Subscription form Journal of Selling & Major Account Management NAME BUSINESS/SCHOOL ADDRESS ZIP & STATE TITLE CITY COUNTRY Domestic Individual $50 Foreign Individual $70 Check enclosed Domestic Corporate $60 Foreign Corporate $80 Bill me later Mail this form to: Dan C. Weilbaker, JSMAM 128 Barsema Hall Northern Illinois University DeKalb, IL 60115 Or fax it to 815.753.6014 We appreciate your help! If you know of colleagues who might benefit and would be interested in subscribing to The Journal of Selling & Major Account Management, please forward one of the subscription forms. Thank-you, Dan C. Weilbaker, Editor Place Stamp Here Dan C. Weilbaker Journal of Selling & Major Account Management Department of Marketing 128 Barsema Hall Northern Illinois University DeKalb, IL 60115 FOLD HERE Fall 2006 CONTENTS JSMAM VOLUME 6, FALL 2006 5 From the Editor By Dan C. Weilbaker, Ph.D. ACADEMIC ARTICLES 6 Field Sales People and Wireless Computing Technology: Testing Innovation-Diffusion Theory By Susan DelVecchio, S. Scott Nadler, and James Zemanek Authenticity in the Personal Selling Context 17 By Allen D. Schaefer and Charles E. Pettijohn A New Look at Industrial Sales and Its Requisite Competencies 27 By Clifford S. Barber and Brian C. Tietje APPLICATION ARTICLES Rethink Those Tips and Tactics: Powerful Negotiation Is Simple 43 By Brian Dietmeyer How Can an Invisible Salesperson Become Visible Again 46 By Joe Heller What Does It Take to Become a Great Salesperson 49 By John Costigan Mission Statement The main objective of the journal is to provide a focus for collaboration between practitioners and academics for the advancement of application, education, and research in the areas of selling and major account management. Our audience is comprised of both practitioners in industry and academics researching in sales. ©2006 By Northern Illinois University. All Rights Reserved. ISSN: 1463-1431 Vol. 6, No. 4 Journal of Selling & Major Account Management Strategic partners and sponsors BALL STATE UNIVERSITY INDIANA UNIVERSITY NORTHERN ILLINOIS UNIVERSITY UNIVERSITY OF HOUSTON ILLINOIS STATE UNIVERSITY BAYLOR UNIVERSITY Northern Illinois University UNIVERSITY OF AKRON OHIO UNIVERSITY KENNESAW STATE UNIVERSITY WILLIAM PATERSON UNIVERSITY UNIVERSITY OF TOLEDO Fall 2006 Manuscripts 1. Articles for consideration should be sent to Editor: Dan C. Weilbaker, Department of Marketing Northern Illinois University, DeKalb, IL 60115 USA or by fax: 001 815-753-6014 or by Email to dweilbak@niu.edu 2. Articles in excess of 6000 words will not normally be accepted. The Editor welcome shorter articles, case studies and reviews. Contributors should specify the length of their articles. 3. A manuscript copy of the contribution along with four (4) copies should be submitted if possible with a copy on 3.5" diskette in Microsoft Word format, author's name(s) and short title of the article. Alternatively, the contribution may be emailed to the above address as a Microsoft Word document; however contributors are advised to check by telephone that submissions have been received. Neither the editor nor Northern Illinois University, Department of Marketing accepts any responsibility for loss or damage of any contributions submitted for publication in the Journal. Biographical note - supply a short biographical note giving the author(s) full name, appointment, institutions or organization / company and recent professional attainments. Synopsis - an abstract not exceeding 100 words should be included. Diagrams / text boxes / tables - should be submitted without shading although a copy of how the authors wishes the diagram to appear shaded may be submitted by way of illustrative example. These should be numbered consecutively and typed on separate pages at the end of the article with an indication in the text where it should appear. References - should be cited using the Harvard method. No footnotes should be used for references or literature citations. Wherever possible, full bibliographic details (e.g., volume number issue number or date, page numbers publisher year of publication) should be included. Footnotes - for clarification or elaboration should be used very sparingly - they may be indicated in the text and at the beginning of the footnote by the use of asterisks and / or daggers. 4. Any article or other contribution submitted must be the original unpublished work of the author(s) not submitted for publication elsewhere. 5. Manuscripts should be typewritten using one side of 81/2” X 11” or A4 paper with all margins of 1" and double-spaced. Font style should be Times New Roman in 12 pitch. Footnotes should be typed at the bottom of the page and numbered consecutively throughout the text. 6. Cross references should not be to page numbers but to the text accompanying a particular footnote. 7 An address for correspondence (including Email address) should be supplied as well as a telephone and fax number at which the author(s) may be contacted. . 8. Authors undertake to check proofs and to return them within the specified date. They should be free from grammatical, syntax or spelling errors. Failure to return proofs will result in the publication of the article at the editor’s discretion in which event the editor does not accept liability for any changes made to grammar syntax, spelling or other changes deemed necessary. The editor reserve the right not to accept any alterations or corrections made. PERMISSIONS The copyright owner’s consent does not extend to copying for general distribution, for promotion, for creating new works, or for resale. Specific written permission must be obtained from the publisher for such copying. Subscriptions To subscribe to Journal of Selling & Major Account Management, please go to www.cob.niu.edu/jsmam/subscription.asp or mail the subscription form to The Journal of Selling & Major Account Management,. 128 Barsema Hall, Northern Illinois University, DeKalb, IL 60115. Subscription prices are: U.S. Individual-$50; U.S. Corporation-$60; Foreign Individual-$70; Foreign Corporation $80. 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—Ieva Engel Professional Sales Program Secretary Department of Marketing Northern Illinois University iengel@niu.edu Vol. 6, No. 4 Journal of Selling & Major Account Management EDITORIAL BOARD Rolph E. Anderson Drexel University Mark C. Johlke Bradley University Ramon A. Avila Ball State University Eli Jones University of Houston Sonke Albers Christian-Albrechts-University of Kiel Buddy LaForge University of Louisville Terri Barr Miami University—Ohio Terry W. Loe Kennesaw State University Jim W. Blythe University of Glamorgan Daniel H. McQuiston Butler University Richard E. Buehrer University of Toledo Pete Naude Manchester Business School Steven Castleberry University of Minnesota—Duluth Stephen Newell Western Michigan University William L. Cron Texas Christian University Nigel F. Piercy University of Warwick Laura Cuddihy Dublin Institute of Technology Richard E. Plank William Paterson University René Y. Darmon ESSEC Business School Gregory A. Rich Bowling Green State University Dawn R. Deeter-Schmelz Ohio University Rick Ridnour Northern Illinois University Bill Donaldson Aberdeen Business School Elizabeth Rogers Portsmouth Business School Sean Dwyer Louisiana Tech University Jeffrey K. Sager University of North Texas Paolo Guenzi SDA Bocconi Charles Schwepker, Jr. Central Missouri State University Jon M. Hawes University of Akron C. David Shepherd Kennesaw State University Earl D. Honeycutt Elon University William A. Weeks Baylor University Thomas N. Ingram Colorado State University Michael R. Williams Illinois State University Northern Illinois University Fall 2006 From the Editor This issue completes our first year of publishing the Journal of Selling & Major Account Management. We have made great strides in advancing the mission of the journal. Specifically, we have published nine academic articles that provide new insights into sales and major account management for practitioners while at the same time providing a quality outlet for those sales academics who are pushing the envelope of our knowledge in business-to-business sales. We have also published twelve application articles written by topic experts in a variety of areas related to selling and major account management. These articles are positioned so that salespeople and sales managers are able to gain specific knowledge about a topic and then put it into action immediately. The ultimate goal is to help salespeople and sales managers improve their performance. It continues to be my belief that The Journal of Selling & Major Account Management will be the premier place where salespeople, sales managers, and sales academics can go to identify new trends as well as improve performance through the identification and use of knowledge. In this fourth issue we provide three academic articles and three practitioner articles. The first academic article deals with something close to hearts of salespeople, and it deals with wireless technology. The second article deals with an attribute (Authenticity) which may have a large impact on selling performance. The final academic article re-examines the industrial salesperson and the qualities and competencies needed for