Sales Calls Research Articles

Response Modeling with Nonrandom Marketing-Mix Variables

Sales response models are widely used as the basis for optimizing the marketing mix. Response models condition on the observed marketing-mix variables and focus on the specification of the distribution of observed sales given marketing-mix activities. The models usually fail to recognize that the levels of the marketing-mix variables are often chosen with at least partial knowledge of the response parameters in the conditional model. This means that contrary to standard assumptions, the marginal distribution of the marketing-mix variables is not independent of response parameters. The authors expand on the standard conditional model to include a model for the determination of the marketing-mix variables. They apply this modeling approach to the problem of gauging the effectiveness of sales calls (details) to induce greater prescribing of drugs by individual physicians. They do not assume a priori that details are set optimally, but instead they infer the extent to which sales force managers have knowledge of responsiveness, and they use this knowledge to set the level of sales force contact. The authors find that their modeling approach improves the precision of the physician-specific response parameters significantly. They also find that physicians are not detailed optimally; high-volume physicians are detailed to a greater extent than low-volume physicians without regard to responsiveness to detailing. It appears that unresponsive but high-volume physicians are detailed the most. Finally, the authors illustrate how their approach provides a general framework.

SLPs and the World of Work: Corporate Speech-Language Pathology

SLPs and the World of Work: Corporate Speech-Language Pathology

Response Modeling with Non-random Marketing Mix Variables

Sales response models are widely used as the basis for optimizing the marketing mix or for allocation of the sales force. Response models condition on the observed marketing mix variables and focus on the specification of the distribution of observed sales given marketing mix activities. These models fail to recognize that the levels of the marketing mix variables are often chosen with at least partial knowledge of the response parameters in the conditional model. This means that, contrary to standard assumptions, the marginal distribution of the marketing mix variables is not independent of response parameters. We expand on the standard conditional model to include a model for the determination of the marketing mix variables. We apply this modeling approach to the problem of gauging the effectiveness of sales calls (details) to induce greater prescribing of drugs by individual physicians. We do not assume, a priori, that details are set optimally but, instead, infer the extent to which sales force managers have knowledge of responsiveness and use this knowledge to set the level of sales force contact. We find that physicians are not detailed optimally; high volume physicians are detailed to a greater extent than low volume physicians without regard to responsiveness to detailing. In fact, it appears that unresponsive but high volume physicians are detailed the most.

Buyer–seller relationships and selling effectiveness: the moderating influence of buyer expertise and product competitive position

A field experiment using computer-interactive interviews tested the effects of buyer–seller relationships on selling effectiveness in the context of an individual purchase decision. Within interviews, organizational buyers responded to simulated sales calls from copier salespeople. Results show that when these buyers are in a relational exchange with a seller (as opposed to a discrete exchange), they evaluate that seller's product more highly and are more likely to consider and choose the seller's product for purchase. The relationship's positive effects on product evaluation and consideration are stronger for novice buyers than for expert buyers. While expert buyers seem less likely than novices to alter their product judgments and decisions because of a relationship, salespeople may still experience a relational advantage with experts as long as these sellers recommend products with strong competitive positions. Results support the importance of the buyer–seller relationship to selling effectiveness and reveal that some of the positive effects of a relationship are contingent on both the buyer's expertise and the product that is represented.

Problems evaluating sales representative performance?: Try activity-based costing

Activity-based costing (ABC) offers a way to improve performance evaluation by providing estimates of the cost of satisfying sales terms to which a sales representative may agree, such as number of batches in which an order is produced and number of training hours provided to customer employees. It also provides estimates of the cost of resources that a sales representative may use while engaging in marketing activities, such as making sales calls and attending trade shows. Traditional costing, which assumes that costs only vary at the unit level, does not provide estimates of the costs of many of these terms and activities.

Successful and Unsuccessful Sales Calls: Measuring Salesperson Attributions and Behavioral Intentions

Applying attribution theory to consumer behavior issues is quite common. In the managerial arena, previous research suggests that salespeople's attribution processes affect their expectancies for success and future behavior. However, no published research has developed adequate measures that might be used to examine the full range of attributional responses for sales success or failure and the behaviors that are likely to follow such attributions. The goal of this research is to develop a complete set of attributional and behavioral scales for sales success and failure and validate such scales in a real-world context—among field sales representatives. Following Churchill's (1979) recommended process, the authors develop a complete set of attributional and behavioral intention scales that is applicable to a field sales force setting. The authors then measure 228 financial services representatives' performance attributions for a previous sales interaction; their intended behaviors for a future, similar selling situation; and their personal characteristics. The authors test the validities of the scales and examine the usefulness of applying the scales within a theoretically justified nomological network of relationships.

