necessary in successful buyer/seller relationships?, Industrial Marketing Management, 24: 1-9.

Donaldson, B. (1997) The importance of financial incentives in motivating salespeople. Proceedings of the 1st International Symposium on Selling and Major Account Management. Southampton: Southampton Institute.

Donaldson, W.G. and O'Toole, T. (1997) Relationship governance: the link between rela­tionship structure and performance outcomes in industrial markets. New and Evolving Paradigms: The Emerging Future of Marketing. Dublin: AMA Proceedings.

Dwyer, F.R., Schurr, P.H. and Oh, S. (1987) Developing buyer-seller relationships, Journal of Marketing, 51 (Apr): 11-27.

Evans, F. B. (1963) Selling as a dyadic relationship- a new approach, American Behavioural Scientist, 6: 76-9.

Ford, D. (ed.) (1990) Understanding Business Markets. London: Academic Press. Hakansson, H. (ed.) (1982) International Marketing and Purchasing of Industrial Goods- An

Interaction Approach. New York: John Wiley & Sons. Hallen, L. and Johanson, J. (1985) Industrial marketing strategies and different national

environments, Journal of Business Research, 13: 495-509. Honeycutt, E.D. Jr (1996) Introduction to the special edition on selling and sales manage­

ment, Industrial Marketing Management, 25: 323-5. Hutt, M.D. and Speh, T.W. (1995) Business Marketing Management: A Strategic View of

Industrial and Organisational Markets, 5th edn. Fort Worth, TX: Dryden Press. Ingram, T.N., Lee, K.S. and Lucas, G.H. Jr (1991) Commitment and involvement:

assessing a salesforce typology, Journal of the Academy of Marketing Science, 19 (3): 187-97.

Jackson, B.B. (1985) Winning and Keeping Industrial Customers. Lexington, MA: D.C. Heath.

Jaworski, B.J. (1988) Toward a theory of marketing control: environmental context, control type and consequences, Journal of Marketing, 52 (Jul): 23-39.

McKenna, R., (1991) Relationship Marketing. London: Centuary Business. Majaro, S. and McDonald, M. (1985) Sales force power, Management Today, Jul: 76-8.

REFERENCES

Manning, G.L. and Reece, B.L. (1992) Selling Today: An Extension of the Marketing Concept, 5th edn. Boston: Allyn & Bacon.

Morgan, R.M. and Hunt, S.D. (1994) The commitment-trust theory of relationship marketing, Journal of Marketing, 58 (Jul): 20-38.

Plank, R.E. and Dempsey, W.A. (1980) A framework for personal selling to organisations, Industrial Marketing Management, 9 (2): 143--9.

Rochford, L. and Wortruba, T.R. (1993) New product development under changing economic conditions: the role of the sales force, Journal of Business and Industrial Marketing, 8 (3): 4-12.

Saxe, R. and Weitz, B.A. (1982) The SOCO scale; a measure of the customer orientation of salespeople, Journal of Marketing Research, XIX (Aug): 343--51.

Sharma, A. and Sarel, D. (1995) The impact of customer satisfaction based incentive systems on salespeople's customer service response: an empirical study response, Journal of Personal Selling and Sales Management, 15 (Summer): 1-9.

Shipley, D. and Kiely, J. (1986) Problems confronting industrial salespeople, Journal of Sales Management, 3 (1): 3--6.

Singh, J. (1993) Boundary role ambiguity: facets, determinants, impacts, Journal of Marketing, 57 (Apr): 11-31.

Singh, J., Goolby, J.R. and Rhoads, G.K. (1994) Behavioral and psychological con­sequences of boundary spanning burnout for customer service representatives, Journal of Marketing Research, XXXI (Nov): 558-69.

Spiro, R.L. and Weitz, B.A. (1990) Adaptive selling: conceptualisation, measurement and nomological validity, Journal of Marketing Research, XXVIII (Feb): 61-9.

Stidsen, B. (1967) Interpersonal communications and personal selling, in Mayer, M.S. and Vosburgh, R.L. (eds) Marketing for Tomorrow- Today. Chicago: American Marketing Association Proceedings, 111-16.

Sujan, H., Weitz, B.A. and Kumar, N. (1994) Learning orientation, working smart, and effective selling, Journal of Marketing, 58 (Jul): 39-52.

TARP (Technical Assistance Research Programs) (1990) Maximising Customer Satisfaction and Directly Linking to the Bottom Line. Washington, DC: US Office of Consumer Affairs.

Turnbull, P.W. and Valla, J.P. (1986) Strategies for International Industrial Marketing. London: Croom Helm.

Waller, D. (1994) Mercedes Saves DM 1bn Through Supplier Projects, Financial Times, 24 February, p. 34.

Weitz, B.A. (1981) Effectiveness in sales interactions: a contingency framework, Journal of Marketing, 45 (Winter): 85-103.

Wheatley, M. (1994) Score card for the suppliers, Financial Times, 2 March, p. 26. Withey, J.J. and Panitz, E. (1995) Face-to-face selling: making it more effective, Industrial

Marketing Management, 24: 239-46. Wortruba, T.R. (1996) The transformation of industrial selling: causes and consequences,

Industrial Marketing Management, 25: 327-8.

Butler, P. (1997) A revolution in interaction, McKinsey Quarterly, No.1. Chanders, A., Graham, J. and Williamson, R. (1985) Dictionary of Computers. London:

Penguin. Comer, J.M. (1975) The computer, personal selling and sales management, Journal of

Marketing, 39 (3): 27-33. Deans, K.R. (1990) In Macmillan Dictionary of Marketing and Advertising. London:

Macmillan Press. Donaldson, B. and Domegan, C.T. (1992) Customer service and information technology,

Journal of Information Technology, 7: 203--212. Fletcher, K. (1995) Marketing Management and Information Technology, 2nd edn. Hemel

Hempstead: Prentice-Hall. Jobber, D. (1975) Marketing information systems, Marketing Forum, 1: 2-9.

363

SALES MANAGEMENT

364

Kotler, P. (1997) Marketing Management: Analysis, Planning, Implementation and Control, 9th edn. Englewood Cliffs, NJ: Prentice-Hall.

Lucey, T. (1991) Management Information Systems, 6th edn. Hampshire: DP Publications. Piercy, N.F. (1997) Market-led Strategic Change: Transforming the Process of Going to Market,

2nd edn. Oxford: Butterworth-Heinemann. Price Waterhouse (1996) Sales and Management Software Handbook. London: Pitman. Scott, G.M. (1986) Principles of Management Information Systems. New York: McGraw-Hill. Young, W.J. (1987) Have computers revolutionised sales management?, Management

Review, 76 (4): 54-5.

