CONTENTS
JSMAM VOLUME 10 , NUMBER 3 - SUMMER 2010
From the Editor
7
by Dan C. Weilbaker, Ph.D.
ACADEMIC ARTICLES
Auditing a Strategic Account Management Pilot: A Case Study in the
Marine Manufacturing Sector
8
By John Grant and Beth Rogers
The Utilization of Scripts in Business-to-Business Selling: An Assessment
29
By Robin Peterson and Sarah Fischbach
APPLICATION ARTICLES
Golf as a Sales Tool
44
By Dan C. Weilbaker
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©2010 By Northern Illinois University. All Rights Reserved. ISSN: 1463-1431
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Summer 2010
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EDITORIAL AND ADMINISTRATIVE STAFF
EDITOR—Dan C. Weilbaker, Ph.D.
McKesson Pharmaceutical Group
Professor of Sales
Department of Marketing
Northern Illinois University
dweilbak@niu.edu
EUROPEAN EDITOR—Kevin Wilson
Sales Research Trust
Peyrenegre
47350 Labretonie
France
Kevin@sales-research-trust.org
ASSISTANT—Joey Lata
Administrative Assistant
Professional Sales Program
Department of Marketing
Northern Illinois University
jlata@niu.edu
Vol.. 10 No. 3
Journal of Selling & Major Account Management
EDITORIAL BOARD
Ramon A. Avila
Ball State University
Terri Barr
Miami University—Ohio
Jim W. Blythe
University of Glamorgan
Pascal Brassier
ESC Clermont - Graduate School of Management
Steven Castleberry
University of Minnesota—Duluth
William L. Cron
Texas Christian University
Laura Cuddihy
Dublin Institute of Technology
René Y. Darmon
ESSEC Business School
Dawn R. Deeter-Schmelz
Kansas State University
Sean Dwyer
Louisiana Tech University
Paolo Guenzi
SDA Bocconi
John Hansen
University of Alabama—Birmingham
Jon M. Hawes
Indiana State University
Earl D. Honeycutt
Elon University
Thomas N. Ingram
Colorado State University
Mark C. Johlke
Bradley University
Buddy LaForge
University of Louisville
Terry W. Loe
Kennesaw State University
Richard McFarland
West Virginia University
Northern Illinois University
Daniel H. McQuiston
Butler University
Peter Naude
Manchester Business School
Stephen Newell
Western Michigan University
Nikolaos Panagopoulos, Ph.D.
Athens University of Economics & Business
Robert Peterson
Northern Illinois University
Nigel F. Piercy
University of Warwick
Richard E. Plank
University of South Florida, Lakeland
Ellen Bolman Pullins, PhD
University of Toledo
David Reid
Bowling Green State University
Gregory A. Rich
Bowling Green State University
Rick Ridnour
Northern Illinois University
Elizabeth Rogers
Portsmouth Business School
Charles Schwepker, Jr.
Central Missouri State University
C. David Shepherd
Georgia Southern University
Mary Shoemaker
Weidner University
William A. Weeks
Baylor University
Michael R. Williams
Oklahoma City University
John Wilkinson
University of South Australia
Frederick Hong Kit Yim
Hong Kong Baptist University
Summer 2010
From the Editor
The Journal of Selling & Major Account Management is proud to provide the
following academic and practitioner articles to our loyal readers. The journal has
the goal of bringing academic research and application articles in an attempt to
enlighten salespeople, sales managers and academics on issues important to all.
Before I provide my comments on this issue, I want to acknowledge the
generous donation made by a person who wishes to remain anonymous. This person felt so
strongly that what JSMAM was doing to provide practical applications of research finding that he
wanted to help the journal financially. Besides subscription income, support from USCA, this is a
new alternative to keeping the journal solvent.
In this issue, one of the authors in the first academic article is a veteran author with JSMAM.
Along with her co-author, they examine a single industry to investigate the complexity of
strategic account management globally.
The second academic article examines a sales process (scripts) that have been employed in one
way or another for decades. This article proposes that scripts can be useful to salespeople, as well
as training in B-T-B sales in order to increase performance of the sales force.
The sole application article in this issue is provided to assist salespeople who have the
opportunity to use golf as a vehicle to interact with customers. In the article Golf as Sales Tool,
the author defines a process for conducting business while playing golf. The article offers a three
step process to guide salespeople in developing a business relationship.
Our continued thanks also go to the University Sales Center Alliance for their financial support to
help the journal while we build our subscriber base. Our thanks also go to the dedicated members
of the Editorial Review Board and our ad hoc reviewers.
Dan C. Weilbaker, Ph.D.
Editor, The Journal of Selling & Major Account Management,
McKesson Pharmaceutical Group Professor of Sales,
Northern Illinois University
Vol.. 10 No. 3
8
Journal of Selling & Major Account Management
Auditing a strategic account management pilot:
a case study in the marine manufacturing sector
By John Grant and Beth Rogers
This is a methodological paper demonstrating the process of applying academic research in the audit of a
strategic account management pilot in a global company in the marine design, systems and services
sector. A review of the academic literature on best practice in strategic account management, included in
this paper, was used as the basis for an in-company multi-method research project to review the pilot
and identify enhancements to the programme for the next stage of its roll-out. The way that the
company built on the literature to verify the best practice framework identified is discussed. The
framework identified here, and the primary research methods to determine perceptions of the pilot,
proved to be a useful approach to auditing a strategic account management programme. These findings
are based on a single company case study. This paper contributes a case study of the process of auditing
a strategic account management pilot. This contributes a case of using theory in practice to the
important body of literature on strategic account management in the particularly interesting context of
an industry sector badly hit by the 2008-2010 recession.
INTRODUCTION
Thirty years ago Ford (1980) first promoted the
concept that, in business-to-business markets,
dedicated professionals could be in charge of
developing the business relationship with each
key customer. Favourable results from relational
approaches in business-to-business markets were
observed in an extensive longitudinal study by
Kalwani & Narayandas (1995). More recently, it
has been recognised that the relationship/
account manager is not enough, the
infrastructure framework for account
management and the processes that undermine
relationships with strategic customers are critical
(Birkenshaw et al, 2001; Shi et al, 2005).
Suppliers wishing to succeed with complex
global customers need to co-ordinate an efficient
flow of information and operations across all
their interactions worldwide. Nowhere does this
seem more applicable than for a global company
operating in the marine design, systems and
services sectors.
Northern Illinois University
Account management has become an
increasingly important business-to-business
marketing approach (Millman & Wilson, 1995;
McDonald et al, 1997; Homburg et al, 2002).
Driven by highly competitive global markets,
rising customer demands, price pressure from
commoditisation and the challenge of rapid
technological change, many suppliers have seen
account management as a necessary foundation
for customer retention (Ryals et al, 2006; Yip &
Bink, 2007). The increase in professionalised
purchasing has also been identified as a
significant stimulus for improvement in
suppliers’ approach to strategic customers
(Piercy, 2006, 2008; Rogers, 2007). Woodburn
& Ryals (2008) have highlighted positive
antecedents for account management, such as
access to strategic partnerships and engagement
in joint innovation.
Nevertheless, some organisations have found it
difficult to implement key account management
and make a permanent change from treating all
Summer 2010 9
Academic Article
sales as transactional (Homburg et al, 2002). In
recognition of this, any company seeking to
achieve best practice in global account
management is likely to approach the
introduction and enhancement of its account
management programme with considerable
analysis and careful planning. This paper
discusses the method adopted by a major ship
design, ship systems and marine services
solutions company in establishing a benchmark
for best practice in its account management
approach which utilised both academic sources
and extensive internal research.
THE CONTEXT OF THIS CASE
For a company in the shipbuilding and shipping
sector, operations are global. Major suppliers to
the marine and shipbuilding industries have to
deal with a few larger, more powerful shipyards,
and a great number of new emerging yards in the
Far East, particularly China (Stopford, 2009).
Many ship owners’ vessel operations are globally
distributed, and the emergence of several large
ship-owning clients (through merger and
acquisition) has initiated requests for more
globally integrated relationships with key
suppliers over the vessel lifetime, from the
conception of vessel design. Interviews with
leading authors on account management
confirmed that there are probably no previous
studies of GAM in this sector.
This study was undertaken during a major
recession. The global shipbuilding market had
crashed from over 6,000 vessels being completed
in 2007 to virtually none in the first quarter of
2009 (Stopford, 2008; 2009; Clarksons, 2009).
These circumstances demanded short term
survival tactics. The challenge was to keep the
global account management programme alive as
a medium to long-term approach, in the midst of
the shorter-term focus. Kalwani & Narayandas
(1995) found in their empirical, longitudinal
study spanning the early 1990s recession that
account management is even more important in
a period of economic contraction, and leading
authors reported similar experiences from their
industry contacts.
The aim of the first-named author was to analyse
the operation of the case study company’s
Strategic Account Management programme in
the light of prior literature, contemporary
academic thinking and research findings,
practitioner best-practise and known customer
requirements. The first named author designed
a comprehensive combination of research
sources starting with a review of academic
papers, theses, case studies, conference
proceedings and books. The literature review
was the basis for the “best practice” framework,
and subsequent methods were designed to
compare the pilot with best practice. The
content of this framework, discussed below, is
relevant to the comprehensive approach taken
by the case study company to ensure the future
success of their strategic account programme.
BUILDING A BEST
FRAMEWORK FROM
SOURCES
PRACTICE
ACADEMIC
In the first instance, the first-named author
traced frequently cited literature that identified
the value of strategic account management as a
business approach, and global account
management as a specific variant. Some of the
earliest texts included Fiocca (1982) and Dwyer,
Schurr & Oh (1987) who established the
existence of different kinds of close relationships
in business-to-business markets, some of which
are strategically interdependent, and Kalwani &
Narayandas (1995), who demonstrated that
suppliers with long-term close collaborative
relationships with strategic accounts produce
higher profitability, higher revenues, lower costs,
Vol. 10, No. 3
10
Journal of Selling & Major Account Management
and reduced risks.
There are a number of texts discussing the
antecedents for key account management
programmes (e.g. Brehmer & Rehme, 2009),
with Woodburn & Ryals (2008) being notably
comprehensive in looking at external and
internal, positive and negative. Global account
management has been examined specifically and
found to have its own context – globalisation in
an industry and global purchasing by customers
drives suppliers to provide a global account
management approach (Millman, 1996;
Montgomery et al, 2002; Shi et al, 2010). Some
researchers have also addressed how key
accounts evolve (Millman & Wilson, 1995) or are
selected (Fiocca, 1982, McDonald et al, 1997).
