Sales Management in the New Age

**65**

**Chapter 5**

Modern Age

under fierce competitive environment.

marketing planning value-oriented.

marketing their goods and services.

consumers in the selling stage.

*Selay Ilgaz Sümer*

**1. Introduction**

Prologue: Marketing in the

within the framework of different perspectives and techniques.

The most important way of businesses to succeed in their activities is to follow their environment carefully and try to integrate innovations in their bodies. In short, businesses must adopt the latest developments to maintain their existence

Marketing is one of the business functions that must keep up with these developments. In recent years, significant improvements have been made in the marketing efforts of the businesses. They have started to plan their marketing activities

In recent years, the concept of value began to take place in the center of the marketing activities. Today, value is important almost for all businesses. There are different ways of creating value in marketing. In other words, the value that will be offered to consumers as a business can be evaluated in a wide range starting from the presale stages of the product to the after-sale periods. Therefore, the way of creating value can include using technology, empowering employees, etc. However, it is a fact that the basic condition of providing value in marketing is to make strategic

Digital age and its implications also influenced the firms' marketing activities. The transition to the digital age has made it necessary to make significant changes in many aspects from the design stage of the products to the sales stage and even after-sale services. Consumers of the digital age have started to act consciously and have information about products as well as sales forces. With the introduction of digitalization, physical stores are gradually being replaced by virtual organizations. Electronic commerce has been adopted by many businesses as an effective way of

The transition to the digital age also had an impact on the sales management activities. In other words, the presence of the digital environment has both created a variety of challenges for businesses and sales forces and also has facilitated sales forces activities. Especially in recent years sales forces, who strive to operate in a more value-oriented manner, have further increased their consulting roles. It is understood that the main task of the sales forces is not only to sell but also to provide information on various topics such as product and price comparisons to the consumers. This necessitates more careful selection and orientation of sales forces. It should be also noted that sales visits are now more effective by means of technological tools. In short, thanks to technological tools, the visual presentation of products is made more effectively than before. This facilitates the persuasion of

### **Chapter 5**

## Prologue: Marketing in the Modern Age

*Selay Ilgaz Sümer*

### **1. Introduction**

The most important way of businesses to succeed in their activities is to follow their environment carefully and try to integrate innovations in their bodies. In short, businesses must adopt the latest developments to maintain their existence under fierce competitive environment.

Marketing is one of the business functions that must keep up with these developments. In recent years, significant improvements have been made in the marketing efforts of the businesses. They have started to plan their marketing activities within the framework of different perspectives and techniques.

In recent years, the concept of value began to take place in the center of the marketing activities. Today, value is important almost for all businesses. There are different ways of creating value in marketing. In other words, the value that will be offered to consumers as a business can be evaluated in a wide range starting from the presale stages of the product to the after-sale periods. Therefore, the way of creating value can include using technology, empowering employees, etc. However, it is a fact that the basic condition of providing value in marketing is to make strategic marketing planning value-oriented.

Digital age and its implications also influenced the firms' marketing activities. The transition to the digital age has made it necessary to make significant changes in many aspects from the design stage of the products to the sales stage and even after-sale services. Consumers of the digital age have started to act consciously and have information about products as well as sales forces. With the introduction of digitalization, physical stores are gradually being replaced by virtual organizations. Electronic commerce has been adopted by many businesses as an effective way of marketing their goods and services.

The transition to the digital age also had an impact on the sales management activities. In other words, the presence of the digital environment has both created a variety of challenges for businesses and sales forces and also has facilitated sales forces activities. Especially in recent years sales forces, who strive to operate in a more value-oriented manner, have further increased their consulting roles. It is understood that the main task of the sales forces is not only to sell but also to provide information on various topics such as product and price comparisons to the consumers. This necessitates more careful selection and orientation of sales forces. It should be also noted that sales visits are now more effective by means of technological tools. In short, thanks to technological tools, the visual presentation of products is made more effectively than before. This facilitates the persuasion of consumers in the selling stage.

### **2. Sales management in modern marketing**

One of the prerequisites for success in an intense competitive environment is the effective planning of sales management activities. In this context, sales management activities should be planned considering the micro- and macro-environment of the businesses.

In recent years various changes and developments have significantly affected marketing activities of the businesses. Forces affecting sales management can be grouped as behavioral, technological, and managerial forces. Behavioral forces are related with the dynamism of consumer behavior. Technological forces cover the effects of technological innovations on sales management. Managerial forces include managerial efforts to increase the effectiveness of sales management-related activities [1]. These forces have made it necessary to consider certain points in the planning of sales management activities. Some of them can be listed as follows [2]:


As a result of the changes in sales management activities, the role of sales forces has started to change. Sales forces that were previously only the people who take the order of the customers have now become the relationship manager of the businesses [3]. As a result, the responsibilities and duties undertaken by the sales forces within the organization have increased.

### **3. Process of sales management**

Sales management can be defined as "all activities, processes, and decisions involved in managing the sales function in an organization" [4]. Sales management-related activities play an important role in the successful implementation of the strategies developed by the businesses [5]. The activities related to the sales management process consist of three major stages which are formulating the sales program, implementing the sales program, and evaluation and control. Sales management process is given in **Figure 1**.

**67**

**Author details**

Selay Ilgaz Sümer

Baskent University, Ankara, Turkey

provided the original work is properly cited.

\*Address all correspondence to: silgaz@baskent.edu.tr

Department of Management, Faculty of Economics and Administrative Sciences,

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

The first stage of the sales management is formulating the sales program activities. At this stage, it is necessary to make plans in terms of business environment, potential customers, demand and quota estimation, and determination of sales territories. The second stage covers the activities related with the implementation of the sales program. Stage 2 involves the motivation of sales forces to actualize the sales program. At this stage, issues such as role perceptions, aptitude, skill level, and motivation gain importance. In the third stage, an overall evaluation and control of the sales program and sales forces is performed. According to the results to be obtained at this stage, various changes can be made in the sales program of the

*Prologue: Marketing in the Modern Age DOI: http://dx.doi.org/10.5772/intechopen.90702*

business [4].

**Figure 1.** *Process of sales management [4].*

### *Prologue: Marketing in the Modern Age DOI: http://dx.doi.org/10.5772/intechopen.90702*

*Modern Perspectives in Business Applications*

of the businesses.

• Powerful customers

• Variety in marketing channels

the organization have increased.

**3. Process of sales management**

• Increased importance of services

• Global customers

**2. Sales management in modern marketing**

One of the prerequisites for success in an intense competitive environment is the effective planning of sales management activities. In this context, sales management activities should be planned considering the micro- and macro-environment

In recent years various changes and developments have significantly affected marketing activities of the businesses. Forces affecting sales management can be grouped as behavioral, technological, and managerial forces. Behavioral forces are related with the dynamism of consumer behavior. Technological forces cover the effects of technological innovations on sales management. Managerial forces include managerial efforts to increase the effectiveness of sales management-related activities [1]. These forces have made it necessary to consider certain points in the planning of sales management activities. Some of them can be listed as follows [2]:

As a result of the changes in sales management activities, the role of sales forces has started to change. Sales forces that were previously only the people who take the order of the customers have now become the relationship manager of the businesses [3]. As a result, the responsibilities and duties undertaken by the sales forces within

Sales management can be defined as "all activities, processes, and decisions involved in managing the sales function in an organization" [4]. Sales management-related activities play an important role in the successful implementation of the strategies developed by the businesses [5]. The activities related to the sales management process consist of three major stages which are formulating the sales program, implementing the sales program, and evaluation and control. Sales management process is given in **Figure 1**.

**66**

**Figure 1.**

*Process of sales management [4].*

The first stage of the sales management is formulating the sales program activities. At this stage, it is necessary to make plans in terms of business environment, potential customers, demand and quota estimation, and determination of sales territories. The second stage covers the activities related with the implementation of the sales program. Stage 2 involves the motivation of sales forces to actualize the sales program. At this stage, issues such as role perceptions, aptitude, skill level, and motivation gain importance. In the third stage, an overall evaluation and control of the sales program and sales forces is performed. According to the results to be obtained at this stage, various changes can be made in the sales program of the business [4].

### **Author details**

Selay Ilgaz Sümer Department of Management, Faculty of Economics and Administrative Sciences, Baskent University, Ankara, Turkey

\*Address all correspondence to: silgaz@baskent.edu.tr

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

### **References**

[1] Anderson RE. Personal selling and sales management in the new millennium. Journal of Personal Selling & Sales Management. 1996;**16**(4):17-32

[2] Colletti JA, Fiss MS. The ultimately accountable job: Leading today's sales organization. Harvard Business Review. 2006;**84**(7-8):124-131

[3] Storbacka K, Ryals L, Davies IA, Nenonen S. The changing role of sales: Viewing sales as a strategic, crossfunctional process. European Journal of Marketing. 2009;**43**(7/8):890-906

[4] Churchill GA, Ford NM, Walker OC, Johnston MW, Marshall GW. Sales Force Management. 9th ed. Boston: McGraw-Hill; 2009

[5] Ural T. The impact of sales management practices on job satisfaction of salespeople. Innovative Marketing. 2008;**4**(3):28-36

**69**

**Chapter 6**

**Abstract**

*Hesham O. Dinana*

Insight-Driven Sales Management

In the new VUCA (Volatile, Uncertain, Complex and Ambiguous) world that we live in, there are new rules that will reshape many of the components of sales management, from prospecting, to lead qualification, to closing and relationship management. This chapter will explore the impact of technology, data proliferation, and omni-channel customer touch points on how organizations will manage their sales process and the sales teams in the integrated online and offline worlds (O2O sales). The digital-age consumer and the digital-age sales team will have different communication needs and tools that need to be addressed by sales leaders to ensure their organizations' success and competitiveness in this new landscape. Customer insights is the new name of the game and it needs to be developed using techniques such as content management, user experience management, performance analytics, machine learning, and artificial intelligence. Effectively and efficiently managing the sales process and the sales practices in the digital age will be the new challenge that organizations need to face as some types of sales jobs might disappear (order takers) and new jobs will need to be developed (sales analysts and data scientists).

Most companies have heard about the VUCA world that we live in today, but few have developed actionable strategies to thrive in this business environment that is

Insight-driven sales management is one of those powerful systems that can help

To understand this novel approach to sales management, a review of academic literature and practitioner reports was conducted to explore this shift in the business environment and how it will impact the sales process and how we manage it. This chapter will review the impact of data and advanced technologies such as Artificial Intelligence and machine learning on sales decisions and the characteristics of the digital-age sales teams, consumers, and business buyers. It will also discuss the future of the sales process (planning, coordinating, controlling, and

Companies need to embrace the VUCA world and proactively manage it to capitalize on the many opportunities it represents and reduce the negative impact of threats that might arise. Sales organizations are the frontline forces that can help

entangled in **v**olatility, **u**ncertainty, **c**omplexity, and **a**mbiguity (VUCA).

Todays sales managers need to put science into the art of selling.

**Keywords:** data, analytics, sales management, insights, digital,

companies thrive not only survive in this new business world.

motivating) and the sales management practices.

manage this new business world.

new-age consumers, O2O, AWATAD

**1. Introduction**

### **Chapter 6**

## Insight-Driven Sales Management

*Hesham O. Dinana*

### **Abstract**

In the new VUCA (Volatile, Uncertain, Complex and Ambiguous) world that we live in, there are new rules that will reshape many of the components of sales management, from prospecting, to lead qualification, to closing and relationship management. This chapter will explore the impact of technology, data proliferation, and omni-channel customer touch points on how organizations will manage their sales process and the sales teams in the integrated online and offline worlds (O2O sales). The digital-age consumer and the digital-age sales team will have different communication needs and tools that need to be addressed by sales leaders to ensure their organizations' success and competitiveness in this new landscape. Customer insights is the new name of the game and it needs to be developed using techniques such as content management, user experience management, performance analytics, machine learning, and artificial intelligence. Effectively and efficiently managing the sales process and the sales practices in the digital age will be the new challenge that organizations need to face as some types of sales jobs might disappear (order takers) and new jobs will need to be developed (sales analysts and data scientists). Todays sales managers need to put science into the art of selling.

**Keywords:** data, analytics, sales management, insights, digital, new-age consumers, O2O, AWATAD

### **1. Introduction**

Most companies have heard about the VUCA world that we live in today, but few have developed actionable strategies to thrive in this business environment that is entangled in **v**olatility, **u**ncertainty, **c**omplexity, and **a**mbiguity (VUCA).

Insight-driven sales management is one of those powerful systems that can help companies thrive not only survive in this new business world.

To understand this novel approach to sales management, a review of academic literature and practitioner reports was conducted to explore this shift in the business environment and how it will impact the sales process and how we manage it. This chapter will review the impact of data and advanced technologies such as Artificial Intelligence and machine learning on sales decisions and the characteristics of the digital-age sales teams, consumers, and business buyers. It will also discuss the future of the sales process (planning, coordinating, controlling, and motivating) and the sales management practices.

Companies need to embrace the VUCA world and proactively manage it to capitalize on the many opportunities it represents and reduce the negative impact of threats that might arise. Sales organizations are the frontline forces that can help manage this new business world.

**68**

*Modern Perspectives in Business Applications*

[1] Anderson RE. Personal selling and sales management in the new millennium. Journal of Personal Selling & Sales Management. 1996;**16**(4):17-32

[2] Colletti JA, Fiss MS. The ultimately accountable job: Leading today's sales organization. Harvard Business Review.

[3] Storbacka K, Ryals L, Davies IA, Nenonen S. The changing role of sales: Viewing sales as a strategic, crossfunctional process. European Journal of Marketing. 2009;**43**(7/8):890-906

[4] Churchill GA, Ford NM, Walker OC, Johnston MW, Marshall GW. Sales Force Management. 9th ed. Boston: McGraw-

satisfaction of salespeople. Innovative

[5] Ural T. The impact of sales management practices on job

Marketing. 2008;**4**(3):28-36

2006;**84**(7-8):124-131

**References**

Hill; 2009

Sales management teams need to use agility to manage volatility, information to manage uncertainty, restructuring to manage complexity, and experimentation to manage ambiguity as follows:



**71**

VUCA world we live in.

*Insight-Driven Sales Management*

*DOI: http://dx.doi.org/10.5772/intechopen.84806*

and explain how to effectively address it.

**2. The data-driven sales world**

the future sales management models.

used to generate revenue and create value.

• **Experimentation** is the way to manage **ambiguity**; learning to put your ideas to the test and to leverage the lessons learnt is the best way to reduce the business ambiguity and to engage the teams and reduce anxiety about the changes.

Those are the new rules for effective sales management in the future. **Table 1** defines the dimensions of the VUCA world and provides examples to demonstrate it

We are living in a world where DATA is considered the new oil. Companies that will learn how to manage its internal and external customer data to develop insights to drive its sales process and its decision-making are those that will lead the way for

IDC indicates in their study about "Worldwide Embedded and Intelligent Systems" that by 2020 the world will have more than 4 billion connected people, with \$4 trillion in revenue opportunities, more than 25 million mobile applications, and more than 25 million embedded intelligent systems. All this will generate 50 trillion GB of data [2]. We are now moving toward the Internet of things (IoT), where the physical and virtual worlds are integrated. We are already seeing many devices and applications that are gradually coming part of our life such as smart homes, driverless cars, smart personal assistants, and industrial robotics. At the same time, many companies are working on commercializing the Internet of everything (IoET). This is where people, applications, devices, sensors, and data are seamlessly integrated and

This explosion of connectivity and data will require a different type of sales management approach that can turn this data into valuable information that is used to create organizational knowledge that can be leveraged using new tools such as

Syam and Sharma indicated that part of the fourth industrial revolution is the integration of Artificial Intelligence (AI) and machine learning (ML) into the sales functions. They labeled this movement as the "Sales Renaissance." They indicated that the impact will not be uniform across all sales situations, such that the higher the complexity of the sales process, the lower the impact of AI and ML on the salesperson. In such cases technology will augment the salesperson role but will not replace him/her. In such cases the salesperson is a knowledge broker. On the other hand, simple sales situations are good target for AI and ML to minimize the role of the salesperson or even replace him. They proposed that AI and ML can play a significant role in improving the efficiency and effectiveness of all the steps of the sales process including prospecting, pre-approach and approach, presentation,

Sales teams will never relinquish its reliance in traditional salesmanship and relationship skills but will need to complement this with an intelligent use of the data and the insights that can be drawn out of it to bring the sales team efficiency and effectiveness to new heights that matches the new challenges presented by the

The following **Figure 1** clearly indicates that the world has passed the information age and the knowledge economy and is now moving toward insight-driven business models as the foundation of future competitive advantage. But the figure

William C. Moncrief in his paper titled "Are sales as we know it dying… or merely transforming?" argued that many galvanizing environmental factors have

also shows that data is the foundation of this progression and evolution.

Artificial Intelligence (AI) and data science into customer insights.

overcoming objections in closing stage, and follow-up [3].

**Table 1.** *Managing the VUCA world [1].*

*Modern Perspectives in Business Applications*

manage ambiguity as follows:

**Complexity** A diverse but interrelated set

**Ambiguity** Lack of knowledge and

**Volatility** Instability that comes from

**Uncertainty** Situations are understood;

*Managing the VUCA world [1].*

of information, processes, and procedures that require deep integrated analysis to be usable

inability to link antecedents and consequences of critical issues with limited ability to use lessons learnt to make future predictions

frequent and unpredictable changes in the business environment

antecedents and consequences can be correlated, but past experiences cannot be used to assess the ramifications and magnitude of the changes

Sales management teams need to use agility to manage volatility, information to manage uncertainty, restructuring to manage complexity, and experimentation to

• **Agility** is the way to manage **volatility**; resources should be allocated to build flexibility in the company ability to take advantage of the windows of opportu-

• **Information** is the way to manage **uncertainty**; companies should learn to integrate and understand relationships and patterns to develop insights to support decision-making. Sales organizations are a great source of valuable

• **Restructuring** is the way to manage **complexity**; companies should learn to develop high-performing organization designs that align internal company capabilities with the external complexities in the most efficient and effective manner. Sales organizations represent a big part of the companies' human capital and need to continually evolve and innovate to support complexity management.

**What it is An example How to effectively address it**

The impact of new digital platforms on traditional media channels (TV, radio, and newspapers) has caused many shifts in consumer behavior that is impacting many industries such as media, telecomm, and entertainment

Raw material prices can be affected by many issues (such as political tensions, transportation costs, regulations, environmental issue, etc.) that cause it to be

very volatile

The war on terrorism generally suffers from uncertainty; we understand the root causes of terrorism, but not exactly when and how it will hit next

Internal standard operating procedures (SOPs) need to embrace the external environment perspective. Operations need to analyze the market information and integrate it in its practices through effective and efficient

Experimentation is the way to manage ambiguity. The management should develop an effective system for anticipation and deployment of strategies that can handle the unknowns based on the integration of new trends

Agility is the best way to handle volatility. Companies should focus on building controlled and wellplanned slacks to allow for future flexibility and manage volatility

Information based on new sources of data (both online and offline) coupled with insights are critical to managing uncertainty. Organizations need to embrace a new perspective on information

use in business

restructuring

and best practices

International market penetration involves managing a very complex set of relationships, laws, regulations, financing options, and logistics issues

nities presented by the rapidly changing business environment.

information that can support this uncertainty management.

**70**

**Table 1.**

• **Experimentation** is the way to manage **ambiguity**; learning to put your ideas to the test and to leverage the lessons learnt is the best way to reduce the business ambiguity and to engage the teams and reduce anxiety about the changes.

Those are the new rules for effective sales management in the future. **Table 1** defines the dimensions of the VUCA world and provides examples to demonstrate it and explain how to effectively address it.

### **2. The data-driven sales world**

We are living in a world where DATA is considered the new oil. Companies that will learn how to manage its internal and external customer data to develop insights to drive its sales process and its decision-making are those that will lead the way for the future sales management models.

IDC indicates in their study about "Worldwide Embedded and Intelligent Systems" that by 2020 the world will have more than 4 billion connected people, with \$4 trillion in revenue opportunities, more than 25 million mobile applications, and more than 25 million embedded intelligent systems. All this will generate 50 trillion GB of data [2].

We are now moving toward the Internet of things (IoT), where the physical and virtual worlds are integrated. We are already seeing many devices and applications that are gradually coming part of our life such as smart homes, driverless cars, smart personal assistants, and industrial robotics. At the same time, many companies are working on commercializing the Internet of everything (IoET). This is where people, applications, devices, sensors, and data are seamlessly integrated and used to generate revenue and create value.

This explosion of connectivity and data will require a different type of sales management approach that can turn this data into valuable information that is used to create organizational knowledge that can be leveraged using new tools such as Artificial Intelligence (AI) and data science into customer insights.

Syam and Sharma indicated that part of the fourth industrial revolution is the integration of Artificial Intelligence (AI) and machine learning (ML) into the sales functions. They labeled this movement as the "Sales Renaissance." They indicated that the impact will not be uniform across all sales situations, such that the higher the complexity of the sales process, the lower the impact of AI and ML on the salesperson. In such cases technology will augment the salesperson role but will not replace him/her. In such cases the salesperson is a knowledge broker. On the other hand, simple sales situations are good target for AI and ML to minimize the role of the salesperson or even replace him. They proposed that AI and ML can play a significant role in improving the efficiency and effectiveness of all the steps of the sales process including prospecting, pre-approach and approach, presentation, overcoming objections in closing stage, and follow-up [3].

Sales teams will never relinquish its reliance in traditional salesmanship and relationship skills but will need to complement this with an intelligent use of the data and the insights that can be drawn out of it to bring the sales team efficiency and effectiveness to new heights that matches the new challenges presented by the VUCA world we live in.

The following **Figure 1** clearly indicates that the world has passed the information age and the knowledge economy and is now moving toward insight-driven business models as the foundation of future competitive advantage. But the figure also shows that data is the foundation of this progression and evolution.

William C. Moncrief in his paper titled "Are sales as we know it dying… or merely transforming?" argued that many galvanizing environmental factors have

**Figure 1.** *From data to insights.*

changed sales over the years (such as globalization, changing consumer habits, and automation), but the impact of social media effects on sales will present a leapfrog in sales transformation. The social media environment will be affected by and will affect all aspects of the sales organization [4]. With the information SM provides the analytic tools available (such as Facebook analytics, Socialbakers, etc.); sales teams have a very powerful new tool to support their sales efforts and in customer relationship building.

In a case study developed by Bocconcelli et al. in 2017, they confirmed that small and medium enterprises (SMEs) can use different types of social media (SM) platforms (such as Facebook, YouTube, and LinkedIn) to manage the sales relationships with its distributors, customers, and business partners. SM as a valuable resource reduced constraints of time and space, enhanced communication, and provided more planned and proactive sales approach. Finally, SM effectiveness as sales resource depends on its integration with other SME sales resources [5].

The future of sales management is to be insight driven and to be built on a solid foundation of data, information, and knowledge. This provides better understanding of relations, patterns, and principles to manage all of the process stakeholders both the digital-age sales team and the digital-age consumers.

### **3. The digital-age sales team**

The digital-age sales team has seven key attributes needed to remain at the top of the future sales management system. These attributes hold true regardless of the size or shape of sales operation [6].


**73**

*Insight-Driven Sales Management*

measures

*DOI: http://dx.doi.org/10.5772/intechopen.84806*

ing, coaching, and certification

underserved market segments

points need to be assessed and improved.

**4. The digital-age consumers**

by the following seven dimensions:

sources and perspectives.

propositions that can satisfy consumer demand.

a.The Customer Relationship Management (CRM) system: data such as Pipeline Analytics, commission forecasting, and sales effectiveness

b.The enterprise resources planning (ERP) system: data such as demand

c.The human resources information system (HRIS): data such as onboard-

d.The industry data such as territory optimization, route optimization, and

4.Modern sales teams deliver **constant real-time coaching**: coaching should be an on-going process that is integrated in sales management and not as an add-on or ad hoc practice. It should also be based on information about sales

5.Modern sales teams manage using leading KPIs: traditional lagging KPIs such as sales target achievement and deal profitability are not enough to effectively manage the digital-age sales teams. Leading KPIs such as number of calls made, number of visits, average duration of sales calls, etc. are forward-facing indicators that give a picture of the health of our sales process efficiency and effectiveness.

6.Modern sales teams continually monitor and tune their sales process: as sales teams continuously face new types of customers and new markets with challenging new needs, the sales process must be continually monitored and tweaked to match the evolving sales situations and requirements. Sales process elements such as inputs, non-value-adding steps, decision points, and control

7.Modern sales teams encourage performance through **motivational initiatives**: compensation plans and commission schemes motivate basic sales performance, but high-level sales performance requires creative motivational initiatives such as sales contests that motivate the winners as well as the whole team.

Our sales teams need to face today's digital-age consumers. Those consumers are more complex and better equipped to deal with sales people. They are characterized

1.They are more **knowledgeable**: thanks to internet accessibility, user-generated content, and social media, consumer today have access to many sources of information to learn about companies, products, and services from different

2.They are more **demanding**: consumers today have new definition of VALUE that goes way beyond features and benefits. Sales teams need to focus on value

performance management and targeted to achieve specific KPIs.

planning, pricing optimization, and contract management

*Modern Perspectives in Business Applications*

relationship building.

**Figure 1.**

*From data to insights.*

**3. The digital-age sales team**

size or shape of sales operation [6].

areas for improvement.

data from four sources:

changed sales over the years (such as globalization, changing consumer habits, and automation), but the impact of social media effects on sales will present a leapfrog in sales transformation. The social media environment will be affected by and will affect all aspects of the sales organization [4]. With the information SM provides the analytic tools available (such as Facebook analytics, Socialbakers, etc.); sales teams have a very powerful new tool to support their sales efforts and in customer

In a case study developed by Bocconcelli et al. in 2017, they confirmed that small and medium enterprises (SMEs) can use different types of social media (SM) platforms (such as Facebook, YouTube, and LinkedIn) to manage the sales relationships with its distributors, customers, and business partners. SM as a valuable resource reduced constraints of time and space, enhanced communication, and provided more planned and proactive sales approach. Finally, SM effectiveness as sales resource depends on its integration with other SME sales resources [5].