Battersby, A. (1968) Sales Forecasting. London: Cassell. Chambers, J.C., Satinder, K.M. and Smith, D.D. (1971) How to choose the right fore­

casting technique, Harvard Business Review, Jul-Aug: 45-74. Dalrymple, D.J. and Thorelli, H.B. (1984) Sales force budgeting, Business Horizons, 37 (4):

31-6. Director (1987) Time to take a look at your sales force, Director, Sep: 99. Mathews, B.P. and Diamantopoulos, A. (1986) Factors influencing the nature and effec­

tiveness of subjective revision of objective sales forecasts: an empirical analysis, Contemporary Research in Marketing, Proceedings of the XVth Annual Conference of the European Marketing Academy, Helsinki, p. 913.

Fouss, J.H. and Solomon, E. (1980) Salespeople as researchers: help or hazard, Journal of Marketing, 44 (Summer): 36-9.

Keynote (1997) Retailing in the UK. London: Keynote Publications. Schiff, J.S. and Schiff, M. (1967) New sales management tool: ROAM, Harvard Business

Review, Jul-Aug: 59-66. Thietart, R.A. and Vivas, R. (1981) Strategic intelligence activity: the management of the

sales force as a source of strategic information, Strategic Management Journal, 2: 15-25. Wotruba, T.R. and Thurlow, M.L. (1976) Sales force participation in quota setting and

sales-forecasting, Journal of Marketing, 40 (2): 11-16.

AMA (1996) Enhancing Knowledge Development in Marketing. In Droge, C. (ed.) American Marketing Academy Educators' Proceedings. Chicago, IL: AMA.

Anderson, E. (1985) The salesperson as outside agent or employee: a transaction cost analysis, Marketing Science, 4 (3): 234-54.

Bagozzi, R.P. (1980) Performance and satisfaction in an industrial sales force: an exami­nation of their antecedents and simultaneity, Journal of Marketing, 44 (Spring): 65-77.

Bobrow, E.E. (1982) Suddenly, an urge to boost their potential, Sales and Marketing Management, 7 June: 37.

Donaldson, B. (1996) Industrial marketing relationships and open-to-tender contracts: co­operation or competition?, Journal of Marketing Practice: Applied Marketing Science, 2 (2): 23-34.

Donaldson, B., Tzokas, N. and Saren, M. (1997) Project RELATOR: assessing the relation­ship orientation of salespeople. Proceedings of 31st Annual Conference of the Academy of Marketing, Manchester Metropolitan University.

Drucker, P.F. (1968) The Practice of Management. London: Pan Books. Laforge, R.W., Cravens, D.W. and Young, C.E. (1985) Improving salesforce productivity,

Business Horizons, 28 (3): 50-9. Levitt, T. (1967) Communications and industrial selling, Journal of Marketing, 31 (Apr):

15-21. Millman, T. and Wilson, K. (1995) From key account selling to key account management,

Journal of Marketing Practice, 1 (1): 9-21. Millman, T. and Wilson, K. (1996) Developing key account management competencies,

Journal of Marketing Practice, 2 (2): 7-22.

REFERENCES

Morrill, J.E. (1970) Industrial advertising pays off, Harvard Business Review, Mar-Apr: 4-14.

Pardo, C., Salle, R. and Spencer, R. (1995) The key accountisation of the firm: a case study, Industrial Marketing Management, 22 : 123-34.

Peters, T. (1987) Thriving on Chaos: Handbook for a Management Revolution. New York: KNOPF.

Sernlow, W.J. (1959) How many salesmen do you need?, Harvard Business Review, May-Jun: 47-53.

Shapiro, B.P. (1979) Account management and sales organisation new developments in practice. In Sales Management: New Developments from Behavioural and Decision Model Research, American Marketing Association and MSI Proceedings, August.

Smith, D.C. and Owens, J.P. (1995) Knowledge of customers' customers as a basis of sales force differentiation, Journal of Personal Selling and Sales Management, XV (3): 1-15.

Still, R.R., Cundiff, E.W. and Govoni, N.A.P. (1988) Sales Management: Decisions, Strategies and Cases, 5th edn. Englewood Cliffs, NJ: Prentice-Hall International.

Talley, W. (1961) How to design sales territories, Journal of Marketing, 25: 7-13. Wotruba, T.R. (1982) Comment on analysis of sales call effectiveness, Journal of Marketing

Research, XIX (Nov): 595-6.

Armstrong, G.M. (1976) The SCHEDULE model and the salesman's effort allocation, California Management Review, 17 (4): 43-51.

Barker, T. (1980) A systems approach to sales force allocation decisions, Management Forum (Australia), 6 (3): 156-67.

Beswick, C.A. and Cravens, D.W. (1977) A multi-stage decision model for sales force management, Journal of Marketing Research, XIV (May): 135-44.

CACI (1997) Insite Fieldforce, Leamington Spa: CACI Information Services. CCN (1997) Nottingham (tel: 0115 934 4944). Comer, J.M. (1975) The computer, personal selling and sales management, Journal of

Marketing, XXI (May): 27-33. Cravens, D.W., Woodruff, R.B. and Stamper, J.C. (1972) An analytical approach for eval­

uating sales territory performance, Journal of Marketing, 36 (1): 31-7. Dunkeld, S.B. and Cashin, M.R. (1979) Sales Force Practice Today. Cookham: Institute of

Marketing. Laforge, R. and Cravens, D.W. (1982) Steps in selling effort deployment, Industrial

Marketing Management, 11: 183-94. Lodish, L.M. (1971) CALLPLAN: an interactive salesman's call planning system,

Management Science, 18: 4-11. Lodish, L.M. (1974) Vaguely right-approach to sales force allocation, Harvard Business

Review, Jan-Feb: 54-9. Lodish, L.M. (1980) A user-oriented model for sales force size, product and market allo­

cation decisions, Journal of Marketing, 44 (Summer): 70-8. Lucas, H.C., Weinberg, C. B. and Clowes, K.W. (1975) Sales response as a function of terri­

tory potential and sales representative workload, Journal of Marketing Research, XII (Aug): 298-305.

McClure, R.H. and Well, C.E. (1987) Incorporation sales force preferences in a goal programming model for the sales resource allocation problem, Decision Sciences, 18 (4): 677-81.

Manolis, C.K. (1985) Sales force management in British manufacturing industry: an empirical investigation. Unpublished MSc thesis, University of Strathclyde, Glasgow.

Sales and Marketing Management (1986) How salespeople spend their time, Sales and Marketing Management, Jul: 29.

Parasuraman, A. and Day, R.L. (1977) A management-oriented model for allocating sales effort, Journal of Marketing Research, XIV (Feb): 22-3.

365

SALES MANAGEMENT

366

Parsons, L.J. and Abeele, P.V. (1981) Analysis of sales call effectiveness, Journal of Marketing Research, XVIII (Feb): 107-13.

Ryans, A.B. and Weinberg, C.B. (1979) Territory sales response, Journal of Marketing Research, XVI (Nov): 453-65.