For the purposes of this case, the next focus of
the literature search was on the characteristics of
successful global account management (See
Table 1). Two texts (Ryals et al, 2006; Yip &
Bink, 2007) were chosen as the foundation for
the audit framework, Ryals et al was particularly
comprehensive in its coverage of success factors
linking account management to company
performance, based on empirical research. Yip
& Bink addressed the integration of account
management across complex global companies,
such as the case study company, Wärtsilä. To
strengthen the best practice framework, the
authors also searched independently for texts on
aspects of account management that provided
more specific evidence for each of its categories.
This also ensured that the subsequent primary
research could contain relevant detail and test
for issues and moderating factors. Support for
particular success factors was gathered from
other papers (see table below).
The
characteristics of best practice have been
reorganized and clustered into strategic factors
(core items) and the operational factors (support
structure), which is equally important and often
Northern Illinois University
overlooked in practice. The characteristics of
“core” items were determined on the basis of the
strategic building blocks necessary for a
judgement of the an account management pilot.
The “support structure” reflected the success
factors necessary for sustaining global account
management over time.
STRATEGIC FACTORS (ESSENTIAL
CORE)
Five strategic success factors were derived from
the two key texts: a business case for GAM,
account manager selection, focus on value,
account selection and account planning.
The Business Case
The value of what was then usually called
“national account management” was established
by Stevenson (1981). Since Kalwani &
Narayandas’ (1995) positive findings from a
longitudinal study, other researchers have argued
that strategic account management should lead
to better business results, as it represents a
focused application of resources (e.g. McDonald
et al, 2000). Business growth and cost reduction
benefits arise from adopting key account
management, to both suppliers and to the
customers (Ryals & Holt, 2007; Smyth & Fitch,
2009). Jones et al (2009) reiterate the connection
between customer relationship outcomes and
firm performance. Ryals & Rogers (2006)
advocated supplier-customer jointly defined
metrics and co-monitoring of performance to
ensure sustained performance.
Any business would be expected to go into an
investment with expectations of gain, but the
literature also reveals the risks that should be
taken into account in an audit of a strategic
account management pilot. Benefits may not be
realised if companies implement some form of it
simply as a market requirement for survival in an
Summer 2010 11
Academic Article
Table 1. Literature Review: Characteristics of Successful Global Account Management
Additional key text
Type of study
Kalwani and Narayandas, (1995)
Empirical; longitudinal
Selection of suitable global account
managers
Georges and Eggert (2003)
Empirical, mixed
methods
Value-based targets for global acounts
Ryals and Humphries (2007)
Case studies
Clearly identified global account
(selection criteria)
Woodburn and McDonald (2001)
Qualitative
Individual account plans
Ryals and Rogers (2007)
Qualitative
Infrastructure support for GAM
Colleague support
Infrastructure/process
Workman et al, 2003
Gosselin and Bauwen (2006)
Empirical
Empirical
Executive support
Customer focus
Homburg et al (2002)
Helander and Möller (2008)
Empirical
Case studies
ASPECTS OF BEST PRACTICE DERIVED FROM Ryals, Davies, Bruce,
2006; Yip and Bink
Essential Core
The business case for strategic account
management:
increasingly complex business environment (a
hygiene factor), rather than any real
differentiator (Wengler et al, 2006). If a strategic
account management programme is poorly
organised, or the wrong accounts are being overserviced, a company faces significant costs from
re-structuring and re-training, with no associated
guarantee of a higher return (Ryals et al, 2006).
Like most initiatives that offer return, KAM
brings with it significant risks, such as overfocusing on too few customers (Piercy & Lane,
2006a and b). There are also many contextual
risks to consider. For example, sub-cultures in
some industry sectors are less supportive of
collaborative relations than others (Grant, 2008).
The Account Manager
The literature about the key account manager is
more consensual, emphasising the challenging
nature of the role. The primary relationship
builder in strategic relationships needs a broad
and deep skill set (Wilson & Millman, 1995;
McDonald et al, 1997; Capon et al, 2008; Yip,
2008). In the complex world of global account
management, business management skills are
critical. A successful global account manager is
likely to be an intrapreneur, able to undertake
team-orientated trouble-shooting and analysis, to
demonstrate political, diplomatic and cultural
empathy, and to find new ways of working, coordinating the overall company effort (Homburg
et al, 2002; Wilson & Millman, 2003; Steward,
2009). He/she is a relationship-builder (Guenzi
et al, 2009), and a value creator for the customer
(Georges & Eggert, 2003; Georges, 2006). The
global account manager role is frequently
described as “boundary-spanning” supplier and
Vol. 10, No. 3
12
Journal of Selling & Major Account Management
customer needs (McDonald & Holt, 2001),
which requires the ability to deal with role
ambiguity. For any company evaluating a pilot,
the selection and development of account
managers would be in its early stages, but would
need to be setting the right precedents and
sending appropriate messages internally and to
customers.
approach. Understanding the way customers
perceive the strengths and weaknesses of a
supplier in comparison with their competitors
seemed so critical to the financial success of a
strategic account management programme that it
became the subject of a separate primary
research artefact.
Account Selection
Value Delivery
Suppliers undertake account management
programmes to improve their returns, but the
literature has a strong message that the focus of
the programme must be on delivering benefits to
customers, or the benefits to the supplier will
not follow. Ittner & Larcker (2003) found that
most company’s measurement methods for
customer satisfaction are misleading and too
primitive to be useful in confirming that
customer value is being delivered. Satisfaction
indices alone are poor indicators of repurchasing activity (Sharma, 1997; 2000).
Customer perception is the only accurate
indicator of success and repurchases (Ryals &
Rogers, 2006), therefore key account
management assumptions must be tested (Ivens
& Pardo, 2008). Continuous performance
improvement is central to strategic purchasing
management, so suppliers must understand the
customers’ performance criteria and demonstrate
value delivery (Piercy & Lane, 2003). Reliability,
flexibility, stability and communication are all
necessary to perceptions of mutual value
development It is important to do more than
merely assist customers in avoiding disadvantage,
rather it is required to gain an in-depth
knowledge of how the customer’s value chain is
configured so that improvements can be
identified and value created (Ryals & Humphries,
2007). Even with a pilot scheme, it would be
important to ascertain whether key accounts
have observed a positive change in the supplier’s
Northern Illinois University
How customers see the company should be an
element in account selection (Ryals & Rogers,
2006). The selection of “key” or “strategic”
customers could be controversial, and variations
across national boundaries present an added
complication. McDonald et al (1994) noted that,
as the fundamental source of a business’s cash
flow, customers are a risky asset, particular as the
size and power of strategic customers continues
to grow. It is therefore necessary for suppliers to
analyse customers to select where the most
successful business relationships can be
developed (Zupancic, 2008). Problems can arise,
or benefits can be missed, when too little
attention is paid to key account selection
(Wengler et al, 2006; Al-Husan & Brennan,
2009).
A customer portfolio analysis was initially
designed by Fiocca (1982). One axis was based
on “attractiveness factors” (value of the
customer to the supplier) and the other on
relationships strength. More recently, objective
feedback from customers about the supplier’s
competitive position has been advocated (Ryals
& Rogers, 2006).
Companies are bound to differ in their definition
of customer attractiveness, due the contexts of
industry sector, company size and company
culture, but many researchers have argued for
the importance of customer profitability as a
dominant attractiveness factor. In the 1990s,
Academic Article
many companies simply did not know what the
profitability of individual customers was
(Woodburn & McDonald, 2001), because it was
difficult to obtain data from product based
management accounting systems. Reichheld
(1996) argued that profitability increases as
retention increases, but since then, researchers
have found that customer retention alone is no
guarantee of customer profitability (Storbacka et
al, 1994; Ryals, 2003). Even when customer
profitability analysis is available, it cannot act as a
guide to the future (Reinartz & Kumar, 2000).
Ryals & Knox (2005) suggested that it could be
possible to use some form of risk-adjusted
lifetime value as a measure of customer
attractiveness, enabling evaluation of existing
and potential customers in terms of prospects to
generate shareholder value. More recently,
researchers have argued for less tangible
selection factors such as ‘degree of
organisational fit’ to be included in selection
criteria (Toulan et al, 2006; Richards & Jones,
2009), as they are relevant to success.
A useful generic guide for account selection has
been suggested by Woodburn & McDonald
(2001). They found that best practise companies
generally adopted three types of customer
attractiveness factors: those which involve
reward to the supplier, those which involve
opportunity for differentiation and those which
involve risk reduction. The importance of
account selection also warranted a separate
primary research artefact in the audit.
Account Planning
Even in a pilot, the principles of strategic
planning, preferably in collaboration with the
global account identified, were a desirable part of
the audit. Best practise companies have been
found to develop long term plans in
collaboration with their individual strategic
Summer 2010 13
accounts (Woodburn & McDonald, 2001; Ryals
& Rogers, 2007; Capon et al, 2008), as effective
planning is only achievable with customer
interaction and dialogue. One indicator of
effectiveness is the degree of participation in
planning (Philips et al, 2001), which is often
hampered by the difficulty in achieving adequate
buy-in (Lane & Clewes, 2000). Ryals & Rogers
(2007) highlighted that gaining internal buy-in is
critical in account planning.
Knox & Maklan (1998) defined ‘customer value
planning’ as closing the gap between current
organisational competencies, and customers
future needs, through detailed scrutiny of the
core process which deliver value. Indeed the key
account manager’s ability to translate company
capabilities to needs, in line with the customer’s
perspective are an important aspect of planning
(McDonald & Rogers, 1998). The planning
process itself can deliver intangible benefits such
as the value of organisational learning about the
customer, and the value of the suppliers own
capabilities, particularly where cross-functional
teams have been involved (Ryals & Rogers,
2007).
These strategic success factors were all discussed
in qualitative interviews within the company and
detailed indicators were designed within
quantitative surveys.
SUPPORT STRUCTURE ITEMS
Five support structure success factors were
derived from the two key texts: colleague
support, infrastructure support, executive
support and company-wide customer focus. A
company examining a pilot might expect these
items to need further attention in a wider rollout, but nevertheless, the audit provided an
opportunity to discuss the detail needed to
Vol. 10, No. 3
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Journal of Selling & Major Account Management
establish a strong support infrastructure for
global account management strategy.
However high the skills level of individuals in
designing value creation for customers, strategic
account management, particularly where it is
global in scope, cannot survive or prosper as a
stand-alone arrangement in an organisation (Yip,
2007). Montgomery & Yip (1999) defined it as
an organisational structure with associated
processes in multinational companies. The
worldwide activity to serve each strategic
multinational customer is co-ordinated within
this structure.