The future of sales management is to be insight driven and to be built on a solid foundation of data, information, and knowledge. This provides better understanding of relations, patterns, and principles to manage all of the process stakeholders—

The digital-age sales team has seven key attributes needed to remain at the top of the future sales management system. These attributes hold true regardless of the

1.Modern sales teams are **data driven**: they use data along the full sales cycle from prospecting to lead qualification to closure and after-sales relationship

2.Modern sales teams are religious about **sales forecast accuracy**: the VUCA world that sales teams need to manage requires accuracy in forecasting to avoid resources misallocation and to increase their efficiency and effectiveness. Both underperforming and overachieving on sales forecasts should be looked at as

3.Modern sales teams focus on **sales performance management**: beyond sales targets achievement, the digital-age sales teams must incorporate in their system a total sales performance management (SPM) system that integrates

management or upselling and cross-selling opportunities.

both the digital-age sales team and the digital-age consumers.

**72**


### **4. The digital-age consumers**

Our sales teams need to face today's digital-age consumers. Those consumers are more complex and better equipped to deal with sales people. They are characterized by the following seven dimensions:


All those dimensions are driven by the inherent characteristics of the digital world we live in. this new consumer needs a new breed of sales people, tools, and processes to meet his needs, expectations, and higher levels of power.

This new level of consumer power in the digital age is based on four sources: two individual-based power sources (demand- and information-based power) due to higher level of accessibility and information availability and two dynamic and complex network-based power sources (network- and crowdbased power) due to higher levels of connectivity and interactions on social media platforms [7].

Demand-based power is viewed as democratic voting power exercised by the consumer in different actions online, such as Facebook likes, YouTube views, Google searches, and Amazon purchases. Information-based power is related both to the consumer content consumption and content creation.

Network-based power comes from the consumer ability to add value beyond the original content through content dissemination, content completion, or content modifications. Finally, crowd-based power comes from pooled, mobilized, and structured resources that the individual consumer and the groups he belongs to can benefit.

This escalating level of consumer power needs to be managed across the different areas of customer touch points and interactions both in the physical and digital worlds. That led to the redefinition of when and where the customer and the sales team connect.

Sales management is about efficiently and effectively managing the customer **moments of truth**. Traditionally, companies use different sales and marketing stimuli to create the first moment of truth during the sales process at the store (in-store promotions, merchandizing techniques, etc.) then the second moment of truth as the customer experiences the product/service (product design, after-sales service, updates/upgrades, etc.). **Figure 2** shows the traditional three-step mental model of sales/marketing [8].

As per Google, in the digital age, sales management needs to add a **zero moment of truth** (**ZMOT**), where the sales process starts in a pre-shopping stage that can happen

**75**

**Figure 3.**

**Figure 2.**

*Traditional sales/marketing mental model [8].*

*New-age sales/marketing mental model [8].*

*Insight-Driven Sales Management*

ultimate decision) [9].

*DOI: http://dx.doi.org/10.5772/intechopen.84806*

ment known as the **omni-channel retailing**.

online or at home or in store. This means that modern sales teams need to change their engagement model and definition of customer touch points (see **Figure 3** below). In a survey of 5000 customers, Google found that online comparison shopping comes (54%) immediately after talking with the sales person (57%) as the main influencer in their buying decision (see **Figure 4** for the comparison shopping online and searching online (50%) rank among the top influences on the shoppers'

Savvy consumers are becoming increasingly fastidious and expect a tailored, personal shopping experience. Modern day consumers expect to be able to shop anywhere (home, in-store, at work, on the road), at any time (24 × 7), and from any device (computer, mobile phone, e-kiosk, etc.). They want the right product and the right price delivered at the right time. Consumer-focused retailers are working hard to meet these stringent demands across the different channels the consumer is using. This integrated customer shopping experience is formed by the new environ-

The future in retailing is in the tight and seamless integration of online and offline business practices into a new business model that cater to the new emerging consumer needs. Traditional brick-and-mortar outlets, pure e-tailer sites/applications, and brick-and-click (bricks-and-mortars that also have an online presence) players need to develop new omni-channel-based strategies. That is why traditional retailers are looking to go online and why e-tailers are looking at various options to establish a physical presence (lately AMAZON acquired a supermarket chain called

### *Insight-Driven Sales Management DOI: http://dx.doi.org/10.5772/intechopen.84806*

*Modern Perspectives in Business Applications*

tion to manage this diversity.

and evaluation by the sales team.

sumers that are constantly on the move.

the sales person.

media platforms [7].

team connect.

model of sales/marketing [8].

3.They are more **empowered**: connected consumers have more options that allow them to compare and contrast different offerings to choose the best. They have more channels to access information, products, services, and companies.

4.They are more **collaborative**: consumers today help each other and provide information, opinions, advice, and support that were traditionally provided by

5.They are more **diverse**: thanks to the globalization of markets and consumerization of technology, consumers today share different experiences from different backgrounds and perspectives to enrich each other's purchase experience and make it more challenging for the sales team and the sales process adapta-

6.They are more **interactive**: the prefiltration of user-generated content (UGC) represents a whole new input to the company-customer communication process. This many-to-many communication requires continuous monitoring

7.They are more on the **move**: sales teams need to learn how to manage this new Any-Where, Any-Time, Any-Device (AWATAD) shopping behavior of con-

All those dimensions are driven by the inherent characteristics of the digital world we live in. this new consumer needs a new breed of sales people, tools, and

This new level of consumer power in the digital age is based on four sources: two individual-based power sources (demand- and information-based power) due to higher level of accessibility and information availability and two dynamic and complex network-based power sources (network- and crowdbased power) due to higher levels of connectivity and interactions on social

Demand-based power is viewed as democratic voting power exercised by the consumer in different actions online, such as Facebook likes, YouTube views, Google searches, and Amazon purchases. Information-based power is related both

Network-based power comes from the consumer ability to add value beyond the original content through content dissemination, content completion, or content modifications. Finally, crowd-based power comes from pooled, mobilized, and structured resources that the individual consumer and the groups he belongs to can benefit. This escalating level of consumer power needs to be managed across the different areas of customer touch points and interactions both in the physical and digital worlds. That led to the redefinition of when and where the customer and the sales

Sales management is about efficiently and effectively managing the customer **moments of truth**. Traditionally, companies use different sales and marketing stimuli to create the first moment of truth during the sales process at the store (in-store promotions, merchandizing techniques, etc.) then the second moment of truth as the customer experiences the product/service (product design, after-sales service, updates/upgrades, etc.). **Figure 2** shows the traditional three-step mental

As per Google, in the digital age, sales management needs to add a **zero moment of truth** (**ZMOT**), where the sales process starts in a pre-shopping stage that can happen

processes to meet his needs, expectations, and higher levels of power.

to the consumer content consumption and content creation.

**74**

online or at home or in store. This means that modern sales teams need to change their engagement model and definition of customer touch points (see **Figure 3** below).

In a survey of 5000 customers, Google found that online comparison shopping comes (54%) immediately after talking with the sales person (57%) as the main influencer in their buying decision (see **Figure 4** for the comparison shopping online and searching online (50%) rank among the top influences on the shoppers' ultimate decision) [9].

Savvy consumers are becoming increasingly fastidious and expect a tailored, personal shopping experience. Modern day consumers expect to be able to shop anywhere (home, in-store, at work, on the road), at any time (24 × 7), and from any device (computer, mobile phone, e-kiosk, etc.). They want the right product and the right price delivered at the right time. Consumer-focused retailers are working hard to meet these stringent demands across the different channels the consumer is using. This integrated customer shopping experience is formed by the new environment known as the **omni-channel retailing**.

The future in retailing is in the tight and seamless integration of online and offline business practices into a new business model that cater to the new emerging consumer needs. Traditional brick-and-mortar outlets, pure e-tailer sites/applications, and brick-and-click (bricks-and-mortars that also have an online presence) players need to develop new omni-channel-based strategies. That is why traditional retailers are looking to go online and why e-tailers are looking at various options to establish a physical presence (lately AMAZON acquired a supermarket chain called


**Figure 2.** *Traditional sales/marketing mental model [8].*

**Figure 3.** *New-age sales/marketing mental model [8].*

### **Figure 4.**

*What influences the shopper's ultimate decision [9].*

WHOLE FOODS and established pilots for physical stores called AMAZON GO). The challenge is to find a seamless solution for both the customer experience and internal sales management processes.

The omni-channel sales environment integrates both online and offline sales outlets including elements such as (1) online catalogs, (2) point of sale (POS) and payment systems, (3) mobile applications, (4) social media, (5) websites, (6) physical store, (7) near-filed communication (NFC) devices, (8) touch screen and tablets, and (9) digital screens*.* Those nine elements might see more options added to them in the future, so what we consider as complex sales environment today will be more and more complex in the future. That brings both opportunities and threats that sales management teams need to be aware of and ready for. This can be managed by adopting an integrated online to offline and offline to online (O2O) that meets the expectations and needs of the digital-age consumer [10].

Cummins et al. define omni-channel marketing in a sales context as the synergetic integration of customer touch points and communication opportunities for the purpose of creating a unified brand experience regardless of channel, platform, or stage in the selling process. They developed a framework for the impact of omnichannel marketing on six sales dimensions [11]:

**77**

*Insight-Driven Sales Management*

**5. The digital-age B2B buyers**

*DOI: http://dx.doi.org/10.5772/intechopen.84806*

Compared with buyers in the business-to-consumer (B2C) sector, businessto-business (B2B) buyers have been largely predictable in how they make buying decisions. But increasingly, that is no longer the case. Today, B2B buyers are behaving like consumers. They use online resources to collect information about the products, different suppliers, other buyers, and many more. This behavior reshapes the business buyers purchasing process, roles, and decision-making. This "consumerization" of B2B buying has made business customers more and more powerful. To maintain their balance of power in the process, sales professionals need to change

One major driver is the dramatic increase in the level of competition and disruption in the marketplace. The advent of more transparent marketplaces and the proliferation of online content and digital communities, combined with social media, allow buyers to increasingly self-educate and to process their purchases directly without dealing with a salesperson. According to the International Data Corporation (IDC), the majority of buying decisions (between 50 and 80%) are made prior to the engagement of the salesperson. Also 90% of B2B buying,

A recent study by Mckinsey & Company reported that the type of buying situation will have a big impact on the how B2B buyers value the involvement of the sales professional. In new-B=buy situations (where the buyer is researching a new product or service), 76% reported that it is helpful to engage with a salesperson. In the case of modified re-buy, the figure dropped to 52%. Finally, in the case of straight re-buy of the same product/service, only 15% of buyers saw value of deal-

The above reviewed studies clearly indicate that traditional sales organizations face the risk of obsolescence as buyers become more self-sufficient and more digital savvy. Basic sales interactions can be easily handled using online resources/portals such as Alibaba. Sales organizations need to focus more on managing complex

Managing the digital-age B2B buyers requires the adaption of digital selling approach that integrates new skills, tools, and processes. Companies like SAP and XEROX adopted a methodology that called for the establishment of a digital sales center of excellence (CoE) that provides leadership, best practices, skills, processes,

1.**Digital performance management** links sales activities tracking and content

3.**Cross-channel coverage management** delivers consistent, seamless experiences to maximize revenue potential and cost efficiency across channels.

5.**Relationship intelligence automation** leverages internal data and external

their approach and become as digital as their customers [12].

decision-makers never respond to cold sales calls.

purchasing situations where their value can be appreciated.

technologies, and other kinds of support to their sales teams.

management to financial outcomes.

The digital sales CoE develops the following six competencies [12]:

2.**Digital sales confidence** integrates digital skills and capabilities into sales activities and understand customer's agenda to position the offered

4.**Social networking** enables sales to identify leads and the right

data to understand relationships and relationship strength.

ing with the salesperson [13].

solutions.

decision-makers.


### **5. The digital-age B2B buyers**

*Modern Perspectives in Business Applications*

internal sales management processes.

*What influences the shopper's ultimate decision [9].*

channel marketing on six sales dimensions [11]:

• The role of communication tools and platforms

• Sales contexts (B2C vs. B2B)

• Impact of technology

• Stages in the sales process

• Impact on relationships

• Impact on firm performance

consumer [10].

**Figure 4.**

WHOLE FOODS and established pilots for physical stores called AMAZON GO). The challenge is to find a seamless solution for both the customer experience and

The omni-channel sales environment integrates both online and offline sales outlets including elements such as (1) online catalogs, (2) point of sale (POS) and payment systems, (3) mobile applications, (4) social media, (5) websites, (6) physical store, (7) near-filed communication (NFC) devices, (8) touch screen and tablets, and (9) digital screens*.* Those nine elements might see more options added to them in the future, so what we consider as complex sales environment today will be more and more complex in the future. That brings both opportunities and threats that sales management teams need to be aware of and ready for. This can be managed by adopting an integrated online to offline and offline to online (O2O) that meets the expectations and needs of the digital-age

Cummins et al. define omni-channel marketing in a sales context as the synergetic integration of customer touch points and communication opportunities for the purpose of creating a unified brand experience regardless of channel, platform, or stage in the selling process. They developed a framework for the impact of omni-

**76**

Compared with buyers in the business-to-consumer (B2C) sector, businessto-business (B2B) buyers have been largely predictable in how they make buying decisions. But increasingly, that is no longer the case. Today, B2B buyers are behaving like consumers. They use online resources to collect information about the products, different suppliers, other buyers, and many more. This behavior reshapes the business buyers purchasing process, roles, and decision-making. This "consumerization" of B2B buying has made business customers more and more powerful. To maintain their balance of power in the process, sales professionals need to change their approach and become as digital as their customers [12].

One major driver is the dramatic increase in the level of competition and disruption in the marketplace. The advent of more transparent marketplaces and the proliferation of online content and digital communities, combined with social media, allow buyers to increasingly self-educate and to process their purchases directly without dealing with a salesperson. According to the International Data Corporation (IDC), the majority of buying decisions (between 50 and 80%) are made prior to the engagement of the salesperson. Also 90% of B2B buying, decision-makers never respond to cold sales calls.

A recent study by Mckinsey & Company reported that the type of buying situation will have a big impact on the how B2B buyers value the involvement of the sales professional. In new-B=buy situations (where the buyer is researching a new product or service), 76% reported that it is helpful to engage with a salesperson. In the case of modified re-buy, the figure dropped to 52%. Finally, in the case of straight re-buy of the same product/service, only 15% of buyers saw value of dealing with the salesperson [13].

The above reviewed studies clearly indicate that traditional sales organizations face the risk of obsolescence as buyers become more self-sufficient and more digital savvy. Basic sales interactions can be easily handled using online resources/portals such as Alibaba. Sales organizations need to focus more on managing complex purchasing situations where their value can be appreciated.

Managing the digital-age B2B buyers requires the adaption of digital selling approach that integrates new skills, tools, and processes. Companies like SAP and XEROX adopted a methodology that called for the establishment of a digital sales center of excellence (CoE) that provides leadership, best practices, skills, processes, technologies, and other kinds of support to their sales teams.

The digital sales CoE develops the following six competencies [12]:


6.**High-value marketing content** engages with content aligned to the customers' agenda, while reinforcing company brand and key marketing messages.

With a digital selling CoE in place, a company's sales operations can become much more efficient and effective and substantially improve the return sales delivered to the enterprise, while meeting the expectations and needs of the digitalage B2B buyers. The digital selling CoE uses sales enablement process and tools to deliver on its promise.

### **6. Putting modern sales enablement to work**

There is no question that technology in the digital age has rapidly advanced the way we approach, negotiate, and close new opportunities. Sales enablement which is the process of providing the sales organization with *the information*, *content*, *and tools that help sales people sell more effectively and successfully engage the buyer throughout the buying process* is a great example of the impact of digitization. Once there is an information technology (IT) solution for better content management and basic performance feedback, sales enablement is now central to how business gets done at companies of all sizes and varieties.

Emerging technologies have made it possible to see what, when, and how the sales process, sales/marketing content, and customer interactions/feedback are working. This provides a solid foundation for digital sales transformation.

Analytics are at the core of sales enablement tools and are key to sales teams' performance improvement. When the sales leaders use analytical insights, they can link what the marketing team is pushing (e.g., content) out and what the sales team is pulling in (e.g., conversions/sales).

Digital sales organizations need to develop an effective content strategy that is based on solid understanding on how the offered content is being used both by the sales team members and the customers. Tracking and analyzing what content is being accessed, how often, at what time, and at what stage in the sales process can provide the needed insights for sales management.

Following are the major advantages that the sales enablement tools offer and the importance of analytics to each [14]:


**79**

letter and spirit.

*Insight-Driven Sales Management*

*DOI: http://dx.doi.org/10.5772/intechopen.84806*

continuously improve the content quality.

sales team efficiency and effectiveness.

have for the use of the tools.

**7. Sales management in the digital age**

better plans to guide their efforts.

performance and highlight accomplishments.

5.**Performance analytics**: Advanced analytics for content utilization and customer engagement can support the development of best practices.

6.**Modification tracking**: As sales people modify the content to customize their customers' interactions, it is important to track those changes to be able to

7.**Technology integration**: It is important to integrate the sales enablement tools with existing enterprise resources planning (ERP) and Customer Relationship Management (CRM) systems or other advanced tools such as business intelligence (BI) software to ensure data exchange and integrity in the developed insights.

8.**Onboarding and training**: Using the insights drawn from the analytics, sales teams can shorten onboarding time for new salespeople and improve overall

9.**Usage Rates**: Managers can monitor the sales enablement tool usage for the whole team or for individual salespeople to provide feedback to improve

10. **Proven ROI**: Sales enablement tools has proven track record in achieving

higher levels of customer conversion. This is the real objective that sales teams

Sales management is at the forefront of management systems development due to its direct link to the customer—the ultimate prize of sales. As new business models evolve, sales management needs to add new dimensions to the sales process and needs to embrace new ways to manage its traditional ones. So sales management has to work

in a broader and newer environment, in coexistence with the traditional lines. Traditionally, there are four basic elements of sales management [15]. All of

them can be enhanced when augmented by digitization as indicated below:

1.**Planning**: Sales plans must be based on extensive market research, and the facts must be verified at every stage. The plan should also be subject to continued review. The details of the plan should be discussed, with the different stakeholders to gain alignment and commitment. The ease of access to market information and availability of analytical tools can help the sales teams develop

2.**Coordination**: Coordination is all pervasive and permeates every step of the sales management process. It should be done both at the interdepartmental and interpersonnel levels. Utilization of digital sales management tools can ensure free flow of information that is selective to the objectives of the business.

3.**Controlling**: Sales managers need to check regularly that the sales activities are moving in the right direction. The management system should capture the lessons learnt (based on the analytics and insights) and take corrective actions while instilling new ways to prevent future deviations. The management needs to make sure that targets, budgets, and schedules are achieved or followed in

*Modern Perspectives in Business Applications*

**6. Putting modern sales enablement to work**

companies of all sizes and varieties.

is pulling in (e.g., conversions/sales).

importance of analytics to each [14]:

the best out of the tool.

ultimately better conversion rates.

provide the needed insights for sales management.

of great value to todays' digital sales organization.

deliver on its promise.

6.**High-value marketing content** engages with content aligned to the customers' agenda, while reinforcing company brand and key marketing messages.

With a digital selling CoE in place, a company's sales operations can become much more efficient and effective and substantially improve the return sales delivered to the enterprise, while meeting the expectations and needs of the digitalage B2B buyers. The digital selling CoE uses sales enablement process and tools to

There is no question that technology in the digital age has rapidly advanced the way we approach, negotiate, and close new opportunities. Sales enablement which is the process of providing the sales organization with *the information*, *content*, *and tools that help sales people sell more effectively and successfully engage the buyer throughout the buying process* is a great example of the impact of digitization. Once there is an information technology (IT) solution for better content management and basic performance feedback, sales enablement is now central to how business gets done at

Emerging technologies have made it possible to see what, when, and how the sales process, sales/marketing content, and customer interactions/feedback are working. This provides a solid foundation for digital sales transformation.

Analytics are at the core of sales enablement tools and are key to sales teams' performance improvement. When the sales leaders use analytical insights, they can link what the marketing team is pushing (e.g., content) out and what the sales team

Digital sales organizations need to develop an effective content strategy that is based on solid understanding on how the offered content is being used both by the sales team members and the customers. Tracking and analyzing what content is being accessed, how often, at what time, and at what stage in the sales process can

Following are the major advantages that the sales enablement tools offer and the

1.**Content management**: Sales teams deal with different customer segments that need different types of content; hence, offering dynamic, flexible ways to organize content that is enriched by performance data, and best practices are

2.**User experience (UX)**: Sales teams need to focus their time and efforts on customer engagement and not on navigating complex software menus and clicking on endless number of buttons. Providing a user experience that

3.**Machine learning**: Using data collected on searches, content recommendations, and sales enablement tools performance, machine learning can provide smart, efficient, and customized use of tips to the sales team members to get

4.**Customer engagement**: Delivering the right content at the right time through the right channel for each customer ensures higher levels of engagement and

integrates with the way sales teams work is a must for adaption.

**78**


### **7. Sales management in the digital age**

Sales management is at the forefront of management systems development due to its direct link to the customer—the ultimate prize of sales. As new business models evolve, sales management needs to add new dimensions to the sales process and needs to embrace new ways to manage its traditional ones. So sales management has to work in a broader and newer environment, in coexistence with the traditional lines.

Traditionally, there are four basic elements of sales management [15]. All of them can be enhanced when augmented by digitization as indicated below:


But gaining control over the sales team is not a simple task. Studies have shown that sales force has opportunism tendencies to gain short-term personal advantages over the long-term firm or team gains. This opportunism takes two main forms: shirking and influence activities. In their article on regaining control of the sales force, Kim and Jung studied 304 Korean automobile dealers and found that outcome controls and behavioral controls have different effects depending on the type of sales opportunism.

Output controls (preset goals to reward or penalize the sales force) mitigate sales control loss when it is matched with shirking behavior (evasion of obligation and withholding efforts), while it aggravates control loss when matched with salespeople influence activities (intentional acts to persuade the employer to take actions that that will be in their own advantage). On the other hand, behavior control (rules and procedures to reward and penalize sales force) mitigates control loss when matched with salesperson's influence activities and aggravates control loss when matched with shirking activities [16].

4.**Motivating**: Only motivated salespeople can achieve company's strategic sales goals (not only sales targets). Hence, motivating the sales teams is crucial for the long-term sustainability of results. It is a complex process that involves many tools and techniques since different people are motivated by different things. Hence, sales managers need to pay a lot of attention to this element of the sales management process.

In 2017, Reid et al. studied the use of 68 sales management practices (SMPs) such as forecasting, training, incentive pay, evaluations, etc.—covering seven key managerial areas building on the seminal work done by Dubinsky and Barry in 1982. Those sales management areas are (1) sales planning, (2) organization and selection, (3) training, (4) sales compensation, (5) supervision and evaluation, (6) control of sales force performance, and (7) sales technology. They identified a list of 21 challenges that sales managers face today and concluded that the low level of technology use by sales organizations amplifies the impact of those challenges [17].

Technology today is being used in the field by sales people for data collection and automation of sales tasks but is not as prevalent when it comes to managing and supporting the sales management practices (SMPs).

Hence, there is need for higher level of adoption to meet the need of the new breed of digital-age sales managers that is emerging. They are data hungry and technology savvy. This new breed also behaves more like a modern-day sports coach, craving sales performance insight. Digital-age sales managers live by a new mantra: *motivate*, *engage*, *and coach*.

With the integration of people and technology, sales managers need to continually develop their skills, process, and tools to achieve results in the VUCA world. This can be can only be achieved when they develop systems that fully integrate the seven sales management areas and not to deal with them as discrete or sequential steps. For example, this means using the control system (KPIs) to motivate the team and the coordination system to optimize the planning process.

In 2018, Panagopoulos et al. discussed the importance of boosting sales force morale in highly dynamic complex markets. They used the job demand-resource (JD-R) theory as the basis for their model. They studied the impact of market demands (customer purchase complexity and market dynamism) on sales force morale that drives key outcomes (sales force turnover and sales force productivity). Three job resources (sales capabilities training, firms product portfolio depth, and sales units' cross-functional cooperation) were used as moderating variables for the relationship between market demands and sales force morale [18].

**81**

period

*Insight-Driven Sales Management*

*DOI: http://dx.doi.org/10.5772/intechopen.84806*

fined in today's VUCA sales environment.

• Qualify leads within 24 hours of creation

In the longitudinal study they conducted over 2 years, they found that an increase

of morale by one point on a five-point scale improves sales force productivity by €226,834 of operating revenues per salesperson, while it lowers turnover rate by 5%. Finally, since the driver of any sales management process and the target is the efficient and effective sales team, the following section will demonstrate how can

**ENCOURAGE**: Sales people are target driven. Achieving the annual revenue target is of course vital but not enough to provide the needed encouragement for the sales team. It is the approach to achieving the set of targets that needs to be rede-

The problem with the sales revenue metric is that it is rearview facing. It is often referred to as a "**lagging metric.**" Digital sales managers need to use an integrated set of metrics that combines lagging and "**leading metrics**" to manage not only the sales results/outcomes but the sales process inputs and steps. This will allow sales managers to improve the process control as well as timely actions to ensure the desired results achievement. This provides a real proactive approach to sales teams' encouragement.

we **encourage**, **engage**, **and coach** the digital-age sales team [19].

For example, this can be achieved by having the sales teams:

• Create a certain number of pre-pipe opportunities each week

• Build a regular monthly or quarterly cadence of deal closure

• Book more meetings or demos with the right level of contact each week

1.**Constant**—equal split of the target value across the whole time period

2.**Front loaded**—starts with a high percentage of the target value then reduce it

3.**Back loaded**—starts with a low percentage of the target value then increase it

4.**Late push**—accelerated rate of target achievement toward the end of the time

This pacing approach for sales target setting allows for the flexibility in adapting the targets for different sales teams' capabilities and different client buying situations. This customized approach to target setting provides a more personalized approach that is more fit with today's sales people mentality that does not approach

Building on the need to use a combination of leading and lagging metrics, calculating the Salesperson Future Value (SFV) to the firm can add a whole new dimension

These leading sales metrics need to be combined into a regular cadence of daily, weekly, monthly, or even quarterly targets. This would allow the sales manager to drive the sales behaviors right across the sales process that delivers sustained success. Sales metrics also need to follow different time intervals. This allows for balancing the short-term and long-term monitoring of the performance. This approach is

• Meet a target of "meaningful" sales calls each week

called metrics pacing. There are four pacing methods:

gradually over the time period

gradually over the time period

the one-size-fits-all traditional approach.