Shaw, R. (1991) Computer Aided Marketing and Selling. Oxford: Butterworth-Heinemann. Sinha, P. and Zoltners, A. (1988) Matching manpower and markets, Business Marketing, 73

(9): 95-8. Thompson, W.W. and McNeal, J.U. (1967) Sales planning and control issuing absorbing

Markov chains, Journal of Marketing Research, IV (Feb): 62--6. Vavra, T.G. (1992) Aftermarketing: How to Keep Customers for Life Through Relationship

Marketing. Homewood, IL: Irwin.

Chowdhury, J. (1993) The motivational impact of sales quotas on effort, Journal of Marketing Research, XXX (Feb): 28-41.

Darmon, R.Y. (1979) Setting sales quotas with conjoint analysis, Journal of Marketing Research, XVI (Feb): 133--40.

Darmon, R.Y. (1982) Identifying profit-producing sales force members, Journal of Personal Selling and Sales Management, Nov: 15-24.

Dunkeld, S.B. and Cashin, M.R. (1979) Sales Force Practice Today. Cookham: Institute of Marketing.

Futrell, C.M. (1998) Sales Management, Teamwork, Leadership and Technology, 5th edn. Orlando: Dryden Press.

Jackson, W., Keith, J.E. and Schlacter, J.L. (1983) Evaluation of selling performance: a study of current practices, Journal of Personal Selling and Sales Management, Nov: 46-7.

Leathers, J.O. (1967) Applying management by objectives to the sales force, Personnel, 44: 45-50.

Bennett, J. (1996) The Internet as a research tool in international trade, Croner's Export Digest, 39 (11): 17-19.

Chan, T.S. (1992) Emerging trends in export channel strategy: an investigation of Hong Kong and Singaporean firms, European Journal of Marketing, 26 (3):18-26.

Croner (1993) EC Agency Law, Exporter's Briefing, 50: 1. Croner (1994) Where is it safest to trade? Exporter's Briefing, 67: 5-6. Ford, D. and Rosson, P.J. (1982) The relationships between export manufacturers and

their overseas distributors. In Czinkota, M.R. and Tesar, G. (eds) Export Management. New York: Praeger.

Graham, J.L., Ichikawa, S. and Apasu, Y. (1987) Managing your sales force in Japan and the U.S., Euro-Asia Business Review, January. In Meloan, T.W. and Graham, J.L. (1995) International and Global Marketing. Chicago: Irwin.

Hofstede, G. (1981) Cultural Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage.

Jennings, C. (1989) Finding distributors in the USA, Industrial Marketing Digest, 14: 119-25.

Kalika, A., Piercy, N. and Katsikeas, C.S. (1997) The impact of company export develop­ment on exercised power in relationships between manufacturers and overseas distributors, Journal of Marketing Management, 13 (1-3): 119-34.

Katsikeas, C.S., Kalika, A. and Koufopouloz, D. (1994) Distributors' supply source selec­tion criteria in international industrial markets, European Marketing Academy Proceedings, 23rd Annual Conference, Maastricht, 1341-4.

Keng, K.A. and Juian, T.S. (1989) Differences between small and medium sized exporting and non-exporting firms: nature or nurture, International Marketing Review, 6 (4): 27-40.

Madsen, T.K. (1989) Successful export marketing management: some empirical evidence, International Marketing Review, 6 (4): 41-57.

REFERENCES

Moore, R.A. (1992) A profile of UK manufacturers and West German agents and distrib­utors, European Journal of Marketing, 26 (1): 41-51.

Neale, C.W. and Schmidt, R.A. (1991) Exporters' credit policy: an Anglo-West German comparative policy, European Journal of Marketing, 25 (5): 7-19.

Poon, S. and Jevons, C. (1997) Internet-enabled international marketing: a small business perspective, Journal of Marketing Management, 13 {1-3): 29-42.

Rosson, P.J. (1987) The overseas distribution method: performance and change in a harsh environment. In Rosson, P.J. and Reid, S.J. (eds) Managing Export Entry and Expansion. New York: Praeger.

Shipley, D., Cook, D. and Barnett, E. (1989) Recruitment, motivation, training and evolu­tion of overseas distributors, European Journal of Marketing, 23 (2): 79-93.

Singleton, S. (1993) Formulating an agency agreement, Croner's Bulletin, (4) March. Turnbull, P.W. (1987) A challenge to the stages theory of the internationalisation process.

In Rosson, P.J. and Reid, S.J. (eds) Managing Export Entry and Expansion. New York: Praeger.

Usunier, J-C. (1996) Marketing Across Cultures, 2nd edn. Hemel Hempstead: Prentice-Hall. Wheeler, C., Jones, M. and Young. S. (1996) Market entry modes and channels of distrib­

ution in the machine tool industry in the UK, European Journal of Marketing, 30 (4): 40-57.

Young, S., Hamill, J., Wheeler, C. and Davies, J.R. (1989) International Market Entry, Hemel Hempstead: Harvester Wheatsheaf/Prentice-Hall.

Avlonitis, C.J., Boyle, K.A. and Kouremenos, A. G. (1986) Matching salesmen to the selling job, Industrial Marketing Management, 15: 45-54.

Avlonitis, C. J., Manolis, C. K. and Boyle, K. (1985) Sales management practices in the UK manufacturing industry, Journal of Sales Management, 2 (2): 6-16.

Darmon, R. (1993) Sales force recruiting and training policies for minimising turnover costs, Marketing for the New Europe: Dealing with Complexity. Proceedings of the 22nd EMAC Conference, Barcelona, pp. 27-44.

Donaldson, B. and Thomson, C. (1991) Recruiting graduates into sales. Preparing Marketing for the New Millennium. Proceedings of the 1991 Marketing Education Group, Cardiff, pp. 340-53.

Fleenor, C.P. (1987) Selling and sales management in action: assessment centre selection of sales representatives, Journal of Personal Selling and Sales Management, 7 (1): 57-9.

Granger, R.H. (1988) Sales management: is it fact or fancy? National Underwriter, 92: 14 Nov: 63-5.

Makin, P.J. and Robertson, LT. (1986) Management selection in Britain: a survey and critique, Journal of Occupational Psychology, 51 (1): 45-57.

Moss, S. (1978) What sales executives look for in new salespeople, Journal of Sales and Marketing, Mar: 56-8.

Perrault, W.D., French, W.A. and Harris, C.E. (1977) Use of multiple discriminant analysis to improve the salesman selection process, Journal of Business, Jan: 50-62.

Rogers, L. (1987) Handbook of Sales and Marketing Management. London: Kogan Page. Salisbury, G.B. (1982) Properly recruit salespeople to reduce training cost, Industrial

Marketing Management, 11: 14~.

Buzzotta, V.R., Lefton, R.E. and Sherberg, M. (1982) Effective Selling Through Psychology, Cambridge, MA: Ballinger.

Cron, W.L. (1984) Industrial salesperson development: a career stages perspective, Journal of Marketing, 48 (Fall): 41-52.