Colleague Support
Any strategic account management programme
needs to have an integrated structure and process
which pervades the whole company (Millman &
Wilson, 1999a; Yip & Bink, 2007). There should
be cultural support for initiatives with global
customers at all levels within the organisation
(Workman et al, 2003). This should lead to
breaking down functional silos, reducing conflict
in organisations and knowledge-sharing (Arnold
et al, 2001; Ryals & Bruce, 2006). Customer
relationship oriented values (Jaworski & Kohli,
1993; Hutt & Walker, 2006) and cross-functional
selling teams (Harvey et al, 2002; Arnett et al,
2005; Sheth & Sharma, 2008) are needed in order
to improve performance. Global account
management will flounder without interfunctional support and knowledge exchange.
(Nätti & Ojasalo, 2008).
A team spirit, incorporating common purpose,
team members feeling obliged to support each
other and striving to reach joint goals was
identified by Workman et al, (2003) as a
facilitator for enabling account managers to
access resources to create value for customers.
Team-based rewards for customer-focused
behaviours can reinforce performance
Northern Illinois University
(Weinberger, 1999; Ryals et al, 2006), although at
the pilot stage it might be difficult to discern
how they should be applied.
Infrastructure Support
With a broad body of literature emphasising the
importance of processes and systems
underpinning strategic and global account
management in order for it to become a
company-wide competence (Millman & Wilson,
1999a, 1999b; Senn, 1999; Homburg et al, 2002;
Gosselin & Heene, 2005; Shi et al, 2005; Capon
et al, 2008; Piercy, 2009; Fleischer, 2010), it
needed to become an important discussion in the
primary research within the company.
Customers demand consistent service worldwide
(Montgomery & Yip, 2000). Galbraith (2002)
identified five critical processes from leading
examples in practice: formulating strategies for
customers, portfolio planning, solutions
development, ordering/pricing and building/
dismantling teams. It is also critical to integrate
day-to-day operational logistics (Gosselin &
Bauwen, 2006; Helander & Möller, 2008).
It is the process changes and organisational
competences that can be the antecedents of
improved customer satisfaction and repeat
business (Gosselin & Bauwen, 2006; Smyth &
Fitch, 2009). In the case of global account
management, inter-country and interorganisational integration are essential for
improved performance (Shi et al, 2010). Ryals et
al (2006) and Yip & Bink (2007) identified a
number of sub-categories for infrastructure
support, although which is critical may depend
on the operational context of the supplier and
the customer, which was useful in informing the
primary research.
Summer 2010 15
Academic Article
Executive Support
The need for top management support in the
success of any change programme is an obvious
critical success factor, and it is needed for
strategic account management (Millman &
Wilson, 1999a; Capon et al, 2008). Without it, it
is unlikely that the company could be
restructured and its systems and processes reengineered to support global account
management (Francis, 2004; Homburg et al,
2002; Capon et al, 2008). In fact, very few
companies formally link their account plans to
their senior executives’ actions (Senn, 2006).
Senn’s research in Siemens is notable because he
observed that senior executive involvement in
key account management and individual key
accounts significantly increased sales and profits
within 2-3 years. Detail from the Senn study was
valuable in designing the primary research within
the case study company.
Customer Focus
A considerable challenge for any company
historically organised around its products is the
matrix approach to ensure that internal and cross
-boundary account teams get the resources that
they need. Yip & Bink (2007) emphasised the
underlying need to move to the ‘multi-point’ to
‘multi-point’ relationship of a ‘web’ or
‘diamond’ (orchestrated by the account
manager), within a properly integrated companywide global approach. Key account management
should increase co-operation between supplier
and customer (Campbell, 1997; Hausman, 2001).
Indeed all individuals (points of the webs)
must be suitably knowledgeable, motivated
and rewarded, with the correct attitude and
behaviours day-to-day (Gosselin & Bauwen,
2006; Helander & Möller, 2008). A strong
network of contacts is important for success,
as it helps with feedback, needs analysis and
process improvement (Hutt & Walker, 2006;
Ryals & Humphries, 2007). The development
of trust within these relationships is also
critical (McDonald & Woodburn, 1999; Jones
et al, 2009; Guenzi et al, 2009). A formal
approach to global account management
teams was evident from some companies in a
separate benchmarking research activity.
In summary, for the purposes of defining a
best practice model from the literature that
could then be confirmed in other research
methods, it was important to identify other
literature beyond the two main texts from
which the global account management success
criteria were drawn. Although there are only a
few empirical studies, some case study
research was also identified which supported
conceptual and general texts.
METHOD
In order to ensure robustness in building and
testing a model for the case study company, the
cumulative method encompassed:
•
Literature searching and model development
•
Interviews with specialists in the field to
ensure currency of the model
•
Benchmarking exercise with four other
companies,
And, testing the company’s alignment with best
practice through:
•
An initial interview stage with senior
managers
•
Two surveys with implementers involved in
the pilot
•
A repertory grid study (interviews) with
implementers
•
Triangulation of results
Vol. 10, No. 3
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Journal of Selling & Major Account Management
Building the Framework for Best Practice
The literature review formed the main source of
secondary data, but additional material was
obtained from interviews with leading thinkers in
the field and shared information from a
benchmarking exercise, prior to in-company
primary research.
In order to investigate the existence or not, of a
research gap in the area of marine industry key
account relationships and to ensure the currency
of themes from the research given the dramatic
change in the economic environment, the first
named author approached twenty people who
had authored books or articles on key account
management. Responses were received from
nine. Four broad questions were posed to
ascertain their views on the latest trends in key
account management, whether the recession was
having any specific effect on key account
management, whether findings related to the
USA and Europe were also relevant in
developing economies, and whether there was
any specific prior research about global account
management in shipbuilding.
The answers
helped to frame the research objectives, validate
the need for research in the specific area of
shipbuilding, and confirm the framework of best
practice.
Additionally, the case study company took part
in a benchmarking exercise initiated by a
professional services company via the second
named author. Five participants from different
B2B sectors shared information about their
strategic account management practices. These
were shared, along with opinions about what
constituted most advanced account management
practice. The findings were confidential to the
participants. For Wärtsilä’s purposes, there was
reasonable confirmation of the planned
approach to auditing the GAM pilot. It was
particularly beneficial to be able to make
Northern Illinois University
comparisons with another global capital goods
provider in a different sector.
Testing the Company’s Alignment with Best
Practice
Extensive internal primary research was
necessary to encapsulate the experience that the
case study company already had of strategic
account management through the pilot. The
first named author therefore began primary
research by identifying the main visible and
underlying themes arising from the company’s
experience, in comparison with externallydefined best practice.
This, which was
essentially the main research vehicle selected,
involved one-to-one in-depth qualitative
interviews to discuss best practice themes and
issues. Open questions were designed to
ascertain the perceptions of respondents about
best practice global account management
characteristics.
Under an interpretative paradigm, interviews
allowed exploration of ‘data on understandings,
opinions, what people remember doing,
attitudes, feelings and the like, that people have
in common’ (Arksey & Knight, 1999). Research
in the KAM field is even said to require in-depth
interviews as a means of research due to the
inherent complexities of the subject area
(McDonald et al, 1999). For such a programme,
under the scrutiny of senior management, it was
judged that reality is subjective to the group and
multiple, as perceived by those participants
(Cresswell, 1994, 1998).
Participants for the first in-depth interview stage
were those senior managers who had initiated or
overseen the account management programme.
The researcher conducted one to one semistructured telephone interviews with 13
respondents in total. A semi-structured approach
Academic Article
allowed a degree of freedom for new or
unanticipated issues to be raised, whilst
providing a solid framework of pre-determined
questions and themes (based on the best practice
framework) to guide the interview process.
These interviews were intended to identify
perceptions of the things that are important in
the strategic account management programme,
and to inform separate surveys.
As a result of feedback from the first interview
phase, the content and structure of three
supplementary questionnaires was refined, the
purpose of which was to provide material for
triangulation of interview findings, and
potentially insights from alternative perspectives
utilising a range of methods.
Survey 1a examined implementers’ feedback
from customers about the competitive
positioning of the case study company
concerning global account management best
practice.
No analysis of strategic account
management would be complete without
considering the perspective of customers (ship
owners). Due to time limitations, for the
purpose of this study, information about
customer feedback was sought from senior sales
management and account team members.
Participants for survey 1b, a supplementary
questionnaire designed to cross-check and
triangulate interview responses, were those
senior sales managers involved in achieving sales
results, either as the head of the business,
business segment, country area or region (there
was no overlap with the interview participants).
This survey discussed all aspects of the best
practice framework.
The second triangulation artefact was a set of
repertory grid interviews conducted by webbased ‘Live Meeting’. Grounded in Kelly’s
Theory of Personal Constructs, the repertory
Summer 2010 17
grid tool has been described as qualitative in its
data collection method and quantitative in its
method of analysis. It can provide a framework
and tool for understanding anxieties about a
change process, which may assist in overcoming
those anxieties (Bannister & Fransella, 1985).
Rogers & Ryals (2007) identified underlying
factors in managing account management
relationships using Rep Grid processes. The
objective in this research was not to elicit new
constructs, rather to check the relevance and
applicability of existing verified research findings
(constructs) to the case study company and the
marine industry.
Following the analytical procedure outlined by
Miles & Huberman (1994), written transcript of
all interviews were produced from the Live
meeting recordings, and were reconstructed for
analysis. Question order, and questionnaire
design, was the initial step in restructuring the
data to provide categories into which the data
could be fitted. Initially each whole interview
was analysed for key issues and recurring themes
within the entire dialogue, per complete
interview. The transcripts were edited and
arranged in spreadsheets such that all responses
could be read, directly below each interview
question. The resulting summary of interview
themes allowed direct comparison, ranking and
rating of responses. Respondents themes were
ordered by frequency of occurrence, and then
cross- referred to ‘best-practise’ themes as
identified in the literature review.
The purpose of this specific method was to rosscheck and surface any underlying themes and
patterns (Rogers & Ryals, 2007), perhaps not
made explicit in the interview or survey stage,
and potentially to provide corroboration with
other results for triangulation. After investigating
sources of commercially available repertory grid
software, the first named author sought and
Vol. 10, No. 3
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Journal of Selling & Major Account Management
received specialist input regarding correct
formulation of the grid layout, the grid interview
process and grid analysis from an expert,
practitioner and consultant in the field.