### *Insight-Driven Sales Management DOI: http://dx.doi.org/10.5772/intechopen.84806*

*Modern Perspectives in Business Applications*

matched with shirking activities [16].

the sales management process.

supporting the sales management practices (SMPs).

and the coordination system to optimize the planning process.

relationship between market demands and sales force morale [18].

*motivate*, *engage*, *and coach*.

of sales opportunism.

But gaining control over the sales team is not a simple task. Studies have shown that sales force has opportunism tendencies to gain short-term personal advantages over the long-term firm or team gains. This opportunism takes two main forms: shirking and influence activities. In their article on regaining control of the sales force, Kim and Jung studied 304 Korean automobile dealers and found that outcome controls and behavioral controls have different effects depending on the type

Output controls (preset goals to reward or penalize the sales force) mitigate sales control loss when it is matched with shirking behavior (evasion of obligation and withholding efforts), while it aggravates control loss when matched with salespeople influence activities (intentional acts to persuade the employer to take actions that that will be in their own advantage). On the other hand, behavior control (rules and procedures to reward and penalize sales force) mitigates control loss when matched with salesperson's influence activities and aggravates control loss when

4.**Motivating**: Only motivated salespeople can achieve company's strategic sales goals (not only sales targets). Hence, motivating the sales teams is crucial for the long-term sustainability of results. It is a complex process that involves many tools and techniques since different people are motivated by different things. Hence, sales managers need to pay a lot of attention to this element of

In 2017, Reid et al. studied the use of 68 sales management practices (SMPs) such as forecasting, training, incentive pay, evaluations, etc.—covering seven key managerial areas building on the seminal work done by Dubinsky and Barry in 1982. Those sales management areas are (1) sales planning, (2) organization and selection, (3) training, (4) sales compensation, (5) supervision and evaluation, (6) control of sales force performance, and (7) sales technology. They identified a list of 21 challenges that sales managers face today and concluded that the low level of technology use by sales organizations amplifies the impact of those challenges [17]. Technology today is being used in the field by sales people for data collection and automation of sales tasks but is not as prevalent when it comes to managing and

Hence, there is need for higher level of adoption to meet the need of the new breed of digital-age sales managers that is emerging. They are data hungry and technology savvy. This new breed also behaves more like a modern-day sports coach, craving sales performance insight. Digital-age sales managers live by a new mantra:

With the integration of people and technology, sales managers need to continually develop their skills, process, and tools to achieve results in the VUCA world. This can be can only be achieved when they develop systems that fully integrate the seven sales management areas and not to deal with them as discrete or sequential steps. For example, this means using the control system (KPIs) to motivate the team

In 2018, Panagopoulos et al. discussed the importance of boosting sales force morale in highly dynamic complex markets. They used the job demand-resource (JD-R) theory as the basis for their model. They studied the impact of market demands (customer purchase complexity and market dynamism) on sales force morale that drives key outcomes (sales force turnover and sales force productivity). Three job resources (sales capabilities training, firms product portfolio depth, and sales units' cross-functional cooperation) were used as moderating variables for the

**80**

In the longitudinal study they conducted over 2 years, they found that an increase of morale by one point on a five-point scale improves sales force productivity by €226,834 of operating revenues per salesperson, while it lowers turnover rate by 5%.

Finally, since the driver of any sales management process and the target is the efficient and effective sales team, the following section will demonstrate how can we **encourage**, **engage**, **and coach** the digital-age sales team [19].

**ENCOURAGE**: Sales people are target driven. Achieving the annual revenue target is of course vital but not enough to provide the needed encouragement for the sales team. It is the approach to achieving the set of targets that needs to be redefined in today's VUCA sales environment.

The problem with the sales revenue metric is that it is rearview facing. It is often referred to as a "**lagging metric.**" Digital sales managers need to use an integrated set of metrics that combines lagging and "**leading metrics**" to manage not only the sales results/outcomes but the sales process inputs and steps. This will allow sales managers to improve the process control as well as timely actions to ensure the desired results achievement. This provides a real proactive approach to sales teams' encouragement.

For example, this can be achieved by having the sales teams:


These leading sales metrics need to be combined into a regular cadence of daily, weekly, monthly, or even quarterly targets. This would allow the sales manager to drive the sales behaviors right across the sales process that delivers sustained success.

Sales metrics also need to follow different time intervals. This allows for balancing the short-term and long-term monitoring of the performance. This approach is called metrics pacing. There are four pacing methods:


This pacing approach for sales target setting allows for the flexibility in adapting the targets for different sales teams' capabilities and different client buying situations. This customized approach to target setting provides a more personalized approach that is more fit with today's sales people mentality that does not approach the one-size-fits-all traditional approach.

Building on the need to use a combination of leading and lagging metrics, calculating the Salesperson Future Value (SFV) to the firm can add a whole new dimension

that supports today's sales managers challenging task of encouraging their teams while managing their investment in the team members to maximize the sales team performance and the firm return. Kumar, Sunder, and Leone proposed a system to measure the Salesperson Future Value and its drivers. They defined SFV as the net present value (NPV) of future cash flows from the salesperson's customers after accounting for appropriate costs associated with the salesperson. The study identified the drivers of SFV as training interventions (both for growth-related and task-related key skill areas) and incentives (both monetary and non-monetary). They used the salesperson tenure, region, market size, and competition level as control variables. They found that using current revenue generated by the sales person can lead to the wrong decision about the SFV in 27% of the cases and that the correlation between revenue generated and SFV is only 0.64. Effective management of the drivers of SFV for different segments of salespeople based on this leading indicator can help the organization optimize its resources and achieve its strategic sales objectives [20].

Finally, encouragement is reinforced with celebrating success. The digital-age sales manager knows that publicly recognizing achievement will not only encourage the winners to do more to stay at the top but will motivate the rest of the team to join the winner ranks.

The traditional once-a-year sales competitions that uses only sales target achievement (lagging indicator) does provide the foundation to develop a culture of continuous improvement. Hence using multiple year-round competitions using leading indicators is a better tool to maintain a highly motivated sales team.

**ENGAGE**: Most studies on salespeople behavior indicate that they are independent and individualistic personalities that did not follow instructions easily and value their freedom, unlike production workers or accountants. Engaging sales team to strictly follow the sales process developed by the organization is a challenging task for the management.

One of the approaches used to improve salespeople compliance with the sales process is to incorporate a set of "sales behaviors" metrics (leading indicators) as part of the sales management dashboard. This addition of key behavioral indicators (KBIs) to the traditional business oriented key performance indicators (KPIs) such as revenues and linking them to have a new definition of winners and losers is a critical part of the digital-age sales management approach.

The correlation between achievement of behavioral targets and revenue targets generates four profiles/segments of sales performers that not only focus on target achievements but in sustainability of delivering results while balancing the shortterm and long-term outcomes.

**Winners**: The group that overachieved on both the "sales behavior" target and revenue target. These are the top performers that should be closely monitored in order to learn from their best practices.

**Growers**: This group overachieved on their "sales behavior" target but did not meet their revenue target. They need coaching to improve their performance on specific parts of the sales process such as handling customer objections and closing. If we used only the traditional revenue targets as the metric for success, those sales people would be treated as Strugglers.

**Strugglers**: The sales people that did not achieved neither their "sales behavior" nor their revenue target. This group needs to receive sales training with active coaching or need to leave the sales organization.

**Mavericks**: The sales people that achieve the revenue target, but not the "sales behavior" target. They most probably do not follow the sales process and potentially close unhealthy deals that can hurt the organization down the road. If we used only the traditional revenue targets as the metric for success, those sales people would be treated as inners.

**83**

*Insight-Driven Sales Management*

*DOI: http://dx.doi.org/10.5772/intechopen.84806*

build the capabilities for tomorrow.

**8. Conclusion**

and effectiveness.

provide intelligent coaching in real time.

brings science into the art of selling.

flexible.

real-time deal health prediction for every single deal.

and inter-functional coordination) to spur sales force creativity [21].

This approach of tailored support to sales team will provide higher levels of engagement and more user adoption of the sales management tools. Digital-age sales managers transform the Customer Relationship Management (CRM) system from a passive data repository that is otherwise easily mistaken for a management reporting tool. They turn the CRM system into a real-time sales engagement tool. **COACH**: Proactive, deal-specific coaching to the sales team is the real driver for future success. The active use of the Digital Sales Management System (DSMS) by the sales managers ensures that achieving results today while coaching the team

The data savvy sales manager knows they can utilize the achievement of leading sales behaviors mapped against a deal to determine its true health. Utilizing machine learning, they drive the Digital Sales Management System to provide a

Finally, coaching to improve sales force performance beyond deal closing can be achieved by incorporating innovation implementation into the sales organization. Wang and Miao proved that sales force creativity impact on performance is fully mediated by innovation implementation. The relationship between creativity and innovation is moderated by innovative organization culture and behavior-based supervision. This is where proactive coaching that is guided by real-time data and analytics can lead to higher levels of sales force performance. The coaching should focus on market orientation (MO) (customer orientation, competitor orientation,

The VUCA world is dramatically changing the face of sales management. The digital-age consumer and B2B buyers need digital-age sales managers and organizations that continuously and actively map out and manage their sales process. Sales management today needs to be insight-driven, agile, experimentation based, and

New tools that collect, integrate, and analyze customer data from internal and external sources provide the foundation for the insight-driven sales management. This includes technologies such as analytics (Web, social, and mobile), Artificial Intelligence,

Those tools might represent a risk for some basic sales jobs that is focused on order taking for simple products but represent a great opportunity to augment salespeople that manage complex and high-margin sales to improve their efficiency

New sales management practices need to manage the omni-channel approach to customer touch points because customers today expect to engage with the company sales team Any-Where, Any-Time, Any-Device (AWATAD). They continuously move between the online and offline worlds (O2O) during the buying decisionmaking process. This represents a major opportunity for data collection to develop real-time insights beyond the traditional consumer market research studies.

The modern-day sales managers need to use leading indicators (not only traditional sales revenue lagging indicators) to measure progress along the sales process end-to-end path, to make these steps transparent to the whole team and motivate them to overachieve. They make success transparent and build a culture of winning based on creativity and innovation. They use the data insights and technology to

The digital-age sales manager thinks and behaves like a modern sports coach and

machine learning, dynamic content management, and user experience (UX).

### *Insight-Driven Sales Management DOI: http://dx.doi.org/10.5772/intechopen.84806*

*Modern Perspectives in Business Applications*

join the winner ranks.

task for the management.

term and long-term outcomes.

order to learn from their best practices.

people would be treated as Strugglers.

coaching or need to leave the sales organization.

that supports today's sales managers challenging task of encouraging their teams while managing their investment in the team members to maximize the sales team performance and the firm return. Kumar, Sunder, and Leone proposed a system to measure the Salesperson Future Value and its drivers. They defined SFV as the net present value (NPV) of future cash flows from the salesperson's customers after accounting for appropriate costs associated with the salesperson. The study identified the drivers of SFV as training interventions (both for growth-related and task-related key skill areas) and incentives (both monetary and non-monetary). They used the salesperson tenure, region, market size, and competition level as control variables. They found that using current revenue generated by the sales person can lead to the wrong decision about the SFV in 27% of the cases and that the correlation between revenue generated and SFV is only 0.64. Effective management of the drivers of SFV for different segments of salespeople based on this leading indicator can help the organization optimize its resources and achieve its strategic sales objectives [20]. Finally, encouragement is reinforced with celebrating success. The digital-age sales manager knows that publicly recognizing achievement will not only encourage the winners to do more to stay at the top but will motivate the rest of the team to

The traditional once-a-year sales competitions that uses only sales target achievement (lagging indicator) does provide the foundation to develop a culture of continuous improvement. Hence using multiple year-round competitions using

**ENGAGE**: Most studies on salespeople behavior indicate that they are independent and individualistic personalities that did not follow instructions easily and value their freedom, unlike production workers or accountants. Engaging sales team to strictly follow the sales process developed by the organization is a challenging

One of the approaches used to improve salespeople compliance with the sales process is to incorporate a set of "sales behaviors" metrics (leading indicators) as part of the sales management dashboard. This addition of key behavioral indicators (KBIs) to the traditional business oriented key performance indicators (KPIs) such as revenues and linking them to have a new definition of winners and losers is a

The correlation between achievement of behavioral targets and revenue targets generates four profiles/segments of sales performers that not only focus on target achievements but in sustainability of delivering results while balancing the short-

**Winners**: The group that overachieved on both the "sales behavior" target and revenue target. These are the top performers that should be closely monitored in

**Growers**: This group overachieved on their "sales behavior" target but did not meet their revenue target. They need coaching to improve their performance on specific parts of the sales process such as handling customer objections and closing. If we used only the traditional revenue targets as the metric for success, those sales

**Strugglers**: The sales people that did not achieved neither their "sales behavior"

**Mavericks**: The sales people that achieve the revenue target, but not the "sales behavior" target. They most probably do not follow the sales process and potentially close unhealthy deals that can hurt the organization down the road. If we used only the traditional revenue targets as the metric for success, those sales people would be

nor their revenue target. This group needs to receive sales training with active

leading indicators is a better tool to maintain a highly motivated sales team.

critical part of the digital-age sales management approach.

**82**

treated as inners.

This approach of tailored support to sales team will provide higher levels of engagement and more user adoption of the sales management tools. Digital-age sales managers transform the Customer Relationship Management (CRM) system from a passive data repository that is otherwise easily mistaken for a management reporting tool. They turn the CRM system into a real-time sales engagement tool.

**COACH**: Proactive, deal-specific coaching to the sales team is the real driver for future success. The active use of the Digital Sales Management System (DSMS) by the sales managers ensures that achieving results today while coaching the team build the capabilities for tomorrow.

The data savvy sales manager knows they can utilize the achievement of leading sales behaviors mapped against a deal to determine its true health. Utilizing machine learning, they drive the Digital Sales Management System to provide a real-time deal health prediction for every single deal.

Finally, coaching to improve sales force performance beyond deal closing can be achieved by incorporating innovation implementation into the sales organization. Wang and Miao proved that sales force creativity impact on performance is fully mediated by innovation implementation. The relationship between creativity and innovation is moderated by innovative organization culture and behavior-based supervision. This is where proactive coaching that is guided by real-time data and analytics can lead to higher levels of sales force performance. The coaching should focus on market orientation (MO) (customer orientation, competitor orientation, and inter-functional coordination) to spur sales force creativity [21].

### **8. Conclusion**

The VUCA world is dramatically changing the face of sales management. The digital-age consumer and B2B buyers need digital-age sales managers and organizations that continuously and actively map out and manage their sales process. Sales management today needs to be insight-driven, agile, experimentation based, and flexible.

New tools that collect, integrate, and analyze customer data from internal and external sources provide the foundation for the insight-driven sales management. This includes technologies such as analytics (Web, social, and mobile), Artificial Intelligence, machine learning, dynamic content management, and user experience (UX).

Those tools might represent a risk for some basic sales jobs that is focused on order taking for simple products but represent a great opportunity to augment salespeople that manage complex and high-margin sales to improve their efficiency and effectiveness.

New sales management practices need to manage the omni-channel approach to customer touch points because customers today expect to engage with the company sales team Any-Where, Any-Time, Any-Device (AWATAD). They continuously move between the online and offline worlds (O2O) during the buying decisionmaking process. This represents a major opportunity for data collection to develop real-time insights beyond the traditional consumer market research studies.

The modern-day sales managers need to use leading indicators (not only traditional sales revenue lagging indicators) to measure progress along the sales process end-to-end path, to make these steps transparent to the whole team and motivate them to overachieve. They make success transparent and build a culture of winning based on creativity and innovation. They use the data insights and technology to provide intelligent coaching in real time.

The digital-age sales manager thinks and behaves like a modern sports coach and brings science into the art of selling.

*Modern Perspectives in Business Applications*

### **Author details**

Hesham O. Dinana American University in Cairo, Cairo, Egypt

\*Address all correspondence to: hdinana@aucegypt.edu

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

**85**

*Insight-Driven Sales Management*

[1] Bennet N, Lemoine JG. What a difference a word makes:

Understanding threats to performance in a VUCA world. Business Horizons.

marketing-resources/micro-

[Accessed: 21 September 2017]

[10] Omni-Channel Marketing for Customer-Driven Interaction. Available from: https://www.kentico. com/product/resources/whitepapers/

omni-channel-marketing-forcustomer-driven-interac [Accessed:

[11] Cummins S, Peltier JW, Dixon A. Omni-channel research framework in the context of personal selling and sales management: A review and research extensions. Journal of Research in Interactive Marketing. 2016;**10**(1):2-16

[12] Digital selling: reinventing sales to stay relevant to changing B2B buyers. Available from: https://assets.ey.com/ content/dam/ey-sites/ey-com/global/ topics/advisory/ey-reinventing-salesto-stay-relevant-to-b2b-buyers.pdf [Accessed: 22 September 2018]

[13] Colter T, Guan M, Mahdavian M, Razzaq S, Schneider JD. What the Future Science of B2B Sales Growth Looks like. McKinsey; 2018. Available from: https://www.mckinsey.com/ business-functions/marketing-andsales/our-insights/what-thefuturescience-of-b2b-sales-growth-looks-like

[Accessed: 27 December 2018]

[14] Sales Enablement in the Digital Age. 2016. Posted by Rachel Davidson. Available from: https://salespop.net/salesprofessionals/sales-enablement-digitalage/ [Accessed: 23 September 2018]

[15] Sales Management: An Overview. Posted by Kundu S, Bishnoi VK. Available from: www.ddegjust.ac.in/ studymaterial/mba/mm-308.pdf. 6-8

[16] Kim SK, Jung YS. Regaining control of sales force. Industrial Marketing Management. 2018;**73**:84-98

14 July 2017]

moments/2011-winning-zmot-ebook/

[2] IDC: Worldwide Embedded and Intelligent Systems 2015-2020 Market Forecast. Framingham, MA, USA: IDC;

[3] Syam N, Sharma A. Waiting for a sales renaissance in the fourth industrial revolution: Machine learning and artificial intelligence in sales research and practice. Industrial Marketing Management. 2018;**69**:135-146

[4] Moncrief W. Are sales as we know it dying… or merely transforming? Journal of Personal Selling & Sales Management. 2017;**37**(4):271-279

[5] Bocconcelli R, Cioppi M, Pagano A. Social media as a resource in SMEs' sales process. Journal of Business & Industrial Marketing.

[6] Cloudapps. 7 Attributes of a Modern Sales Team. Available from: https://info. cloudapps.com/modern-sales-teamattributes [Accessed: 22 September 2018]

[7] Labrecque L, vor dem Esche J, Mathwick C, Novak TP, Hofacker CF. Consumer power: Evolution in the digital age. Journal of Interactive Marketing. 2013;**27**(2013):257-269

[8] Łysik Ł, Kutera R, Machura P. Zero moment of truth: A new marketing challenge in mobile consumer communities. In: Proceedings of the European Conference on Social Media: ECSM. Brighton, UK; 2014. pp. 294-304

[9] Google/Shopper Sciences. Zero Moment of Macro Study. April 2011. Available from: https:// www.thinkwithgoogle.com/

2017;**32**(5):693-709

**References**

2014;**57**(3):311-317

2015

*DOI: http://dx.doi.org/10.5772/intechopen.84806*

### **References**

*Modern Perspectives in Business Applications*

**84**

**Author details**

Hesham O. Dinana

provided the original work is properly cited.

American University in Cairo, Cairo, Egypt

\*Address all correspondence to: hdinana@aucegypt.edu

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

[1] Bennet N, Lemoine JG. What a difference a word makes: Understanding threats to performance in a VUCA world. Business Horizons. 2014;**57**(3):311-317

[2] IDC: Worldwide Embedded and Intelligent Systems 2015-2020 Market Forecast. Framingham, MA, USA: IDC; 2015

[3] Syam N, Sharma A. Waiting for a sales renaissance in the fourth industrial revolution: Machine learning and artificial intelligence in sales research and practice. Industrial Marketing Management. 2018;**69**:135-146

[4] Moncrief W. Are sales as we know it dying… or merely transforming? Journal of Personal Selling & Sales Management. 2017;**37**(4):271-279

[5] Bocconcelli R, Cioppi M, Pagano A. Social media as a resource in SMEs' sales process. Journal of Business & Industrial Marketing. 2017;**32**(5):693-709

[6] Cloudapps. 7 Attributes of a Modern Sales Team. Available from: https://info. cloudapps.com/modern-sales-teamattributes [Accessed: 22 September 2018]

[7] Labrecque L, vor dem Esche J, Mathwick C, Novak TP, Hofacker CF. Consumer power: Evolution in the digital age. Journal of Interactive Marketing. 2013;**27**(2013):257-269

[8] Łysik Ł, Kutera R, Machura P. Zero moment of truth: A new marketing challenge in mobile consumer communities. In: Proceedings of the European Conference on Social Media: ECSM. Brighton, UK; 2014. pp. 294-304

[9] Google/Shopper Sciences. Zero Moment of Macro Study. April 2011. Available from: https:// www.thinkwithgoogle.com/

marketing-resources/micromoments/2011-winning-zmot-ebook/ [Accessed: 21 September 2017]

[10] Omni-Channel Marketing for Customer-Driven Interaction. Available from: https://www.kentico. com/product/resources/whitepapers/ omni-channel-marketing-forcustomer-driven-interac [Accessed: 14 July 2017]

[11] Cummins S, Peltier JW, Dixon A. Omni-channel research framework in the context of personal selling and sales management: A review and research extensions. Journal of Research in Interactive Marketing. 2016;**10**(1):2-16

[12] Digital selling: reinventing sales to stay relevant to changing B2B buyers. Available from: https://assets.ey.com/ content/dam/ey-sites/ey-com/global/ topics/advisory/ey-reinventing-salesto-stay-relevant-to-b2b-buyers.pdf [Accessed: 22 September 2018]

[13] Colter T, Guan M, Mahdavian M, Razzaq S, Schneider JD. What the Future Science of B2B Sales Growth Looks like. McKinsey; 2018. Available from: https://www.mckinsey.com/ business-functions/marketing-andsales/our-insights/what-thefuturescience-of-b2b-sales-growth-looks-like [Accessed: 27 December 2018]

[14] Sales Enablement in the Digital Age. 2016. Posted by Rachel Davidson. Available from: https://salespop.net/salesprofessionals/sales-enablement-digitalage/ [Accessed: 23 September 2018]

[15] Sales Management: An Overview. Posted by Kundu S, Bishnoi VK. Available from: www.ddegjust.ac.in/ studymaterial/mba/mm-308.pdf. 6-8

[16] Kim SK, Jung YS. Regaining control of sales force. Industrial Marketing Management. 2018;**73**:84-98

[17] Reid DA, Plank RE, Peterson RM, Rich GA. Examining the use of sales force management practices. Journal of Business & Industrial Marketing. 2017;**32**(7):974-986

[18] Panagopoulos NG, Hochstein B, Baker TL, Pimentel MA. Boosting sales force morale in highly dynamic, complex markets: The role of job resources. Industrial Marketing Management. 2018;**74**:237-253

[19] Sales Management in the Digital Age: Motivate, Engage & Coach, The 3 Key Aspects of Modern Sales Management. Available from: https://www.cloudapps.com/salesmanagement-digital-age/ [Accessed: 23 September 2018]

[20] Kumar V, Sunder S, Leone RP. Measuring and managing a salesperson's future value to the firm. Journal of Marketing Research. 2014;**51**(5):591-608

[21] Wang G, Miao CF. Effects of sales force market orientation on creativity, innovation implementation, and sales performance. Journal of Business Research. 2015;**68**:2374-2382

**87**

**Chapter 7**

**Abstract**

Challenges?

Organizational Capabilities,

Innovation: How Well Are

We Prepared to Face Future

Value Cocreation, and Marketing

*Leslier Valenzuela-Fernández and Natacha Peñaloza-Briones*

The purpose of this chapter is to discuss the importance of management and strategic development, as well as network management and market orientation, in the results of innovation in marketing and collaboration of companies. In addition, the authors analyze how collaboration with other agents of interest is fundamental for the change of projects to have strategic impact, that is, for there to be a relationship between the development efforts of the area and the results of the business. Hence, the relevance of business models and the existence of dynamic capabilities to create value to the organization, the client, and society are analyzed. Coupled with the authors' empirical examination of the degree of collaboration that

Chilean industrial companies have achieved, the main contributions of this chapter

regarding innovation organizational capabilities; (2) identification of three aspects of structure of a company's network, market orientation, and strategic development, which are relevant to consider when establishing superior performance; and (3) generation of empirical evidence through a study applied to companies of the business-to-business sector in Chile using a self-administered survey method and

Consensus agrees that the term known as "marketing" first appeared between the years 1906 and 1911 in the United States. Although its origin is linked to the act of sales and distribution by the period's small-time merchants, Kotler believes that,

The American Marketing Association (AMA) introduced the first formal definition of this discipline as "the conducting of business activities that direct to the flow of goods and services from the producer to the consumer or users" ([2], pp. 191). This definition was widely accepted by the international scientific community and is still in use today.

are (1) an explanatory study that provides a systematic analysis of literature

**Keywords:** organizational capability, marketing innovation, collaboration,

presentation of results at the variable level.

instead, it was born alongside the arrival of humanity [1].

market orientation, value cocreation

**1. Introduction**

### **Chapter 7**

*Modern Perspectives in Business Applications*

[17] Reid DA, Plank RE, Peterson RM, Rich GA. Examining the use of sales force management practices. Journal of Business & Industrial Marketing.

[18] Panagopoulos NG, Hochstein B, Baker TL, Pimentel MA. Boosting sales force morale in highly dynamic, complex markets: The role of job resources. Industrial Marketing Management. 2018;**74**:237-253

[19] Sales Management in the Digital Age: Motivate, Engage & Coach, The 3 Key Aspects of Modern Sales Management. Available from: https://www.cloudapps.com/salesmanagement-digital-age/ [Accessed:

[20] Kumar V, Sunder S, Leone RP. Measuring and managing a salesperson's future value to the firm. Journal of Marketing Research. 2014;**51**(5):591-608

[21] Wang G, Miao CF. Effects of sales force market orientation on creativity, innovation implementation, and sales performance. Journal of Business Research. 2015;**68**:2374-2382

2017;**32**(7):974-986

23 September 2018]

**86**

## Organizational Capabilities, Value Cocreation, and Marketing Innovation: How Well Are We Prepared to Face Future Challenges?

