Customized Customer Loyalty By Robert Duboff And Lori Sherer
1. For estimates of the cost of sales calls, see Sales Force Compensation (Chicago: Dartnell's 27th Survey, 1992), and Sales & Marketing Management's 1993 sales manager's budget planner (June 28, 1993), pp. 3-75.
2. For more on sales force automation issues, see Doug Bartholomew, "Hard Sell?" Industry Week, March 1, 1999, www.industryweek.com; James LaVoy, "So, Did You Get What You Paid For?" Sales & Field Force Automation, February 1999, pp. 48-54.
3. Adapted from Robert N. McMurry, "The Mystique of Super-Salesmanship," Harvard Business Review, March-April 1961, p. 114. Also see William C. Moncrief III, "Selling Activity and Sales Position Taxonomies for Industrial Salesforces," Journal of Marketing Research, August 1986, pp. 261-70.
4. Sarah Lorge, "A Priceless Brand," Sales & Marketing Management, October 1998, pp. 102-10; "The Wall Street Transcript Publishes Retail Holiday Spending Report," PRNewswire, December 30, 1999, www.hoovers.com.
5. Christopher Power, "Smart Selling: How Companies Are Winning Over Today's Tougher Customer," Business Week, August 3, 1992, pp. 46-48.
6. For further reading, see John F. Martin and Gary S. Tubridy, "Major Account Management," in AMA Management Handbook, 3d ed. ed. John J. Hampton (New York: Amacom, 1994), pp. 3-25-3-27; Sanjit Sengupta, Robert E. Krapfel, and Michael A. Pusateri, "The Strategic Sales Force," Marketing Management, Summer 1997, pp. 29-34; Robert S. Duboff and Lori Underhill Sherer, "Customized Customer Loyalty," Marketing Management, Summer 1997, pp. 21-27; Tricia Campbell, "Getting Top Executives to Sell," Sales & Marketing Management, October 1998, p. 39.
7. Ira Sager, "Inside IBM: Internet Business Machines," Business Week, December 13, 1999, pp. EB20-EB38.
8. Luis R. Gomez-Mejia, David B. Balkin, and Robert L. Cardy, Managing Human Resources (Upper Saddle River, NJ: Prentice-Hall, 1995), pp. 416-18.
9. "What Salespeople Are Paid," Sales & Marketing Management, February 1995, pp. 30-31; Christopher Power, "Smart Selling: How Companies Are Winning Over Today's Tougher Customer," Business Week, August 3, 1992, pp. 46-48; William Keenan Jr., ed., The Sales & Marketing Management Guide to Sales Compensation Planning: Commissions, Bonuses & Beyond (Chicago: Probus Publishing, 1994).
10. George H. Lucas Jr., A. Parasuraman, Robert A. Davis, and Ben M. Enis, "An Empirical Study of Sales Force Turnover," Journal of Marketing July 1987, pp. 34-59.
11. See Charles Garfield, Peak Performers: The New Heroes of American Business (New York: Avon Books, 1986); "What Makes a Supersalesperson?" Sales & Marketing Management, August 23, 1984, p. 86; "What Makes a Top Performer?" Sales & Marketing Management, May 1989; and Timothy J. Trow, "The Secret of a Good Hire: Profiling," Sales & Marketing Management, May 1990, pp. 44-55.
12. David Mayer and Herbert M. Greenberg, "What Makes a Good Salesman?" Harvard Business Review, July-August 1964, pp. 119-25.
13. Robert L. Lindstrom, "Training Hits the Road," Sales & Marketing Management, June 1995, pp. 10-14.
14. Sales Force Compensation (Chicago: Dartnell's 25th Survey, 1989), p. 13.
15. Michael R. W. Bommer, Brian F. O'Neil, and Beheruz N. Sethna, "A Methodology for Optimizing Selling Time of Salespersons," Journal of Marketing Theory and Practice, Spring 1994, pp. 61-75.
16. See Thomas Blackshear and Richard E. Plank, "The Impact of Adaptive Selling on Sales Effectiveness Within the Pharmaceutical Industry," Journal of Marketing Theory and Practice, Summer 1994, pp. 106-25.
17. "Automation Nation," Marketing Tools, April 1997; Scott Hample, "Made to Order," Marketing Tools, August 1997.
18. "Are Salespeople Gaining More Selling Time?" Sales & Marketing Management, July 1986, p. 29.
19. John W. Verity, "Taking a Laptop on a Call," Business Week, October 25, 1993, pp. 124-25.
20. Charles Waltner, "Pall Corp. Wins Business with Info-Driven Web Site," Net Marketing, October 1996.
21. "The Second Annual SMA Customer Interaction Awards," Sales and Marketing Automation, January 2000, www.sma.com.
22. See Gilbert A. Churchill Jr., Neil M. Ford, and Orville C. Walker Jr., Sales Force Management: Planning, Implementation and Control, 4th ed. (Homewood, IL: Irwin, 1993). Also see Jhinuk Chowdhury, "The Motivational Impact of Sales Quotas on Effort," Journal of Marketing Research, February 1993, pp. 28-41; Murali K. Mantrala, Prabhakant Sinha, and Andris A. Zoltners, "Structuring a Multiproduct Sales Quota-Bonus Plan for a Heterogeneous Sales Force: A Practical Model-Based Approach," Marketing Science 13, no. 2 (1994): 121-44; Wujin Chu, Eitan Gerstner, and James D. Hess, "Costs and Benefits of Hard-Sell," Journal of Marketing Research, February 1995, pp. 97-102.
23. "What Motivates U.S. Salespeople?" American Salesman, February 1994, pp. 25, 30.