Reliability Issues
As an employee and active participant of the
researched system, the primary researcher (firstnamed author) interacted with the participating
individuals, therefore great care had to be taken
to reduce the potential for bias. However, the
author had no direct experience in the running
of the strategic account pilot. To that extent, the
research was approached from an independent
perspective. The researcher endeavoured to
eliminate risks to participants by avoiding all
actions or questions which could have been
viewed as being a threat to any of the
participants. Interview questions were peerreviewed twice and modified. One advantage of
telephone interviewing (Mitchell & Jolly, 2001) is
a possible reduction of bias. Dedicated time was
allocated to researching and testing the design of
the interview questions and questionnaire
questions. A checklist for reducing interview bias
(Collis &Hussey, 2009) was observed,
incorporating exact wording of questions, in the
same order and the same tone, and recording the
respondent’s exact words.
The respondent pool demonstrated a significant
level of experience within the industry, the
researched company, within sales management
activity, and in having direct regular involvement
in day to day sales management activity. The
respondent profile was checked through four
screening questions designed to gauge
experience and proximity to customers (Gallup,
1947).
The response rates for the surveys were
acceptable. Survey 1a achieved 25 from 35
Northern Illinois University
possible responses (74%); survey 1b achieved 18
out of 26 responses (69%), and seventeen
participants agreed to participate further in the
Repertory Grid interviews. Common sample
bias may have been possible due firstly to some
respondents having participated in more than
one phase of the research, and to the fact this
was a single company case.
The analytical, applied, inductive research was
designed to contribute findings towards the
active discussion, review, and potential
improvements in the company’s account
management programme. The incorporation of
many different research artefacts has ensured
that, given the limitations of a single company
case with an action researcher, the research
findings can also reinforce the body of literature
to date on strategic account management.
FINDINGS AND DISCUSSION
The aim of the first named author’s project was
to examine the success (or otherwise) of the setup and implementation of the case study
company’s Strategic Account Management
programme, in comparison with externallydefined best practice. The comparison revealed a
broadly successful set-up and implementation of
global account management to date, with some
challenges remaining. The detailed findings of
the primary research are commercially
confidential and unique to the case study
company, but the following comments may be
helpful in explaining the impact of this method.
In qualitative in-depth interviews, senior
managers expressed an understanding of
strategic account management success factors
that was broadly in line with best practice.
Summer 2010 19
Academic Article
Table 2. Findings
ASPECTS OF BEST
PRACTICE
Achievements from
Pilot
Further work
Essential Core
The business case for strategic
account management
Clear value for Wärtsilä Extend the program, leverage benefits and
from pilot
replicate successful learning
Selection of suitable global account managers
Successful
HR involvement re: career path; active
coaching
Value-based targets for global
accounts
To some degree
Improve focus of remuneration/bonuses
for GAM teams
Clearly identified global account To some degree
(selection criteria)
Improve business relationship analysis
Individual account plans
To some degree
Adapt lifecycle approach to demonstrating
value
Colleague support
To some degree
Develop team culture; remuneration/
bonuses for GAM teams; active coaching
Infrastructure/process
The main challenge
Focus on ease of doing business; strengthen
central SAM process function
Executive support
Successful
SAM Board involvement in active coaching
of GAM teams
Customer focus
To some degree
Adapt lifecycle approach to demonstrating
value
Infrastructure support for GAM
The next two stages of the research were
conducted with implementers. Survey 1a
examined implementers’ feedback from
customers about the competitive positioning of
the case study company. Survey 1b explored,
with implementers at middle management level,
their perception of the best practice framework
and how close the company is to achieving it.
The final phase of the research involved
interviews with implementers to ascertain
underlying anxieties about the change process
and also confirmed the findings in Rogers &
Ryals (2007).
Participant engagement in the research process
did reveal at a working level a clear and widespread understanding of the need and likely
developing trend for closer cross-divisional
working between the capital plant sales division
and services division of the company (currently
separate businesses with their own distinct
identities and processes, albeit often with
common client interests).
The respective
divisional views of the most critical aspects of
strategic account management were indeed very
similar, thus suggesting the realistic potential
viability of more unified cross-team working in
Vol. 10, No. 3
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Journal of Selling & Major Account Management
future. Although the divisions are likely to
remain separate businesses and structures for
quite some time to come, areas of commonality
are emerging quickly , particularly with respect to
vessel emission control systems and technologies
for example (equally attractive in the newbuild
and retrofit markets , but often requiring a
capital equipment sales and project approach).
The need to successfully transition processes and
structures from the pilot strategic account
management programme towards achieving a
genuine Global Customer Management (GCM)
organisation, at all levels of the company is the
next challenging stage of the project. The global
task will involve aligning the attitudes, day to day
behaviours and responses of all individuals
appropriately, guiding their active role in the
consistent servicing of strategic and global
accounts. Additional ongoing communication
will be required cross-culturally and
internationally, relating to the programme.
The contribution of the research work has been
acknowledged by the chairman of the strategic
account management steering group, and the
content and findings are being utilised not only
in the next phase of the roll-out, but also for
possible inclusion in internal familiarisation and
training material. The robustness of the mixedmethod research approach has allowed the case
study company to have the desired degree of
confidence in the accuracy and utility of the
findings, and a similar approach and framework
could be used by other industrial manufacturing
or maritime organisations, implementing
fledgling account management programmes.
As a result of the benchmarking process, specific
recommendations included:
•
Transitioning the pilot strategic account
management programme into a global
customer management organisation
Northern Illinois University
This was seen as the most critical phase yet to
come, in shaping and developing a whole
supporting organisation globally, which fully
understands and supports strategic account
management.
At the heart of customer
requirements is the expectation that it should be
easy to do business with the case study company.
•
Extension of the programme and leveraging
of benefits
Deeper understanding of customers’ business
needs to correctly position and evaluate potential
strategic accounts was required. Re-deployment
of any successful learning and models across
other large customers (not necessarily strategic
accounts) would help to re-coup the cost of the
programme.
•
Developing a SAM team culture through
remuneration and bonus systems
Possible double-counting of strategic account
sales figures / successes to allow network
company operations the recognition for work
done, would avoid any ‘elite’ SAM culture
developing (Yip & Bink, 2007). Account
managers remuneration should be more
structured towards long term relationship
development with a significant (motivating)
bonus element.
•
Developing business relationship analysis
Consideration of less tangible pre-selection
factors such as degree of organisational fit
(Toulan et al, 2006; Richard and Jones, 2009) as
possible critical account selection factors was
advised, as was use of portfolio matrix analysis
to view the trends / movements within key
customer base was recommended, in giving
some mechanism for selection / de-selection
(McDonald et al, 1997).
Summer 2010 21
Academic Article
•
Strengthening the strategic accounts support
function
Some stronger permanent dedicated central
organisation which reviews and develops the
SAM processes and tools on an ongoing basis,
including continued benchmarking and bestpractise comparisons was recommended.
•
Adoption of a lifecycle
demonstrating value
approach to
From the development of product features, and
sales processes, selling ‘outputs’ and
‘performance’ is required (whether that is vessel
design functionality, emission level, or ‘power by
the hour’). Profitability and risk management
discussions are needed regarding how risk in the
client’s end-use markets versus potential return
would look, when considering from the new
‘whole of lifecycle’ view.
•
More formalised
involvement
human
resource
If the programme would develop professionally,
the human resource management (HRM)
function has to become involved in continuous
screening and selection of strategic account
manager candidates, structuring a real career
path (dedicated training programmes for
example and promotion prospects). It was
advisable to introduce some safeguards, and
ethical codes of practise to prevent unintended
consequences when dealing with the largest
customers globally, avoiding potential
accusations of adopting monopolistic positions
(Piercy & Lane, 2006). Equally important is
some assessment of the growing skills and
competence gaps in local network organisations,
which have to implement strategic account
plans.
•
An Active Coaching System
An active coaching system with strategic account
managers involving key members of the SAM
Board was recommended. The benchmarking
study highlighted that coaching in combination
with targeted training has been effective within
other large complex technology organisations as
a means to quickly develop high-level
competences.
CONCLUSION
Based on the demonstrable successes thus far
for Wärtsilä, not least of which has been an
almost immediate closer upper management
dialogue and enhanced trust with the senior
management of those customers selected in
phase 1, the strategic account management
approach at the time of writing was planned to
be extended to cover an additional group of
customers in the 2nd phase of the pilot.
The value of the thoroughness of the audit of
the strategic account management pilot has had
benefits for this case study company, and may
provide a starting point for other organisations
wishing to review their SAM programs.
LIMITATIONS OF THIS STUDY
Although comprehensive enough to meet the
requirements of the organisation in auditing
the strategic account management pilot, due
to time limitations, information about
customer feedback was sought from senior
sales management and account team
members. It would be preferable in future
reiterations of this audit process as the
programme is rolled out, to seek feedback
directly from purchasing decision-makers in the
customers as dyadic research shows some
Vol. 10, No. 3
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Journal of Selling & Major Account Management
differences between internal perceptions and
customer perceptions (McDonald & Rogers,
1998; Abratt & Kelly, 2002).
Arnett, D. B., Macy, B. A. & Wilcox, J.B. (2005),
The role of core selling teams in supplierbuyer relationships, Journal of Personal Selling
and Sales Management, 25 (1), 27-42.
John Grant is General Sales Manager, Marine
Wärtsilä UK Ltd - Ship Power Division
11a Peterseat Drive, Altens, Aberdeen
AB12 3HT Direct Tel: + 44 1224 854011
Direct Fax: + 44 1224 871188
Mobile: + 44 7775 807118
e-mail: john.grant@wartsila.com
Website: www.wartsila.com
Arnold, M.P., Belz, C. & Senn, C. (2001).
Leveraging Knowledge in Global Key Account
Management: Findings of a benchmarking group
project in the industry, (Research Report for
Marketing 2001/1). St Gallen, Switzerland:
University of St Gallen.
Beth Rogers is Principal Lecturer at
Portsmouth Business School,
Richmond Building
Portland Street, Portsmouth, United Kingdom
PO1 3DE Direct Tel: +44 2392 844017
Direct Fax: +44 2392 844037
Birkenshaw, J., Toulan, O. & Arnold, D. (2001).
Global Account Management in
Multinational Corporations: Theory and
Evidence, Journal of international Business
Studies 32,2 (2nd Quarter 2001), 231-248.