success. The three application articles cover a wide range of topics even though they all related to improved sales performance. The first article positions negotiations differently in that it is not loaded with dozens of steps or techniques. It simply focuses on two questions. The second article focuses on how a salesperson can become a valued person to a customer. The third takes a look at one quality in a salesperson that can make the difference between average and great. It is our hope that every reader can find at least one important idea or application that can help them improve their performance in their quest to become an outstanding sales professional. We are grateful to the MBA Program at Northern Illinois University and the University Sales Center Alliance for their financial support, which helped us produce and distribute the journal while we continue to build our subscriber base to become self-supporting. Our thanks also go to the dedicated members of the Editorial Review Board, our ad hoc reviewers, and finally our subscribers. Dan C. Weilbaker, Ph.D. Editor and McKesson Pharmaceutical Group Professor of Sales Northern Illinois University Vol. 6, No. 4 6 Journal of Selling & Major Account Management Field Sales People and Wireless Computing technology: Testing Innovation-Diffusion Theory By Susan DelVecchio, S. Scott Nadler, and James Zemanek This study of industrial sales people examined wireless computing technologies from the adoption-diffusion theory perspective. A comparison of adopters and non-adopters found two variables (i.e. age and education) are significantly different. As hypothesized, younger salespeople and salespeople with more formal education tend to be adopters. This may suggest a successful pattern of adoption and diffusion of these technologies may flow from the younger to older salespeople –and from those with more academic credentials to those with less. Thus sales teams or workshops that increase the interaction between senior salespeople and those with recent college level computer exposure may speed the adoption-diffusion process. Introduction Wireless technology and mobile computing offer the field salesperson obvious advantages. A geographically dispersed sales force can gain faster and easier access to data. Field salespeople can perform more tasks (such as generating quotes, getting product specifications and entering orders) in a buyer’s office –and in a much shorter period of time. Benefits like these are compelling and support the notions proposed by theorists. The characteristics of wireless innovations are especially well suited to the needs of this specific adopter, the field salesperson (Edwards 2006; Gilbert 2004; Horowitz 2005; Thompson 2006; McWilliams 2004). Given these capabilities and the resultant benefits, it is surprising to find the majority of salespeople have been slow to adopt the more mobile forms. While salespeople have embraced sales force automation, they tend to do so in more conventional wired and officebound forms (Widmier, Jackson, and McCabe, 2002). If this technology offers benefits to all field sales organizations, why are some adopting and others are not? Using the conceptual framework offered by innovation diffusion theory, this study compares field salespeople who have adopted wireless forms of computer technology to those who have not. Innovation diffusion Northern Illinois University theory suggests both individual adopter characteristics as well as contextual characteristics may explain the adoption rate of new technologies (Rogers, 1995). The subsequent sections describe the relevant individual salesperson and contextual characteristics that differentiate field salespeople who adopt and do not adopt this form of information technology. Differences in Characteristics Salesperson Individual Since the field salesperson does not have the benefit of frequent face-to-face interaction with co-workers, one could argue the characteristics of this individual adopter are especially important. Innovators are more likely to be highly involved, to engage in cognitively more complex problems and to be less risk adverse (Rogers, 1995). Innovators within the information technology area tend to portray these three qualities in both attitudinal and demographic indicators. Specifically, computer technology innovators or early adopters tend to set themselves apart in terms of their motivation, education and age. More risk taking and faster adoption tend to occur when the adopter is highly independent, confident and possesses psychological strength (Wejnert, 2002). Part of this strength and independence in the field salesperson takes the Fall 2006 form of intrinsic motivation. Intrinsic motivation of the industrial salesperson is tied to their feelings of autonomy and self-efficacy (Ingram, Lee, and Skinner, 1989; Tyagi, 1985). Mobile computing allows the salesperson to operate independently, facilitates access to numerous sources of information – and as a result enhances the buyers’ opinion of the salesperson (MacDonald and Smith, 2004; Vanstone and Yates-Mercer, 2002). Cognitive evaluation theory suggests that the drivers of intrinsic motivation include the level of autonomy, control and self-efficacy (Deci, Connell, and Ryan, 1989). The relationship between intrinsic motivation and computer use bears out these expectations. IT researchers have repeatedly found associations between intrinsic motivation and user’s perceptions of computer ease of use (Davis and Wiedenbeck, 2001; Venkatesh, 1999). Since these perceptions are precursors to actual use, one might expect intrinsic motivation will be higher for mobile users than nonusers. Thus the following hypothesis is suggested: H1: Adopters of wireless technology will be more intrinsically motivated than non-adopters of mobile technology. Familiarity with the innovation speeds its adoption (Rogers, 1995). Because younger salespeople have had more exposure to computers (in both educational and entertainment venues), studies frequently find significant differences in the age of workers who adopt a technology and those who do not. These differences seem to affect work-related behaviors such as performance on computerbased tasks (Czaja and Sharit, 1998; Czaja et al., 2001) and computer skill acquisition and retention (Gattiker 1992). These results in the non-sales setting parallel those found in various sales settings. These settings include agricultural products industry (Harris and Pike, 1996), real estate and telecommunication sales (Speier and Venkatesh, 2002). If age is an indicator of wireless or mobile computing familiarity and if 7 these three sales settings are widely applicable, then one might expect an inverse relationship between ages of industrial salesperson adoption of wireless technology. Therefore the following hypothesis is suggested: H2: Adopters of wireless technology will be younger than non-adopters of mobile technology. Innovation diffusion theory claims tolerance for risk is higher when the adopter employs more complex cognitive processes and uses a wider array of sources of information. To the degree that formal education encourages these cognitive processes or increases these information sources, then one might expect adopters will have more formal education. Education was certainly an important factor for consumer’s adoption of PC’s in their homes (Schwartz, 1988). Home use of personal computers may not, however, be seen as threatening or intimidating as workrelated use of personal computers (Keillor, Bashaw, and Pettijohn, 1997). In fact, a study comparing PDA use in both an education and work-related context ran counter to what one might expect. Jones, Johnson and Bentley (2004) did not find a positive association between education and PDA use. Thus, the relationship between education and adoption is not a foregone conclusion – and worthy of further study. Consistent with the expectations of innovation diffusion theory, this study will test the expectation that adopters will possess more formal education. These findings lead to the following hypothesis: H3: Adopters of wireless technology will have higher levels of education than nonadopters of mobile technology. Differences in Selling Context Adopter’s willingness and ability to adopt new technology is constrained or facilitated by the environmental context. These contextual (or external) issues have a permissive effect and the presence or absence of these externalities largely Vol. 6, No. 4 8 Journal of Selling & Major Account Management determines the decision to adopt (James, 1993). Since the salesperson operates at the boundaries of the organization, these externalities can have a dramatic affect on his or her work environment. Certainly the degree of competition the salesperson faces everyday may make the sales task either predictable or turbulent. Industry turbulence influences the degree to which organizations adopt new technologies – and could affect the individual salesperson as well (Galskiewicz and Burt, 1991; Mizruchi, 1993). Innovation diffusion studies are a little less clear on just what effect a turbulent industry would have. When the industry is highly changeable, turbulent and competitive, this may lead to faster rates of initial adoption – but to