Part 4: Bringing financial statements to life

Reprint no. 74/l/96135 Forty years ago, the Walt Disney company released a series of nature films. With such titles as The Living Seas and l7te Living Desert, these pioneering reels demonstrated that areas often considered barren and empty in fact were teeming with life. In a similar fashion, completed business plans and financial statements often are considered lifeless pieces of paper. In fact, however, they are living documents that hold the keys to your financial success. The utility of the budget begins with its method of construction. In composing the business plan, we suggested that pro jetted sales and expenses be recorded in painstaking detail, a process that results in financial projections with reality-based roots. This approach allows the entrepre neur to later compare these projections with actual income and costs in evaluating the business’ financial health. The comparisons between anticipated and actual sales and costs have more than face value. The ability to match actual to projected values is crucial when presenting your financial statements to a bank, investors, or others outside the business. This ability is equally true whether your documents reflect profits or problems. In the former case, you can identity the most effective elements of the business and capitae in the latter, the exact nature of losses can be isolated and plans formulated for correction. Follow-up of later financial state ments is required to demonstrate prob lem resolution, continued growth, new challenges, and new opportunities. An example serves to demonstrate this unexpected benefit of financial state ments. Your company has budgeted funds for making 10 sales calls each day. A certain percentage of these calls has been shown to predictably close sales. Actual sales numbers are greater than were budgeted. Although this result is positive, cash supplies are being depleted (recall our statement that most businesses fail not because of lack of assets but a lack of ready cash). Your sales may be listed as “accounts receivable” (sales for which you are to be paid in the future, such as with future billing and installment payments). While your sales costs mount, the cash to recoup these expenses does not immediately follow the sale. Thus the business becomes “cashpoor” despite its sales success. Cash flow problems should be discussed with your accountant, bank, or other investors. In this instance, the added sales indicate you would be a good candidate for a loan or additional investment. The cash input received from the loan or investment then can be used to pay immediate expenses or expand sales while waiting for sales funds to arrive.

We make our best sales calls when we have company over.

We make our best sales calls when we have company over.

Mitigating the effect of service encounters

Although marketers believe that encounters with service employees are a major determinant of customers' perceived service quality and value, there is little empirical evidence that quantifies this relationship. This paper considers the role of employee service encounters, such as repair visits and sales calls, within a comprehensive model of customers' assessments of service quality and value. It is estimated with survey data that describe small business customers' ratings of a local telephone company. In contrast with marketing folklore, most employee service encounters do not affect perceived service quality, but they have a strong effect on perceived service value. By quantifying the effect of sales calls, repair visits, billing contacts and so forth, we find that service encounters frequently do not compensate for service failures and disruptions.

Laptop computers in industrial sales

This article examines the concept of the laptop/portable computer in the industrial sales world. This study questioned sales managers from 201 different sales organizations classified in SICs 20–39. Sales managers were asked to describe current usage of laptop/portable computers by their salespeople and the importance of the computers in performing daily sales activities. The sales managers were also asked to describe the impact of the laptop on factors such as profits, administrative tasks, sales calls, expenses, productivity, and others. Lastly, this study examined the satisfaction levels of laptop/portable usage by sales management, sales personnel, and customers.

Lotus 1-2-3 for mainframes (bringing a product to market)

The number of widely-used, business oriented APL applications is few. It's difficult to pinpoint why other than to reflect on the complexities of conceiving a marketable product and executing the d...

Effects of promotion on pharmaceutical demand

The research question addressed in this study was, “Do changes in promotional expenditure cause changes in the size of the market (primary demand) or market share (selective demand)?” Two types of promotion were evaluated; sales calls to physicians and medical journal advertising. The sales elasticities of each of these promotional techniques were estimated through the use of ARIMA modeling. The market expansive effects and the market share effects were measured for each of 7 drugs in two therapeutic categories, the benzodiazepines and diuretics. The results of the analysis showed that there was no correlation between changes in detailing or journal advertising expenditures and primary or selective demand. Thus, it was assumed that the primary and selective demand elasticities for pharmaceutical advertising may be equal to zero. Drug manufacturers should evaluate the effects of reductions in their promotional expenditures, changes in promotional content, as well as seek alternative methods of advertising which may have a higher sales elasticity and effectiveness.

Influence Use by Industrial Salesmen: Influence-Strategy Mixes and Situational Determinants

Personal selling is a critically important element in the marketing mix of almost every industrial firm. The salesman is entrusted with the care and nurturance of the firm's most valuable resources: its customers and prospects. Every sales call is important. If it is not successful, or does not lead to a sale, the opportunity costs (lost revenues) may be substantial. Moreover, whether successful or not, each call represents a substantial expenditure for the sponsoring firm. Given the marketing challenge of developing an effective sales representation at a reasonable cost, it is little wonder that marketing managers and researchers alike are concerned about the problems of selecting, training, and controlling the sales staff. In spite of the importance of these personal selling activities, there is little empirical evidence concerning what actually takes place during the sales call. More specifically, there has been little effort to evaluate the influence strategies actually used by industrial salesmen in their sales calls, or to identify characteristics of the buyer-seller situation which affect the salesman's use of influence with a customer. This article reports a study designed to evaluate the influence strategies used by industrial salespersons in their sales calls and to identify characteristics of the buyer-seller situation which affect the salesperson's use of influence with a customer. The results of the study, which are based on responses from 444 salespersons from 220 different firms, suggest that negotiating obstacles encountered in a sales situation and the general level of buyer-seller involvement in the sales call are major underlying dimensions of the sales situation which discriminate among groups of salesmen who vary not only on the intensity of influence used, but also on the particular combinations or mixes of influence strategies used. *We gratefully acknowledge conversations with Robert H. Miles of Harvard University concerning this area of research, and the support of William B. Phillips, Director of Industry Relations, the Associated Equipment Distributors, in data collection.