Darmon, R. (1993) Sales force recruiting and training policies for minimising turnover costs, Marketing for the New Europe: Dealing with Complexity. Proceedings of the 22nd EMAC Conference, Barcelona, pp. 27-44.

367

SALES MANAGEMENT

368

Erffmyer, R.C., Russ, K.R. and Hair, J.F. Jr (1992) Traditional and high-tech sales training methods, Industrial Marketing Management, 21: 125-31.

Honeycutt, E.D. Jr, Howe, V. and Ingram, T.N. (1993) Shortcomings of sales training programs, Industrial Marketing Management, 22: 117-23.

Honeycutt, E.D. Jr, Ford, J.B. and Tanner, J.F. (1994) Who trains salespeople?: the role of sales trainers and sales managers, Industrial Marketing Management, 23: 65-70.

Johnson, E.M., Kurtz, D.L. and Schelling, E.E. (1994) Sales Management Concepts, Practices, and Cases. New York: McGraw-Hill.

Lidstone, J. (1986) Training Salesmen on the Job, 2nd edn. Aldershot: Gower. Manolis, C.K. (1985) Sales force management in British manufacturing industry: an

empirical investigation. Unpublished MSc thesis, University of Strathclyde, Glasgow. Purl, S.J. (1993) Where industrial sales training is weak, Industrial Marketing Management,

22:101-8. Rackham, N. (1987) Making Major Sales. Aldershot: Gower. Stanton, W.J., Buskirk, R.H. and Spiro, R.L. (1991) Management of a Sales Force, 8th edn.

Homewood, IL: Irwin. Wale, P. (1984) Preaching the new gospel of sales training, RYDGES, Jun: 48-50. Weitz, B. (1978) Relationship between salesperson performance and understanding of

customer decision-making, Journal of Marketing Research, XV (Nov): 501-16.

Bagozzi, P. (1980) Performance and satisfaction in an industrial sales force: an examina­tion of their antecedents and simultaneity, Journal of Marketing, 44 (Spring): 65-77.

Behrman, D.N. and Perreault, W.D. Jr (1984) A role stress model of the performance and satisfaction of industrial salespersons, Journal of Marketing, 48 (Fall): 9-21.

Berl, R., Powell, T. and Williamson, N.C. (1984) Industrial sales force satisfaction and performance with Herzberg's theory, Industrial Marketing Management, 13: 11-19.

Blake, R.R. and Mouton, J.S. (1964) The Managerial Grid. Houston: Gulf Publishing. Blake, R.R. and Mouton, J.S. (1978) The New Managerial Grid. Houston: Gulf Publishing. Busch, P. (1980) The sales manager's bases of social power and influence upon the sales

force, Journal of Marketing, 44 (Spring): 91-101. Challagalla, G.N. and Shervani, T.A. (1996) Dimensions and types of supervisory control:

effects on salesperson performance and satisfaction, Journal of Marketing, 60 (Jan): 89-105.

Churchill, G.A., Ford, N.M. and Walker, O.C. (1976) Organisational climate and job and satisfaction in the sales force, Journal of Marketing Research, XIII (Nov): 323-32.

Comer, J.M. (1984) A psychometric assessment of a measure of sales representatives' power perceptions, Journal of Marketing Research, XXI (May): 221-5.

Comer, J.M. (1991) Sales Management. Needham Heights, MA: Allyn & Bacon. Dubinsky, A.J. and Lippit, M.E. (1979) Managing frustration in the sales force, Industrial

Marketing Management, 8:200--6. Dubinsky, A.J. and Lippit, M.E. (1980) Techniques that reduce sales force frustration,

Industrial Marketing Management, 9: 159-64. French, J.R.R. and Raven, B. (1959) The bases of social power. In Cartwright, D. (ed.),

Studies in Social Power. Ann Arbor: University of Michigan Press. Hunt, S.D. and Vasquez-Parraga, A.Z. (1993) Organizational consequences, marketing

ethics, and salesforce supervision, Journal of Marketing Research, XXX (Feb): 78-90. Hutchinson, E. (1986) The sales management zoo, Management Today, Mar: 64-7. Johnson, E.M., Kurtz, D.L. and Scheuing, E.E. (1994) Sales Management Concepts, Practices

and Cases. New York: McGraw-Hill. Johnston, W.J. and Kim, K. (1994) Performance, attribution and expectancy linkages in

personal selling, Journal of Marketing, 58 (Oct): 68-81. Keusel, H.N. (1971) Six deadly diseases that can affect your sales force. In Kurtz, D.L. and

Hubbard, C.W. (eds) The Sales Function and its Management: Selected Readings, Morristown, NJ: General Learning Press, 148-53.

REFERENCES

Kohli, A.K. and Jaworski, B.J. (1994) The influence of co-worker feedback on salespeople, Journal of Marketing, 58 (Oct): 82-94.

McGregor, D.M. (1960) The Human Side of Enterprise. New York: Harper & Row. Moriya, F.E. and Gockley, J.C. (1985) Grid analysis for sales supervision, Industrial

Marketing Management, 14: 235-8. Oliver, R.L. and Anderson, E. (1994) An empirical test of the consequences of behavior­

and outcome-based sales control systems, Journal of Marketing, 58 (Oct): 53-67. Peters, T.J. and Waterman, R.H. Jr (1982) In Search of Excellence: Lessons from America's Best­

run Companies. New York: Harper & Row. Sasser, W.E. Jr and Leonard, F.S. (1980) Let first line supervisors do their job, Harvard

Business Review, Mar-Apr: 113-21. Simintiras, A. C., Cadogan, J.W. and Lancaster, G.A. (1996) Salesforce behaviour: in search

of motivational determinants, Industrial Marketing Management, 25: 421-37. Stroh, T.F. (1978) Managing the Sales Function. New York: McGraw-Hill. Sujan, H., Weitz, B.A. and Kumar, N. (1994) Learning orientation, working smart, and

effective selling, Journal of Marketing, 58 (Jul): 39-52. Teas, R.K. (1983) Supervisory behaviour, role stress and the job satisfaction of industrial

salespeople, Journal of Marketing Research, XX (Feb): 84-91. Tyagi, P.K. (1985) Organisational climate, inequities, and attractiveness of salesperson

rewards, Journal of Personal Selling and Sales Management, 5 {Nov): 31-7.

Churchill, G.A. and Pecotich, A. (1982) A structural equation investigation of the pay satisfaction-valence relationship among salespeople, Journal of Marketing, 46 (Fall): 114-24.

Donaldson, B. (1997) The importance of financial incentives in motivating salespeople. Proceedings of the 1st International Symposium on Selling and Major Account Management. Southampton, Southampton Institute.

Doyle, S.X. and Shapiro, B.P. (1980) What counts most in motivating your salesforce?, Harvard Business Review, May-Jun: 134-9.

Greer, W.R. and Hawkins, D.l. (1976) Sales force compensation, goal congruence and economic efficiency, European Journal of Marketing, 10 (1): 28-35.