slower rates of subsequent diffusion (Wejnert, 2002). In their qualitative study of 19 firms’ use of e-commerce, Kettinger and Hackbarth (2004) found their reasons for adoption were less a result of externally imposed industry pressures. Not all studies agree. In their empirical analysis of over 160 survey responses, Schillewaert et al. (2000) found sales managers’ acceptance of information technology is likely to be in response to industry pressures. If the nature of the selling context is highly changeable- and if a salesperson’s competition is responding to the fast pace of change with innovative use of IT, then one might expect industry turbulence will encourage risk taking and subsequent adoption. Therefore the following hypothesis is presented: H4: The adoption of wireless technology by sales people would be greater in industries that are characterized by higher levels of turbulence. Adoption behavior cannot occur if the resources are not available to the salesperson. In their comparison of various technology acceptance models, Taylor and Todd (1995) found resources to be an over-riding factor. Given larger firms tend to have more resources (e.g. expertise, support, and finances) the size of the firm may affect salesperson adoption of more innovative forms of technology such as wireless technology. Meta-analyses do tend to support innovation Northern Illinois University diffusion theory proposals on resources – and found size was an important factor in manufacturing firms (Damanpour, 1992). Unfortunately the meta-analyses were less conclusive on the degree to which the size of the firm affects initial adoption. A review of IT and sales literature is similarly less conclusive. Smaller firms are more homogeneous, have less bureaucratic ways of making adoption decisions—can move faster to adopt. Smaller firms feel they have had more productivity improvements as a result of investments in sales force automation (Keillor, Bashaw, and Pettijohn, 1997). While smaller firms feel they stand to gain they do not take actions based on these feelings. In their survey of manufacturers, Rivers and Dart (1999) found smaller firms are somewhat less likely to invest in sales force automation. On the other hand, larger firms have more resources, are able to absorb risk, tend to have specialized IT support staff that assist users. Anecdotal evidence implies larger firms tend to make more use of innovative forms of sales force automation. The most widely publicized examples of wireless technology tend to describe deployments made by large firms such as Pfizer and United Pipe and Supply (Gilbert, 2004; Shim, 2004). This form of wireless technology is innovative and some would argue still developing (Chan et al., 2002). Given this stage of product development, wireless use is more complex than other forms of IT (that is it may require more technical/service support). This type of support and ability to address the complexities may be more closely associated with larger firms (Bajwa and Lewis, 2003). This research led to the generation of the following hypothesis: H5: Sales people employed by firms with larger annual revenues would be more likely to adopt wireless technology than those in smaller firms. 9 Fall 2006 METHOD Subjects and design Surveys were sent to firms engaged in manufacturing (NAICS codes 31, 32 and 33) located in the southeastern part of the United States. Each of the participating firms employed its own sales force. Because mobility and wireless technology was the focus of this study, the sample included only geographically dispersed sales people (i.e. field salespeople, not centrally located). Responses were returned in self-addressed stamped envelopes directly to university researchers to assure confidentiality. Surveys were delivered to 1141 salespeople and usable responses for this study were received from 267 industrial salespeople (267/1141=23.4%). These salespeople were engaged in the sale of a wide array of products: from consumer durables to industrial equipment and supplies (See Table #1 for Distribution of Manufacturing Firms). The questionnaire was designed to measure first user status, then attitudinal items, and ended with a request for demographic information. The two mobile devices used to distinguish adopter from nonadopter were selected to reflect the more innovative salesperson (Gizon, 2002; Tynan, 2004). Adopters were defined as salespeople who indicated the length of use for either Palmtop devices or wireless access for their personal computers. The user status item was framed to ask respondents to estimate how long they used a specific form of hardware in their current sales position. Response categories included “never” and those selecting this category for both wireless devices were categorized as non-adopters. This sample was comprised of approximately 65% nonadopters (nnon=174) and 35% adopters (nadopt=93). Intrinsic motivation was measured using the sixitem scale from Oliver and Anderson (1994) and the coefficient alpha was .74 for this sample (Average 29.39 and standard deviation 6.07). To gauge the degree of turbulence in each of the industries represented in this sample, researchers used outside evaluators. Evaluators with experience in more than one industry can make informed comparisons. Beyond this obvious logic, studies imply industry insiders may be far too immersed in the current industry events to provide sufficiently reliable and valid measures Table 1: Distribution of Manufacturers Total Proportion Manufacture Consumer Non-Durable Products and components 43 16% Manufacture Consumer Durable Products and components 48 18% 78 29% 98 37% Manufacture Industrial machinery or equipment Manufacture Industrial supplies or components Vol. 6, No. 4 10 Journal of Selling & Major Account Management (Buchko 1994). Snyder and Glueck (1982) compared industry insiders to outside experts and found more accurate estimates were generated by the outside experts. Certainly the selection of experts could inject yet another bias and the design employed here sought to diminish this possibility. A pool of MBA students were screened for level of and type of industry experience. Using the same criterion for selecting experts as that developed by Johnson, Sohi, and Grewel (2004) each industry (in this case type of manufacturer) was assigned one of six different values. Each industry expert evaluated the degree of turbulence using previously developed scales (Johnson, Sohi and Grewel 2004). Low numerical values described low levels of turbulence (stable, moderate changes) and higher numerical values described industries characterized by intense competition, radical change and dynamic markets. The industries in this sample represent a crosssection of turbulence levels since these values spanned the range of 1 to 6. The number of the industries falling into one of these six levels was not disproportionately high in any one of the six levels. More specifically the proportions of ratings from low to high were 25%, 25%, 12%, 9%, 14% and 15%. This distribution seems to be comparatively heterogeneous and represents a cross-section of stable to turbulent industries [i.e. (Johnson, Sohi and Grewel’s 2004 study resulted in a distribution of 4%, 24%, 15%, 13%, 15%, 29%).] Results MANOVA was used to analyze the data in order provide for stricter analysis and to avoid potential errors caused by comparing five sets of averages. This provided a stringent comparison of adopters to nonadopters on all five hypotheses simultaneously. Overall, MANOVA results (significant) supports the notion adopters Table 2 : Results of Overall MANOVA F Value 3.00 (.0121) Wilks Lambda .9395 Roy’s Greatest Root .0644 Variable Univariate F (prob) User Nonuser n=93 n=174 Intrinsic Motivation Age 29.14 3.28 29.06 3.62 .00 8.10 (.9617) (.0048) Education 2.74 2.42 4.32 (.0387) 3.12 3.47 3.01 3.42 .35 .64 INDIVIDUAL ATTRIBUTES ORGANIZATIONAL ATTRIBUTES Industry Turbulence Firm Annual Revenues (.5560) (.4241) Bold and Underlined means are significantly different at a probability value of .05 or less (Scheffe pairwise comparison). Northern Illinois University Fall 2006 differ from non-adopters (See Table #2). Because some of our data was categorical we supplemented the overall MANOVA test of average differences with a Chi-square test for 11 differences in proportions (See Table #3). Results from both tests converge and reflect the same pattern. Generally the direction of all of the averages was as hypothesized, with two of Table 3: Proportion of Users and Nonusers: Age, Education and Size of Firm Proportion of User Proportion of Non Users (n=93) (n=174) Age Under 25 3.23% 2.30% 25 to 34 21.51% 13.22% 35 to 44 31.18% 31.03% 45 to 54 31.18% 28.74% 55 to 64 10.75% 22.99% 2.15% 1.72% 65 or more Proportion of User Proportion of Non Users (n=93) (n=174) Education High School 6.45% 21.84% Some College 31.18% 30.46% College Degree 48.39% 37.93% Some Graduate School 9.68% 3.45% Graduate Degree 4.30% 6.32% Revenue Proportion of User Proportion of Non Users (n=93) (n=174) $2.5 to 5 million 11% 13% $5 to 10 million 6% 11% $10 to 20 million 27% 26% $20 to 50 million 44% 28% $50 to 100 million 6% 14% $100 to 500 million 5% 7% Vol. 6, No. 4 12 Journal of Selling & Major Account Management the five