*Leslier Valenzuela-Fernández and Natacha Peñaloza-Briones*

### **Abstract**

The purpose of this chapter is to discuss the importance of management and strategic development, as well as network management and market orientation, in the results of innovation in marketing and collaboration of companies. In addition, the authors analyze how collaboration with other agents of interest is fundamental for the change of projects to have strategic impact, that is, for there to be a relationship between the development efforts of the area and the results of the business. Hence, the relevance of business models and the existence of dynamic capabilities to create value to the organization, the client, and society are analyzed. Coupled with the authors' empirical examination of the degree of collaboration that Chilean industrial companies have achieved, the main contributions of this chapter are (1) an explanatory study that provides a systematic analysis of literature regarding innovation organizational capabilities; (2) identification of three aspects of structure of a company's network, market orientation, and strategic development, which are relevant to consider when establishing superior performance; and (3) generation of empirical evidence through a study applied to companies of the business-to-business sector in Chile using a self-administered survey method and presentation of results at the variable level.

**Keywords:** organizational capability, marketing innovation, collaboration, market orientation, value cocreation

### **1. Introduction**

Consensus agrees that the term known as "marketing" first appeared between the years 1906 and 1911 in the United States. Although its origin is linked to the act of sales and distribution by the period's small-time merchants, Kotler believes that, instead, it was born alongside the arrival of humanity [1].

The American Marketing Association (AMA) introduced the first formal definition of this discipline as "the conducting of business activities that direct to the flow of goods and services from the producer to the consumer or users" ([2], pp. 191). This definition was widely accepted by the international scientific community and is still in use today.

In retrospect, marketing has experienced substantial change in its conceptualization since it first appeared. One such case is the introduction of a strategic component to the discipline during the 1980s, where a proactive vision of environmental control was created in alignment to a new idea of marketing that is capable of generating change and expanding its influence in the field [3]. In this regard, Sheath et al. [4] classified marketing into 12 different schools of thought, organizing the common denominators and components into the general theory of marketing.

Considering the aforementioned, it is Kotler and Keller [5] whom proposed the new concept of marketing that best adapts to the current world. According to the authors, and from the perspective of companies, marketing is "the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the specific objectives and organizations. Marketing management is the art and science of selecting target markets and to attract and retain customers through the generation, delivery and communication of superior value" ([5], pp. 816).

In addition, the theories and domains of marketing have increased in number since the very start of the discipline [6]. Hence, the current approach of marketing now defines that it must not only be beneficial for all the relevant actors and people involved in the business but must also bring positive benefits to society as a whole [3]. These numerous changes have increased interest in marketing from various groups in society [7]. It is in this context that the relationship between marketing and innovation has been highlighted [8, 9], bringing an understanding that innovation in marketing serves to utilize and generate significant change in design, packaging, positioning, promotions, relationships, brand, and product or service pricing, all with the aim of increasing sales [3].

In this regard, innovation in marketing mainly tackles client needs beyond the general scope of the product [8]. Hence being part of a corporate competitivity nurturing process that contributes to the economic development of companies and society [10, 11]. In addition, innovation in marketing can bring to (1) the rise of a new idea, such as developments or radical innovation, and (2) incremental innovation, which is incremental modification of an existing concept, thus improving it [12]. Regarding radical innovation, this includes new products or business models [12], as well as generating value over an already existing product by means of improvements [12].

Regardless that the literature originally considered innovation in marketing as an effect of competitivity, modern context highlights the importance of the relationship as an indicator that measures a company's competitive level [13, 14]. This considers the fact that resource-advantage theory recognizes competitive advantage as a function of marketing, identifying a company's capability of innovating in marketing as a true measure that demonstrates a firm's true abilities [15–18].

The resource-advantage theory shows that the firm is determinant of profitability and not only the industry. This theory is based on the view that superior performance and a sustainable competitive position depend primarily on the resources of the firm [16, 18]. The key challenge is to transform imitable and substitutable resources into core competencies, which form the foundation of superior competitive positions in specific market segments [16, 17]. By doing this, these resources are developed and embedded as core competencies within the firm, not acquired, and improve with use, making them a source of sustainable competitive advantage [18].

The interest in resources and capabilities highlights the role of the management and strategic development. That means the firm's ability to make decisions regarding the resources to be allocated for the main actions to take place, where the effectiveness will be influenced by such decisions and their objectives [19]. Hence, the process of innovation transforms existing markets by creating new markets

**89**

*Organizational Capabilities, Value Cocreation, and Marketing Innovation…*

ensure the survival and growth of companies [20–25].

**2. Marketing innovation and value cocreation**

and opportunities. Furthermore, innovation encourages financial growth and is an important element in the search of sustainable competitive advantages that can

Innovation in marketing is a key factor for company survivability, growth, job creation, improved productivity, and corporate competitiveness [9, 26, 27]. To benefit from it, pioneering firms must develop organizational models that can align to the business context, client needs, and company situation [28]. Traditional business models focus mainly on creating and retaining corporate value. In retrospect, the new economic environment requires business models to ask additional questions pertaining client value and structural reconfigurations for companies in the field [29]. Such reconfigurations demand firms to develop competitive capability through innovation and collaboration with providers, clients, government agencies,

In this regard, organizational capability is a work method that represents a collective problem-solving system due to its "dynamic" aspect. This dynamism is possible from its tendency to evolve in time through learning processes, which is distinctive and superior in the role of combining and assigning resources [31, 32]. When an organization possesses a specific ability, it means "the organization (or the parts that compose it) can perform an activity in a trustworthy, and at least in a minimally satisfactory manner" ([33], pp. 1244). "Minimally satisfactory" is defined as that the result of an activity complies with the minimum requirements of the organization. The use of *organizational capability* is linked to an action and performance. An organization possesses capability when it does something that is valued in an effective manner when compared to others. However, a case of *isolated effective performance* does not imply that the organization possesses the capability to solve the problem, as this would require the existence of recurring (problem-

Based on this logic, a strong (dynamic) capability in organizational innovation in marketing would mean superior capability (in regard to the competition) to integrate, construct, and reconfigure internal competences to tackle or achieve changes in the corporate environment and diverse marketing situations [35]. Hence, understanding the determinants of innovation capability in performance is of great importance to companies, particularly when faced with markets that have different

The new models of competitivity in organizations highlight the existence of *strong capabilities* as sustainable competitive advantages. This is due to companies having learned how to copy various systems of costs, technology, distribution, service chains, manufacturing processes, and product features [37]. This makes it important to create business models that allow for the development of dynamic organizational capabilities related to innovation and proactive response to the needs of clients, consumers, and society as a whole [35]. Thus, business model sustainability is the result of creation and transformation of organizational capability [35].

In this regard, in the context of resource-based vision (RBV), a company builds a sustainable competitive advantage due to its resources and capabilities, which can be rare, valuable, inimitable, and nonsubstitutable in the market [38]. The capabilities (or competences) allow companies to use resources to achieve a desired result [39]. Thus, integrating resources and complementary capabilities encourage a *generation of innovation* and increase *positive innovation influence*, improving

*DOI: http://dx.doi.org/10.5772/intechopen.86061*

and other organizations [30].

solving) patterns in time [34].

factors and competitive intensity [36].

corporate performance [40, 41].

and opportunities. Furthermore, innovation encourages financial growth and is an important element in the search of sustainable competitive advantages that can ensure the survival and growth of companies [20–25].

### **2. Marketing innovation and value cocreation**

*Modern Perspectives in Business Applications*

communication of superior value" ([5], pp. 816).

pricing, all with the aim of increasing sales [3].

improvements [12].

In retrospect, marketing has experienced substantial change in its conceptualization since it first appeared. One such case is the introduction of a strategic component to the discipline during the 1980s, where a proactive vision of environmental control was created in alignment to a new idea of marketing that is capable of generating change and expanding its influence in the field [3]. In this regard, Sheath et al. [4] classified marketing into 12 different schools of thought, organizing the common denominators and components into the general theory of marketing. Considering the aforementioned, it is Kotler and Keller [5] whom proposed the new concept of marketing that best adapts to the current world. According to the authors, and from the perspective of companies, marketing is "the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the specific objectives and organizations. Marketing management is the art and science of selecting target markets and to attract and retain customers through the generation, delivery and

In addition, the theories and domains of marketing have increased in number since the very start of the discipline [6]. Hence, the current approach of marketing now defines that it must not only be beneficial for all the relevant actors and people involved in the business but must also bring positive benefits to society as a whole [3]. These numerous changes have increased interest in marketing from various groups in society [7]. It is in this context that the relationship between marketing and innovation has been highlighted [8, 9], bringing an understanding that innovation in marketing serves to utilize and generate significant change in design, packaging, positioning, promotions, relationships, brand, and product or service

In this regard, innovation in marketing mainly tackles client needs beyond the general scope of the product [8]. Hence being part of a corporate competitivity nurturing process that contributes to the economic development of companies and society [10, 11]. In addition, innovation in marketing can bring to (1) the rise of a new idea, such as developments or radical innovation, and (2) incremental innovation, which is incremental modification of an existing concept, thus improving it [12]. Regarding radical innovation, this includes new products or business models [12], as well as generating value over an already existing product by means of

Regardless that the literature originally considered innovation in marketing as an effect of competitivity, modern context highlights the importance of the relationship as an indicator that measures a company's competitive level [13, 14]. This considers the fact that resource-advantage theory recognizes competitive advantage as a function of marketing, identifying a company's capability of innovating in mar-

The resource-advantage theory shows that the firm is determinant of profitability

keting as a true measure that demonstrates a firm's true abilities [15–18].

and not only the industry. This theory is based on the view that superior performance and a sustainable competitive position depend primarily on the resources of the firm [16, 18]. The key challenge is to transform imitable and substitutable resources into core competencies, which form the foundation of superior competitive positions in specific market segments [16, 17]. By doing this, these resources are developed and embedded as core competencies within the firm, not acquired, and improve with use, making them a source of sustainable competitive advantage [18]. The interest in resources and capabilities highlights the role of the management and strategic development. That means the firm's ability to make decisions regarding the resources to be allocated for the main actions to take place, where the effectiveness will be influenced by such decisions and their objectives [19]. Hence, the process of innovation transforms existing markets by creating new markets

**88**

Innovation in marketing is a key factor for company survivability, growth, job creation, improved productivity, and corporate competitiveness [9, 26, 27]. To benefit from it, pioneering firms must develop organizational models that can align to the business context, client needs, and company situation [28]. Traditional business models focus mainly on creating and retaining corporate value. In retrospect, the new economic environment requires business models to ask additional questions pertaining client value and structural reconfigurations for companies in the field [29]. Such reconfigurations demand firms to develop competitive capability through innovation and collaboration with providers, clients, government agencies, and other organizations [30].

In this regard, organizational capability is a work method that represents a collective problem-solving system due to its "dynamic" aspect. This dynamism is possible from its tendency to evolve in time through learning processes, which is distinctive and superior in the role of combining and assigning resources [31, 32].

When an organization possesses a specific ability, it means "the organization (or the parts that compose it) can perform an activity in a trustworthy, and at least in a minimally satisfactory manner" ([33], pp. 1244). "Minimally satisfactory" is defined as that the result of an activity complies with the minimum requirements of the organization. The use of *organizational capability* is linked to an action and performance. An organization possesses capability when it does something that is valued in an effective manner when compared to others. However, a case of *isolated effective performance* does not imply that the organization possesses the capability to solve the problem, as this would require the existence of recurring (problemsolving) patterns in time [34].

Based on this logic, a strong (dynamic) capability in organizational innovation in marketing would mean superior capability (in regard to the competition) to integrate, construct, and reconfigure internal competences to tackle or achieve changes in the corporate environment and diverse marketing situations [35]. Hence, understanding the determinants of innovation capability in performance is of great importance to companies, particularly when faced with markets that have different factors and competitive intensity [36].

The new models of competitivity in organizations highlight the existence of *strong capabilities* as sustainable competitive advantages. This is due to companies having learned how to copy various systems of costs, technology, distribution, service chains, manufacturing processes, and product features [37]. This makes it important to create business models that allow for the development of dynamic organizational capabilities related to innovation and proactive response to the needs of clients, consumers, and society as a whole [35]. Thus, business model sustainability is the result of creation and transformation of organizational capability [35].

In this regard, in the context of resource-based vision (RBV), a company builds a sustainable competitive advantage due to its resources and capabilities, which can be rare, valuable, inimitable, and nonsubstitutable in the market [38]. The capabilities (or competences) allow companies to use resources to achieve a desired result [39]. Thus, integrating resources and complementary capabilities encourage a *generation of innovation* and increase *positive innovation influence*, improving corporate performance [40, 41].

Henceforth, managing a marketing innovation project in today's world has deeper significance than simply planning and developing a series of sequential and interrelated activities. It now requires taking actions from before the official "project development phase" by helping encourage an enabling environment [42]. This increase in complexity also requires greater coordination and collaboration efforts [43]. The latter, where knowledge and resources are exchanged, allow companies to benefit from the advantages that come from specialization, knowledge integration, and post-innovation performance [44].

Collaboration is defined as a type of cross-organizational integration with high levels of transparency, responsiveness, and synergy [45]. Collaboration refers to the capability of two or more actors/groups to communicate, coordinate activities, and share a team goal [22]. Concerning the aforementioned, various studies show the role of cooperation networks in the generation of innovation [46, 47]. The most common arguments presented for collaboration involve the beneficial combination of sharing risks, resources, and competences [48, 49], gaining access to new markets and technologies [50], accelerating the launch of products to the market and combining complementary skills [51, 52], encouraging joint solutions of problems [53, 54], and facilitating the generation of cocreation of value and conservation of clients [55].

Thus, the choice to collaborate depends on balancing the risk versus the returns. Companies collaborate to acquire resources and abilities that they cannot internally produce but only when the risks of cooperation can be controlled at a tolerable level [56]. After all, there are always risks and limitations that are important to consider when collaborating [57, 58]. Based on the intangible nature of the assets in play, the probability of experiencing opportunistic behaviors and knowledge disclosure increases, hence also increasing the transactional costs required to prevent such behaviors [48, 51]. Furthermore, organizations might have difficulty in evaluating the value of a partner due to information asymmetry and the secret nature of collaboration itself [59]. In addition, each additional collaborator increases the costs of monitoring, coordination, and transactions [59].

It is important not only to collaborate between companies [60], as the involvement of other agents in marketing innovation can bring positive effects to future quality of service [61]. In this respect, project changes have strategic impact when the relationship between development efforts of an area and the business results are achieved through collaboration with the agents of interest [62–64]. Agents can be other companies, trade associations, universities, and even public institutions depending on the economic sectors and objectives that are sought [65–67]. Therefore, innovation is a collective process that involves multiple actors [65].

With the corporate cooperation for innovation is reflected in cocreation value, which emphasizes stakeholder participation in the various innovation processes [68]. Since "value is always co-created" and "all social and economic actors are resource integrators," value creation is increasingly interconnected and collaborative by nature [55]. As value is "always uniquely and phenomenologically determined by the beneficiary" ([55], pp. 9), value cocreation processes can include multiple actors; thus value as an outcome is subjectively determined.

Perks et al. [69] define cocreation as "the joint creation of value by the company and its network of diverse entities (clients, providers, and distributors). Hence innovation is the result of the interaction and behaviour between individuals and organizations" ([69], pp. 935). Therefore innovation is the valuable potential result of interactions and meetings with the involved actors in the process of cocreation [70, 71].

Several researchers have studied cocreation value and coinnovation, highlighting the importance of commitment, teamwork, and generation of convincing experiences in the creation of value [68]. Based on the works of Sheath and Uslay [72],

**91**

*Organizational Capabilities, Value Cocreation, and Marketing Innovation…*

Vargo and Lusch [55], Frow and Payne [70], and Frow et al. [73], 12 specific different forms of cocreation can be identified: (1) coconception of ideas (i.e., solutions of public origin), (2) joint design (i.e., product personalization), (3) coproduction (i.e., working collaboratively with producer), (4) copromotion (i.e., brand community), (5) shared prices (i.e., political events), (6) joint distribution (i.e., direct and indirect distribution channels), (7) coconsumption (i.e., digital platforms), (8) joint maintenance (i.e., army), (9) cooutsourcing (external customer support and service), (10) codisposition (i.e., recycling initiatives from tech companies), (11) joint experiences (i.e., adventure-based vacations), and (12) creation of shared meanings

Regardless that the list covers a substantial number of possible ways of cocreation, Frow and Payne [70] recognize that in the future, new ways can rise. These authors also point to the fact that one form of cocreation can jointly exist with others. Thus, in a cocreation framework value is created for all actors through a win-win perspective [74]. In this regard, the inclusion of various agents that can form part of the cocreation value process becomes the very reason that the output

Cocreation allows companies to use the creative thought of other agents in the innovation process [77]. The sum of results in each process produces an increase in collective cocreation performance [78, 79]. Considering that cocreation generates benefits to the interested parties, it also brings forth new challenges due to the characteristics, interests, and diverse objectives that exist among the different

The participation of various actors (such as clients, providers, and partners) makes the cocreation value process to be complex by nature. Hence, it needs the development of new frameworks to analyze the creation of value because of numerous relationships between all involved actors, instead of only focusing on the relationship between providers and clients [74]. Based on previous research, a firm can establish collaborative activities in marketing innovation with a wide range of agents. These can be categorized as (1) those belonging to the value chain, providers and customers, with those who seek to optimize existing skills; (2) those with which new knowledge is generated, universities and research centers; and (3) those with which both ends can be sought, governments, competitors, and others [62, 63]. Thus, understanding the determinants of innovation capability in performance is of great importance to companies, particularly when faced with

Strategy is defined as the logical combination of actors, factors, and actions selected among other combination alternatives to achieve a specific objective in a specific context [81]. It is the ability (of the organization) to make decisions regarding the resources to be allocated for the main actions to take place [19]. The effectiveness of project strategy management is influenced by the decisions and the

The operation of a firm is focused on achieving the objectives, facing difficulties, and facing opportunities in the context in which the company carries out its activities with the capabilities and resources it possesses. Hence, in seeking to achieve its objectives, a firm will intend to ensure the development of these activi-

markets that have different factors and competitive intensity [36].

ties in the most appropriate manner while generating value [82].

**3. Determinants of innovation capability**

**3.1 Management and strategic development**

objectives set during the process.

*DOI: http://dx.doi.org/10.5772/intechopen.86061*

(i.e., organizational culture).

can be so attractive [75, 76].

involved actors [80].

*Organizational Capabilities, Value Cocreation, and Marketing Innovation… DOI: http://dx.doi.org/10.5772/intechopen.86061*

*Modern Perspectives in Business Applications*

and post-innovation performance [44].

monitoring, coordination, and transactions [59].

clients [55].

Henceforth, managing a marketing innovation project in today's world has deeper significance than simply planning and developing a series of sequential and interrelated activities. It now requires taking actions from before the official "project development phase" by helping encourage an enabling environment [42]. This increase in complexity also requires greater coordination and collaboration efforts [43]. The latter, where knowledge and resources are exchanged, allow companies to benefit from the advantages that come from specialization, knowledge integration,

Collaboration is defined as a type of cross-organizational integration with high levels of transparency, responsiveness, and synergy [45]. Collaboration refers to the capability of two or more actors/groups to communicate, coordinate activities, and share a team goal [22]. Concerning the aforementioned, various studies show the role of cooperation networks in the generation of innovation [46, 47]. The most common arguments presented for collaboration involve the beneficial combination of sharing risks, resources, and competences [48, 49], gaining access to new markets and technologies [50], accelerating the launch of products to the market and combining complementary skills [51, 52], encouraging joint solutions of problems [53, 54], and facilitating the generation of cocreation of value and conservation of

Thus, the choice to collaborate depends on balancing the risk versus the returns. Companies collaborate to acquire resources and abilities that they cannot internally produce but only when the risks of cooperation can be controlled at a tolerable level [56]. After all, there are always risks and limitations that are important to consider when collaborating [57, 58]. Based on the intangible nature of the assets in play, the probability of experiencing opportunistic behaviors and knowledge disclosure increases, hence also increasing the transactional costs required to prevent such behaviors [48, 51]. Furthermore, organizations might have difficulty in evaluating the value of a partner due to information asymmetry and the secret nature of collaboration itself [59]. In addition, each additional collaborator increases the costs of

It is important not only to collaborate between companies [60], as the involvement of other agents in marketing innovation can bring positive effects to future quality of service [61]. In this respect, project changes have strategic impact when the relationship between development efforts of an area and the business results are achieved through collaboration with the agents of interest [62–64]. Agents can be other companies, trade associations, universities, and even public institutions depending on the economic sectors and objectives that are sought [65–67]. Therefore, innovation is a collective process that involves multiple actors [65].

With the corporate cooperation for innovation is reflected in cocreation value, which emphasizes stakeholder participation in the various innovation processes [68]. Since "value is always co-created" and "all social and economic actors are resource integrators," value creation is increasingly interconnected and collaborative by nature [55]. As value is "always uniquely and phenomenologically determined by the beneficiary" ([55], pp. 9), value cocreation processes can include

Perks et al. [69] define cocreation as "the joint creation of value by the company and its network of diverse entities (clients, providers, and distributors). Hence innovation is the result of the interaction and behaviour between individuals and organizations" ([69], pp. 935). Therefore innovation is the valuable potential result of interactions and

Several researchers have studied cocreation value and coinnovation, highlighting the importance of commitment, teamwork, and generation of convincing experiences in the creation of value [68]. Based on the works of Sheath and Uslay [72],

multiple actors; thus value as an outcome is subjectively determined.

meetings with the involved actors in the process of cocreation [70, 71].

**90**

Vargo and Lusch [55], Frow and Payne [70], and Frow et al. [73], 12 specific different forms of cocreation can be identified: (1) coconception of ideas (i.e., solutions of public origin), (2) joint design (i.e., product personalization), (3) coproduction (i.e., working collaboratively with producer), (4) copromotion (i.e., brand community), (5) shared prices (i.e., political events), (6) joint distribution (i.e., direct and indirect distribution channels), (7) coconsumption (i.e., digital platforms), (8) joint maintenance (i.e., army), (9) cooutsourcing (external customer support and service), (10) codisposition (i.e., recycling initiatives from tech companies), (11) joint experiences (i.e., adventure-based vacations), and (12) creation of shared meanings (i.e., organizational culture).

Regardless that the list covers a substantial number of possible ways of cocreation, Frow and Payne [70] recognize that in the future, new ways can rise. These authors also point to the fact that one form of cocreation can jointly exist with others. Thus, in a cocreation framework value is created for all actors through a win-win perspective [74]. In this regard, the inclusion of various agents that can form part of the cocreation value process becomes the very reason that the output can be so attractive [75, 76].

Cocreation allows companies to use the creative thought of other agents in the innovation process [77]. The sum of results in each process produces an increase in collective cocreation performance [78, 79]. Considering that cocreation generates benefits to the interested parties, it also brings forth new challenges due to the characteristics, interests, and diverse objectives that exist among the different involved actors [80].

The participation of various actors (such as clients, providers, and partners) makes the cocreation value process to be complex by nature. Hence, it needs the development of new frameworks to analyze the creation of value because of numerous relationships between all involved actors, instead of only focusing on the relationship between providers and clients [74]. Based on previous research, a firm can establish collaborative activities in marketing innovation with a wide range of agents. These can be categorized as (1) those belonging to the value chain, providers and customers, with those who seek to optimize existing skills; (2) those with which new knowledge is generated, universities and research centers; and (3) those with which both ends can be sought, governments, competitors, and others [62, 63]. Thus, understanding the determinants of innovation capability in performance is of great importance to companies, particularly when faced with markets that have different factors and competitive intensity [36].

### **3. Determinants of innovation capability**

### **3.1 Management and strategic development**

Strategy is defined as the logical combination of actors, factors, and actions selected among other combination alternatives to achieve a specific objective in a specific context [81]. It is the ability (of the organization) to make decisions regarding the resources to be allocated for the main actions to take place [19]. The effectiveness of project strategy management is influenced by the decisions and the objectives set during the process.

The operation of a firm is focused on achieving the objectives, facing difficulties, and facing opportunities in the context in which the company carries out its activities with the capabilities and resources it possesses. Hence, in seeking to achieve its objectives, a firm will intend to ensure the development of these activities in the most appropriate manner while generating value [82].

In this regard, Brand et al. [83] affirm that governance consists of setting control mechanisms, incentives, rules, and penalties and coordinating the actions of network players, which the authors define as *collective structuring* [84]. These elements of governance are the mechanisms used by managers and network players to ensure better control over the formal and informal aspects of the network [83]. Concerning network management, Roth et al. [85] state that management is responsible for positively influencing the members' competitiveness and for reaching the goals proposed by the organization. The authors also list some of the roles of interorganizational network management such as member selection, planning and communication, assessment, integration, providing services to members, coordination, incentives, and controls.

Hence, innovation management is an intentional systematic process where the level of affinity that the company has with its environment plays an important role [86]. A firm can choose to apply different innovation strategies to achieve its objectives or improve its competitive advantages [87]. Thus, innovation stops being a single act that applies novel ideas, instead becoming a manageable and susceptible process that is both measured and systematically controlled [88]. In this regard, the structuralization of innovation processes becomes the starting point of great interest for companies [86].

The structuralization of innovation is managed through the stabilization of processes and the setting of conditions, restrictions, behaviors, and expected results [89]. Hence, the management of the innovation process must consider the framework, criteria, and tools for identifying, elaborating, and systemizing each of the involved activities. Under these conditions, each organization will be able to control, improve the different aspects of innovation, and thus integrate them into the total processes of the company.

The literature has addressed a series of aspects related to management structure and control such as the rules, penalties, formal agreements, and control mechanisms that include leadership and coordination, which are relevant to sustain innovation initiatives [84].

Organizations must take into account the relevant guidelines to build, implement, and evaluate innovation strategies adopted by the company. Innovation strategy must (a) recognize the importance of the client in the process, (b) develop strong ties with providers, (c) integrate different phases and actors in the constructive process, (d) improve the flow of information, (e) transmit knowledge of one project to another, and (f) encourage the use of rules based on the results, which are not pre-established [90]. This is important because in any collaboration process, there are risks and limitations that are considered [48, 57]. Based on the intangible nature of the assets at play, the probability of experiencing opportunistic behaviors and knowledge disclosure increases, hence also raising the transactional costs required to prevent such behaviors [51]. Furthermore, organizations might have difficulty in evaluating the value of a partner due to information asymmetry and the secret nature of collaboration itself [59]. In addition, each additional collaborator increases the costs of monitoring, coordination, and transactions [59, 91, 92].