Mobile: +44 7709 225337
e-mail: beth.rogers@port.ac.uk
Website: www.port.ac.uk
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Northern Illinois University
Summer 2010 29
Academic Article
The Utilization of Scripts in BusinessBusiness-toto-Business Selling:
an Assessment
By Robin Peterson and Sarah Fischbach
During past decades, scripts have received considerable attention in the sales literature. Much of this attention was expressed in positive tones–encouraging script usage. At present, however, the coverage is
modest, possibly suggesting that scripts are no longer perceived to be of great significance. The authors
propose that they are still very relevant and in some cases essential for B-to-B sales success.. This paper
provides a rationale for scripts in the personal selling function and furnishes a discussion of script use, as
an aid to Business-to-Business sales representative productivity. The paper indicates how scripts can be
of value in selecting training and supervision coverage and generating individual scripts. Further it discusses the processes of devising and validating scripts and illustrates these processes through an example.
INTRODUCTION
Scripts are not new to the personal selling field–
they have been used in the United States and
many other nations for numerous decades (Lee
& Kathryn, 1998). Specifically, behavioral scripts
–written sequences of sales representative expected behaviors–have been commonplace and
were once frequently mentioned in the academic
and professional personal selling literature. This
extensive coverage suggests that scripts were
once considered by those in the sales field to be
highly valuable. In turn, this is reinforced by the
fact that the bulk of the coverage of this sales
tool uncovered by the authors is positive in nature.
In order to provide an overall gauge of perceptions on the significance of scripts in the literature, the authors conducted a brief telephone
survey of contributors to that literature. Twenty
marketing professors who had published at least
one B-to-B personal selling article ten years or
longer before the date of the study and one or
more articles within six months of the date of
the study were queried. They were asked: “Based
upon your reading of the B-to-B personal selling
literature, to what extent, more or less, are scripts
studied through research reported in the litera-
ture, compared to ten years ago? Please provide
your answer in estimated percentages in some
multiple of ten. You might indicate, for example,
that scripts are the focus of study in ten percent
more articles than they were ten years ago. Or
you could say ten percent or some other figure
less. The percentages of change appear in Table
One. It is clear that the respondents feel that
scripts have been granted a reduced degree of
emphasis.
In addition, a review of the overall, consumer
goods, and B-to-B sales literature by the authors
uncovered only sparse coverage or even mention
of this treatment/device during recent years. Is
this condition desirable for those who operate
within the selling field? Is an important tool falling victim to neglect? Perhaps it is relevant to
ask “Are scripts still perceived to be useful to
practitioners and academics?” “If they are useful,
how should they be employed?” “Should researchers direct more of their efforts to scripts,
in order to improve their contributions?” This
paper attempts to provide some insights into
these issues through a discussion of the value
and an examination of the potential and actual
uses, applications, and development of scripts.
Vol. 10, No. 3
30
Journal of Selling & Major Account Management
Table 1: Increase or Decrease in Script
Treatment Articles, Past to Present
Percent Change
Frequency
Decrease 50% or More
8
Decrease 40%
4
Decrease 30%
5
Decrease 20%
1
Decrease 10%
2
No Change
0
Increase 10%
0
Increase 20%
0
Increase 30%
0
Increase 40%
0
Increase 50% or more
0
Total
20
DESCRIPTION OF SCRIPTS
Scripts are learned routines developed for
specific situations (Pitt, 1998). They are stored
memories about the behavior that is appropriate
for reaching certain objectives (Mitchell, 1996).
Essentially scripts consist of one’s own expected
behavior and the behavior of others in a
particular situation. While there is not a
considerable body of current research that
focuses upon the use of scripts in sales training,
the contemporary research gives indirect support
for script applications, because they have been
employed in a variety of fields, such as
education, medicine, and biology (Lyons, 2006).
All individuals learn scripts for guiding their
conduct. A consumer, for instance, is likely to
employ a script for shopping at the supermarket.
This may include attempting to park as near the
entrance as possible and then locking the car
doors. Following this, the consumer may enter
Northern Illinois University
the store, select a cart, proceed to the produce
section, select preferred fruits and vegetables–
and the script goes on. The consumer pursues a
pattern of thought and activity whenever the task
is performed, based upon past learning about
attaining sought-after goals. The task in the
example above is simply to acquire desired
groceries. Most scripts that are brought into play
in business are much more complex and
comprehensive.
Likewise, B-to-B sales representatives can utilize
scripts to accomplish their objectives. One script
may be employed to handle customer complaints
and another to demonstrate a new product.
Others can be used for tasks such as prospecting,
pricing merchandise, and closing sales. There are
different scripts, then, for different situations
and categories of prospects. And, since
individual customers are more often the source
of much of the B-to-B sales rep’s revenues, there
is considerable justification for designing scripts
that are individualized for each customer or
prospect.
RATIONALE FOR UTILIZING SCRIPTS
IN TRAINING AND SUPERVISION
Experienced and talented B-to-B sales
representatives develop a stockpile of
knowledge, based upon their past achievements
and failures. Research has shown that much of
this knowledge is generic–it can be applied to
various different situations and it can be utilized
by more than one employee (Brett & Okumura,
1998). It appears logical, then, that inexperienced
and unsuccessful employees could benefit from
learning and then applying what experienced
high-performers have assimilated. The scripts
which are relevant in this context are termed
“expert based” scripts. Later sections of this
paper focus on a different variety–termed
“personal” scripts.
Academic Article
B-to-B managers can ask their more successful
employees for descriptions of the scripts that
they might employ in particular situations, such
as closing sales. In turn, the written scripts can
be studied and organized into meaningful
categories. These categories represent methods,
strategies, and tactics that have been effective.
Logically, these are methods, strategies, and
tactics that could be covered in training
programs aimed at new recruits and established
employees who need training to better their
performance. They also can be covered by sales
managers in the process of supervising sales
representatives.
There are several advantages open to B-to-B
sales managers who employ scripts in generating
sales training and supervision programs
(Mitchell, Smith, Seawright, & Morse, 2000).
One is that the topics relate to what successful
employees do (Mahajan, 2005)–they are founded
on what really occurs when objectives are
achieved. Scripts provide specific details on the
activities which accomplished individuals employ
to reach their goals, such as developing new
products (Lyons, 2008; Lee, Lau, & Yu, 2005).
The scripts are based upon facts, not abstract
theories or subjective judgment. In addition,
scripts can provide insights into successful
employee emotions, as well as factual knowledge
(Kahler, Klontz, & Klintz, 2007
Certainly, scripts are not unique to the sales field.
Rather, they can be valuable for a variety of
applications. Teachers, for instance, can employ
learning scripts to facilitate collaboration with
other teachers in integrating new pedagogical
methods into their work (Hamalainen &
Hakkinen, 2010).Artists can learn how to adopt
new approaches and experiences to their own
practices through scripts specifically designed
for such learning (Jaffe, 2009). In biology, scripts
Summer 2010 31
are employed to assist beginners in producing
molecular modeling algorithms in an effective
manner (Chaudhury Lyskov, & Gray, 2010). In
the science field, scripts supply graphical means
for creating models and thus to eliminate
problems typical for modeling in a textual
manner (Balicki & Szpyrka, 2010). Play writing
scripts are sometimes formed, based on the
works of successful writers and used to develop
new plays and writers (Lane, 2010). For doctors,
scripts furnish mental imagery to rehearse a
surgical task symbolically, before actual
performance (Arora, et al., 2010).
Previous years have witnessed considerable use
of scripts in sales training and supervision
programs. Leigh & McGraw (1989), for example,
probed into passing the procedural knowledge of
industrial sales personnel to trainees. Also, Troy
(1998) has covered the use of scripts to promote
sales of writing instruments to executives. Stern
(1997) has probed into applications of telephone
scripts. In turn, Brown & Brucker (1987) have
examined script usage in generating sales leads.
James (1999) has considered the employment of
scripts in selling to drug stores. Further,
Shepherd & Rentz (1990) have reported upon a
technique for assessing the cognitive processes
and knowledge structures of expert sales
representatives, so that these insights can be
shared with other salespersons. Ainscough &
DeCarlo (1996) describe a methodology using
behavioral rules ofmultiple expert sales
representatives to develop a flexible and
systematic sales expert system for use in scripts.
However, the recent literature is relatively silent
on scripts. Hence, this paper examines the
modern day value of these devices for sales
training and guidance.
Vol. 10, No. 3
32
Journal of Selling & Major Account Management
THE EMPLOYMENT OF SCRIPTS IN
TRAINING AND SUPERVISION
The script creation process is firmly grounded in
motivation theory that describes why and how
the process is attractive to employees who have a
need to improve their performance. (Lyons,
2006). Scripts have been characterized as a
source of action for acquiring legitimacy and
creating organizational identity and hence are
very desirable to B-to-B sales representatives
(Driori, Honig, & Sheaffer, 2009). Some
companies that use scripts have benefitted from
employee motivation research that emanates
from psychologists (Rosa & Porac, 2002). This
technique is based upon the premise that
managers and employees can and want to learn
through experience (MITRE, 2000). The scripts
are generally developed from the encounters of
expert employees (Burns & Light, 2007; Mitchell,
1996), and thus have established credibility
Interestingly, various firms have found that this
technique is especially useful when the company
is going through periods of evolutionary or even
radical change (Pitt, 1998).
Scripts have demonstrated potential for
enhancing the effectiveness of training and
supervision programs in a variety of areas. They
have been productive for those who are
preparing for increasing promotion productivity
(Webster & Sundaram, 2009). In addition, use
has been made of them in instructing individuals
for entrepreneurship careers (Smith, Robert, &
Mitchell, 2009). There are cases where scripts
have provided effective improvement in writing
skills (Conn, 2008; Sheldon & Willett, 2008).
Also, this technique has been employed for
learning negotiation skills with labor unions
(Brett & Okumura, 1998).
Another application is training and supervision
in creating new ventures. (Mitchell, Smith,
Northern Illinois University
Seawright, & Morse, 2000). Further, they have
been used for instruction in handling company
crises, where incidents of success and failure can
have a strong impact on company viability
(Brown, 1997).In addition , they have focused on
preparation for interaction with customers
(Parker & Ward, 2000). A related training
adaptation is for creating and implementing
methods and procedures to be utilized by
marketing personnel (Friedman, 1998). In terms
of more specific applications, script training has
been brought into play for instructing auditors
(Choo, 1996), realtors (Halpern, 1996), and
business researchers (Goodwin & Ziegler, 1998).
In some cases, the scripts have been utilized in
online applications (Bailin & Pena, 2007).
As was mentioned earlier, in recent periods, the
B-to-B sales literature has neglected an
examination of the use of scripts for selecting
topics in training and supervision programs. The
following discussion attempts to assist in filling
this void.