hypotheses being statistically significant. Individual means were compared using both univariate F’s as well as Scheffe pairwise comparisons (both test statistics evaluated at .05 probability level or less). The two significant differences were both attributes of individual salespeople. Adopters tend to be younger than non-adopters. Among the users of mobile computing devices, approximately 56% of the salespeople were younger than 45 and approximately 53% of the non-adopters were 45 or older (See Table 3). H2 hypothesized that adopters would be younger than non-adopters. This hypothesis was supported and significant at the .05 level. H3 hypothesized that adopters would have higher levels of education than non-adopters. This hypothesis was supported and significant at the .05 level. Among the non-adopters of mobile computing devices, approximately 52% of the salespeople achieved a formal level of education at less than a complete four year college degree (i.e. the highest level of education completed was some part of college or high school) while 62% of users had completed undergraduate college degree or higher. None of the hypotheses regarding the organizational attributes were supported. H4 hypothesized that the adoption of technology by sales people would be greater in industries that are characterized by higher levels of turbulence. H5 hypothesized that sales people employed by firms with larger annual revenues would be more likely to adopt technology than those in smaller firms. While the pattern of the differences in the fourth and fifth hypothesized comparisons were in the direction expected they were not significantly so. Thus, these two hypotheses were not supported. Conclusions Two comparisons of adopters and non-adopters were substantial –and both of these differences existed at the individual salesperson level. This pattern is consistent with analyses of Northern Illinois University comprehensive models which conclude individual differences explain over half of the variation in perceived usefulness of a new form of information technology (Agarwal and Prasad, 1999). In this sample of industrial salespeople, the two significant individual level variables were age and education. The degree of difference in just these two individual level variables carried sufficient significance to drive fairly stringent overall statistics (testing all, not just two comparisons). While age and education differed, no differences in the salesperson’s motivation level, the size neither of firm nor in the turbulence of the industry were uncovered. Younger salespeople in this sample tended to be adopters. Salespeople with more formal education also tended to be adopters of mobile computing technology. While these findings are consistent with adoption-diffusion stream of research, this finding bears additional attention. Age does apparently identify those salespeople who are going to be more receptive, but we still do not know yet precisely why. As with any fruitful research effort, this study suggests a focal point for yet more attention. What are the cognitive, affective – or even experiential mechanisms by which younger salespeople are faster to adopt? Studies which compare attitudinal as well as demographic characteristics (more specifically the combination of age and computer-related venue use) may explain why younger salespeople are faster to embrace this form of technology. If more formal levels of education foster more complex cognitions and a wider array of source of information (as some research suggests), additional efforts examining types of complexity or sources relevant to IT technology could be fruitful. This type of information may help managers convert the more recalcitrant and resistant salespeople. Contrary to expectations, intrinsic motivation levels did not indicate any significantly higher level for wireless users than non-users. This may be in part attributable to the type of compensation or control system. An intrinsically Fall 2006 motivated salesperson (who is commissionbased and part of an outcome-based control system) may be less receptive to investing the time in learning how to use a new form of computing technology. This salesperson may be focused on making as many sales calls as possible since their compensation based on generating revenue. They may see new wireless forms of hardware as an attempt by the home office to hand off administrative chores. Alternatively this lack of significant differences may have more to do with the software than the hardware. In a study of PDA use by salespeople Shim (2004) found satisfaction levels were not significant for hardware- but did find differences in terms of software features. While this sample provided insights to a cross section of users and technology, more research could focus on a narrow range of mobile computing software applications. The selling contexts (i.e., size of firm and turbulence of industry) were not substantially different for salespeople using wireless compared to salespeople who are not. If wireless is still at the infancy stages of technological development, then these findings may not be surprising. The selling contextual factors may play more of a part during the diffusion stage than in the initial adoption stage of mobile computing technology. At this point in the adoption of wireless computing capability this may imply that organizations or general industry issues are not as immediate or influential as expected. Wireless is touted as the next great wave of computing. The profile of non-adopters in this sample may suggest this wave has substantial distance to cover before it crests. Managerial Implications Like any good theory, however, innovationdiffusion lends itself to practical solutions. Theoretically adoption is facilitated when the new technology can be observed first hand. Tests of this theory show the single most influential source of observation is co-workers 13 (Brancheau and Wetherbe, 1990). Given the age and education differences, sales managers may consider matching younger with older sales representatives on various team projects or in training exercises. In these assignments the younger or more formally educated salespeople can demonstrate the wireless computing capabilities to non-adopters. A standard recommendation to any IT initiative is to support it with thorough training. Findings of our study suggest this may be especially important for older or less educated members of the field sales force. If these groups of salespeople are resisting adoption because of lack of familiarity, then additional training, encouragement and technical support are crucial. Because wireless computing represents a substantial investment (in support services, effort as well as finances) sales managers concerned with getting immediate use should first target the more receptive salespeople. Results of this study indicate those salespeople will be the younger members or those with higher levels of formal education. These two identifiers are clear, unambiguous and unlike attitudinal precursors, are easy to use. Like most easy options, however, using age or education to allocate resources to employees may raise concerns about fairness or equity. From a managerial viewpoint, however, these concerns would represent preferable problems. In effect the salesperson who feels they have not been equitably allocated wireless mobile technology is making a form of commitment to use it. In light of the findings here this may mean that the older or less formally educated salesperson (who perceives inequitable allocation) who does complain will then feel more compelled to be an adopter. Efforts aimed at identifying early adopters and increasing diffusion of wireless technology use throughout the sales force are aimed at improving performance. While success stories abound in the popular press, empirical studies show the relationship between IT technology use Vol. 6, No. 4 14 Journal of Selling & Major Account Management and sales performance may not be purely linear (Ahearne, Narasimhan and Weinstein 2004). If a curvilinear relationship exists, then sales managers may be wise to monitor and track productivity indicators over time. 