Therefore, collaboration is evaluated with a largely strategic focus [48]. The option to collaborate must depend on balancing the risks versus the returns, where companies collaborate to acquire resources and skills that they cannot internally produce, if the cooperation is maintained at a tolerable level [56].

### **3.2 Relations and network management**

As humans are social beings, the creation of networks and relationships are phenomena that span since the very start of society [93]. The social network theory

**93**

*Organizational Capabilities, Value Cocreation, and Marketing Innovation…*

idea diffusion, innovation, and sharing of experiences [94, 95].

larger number of complex exchanges of resources and information [55].

a member can benefit more than another, among others [47, 97, 105, 106].

and refining routines for synergistic association [107].

market share, making collaboration riskier [112–114].

**3.3 Market orientation**

In the case of innovation, cooperation can be a dilemma due to the existence of the transfer of knowledge, abilities, and resources, which can make members distrust in participating [36]. Some of the preoccupations in the innovation process that can be considered as deterrents for collaboration can be found in the form of profit splitting of a new tech, research and development decisions, and fearing that

Thus, the concept of networks highlights two key observations: (1) intra- and interorganizational collaboration is not simply a means to compensate for the lack of internal skills; and (2) collaboration is not a series of discrete transactions. The value and capability of a company as a collaborator are based on its internal assets, but simultaneously, the activity of collaboration will develop and strengthen those internal competences. This means that companies deepen their capability to collaborate by not only managing relations in a dyadic way but also by instantiating

In the literature, innovation is shown in two ways: as a structural approach and as a process-oriented approach [108]. The structural approach is tradition-based by nature, where by structuralizing certain parameters with innovation, companies bring value to the users and final consumers [109]. The process-oriented approach views innovation as a complex process that follows a defined design through the interaction of various social groups at an internal and external form from the organizations [110]. Both cases understand innovation as an iteration of decisions and implementation of new ideas by people who communicate with other people [108]. In this regard, the competitive environment in which a company operates affects the benefits and costs of collaboration [111]. Disclosure costs are higher for companies in highly competitive markets, where information leaks quickly translate into loss of

Strategic marketing literature assumes that the key to the success of organizational processes lies in the belief that market orientation provides the capability to detect the market, have a proactive attitude toward customer satisfaction, obtain greater use of information, possess a better reception of ideas, and have a degree

states that various agents of a society find themselves connected to each other, forming communication and influence channels [94]. In this regard, networks are among the most common tools for diffusing and acquiring knowledge. A (social) network is a means for communication, bonding, advice, and support that exists between the members of a social system [95]. The features and structure of relationship networks, created by an organization, are crucial to determine the flow of

An interorganizational cooperation network stands itself on the management of relationships between its members [84, 96–98], which are composed of individual and collective interests [99–101]. The former brings new members to take part in the network to chase common goals, thus obtaining individual and collective benefits [84]. Management efficiency in the relationship with agents of interest is the main source of income and opportunity that increases profitability of a business [102]. It is the ability to collaborate interorganizationally; share risks, resources, and competences; unify skills; and foster joint solutions; among others [55, 103]. Superior performance comes from market detection capability, better reception of ideas, use of information, and bonding [104]. Thus, a relationship is the repetition and maintenance of solid interactions between parties due to the existence of economic or social links between them to achieve mutual benefits [102]. The exchange based on relationships corresponds to a

*DOI: http://dx.doi.org/10.5772/intechopen.86061*

*Organizational Capabilities, Value Cocreation, and Marketing Innovation… DOI: http://dx.doi.org/10.5772/intechopen.86061*

*Modern Perspectives in Business Applications*

tion, incentives, and controls.

interest for companies [86].

the total processes of the company.

innovation initiatives [84].

In this regard, Brand et al. [83] affirm that governance consists of setting control mechanisms, incentives, rules, and penalties and coordinating the actions of network players, which the authors define as *collective structuring* [84]. These elements of governance are the mechanisms used by managers and network players to ensure better control over the formal and informal aspects of the network [83]. Concerning network management, Roth et al. [85] state that management is responsible for positively influencing the members' competitiveness and for reaching the goals proposed by the organization. The authors also list some of the roles of interorganizational network management such as member selection, planning and communication, assessment, integration, providing services to members, coordina-

Hence, innovation management is an intentional systematic process where the level of affinity that the company has with its environment plays an important role [86]. A firm can choose to apply different innovation strategies to achieve its objectives or improve its competitive advantages [87]. Thus, innovation stops being a single act that applies novel ideas, instead becoming a manageable and susceptible process that is both measured and systematically controlled [88]. In this regard, the structuralization of innovation processes becomes the starting point of great

The structuralization of innovation is managed through the stabilization of processes and the setting of conditions, restrictions, behaviors, and expected results [89]. Hence, the management of the innovation process must consider the framework, criteria, and tools for identifying, elaborating, and systemizing each of the involved activities. Under these conditions, each organization will be able to control, improve the different aspects of innovation, and thus integrate them into

The literature has addressed a series of aspects related to management structure and control such as the rules, penalties, formal agreements, and control mechanisms that include leadership and coordination, which are relevant to sustain

Organizations must take into account the relevant guidelines to build, implement, and evaluate innovation strategies adopted by the company. Innovation strategy must (a) recognize the importance of the client in the process, (b) develop strong ties with providers, (c) integrate different phases and actors in the constructive process, (d) improve the flow of information, (e) transmit knowledge of one project to another, and (f) encourage the use of rules based on the results, which are not pre-established [90]. This is important because in any collaboration process, there are risks and limitations that are considered [48, 57]. Based on the intangible nature of the assets at play, the probability of experiencing opportunistic behaviors and knowledge disclosure increases, hence also raising the transactional costs required to prevent such behaviors [51]. Furthermore, organizations might have difficulty in evaluating the value of a partner due to information asymmetry and the secret nature of collaboration itself [59]. In addition, each additional collaborator increases the costs of monitoring, coordination, and transactions [59, 91, 92]. Therefore, collaboration is evaluated with a largely strategic focus [48]. The option to collaborate must depend on balancing the risks versus the returns, where companies collaborate to acquire resources and skills that they cannot internally

produce, if the cooperation is maintained at a tolerable level [56].

As humans are social beings, the creation of networks and relationships are phenomena that span since the very start of society [93]. The social network theory

**3.2 Relations and network management**

**92**

states that various agents of a society find themselves connected to each other, forming communication and influence channels [94]. In this regard, networks are among the most common tools for diffusing and acquiring knowledge. A (social) network is a means for communication, bonding, advice, and support that exists between the members of a social system [95]. The features and structure of relationship networks, created by an organization, are crucial to determine the flow of idea diffusion, innovation, and sharing of experiences [94, 95].

An interorganizational cooperation network stands itself on the management of relationships between its members [84, 96–98], which are composed of individual and collective interests [99–101]. The former brings new members to take part in the network to chase common goals, thus obtaining individual and collective benefits [84].

Management efficiency in the relationship with agents of interest is the main source of income and opportunity that increases profitability of a business [102]. It is the ability to collaborate interorganizationally; share risks, resources, and competences; unify skills; and foster joint solutions; among others [55, 103]. Superior performance comes from market detection capability, better reception of ideas, use of information, and bonding [104]. Thus, a relationship is the repetition and maintenance of solid interactions between parties due to the existence of economic or social links between them to achieve mutual benefits [102]. The exchange based on relationships corresponds to a larger number of complex exchanges of resources and information [55].

In the case of innovation, cooperation can be a dilemma due to the existence of the transfer of knowledge, abilities, and resources, which can make members distrust in participating [36]. Some of the preoccupations in the innovation process that can be considered as deterrents for collaboration can be found in the form of profit splitting of a new tech, research and development decisions, and fearing that a member can benefit more than another, among others [47, 97, 105, 106].

Thus, the concept of networks highlights two key observations: (1) intra- and interorganizational collaboration is not simply a means to compensate for the lack of internal skills; and (2) collaboration is not a series of discrete transactions. The value and capability of a company as a collaborator are based on its internal assets, but simultaneously, the activity of collaboration will develop and strengthen those internal competences. This means that companies deepen their capability to collaborate by not only managing relations in a dyadic way but also by instantiating and refining routines for synergistic association [107].

### **3.3 Market orientation**

In the literature, innovation is shown in two ways: as a structural approach and as a process-oriented approach [108]. The structural approach is tradition-based by nature, where by structuralizing certain parameters with innovation, companies bring value to the users and final consumers [109]. The process-oriented approach views innovation as a complex process that follows a defined design through the interaction of various social groups at an internal and external form from the organizations [110]. Both cases understand innovation as an iteration of decisions and implementation of new ideas by people who communicate with other people [108]. In this regard, the competitive environment in which a company operates affects the benefits and costs of collaboration [111]. Disclosure costs are higher for companies in highly competitive markets, where information leaks quickly translate into loss of market share, making collaboration riskier [112–114].

Strategic marketing literature assumes that the key to the success of organizational processes lies in the belief that market orientation provides the capability to detect the market, have a proactive attitude toward customer satisfaction, obtain greater use of information, possess a better reception of ideas, and have a degree

of connection that leads to superior organizational performance [104]. This puts the concept of market orientation as an organizational cultural approach or as an integral part of the mission, vision, and values of a company [115]. It is important to note that the perspective from the conception of generation of intelligence identifies a series of specific actions around information [116].

These different approaches are considered as interrelated perspectives [117]. Strategic orientation will reflect a company's philosophy on how to conduct business through a set of deeply held values and beliefs that guide the company's attempt to achieve superior performance [118]. In addition, these values and beliefs define the resources to be used, transcend individual capabilities, and unify resources and capabilities into a cohesive whole [119].

Considering the concept of market orientation, there is a broad general consensus that it is a combination of three critical dimensions [116]: (1) generation of intelligence on all the elements of the market (customers, competitors, and the environment), (2) dissemination or establishment of internal common knowledge of the said intelligence, and (3) development and implementation of a response action that involves the effective satisfaction of the established target audience [115].

The results of this chapter should be the obtainment of improved capabilities to adapt to changes in the business environment or to obtain a proactive decisionmaking ability to produce competitive advantages [120–122]. Hence, a company learns to acquire and develop new relevant knowledge and skills that will help it remain competitive in the market [115, 116, 123, 124].

### **4. Empirical case**

### **4.1 Methodology**

The methodology employed is exploratory by nature. This research uses the IBM SPSS version 14.0 statistical software, with a self-administered survey through Qualtrics platform. The survey considered three sub-scales that represent each of the three variables previously mentioned. The authors used a structured questionnaire, with closed questions on an 11-point Likert scale and questions regarding business characteristics. The scale considers that the most favorable response receives the highest score, while the least favorable response the lowest score.

The authors sent the survey to 580 potential participants, obtaining a response rate of 41.7%. Thus, the sample is composed of 242 executives in relevant positions in the decision-making process of industrial companies with offices in Chile. This last inclusion criterion used by the authors has the objective of ensuring that the respondents have experience within the industry. Most of the respondents had positions of management and corporate levels (56.2%) and professions related to engineering (64%). The main industrial sectors represented are the iron and steel industry (15.7%), distribution (15.3%), mining (14.9%), financial (14%), and agroindustry (12.8%). Most of the companies have clients from the national market as their main buyers (80.2%), with most of the surveyed respondents being mainly established in the central region of Chile (71.9%).

### **5. Results**

A confirmatory and exploratory analysis using AMOS was done to have access to the properties of latent variables. The relation of variables can be observed

**95**

**Table 1.** *Empirical results.*

**Industrial sector**

*Organizational Capabilities, Value Cocreation, and Marketing Innovation…*

with a 99% of confidence, KMO over 0.6, goodness of fit of data (<sup>χ</sup>

p < 0.001, IFI = 0.83, CFI = 0.823, NFI = 0.8, TLI = 0.8, PNFI = 0.670), reliability (AVE = 0.613; IVE = 0.980), and discriminant validity with a 95% of reliability. **Table 1** shows the general results declared by the responses in the different items. Based on the empirical data, the degree of progress in each of the analyzed variables (see **Table 1**) of the different sectors of the sample has been calculated. At a general level, the study shows an evaluation value of approximately 6 points ("Often"), which turns out to be regular with respect to the maximum of 11. The level of development is 54.5%, with respect to the potential of each variable according to the perception of the respondents. The relations and network management are the least perfected capability, while management and strategy development is

According to the results of this study (**Table 1**), the mining sector is the one that presents the best overall evaluation due to the sector placing great importance in considering long-term strategic planning. This in part is due to the "virtuous, inclusive and sustainable mining by 2035" plan. Nonetheless, there is still a long way to go in terms of collaboration. Regarding this point, the management of relations and networks is the factor in which the mining sector shows less development and in which the managers should emphasize their future strategies. This would allow them to increase the value proposition and get a more stable level of profitability in the long run.

The agroindustrial sector is worrisome regarding their relations and network management and market orientation. The companies of this sector require a greater focus on the external analysis of clients and competitors that would help them guide their plans toward innovation in marketing. This would allow them to increase their efficiency and effectiveness of their projects in those areas. In addition, data shows that the financial sector must work with special emphasis on management and strategic development in terms of collaboration. One of the lowest values obtained in this variable is on the establishment of collaboration as a source of competitiveness. At the variable level, the study shows that strategic focus makes possible improvement on organizational innovation capabilities. Without strategic value, the efforts and resources devoted to it will always be scarce. Hence, even though they possess the capabilities to develop initiatives successfully, in practice, this will not necessarily be true. It can be observed that the companies point out that the activities they do the most are to consider the costs in their planning, to encourage the

> **Relations and network management**

> > **α:0.843 σ:0.46** *k***:0.611**

**Market orientation**

> **α:0.869 σ:0.63** *k***:0.950**

**Management and strategic development**

> **α:0.920 σ:0.48** *k***:0.968**

*Self-elaboration; α, Cronbach's alpha; σ, standard deviation; k, standardized coefficient.*

Mining 6.9 6.1 7.0 Iron and steel 6.5 5.8 6.9 Distribution 6.5 5.5 6.5 Financial 5.6 6.3 6.2 Agroindustry 6.7 5.0 5.3 Others 6.9 5.9 6.7 Average 6.5 5.8 6.4

2

= 735,673,

*DOI: http://dx.doi.org/10.5772/intechopen.86061*

the most developed.

*Organizational Capabilities, Value Cocreation, and Marketing Innovation… DOI: http://dx.doi.org/10.5772/intechopen.86061*

*Modern Perspectives in Business Applications*

fies a series of specific actions around information [116].

resources and capabilities into a cohesive whole [119].

remain competitive in the market [115, 116, 123, 124].

established in the central region of Chile (71.9%).

**4. Empirical case**

**4.1 Methodology**

the lowest score.

of connection that leads to superior organizational performance [104]. This puts the concept of market orientation as an organizational cultural approach or as an integral part of the mission, vision, and values of a company [115]. It is important to note that the perspective from the conception of generation of intelligence identi-

These different approaches are considered as interrelated perspectives [117]. Strategic orientation will reflect a company's philosophy on how to conduct business through a set of deeply held values and beliefs that guide the company's attempt to achieve superior performance [118]. In addition, these values and beliefs define the resources to be used, transcend individual capabilities, and unify

Considering the concept of market orientation, there is a broad general consensus

that it is a combination of three critical dimensions [116]: (1) generation of intelligence on all the elements of the market (customers, competitors, and the environment), (2) dissemination or establishment of internal common knowledge of the said intelligence, and (3) development and implementation of a response action that

The results of this chapter should be the obtainment of improved capabilities to adapt to changes in the business environment or to obtain a proactive decisionmaking ability to produce competitive advantages [120–122]. Hence, a company learns to acquire and develop new relevant knowledge and skills that will help it

The methodology employed is exploratory by nature. This research uses the IBM SPSS version 14.0 statistical software, with a self-administered survey through Qualtrics platform. The survey considered three sub-scales that represent each of the three variables previously mentioned. The authors used a structured questionnaire, with closed questions on an 11-point Likert scale and questions regarding business characteristics. The scale considers that the most favorable response receives the highest score, while the least favorable response

The authors sent the survey to 580 potential participants, obtaining a response rate of 41.7%. Thus, the sample is composed of 242 executives in relevant positions in the decision-making process of industrial companies with offices in Chile. This last inclusion criterion used by the authors has the objective of ensuring that the respondents have experience within the industry. Most of the respondents had positions of management and corporate levels (56.2%) and professions related to engineering (64%). The main industrial sectors represented are the iron and steel industry (15.7%), distribution (15.3%), mining (14.9%), financial (14%), and agroindustry (12.8%). Most of the companies have clients from the national market as their main buyers (80.2%), with most of the surveyed respondents being mainly

A confirmatory and exploratory analysis using AMOS was done to have access

to the properties of latent variables. The relation of variables can be observed

involves the effective satisfaction of the established target audience [115].

**94**

**5. Results**

with a 99% of confidence, KMO over 0.6, goodness of fit of data (<sup>χ</sup> 2 = 735,673, p < 0.001, IFI = 0.83, CFI = 0.823, NFI = 0.8, TLI = 0.8, PNFI = 0.670), reliability (AVE = 0.613; IVE = 0.980), and discriminant validity with a 95% of reliability. **Table 1** shows the general results declared by the responses in the different items.

Based on the empirical data, the degree of progress in each of the analyzed variables (see **Table 1**) of the different sectors of the sample has been calculated. At a general level, the study shows an evaluation value of approximately 6 points ("Often"), which turns out to be regular with respect to the maximum of 11. The level of development is 54.5%, with respect to the potential of each variable according to the perception of the respondents. The relations and network management are the least perfected capability, while management and strategy development is the most developed.

According to the results of this study (**Table 1**), the mining sector is the one that presents the best overall evaluation due to the sector placing great importance in considering long-term strategic planning. This in part is due to the "virtuous, inclusive and sustainable mining by 2035" plan. Nonetheless, there is still a long way to go in terms of collaboration. Regarding this point, the management of relations and networks is the factor in which the mining sector shows less development and in which the managers should emphasize their future strategies. This would allow them to increase the value proposition and get a more stable level of profitability in the long run.

The agroindustrial sector is worrisome regarding their relations and network management and market orientation. The companies of this sector require a greater focus on the external analysis of clients and competitors that would help them guide their plans toward innovation in marketing. This would allow them to increase their efficiency and effectiveness of their projects in those areas. In addition, data shows that the financial sector must work with special emphasis on management and strategic development in terms of collaboration. One of the lowest values obtained in this variable is on the establishment of collaboration as a source of competitiveness.

At the variable level, the study shows that strategic focus makes possible improvement on organizational innovation capabilities. Without strategic value, the efforts and resources devoted to it will always be scarce. Hence, even though they possess the capabilities to develop initiatives successfully, in practice, this will not necessarily be true. It can be observed that the companies point out that the activities they do the most are to consider the costs in their planning, to encourage the


**Table 1.** *Empirical results.*

participation of different functional areas of the company in the development of a project, and to consider innovation in long-term strategic planning.

For its part, *relations and network management* were the worst evaluated variable according to the sample. It is interesting to note how companies have better results in the network items with clients than with other agents. This shows that companies are willing to cooperate with their clients with a short-term view oriented to sales but do not find it relevant to establish promises with other agents in the long term, which would allow them to establish continuous innovation projects over time. This short-term focus on products may impair the viability of long-term business relationships, where other factors such as networking and collaborative actions have a significant impact on results.

In terms of *market orientation*, the results show that the lowest scores come from companies investigating close to nothing on what their competitors do. Based on these results, it is possible to deduce that companies have a research process more focused to their own projects or problems than to surveillance mechanisms on what competitors do. For instance, agroindustrial sector, which was the worst ranked in this dimension. In addition, their values are significantly lower than the other sectors in the study.

### **6. Conclusions**

The chapter reveals that innovation in marketing is conceived as a process oriented to the market and the use of knowledge, which is modeled by the characteristics of the organizational culture, through a management that controls and assumes risks in its projects, often developing relevant activities collaborative in the process. The role of the degree of market orientation, collaboration, and strategic project management is highlighted as incident characteristics of the company's capacity to reconfigure its assets and compete in current, emerging, or mature businesses.

Currently, society is constantly evolving, so innovating is no longer a "nice to have," but it has become a necessity in companies. In this context, innovation must be considered activity in the company strategic axis, where its magnitude and focus should be supported in the organizational plan. Innovating should not be just having a brilliant idea; it is generating something that creates value for the market, the organization, and/or the other agents of interest. The company must be able to identify, anticipate, and characterize its own potential to formulate the best strategy for innovation in the future. A methodology must be established to innovate and how to structure strategically innovative processes.

Managers should question possible gaps in the positioning map of the sector, decide to cover them, and make them grow. To develop an innovative strategy, you must question the business in which our organization is located, how we develop our processes, and what we know about the market. Reflect on our client (current and potential); analyze our availability of resources, skills, and our ability to develop new, as well as how we relate to other agents of interest.

As a result, new businesses will not be discovered if they do not leave the security offered by the current ones. Innovation implies a need to be market oriented. When an organization makes the decision to innovate, it must have the ability to question how it does business and rethink it. Managers should look at new sources of their own ideas but also monitor innovation processes in their industries or in other industries, national or foreign. The key to success is not only in playing better than the competition, but in how an organization can effectively change the rules of the game.

However, having a look at strategic innovation and market orientation does not ensure success. The different mechanisms, networks, and relationships that

**97**

among others.

*Organizational Capabilities, Value Cocreation, and Marketing Innovation…*

facilitate the organization to carry out these processes must be taken into account. In this line, it is important to develop the capacity and corporate culture in the company to take risks, boost the commitment of employees, and empower them to

For the above to be possible, it is important to promote the sharing of information between the different lines of business. But this collaboration is not just about encouraging conversations but generating structured processes that allow interacting and giving support to each of the areas on relevant issues of the process, where the contribution of the top managers is essential. To link collaborative initiatives to larger business objectives, the manager must create a comprehensive and measurable strategy that responds to the complexities of the extended enterprise. It is therefore important to adopt a methodical and detailed approach to collaboration and innovation. Collaborative initiatives should be linked to high-level business objectives, with careful attention to risk profiles and tolerance levels throughout

However, collaboration must also extend beyond the company. The organiza-

In conclusion, the strategic innovation depends on the sector where the organization competes, the real needs of the client, and the competitive position of the same, bearing in mind all the support of resources that the organization has, because without the operation and efficiency of these is difficult to ensure its success. Managers are required to be in a constant state of contemplation of their company, from an internal and external point of view with a long-term focus. This approach makes possible the strategic management of innovation, which becomes

Then, this study opens new lines of research and helps establish guidelines in which managers in innovation or marketing could manage their relationships with stakeholders in a proactive and efficient manner. This chapter shows a better understanding of the opportunities and challenges of organizational capability in marketing innovation, and cocreation value is achieved, allowing the identification of specific issues that need to be developed at the company and country level. For instance, long-term competitiveness for any company will depend on its ability to comprehend the environment, integrate knowledge about competitors and consumers' needs, develop improvements, and manage the buying behavior of its customers. Furthermore, this business intelligence could be useful as a guide for businesspersons, politicians, managers, and researches,

tion is in constant interaction with other organizations and agents that have their own knowledge of the industry and, therefore, turn out to be components that can and should influence the strategic direction of innovation processes. There is no generic list of possible collaborating agents, not even from the same sector. Each organization must identify and prioritize all those groups that can contribute to innovate, understanding that these can change over time. The prioritization criteria are ponderable, adaptable, and unique. However, a proposal of criteria could include analyzing the following strategic variables: (1) capacity of influence or dependence (current and future), (2) interest in the commitment and willingness to participate, (3) knowledge of the organization and industry, (4) geographical dimensions, and (5) social context (organizational culture, legal restrictions, etc.). Finally, the company must define the collaboration model to be developed. There are different existing tools to facilitate a model of integration of the relationship with stakeholders with different management levels that can be modulated according to the different strategic variables

*DOI: http://dx.doi.org/10.5772/intechopen.86061*

propose ideas to innovate.

the company.

already raised.

increasingly essential in the company.

*Modern Perspectives in Business Applications*

sectors in the study.

**6. Conclusions**

participation of different functional areas of the company in the development of a

For its part, *relations and network management* were the worst evaluated variable according to the sample. It is interesting to note how companies have better results in the network items with clients than with other agents. This shows that companies are willing to cooperate with their clients with a short-term view oriented to sales but do not find it relevant to establish promises with other agents in the long term, which would allow them to establish continuous innovation projects over time. This short-term focus on products may impair the viability of long-term business relationships, where other factors such as networking and collaborative actions have a significant impact on results. In terms of *market orientation*, the results show that the lowest scores come from companies investigating close to nothing on what their competitors do. Based on these results, it is possible to deduce that companies have a research process more focused to their own projects or problems than to surveillance mechanisms on what competitors do. For instance, agroindustrial sector, which was the worst ranked in this dimension. In addition, their values are significantly lower than the other

The chapter reveals that innovation in marketing is conceived as a process oriented to the market and the use of knowledge, which is modeled by the characteristics of the organizational culture, through a management that controls and assumes risks in its projects, often developing relevant activities collaborative in the process. The role of the degree of market orientation, collaboration, and strategic project management is highlighted as incident characteristics of the company's capacity to reconfigure its assets and compete in current, emerging, or mature businesses. Currently, society is constantly evolving, so innovating is no longer a "nice to have," but it has become a necessity in companies. In this context, innovation must be considered activity in the company strategic axis, where its magnitude and focus should be supported in the organizational plan. Innovating should not be just having a brilliant idea; it is generating something that creates value for the market, the organization, and/or the other agents of interest. The company must be able to identify, anticipate, and characterize its own potential to formulate the best strategy for innovation in the future. A methodology must be established to innovate and

Managers should question possible gaps in the positioning map of the sector, decide to cover them, and make them grow. To develop an innovative strategy, you must question the business in which our organization is located, how we develop our processes, and what we know about the market. Reflect on our client (current and potential); analyze our availability of resources, skills, and our ability to

As a result, new businesses will not be discovered if they do not leave the security offered by the current ones. Innovation implies a need to be market oriented. When an organization makes the decision to innovate, it must have the ability to question how it does business and rethink it. Managers should look at new sources of their own ideas but also monitor innovation processes in their industries or in other industries, national or foreign. The key to success is not only in playing better than the competition, but in how an organization can effectively change the rules of the game. However, having a look at strategic innovation and market orientation does not ensure success. The different mechanisms, networks, and relationships that

how to structure strategically innovative processes.

develop new, as well as how we relate to other agents of interest.

project, and to consider innovation in long-term strategic planning.