DETERMINING
TOPICS
FOR
TRAINING AND SUPERVISION
PROGRAMS
B-to-B sales managers can experience difficulty
in determining what topics and activities to
incorporate in their training and supervision
programs. Necessarily, they cannot cover every
possible responsibility, task, and difficulty that
exists. Rather they must restrict their efforts to
topics and behaviors which they perceive to be
most important for company goal achievement.
The task of selecting what to cover can be
demanding, as many theories and opinions on
needed instruction inputs may exist.
There are a variety of sources which can be
helpful in determining what to cover. Current
employees, particularly those who are especially
Academic Article
proficient, can be asked to describe the methods
and techniques which have served them best.
Managers who are responsible for the
performance of the trainees can suggest favored
topics. Other possibilities are to make use of
consultants, relevant trade publications, and
academic journals. All of these sources can be of
value. Perhaps none of them should be
neglected. Another possibility, that of using
scripts, can have considerable merit.
Two distinct steps are required in engaging this
tool. These are (A) devising, and (B) validating
scripts.
Script Devising for Training and Supervision
This section deals with expert-based script
development. This process is based upon study
of the cognitive processes and knowledge
structures of highly skilled, or expert salespeople
(Shepherd & Rentz, 1990).
In devising (initially creating) scripts, a sample of
successful employees is selected for analysis. If
the sales force is very small, the sample might
consist of only one or a few employees. The
successful employee or employees are provided
with a written description of a typical
undertaking, such as greeting customers and
learning their wants. The description should be
realistic and sufficiently detailed so that it
requires the employees to apply their planning
skills in much the same manner as they would
for an on-the-job situation.
Each successful employee is asked to list the
actions, thoughts and/or behaviors that he or
she would undertake in order to successfully
achieve the task. These elements are to be
arranged sequentially, in the order of their
occurrence. The script could be for the
accomplishment of a complete task, such as
obtaining an order from a customer, or for just a
Summer 2010 33
part, such as demonstrating the product.
After each successful employee has furnished a
script for the situation, the mental activities and
actions listed in them are grouped together into
categories. One or several judges read the scripts
and develop categories into which the activities
in the scripts can be assigned. One category, for
instance might be “introducing yourself to the
customer”, while others could be “discuss the
needs of the customer” and “listen to prospect
descriptions of needs.”.
If an employee script read “I would talk with the
customer about whether he favors a low price or
better product quality”, for example, the script
action could be allocated to the “Discuss the
needs of the prospect” category. On the other
hand, if the script read, “Tell the customer that I
am here to help him find what he wants” it could
be assigned to the category “introduce yourself
to the customer.”
The categories are developed by reviewing each
of the scripts under study and gaining familiarity
with the actions contained in them. Careful study
will usually reveal similarities between the actions
of different successful employees, which can be
generalized into categories. The category
“making small talk with customers” for instance,
might include actions such as “make comments
about the weather”, “discuss last night’s football
game,” and “exchange opinions about the
outcome of the election.”
The following process is used if more than one
successful employee is studied. If there is only
one employee, the process is not needed. The
number of sales representatives who mentioned
each category item is tabulated. For example, five
employees may have mentioned an action which
belongs in the “introduce yourself to the
customer” category. Ten may have mentioned
Vol. 10, No. 3
34
Journal of Selling & Major Account Management
actions which could be categorized as “discuss
the needs of the customer”. This will make it
possible to judge the popularity of each category.
Those categories which are mentioned by more
than 40 percent of the employees are termed
“norms”. These are items that are favored by a
sufficiently large percentage of the sample that
they should be considered for inclusion in the
Exhibit 1: New Prospect Hypothetical Script
Action
Percentage of Total
Introduce myself to the receptionist
64%
Ask the receptionist for an appointment
71
Enter the prosepect’s office
87
Compliment the prospect
11
Introduce myself
97
Shake hands
93
Wait for an invitation to be seated
17
Small talk
59
Agree on what topics to consider
35
Thank the prospect for his (her) time
9
Inform the prospect on why I am here
74
Obtain information about the prospect
79
Review past sales calls on this prospect
13
Provide information on my company’s strengths
31
Provide information on competitor’s weaknesses
10
Discuss problems faced by the prospect
58
Obtain information on the prospect’s buying procedures
19
Discuss the prospect’s needs
82
Suggest possible ways of satisfying the prospect’s needs
80
Suggest one or more products to satisfy the prospect’s needs
91
Provide information on company service policies
63
Give the prospect literature on the company
39
Ask for a second appointment with the prospect
20
Thank the prospect for the time given
63
Shake Hands
93
Greet the receptionist on the way out
37
Northern Illinois University
Summer 2010 35
Academic Article
training and supervision program.
Exhibit One sets forth a hypothetical script for
sales representatives who are calling on new
prospects. It lists actions mentioned by
successful sales representatives and the
percentage of the sales representatives who
mentioned the actions falling into each category.
Those percentages which are larger than 40
percent are included as norms.
Sometimes it is beneficial to determine the
sequence of the actions that superior employees
utilize (Mueller & Carter, 2005). If one action is
performed at an earlier time than another, this
may increase the probability of successful
performance. On the other hand, it may be that
the order of the actions is not important. If this
is the case, the manager may choose not to
arrange the sequence.
In turn, sequencing can be accomplished by
examining the script of each individual employee
and ranking each action in the script according
to the order in which it appears. For instance,
one employee may have listed “introduce myself
to the receptionist” as the first action to be
taken. This would receive a rank of one. This
process would be undertaken for each action on
each employee’s script.
The average rank for each action is determined
by adding up the ranks for all of the employees
who mentioned that action and dividing by the
number of employees. If, for instance, three sales
representatives ranked “introduce myself to the
receptionist” as the first action to be performed
and three others ranked it as the third action to
be performed, the average rank would be two.
This would indicate that, for the group at large,
“introduce myself to the receptionist” tends to
be the second action in attempting to make a
sale.
At this point, the manager who is doing the
training has insights into what norms are most
important and could be stressed in the training.
Also, the manager may have done the sequencing
and is aware of the best sequence of actions. The
next step that can be taken is to validate the
scripts.
VALIDATING SCRIPTS
B-to-B managers may decide to validate the
scripts, as a means of acquiring evidence that the
scripts will in fact prove to be accurate guides to
success in selling. This is not always necessary,
however. Managers who feel that the scripts
already provide an accurate reading of the
actions needed for successful performance may
decide that validation is not necessary. On the
other hand, some managers prefer validation, so
that they have more confidence in the scripts.
The process of validating scripts consists of
appraising them to see if they hold true for a
second group of superior employees. The second
group is selected and is presented with a
questionnaire. It provides the same description
of the typical task (in the example making an
initial call on a new prospect) as was given to
members of the first group. The questionnaire
merely lists the actions which the first group
produced. It does not list the percentages set
forth in Exhibit One.
Each member of the second group of employees
is given a description of the task and asked to
rate the actions on a scale running from one (“I
would definitely not use this action”) to seven
(“I would definitely use this action”). Exhibit
Two provides a sample questionnaire.
The scale values for each action are then added
and divided by the number of employees who
evaluated that action. The resulting figure
represents the average for those employees who
Vol. 10, No. 3
36
Journal of Selling & Major Account Management
Exhibit 2: Questionnaire for Script Validation
Directions: The purpose of this questionnaire is to measure the extent to which you would use each of
the following actions in calling on the new prospect described in your written description. The Ratings
run from 1 to 7. A rating of “1" would indicate that you definitely would not use this action. A rating of
“7" would indicate that you definitely would use this action. A rating of “4" (the mid-point) would indicate that you are indifferent. All of the remaining scales have corresponding weights. For example, if
there is a good chance that you would use an action, you would mark the “6" scale and if there is a
slightly better than average chance that you would use the action, mark the “5" scale. If there is a good
chance that you would not use an action, you would mark the “2" scale and if there is a slightly better
than average chance that you would not use the action, mark the “3" scale.
Action
Introduce myself to the receptionist
Ask the receptionist for an appointment
Enter the prospect’s office
Compliment the prospect
Introduce myself
Wait for an invitation to be seated
Small talk
Agree on what topics to consider
Thank the prospect for his (her) time
Inform the prospect on why I am here
Obtain information about the prospect
Review past sales calls on the prospect
Provide information on my company’s strengths
Provide information on competitor’s weaknesses
Discuss problems faced by the prospect
Obtain information on the prospect’s buying procedures
Discuss the prospect’s needs
Suggest possible ways of satisfying the prospect’s needs
Suggest one or more products to satisfy the prospect’s needs
Provide information on company service policies
Give the prospect literature on the compamy
Ask for a second appointment with the prospect
Thank the prospect for the time given
Shake hands
Greet the receptionist on the way out
Northern Illinois University
Definitely would NOT
use
Definitely would
use
Summer 2010 37
Academic Article
did the validation. The higher the score the more
likely that the employees taken as a group,
believe that the action should be included in the
task (the sales call in the example).
Those actions which both (A) possessed a
frequency of forty percent or higher when the
scripts were initially devised and (B) produced an
average score of “5" or higher in the script
validation study are called “validated norms”.
These are actions which were rated highly in
both studies and therefore should receive
emphasis in the training and supervision
program.
The B-to-B manager may wish to validate the
sequence (ordering in time of performance)
uncovered in the first study. This, however, can
be time-consuming and the manager may elect to
simply employ the sequence employed in the
first study.
If the manager does wish to validate the
sequence, it is necessary to ask each employee in
the second study to duplicate what was done for
sequencing in the first study. The initial step is
for each representative to arrange the actions
under review in rank order of their sequence.
The average rank is then computed by totaling
the individual rank values and dividing by the
number of sales representatives. The result is an
average sequential rank. These can be compared
with those of the first study. If the ranks are very
similar, there is strong evidence that the
sequence suggested in the first study is valid and
should be followed. On the other hand, if the
ranks differ substantially, caution is urged in
employing the first study suggested sequence.
The example used in this article employed a
script for making an initial call upon a new
prospect. However, scripts can be employed for
virtually every job and every task, including
preparing sales forecasts, prospecting, computer
applications, overcoming objections, and closing
sales. The process of devising and validating
scripts described herein is essentially the same
for all types of positions and tasks.