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(2004), “Use of Personal Digital Assistants in Pharmaceutical Detailing: Perceptions of Sales Representatives,” International Journal of Medical Marketing, 4, (1), 47-53. Snyder, Neil H. and William F. Glueck (1982), “Can Environmental Volatility Be Measured Objectively?” Academy of Management Journal, 25 (1), 185-192. Speier, Cheri and Viswanath Venkatesh (2002), “The Hidden Minefields in the Adoption of Sales Force Automation Technologies,” Journal of Marketing, 66, (July), 98-111. Taylor, Shirley and Peter A. Todd (1995), “Understanding Information Technology Usage: A Test of Competing Models,” Information Systems Research, 6 (June), 144176. Testing Innovation Diffusion Theory in the Context of End-User Computing,” Information Systems Research, 12, (2), 115144. Thompson, Peter (2006), “The Wonders of Wireless,” Pharmaceutical Executive, 26 (January 1), 90, 92. Tyagi, Pradeep K. (1985), “Relative Importance of Key Job Dimensions and Leadership Behaviors in Motivating Salesperson Work Performance,” Journal of Marketing, 49, (Summer), 76-86. Tynan, Daniel (2004), “3 Technologies to Watch”, Sales and Marketing Management, April, (156), 4. Vanstone, Mark and Penelope Yates-Mercer (2002), “Getting to the Point: Technology that Sells,” Information Management, July, 812, 32-33. Venkatesh, Viswanath (1999), “Determinants of Vol. 6, No. 4 16 Journal of Selling & Major Account Management Perceived Ease of Use: Integrating Control, Intrinsic Motivation, and Emotion into the Technology Acceptance Model,” Information Systems Research, 11, (4), 342-365. Venkatesh, Viswanath (2000), “Creation of Favorable User Perceptions: Exploring the Role of Intrinsic Motivation,” MIS Quarterly, 23, (2), 239-259. Wejnert, Barbara (2002), “Integrating Models of Diffusion of Innovations: A Conceptual Framework,” Annual Review of Sociology, 28, 297-327. Widmier, Scott M., Donald W. Jackson and Deborah Brown McCabe (2002), “Infusing Technology into Personal Selling,” Journal of Personal Selling and Sales Management, 3, (Summer), 189-198. Susan DelVecchio is an Associate Professor of Marketing and Supply Chain Management and College of Business Research Fellow at East Carolina University. Prior to academe, she held positions in corporate sales and marketing management. She received her doctorate from Virginia Tech in 1992 and her publications have appeared in Industrial Marketing Management, Journal of Business and Industrial Marketing, Journal of Internet Commerce, Journal of Small Business Strategy and others. E-mail: delvecchios@ecu.edu S. Scott Nadler is an Assistant Professor of Marketing and Supply Chain Management, Department of Marketing and Supply Chain Management, at East Carolina University. He received his BA in Agriculture Business in 1983 and his MBA in 1991. He received his Ph.D. in Business Administration and Marketing from The University of Alabama in 2002. His work is in the area of sales, international supply chain management and cross cultural marketing. E-mail: nadlers@ecu.edu James Zemanek is a Professor of Marketing and Supply Chain Management, Department of Marketing Northern Illinois University and Supply Chain Management, at East Carolina University. He received his MBA and Ph.D. from Texas A&M University. His work is in the area of ecommerce and supply chain management has been published in outlets such as the Journal of Business and Industrial Marketing, Journal of Social Behavior and Personality and Industrial Marketing Management. E-mail: zemanekj@ecu.edu 17 Fall 2006 Authenticity in the Personal Selling Context By Allen D. Schaefer and Charles E. Pettijohn Salesperson authenticity (e.g., genuineness) has been generally overlooked by researchers as a potentially relevant personal selling variable. Research in humanistic psychology suggests that authenticity may be highly significant to salesperson performance. This research develops testable propositions designed to evaluate salesperson authenticity and its relationship to personal selling-relevant variables, including: satisfaction, customer-orientation, sellingorientation, job autonomy, role ambiguity, role identity, self-esteem, rejection-sensitivity, and self-efficacy. In the concluding section, the authors discuss the managerial implications of salesperson authenticity and offer suggestions for future research. INTRODUCTION According to Buss (1991), human beings have evolved psychological mechanisms that are sensitive to individual differences. These mechanisms are designed to facilitate the answering of key life questions such as, “Can I trust this person?” “Will this person betray my trust?” Such questions are clearly relevant in potentially risky buyer-seller relationships, where buyers are faced with the need to assess salesperson trustworthiness. Indeed, trustworthiness is ranked by organizational buyers as one of the most important characteristics a salesperson can possess (Hayes and Hartley 1989). The importance of buyer trust suggests that salespeople should behave in a manner that facilitates the development of trusting buyerseller relationships. Intuitively, we would expect the authenticity (i.e., genuineness) of a salesperson’s behavior in the buyer’s presence to impact his/her perceived trustworthiness, as such inauthentic behavior would likely give the impression the salesperson has something to hide. Despite this, salespersons sometimes behave in ways that are less than authentic. For example, they sometimes pretend to agree with customers simply to please them (Saxe and Weitz 1982), laugh on cue at customers’ bad jokes in order to facilitate the flow of sales calls (Gross and Stone 1964), or falsely display friendliness and concern in order to close deals (Nerdinger 2001). While authenticity appears to play a key role in establishing buyer-seller trust and rapport, the topic has received only scant attention from personal selling researchers. In contrast, research in existential-humanistic psychology has reported findings relevant to the construct of psychological authenticity as it occurs among individuals in a broader context. These studies have found authenticity to be positively related to satisfaction, psychological well-being and psychological adjustment (Sheldon et al. 1997), as well as self-esteem (Goldman and Kernis 2002). Moreover, research in industrial psychology involving customer contact workers has shown a substantial negative correlation between authenticity and emotional exhaustion (Brotheridge and Lee 2002). The present study addresses the nature of the relationship between authenticity and other germane personal selling constructs. The purpose of this paper is to develop testable propositions linking authenticity to several relevant personal selling variables. These variables include: role ambiguity, role identity, job autonomy, customer-orientation, sellingorientation, self-efficacy, rejection sensitivity, and job satisfaction. Vol. 6, No. 4 18 Journal of Selling & Major Account Management LITERATURE REVIEW Authenticity Trait theorists in the field of psychology characterize individuals as sets of personality traits which are highly stable across situations, time, and social roles (e.g. McRae and Costa 1984). This perspective implies that authentic behavior involves acting in congruence with one’s own latent traits. This self view is problematic in that it overlooks individual differences in personality stability as well as the manner in which minor environmental changes may contribute to significant personality shifts (Funder and Colvin 1991). In contrast to trait theorists, existentialhumanistic psychology researchers conceptualize authenticity as an autonomous behavioral construct. According to Sheldon et al. (1997), authenticity refers to behavior that is subjectively experienced by the individual as being selfauthored, internally caused, and self-determined. According to this perspective, individuals feel most authentic when they act with a sense of choice and full self-expression. This implies that authentic behavior: (1) is congruent with the individual’s internal experience (e.g., values, attitudes, needs, preferences); (2) occurs without pretense, front or façade (Kahn 1992); and (3) is not engaged in merely to please others or to attain rewards or avoid punishments (Kernis 2003). Individuals are more likely to behave authentically when they are unconstrained by a given role or situation (Sheldon et al. 1997). For example, an individual may behave in a selfexpressed manner in the extraverted salesperson role, while being constrained and introverted in the church member role, primarily because the individual feels more authentic in the salesperson role. Sheldon et al. (1997) measured respondents’ (undergraduate psychology students) felt authenticity levels across five life roles (e.g., student, employee, romantic partner, son/daughter, and friend). The authenticity construct was measured using the following items: “I experience this aspect of myself as an authentic part of who I am,” “This aspect of myself is meaningful and valuable to me,” “I have freely chosen this way of being,” “I am only Figure 1: Model of Proposed Relationships Job Autonomy Job Satisfaction Role Identity + + + Customer Orientation + Rejection Sensitivity Authenticity + - Selling Orientation Role Ambiguity Northern Illinois University SelfEsteem - + SelfEfficacy Fall 2006 this way because I have to be (R),” “I feel tense and pressured in this part of my life (R).” In all five roles, authenticity was shown to be a significant predictor of satisfaction and selfesteem, and respondents that felt more authentic across the five roles also experienced less anxiety, less depression, less stress and less strain. Considering the apparent relevance of these variables in personal selling, authenticity is potentially a key variable to personal selling. DEVELOPMENT OF PROPOSITIONS To facilitate empirical assessments of the relationships which might exist between a sales representative’s level of authenticity and relevant variables, nine propositions were developed. The proposed relationship between authenticity and the nine variables is shown in Figure 1. Each of these propositions can then be further developed into testable research hypotheses, which may then be examined empirically. Role