24. "A Gift for Rewards," Sales & Marketing Management, March 1995, pp. 35-36.
25. See Philip M. Posdakoff and Scott B. MacKenzie, "Organizational Citizenship Behaviors and Sales Unit Effectiveness," Journal ofMarketing Research, August 1994, pp. 351-63.
26. For further reading, see Dorothy Cohen, Legal Issues in Marketing Decision Making (Cincinnati, OH: South-Western, 1995) and Henry R. Cheeseman, Contemporary Business Law, 3rd edition (Upper Saddle River, NJ: Prentice-Hall, 2000).
27. For an excellent summary of the skills needed by sales representatives and sales managers, see Rolph Anderson and Bert Rosenbloom, "The World Class Sales Manager: Adapting to Global Megatrends," Journal of Global Marketing 5, no. 4 (1992): 11-22.
28. Some of the following discussion is based on W. J. E. Crissy, William H. Cunningham, and Isabella C. M. Cunningham, Selling: The Personal Force in Marketing (New York: John Wiley, 1977), pp. 119-29.
29. For additional reading, see Howard Raiffa, The Art and Science of Negotiation (Cambridge, MA: Harvard University Press, 1982); Max H. Bazerman and Margaret A. Neale, Negotiating Rationally (New York: Free Press, 1992); James C. Freund, Smart Negotiating (New York: Simon & Schuster, 1992); Frank L. Acuff, How to Negotiate Anything with Anyone Anywhere Around the World (New York: American Management Association, 1993); and Jehoshua Eliashberg, Gary L. Lilien, and Nam Kim, "Searching for Generalizations in Business Marketing Negotiations," Marketing Science 14, no. 3, pt. 1 (1995): G47-G60.
30. See Donald W. Dobler, Purchasing and Materials Management, 5th ed. (New York: McGraw-Hill, 1990).
31. Adapted from Roger Fisher and William Ury, Getting to Yes: Negotiating Agreement Without Giving In, rev. ed. (Boston: Houghton Mifflin, 1992), p. 57.
32. See Frank V. Cespedes, Stephen X. Doyle, and Robert J. Freedman, "Teamwork for Today's Selling, Harvard Business Review, March-April 1989, pp. 44-54, 58. Also see Cespedes, Concurrent Marketing: Integrating Product, Sales, and Service (Boston: Harvard Business School Press, 1995).
SECTION SIX
ft part three
Developing
Marketing
Strategies
The world Is rapidly shrinking with the advent of faster communication, transportation, and financial flows. Products developed in one country—Gucci purses, Mont Blanc pens, McDonald's hamburgers, Japanese sushi, Chanel suits, German BMWs—are finding enthusiastic acceptance in other countries. A German businessman may wear an Armani suit to meet an English friend at a Japanese restaurant who later returns home to drink Russian vodka and watch an American soap on TV.
Since 1969, the number of multinational corporations in the world's 14 richest countries has more than tripled, from 7,000 to 24,000. In fact, these companies today control one-third of all private-sector assets and enjoy worldwide sales of $6 trillion. International trade now accounts for a quarter of U.S. GDP, up from 11 percent in 1970.1
True, many companies have conducted international marketing for decades. Nestlé, Shell, Bayer, and Toshiba are familiar to consumers around the world. But global competition is intensifying: Domestic companies that never thought about foreign competitors suddenly find these competitors in their backyards. Newspapers report on Japanese victories over U.S. producers in consumer electronics, motorcycles, copying machines, cameras, and watches; the gains of Japanese, German, Swedish, and Korean car imports in the U.S. market; and the loss of textile and shoe markets to Third World imports. Many companies that are thought to be American firms are really foreign firms: Bantam Books, Baskin-Robbins Ice Cream, Firestone Tires, Dr. Pepper soft drinks, and Pillsbury cake mixes.
Although some U.S. businesses may want to eliminate foreign competition through protective legislation, the better way to compete is to continuously improve products at home and expand into foreign markets. Ironically, although companies need to enter and compete in foreign markets, the risks are high: shifting borders, unstable governments, foreign-exchange problems, corruption, and technological pirating.2 But we argue that companies selling in global industries have no choice but to internationalize their operations. To do this, they must make a series of decisions (Figure 6-1).
■ A global industry is an industry in which the strategic positions of competitors in major geographic or national markets are fundamentally affected by their overall global positions.3 A global firm is a firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
Global firms plan, operate, and coordinate their activities on a worldwide basis. Ford's "world truck" has a European-made cab and a North American-built chassis, is assembled in Brazil, and is imported into the United States for sale. Otis Elevator gets its door systems from France, small geared parts from Spain, electronics from Germany, and special motor drives from Japan, and uses the United States for systems integration. A company need not be large to sell globally. Small and medium-size firms can practice global niche-manship. Even a sports league can be global:
■ NBA When the NBA season is over, basketball's big stars don't head to Florida for rest and recreation. No, Shaquille O'Neal is off to South Korea, Karl Malone to Hong Kong, Allen Iverson to Chile. Deployed by the NBA and global sponsors Coca-Cola, Reebok, and McDonald's, these well-paid traveling salesmen hawk soda, sneakers, burgers, and basketball to legions of young fans. Boys in China wear Bulls gear because they all want to be like Michael Jordan. The NBA,
Because of the competing advantages and risks, companies often do not act until some event thrusts them into the international arena. Someone—a domestic exporter, a foreign importer, a foreign government—solicits the company to sell abroad. Or the company is saddled with overcapacity and must find additional markets for its goods.
p.ECIDING
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