DEVELOPING SCRIPTS–PERSONAL
AND EXPERT BASED METHODS
Essentially, two methods, the personal and
expert based, can be used to generate sales
scripts. The discussion to this point has been on
expert based methods used to determine
content for sales training and supervision
programs. Conversely, personal based scripts are
founded upon past experiences of individual
salespersons and are intended for their own
personal use. In this case, individual sales
representatives review their past experiences and
seek any new knowledge that might benefit their
sales presentations. Then they develop sales
presentation models or configurations which can
serve to guide the development of sales
presentations for individual prospects. Most of
the suggestions regarding their use come from
recalled memories and written accounts of
successful experiences–the clinical approach–
rather than from structured research projects.
The suggestions which appear in the discussion
below were derived from such clinical
experiences, so readers are well-advised to
consider adopting those which appear to be
appropriate for them and rejecting the others.
OVERVIEW OF EFFECTS
Sales presentations which are based upon scripts
have certain strengths and weaknesses.
Ordinarily, care should be taken not to view the
script as a vehicle for the use of a memorized
presentation. In turn, memorized presentations
have disadvantages, as follows (Futrell, 2002):
Vol. 10, No. 3
38
Journal of Selling & Major Account Management
Weaknesses of the Memorized Presentation:
1.
It presents features, advantages, and
benefits that may not be important to the
buyer.
2. It allows for little prospect participation
3.
It is impractical to use when selling technical
products that require prospect input and
discussion.
4. It proceeds quickly through the sales
presentation to the close, which may require
multiple closes.
5. This method offers no opportunity for the
salesperson to tailor the presentation to the
needs of the specific customer (Weitz,
Castleberry & Tanner, 1998).
On the other hand, scripts do share some
advantages that are also advantages of
memorized presentations, as follows:
Strengths of the memorized presentation
1.
It ensures that the salesperson gives a wellplanned presentation and that the same
information is discussed by all of the
company’s salespeople.
2.
It both aids and lends confidence to the
inexperienced salesperson
3.
It is effective when selling time is short, as
in door-to-door or telephone selling
4.
It is effective when the product is
nontechnical, such as books, cooking
utensils, and cosmetics.
5. This presentation type brings new
salespeople up to speed quickly and gives
them confidence (Weitz, Castleberry, &
Tanner, (1998).
6.
The method provides suggestions as to how
to answer objectives and close the sale (Lill
& Lill, 2008).
Northern Illinois University
In general, the use of a script does not require a
memorized presentation. Scripted presentations
do not necessarily share the shortcomings listed
above that are associated with memorized
presentations, but do share some of the same
advantages.
In order to be effective, scripts should not be
restricted to verbal communication. In addition,
they can include listening and body language
behavior. These may be equally or more
important than verbal communication.
As for, personal based scripts, these ordinarily
are not canned presentations that are read
verbatim to a prospect. In fact, salespeople who
utilize prepackaged materials are often not
effective. The development process involves first
reflecting on past experiences in search of
specific words or phrases that are very powerful
in educating, persuading, and convincing
prospects (Karasik, 2003). Salespeople can keep
logs of successful behaviors that can be repeated
in the future. From sources such as these, the
sales representative can create modules that can
be personalized and organized flexibly to provide
a blueprint that provides a structure for the
selling process from beginning to end, as needed.
Well-rehearsed lines can be produced that
address questions that may arise. The goal is to
set the stage for a sales call that is personalized
for each prospect. Script procedures should be
varied to meet the characteristics of individual
target customers, in order to permit consultative
selling.
It is a misconception that scripts are
unnatural and kill spontaneity. Scripts sound
natural when they are carefully prepared and
rehearsed. Scripts can allow sales representatives
to concentrate on their most important subject –
prospects - and create modules that can work as
openings, discussion points, and closings, and
Summer 2010 39
Academic Article
then practice interchanging them, using colorful
words and mental images that match the
personality and style of the sales representative
and the prospect (Karasik, 2003).
It is generally agreed that personal scripts do not
require mimicking word-for-word messages, but
need only consist of written dialogues or
checklists of points and counterpoints to use
while conversing with customers. “Without such
scripts we can waste huge amounts of time
repeating ourselves, rambling and ad-libbing–
losing business along the way–Scripts can build
trust with customers, clear a way to mystique of
buying, and position the sales representative as a
trustworthy and competent advisor” (Miller,
1999). It is recommended that scripts be adapted
to one’s own personality and style and that
superlatives such as “phenomenal,” “dynamite,”
and “fantastic” be avoided (Miller, 1999).
Another source suggests the following points to
consider for generating a sales script (ComafordLynch, 2008).
•
Start with your first, last, and company name
and what you are selling.
•
Continue with two compelling features of
what you are selling
•
Finish with a request for commitment by
asking: Is this something you want?
The script should be 45 words or less and take
about 30 seconds to enunciate. If the prospect
does not answer your question, they were
probably not listening, so repeat it. Practice your
offer with a 14 year old. If he or she understands
it, it’s likely clear and concise enough.
McGall (2004) offers another set of guidelines
for a personal script:
•
Don’t be too rigid–Make the script sound
natural, not contrived and memorized.
•
Get to the point-You have 20 seconds to
reduce tension and create interest.
•
Know the script cold to prevent fumbling
from point to point. Practice reading it
aloud.
•
Research prospects in advance to avoid
posing irrelevant questions.
•
Skip trite language–substitute “Can you
spare a minute?” for “How are you today?”
•
Look for business beyond the call-build
relationships rather than always looking for a
sale.
•
Encourage the prospect to talk–the sales call
is a dialogue not a monologue.
DISCUSSION
This paper has been concerned with the
employment of scripts by B-to-B managers, as a
means of selecting sales topics for training and
supervision programs and for developing
personal scripts by individual sales
representatives for their own use. This paper has
presented citation and logical support for the
contention that scripts have potential for B-to-B
sales managers and sales representatives, but
their coverage in the literature has declined
substantially.
The script creation process and supporting
information give practitioners a considered view
of some useful training and supervision
applications and generally add to the toolbox of
trainers and managers (Lyons, 2006).This being
the case, researchers in the selling field are welladvised to consider scripts in their research and
writing endeavors. Sales managers, trainees, and
sales representatives would also be well advised
Vol. 10, No. 3
40
Journal of Selling & Major Account Management
to consider scripts as important tools. The
discussion above has embraced a generalized
methodology for selecting relevant training and
supervision topics and the application of scripts
in this process. In turn, scripts were described
and illustrated and a process for devising and
validating these tools was set forth through an
example.
Further, suggestions for personal script
development were set forth. It is recommended
that sales managers and sales representatives
consider the utilization of this tool, as a means of
enhancing sales productivity.
The training and supervision example used in
this article employed a script for making an initial
call upon a new prospect. However, scripts can
be employed for virtually every job and every
task, including preparing sales forecasts,
operating machinery, computer applications,
evaluating customer credit-worthiness, and
company accounting procedures. The process of
devising and validating scripts described herein is
essentially the same for all types of positions and
tasks.
The utilization of scripts as a means of selecting
topics for B-to-B training and supervision
programs appears to have considerable potential.
Managers are well-advised to consider the use of
this technique, as a means of enhancing
employee performance.
The discussion also highlighted the use of
personal scripts for the use of individual sales
representatives. These individuals can employ
these for their own use. In turn, sales managers
can encourage the development and use of such
scripts by their sales force members. It appears
that these tools. have proven to be of value to a
number of firms.
Northern Illinois University
Overall, the discussion has made a case for the
consideration of script use in B-to-B firms. The
literature has been infrequent on this topic
during recent periods, but the techniques appear
to possess lasting merit. Continued research and
writing in this area are recommended.
Robin T. Peterson, Professor, Department of
Marketing, College of Business Administration
and Economics, New Mexico State University,
Las Cruces, NM 88003 (505-646-5748
Ropeters@nmsu.edu
Sarah Fischbach, Ph.D. Candidate, New Mexico
State University. fischbac@nmsu.edu
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Vol. 10, No. 3
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Journal of Selling & Major Account Management
Using Golf as a Sales Tool
By Dan C. Weilbaker, Ph.D.
This article will explain how golf can be used as a tool for business-to-business salespeople. Playing golf
has the advantage of an extended amount of downtime in which conversations can be conducted. It also
has the advantage that the buyer is with the salesperson for a minimum of four hours. However, contrary to popular belief, not many sales are closed on the golf course. So then what happens on the golf
course? Golf allows the buyer and seller to build relationships which includes gathering personal and
business information as well as identifying business issues or concerns the buyer may be having at the
moment. Therefore, it is not about the golf but about building a unique history with buyers that cannot
be replicated easily by other salespeople. Thus, it provides a unique four hour sales call.
INTRODUCTION
Doing business on the golf course is not a new
concept. However, the myth is that salespeople
go to the golf course to close deals. Well that is
not exactly the correct perception of
businesspeople and golf. In fact a salesperson is
less likely to close a deal (get the order) on the
golf course than in the office during a regular
sales call. So is golf really a tool that can benefit
both the buyer and seller? The answer is a
resounding YES! Despite the fact that some
industries, like pharmaceuticals, have banned the
use of golf as a means to entertain in order to
obtain commitment to use a specific product, for
many business-to-business industries the use of
golf still provides a means to assist in the selling
process. The key learning’s of this article are that
you need: a minimum level of golf skills
(consistency in striking a golf ball), an
understanding of etiquette, and a plan on how to
use the time with the customer most efficiently.
NECESSARY GOLF SKILLS
In order to use golf as a selling tool a salesperson
needs to have some golf skills so that they do
not slow the play down and irritate the people
golfing with them and behind them. What
Northern Illinois University
would be reasonable skills to have? The ability
to strike the ball consistently (that is not whiffing
or dribbling the ball a few feet at a time) is a
minimum. The average golfer today will strike
the ball over 100 times during a round (18 holes).
Considering that most golf courses have a Par of
72, this means the golfer averages between 1 and
2 strokes over Par for each hole. The fact that
there is a difference in skill levels between the
buyer and seller is not really of great concern
(except for the speed of play) because the use of
handicaps can equalize the game. For example, if
the buyer typically scores around 90 for 18 and
the seller scores around 100 then the simplest
thing to do is for the buyer to give the seller 10
strokes per 18 holes. Determining which holes
the strokes are applied can be determined by the
golf course you play. Since every golf course
rates each hole of difficulty, the seller would
receive a stroke on each of the 10 hardest holes.
On the remaining 8 holes they would play even
(no strokes given).
Understanding Golf Etiquette
Since golf has often been referred to as a game
of honor and integrity, it important to make sure
golf etiquette is maintained. So what does a
golfer need to know in order to not look foolish
Summer 2010 45
Application Article
on the course? The three areas that are most
important are proper dress, personal behavior,
and care of the course. This article will give a
brief (not complete) review of some critical
etiquette issues in each area.