ambiguity Behrman and Perreault (1984) defined role ambiguity as “the degree to which a salesperson is uncertain about expectations with respect to his/ her job, the best way to fulfill known expectations, and the consequences of different role aspect performances.” Role ambiguity may be especially problematic for salespersons due to the boundary spanning nature of their positions, as salespeople are often physically separated from managers, lessening managerial feedback and fostering role ambiguity (Behrman and Perrault 1984). Ambiguity has been positively related to job tension because lack of salient information about role performance apparently results in anxiety and frustration, which in turn leads to job tension (Singh 1993). As noted above, Sheldon et al. (1997) found authenticity to be negatively correlated with stress, strain and anxiety across five roles. This suggests that when people feel constrained and controlled by a given situation, they likely behave differently (i.e., less authentically and selfexpressed) than in situations in which they feel comfortable and genuine. Since role ambiguity likely fosters a controlled and constraining situation: 19 P1: Role ambiguity negatively influences authenticity. Role Identity Identity theorists conceptualize the self as consisting of a collection of identities, each of which is based on occupying a particular role (Stryker and Burke 2000). Identities refer to one's answers to the question 'Who am I?" (Stryker and Serpe 1982). Role identities refer to these answers that are linked to the roles one occupies, such as occupation (e.g., salesperson). In turn, these role identities influence behavior as each role has an associated set of meanings and expectations for the self (Burke & Reitzes, 1981). Workers experiencing high levels of role identity are more likely to feel authentic when they are conforming to those role expectations. Ashforth and Tomiuk (2000) conducted interviews with service agents, who reported that their professional task behavior was generally reflective of their true selves. Ironically, these same individuals also generally reported that their jobs required effective acting (e.g., faking emotions) when dealing with customers. Consequently, emotions required for effective job performance were internalized and displayed as a reflection of self. Ashforth and Tomiuk (2000) referred to this phenomenon as deep authenticity. Consistent with Sheldon et al.’s (1997) finding that individuals’ felt authenticity levels vary according to role, self-identity theorists (e.g., Ashforth and Humphrey 1993) have argued that persons experience their highest authenticity levels when conforming to role expectations emanating from their strongly-identified-with roles (e.g., occupations). This argument is based on the premise that individuals whose occupational roles are strongly internalized will feel most authentic. In a selling context, the sales representative who internalizes his/her job role and consequently “becomes the role,” will experience greater levels of authenticity than will sales representatives who have not internalized their roles to a similar degree. This leads to proposition two. Vol. 6, No. 4 20 Journal of Selling & Major Account Management P2: Role identity will positively influence authenticity. Job Autonomy Job autonomy refers to the salesperson’s felt ability to determine the nature of a sales task or problem and to arrive at a self-determined course of action (Wang and Netemeyer 2002). Job autonomy should directly affect authenticity. Sales positions associated with low levels of job autonomy would likely result in constrained situations where salespersons perceive little control and choice (Wang and Netemeyer 2002). In situations in which a salesperson’s behavioral choices are constrained or controlled, one might anticipate that the level of salesperson’s authenticity would be negatively impacted. Thus, because situations that allow little behavioral control or choice tend to inhibit behavior that is felt to be self-expressive and authentic (Sheldon et al. 1997), the following is proposed: P3: Job autonomy will positively influence authenticity. Job Satisfaction Job satisfaction has been defined as the salesperson’s overall affective feeling toward the job (Babakus et al. 1996). According to the social-contextual assumption of Deci and Ryan (1985), some roles afford individuals more autonomous self-expression, and thus more satisfaction than others. As noted above, Sheldon et al. (1997) found that authenticity was substantially correlated with both well-being and satisfaction across a variety of non-selling roles. According to Sheldon et al. (1997), this finding is consistent with Rogers (1963), who associated authenticity with being a fully functioning person. Full functionality involves an openness to experience (as opposed to defensiveness), an acceptance of reality (including one’s feelings), and a willingness to live in the here and now. A fully functioning salesperson would therefore accept full responsibility for his/her efforts and appreciate the experiences that result from those efforts. Further, the fully functioning sales representative would also be accepting of feelings Northern Illinois University generated through his/her job activities and accept results “as they are.” Such behaviors would probably facilitate the degree to which the salesperson feels content in the sales role. Therefore, the degree to which one can be “fully functioning” in his her/her sales job would seem to lead to greater levels of job satisfaction. This perception leads to the development of the fourth proposition. Thus, P4: Authenticity will positively influence job satisfaction. Self-efficacy Self-efficacy refers to the level of confidence an individual has in his or her ability to perform well in a specific task domain (Bandura 1997). In a selling context, self-efficacy involves a comprehensive summary or judgment of one's perceived capability of performing specific selling tasks. Self-efficacy has been associated with work-related performance (Stajkovic and Luthans 1998). Self-efficacy has also been related to self-esteem. Self-esteem refers to how an individual characteristically feels about himself/herself (Brown, Dutton and Cook 2001). This conceptualization refers to self-esteem as feelings regarding one’s self as a whole, rather than to evaluations of one’s characteristics or specific qualities (Kernis 2005). In contrast, self-efficacy refers to a person’s self-assessment of abilities (e.g., selling) and other attributes. These assessments do not necessarily impact selfesteem. However, if a person possesses high self-efficacy levels on occupation and identityrelevant tasks, a positive correlation between selfesteem and self-efficacy is likely (Bandura 1997). Research conducted in non-selling contexts suggests that authenticity is positively related to self-esteem (e.g., Herrman, Kernis and Goldman 2004, Goldman and Kernis 2002). Moreover, recent non-selling research by Brown, Dutton and Cook (2001) supports the perspective that self-esteem influences self-evaluations (i.e., selfefficacy). As Brown, Dutton and Cook (2001) note: “People who are fond of themselves in a Fall 2006 general way (i.e., those with high self-esteem), view themselves as having many positive qualities. They like the way they look; they enjoy their sense of humor; they appreciate their talents. The causal process is a top down one, from global feelings of affection to beliefs that one possesses many socially valued attributes.” In a sales context, self-efficacy occurs when a salesperson feels confident and competent in the selling role. Since authenticity has been shown to be positively related to self-esteem, and selfesteem leads to enhanced self-evaluations (e.g., self efficacy), it logically follows that authenticity would relate indirectly to self-efficacy. In other words, a salesperson that feels authentic performing his/her job will likely feel better about himself/herself in general, and as a result, will tend to view themselves as performing more favorably in the selling role. Hence, proposition five holds: P5: Self-esteem will positively influence selfefficacy. Rejection sensitivity As mentioned above, researchers have shown a positive relationship between authenticity and global self-esteem. Global self-esteem levels have also been shown to correlate negatively with rejection sensitivity (Downey et al. 1998). Rejection sensitivity is essentially an antonym for “resilience.” According to Ingram et al. (2004), resilience is a key salesperson customer service dimension. They define it as the “ability of a salesperson to get knocked down several times a day by a customer’s verbal assault (i.e., complaint) and get right back up with a smile and ask for more.” It seems individuals in sales positions are more likely than those in other occupations to encounter multiple rejections and failures on a daily basis, as well as the accompanying potentially negative feelings and thoughts directed at the self (Verbeke and Bagozzi 2000). Since the fear of rejection is perhaps the most significant reason salespeople avoid prospecting (Ingram et al. 2004), resilience would seem to be desirable as a salesperson quality. 