Kohn, A. (1993) Why incentive plans cannot work, Harvard Business Review, Sep-Oct: 54-62.

Napier, A. (1986) Incentives- a vector of improved sales performance?, European Journal of Marketing, 20 (6): 36-51.

Smyth, R.C. (1968) Financial incentives for salesmen, Harvard Business Review, Jan-Feb: 109-17.

Still, R.R., Cundiff, E.W. and Govoni, N.P. (1988) Sales Management: Decisions, Strategies and Cases, 5th edn. Englewood Cliffs, NJ: Prentice-Hall.

Tosdal, H.R. (1953a) Administering salesmen's compensation, Harvard Business Review, Mar-Apr: 70-83.

Tosdal, H.R. (1953b) How to design the salesman's compensation plan, Harvard Business Review, Sept-Oct: 61-70.

Zemke, R. (1988) Rewards and recognition: yes, they really work, Training, 25 (11): 48-53.

Bagozzi, R.P. (1980) Performance and satisfaction in an industrial sales force: an examin­ation of their antecedents and simultaneity, Journal of Marketing, 44 (Spring): 65-77

Becherer, R.C., Morgan, F.W. and Richard, L.M. (1982) The job characteristics of industrial salespersons: relationship to motivation and satisfaction, Journal of Marketing, 46 (Fall): 125-35.

Berl, R., Powell, T. and Williamson, N.C. (1984a) Industrial salesforce satisfaction and performance with Herzberg's theory, Industrial Marketing Management, 13: 11-19.

369

SALES MANAGEMENT

370

Berl, R.L., Williamson, N.C. and Powell, T.E. (1984b) Industrial salesforce motivation: a critique and test of Maslow's hierarchy of need, Journal of Personal Selling and Sales Management, 4 (1): 32-9.

Churchill, G.A. and Pecotich, A. (1982) A structural equation investigation of the pay satisfaction-valence relationship among salespeople, Journal of Marketing, 46 (Fall): 114-24.

Comer, J.M. (1985) Industrial sales managers: satisfaction and performance, Industrial Marketing Management, 14: 239--44.

Demirdjian, Z.S. (1984) A multidimensional approach to motivating salespeople, Industrial Marketing Management, 13: 25-32.

Donnelly, J.H. and Ivancevich, J.M. (1975) Role clarity and the salesman, Journal of Marketing, 39 (Jan): 71--4.

Doyle, S.X. and Shapiro, B.P. (1980) What counts most in motivating your sales force?, Harvard Business Review, May-Jun: 133--40.

Hackman, R.J. and Oldham, G.R. (1975) Development of the job diagnostic survey, Journal of Applied Psychology, 60: 159-70.

Herzberg, F. (1987) One more time: how do you motivate employees?, Harvard Business Review, Sep-Oct: 109-20.

Ingram, T.N. and Bellenger, D.N. (1982) Motivational segments in the sales force, California Management Review, 24 (3): 81-8.

Maslow, A.H. (1970) Motivation and Personality, 2nd edn. New York: Harper & Row. Mossien, H. and Fram, E.H. (1973) Segmentation for sales force motivation, Akron

Business and Economic Review, Winter: 5-12. Shipley, D.D. and Kiely, J.A. (1986) Industrial salesforce motivation and Herzberg's dual

factor theory: a UK perspective, Journal of Personal Selling and Sales Management, 6 (1): 9-16.

Sujan, H. (1986) Smarter versus harder: an exploratory attributional analysis of sales­people's motivations, Journal of Marketing Research, XXIII (Feb): 41-9.

Teas, R.K., Wacker, J.G. and Hughes, R.E. (1979) A path analysis of causes and conse­quences of salespeople's perceptions of role clarity, Journal of Marketing Research, XVI (Aug): 355-69.

Vroom, V.H. (1964) Work and Motivation. New York: John Wiley. Walker, O.C., Churchill, G.A. and Ford, N.M. (1977) Motivation and performance in

industrial selling: present knowledge and needed research, Journal of Marketing Research, XIV (May): 156-68.

Walker, O.C., Churchill, G.A. and Ford, N.M. (1979) Personal characteristics of sales­people and the attractiveness of alternative rewards, Journal of Business Research, 7: 25-56.

Anderson, E. and Oliver, R. (1987) Perspectives on behaviour-based versus outcome­based salesforce control systems, Journal of Marketing, 51 (4): 76-88.

Berry, D. (1987) A method to portray and analyse sales performance, Industrial Marketing Management, 16 (2): 131--44.

Churchill, G.A., Ford, N.M., Hartley, S.W. and Walker, O.C. (1985) The determinants of salesperson performance: a meta-analysis, Journal of Marketing Research, XXII (May): 103-18.

Cocanougher, A.B. and Ivancevich, J.M. (1978) B.A.R.S. performance rating for sales force research, Journal of Marketing, 42 (3): 87-95.

Cravens, D.W., Grant, K., Ingram, T.N., LaForge, R.W. and Young, C. (1992) In search of excellent sales organisations, European Journal of Marketing, 26 (1): 6-23.

Cron, W.L. and Levy, M. (1987) Sales management performance evaluation: a residual income perspective, Journal of Personal Selling and Sales Management, 7 (2): 57-66.

DeCarlo, T.E. and Leigh, T.W. (1996) Impact of salesperson attraction on sales managers' attributions and feedback, Journal of Marketing, 60 (Apr): 47-66.

REFERENCES

Dubinsky, A.J. and Hansen, R.W. (1981) The sales force management audit, California Management Review, 24 (2): 86-95.

Henry, P. (1975) Manage your sales force as a system, Harvard Business Review, Mar-Apr: 85-95.

Kotler, P. (1997) Marketing Management: Analysis, Planning, Implementation and Control, 9th edn. Englewood Cliffs, NJ: Prentice-Hall.

Ryans, A.B. and Weinberg, C.B. (1979) Territory sales response, Journal of Marketing Research, XVI (Nov): 453--65.

Ryans, A.B. and Weinberg, C. B. (1984) Improving productivity in the sales force learning from our own experience. A company-focused approach, Business Quarterly, Spring: 67-9.

Schiff, J.S. (1983) Evaluate the sales force as a business, Industrial Marketing Management, 12 (2): 131-7.

Schiff, M. (1963) The use of ROI in sales management, Journal of Marketing, 27 (3): 70-3.

Chonko, L.B. and Hunt, S.D. (1985) Ethics and marketing management: an empirical investigation, Journal of Business Research, 13: 339-59.

Donaldson, B. (1997) The importance of financial incentives in motivating salespeople. Proceedings of the 1st International Symposium on Selling and Major Account Management. Southampton: Southampton Institute.

Donaldson, T. (1996) Values in tension- ethics away from home, Harvard Business Review, Sep-Oct: 48-56.

Duck, S. (1991) Understanding Relationships. New York: Guildford Press. Economist (1994) 'But not as we know it', 29 October. Kuhlmam, E. (1994) Customers. In Harvey, B. (ed.) Business Ethics. A European Approach.