Proper Dress and Equipment
The attire that is worn by each individual is a
reflection of respect and good taste. Whether the
course is private of public the attire is the same.
For men, weather permitting, they can wear
either trousers or knee length shorts and a
collared (short or long) sleeved shirt. For
women, weather permitting, they can wear a
knee length skirt, knee length shorts or slacks
and a collared shirt. If golf shoes are worn they
need to comply with the courses requirements of
either soft spike or metal spike (most are now
soft spike). If no golf shoes are worn then the
shoe must not have a heel of any kind.
The minimum equipment is a set of golf clubs
for every individual, golf balls (enough so that
you do not run out before the round is over),
golf tees, something to mark the ball on the
green and something to repair ball marks on the
green. A golf glove is optional as well as a hat of
visor.
Personal behavior
This area of etiquette is designed to reduce the
possibility of injury, distracting others, and
presenting a professional image. When a person
is preparing to hit the ball, each person in or near
the group needs to be quiet and out of their line
of sight (behind and off center). Since golf is 90
percent concentration and 10 percent skill, the
lack of distractions is important.
If a ball is struck and it is heading toward
another person or group, you need to yell “Fore”
as loud as possible to warn others of an errant
ball.
Language is also very important when playing
business golf. You are not playing golf with you
“buddies” and thus telling inappropriate/off
color/ethnic jokes can be offensive to the
potential customer and should not be told. Also
included is the misuse of language in general.
The omission of obscene or vulgar language is
recommended along with the use of
inappropriate slang.
Care of the course
Golf courses are very fragile and expensive to
operate and maintain in order to allow each
player to play without unexpected course
malfunctions. Thus each golfer needs to be
aware of ways they can help make the course fair
to the players that follow them. The first place to
start is for each player to replace their divots in
the fairway, fix the ball marks on the green and
rake the club marks and footprints in the sand
traps. If any of these activities are ignored then
the players that follow might have their game
disrupted if they find their ball in a divot or
footprint in sand. Since the ball must be played
where it lies then this situation may cause
problems for the golfer. If there is a ball mark (a
depression in the green) between the ball and the
hole, this may interfere with the put and cause it
to be missed. Any and all of these situations may
add strokes to the player’s game. Some courses
provide a mixture of sand and grass seed on each
cart for the golfer to use in divots.
Each golfer needs to replace all divots created by
them and repair their ball mark (on the green)
and one other (since some people do not repair
their marks) as well as rake the sand trap after
use When on the green a golfer should never
step between a ball and the hole.
Vol. 10 No.. 3
46
Journal of Selling & Major Account Management
All of these issues create a hardship for golfers
that follow your group if not done. In addition, if
a cart is being used then it needs to follow the
course rules (path only, 90 degree rule, or open
use). If open use or 90 degree rule is allowed,
then the cart must not come within 30 feet of
the green or near a sand trap. Both of these
areas can be damaged by a cart and are expensive
to repair.
USING GOLF AS A SALES TOOL
Four Hour Sales Call
If you consider that an average round (18 holes)
of golf takes between 4 and 5 hours, this
provides a salesperson with the buyer that is
away from distractions at work and telephone
interruptions. All of these assist in providing an
ideal atmosphere for building relationships.
However, salespeople need to be conscious that
the buyer wants to enjoy themselves and are not
interested in hearing a “pitch”. So how can a
salesperson use golf as a sales tool?
The answer is dividing the time on the course
into three stages (just like a sales call). The three
stages are: Information sharing-personal;
Business issues discussion; and Moving the sale
forward. In each of these three stages it is
important for the seller to remember the content
that is to be covered in each section as well as
the length of time to focus on each.
Information Sharing-Personal
The first stage is to gather and provide
information so that the people involved can start
building a relationship. So when is this done?
Typically, this kind of conversation starts during
the time before the golf starts. Typically, this
kind of conversation starts when each person
arrives at the golf course. How long do you
gather and share information? A rule of thumb is
that the first six holes (over an hour) is
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appropriate for gathering and sharing personal
information. However, that can vary based on
how well the person is known to the salesperson.
If you have not known the person very long or
just met, then more time will be spent since you
need to gather and share more information. On
the flip side, if the person is known well, then
less time will be spent because you already know
much of the information and only need to get
updates since your last meeting.
What kind of information exchange is
appropriate? In general the goal is to find
common ground (Acuff 20011) with the person
and the easiest way to accomplish this is to find
out about them as a person. Things like where
they were raised, where they went to school,
what interests do they have, hobbies, favorite
activities, family, organization, favorite teams,
organizations etc.
Thus in the course of gathering information, you
will be expected to share some of the same
information about yourself. This enhances the
sense of conversation between people and
fosters a more relaxed situation.
Business Issues Discussion
Again, based on the circumstances, somewhere
around the seventh hole you need to start
shifting your questions and discussions away
from personal information and guide them
toward the customer’s business. It is important
not to be abrupt and stop discussing personal
issues and focus only on business issues. One
way to accomplish this is to interject a business
question or two before you are ready to
completely shift the topics and also have a few
personal questions you can ask as you are
transitioning to the business issues.
As with information sharing, this phase needs to
last about six holes or over an hour (around the
12th hole) so that you are able to find out enough
Academic Article
to make sure your product/service would be of
value to them. Without problems or issues very
few buyers are willing to change.
Some of the topics that can be discussed so that
the buyer is free to give you information without
fear of being sold to are: identifying current
vendors / suppliers; business issues that concern
them the most; current solutions to issues that
they have encountered; identify any problems /
opportunities. Additionally in the later parts of
this phase the seller may want to start working in
brief discussion of the products you sell (it is
important to not overwhelm the buyer with
product information. What is important to
happen is that the buyer is aware of what you
have and you have just planted a seed. As with
growing any plant- one cannot harvest it just
after planting, so there should no attempt to sell
them here. A few of the benefits that others
have received might be appropriate her but it
should just be informational-not persuasive.
Moving the Sale Forward
Again, based on the circumstances, somewhere
around the thirteenth (13) hole you want to start
shifting you questions and discussions away from
the business issues and start guiding them toward
wrapping up the conversation and figuring out
how the next step. This phase can last through
the rest of the game and even into the 19th hole
(bar/lunch afterwards).
The topics that are appropriate now fall into the
category of reminding the customer of issues
they mentioned or how they solved them and a
bit about your benefits. It also might be
appropriate to trail close (to see how interested
the customer is). Something like, “How would
you feel about looking into new ways of
addressing some of your issues?”
On rare occasion, it even may be appropriate to
ask for the business order or for a commitment
Summer 2010 47
to buy. Again, trying to close a deal on the golf
course is a myth that needs to be exposed. Less
than 10% of business opportunities are closed
while golfing. What is more common and useful
(if there is interest on the part of the buyer) is to
close by setting up a meeting in the buyer’s office
for a future date.
Suggestions How to Make it Better
There are several things that can be done to
improve the quality of the time you spend with
the potential client. Four crucial caveats to
consider are alcohol, betting, throwing the game
and course selection.
Alcohol (especially beer) has been associated
with golf for a long time and for most friendly
golf games it is a time to let loose and relax.
Thus alcohol consumption is accepted and
sometimes expected so what are you to do? The
answer is ‘moderation”. Remember that this is
not like playing with your buddies. Therefore, it
is alright to have a few beers during the round
but nothing to excess. This is true for two
reasons: first, excessive alcohol can impair your
golf skills and second, excessive alcohol reduces
your inhibitions and increases the likelihood that
inappropriate behavior and language will result.
Neither of which endear you to the potential
customer.
Gambling or betting on the golf is another
issue that is synonymous with this game. So,
what is appropriate behavior for the salesperson?
The salesperson should not invite the customer
to bet however, if the customer initiates the bet
then it is OK to accept. However, there are
several caveats that should be mentioned.
Make sure you know what the bet is (which one
of the thousands of golf betting games: see
www.the g olfe x pert.c om/g olf-on-c ourse betting.php).
Vol. 10, No. 3
48
Journal of Selling & Major Account Management
1. Let the customer set the wager amount
2. Make sure you have enough money with you
to cover any losses
Do not throw the game and let the customer win
Selecting the Course to Play
This is a critical factor in that you do not want
the course to be too hard or too easy for the
player’s skills. Since the salesperson who invites a
customer to play golf is expected to pay for the
experience, it is a good idea to select a course
that does not allow cell phone use while playing.
The no cell phone policy by courses is a way for
the salesperson to get the customer alone
without constant phone interruptions, while
using the course policy to be the villain who
restricts the phone.
Lapniappe
One point needs to be made that is different
from everything in preceding discussion. The
issue concerns women and business golf. Many
women do not engage in business golf for a
variety of reasons. However, if they do not play
they are putting themselves at a great
disadvantage compared to the male counterpart.
By not participating, women miss out on
building a unique relationship with the customer.
In addition they have missed the opportunity to
get to know who the customer is and what they
value.
Ladies, learn to play golf so that you may
participate and level the playing field. Your skill
level does not need to be that of the men, you
just need to be an average player so that you do
not slow the game down. The use of handicaps
can allow any skill level player to compete with
another player of different skill level. Us the
concept of handicaps to make the game as equal
as possible for all concerned.
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As one final thought, if at all possible play from
men’s tee. You can ask to the others to add a
stroke for par 4 & 5 holes and explain that by
teeing off from the men’s tee it will speed up
play. This is important for several reasons.
1. You do not want to be seen as different (by
teeing off from a different tee)
2. You miss out on conversations at the men’s
tee (while you are waiting to tee off after the
men).
CONCLUSIONS
Business golf is an opportunity to get a buyer
alone for four hours and begin or strengthen
relationships. It provides a unique history with
the client that cannot be replicated by other
salespeople. It provides an opportunity for the
salesperson to not only gather information but it
also allows for observation of behaviors that will
be critical for understanding how the customer
thinks, approach adversity, makes decisions, and
approach risk.
The key to a successful business golf outing is
not the sale but the creating or deepening of the
relationship while having fun. Never let you skill
level keep you from participating and always be
positive and encouraging when playing golf with
a customer.
Dan Weilbaker, McKesson Pharmaceutical
Professor of Sales, Department of Marketing,
College of Business, Northern Illinois
University, DeKalb, IL 60115 (815)753-6216
dweilbak@niu.edu
REFERENCES
Acuff, Jerry with Wally Wood, The Relationship
Edge, John Wiley & Sons, Inc., 2007,
Hoboken, New Jersey.
www.thegolfexpert.com