21 Concerning high self esteem and the ability to tolerate rejection, Kernis (2005) wrote: “If one is truly happy with oneself, being outperformed by others, receiving an unflattering evaluation, or performing poorly should not require excessive self-protection; instead, high self-esteem individuals should roll with the punches so that potentially threatening events would not ‘stick,’ but, instead, roll off like ‘water off a duck’s back.’” Researchers in psychology have demonstrated that self-esteem is more stable for some people than for others (see Kernis and Waschull 1995, for a review). According to Kernis (2005), selfesteem stability refers to the “magnitude of short-term fluctuations that people experience in their contextually based, immediate feelings of self-worth.” Self-esteem instability has been operationalized as the within-person standard deviation of self-esteem over time (Crocker and Wolfe 2001). While authentic individuals have been shown to have higher levels of self-esteem, they have also been shown to have more stable levels of self-esteem (Herrmann, Kernis and Goldman 2004). People with unstable levels of self-esteem lack a well-anchored self-esteem, and may be especially prone to interpreting everyday events (e.g., salesperson’s closing efforts rejected) as being relevant to their own self-esteem (Kernis 2005). Moreover, people with unstable selfesteem characteristically react very strongly to events perceived as self-esteem relevant (Kernis 2005). Since authenticity has been shown to positively influence both (global) self-esteem and selfesteem stability, and global self-esteem and selfesteem stability has been shown to negatively influence rejection sensitivity, we would logically expect authenticity to indirectly and negatively influence rejection sensitivity. Thus, a salesperson who feels inauthentic in the sales role should likely be more sensitive when confronting rejection. The authentic salesperson, however, might perceive rejection less personally, as his/ her self-esteem is much less contingent upon desired outcomes. Consequently, the sixth proposition holds that: Vol. 6, No. 4 22 Journal of Selling & Major Account Management P6: Authenticity will positively influence self esteem. P7: Self esteem will negatively influence rejection sensitivity. Customer-Orientation According to Brown et al. (2002), customerorientation refers to an employee’s tendency or predisposition to meet customers’ long term needs in an on-the-job context. Thus, customeroriented salespersons keep their customers’ best interests in mind. In contrast, a sellingorientation involves practicing the more shortterm and company-needs focused sellingconcept, which may involve the use of more manipulative tactics and behaviors to close sales (Saxe and Weitz 1982). It would seem that the use of deceptive and manipulative tactics would be examples of inauthentic behaviors. Saxe and Weitz (1982) suggest that customerorientation is positively related to concern for others. However, as Ingram et al. (2004) argue, most salespersons lack the commitment and skills necessary to support their clients’ interests, and therefore tend to be more “talk the talk” than “walk the walk” when it comes to customeroriented selling. MacKay (1988) argues that the most effective salespeople are genuinely interested in their customers. Ashforth and Humphrey (1993) argue customers’ perceptions of good service hinge on the degree to which service agents convey a sense of genuine interpersonal sensitivity and concern. Given that customers respond favorably to a genuine customer-orientation (Dunlap et al. 1988), it is likely that salespersons purposefully attempt to give that impression to their buyers. We would expect customer-oriented salespeople to experience themselves as more authentic because it is not necessary for them to pretend to have their customer’s best interests in mind, because they authentically do have them in mind. In contrast, selling-oriented selling can, at best, only involve a pretense of being customer-needs focused, because in actuality the needs of the salesperson and his/her company are given highest priority. Since authenticity involves a Northern Illinois University lack of pretense, salespersons with a sellingorientation would likely experience themselves as less authentic. Thus, P8: Customer-orientation will positively influence authenticity P9: Selling-orientation influence authenticity will negatively CONCLUSIONS The concepts presented in this study may provide sales managers with insight into the relevance of authenticity to personal selling. This should assist sales managers in the design of authenticity-enhancing sales positions, as well as the hiring of authentic individuals. The testable propositions suggested in this article offer a potential methodology which could be used to evaluate the degree to which a salesperson’s level of authenticity might relate to salesperson characteristics. As suggested in Figure 1, role identity; job autonomy; and customer-orientation positively influence authenticity. Sellingorientation and role ambiguity are proposed to negatively influence authenticity. Authenticity, in turn, is proposed to positively influence job satisfaction and self-esteem. Finally, self-esteem is proposed to negatively influence rejection sensitivity and positively influence self-efficacy. These variable are relevant in that some represent desirable salesperson traits (amenable to identification); skills (amenable to development); or desirable sales outcomes. Managerial Implications If the propositions established in this research hold true, numerous managerial implications may follow. Perhaps the most obvious implications may involve the impact of the salesperson’s authenticity on the selection, retention, and training aspects of sales management. For example, many individuals cling to the belief that they are not well-suited for sales, as they perceive themselves as not being sufficiently extroverted, disingenuous and manipulative to be successful in the selling profession. While most sales managers likely view these perceptions as inconsistent with reality, such perceptions are Fall 2006 nonetheless very real to many prospective salespersons. Consequently, if research supports the notion that authenticity is a desirable trait, the dissemination of such knowledge should facilitate the recruitment of quality individuals into the selling profession, as such individuals will likely be more attracted to a profession they perceive as allowing ample freedom for self-expression. Thus, the availability of a more qualified pool of applicants should result in superior selection decisions reflected in both salesforce performance and career longevity. Firms might also consider increasing the relevance of authenticity as a salesforce hiring criteria and training hiring managers by assessing the authenticity of sales position applicants in interview settings. Selection methods such as unstructured interviewing, role playing, testing, and reference checking could enhance the likelihood of selecting individuals that are genuinely passionate about and committed to the possibility of entering the selling profession. Such individuals would likely be more authentic in acting out their salesperson roles. Thus, hiring criteria might be modified to focus more on the sales applicant’s authenticity and passion for the selling profession (e.g., role identity). Such a change in focus may facilitate the selection of individuals who are better able to maintain their authenticity in sales situations. If authenticity is indeed a desirable salesperson trait, sales training programs could be modified to enhance the nurturance of the authenticity of newly hired salespersons. Through this process, sales managers might refrain from attempting to “force square pegs into round holes” and instead allow trainees to behave in ways more consistent with their true selves. Correspondingly, if a company’s sales training program is designed to create sales cloning, it is likely that salespersons will be required to behave in ways they perceive as inauthentic. The research in this paper suggests that such behavioral attempts may result in lower levels of job satisfaction. Thus, training and retention programs may be modified based on the fact that training may be designed in a fashion that recognizes the individual nature of 23 the salesperson and no longer advocates “sales cloning.” Training might then be developed to focus on sales behaviors, rather than sales personalities, thus allowing salespeople to behave authentically, which would then, in turn, reduce sales force turnover levels and increase long-term performance. Perhaps rather than training individuals to fit the “sales stereotype,” managers may be better-advised to develop sales skills that are more customer-orientated than sellingoriented, as selling-oriented behaviors generally involve pretending to put the customer’s needs first. Authenticity may be enhanced by reducing salesperson role ambiguity. Reducing ambiguity can be accomplished by clarifying job descriptions, increasing the accuracy and realism of job previews, conducting regular performance appraisals, and generally increasing the quality and quantity