Trowbridge: Prentice-Hall, Ch. 5. Mahoney, J. (1990) Teaching Business Ethics in the UK, Europe and the USA. London:

Athlone Press. Morgan, R.M. and Hunt, S.D. (1994) The commitment-trust theory of relationship

marketing, Journal of Marketing, 58 (Jul): 20-38. Schegelmilch, B. (1989) The ethics gap between Britain and the United States: a compar­

ison of the state of business ethics in both countries. European Management Journal, 7 (1): 57--64.

Schwepker, C.H., Ferrell, O.C. and Ingram, T.N. (1997) The influence of ethical climate and ethical conflict on role stress in the sales force. Journal of the Academy of Marketing Science, 25 (2): 99-108.

Smith, N.C. (1995) Marketing ethics. In Baker, M.J. (ed.) The Companion Encyclopedia of Marketing. London: Routledge, 905-29.

Drummond, R. (1993) Recent Developments in Partnering in the North Sea. Institute of Petroleum: London.

Economist (1993) 'All life's troubles', 17 July: 76-7. Economist (1994) 'But not as we know it', 29 October: 135. Grampian Regional Council (1995) Oil and Gas Prospects 1995 Update. GRC Economic

Development and Planning Department: Aberdeen. LIMRA (1992) Report on UK life insurance. London: Life Insurance Marketing and

Research Association. Mintel (1994) Life Insurance- Special Report. London: Mintel. National Consumer Council/MORI (1994) National Survey of Life Insurance and

Pensions. London: National Consumer Council.

371

372

AUTHOR INDEX

A

Abeele, P.V. 183 Anderson, E. 76,152,269,272,

305 Anderson, R.E. 39 Armstrong, G.M. 180 Arnold, J.S. 30 Avlonitis, G.J. 30, 230, 232, 234

B Bagozzi, R.P. 21, 150, 265, 272,

299 Baker, M.J. 98 Banting, P.M. 27 Barker, T. 181 Battersby, A. 132 Becherer, R.C. 298 Behrman, D.N. 273-4 Bellenger, D.N. 294, 297 Bellizzi, J.A. 13, 84 Berl, R.L. 273, 293-4 Berry, D. 314 Beswick, C.A. 183 Bettger, F. 33, 46 Bhote, K.R. 102 Blake, R.R. 263 Bobrow, E.E. 152 Brock, T.C. 81 Buckner, H . 77 Busch, P. 263 Butler, P. 125 Buzzotta, V.R. 50-3, 106, 255-7

c CACI 175, 181 Cannon, J.P. 27, 81 Cashin, M.R. 45,169,188-9 Cateora, P. 220 CCN 181 Cespedes, F.V. 36 Challagalla, G.N. 268 Chambers, J.C. 131 Chan, T.S. 210

Chanders, A. 112 Chonko, L.B. 326 Chowdray, J. 187 Christopher, M. 104 Chu, W. 26 Churchill, G.A. 45, 267, 271,

287, 297, 319 Cocanougher, A.B, 312 Comer, J.M. 118, 173, 180, 263,

270 Cravens, D.W. 7, 30, 181-2,

183,315 Cron, W.L. 255,314 Croner, 203, 217 Cronin, J.J. 106 Crosby, L.A. 48, 106 Cuddihy, L. 26, 39 Cunningham, M.J. 22

D Dalrymple, D.J. 142 Darmon, R.Y. 192,223,243 Davis, H.L. 81 Day, R.L. 180 Deans, K.R. 121 DeCarlo, T.E. 308 DeCormier, R.A. 105 Demirdjian, Z.S. 294, 299 Dempsey, W.A. 93 Derose, L. 51 Diamantopoulos, A. 133 Dion, P.A. 27, 95 Ditz, G.W. 56-7 Domegan, C.T. 116 Donaldson, B. 45-6, 54-5, 77,

102, 106, 116, 157, 160, 224, 261,278,282,328

Donaldson, T. 330 Doney, P.M. 27, 81 Donnelly, J.H. 297 Doyle, S.X. 287, 297, 299 Drucker, P.F. 147 Drummond, R. 346

Dubinsky, A.J. 15, 269-70, 312 Duck, S. 327 Dunkeld, S.B. 45, 169, 188-9 Dwyer, F.R. 54, 102

E Engel, rE 64, 66 Erffmyer, R.C. 248 Evans, F.B. 22, 92

F Fleenor, C.P. 239 Fletcher, K. 116-17 Ford, D. 100 Fouss, J.H . 145 Fram, E.H. 294 French, J.R.R. 262 Futrell, C.M. 196

G Gillan, A. 43 Gockley, J.C. 265 Grahan, J.L. 208 Granger, R.H. 231 Greenberg, H .M. 43, 51, 81 Greenberg, J. 51, 81 Greer, W.R. 288 Gronroos, C. 22 Guber, G. 66 Gwinner, A. 81

H Hackman, R.J. 298 Hakansson, H. 22, 54,99-100 Hallen, L. 100-1 Hansen, R.W. 312 Hartley, S.W. 45,84 Hawkins, D.l. 288 Hayes, H.M. 45, 84 Heiman, A. 84 Henry, P. 309,311 Herzberg, F. 293 Hite, R.E. 13, 84

Hofstede, G. 214 Holman, J.L. 50 Honeycutt, E.D. 45, 104, 247,

258 Howard, J.A. 64 Hunt, S.D. 7, 62, 269, 32&-7 Hutchinson, E. 267 Hutt, M.D. 106

I Ingram, T.N. 15, 106,294,297 Ivancevich, J.M. 297,312

J Jackson, B.B. 102 Jackson, W. 196 Jaworski, B.J. 106, 272 Jennings, C. 212 Jevons, C. 202 JICNARS 72 Jobber, D. 105, 116 Johanson, J. 100-1 Johnson, E.M. 242,270 Johnston, W.J. 272 Juian, T.S. 212

K Kahn, G.N. 28 Kalika, A 214 Kashani, K. 16 Katsikeas, C.S. 214 Keng, K.A. 212 Keusel, H.N. 268 Keynote 134 Kiely, J.A. 93, 294 Kim, K. 272 Kirkpatrick, C.A. 17 Kohli, A.K. 272 Kohn,A. 282 Kotler, P. 16, 68, 117, 310 Kuhlman, E. 325

L LaForge, R.W. 157, 181 Lamont, L.M. 22, 43 Leathers, J.O. 195 Leigh, T.W. 308 Leonard, F.S. 265 Levitt, T. 4, 50, 83, 152 Levy, M. 314 Lidstone, J. 247 Lippett, M.E. 269-70

Lodish, L.M. 178--80 Loen, R.O. 12 Lucas, H.C. 183 Lucey, T. 113 Lundstrom, W.J. 22,43