**96**

facilitate the organization to carry out these processes must be taken into account. In this line, it is important to develop the capacity and corporate culture in the company to take risks, boost the commitment of employees, and empower them to propose ideas to innovate.

For the above to be possible, it is important to promote the sharing of information between the different lines of business. But this collaboration is not just about encouraging conversations but generating structured processes that allow interacting and giving support to each of the areas on relevant issues of the process, where the contribution of the top managers is essential. To link collaborative initiatives to larger business objectives, the manager must create a comprehensive and measurable strategy that responds to the complexities of the extended enterprise. It is therefore important to adopt a methodical and detailed approach to collaboration and innovation. Collaborative initiatives should be linked to high-level business objectives, with careful attention to risk profiles and tolerance levels throughout the company.

However, collaboration must also extend beyond the company. The organization is in constant interaction with other organizations and agents that have their own knowledge of the industry and, therefore, turn out to be components that can and should influence the strategic direction of innovation processes. There is no generic list of possible collaborating agents, not even from the same sector. Each organization must identify and prioritize all those groups that can contribute to innovate, understanding that these can change over time. The prioritization criteria are ponderable, adaptable, and unique. However, a proposal of criteria could include analyzing the following strategic variables: (1) capacity of influence or dependence (current and future), (2) interest in the commitment and willingness to participate, (3) knowledge of the organization and industry, (4) geographical dimensions, and (5) social context (organizational culture, legal restrictions, etc.). Finally, the company must define the collaboration model to be developed. There are different existing tools to facilitate a model of integration of the relationship with stakeholders with different management levels that can be modulated according to the different strategic variables already raised.

In conclusion, the strategic innovation depends on the sector where the organization competes, the real needs of the client, and the competitive position of the same, bearing in mind all the support of resources that the organization has, because without the operation and efficiency of these is difficult to ensure its success. Managers are required to be in a constant state of contemplation of their company, from an internal and external point of view with a long-term focus. This approach makes possible the strategic management of innovation, which becomes increasingly essential in the company.

Then, this study opens new lines of research and helps establish guidelines in which managers in innovation or marketing could manage their relationships with stakeholders in a proactive and efficient manner. This chapter shows a better understanding of the opportunities and challenges of organizational capability in marketing innovation, and cocreation value is achieved, allowing the identification of specific issues that need to be developed at the company and country level. For instance, long-term competitiveness for any company will depend on its ability to comprehend the environment, integrate knowledge about competitors and consumers' needs, develop improvements, and manage the buying behavior of its customers. Furthermore, this business intelligence could be useful as a guide for businesspersons, politicians, managers, and researches, among others.

*Modern Perspectives in Business Applications*

### **Author details**

Leslier Valenzuela-Fernández\* and Natacha Peñaloza-Briones Department of Business Administration, School of Economics and Business, University of Chile, Santiago, Chile

\*Address all correspondence to: lvalenzuela@unegocios.cl

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

**99**

*Organizational Capabilities, Value Cocreation, and Marketing Innovation…*

[10] Lundvall B, Maskell P. In: Clark G, Nahapiet J, Gertler M, editors. The Oxford Handbook of Economic GeographyNation states and economic development: From national systems of production to national systems of knowledge creation and learning. Oxford: Oxford University Press; 2000.

[11] Weerawardena J. Exploring the role of market learning capability in competitive strategy. European Journal

of Marketing. 2003;**37**(3/4):407

[12] Lin CYY, Chen MYC. Does innovation lead to performance? An empirical study of SMEs in Taiwan. Management Research News.

[13] Pappas LO, Kourouthanassis PE, Giannakos MN, Chrissikopoulos V. Explaining online shopping behavior with fsQCA: The role of cognitive and affective perceptions. Journal of Business Research. 2016;**69**(2):794-803

[14] Woodside AG. Embrace perform model: Complexity theory, contrarian case analysis, and multiple realities. Journal of Business Research. 2014;**67**(12):2495-2503

[15] Ernst H, Kahle HN, Dubiel A, Prabhu J, Subramaniam M. The antecedents and consequences of affordable value innovations for emerging markets. Journal of Product Innovation Management.

[16] Hunt SD, Morgan RM. The comparative advantage theory of competition. The Journal of Marketing.

Marketing. 1996;**60**:107-114

[17] Hunt SD, Morgan RM. The resourceadvantage theory of competition: Dynamics, path dependencies, and evolutionary dimensions. The Journal of

2015;**32**(1):65-79

1995;**59**(2):1-15

2007;**30**(2):115-132

pp. 353-372

*DOI: http://dx.doi.org/10.5772/intechopen.86061*

[1] Kotler P. A generic concept of marketing. Journal of Marketing.

[3] García JS. El marketing y su origen a la orientación social: Desde la perspectiva económica a la social. Los aspectos de organización y comunicación. Em Questão.

[2] AMA. AMA Educators' Proceedings: Enhancing Knowledge Development in Marketing. Chicago, IL: American Marketing Association; 2007. pp. 191-198

[4] Sheth JN, Gardner DN, Garrett DE. Marketing Theory: Evolution and Evaluation. New York: John Wiley &

[5] Kotler P, Keller K. Marketing Management. Pearson: Prentice Hall;

[6] Achrol RS, Kotler P. Frontiers of the marketing paradigm in the third millennium. Journal of the Academy of Marketing Science. 2012;**40**(1):35-52

[7] Martínez-López FJ, Merigó JM, Valenzuela-Fernández L, Nicolás C. Fifty years of the European Journal of Marketing: A bibliometric analysis. European Journal of Marketing.

[8] Holmlund M, Kowalkowski C, Biggemann S. Organizational behavior in innovation, marketing, and purchasing in business service contexts—An agenda for academic inquiry. Journal of Business Research.

[9] Pino C, Felzensztein C, Zwerg-Villegas AM, Arias-Bolzmann L. Nontechnological innovations: Market performance of exporting firms in South America. Journal of Business Research. 2016;**69**(10):4385-4393

2018;**52**(1/2):439-468

2016;**69**(7):2457-2462

**References**

1972;**36**:46-54

2011;**16**(1):61-77

Sons; 1988. p. 16

2006. p. 816

*Organizational Capabilities, Value Cocreation, and Marketing Innovation… DOI: http://dx.doi.org/10.5772/intechopen.86061*

### **References**

*Modern Perspectives in Business Applications*

**98**

**Author details**

provided the original work is properly cited.

University of Chile, Santiago, Chile

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

Department of Business Administration, School of Economics and Business,

Leslier Valenzuela-Fernández\* and Natacha Peñaloza-Briones

\*Address all correspondence to: lvalenzuela@unegocios.cl

[1] Kotler P. A generic concept of marketing. Journal of Marketing. 1972;**36**:46-54

[2] AMA. AMA Educators' Proceedings: Enhancing Knowledge Development in Marketing. Chicago, IL: American Marketing Association; 2007. pp. 191-198

[3] García JS. El marketing y su origen a la orientación social: Desde la perspectiva económica a la social. Los aspectos de organización y comunicación. Em Questão. 2011;**16**(1):61-77

[4] Sheth JN, Gardner DN, Garrett DE. Marketing Theory: Evolution and Evaluation. New York: John Wiley & Sons; 1988. p. 16

[5] Kotler P, Keller K. Marketing Management. Pearson: Prentice Hall; 2006. p. 816

[6] Achrol RS, Kotler P. Frontiers of the marketing paradigm in the third millennium. Journal of the Academy of Marketing Science. 2012;**40**(1):35-52

[7] Martínez-López FJ, Merigó JM, Valenzuela-Fernández L, Nicolás C. Fifty years of the European Journal of Marketing: A bibliometric analysis. European Journal of Marketing. 2018;**52**(1/2):439-468

[8] Holmlund M, Kowalkowski C, Biggemann S. Organizational behavior in innovation, marketing, and purchasing in business service contexts—An agenda for academic inquiry. Journal of Business Research. 2016;**69**(7):2457-2462

[9] Pino C, Felzensztein C, Zwerg-Villegas AM, Arias-Bolzmann L. Nontechnological innovations: Market performance of exporting firms in South America. Journal of Business Research. 2016;**69**(10):4385-4393

[10] Lundvall B, Maskell P. In: Clark G, Nahapiet J, Gertler M, editors. The Oxford Handbook of Economic GeographyNation states and economic development: From national systems of production to national systems of knowledge creation and learning. Oxford: Oxford University Press; 2000. pp. 353-372

[11] Weerawardena J. Exploring the role of market learning capability in competitive strategy. European Journal of Marketing. 2003;**37**(3/4):407

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2001;**27**(6):777-802

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[43] Wiersema F. The B2B Agenda: The current state of B2B marketing and a look ahead. Industrial Marketing Management. 2013;**42**:470-488

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[45] Emden Z, Calantone RJ, Droge C. Collaborating for new product development: Selecting the partner with maximum potential to create value. Journal of Product Innovation Management. 2006;**23**(4):330-341

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[115] Narver JC, Slater SF. The effect of a market orientation on business profitability. The Journal of Marketing.

[116] Kohli AK, Jaworski BJ. Market orientation: The construct, research propositions, and managerial

[117] Kirca AH, Jayachandran S, Bearden WO. Market orientation: A meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing.

implications. The Journal of Marketing.

[118] Gatignon H, Xuereb JM. Strategic orientation of the firm and new product performance. Journal of Marketing

[119] Day GS. The capabilities of marketdriven organizations. The Journal of

Noordewier T. A framework for marketbased organizational learning: Linking values, knowledge, and behaviour. Journal of the Academy of Marketing

[122] Westerlund M, Rajala R. Learning and innovation in inter-organizational network collaboration. Journal of Business and Industrial Marketing.

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Knowledge management and innovation

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[106] Boaventura JMG, Carnaúba AAC, Todeva E, Azevedo AC, Armando E. Governance structures and trust: A study of real estate networks. Journal on Chain and Network Science. 2016;**16**(2):157-170

[107] Nelson RR. US technological leadership: Where did it come from and where did it go? Research Policy. 1990;**19**(2):117-132

[108] Mehrabani SE, Shajari M. Knowledge management and innovation capacity. Journal of Management Research. 2012;**4**(2):164-177

[109] Wolfe RA. Organizational innovation: Review, critique and suggested research directions. Journal of Management Studies. 1994;**31**(3):405-431

[110] Van den Hooff B, Van Weenen FD. Committed to share: Commitment and CMC use as antecedents of knowledge sharing. Knowledge and Process Management. 2004;**11**(1):13-12

[111] Lavie D, Stettner U, Tushman ML. Exploration and exploitation within and across organizations. The Academy of Management Annals. 2010;**4**(1): 109-155

[112] Beck M, Schenker-Wicki A. Cooperating with external partners: The importance of diversity for innovation performance. European Journal of International Management. 2014;**8**(5):548-569

[113] Leiponen A, Helfat C. Innovation objectives, knowledge sources, and

the benefits of breadth. Strategic Management Journal. 2010;**31**:224-236

[114] Van Beers C, Zand F. R&D cooperation, partner diversity, and innovation performance: An empirical analysis. Journal of Product Innovation Management. 2014;**31**(2):292-312

[115] Narver JC, Slater SF. The effect of a market orientation on business profitability. The Journal of Marketing. 1990:20-35

[116] Kohli AK, Jaworski BJ. Market orientation: The construct, research propositions, and managerial implications. The Journal of Marketing. 1990;**54**(2):1-18

[117] Kirca AH, Jayachandran S, Bearden WO. Market orientation: A meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing. 2005;**69**(2):24-41

[118] Gatignon H, Xuereb JM. Strategic orientation of the firm and new product performance. Journal of Marketing Research. 1997;**34**(1):77-90

[119] Day GS. The capabilities of marketdriven organizations. The Journal of Marketing. 1994;**58**(4):37-52

[120] Calantone RJ, Cavusgil ST, Zhao Y. Learning orientation, firm innovation, and firm performance. Industrial Marketing Management. 2002;**31**(6):515-524

[121] Sinkula JM, Baker WE, Noordewier T. A framework for marketbased organizational learning: Linking values, knowledge, and behaviour. Journal of the Academy of Marketing Science. 1997;**25**(3):305-318

[122] Westerlund M, Rajala R. Learning and innovation in inter-organizational network collaboration. Journal of Business and Industrial Marketing. 2010;**25**(6):435-442

[123] Grinstein A. The relationships between market orientation and alternative strategic orientations. European Journal of Marketing. 2008;**42**(1/2):115-134

[124] Paladino A. Analyzing the effects of market and resource orientations on innovative outcomes in times of turbulenc. Journal of Product Innovation Management. 2008;**25**(6):577-592

**107**

**Chapter 8**

**Abstract**

in 2000s

Empowerment of the Sales Forces

This chapter discusses the importance of customer value orientation to achieve good results from the sales team. The text analyzes how the management of several variables in human resources is fundamental towards good performance of the sales force. Their behavior and attitude is essential in helping companies develop longterm profitable relationships with customers. Hence, by assessing employee perceptions on incentive policies, and the training they have received, positive impacts on job satisfaction and customer orientation can be found. The career stage of the sales force has a relevant effect on management decisions as the life cycle influences the expectations of the sales force, the type of training, the incentive policies, and the level of commitment to the organization. In order to achieve good performance, it is essential to consider the dynamic and changing context where the omnichannel variable has a high presence in the reality of the sales area. For this reason, this chapter presents a model that can contribute to the empowerment of the sales force.

Customer value-oriented management is a higher-level marketing approach in which the company places the customer at the center of the business, prioritizing its interaction with them to bring financial success and competitive advantages [1]. The philosophy bases itself on the premise that resources are scarce, and must therefore be carefully assigned to those who hold more value to the company, thus ensuring business success [2]. Hence, customer value-oriented management is a

Customer-oriented firms are willing to prioritize customer interests and develop business strategies aimed at understanding them and satisfying their needs [3]. This corporate philosophy is important to embrace as a better understanding of the clients can produce positive changes in portfolio management [4–6] and sales results [7, 8]. This is achieved by careful management of the sales force. In respect to the strategy, the former should increase customer-orientation by working on maintaining close relationships with them with the aim of getting information to create long term competitive advantages. Customer-oriented sales personnel should avoid conducting actions that artificially alters the interests of clients. This includes actions either, for the purpose of improving the likelihood of making an immediate sale [9]

*Leslier Maureen Valenzuela Fernández and* 

**Keywords:** sales force, empowerment, customer value orientation,

*Francisco Javier Villegas Pinuer*

sales force effectiveness and motivation

critical and relevant variable in the marketing field.

**1. Introduction**

### **Chapter 8**

*Modern Perspectives in Business Applications*

[123] Grinstein A. The relationships between market orientation and alternative strategic orientations. European Journal of Marketing.

[124] Paladino A. Analyzing the effects of market and resource orientations on innovative outcomes in times of turbulenc. Journal of Product Innovation Management.

2008;**42**(1/2):115-134

2008;**25**(6):577-592

**106**

## Empowerment of the Sales Forces in 2000s

*Leslier Maureen Valenzuela Fernández and Francisco Javier Villegas Pinuer*

### **Abstract**

This chapter discusses the importance of customer value orientation to achieve good results from the sales team. The text analyzes how the management of several variables in human resources is fundamental towards good performance of the sales force. Their behavior and attitude is essential in helping companies develop longterm profitable relationships with customers. Hence, by assessing employee perceptions on incentive policies, and the training they have received, positive impacts on job satisfaction and customer orientation can be found. The career stage of the sales force has a relevant effect on management decisions as the life cycle influences the expectations of the sales force, the type of training, the incentive policies, and the level of commitment to the organization. In order to achieve good performance, it is essential to consider the dynamic and changing context where the omnichannel variable has a high presence in the reality of the sales area. For this reason, this chapter presents a model that can contribute to the empowerment of the sales force.

**Keywords:** sales force, empowerment, customer value orientation, sales force effectiveness and motivation

### **1. Introduction**

Customer value-oriented management is a higher-level marketing approach in which the company places the customer at the center of the business, prioritizing its interaction with them to bring financial success and competitive advantages [1]. The philosophy bases itself on the premise that resources are scarce, and must therefore be carefully assigned to those who hold more value to the company, thus ensuring business success [2]. Hence, customer value-oriented management is a critical and relevant variable in the marketing field.

Customer-oriented firms are willing to prioritize customer interests and develop business strategies aimed at understanding them and satisfying their needs [3]. This corporate philosophy is important to embrace as a better understanding of the clients can produce positive changes in portfolio management [4–6] and sales results [7, 8].

This is achieved by careful management of the sales force. In respect to the strategy, the former should increase customer-orientation by working on maintaining close relationships with them with the aim of getting information to create long term competitive advantages. Customer-oriented sales personnel should avoid conducting actions that artificially alters the interests of clients. This includes actions either, for the purpose of improving the likelihood of making an immediate sale [9] or of generating a new sale in the foreseeable future. Workers and managers are motivated to protect their client's interests as this will be compensated by positive customer reciprocity (word-of-mouth, loyalty), which generates new customers hence greater value for stakeholders [10, 11].

This chapter discusses customer-oriented management as a fundamental approach to achieve sales volume and profitability. Through the literature review, authors analyze how the management of the sales force—focused on specific human resource variables—is relevant to achieve good performance from the sales team. This motivates sellers, satisfying them to continue contributing to the organizational goals. The authors have also specifically analyzed relevant variables such as incentive policies, training, motivation, and perception of the sales force regarding involvement and job satisfaction.

It is important to note the authors have raised the discussion regarding changes in the paradigms of the sales processes, and models of empowerment for the sales force. Sales have changed substantially in the last 15 years, product of digitalization which has become an ever more important factor in the field. As consequence, dynamism in company business models has flourished, actively taking into consideration new trends; for instance, the thorough breakdown of geographical barriers in relation to sales [12].

Since consumers are constantly changing and incorporating the new trends, they affect the way and time of consumption of goods and/or services. This takes into account that (currently) there are new methods and systems to encourage consumption, possibilities that did not exist a few years ago; for example, companies incorporate mobile applications to "activate" the consumption of their customers.

Hence, the way in which companies conduct the sales process should also be updated to this dynamism, where the costs of change for consumers are increasingly lower considering the range of supply and the underlying competitiveness.

### **2. Factors influencing sales force's effectiveness**

### **2.1 Customer value orientation**

Customer value can be defined as a subjective notion of an individual customer's judgment on the value of a product or service [1]. People's perceptions depends on sellers or workers who provide the service. Thus, managers can influence the customer-value-perception through worker management and human resource practices. Schneider [13] recognizes how this can increase the extent to which sales people care about customer service experience. This aspect is key as it helps create the foundations for employees to deliver corresponding customer service.

By understanding *sales people* as human resources, and taking into account human resource management practices, business profitability can increase through value-delivered to the customers. Stanton et al. [14] affirms that employee perception regarding the relevancy of service to business success, sustained with implemented human resource management practices, effectively affects the degree of the sales people's customer-orientation level.

Zoltners et al. [15] suggests that the sellers' skills, abilities, values and motivation influences customer behavior, having an impact on organizational performance. This indicates that the characteristics and attitudes of a worker will have an effect in customers' perception regarding their orientation.

According to Qualitas—Hispania [16], a company needs the sales force to understand the business, customers, trends, and market implications to develop customer orientation. This helps build and maintain good relations with the clients,

**109**

*Empowerment of the Sales Forces in 2000s DOI: http://dx.doi.org/10.5772/intechopen.83538*

the sales force.

**2.2 Incentive policies**

employment and social status [18].

of employee job satisfaction.

their productivity.

satisfaction perception.

the sales force to improve customer value orientation.

differentiating themselves from the competition. Another advantage of this method is that the company will better optimize resources thus ensuring proper interaction with its customers. Qualitas also states that it is crucial for a company to possess a sales force that accompanies the client to advise and listen to their concerns, formulate solutions, and to find ways to make profits. Thus, it is necessary to work with

Schneider [13] proposes that human resource management practices facilitate a more positive experience for sales people within the company, increasing the prospects to deliver quality-service. Hence, the chapter suggests that human resource management practices affects customer-value-orientation in the company through

Milkovich and Newman [17] notes that employee remuneration plays a key role in company-employee relationships, being the source of good results by the sales force. One component of remunerations are incentives, which come in the following frequent forms: commissions, bonuses, benefits, and non-monetary incentives. Special commissions and bonuses are important for workers, making them feel secure to their contributions to the organization by: placing them in a position to face financial burdens, setting their standard of living, achieving targets for

Many studies in the literature analyze the effects of incentive policies on management of sales [19, 20]. In regard to this, authors have discovered that among the affected elements the key ones are: low personnel rotation and increased sales productivity [21], positive changes in employee behavior [17], and positive changes in seller behavior—even during critical moments for companies—[22]. Other studies demonstrate that incentive policies must be a combination between monetary incentives and non-monetary incentives to impact intrinsic motivation [19, 23–25]. This has an effect on employee job satisfaction [26]. Hence, the *sales force's* perception regarding company incentive policies would be positively related to perception

Zoltners et al. [15] explains that incentive policies represent an investment greater than the sum aimed at advertising, affecting a company's financial benefits. For an incentive system to be effective it is crucial to be designed in accordance to the characteristics of an organization such as customer preference and buying behaviors and relevant changes in customer environment [27–30]. The effects of incentives on a company's profitability is obtained only when the remuneration policy is designed on a long term and consistent method [21, 23]. Thus, incentive policies become a key factor in management of sales since output—performed by the sales force—is linked to their performance, thus affecting

Good incentives policies should also improve worker performance, motivating them to align their behavior to the established goals to improve their salaries. When a company marketing strategy is customer-value-orientated, the sales force must devote considerable resources to fully adopt their roles and satisfy customer needs [31]. Jones et al. (2003) suggests that training, market information, and incentives are important artifacts to the sales force in managing their roles regarding customer orientation. According to the aforementioned evidence of previous studies, it is possible to conclude the following: Seller perception of a company's incentive policy would be positively related to their perception of customer-value-orientation regarding employee sales. Marking it more important than the sales force job

*Empowerment of the Sales Forces in 2000s DOI: http://dx.doi.org/10.5772/intechopen.83538*

differentiating themselves from the competition. Another advantage of this method is that the company will better optimize resources thus ensuring proper interaction with its customers. Qualitas also states that it is crucial for a company to possess a sales force that accompanies the client to advise and listen to their concerns, formulate solutions, and to find ways to make profits. Thus, it is necessary to work with the sales force to improve customer value orientation.

Schneider [13] proposes that human resource management practices facilitate a more positive experience for sales people within the company, increasing the prospects to deliver quality-service. Hence, the chapter suggests that human resource management practices affects customer-value-orientation in the company through the sales force.

### **2.2 Incentive policies**

*Modern Perspectives in Business Applications*

involvement and job satisfaction.

**2.1 Customer value orientation**

sales people's customer-orientation level.

effect in customers' perception regarding their orientation.

in relation to sales [12].

hence greater value for stakeholders [10, 11].

or of generating a new sale in the foreseeable future. Workers and managers are motivated to protect their client's interests as this will be compensated by positive customer reciprocity (word-of-mouth, loyalty), which generates new customers

This chapter discusses customer-oriented management as a fundamental approach to achieve sales volume and profitability. Through the literature review, authors analyze how the management of the sales force—focused on specific human resource variables—is relevant to achieve good performance from the sales team. This motivates sellers, satisfying them to continue contributing to the organizational goals. The authors have also specifically analyzed relevant variables such as incentive policies, training, motivation, and perception of the sales force regarding

It is important to note the authors have raised the discussion regarding changes in the paradigms of the sales processes, and models of empowerment for the sales force. Sales have changed substantially in the last 15 years, product of digitalization which has become an ever more important factor in the field. As consequence, dynamism in company business models has flourished, actively taking into consideration new trends; for instance, the thorough breakdown of geographical barriers

Since consumers are constantly changing and incorporating the new trends, they affect the way and time of consumption of goods and/or services. This takes into account that (currently) there are new methods and systems to encourage consumption, possibilities that did not exist a few years ago; for example, companies incorporate mobile applications to "activate" the consumption of their customers. Hence, the way in which companies conduct the sales process should also be updated to this dynamism, where the costs of change for consumers are increasingly

Customer value can be defined as a subjective notion of an individual customer's

judgment on the value of a product or service [1]. People's perceptions depends on sellers or workers who provide the service. Thus, managers can influence the customer-value-perception through worker management and human resource practices. Schneider [13] recognizes how this can increase the extent to which sales people care about customer service experience. This aspect is key as it helps create

By understanding *sales people* as human resources, and taking into account human resource management practices, business profitability can increase through value-delivered to the customers. Stanton et al. [14] affirms that employee perception regarding the relevancy of service to business success, sustained with implemented human resource management practices, effectively affects the degree of the

Zoltners et al. [15] suggests that the sellers' skills, abilities, values and motivation influences customer behavior, having an impact on organizational performance. This indicates that the characteristics and attitudes of a worker will have an

According to Qualitas—Hispania [16], a company needs the sales force to understand the business, customers, trends, and market implications to develop customer orientation. This helps build and maintain good relations with the clients,

the foundations for employees to deliver corresponding customer service.

lower considering the range of supply and the underlying competitiveness.

**2. Factors influencing sales force's effectiveness**

**108**

Milkovich and Newman [17] notes that employee remuneration plays a key role in company-employee relationships, being the source of good results by the sales force. One component of remunerations are incentives, which come in the following frequent forms: commissions, bonuses, benefits, and non-monetary incentives.

Special commissions and bonuses are important for workers, making them feel secure to their contributions to the organization by: placing them in a position to face financial burdens, setting their standard of living, achieving targets for employment and social status [18].

Many studies in the literature analyze the effects of incentive policies on management of sales [19, 20]. In regard to this, authors have discovered that among the affected elements the key ones are: low personnel rotation and increased sales productivity [21], positive changes in employee behavior [17], and positive changes in seller behavior—even during critical moments for companies—[22]. Other studies demonstrate that incentive policies must be a combination between monetary incentives and non-monetary incentives to impact intrinsic motivation [19, 23–25]. This has an effect on employee job satisfaction [26]. Hence, the *sales force's* perception regarding company incentive policies would be positively related to perception of employee job satisfaction.

