Abstracts
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Abstracts Journal of Direct, Data and Digital Marketing Practice (2007) 8, 269–280. doi:10.1057/palgrave.dddmp.4350059
Each abstracted article is awarded 0–5 stars for each of four qualities: (1) depth of research (2) value in practice (3) originality of thinking (4) Readability for non-specialists. No abstract is included for any article awarded less than seven stars overall.
Sales force, outcome control, behaviour control
How right should the customer be? E. Anderson and V. Onyemah Exploratory. Harvard Business Review (USA), July/August 2006, p. 59 (10pp) Distinguishes two different ways of controlling a sales force: outcome control (OC), where salespersons are motivated and rewarded according to the measurable outcomes of their activities, with little management intervention or supervision; behaviour control (BC), where salespersons’ activities are measured, and their rewards determined by managerial evaluation criteria that include subjective elements, and may be somewhat opaque. Suggests that in an OC system sales people will side with and pay maximum attention to the customer’s needs; under a BC system they will recognise the priority of doing as their immediate manager requires. Lists eight system components that help to determine which kind of control system is in operation: focus on performance vs methodology; few vs many performance criteria; degree of management intervention; frequency of management contact; degree of monitoring; amount of coaching; transparency of evaluation criteria; largely variable vs largely fixed compensation scheme. Accepts that most schemes are (and should be) an amalgam of OC and BC, but notes that a high score on one or more of the eight criteria and a low score on the others (or vice versa) is likely to denote a confusing and misaligned system. Suggests the different circumstances in which a system ought to tend towards OC or BC. Notes that insurance companies have tended to run OC systems (and why), and that governments’ demands for an end to misselling is in fact a demand for a reversion to BC methods. Notes that pharmaceutical companies, for example, have to run BC systems. Concludes that managing a salesforce is, ultimately, about helping salespeople to align their priorities with those of the company.
© 2 0 0 7 PA LG R AV E MAC MILLAN LTD 1746- 0166 $30.00 VO L.8 NO.3 PP 269– 280.
Journal of Direct, Data and Digital Marketing Practice
www.palgrave-journals.com/dddmp
269
Abstracts Certainly not the last word on remuneration and control systems for sales forces, but a fascinating and enlightening glimpse into this area. Research: ** Practice: *** Originality: *** Readability: **** Ref: 8301
Sales, marketing
Ending the war between sales and marketing P. Kotler, N. Rackham and S. Krishnaswamy Exploratory. Harvard Business Review (USA) July/August 2006, p. 68 (11pp) Notes that in most companies sales and marketing still have separate organisations and hierarchies, and in many cases do not get along comfortably. Notes two sources of friction — economic and cultural —
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