M McDermott, D.R. 65 McDonald, M. 97 McGregor, D.M. 265--6 McKenna, R. 102 McLure, R.H. 181 McMurry, R.N. 22, 30-1 McNeal, J.U. 177 Madsen, T.K. 215 Mahoney, J. 330 Majaro, S. 97 Makin, P.J. 239 Manning, G.L. 105 Manoli~C.K. 155,169,244 Market Research Society 72 Maslow, A.H. 69, 292 Mason, J.L. 55 Mathews, B.P. 133 Mayer, D. 43 Millman,A.F. 33,160 Moncrief, W.C. 32 Moore, R.A. 211 Morgan, R.M. 7, 102,327 Moriya, F.E. 265 Morrill, J.E. 50, 152-3 Morris, M.H. 50 Moss, S. 230, 239 Mossien, H. 294 Mouton, J.S. 263 Muller, E. 84

N Neale, C.W. 218 Newton, D.A. 29

0 Oldham, G.R. 298 Oliver, R.L. 269,272,305 O'Toole, T. 89,102,106 Owens, J.P. 156

p Palda, K.S. 79 Pannitz, E. 95 Parasuraman, A 180 Pardo, C. 159

AUTHOR INDEX

Parkinson, S.T. 98 Parsons, L.J. 183 Parvatiyar, A 7 Pecotich, A 287, 297 Perrault, W.O. 273-4 Pettijohn, C. 7 Pettijohn, L. 7 Peters, T.J. 157, 261 Piercy, N.F. 116 Plank, R.E. 54, 93 Poon, S. 202 Price Waterhouse 364 Purl, S.J. 255

R Rackham, N. 55, 79, 80, 88

250-4 Ramsey, R.P. 46,84 Raven, B. 262 Reece, B.L. 105 Reid, D.A. 54 Reward Group 10 Robertson, I.T. 239 Robinson, P.J. 74-5 Rochford, L. 48, 104 Rogers, E.M. 82 Rogers, L. 224 Rosenbloom, B. 39 Rosson, P.J. 210 Russ, F.A. 17 Ryans, A.B. 13, 183-4, 312

s Salsbury, G.B. 240 Sarathy, R. 220 Sarel, D. 106 Sasser, W.E. 265 Saxe, R. 105 Schegelmilch, B. 330 Schiff, J.S. 143, 314 Schiff, M. 143, 214 Schmidt, R.A. 218 Schmitz, J.M. 78 Schuchman, A 28 Schweitzer, C.N. 65 Schwepker, C.H. 329 Scott, G.M. 114-15 Semlow, W.J. 162 Shapiro, B.P. 162, 287, 297, 299 Sharma, A 106 Shaw, R. 175 Sheldon, A.F. 78

373

SALES MANAGEMENT

374

Shervani, T.A. 268 Sheth, J.N. 7, 64 Shipley, D. 93,212-13,214-15,

294 Sigaw, J.A. 45 Silk, A.J. 81 Sirnintiras, A. C. 272 Singh, J. 107 Sinha, P. 181 Smith, D.C. 156 Smith, N.C. 328, 332 Smyth, R.C. 286 Sohi, R.S. 84 Solomon, E. 145 Speh, T.W. 106 Spekeman, R.E. 54 Spiro, R.L. 58, 105 Stanton, W.J. 245 Stidsen, B. 93 Still, R.R. 5, 154, 283 Stroh, T.F. 266 Strong, E.K. 78-9 Sujan, H. 27, 84, 106, 273, 298

T Tack,A. 33 Talley, W. 162

TARP 102 Teas, R.K. 298 Terpstra, V. 220 Thietart, R.A. 145 Thompson, W.W. 177 Thomson, C. 55, 224 Thorelli, H.B. 142 Thurlow, M.L. 128 Tosdal, H.R. 278, 279 Tosi, H.L. 81 Turnbull, P.W. 22, 98, 210, 216 Tyagi, P.K. 273

u Usunier, J.C. 200

v Valla, J.P. 98 Vasquez-Parraga, A.Z. 269 Vavra, T.G. 172 Vivas, R. 145 Vroom, V.H. 295

w Walker, O.C. 58, 59, 295, 297 Waller, D. 102 Waterman, R.H. 261

Webster, F.E. 73 Weinberg, C.B. 13, 183-4, 312 Weitz, B.A. 48, 54, 94-6, 105,

253 Well, C.E. 181 Wells, W.O. 66 Wemerfelt, B. 84 Wheatley, M. 102 Wheeler, C. 211 Wilson, K.J. 36, 39, 160 Wmd,Y. 73 Withney, J.J. 95 Wortruba, T.R. 48, 104, 128,

162

y Young, S. 204-5, 210 Young, W.J. 112

z Zemke, R. 283 Zoltners, A. 181

SUBJECT INDEX

A accounts 19 ACORN 67, 181 activity analysis 225 adaptive behaviour 105-7 adoption 64 advances 254 advantages 253 advertising (v. selling

compared) 8 agents 151, 207 AIDAS 79 ALLOCATE 180 approach 83 aptitude 319 aptitude tests 239 assessment centre 239-40 attitudes 70 attributes of salespeople 43 autocratic style 265-6 average time allocation 172

B behavioural sales training

256-7 behaviouraltheory 263,291 behaviourally anchored rating

scales 312 benefits 80, 250 bilateral relations 103 bonus 281 boundary position 60 breakdown analysis 172 budgets 141 build-up method 172 buygrid 75-6 buy phases 75 buyer behaviour

components of 65 evaluation 63 personal factors 66 psychological factors 68 social effects of 71

buyer-seller dyad 92 buyer-seller similarity theory

81-2 buying

c

centre 73-4 formula 79-80 houses 209 offices 206 process 63, 74-5

call frequency ratio 178, 191 CALLPLAN 179 call rates 191 category management 36-7 caveat emptor 331 causal methods 138--9 centralised buying 156 characteristics 42, 44, 231 Chartered Institute of Marketing

104 circle system 174 closed systems 113 closeness of supervision 271 closing 84-5 code of conduct 332 coercive power 262 cognitive map 52-3, 255-6 combination, organisation

156-7 combination plan 281 comfort-seekers 294 commission 280 commitment 253 communication

message 97 process 50 skills 49

compact model 93 company 18, 49 company-focused approach

312 competitors 17,47

computer-aided decision process 179

computers 175 conditioned response 26 confidence 46 confirming house 206 consensus forecasting 134 consultative approach 265, 267 consumer

direct, 32 indirect 34 protection 330 rights 325

contests 282-3 contingency model 96, 264 contingency theory 95-7, 261 contracts 88 control 318 corporate advertising 152-3 corporate strategy 15-16 cost of a salesperson 10 costs of selling 313-14 culture 71 customer

D

behaviour model 53 classification 120 knowledge 48, 255-7 record card 315 relations 20

daily report 316 database marketing 121-2 decision support system 113 delegation of authority 150,

267-8 delphi technique 37-8 democratic style 265 demonstrating capability 253 developers 294 development selling 30 diffusion 64 direct