Zoltners et al. [15] explains that incentive policies represent an investment greater than the sum aimed at advertising, affecting a company's financial benefits. For an incentive system to be effective it is crucial to be designed in accordance to the characteristics of an organization such as customer preference and buying behaviors and relevant changes in customer environment [27–30]. The effects of incentives on a company's profitability is obtained only when the remuneration policy is designed on a long term and consistent method [21, 23]. Thus, incentive policies become a key factor in management of sales since output—performed by the sales force—is linked to their performance, thus affecting their productivity.

Good incentives policies should also improve worker performance, motivating them to align their behavior to the established goals to improve their salaries. When a company marketing strategy is customer-value-orientated, the sales force must devote considerable resources to fully adopt their roles and satisfy customer needs [31]. Jones et al. (2003) suggests that training, market information, and incentives are important artifacts to the sales force in managing their roles regarding customer orientation. According to the aforementioned evidence of previous studies, it is possible to conclude the following: Seller perception of a company's incentive policy would be positively related to their perception of customer-value-orientation regarding employee sales. Marking it more important than the sales force job satisfaction perception.

### **2.3 Training**

Training is one tool that companies have to successfully acquire knowledge and skills for their members to perform better at their jobs. This can be done informally by introducing those who join the company into the company's defined working behavior, or formally by keeping the employee in continuous training. In different cultural contexts such as the United States, Europe [32], Asia [33], and Africa [34], company policies become crucial in firms that have applied them when compared to others that have not.

Thus, sales force training programs must be focused on raising employee ability and capabilities while also motivating them to improve their service delivery skills. This allows a company to claim that it has been providing training to their sales force to improve their motivation and involvement in their jobs. The perception of the sales force regarding training is positively related to employee perception of job involvement.

Schlesinger and Heskett [35] note that it is ideal for a company to decide to develop a customer-oriented philosophy. To this matter companies should provide training, resources, and good reward systems to support and motivate the sales force. Firms must also provide tools to generate an effective oriented customer value sales force. Babin and Boles [36] explain that the supply of key resources, such as equipment and training, is crucial to facilitate good employee performance. Koka and Hein [37] conclude that training encourages employees and that through this their work performance can improve. Kushnir et al. [38]; Longenecker [39]; Martin [40]; Stone [41] conclude with similar arguments, highlighting that a good training level can motivate employees to increase productivity and performance in their job. Empirical evidence supports the claims as training level is an important factor that influences the degree of customer orientation.

To this end marketing and sales training serve in maximizing customer lifetime value (CLV), which is understood as the present value of all future benefits generated by customers [42]. Valenzuela et al. [43] and Valenzuela and Villegas [44] empirically corroborate that the behavior of a sales force oriented to CLV is essential in increasing company customer equity. Thus, managers must train and closely monitor CLV orientation of the sales force in their duties. This establishes profitable long-term relationships with the clients with the greatest business potential.

A number of promising approaches that promote CLV-oriented behaviors among the sales force exist in the literature. One obvious approach focuses on CLV-oriented attitudes when hiring new employees. This means that applicants are screened in terms of their CLV orientation, which is developed through training, coaching, and incentive programs [34, 39, 40]. It is thus implied that the sales force should be educated on the importance of CLV orientation, and its relevance to them and the firm.

By observing CLV-oriented leadership styles, the sales force can learn CLVoriented attitudes from their supervisors [45]. Therefore, their perception regarding the company's provided training would be positively related to their perception regarding employee customer value orientation. This is more important to employee job involvement perception.

### **2.4 Job involvement and job satisfaction**

Employees with high degrees of job involvement will have more attention to their tasks and will feel that their jobs are a central aspect in their lives [27, 46]. Empirical evidence shows that job satisfaction depends on involvement, which is the degree to which individuals psychologically identify themselves to their work

**111**

*Empowerment of the Sales Forces in 2000s DOI: http://dx.doi.org/10.5772/intechopen.83538*

perception.

[25, 47, 48]. In this matter, job involvement has been found to be related to the efforts of any person to achieve his/her company business objectives and goals. These findings are based on several different studies regarding [49] absenteeism [23], degree of boredom, job satisfaction [4], and customer value orientation of an organization [50]. Hence, a sales force perception on employee job involvement

Rabinowitz and Hall's [51] model proposes a method where job involvement is part of employee disposition (employee's attitude toward their work), context (work environment), and interactions (employment effects). In addition, individuals who are more involved in their jobs tend to display higher levels of job skills

As authors believe that job involvement influences the attitudes of the employees, this is a critical factor for the quality of management sales and delivered-service to the customer. Therefore the sales force perceptions regarding a company's job involvement would be positively related to the perception of employee customervalue-orientation. This is more important than employee job involvement

Stanton's et al. [14] theory and evidence in the literature give credit to the idea that the level of customer-value-orientation possessed by a sales team also depends on job satisfaction. This is understood as a function of the perceived relationship between what one wants in a job and what is offered, thus involving all the characteristics of the job and its environment where sellers can feel more/less satisfaction. Therefore, if the degree of satisfaction is higher, the commitment to the organization and to the customer will be higher [53]. Empirical evidence supports that the sales force perceptions on employee job satisfaction is positively related to percep-

The concept of motivation is used to explain what causes certain behaviors in people. There are different visions both in the conceptual and in the empirical fields. Robbins [54] defines motivation as a willingness to exert a high level of effort towards organizational goals, conditioned by the capacity of the effort to satisfy some individual need, thus introducing the concept of objectives in the organizational scope. Johnston and Marshall [55] define motivation as the desire and willingness of sales people to spend their efforts on performance and achievement of results in a visible manner. Fu [56] defines motivation as an individual choice, as sellers cannot be motivated unless they want it. Hence, motivation represents a critical driver of work performance, generated by the impulses of the individual and by the environment that determines if the behavior is akin to satisfy a need,

According to the theory of expectations or VIE model [57], motivation is a cognitive representation that considers humans as a thinking and rational being focused on results or rewards. Thus, the actions of an individual are driven by the expected consequences according to their calculations and/or expectations. The VIE model is composed of individual desires toward specific rewards (Valencia), performance of activities, perception of the received rewards

(Instrumentality), and belief that certain behaviors will allow the acquirement of certain rewards (expectations). These will guide the efforts to complete the activity,

Valence is understood as the attractiveness, preference, indifference, or rejection of a result for a particular person. Strictly defined, it is the recognition that

performance, achievement of results, satisfaction, and valence [57].

would be positively related to perception of employee job satisfaction.

(Abutayeh and Al-Qatawneh [52]) and manage better their work.

tion of employee customer value orientation.

**3. Motivating the sales force**

objective, or goal.

### *Empowerment of the Sales Forces in 2000s DOI: http://dx.doi.org/10.5772/intechopen.83538*

*Modern Perspectives in Business Applications*

influences the degree of customer orientation.

Training is one tool that companies have to successfully acquire knowledge and skills for their members to perform better at their jobs. This can be done informally by introducing those who join the company into the company's defined working behavior, or formally by keeping the employee in continuous training. In different cultural contexts such as the United States, Europe [32], Asia [33], and Africa [34], company policies become crucial in firms that have applied them when compared to

Thus, sales force training programs must be focused on raising employee ability and capabilities while also motivating them to improve their service delivery skills. This allows a company to claim that it has been providing training to their sales force to improve their motivation and involvement in their jobs. The perception of the sales force regarding training is positively related to employee perception of job

Schlesinger and Heskett [35] note that it is ideal for a company to decide to develop a customer-oriented philosophy. To this matter companies should provide training, resources, and good reward systems to support and motivate the sales force. Firms must also provide tools to generate an effective oriented customer value sales force. Babin and Boles [36] explain that the supply of key resources, such as equipment and training, is crucial to facilitate good employee performance. Koka and Hein [37] conclude that training encourages employees and that through this their work performance can improve. Kushnir et al. [38]; Longenecker [39]; Martin [40]; Stone [41] conclude with similar arguments, highlighting that a good training level can motivate employees to increase productivity and performance in their job. Empirical evidence supports the claims as training level is an important factor that

To this end marketing and sales training serve in maximizing customer lifetime value (CLV), which is understood as the present value of all future benefits generated by customers [42]. Valenzuela et al. [43] and Valenzuela and Villegas [44] empirically corroborate that the behavior of a sales force oriented to CLV is essential in increasing company customer equity. Thus, managers must train and closely monitor CLV orientation of the sales force in their duties. This establishes profitable

long-term relationships with the clients with the greatest business potential. A number of promising approaches that promote CLV-oriented behaviors among the sales force exist in the literature. One obvious approach focuses on CLV-oriented attitudes when hiring new employees. This means that applicants are screened in terms of their CLV orientation, which is developed through training, coaching, and incentive programs [34, 39, 40]. It is thus implied that the sales force should be educated on the importance of CLV orientation, and its relevance to them

By observing CLV-oriented leadership styles, the sales force can learn CLVoriented attitudes from their supervisors [45]. Therefore, their perception regarding the company's provided training would be positively related to their perception regarding employee customer value orientation. This is more important to employee

Employees with high degrees of job involvement will have more attention to their tasks and will feel that their jobs are a central aspect in their lives [27, 46]. Empirical evidence shows that job satisfaction depends on involvement, which is the degree to which individuals psychologically identify themselves to their work

**2.3 Training**

others that have not.

involvement.

**110**

and the firm.

job involvement perception.

**2.4 Job involvement and job satisfaction**

[25, 47, 48]. In this matter, job involvement has been found to be related to the efforts of any person to achieve his/her company business objectives and goals. These findings are based on several different studies regarding [49] absenteeism [23], degree of boredom, job satisfaction [4], and customer value orientation of an organization [50]. Hence, a sales force perception on employee job involvement would be positively related to perception of employee job satisfaction.

Rabinowitz and Hall's [51] model proposes a method where job involvement is part of employee disposition (employee's attitude toward their work), context (work environment), and interactions (employment effects). In addition, individuals who are more involved in their jobs tend to display higher levels of job skills (Abutayeh and Al-Qatawneh [52]) and manage better their work.

As authors believe that job involvement influences the attitudes of the employees, this is a critical factor for the quality of management sales and delivered-service to the customer. Therefore the sales force perceptions regarding a company's job involvement would be positively related to the perception of employee customervalue-orientation. This is more important than employee job involvement perception.

Stanton's et al. [14] theory and evidence in the literature give credit to the idea that the level of customer-value-orientation possessed by a sales team also depends on job satisfaction. This is understood as a function of the perceived relationship between what one wants in a job and what is offered, thus involving all the characteristics of the job and its environment where sellers can feel more/less satisfaction. Therefore, if the degree of satisfaction is higher, the commitment to the organization and to the customer will be higher [53]. Empirical evidence supports that the sales force perceptions on employee job satisfaction is positively related to perception of employee customer value orientation.

### **3. Motivating the sales force**

The concept of motivation is used to explain what causes certain behaviors in people. There are different visions both in the conceptual and in the empirical fields. Robbins [54] defines motivation as a willingness to exert a high level of effort towards organizational goals, conditioned by the capacity of the effort to satisfy some individual need, thus introducing the concept of objectives in the organizational scope. Johnston and Marshall [55] define motivation as the desire and willingness of sales people to spend their efforts on performance and achievement of results in a visible manner. Fu [56] defines motivation as an individual choice, as sellers cannot be motivated unless they want it. Hence, motivation represents a critical driver of work performance, generated by the impulses of the individual and by the environment that determines if the behavior is akin to satisfy a need, objective, or goal.

According to the theory of expectations or VIE model [57], motivation is a cognitive representation that considers humans as a thinking and rational being focused on results or rewards. Thus, the actions of an individual are driven by the expected consequences according to their calculations and/or expectations.

The VIE model is composed of individual desires toward specific rewards (Valencia), performance of activities, perception of the received rewards (Instrumentality), and belief that certain behaviors will allow the acquirement of certain rewards (expectations). These will guide the efforts to complete the activity, performance, achievement of results, satisfaction, and valence [57].

Valence is understood as the attractiveness, preference, indifference, or rejection of a result for a particular person. Strictly defined, it is the recognition that

people have desires or needs. Valence can be positive, negative or indifferent depending on the benefit it provides, as well as the anticipated satisfaction of a result. A person who chooses or wishes to achieve a result is defined as positive valence (represented by +1); A person who refuses or refuses to reach a result is defined as negative valence (represented by −1); a the result that does not represent any interest for the person in question (or if he/she is indifferent to it) is represented with the value "0" [57].

Effort is the visible action of individuals who focus on a particular end. The goal is performance, and effort is an internal reaction that can be observed in the form of behaviors ranging from tasks, duties, and responsibilities (performance) [58]. The level of effort depends on the goal and on which individual wants to invest so much to achieve that particular goal or reward.

Performance is the behavior of an individual that is given in terms of their ability and qualities to perform a job, as well as the willingness to do so with an objective in mind [59]. Both effort and performance are uniquely different, but similar in the nature that both pursue an end. For instance, when an employee is tested for a position, it is understood that they will attempt to pass the test. In respect to this, passing the exam is the goal/objective, while the qualification obtained will be equivalent to the performance of the pursued goal.

According to the theory of expectations, sellers are subject to the influences of many personal and environmental factors. This theory explains that motivation is a process of choices made between different behaviors that are under the control of people. Employees will behave in a certain way if they want to receive a raise or other reward. The theory of expectation dates from several decades, finding itself present in the empirical representation of motivation. Hence, the human component in sales will continue to have a preponderant role; however, it will be increasingly moderated by new technologies, and by the evolution of the decision-making processes of the consumers.

An important factor highlighted by researchers and managers when considering the career of sellers is the life cycle that said careers have in the field. For instance, aging in the sales force means gaining more experience, accumulating more knowledge, and sharpening sales skills. Furthermore, as a person's family grows, financial obligations likely change. Consequently, younger and less experienced sellers may have different estimates of expectations and reward preferences than older and more experienced sellers. Sales managers and training professionals need to pay particular attention to the unique needs of each sales force team to find the best motivational strategies. **Table 1** identifies and conceptualizes the four stages of the sales force career: (1) exploration, (2) establishment, (3) maintenance and (4) disconnection [55].

The start of a seller's career is the exploration stage. At this stage they have less experience, possess little skill development, and are often not sure if selling is the right occupation for them. Thus, sellers in the exploration stage tend to have low expectations and estimates of instrumentality.

Sellers in the establishment stage are usually preoccupied with monetary and non-monetary incentives. These are relevant motivational factors that generate trust in them to be able to progress in the development of their careers.

Sellers in the maintenance stage (which generally happens at the age of 40) seek for different motivations such as caring of safeguarding their position and finding respect from their experience in the organization.

The disconnection stage is understood as the moment when sellers are approaching retirement and have lower levels of concerns (approaching 60 years of age). They no longer show an attachment to incentives, but can continue to be a contribution to the organization until they fully withdraw from their work. This process is

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**Stages of the seller's career** 

*Source: Johnston and Marshall [55].*

**Table 1.**

**development**

perceptions and needs of the suppliers.

more valuable such as bonuses and commissions.

evaluated by their managers and their clients.

taken in the sales process.

from the sales force themselves.

different for each provider, and companies must be aware of the signs of behavior,

**How to manage it**

Establishment Focus on financial incentives (bonuses, rewards)

rewards)

experience

Communicate company policies Deliver and level the team's sales skills

work efficiently and effectively Disconnection Consider them in the process of forming the sales teams delivering their

Deliver feedback in a constant and timely manner

Deliver your knowledge to sales force in training

Determine the most relevant non-monetary incentives (psychological

Consider their needs so that their motivation allows them to develop their

Exploration Focus on product knowledge

Maintenance Motivate through respect

*Stages of the sales force career and incentives related to their growth.*

Depending on the stage that a seller is in their career, a relevant strategy is required to determine the efficient way to motivate them. An example of this is that for new sales force members, feedback from their superiors and clients can be more valuable as they are in search of confidence and security in their career development. For sellers in the establishment stage, incentives of the extrinsic type are

Hence, knowing how managers and trainers influence motivation of their sales force is crucial to improving productivity. In general, sellers are constantly being

While the evaluation from clients is based on more subjective aspects such as the quality of attention, kindness, and cordiality, evaluation from headquarters is often merely objective and measured the number of clients, amounts of sales, and time

Thus, managers must ask themselves: Are the incentives and goals enough to motivate the sales force? Will this complex context be the real cause of the demotivation of the sales force? These questions must take into consideration that there is probably a high level of ignorance on the part of the managers or chief executives regarding what happens in the sales process, with little to no direct feedback coming

For instance, Fu [56] raises the theory of motivation as an action-reward analysis. Motivation in the sales force is much more likely to come from the constant wave of feedbacks they receive from very disconnected people. This produces a highly stressful environment due to the characteristics of their work, the pressure that customers sometimes exert, and being forced to solve problems without being

Thus, training professionals requires adjustment in communication and strate-

gies according to the different career stages of a sales force member. This best optimizes the effectiveness of their training intervention and attainment of compliance for the vendors. For sellers in the exploration stage, focus should be on product knowledge, company policies, and basic sales skills. Providing feedback in a timely manner is also critical for these rookie vendors to gain much needed experience.

responsible or possessing the resources to attend them properly [60].


### **Table 1.**

*Modern Perspectives in Business Applications*

sented with the value "0" [57].

processes of the consumers.

(4) disconnection [55].

expectations and estimates of instrumentality.

respect from their experience in the organization.

to achieve that particular goal or reward.

equivalent to the performance of the pursued goal.

people have desires or needs. Valence can be positive, negative or indifferent depending on the benefit it provides, as well as the anticipated satisfaction of a result. A person who chooses or wishes to achieve a result is defined as positive valence (represented by +1); A person who refuses or refuses to reach a result is defined as negative valence (represented by −1); a the result that does not represent any interest for the person in question (or if he/she is indifferent to it) is repre-

Effort is the visible action of individuals who focus on a particular end. The goal is performance, and effort is an internal reaction that can be observed in the form of behaviors ranging from tasks, duties, and responsibilities (performance) [58]. The level of effort depends on the goal and on which individual wants to invest so much

Performance is the behavior of an individual that is given in terms of their ability and qualities to perform a job, as well as the willingness to do so with an objective in mind [59]. Both effort and performance are uniquely different, but similar in the nature that both pursue an end. For instance, when an employee is tested for a position, it is understood that they will attempt to pass the test. In respect to this, passing the exam is the goal/objective, while the qualification obtained will be

According to the theory of expectations, sellers are subject to the influences of many personal and environmental factors. This theory explains that motivation is a process of choices made between different behaviors that are under the control of people. Employees will behave in a certain way if they want to receive a raise or other reward. The theory of expectation dates from several decades, finding itself present in the empirical representation of motivation. Hence, the human component in sales will continue to have a preponderant role; however, it will be increasingly moderated by new technologies, and by the evolution of the decision-making

An important factor highlighted by researchers and managers when considering the career of sellers is the life cycle that said careers have in the field. For instance, aging in the sales force means gaining more experience, accumulating more knowledge, and sharpening sales skills. Furthermore, as a person's family grows, financial obligations likely change. Consequently, younger and less experienced sellers may have different estimates of expectations and reward preferences than older and more experienced sellers. Sales managers and training professionals need to pay particular attention to the unique needs of each sales force team to find the best motivational strategies. **Table 1** identifies and conceptualizes the four stages of the sales force career: (1) exploration, (2) establishment, (3) maintenance and

The start of a seller's career is the exploration stage. At this stage they have less experience, possess little skill development, and are often not sure if selling is the right occupation for them. Thus, sellers in the exploration stage tend to have low

Sellers in the establishment stage are usually preoccupied with monetary and non-monetary incentives. These are relevant motivational factors that generate

Sellers in the maintenance stage (which generally happens at the age of 40) seek for different motivations such as caring of safeguarding their position and finding

The disconnection stage is understood as the moment when sellers are approaching retirement and have lower levels of concerns (approaching 60 years of age). They no longer show an attachment to incentives, but can continue to be a contribution to the organization until they fully withdraw from their work. This process is

trust in them to be able to progress in the development of their careers.

**112**

*Stages of the sales force career and incentives related to their growth.*

different for each provider, and companies must be aware of the signs of behavior, perceptions and needs of the suppliers.

Depending on the stage that a seller is in their career, a relevant strategy is required to determine the efficient way to motivate them. An example of this is that for new sales force members, feedback from their superiors and clients can be more valuable as they are in search of confidence and security in their career development. For sellers in the establishment stage, incentives of the extrinsic type are more valuable such as bonuses and commissions.

Hence, knowing how managers and trainers influence motivation of their sales force is crucial to improving productivity. In general, sellers are constantly being evaluated by their managers and their clients.

While the evaluation from clients is based on more subjective aspects such as the quality of attention, kindness, and cordiality, evaluation from headquarters is often merely objective and measured the number of clients, amounts of sales, and time taken in the sales process.

Thus, managers must ask themselves: Are the incentives and goals enough to motivate the sales force? Will this complex context be the real cause of the demotivation of the sales force? These questions must take into consideration that there is probably a high level of ignorance on the part of the managers or chief executives regarding what happens in the sales process, with little to no direct feedback coming from the sales force themselves.

For instance, Fu [56] raises the theory of motivation as an action-reward analysis. Motivation in the sales force is much more likely to come from the constant wave of feedbacks they receive from very disconnected people. This produces a highly stressful environment due to the characteristics of their work, the pressure that customers sometimes exert, and being forced to solve problems without being responsible or possessing the resources to attend them properly [60].

Thus, training professionals requires adjustment in communication and strategies according to the different career stages of a sales force member. This best optimizes the effectiveness of their training intervention and attainment of compliance for the vendors. For sellers in the exploration stage, focus should be on product knowledge, company policies, and basic sales skills. Providing feedback in a timely manner is also critical for these rookie vendors to gain much needed experience.

Sellers in the established stage should focus on financial incentives such as bonuses and psychological rewards in the form of recognition associated with performance and personal improvements. In retrospect, it is fundamental to show respect and recognition to sellers in the maintenance and disengagement stages. This implies that managers should take advantage of remembering that they are active workers who are valuable employees with a wealth of experience to share. Following this, turnover of the sales force can happen in an organic way by incorporating that experience into the sales training programs.

Although maintenance vendors respond positively to recognition, it is not the same for disconnection vendors. Sellers in the disconnection stage may be motivated by the opportunity to share their experience and *war stories* with other sales force members. Hence, one option to motivate them is to involve them in the same company sales training programs.

### **3.1 The sales force in the omnichannel context**

At present, the consumer intervenes in different stages of the sales process, according to their degree of involvement with the product and/or service. For some consumers, this process begins with the search for information through different information channels (digital, in person, reference groups, membership, among others). Brynjolfsson et al. [12] states that the differences perceived by consumers between online distribution channels and the face-to-face ones have been steadily disappearing.

In the case of consumers, for some this process begins in the evaluation of alternatives (since they have enough information and are not limited by their set of options at the beginning of this stage), while for others it begins at the purchase of an already selected product in some distribution channel (face-to-face, online or online inside the store).

Based on the aforementioned, companies should consider these changes in consumers in the formation of their sales teams and specifically, in the role of the sellers. In this context, the concept of omnichannel is becoming increasingly important in the business world; Cummins et al. [61] defines omnichannel in the field of sales as the synergistic integration of the points of contact of consumers and sellers. This interaction gives the opportunity to generate a unified brand experience for consumers, independent of the usual sales channels or platforms. Thus, sales no longer have a linear structure as people can be informed by many means, and can evaluate and buy in (or from) different locations. Furthermore, people participate in different instances of the sales process based on their degree of involvement in the purchase.

An important element within the omnichannel concept is the case of online sales, as it incorporates a new feature within the decision of purchase by the consumer such as reputation. Thompson and Haynes [62] explain that reputation becomes important as consumers now have much more information at their disposal than before to determine and/or establish a level of reliability regarding the place of purchase, and distribution channel among others. This comparative capability for the consumer in the decision-making process is based on the massification of online comparison sites that introduce a new scenario that greatly facilitates the process of evaluating alternatives for the consumer; where people can find comparison sites segmented by industry, types of services, products, among others. This becomes a relevant factor that affects the willingness to pay due to transparent information being provided in a simple and easy way to understand.

There is another important aspect that relates to reduction of information asymmetry and professionalization of purchase by the consumers. The concept

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in a given value proposition.

professional in their choices.

located?

that their consumers may have [61].

**3.2 Changing paradigms in selling**

contextual variables and characteristics.

of functionality of a product and/or service means that buyers are unconsciously concerned regarding the performance of delivery, and how they can verify the truth

For example, when a consumer is going to buy a drill for domestic use, the sellers can meet an occasional consumer who uses it sporadically to solve problems in the low frequency household, where the evaluation process of alternatives is preferable given by recommendations. However, there are worries regarding functionality such as duration, and convenience, among others. At the same time, the sellers can find another type of consumer that uses the product more intensively and with a more "professional" look even for domestic use, which considers other relevant variables such as performance, safety, more technical functionalities, and product reinforcement. Although one can see these consumers differently, they have a point in common; they both have a concept of "metric" behind their choices, either from a simple or a more technical aspect. Regardless, the consumers are becoming more

Nonetheless, the appearance and consolidation of a greater number of distribution channels generate a greater possibility of points of contact between companies and consumers. This implies that companies must increase the interconnection and compatibility between their strategies, as well as considering the different life cycles

So … What about the sellers in the omnichannel context in which the sale is

Within the context of the omnichannel, researchers find themselves faced with several key questions, such as: Does the need for a vendor diminish in the context where digital tools and distribution channels have proliferated enormously, helping more and more the sales process for the consumer? When a customer goes to a shop for a product, many times they will visually confirm how the product is whilst also already having decided to buy online. Thus, what elements does omnichanneling require to be successful and what role does the sales force play in that success?