375

SALES MANAGEMENT

376

exporting 205 marketing 123-5 salesforce 151-2 selling 27

discrete relationships 104 distribution channels 20, 207 distributor selection 213 dominant /hierarchical

relationships 104 dominant-hostile behaviour

52

E early adopters 64-5 economics of selling 22 ego drive 43-4 eighty-twenty rule 16 elements of the sales job 11 empathy 43-4 employment agencies 232-3 entering goods 33 enthusiasm 46 environment 16-18 ethical climate 332 ethical concerns 326 ethics 323 ethics management 322 European Union 203 evaluation 63, 215, 304 expectancy theory 294-6 expense to sales ratio 190 expenses 284 expert power 262 exponential smoothing 138-9 export houses 205 export-intermediary relations

210 exportmodes 209

F facilitating goods 34 family patterns 66 features, advantages, benefits

84-5,253 financial incentives 282 first-line supervisor 271 follow-up 85 food brokers 36 forecasting

methods 133 process 129 rules 132

foundation items 33 franchise sales 38-9 fringe benefits 284 frustration 269-70

G gatekeepers 74 generating leads 82 geographic organisation 155 government/institutional direct

34 gross margin on sales 190

H hierarchy of effects 292 hierarchy of ethical standards

325 hopscotch system 17 4

I identifying prospects 82 incentives, financial 282 Incoterrns 217 incremental method 164-5 industrial

direct 33 goods and services 33 indirect 35 marketing 33 marketing strategies 101

influencers 73 information for evaluation

306-7 information role 6 information technology 111 innovativeness 274 innovators 64 insight response 27, 48 Institute of Professional Sales

104 institutional direct 34 instrumentality 295-6 integration activities 273 intelligence 46 intelligence tests 238 interaction 94 international

culture 200 environment 202 markets 199 organisation 204 resources 205

selling 39, 199 Internet 125 interorganisational boundary

position 15 interviews 237 investigating 252

J JICNAR 72 job

K

analysis 225 description 226-9 performance 273 satisfaction 272-3 specification 230 status 55-6

key account management 159-60

key account salespeople 36 knowledge 47

L laggards 64 leadership

definition 261 laissez-faire 265 problems of 261-2 roles of 270 styles 265 theories 262

leads 82, 252 learning 70 legal constraints 329 legitimate power 262 life cycles 66 life-styles 68 linear regression 141 locus of control 27 4

M maintenance selling 28 management

by objectives 193-7 grid 263 information systems 11f--12 tasks 12-13

manpower planning 226 market

information systems 113, 117

intelligence 144 knowledge 47 organisation 156 potential 129 research 133, 144--5 segmentation 16

marketing concept 4 communications 8 expenditure 8-9 information system 114 mix 6 selling compared 26 strategy 15

matching skills 51-4 merchandising 37 misrepresentation 330 missionary selling 30,39 models 177 modified rebuy 74 morale 299 motivating potential score 298 motivation 58-60,69,214,291 motivation component 295 motivation-hygiene theory

293-4 motivational mix 300 moving average 138-9 multilevel marketing 333 myths about selling 245

N needidentification 63 need-satisfaction theory 79-80 negotiation 85-8 network selling 333 new business selling 28-30 new tasks 74

0 objections 84 objective forecasting techniques

138 objectives 193 open systems 113 operational 14 order to call ratio 191 organisational

buyerbehaviour 73 selling model 94 structure 147

p pay levels 278 pay methods of 278 perception 48,69 performance evaluation

318-20 performance related pay 288 personal selling defined 5 personality 43--5, 69 personnel 19 persuasion 6 persuasive skills 54-5 petal system 175 piggyback exporting 206 physical characteristics 43--5 potential 163 power 56 power theory 262-3 pragmatic sales training 256 pre-call planning 53 preliminaries 252 presentation 83 presentation effect 153 pricing 216 problem-solving theory 80 production 18 product

knowledge 47, 250 organisation 155-6 positioning 16 targets 189

programmedlearning 248 promiscuous buyer behaviour

97 promotion mix 6, 20-1 prospecting 82 psychometric tests 238-9 purchase 64 purchasing 19

Q qualitative sales targets 192 quantitative sales targets 189

R R&D 18 rate of return 143-4 reciprocal trading 19 recruitment 103

process 223-4 sources 232

reference groups 72

SUBJECT INDEX

references 237 referent power 262 regression analysis 140-1 relational development mode

160 relationship

ladder 98 marketing 101-4 orientation 54, 102 role 7 selling 104

relationships 97--8 reliability 238 remuneration 277 reports 315-17 retail selling 31 return on investment 191, 313 reward power 262 role

accuracy 59 ambiguity 59 conflict 57 of salesperson 11 of sales manager 11-12 perceptions 59 playing 248 stress model 273-4

routing 174

s salary 279 sales

administration 254 analysis 118, 314 behaviour model 52 budgets 141 call productivity 178 development 28 expenditure 9 field 121-2 forecasting 128

basic rules 132 components 139 costs and accuracy 131 main users 130 methods 133-41

information systems 113 leads 82 maintenance 28 management

audit 310 definition of 5

377

SALES MANAGEMENT

378

difficulties 21 information system 115 role 13--15 tasks 12-13

organisation 147 plan 118 potential method 163--4 process 9,54-5,251 role 8 subsidiary 208 targets 186 tasks 11 terrritories 169

salesforce interfaces 15 organisation 147 problems 268-9 selection tools 236 size 161

salesmanship 5 salesperson

performance 95 role 8 types 32-40

SCHEDULE 180 screening 234 search 63 self-esteem 44 self-worth 46 selling

costs 7-8 cycle 17 environment 16-18 formula 78-9 skills 250-1 time 11 theories 78-82

selection of applicants 235 selection tools 236

service selling 28-9 skills 49 social class 71-2 source effect 153 sources of overseas information

212 span of control 150 specialisation 155 SPIN® model 80 spotlight seekers 294 stakeholders 324 status 5~ stimulus-response theory 78 straight rebuy 75 strategic 13 submissive-warm behaviour

52 supervision

closeness 271 means of 267 tasks 271

system selling 38 systems approach 309-10

T tactical 14 targets 129, 189 task clarity 297 team selling 38 technical selling 30 technology 17 telecommunications 121 telemarketing 122 telephone selling 123--5 telesales 37-8 tendering 88 territory

design 168 knowledge 48-9

management 173 objectives 169 sales response 181

theories of selling 78-82 time

allocation 172 management 13, 176 series 139-40

Trades Descriptions Act 329 trade selling 29-30 training

appraisal forms 258 content of training programmes 244,250-7 evaluation 257-8 forms 246 methods 247-9 needs 243 options 249 principles 242-3

trait theory 262 trend analysis 140 types of selling 28-32

u unit build-up method 143 use 64 users 23

v valence 296 validity 238

w weaknesses in evaluation

307-8 wedge pattern 17 4-5 weekly report 317 workload method 162-3