In addition, omnichannel also affects the relationship between sales, consumers,

Sellers have different points of interaction to relate to a consumer, therefore, it is important to understand what role the seller must fulfill in the sales process [63]. The consumer considers that the seller's intervention in this stage is, in many occasions, a specific source of referential information on the decision making process. This means that the authors should not think that the seller ceases to have relevance, even if managers are wondering how to transform the role in this stage into the sales process. This means that managers must understand the role as a "consultant" rather than a sales force executive, with a greater level of specialization than usual. The seller must be able to deliver solutions and recommendations to the consumer rather than just information. Nevertheless, the seller's role can be influenced by

**Figure 1** shows this relationship; the type of market (customers or companies)

establish the complexity of the process and the knowledge level of the buyer. The characteristics of the product and/or service is relevant. A key element is the stage of the sales process (it is different for a seller to interact with an already informed customer who is looking to evaluate their decisions and alternatives,

and profitability. So what happens after a sale is made? Who takes charge of the customer? How is customer retention affected? What aspects of returns and profitability are modified? Is the client's life value altered? And although these questions

do not have a single answer, one thing is clear, the seller's role must evolve.

### *Empowerment of the Sales Forces in 2000s DOI: http://dx.doi.org/10.5772/intechopen.83538*

*Modern Perspectives in Business Applications*

company sales training programs.

disappearing.

the purchase.

online inside the store).

rating that experience into the sales training programs.

**3.1 The sales force in the omnichannel context**

Sellers in the established stage should focus on financial incentives such as bonuses and psychological rewards in the form of recognition associated with performance and personal improvements. In retrospect, it is fundamental to show respect and recognition to sellers in the maintenance and disengagement stages. This implies that managers should take advantage of remembering that they are active workers who are valuable employees with a wealth of experience to share. Following this, turnover of the sales force can happen in an organic way by incorpo-

Although maintenance vendors respond positively to recognition, it is not the same for disconnection vendors. Sellers in the disconnection stage may be motivated by the opportunity to share their experience and *war stories* with other sales force members. Hence, one option to motivate them is to involve them in the same

At present, the consumer intervenes in different stages of the sales process, according to their degree of involvement with the product and/or service. For some consumers, this process begins with the search for information through different information channels (digital, in person, reference groups, membership, among others). Brynjolfsson et al. [12] states that the differences perceived by consumers between online distribution channels and the face-to-face ones have been steadily

In the case of consumers, for some this process begins in the evaluation of alternatives (since they have enough information and are not limited by their set of options at the beginning of this stage), while for others it begins at the purchase of an already selected product in some distribution channel (face-to-face, online or

Based on the aforementioned, companies should consider these changes in consumers in the formation of their sales teams and specifically, in the role of the sellers. In this context, the concept of omnichannel is becoming increasingly important in the business world; Cummins et al. [61] defines omnichannel in the field of sales as the synergistic integration of the points of contact of consumers and sellers. This interaction gives the opportunity to generate a unified brand experience for consumers, independent of the usual sales channels or platforms. Thus, sales no longer have a linear structure as people can be informed by many means, and can evaluate and buy in (or from) different locations. Furthermore, people participate in different instances of the sales process based on their degree of involvement in

An important element within the omnichannel concept is the case of online sales, as it incorporates a new feature within the decision of purchase by the consumer such as reputation. Thompson and Haynes [62] explain that reputation becomes important as consumers now have much more information at their disposal than before to determine and/or establish a level of reliability regarding the place of purchase, and distribution channel among others. This comparative capability for the consumer in the decision-making process is based on the massification of online comparison sites that introduce a new scenario that greatly facilitates the process of evaluating alternatives for the consumer; where people can find comparison sites segmented by industry, types of services, products, among others. This becomes a relevant factor that affects the willingness to pay due to transparent

information being provided in a simple and easy way to understand.

There is another important aspect that relates to reduction of information asymmetry and professionalization of purchase by the consumers. The concept

**114**

of functionality of a product and/or service means that buyers are unconsciously concerned regarding the performance of delivery, and how they can verify the truth in a given value proposition.

For example, when a consumer is going to buy a drill for domestic use, the sellers can meet an occasional consumer who uses it sporadically to solve problems in the low frequency household, where the evaluation process of alternatives is preferable given by recommendations. However, there are worries regarding functionality such as duration, and convenience, among others. At the same time, the sellers can find another type of consumer that uses the product more intensively and with a more "professional" look even for domestic use, which considers other relevant variables such as performance, safety, more technical functionalities, and product reinforcement. Although one can see these consumers differently, they have a point in common; they both have a concept of "metric" behind their choices, either from a simple or a more technical aspect. Regardless, the consumers are becoming more professional in their choices.

Nonetheless, the appearance and consolidation of a greater number of distribution channels generate a greater possibility of points of contact between companies and consumers. This implies that companies must increase the interconnection and compatibility between their strategies, as well as considering the different life cycles that their consumers may have [61].

So … What about the sellers in the omnichannel context in which the sale is located?

### **3.2 Changing paradigms in selling**

Within the context of the omnichannel, researchers find themselves faced with several key questions, such as: Does the need for a vendor diminish in the context where digital tools and distribution channels have proliferated enormously, helping more and more the sales process for the consumer? When a customer goes to a shop for a product, many times they will visually confirm how the product is whilst also already having decided to buy online. Thus, what elements does omnichanneling require to be successful and what role does the sales force play in that success?

In addition, omnichannel also affects the relationship between sales, consumers, and profitability. So what happens after a sale is made? Who takes charge of the customer? How is customer retention affected? What aspects of returns and profitability are modified? Is the client's life value altered? And although these questions do not have a single answer, one thing is clear, the seller's role must evolve.

Sellers have different points of interaction to relate to a consumer, therefore, it is important to understand what role the seller must fulfill in the sales process [63]. The consumer considers that the seller's intervention in this stage is, in many occasions, a specific source of referential information on the decision making process. This means that the authors should not think that the seller ceases to have relevance, even if managers are wondering how to transform the role in this stage into the sales process. This means that managers must understand the role as a "consultant" rather than a sales force executive, with a greater level of specialization than usual. The seller must be able to deliver solutions and recommendations to the consumer rather than just information. Nevertheless, the seller's role can be influenced by contextual variables and characteristics.

**Figure 1** shows this relationship; the type of market (customers or companies) establish the complexity of the process and the knowledge level of the buyer. The characteristics of the product and/or service is relevant. A key element is the stage of the sales process (it is different for a seller to interact with an already informed customer who is looking to evaluate their decisions and alternatives,

**Figure 1.**

*Variables and characteristics that affect the seller's role. Source: Self-elaboration based on [61, 63].*

than a customer that has not researched information on what they want or need). Furthermore, the skills of the seller (personality, experience) are important in developing and exploiting their potential. **Figure 1** conceptualizes the importance of these relationships where these variables affect the development of the sales force [61, 63].

### **4. A model of empowerment for the sales force**

When exposing the questions about the role of the sales force, the big question becomes, what tools can the authors give to the sellers to be a contribution in the companies in the dynamic and changing context in which the market is located?

A first step is the motivation of the sales force, for this, the authors must consider three important variables: direction, intensity and persistence.

For sellers to be motivated, they must have a clear direction, that is, have guidelines that allow them to focus on his/her work. In addition, there must be intensity, as the effort it puts into the relationship of its work, as well as persistence, is measured through the perseverance it places in the development of its work [64]. All the aforementioned points means that the seller must use their efforts in the appropriate tasks; a better seller is not one who works more, but one that has a clear direction to perform their work. It is important how the authors work each of these points with the sellers.

It is important to note that all sellers are different, so their perceptions regarding the three mentioned elements are moderated by different aspects such as their personality, background, experiences, and knowledge, among others. As any type of perception, these could be changed through training and incentives. Therefore, an important factor in the stage of the sales force career, like all work careers, is a development cycle with different stages. When a sales force starts his/her career,

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intensity, and persistence of the seller.

**5. Conclusions**

**Figure 2.**

of performance that can be sustainable over time [56, 64].

view, the sales force mostly faces consultative and complex buyers.

they gain knowledge and accumulate a series of experiences that improves his/her skills as a sales force member from the professional side. At the personal level, his/ her needs grow as his/her family and financial stage is also becoming more demanding. Therefore, expectations and the type of compensation that they expect will also be different, so companies should be aware of these differences in the type of needs that sellers are presenting to find the best strategies and tactics of motivation in each particular case that helps the development and personal growth as well as the

*Scheme of empowerment of the sales force. Source: Self-elaboration based in [56, 64].*

In that context, the authors propose a scheme of empowerment for the sales force based on the seller's background, their development in time [56], and their relationship with the stages of the seller's career development [64]. **Figure 2** shows the importance of considering the seller's characteristics in their professional development and the connection with the incentives. This generates a combination

In general, the sales force receive continuous pressure from managers based on sales goals. This complex environment grounded on results and not good practices generates confusion, perverse incentives, and work stress in many sales teams. Additionally, the establishment of individual and group goals based on figures fosters a competitive and often uncomfortable environment even for the client. From the point of view of management, unrealistic goals generate frustration in sales teams. The changes that the client has experienced in their decision-making process, as well as the way they uses the sales channels, generate a complex maelstrom of management which is reflected in the disconnection of executives with the market and ignorance of the possible seasonality of sales. From the sellers' point of

Therefore, it becomes crucial for the sales force to become aware that customer value orientation (CVO) is essential to achieve efficient performance and long-term profitable customer relationships. Likewise, a leadership style on the part of senior management focused on customer value generates a positive perception of the sales

*Empowerment of the Sales Forces in 2000s DOI: http://dx.doi.org/10.5772/intechopen.83538*

### **Figure 2.**

*Modern Perspectives in Business Applications*

than a customer that has not researched information on what they want or need). Furthermore, the skills of the seller (personality, experience) are important in developing and exploiting their potential. **Figure 1** conceptualizes the importance of these relationships where these variables affect the development of the sales

*Variables and characteristics that affect the seller's role. Source: Self-elaboration based on [61, 63].*

When exposing the questions about the role of the sales force, the big question becomes, what tools can the authors give to the sellers to be a contribution in the companies in the dynamic and changing context in which the market is located? A first step is the motivation of the sales force, for this, the authors must con-

For sellers to be motivated, they must have a clear direction, that is, have guidelines that allow them to focus on his/her work. In addition, there must be intensity, as the effort it puts into the relationship of its work, as well as persistence, is measured through the perseverance it places in the development of its work [64]. All the aforementioned points means that the seller must use their efforts in the appropriate tasks; a better seller is not one who works more, but one that has a clear direction to perform their work. It is important how the authors work each of these

It is important to note that all sellers are different, so their perceptions regarding the three mentioned elements are moderated by different aspects such as their personality, background, experiences, and knowledge, among others. As any type of perception, these could be changed through training and incentives. Therefore, an important factor in the stage of the sales force career, like all work careers, is a development cycle with different stages. When a sales force starts his/her career,

**4. A model of empowerment for the sales force**

sider three important variables: direction, intensity and persistence.

**116**

force [61, 63].

**Figure 1.**

points with the sellers.

*Scheme of empowerment of the sales force. Source: Self-elaboration based in [56, 64].*

they gain knowledge and accumulate a series of experiences that improves his/her skills as a sales force member from the professional side. At the personal level, his/ her needs grow as his/her family and financial stage is also becoming more demanding. Therefore, expectations and the type of compensation that they expect will also be different, so companies should be aware of these differences in the type of needs that sellers are presenting to find the best strategies and tactics of motivation in each particular case that helps the development and personal growth as well as the intensity, and persistence of the seller.

In that context, the authors propose a scheme of empowerment for the sales force based on the seller's background, their development in time [56], and their relationship with the stages of the seller's career development [64]. **Figure 2** shows the importance of considering the seller's characteristics in their professional development and the connection with the incentives. This generates a combination of performance that can be sustainable over time [56, 64].

### **5. Conclusions**

In general, the sales force receive continuous pressure from managers based on sales goals. This complex environment grounded on results and not good practices generates confusion, perverse incentives, and work stress in many sales teams. Additionally, the establishment of individual and group goals based on figures fosters a competitive and often uncomfortable environment even for the client. From the point of view of management, unrealistic goals generate frustration in sales teams. The changes that the client has experienced in their decision-making process, as well as the way they uses the sales channels, generate a complex maelstrom of management which is reflected in the disconnection of executives with the market and ignorance of the possible seasonality of sales. From the sellers' point of view, the sales force mostly faces consultative and complex buyers.

Therefore, it becomes crucial for the sales force to become aware that customer value orientation (CVO) is essential to achieve efficient performance and long-term profitable customer relationships. Likewise, a leadership style on the part of senior management focused on customer value generates a positive perception of the sales

force team on the company, which produces greater satisfaction, involvement, and motivation. This would allow the creation of positive experiences that generate sustainable competitive advantages.

With regard to incentive policies, they play an important role in the relationship between sales force and senior management being an important factor to generate good results. Determining the best incentive structure (monetary, non-monetary) will depend, among other factors, on the career cycle of the sales force, the environment, and personal expectations. In that sense, employee empowerment has an important role as alignment in this level of organizations can lead to better performance [56].

Training is a valuable management tool for the growth of the sales force not only in technical aspects of their work, but also for the increase of their motivation and involvement with the development of their work. Managers must remember that the training process must take into account the profile of the vendor, the life cycle of the career, the type of market, the profile of the client portfolio, and the cultural context, among others. In addition, training generates a meeting space for the sales team that helps contribute to business growth and the organizational climate.

A consequence of the good management of the aforementioned variables is the degree of involvement and job satisfaction that the sales force has in a company. In that sense, how the employees can be empowered through the correct skills, abilities, and the support of the organization is key for their commitment and achieving corporate goals. This makes it easier for the sales force to have greater commitment to organizational objectives and greater customer orientation. That is, if the managers are able to achieve that when the company achieves its objectives, the sales force will feel these results as their own. This generates a greater sense of belonging and cohesion in the team, for which, each time the company obtains a good performance, this will also be for the sales force, thus generating a source of sustainable competitive advantage organically over time.

Taking into consideration the variables described and their effects on the development and performance of the sales force, managers must not forget the dynamism of the competitive and technological context in which find ourselves. In effect, consumers have countless alternatives when it comes to finding information, evaluating alternatives, and purchasing decisions (regardless of the degree of involvement that the purchase generates), which is why it is preponderant that the sales force have a high understanding of these phenomena, and have the skills to use information and communication technologies according to the field in which they operate. This nonetheless being relevant to the management of customer feedback and customer relations proactively and efficiently, with the aim at reducing uncertainty and anxiety with which the sales force coexists in their day to day.

The stage of a sales force member's career is a relevant point when it comes to generating a better interaction between a company and its customers. The authors must consider that sellers have different objectives according to their stage of development, and that these stages are influence by personal development (family and social) that generates different needs and expectations in the sellers. Therefore, it is necessary that the management and administration of these human needs be incorporated into the policies of incentives, guidelines, and guidelines of the sales force in the organizational field. This comes with the purpose of generating motivation, involvement, and job satisfaction, all relevant variables to achieve sustainability and sustainable performance in companies.

In this context, training professionals has the opportunity of contributing significantly to sales motivation, a fact generally ignored by executives and even coaches. The experience and frequent interaction that training professionals can establish with sales force allows them to be important motivators. However, coaches

**119**

**Author details**

Barcelona, Spain

provided the original work is properly cited.

\*Address all correspondence to: fvillegasp@fen.uchile.cl

Leslier Maureen Valenzuela Fernández1

University of Chile, Santiago, Chile

*Empowerment of the Sales Forces in 2000s DOI: http://dx.doi.org/10.5772/intechopen.83538*

work has to be done regardless of existing conditions.

to motivate the sales force.

best way.

need to recognize that they do not have line authority over sellers. Therefore, coaches should strive to build relationships with sales managers and work together

In relation to the aforementioned, it is important to take into consideration Burnout Syndrome, described as "the exhaustion of energy experienced by workers when they feel overwhelmed by the problems of others" [65]. This depletion of energy is the hidden demotivation and the open secret of the sales field since the

Thus, leading and motivating a sales force is one of the biggest challenges facing the sales managers in present times. This not only considers the economic motivation, but also takes into account empathy, teamwork, segmentation according to the life cycle of the career, needs and expectations, training, incentive policies, and knowledge of the work that needs to developed. Today, the empowerment of sales forces has an important place in satisfying the consumers' needs and wants in a

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

1 Department of Business Administration, School of Economics and Business,

2 Faculty of Economy and Enterprise, Autonomous University of Barcelona,

and Francisco Javier Villegas Pinuer2

\*

### *Empowerment of the Sales Forces in 2000s DOI: http://dx.doi.org/10.5772/intechopen.83538*

*Modern Perspectives in Business Applications*

sustainable competitive advantages.

competitive advantage organically over time.

ity and sustainable performance in companies.

mance [56].

force team on the company, which produces greater satisfaction, involvement, and motivation. This would allow the creation of positive experiences that generate

With regard to incentive policies, they play an important role in the relationship between sales force and senior management being an important factor to generate good results. Determining the best incentive structure (monetary, non-monetary) will depend, among other factors, on the career cycle of the sales force, the environment, and personal expectations. In that sense, employee empowerment has an important role as alignment in this level of organizations can lead to better perfor-

Training is a valuable management tool for the growth of the sales force not only in technical aspects of their work, but also for the increase of their motivation and involvement with the development of their work. Managers must remember that the training process must take into account the profile of the vendor, the life cycle of the career, the type of market, the profile of the client portfolio, and the cultural context, among others. In addition, training generates a meeting space for the sales team that helps contribute to business growth and the organizational climate.

A consequence of the good management of the aforementioned variables is the degree of involvement and job satisfaction that the sales force has in a company. In that sense, how the employees can be empowered through the correct skills, abilities, and the support of the organization is key for their commitment and achieving corporate goals. This makes it easier for the sales force to have greater commitment to organizational objectives and greater customer orientation. That is, if the managers are able to achieve that when the company achieves its objectives, the sales force will feel these results as their own. This generates a greater sense of belonging and cohesion in the team, for which, each time the company obtains a good performance, this will also be for the sales force, thus generating a source of sustainable

Taking into consideration the variables described and their effects on the development and performance of the sales force, managers must not forget the dynamism of the competitive and technological context in which find ourselves. In effect, consumers have countless alternatives when it comes to finding information, evaluating alternatives, and purchasing decisions (regardless of the degree of involvement that the purchase generates), which is why it is preponderant that the sales force have a high understanding of these phenomena, and have the skills to use information and communication technologies according to the field in which they operate. This nonetheless being relevant to the management of customer feedback and customer relations proactively and efficiently, with the aim at reducing uncer-

tainty and anxiety with which the sales force coexists in their day to day.

The stage of a sales force member's career is a relevant point when it comes to generating a better interaction between a company and its customers. The authors must consider that sellers have different objectives according to their stage of development, and that these stages are influence by personal development (family and social) that generates different needs and expectations in the sellers. Therefore, it is necessary that the management and administration of these human needs be incorporated into the policies of incentives, guidelines, and guidelines of the sales force in the organizational field. This comes with the purpose of generating motivation, involvement, and job satisfaction, all relevant variables to achieve sustainabil-

In this context, training professionals has the opportunity of contributing significantly to sales motivation, a fact generally ignored by executives and even coaches. The experience and frequent interaction that training professionals can establish with sales force allows them to be important motivators. However, coaches

**118**

need to recognize that they do not have line authority over sellers. Therefore, coaches should strive to build relationships with sales managers and work together to motivate the sales force.

In relation to the aforementioned, it is important to take into consideration Burnout Syndrome, described as "the exhaustion of energy experienced by workers when they feel overwhelmed by the problems of others" [65]. This depletion of energy is the hidden demotivation and the open secret of the sales field since the work has to be done regardless of existing conditions.

Thus, leading and motivating a sales force is one of the biggest challenges facing the sales managers in present times. This not only considers the economic motivation, but also takes into account empathy, teamwork, segmentation according to the life cycle of the career, needs and expectations, training, incentive policies, and knowledge of the work that needs to developed. Today, the empowerment of sales forces has an important place in satisfying the consumers' needs and wants in a best way.

### **Author details**

Leslier Maureen Valenzuela Fernández1 and Francisco Javier Villegas Pinuer2 \*

1 Department of Business Administration, School of Economics and Business, University of Chile, Santiago, Chile

2 Faculty of Economy and Enterprise, Autonomous University of Barcelona, Barcelona, Spain

\*Address all correspondence to: fvillegasp@fen.uchile.cl

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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[22] Murphy W. In pursuit of short-term goals: Anticipating the unintended consequences of using special incentives to motivate the sales force. Journal of Business Research. 2004;**57**:1265-1275. DOI: 10.1016/S0148-2963(02)00447-2

[23] Carlson D, Upton N, Reaman S. The impact of human resource practices and compensation design on performance: An analysis of familyowned SME's. Journal of Small Business Management. 2006;**44**:531-543. DOI: 10.1111/j.1540-627X.2006.00188.x

[24] Gneezy U, Rustichini A. Pay enough or don't pay at all. Quarterland Journal of Economics. 2000;**115**:791-810

[25] Kanungo R. Measurement of job and work involvement. Journal of Applied Psychology. 1982;**67**:341. DOI: 10.1037/0021-9010.67.3.341

[26] Gómez-Mejía L, Balkin D. La eficacia de individuales and agregados, Estrategias de compensación. Relaciones Laborales. 1989;**28**:431-445. DOI: 10.1111/j.1468-232X.1989.tb00736.x

[27] Elias S, Mittal R. The importance of supervisor support for a change initiative: An analysis of job satisfaction and involvement. International Journal of Organizational Analysis. 2011;**19**:305-316. DOI: 10.1108/19348831111173432

[28] Gerhart B, Milkovich G. Employee compensation: Research and practice. In: Dunnette MD, Hough LM, editors. Handbook of Industrial Psychology. Palo Alto, CA: Consulting Psychologists Press; 1992. pp. 481-569

[29] Montemayor E. Congruence between pay policy and competitive strategy in high-performing firms. Journal of Marketing. 1996;**22**:889-908. DOI: 10.1177/014920639602200605

[30] Rajagopalan N. Strategic orientations, incentive plan adoptions, and firm performance: Evidence from electric utility firms. Strategic Management Journal. 1997;**18**:761-785. DOI: 10.1002/(SICI)10970266(199711)1 8:10<761::AID-SMJ906>3.0.CO;2-2

[31] Jones E, Busch P, Dacin P. Firm market orientation and salesperson customer orientation: Interpersonal and intrapersonal influences on customer service and retention in business-tobusiness buyer–seller relationships. Journal of Business Research. 2003;**56**:323-340. DOI: 10.1016/ S0148-2963(02)00444-7

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*Modern Perspectives in Business Applications*

[1] Huber F, Herrmann A, Morgan R. Gaining competitive advantage through customer value oriented management. Journal of Consumer Marketing. 2001;**18**:41-53. DOI: 10.1108/07363760110365796

Journal of Personal Selling and Sales Management. 2009a;**29**:351-365. DOI:

[9] Saxe R, Weitz B. The SOCO scale: A measure of the customer orientation of sales force. Journal of Marketing Research. 1982;**19**:343-351. DOI:

[10] Kumar V, Venkatesan R, Reinartz W. Performance implications of adopting a customer-focused sales campaign. Journal of Marketing. 2008;**72**:50-68.

[11] Macintosh G. Customer orientation, relationship quality, and relational benefits to the firm. Journal of Services Marketing. 2007;**21**:150-157. DOI: 10.1108/08876040710746516

[12] Brynjolfsson E, Hu Y, Rahman M. Competing in the Age of Omnichannel Retailing. Cambirdge: MIT; 2013

[13] Schneider B. Organizational climate and culture. Pfeiffer. San Francisco:

[15] Zoltners A, Sinha P, Lorimer S. Sales force effectiveness: A framework for researchers and practitioners. Journal of Personal Selling and Sales Management.

[14] Stanton W, Buskirk R, Spiro R. Ventas. Conceptos, Planificación and Estrategias. 9ªa.ed. Colombia: McGraw

2008;**28**:115-131. DOI: 10.2753/

[17] Milkovich G, Newman J. Compensation. Irwin McGraw-Hill: Boston, Estados Unidos; 1996

[16] Qualitas—Hispania. Estudio del Nivel de Orientación al Cliente de la Empresa Española. España: Edición;

PSS0885-3134280201

10.2753/PSS0885-3134290404

10.2307/3151568

Jossey-Bass; 1990

Hill; 1997

2005

DOI: 10.1509/jmkg.72.5.50

[2] Valenzuela L, Mulki J, Jaramillo F. Impact of customer orientation,

10.1007/s10551-009-0220-z

role of institutional networking in the customer orientation-trust/ commitment-performance causal chain in China. Journal of the Academy of Marketing Science. 2008;**36**:202-214. DOI: 10.1007/s11747-007-0047-z

[4] Behruz A, Ghader V, Hasan G. Interdisciplinary. Journal of

2011;**3**:1332-1338

DIR3>3.0.CO;2-L

Contemporary Research in Business.

[5] Mulhern F. Customer profitability analysis: Measurement, concentration, and research. Journal of Interactive Marketing. 1999;**13**:25-40. DOI: 10.1002/ (SICI)1520-6653(199924)13:1<25::AID-

[6] Niraj R, Gupta M, Narasimhan C. Customer profitability in a supply chain. Journal of Marketing. 2001;**65**: 1-16. DOI: 10.1509/jmkg.65.3.1.18332

[7] Brown T, Mowen J, Donavan D, Licata J. The customer orientation of service workers: Personality trait effects on self- and supervisor performance ratings. Journal of Marketing Research.

2002;**39**:110-119. DOI: 10.1509/

[8] Jaramillo F, Grisaffe D. Examining the impact of servant leadership on salesperson's turnover intention.

jmkr.39.1.110.18928

inducements and ethics on loyalty to the firm: Customers' perspective. Journal of Business Ethics. 2010;**93**:277-291. DOI:

[3] Luo X, Hsu M, Liu S. The moderating

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## *Edited by Syed Abdul Rehman Khan and Selay Ilgaz Sümer*

This book is unique! Until now, purchasing and supply management books have had a primarily domestic outlook. However in this book, important issues related to sales management and supply management are handled with a modern perspective. This book has global vision tied into management principles based on an understanding of the sales management and basic job of purchasing and supply management, as all authors have held high-level positions directing the effort. Distinguished researchers from prestigious universities have written chapters and case studies from real-world events that challenge the brightest minds.

Published in London, UK © 2020 IntechOpen © Vasundhara Srinivas / unsplash

Modern Perspectives in Business Applications

Modern Perspectives in

Business Applications

*Edited by Syed Abdul Rehman Khan* 

*and Selay Ilgaz Sümer*