of managerial/salesperson communications. This would allow salespersons a greater ability to engage in realistic selfappraisals in order to determine whether a particular sales position fits “who they are,” (i.e., whether the position is one in which allows them the freedom to behave in a self-expressed and authentic manner). Thus, reduced role ambiguity, combined with an increased identification of the individual with the sales role, should result in increased levels of authenticity for the salesperson. Moreover, the present research suggests that firms redesign their sales positions to allow salespersons greater perceived job autonomy. For example, salespersons might be given more leeway in how they establish rapport with customers. This would require that management refrain from expecting their naturally sensitive and supportive salespersons to behave as if they were joke-telling and back-slapping extroverts. Salespersons should be discouraged from attempting to be something other than “who they really are,” as “who they really are” is the only thing they can authentically be. Consistent with this, managers should assure newly hired salespersons that sales success can be enjoyed by a variety of personality types, not just the stereotypical extroverted salesperson. Such job Vol. 6, No. 4 24 Journal of Selling & Major Account Management design modifications would likely allow the salesperson more unconstrained freedom for authentic self-expression, potentially contributing to a more satisfied salesforce. This, in turn, would likely impact salesforce turnover in a favorable manner. In addition, the study might also provide significant managerial implications with regard to salesperson motivation. Many pay-forperformance plans focus on inducing sales performance, much like a theory X type manager. However, salespeople who are behaving authentically might be motivated more intrinsically. The fact that being able to behave authentically leads to heightened levels of selfesteem, which in turn results in greater levels of self-efficacy and lower levels of rejection sensitivity may create circumstances in which extrinsic rewards (commissions, bonuses, etc.) have minimal impacts on sales behaviors and results. Thus, sales managers might discover that authentic salespeople are more likely to be motivated from within, and thus, the opportunities to engage in activities that reflect this authenticity (i.e., job autonomy, customer orientation) meet their desires and result in the higher performance levels desired by management. Such findings would thus suggest that future motivational efforts focus more on factors such as enhancing the salesperson’s feelings of growth, self-determination and responsibility for the job and reduce the focus on traditional extrinsic rewards (i.e., contests, commissions, bonuses). Directions for Future Research The present study focuses on variables likely to impact salespersons’ perceptions of the authenticity of their own behaviors, such as perceived job autonomy, role identity, role ambiguity, customer-orientation, and sellingorientation. It also focuses on the impact of such salesperson-perceived authenticity on salesperson variables such as job satisfaction, self-esteem, rejection sensitivity and self-efficacy. Thus, the present study focuses on the impact of authenticity on the salesperson, rather than the buyer. Northern Illinois University While not explicitly addressed in this research, the likely impact of salesperson authenticity on the firm’s relationships with their customers would seem to warrant a future research focus. Moreover, given that a salesperson’s authenticity level likely impacts the degree to which he/she is perceived as trustworthy by his/her buyers, and that perceived trustworthiness likely impacts the quality of the buyer-seller relationship and the probability of sales success with that customer, future studies are needed that focus on salesperson authenticity from the buyer’s perspective. Such research might investigate the criteria used by buyers in assessing salesperson authenticity. The findings from these studies could enhance sales professionals’ awareness of behaviors potentially contributing to buyers’ perceptions of their authenticity. Other studies might address the impact of salesperson authenticity on buyer satisfaction. A similar issue warranting research attention relates to the customer’s level of trust when dealing with authentic salespeople versus dealing with inauthentic salespeople. If customers are more satisfied and have higher levels of trust as a result of dealing with authentic salespeople, then one might argue that customer maintenance (longevity) and profitability may be enhanced. Thus, salesperson authenticity may result in greater levels of performance, particularly longterm performance. Regardless of the directions taken by future studies, this study provides what insight to sales managers and sales academicians alike. Broaching the concept that one could actually experience greater levels of success in professional selling by being true, authentic and genuine is an exciting proposition. While many may have felt “intuitively” that authenticity was a critical salesperson trait, this research provides testable propositions and logic supporting the validity of the concept that salesperson authenticity could be a vital component in sales. It is hoped that future research will provide continued enlightenment with regard to this concept. Fall 2006 REFERENCES Ashforth, Blake E. and M.A. Tomiuk (2000), “Emotional Labor and Authenticity: Views from Service Agents, In S. Fineman (Ed.), Emotions in Organizations (2nd ed., pp. 184-203), London: Sage. ____________ and Ronald H. Humphrey (1993), “Emotional Labor in the Service Roles: The Influence of Identity,” Academy of Management Review, 10 (1), 88-115. Babakus, Emin, David W. Cravens, Mark Johnston and William C. Moncrief (1996), "Examining the Role of Organizational Variables in the Salesperson Job Satisfaction Model," Journal of Personal Selling and Sales Management, 16 (3), 33-36. Bandura, Albert (1997), Self-efficacy: The Exercise of Control, New York: W.H. Freeman. Buss, David M. “Evolutionary Personality Psychology,” Annual Review of Psychology, 42, 459-491. Behrman, Douglas and William Perreault (1984), “A Role-Stress Model of the Performance and Satisfaction of Industrial Salespersons,” Journal of Marketing, 48 (Fall), 9-21. Brotheridge, Celeste M. and Raymond T. Lee (2002), “Testing a Conservations of Resources of the Dynamics of Emotional Labor,” Journal of Occupational Health Psychology, 7 (1), 57-67. Brown, Jonathon D., Keith A. Dutton, and Kathleen E. Cook (2001), “From the Top-down: Self-esteem and Selfevaluation,” Cognition and Emotion, 15 (5), 615-631. Brown, Tom J., John C. Mowen, D. Todd Donavan and Jane W. Licata (2002), "The Customer Orientation of Service Workers: Personality Trait Effects on Self- and Supervisor Performance Ratings," Journal of Marketing Research, 39 (February), 110119. Burke, Peter J. & Dietrich C. Reitzes (1981), The link between identity and role performance. Social Psychology Quarterly, 44, 83-92. Crocker, Jennifer and Connie T. Wolfe (2001), “Contingencies of Self-Worth,” 25 Psychological Review, 108 (3), 593-623. Deci, Edward L. and Richard M. Ryan (1985), Intrinsic Motivation and Self-determination in Human Behavior, New York: Plenum. Downey, G., A.L. Freitas, B. Michaelis and H. Khouri (1998), “The Self-fulfilling Prophecy in Close Relationships: Rejection Sensitivity and Rejection by Close Partners,” Journal of Personality and Social Psychology, 75, 545-560. Dunlap, B.J., M.J. Dotson, T.M. Chambers (1988), “Perceptions of Real Estate Brokers and Buyers: A Sales-orientation, Customerorientation Approach?” Journal of Business Research, vol. 17, (September, 175-187. Funder, David, and C. Randall Colvin (1991), “Explorations in Behavioral Consistency: Properties of Persons, Situations and Behaviors,” Journal of Personality and Social Psychology, 60 (5), 773–794. Goldman, Brian M. and Michael H. Kernis (2002), “The Role of Authenticity in Healthy Psychological Functioning and Subjective Well-being,” Annals of the American Psychotherapy Association, 5 (6), 8-22. Gross, Edward, and Gregory P. Stone (1964), “Embarrassment and the Analysis of Role Requirements,” American Journal of Sociology, 70 (July), 1-15. Hayes, H. Michael and Steven W. Hartley (1989), “How Buyers View Industrial Salespeople,” Industrial Marketing Management, 9 (1), 73-80. Herrman, A., Michael H. Kernis, and Brian N. Goldman (2004), “Authenticity and Stability of Self-Esteem,” unpublished data, University of Georgia. Ingram, Thomas N., Raymond W. LaForge, Ramon A. Avila, Charles H. Schwepker and Michael R. Williams (2004), Professional Selling: A Trust Based Approach, Second Ed., Mason, OH, Thomson SouthWestern. Kahn, William (1992), “To Be Fully There: Psychological Presence at Work,” Human Relations, 45 (4), 321. Kernis, Michael H. (2003), “Toward a Conceptualization of Optimal SelfEsteem,” Psychological Inquiry, 14(1), 1-26. Vol. 6, No. 4 26 Journal of Selling & Major Account Management Kernis, Michael H. (2005), “Measuring SelfEsteem in Context: The Importance of Stability of Self-Esteem in Psychological Function,” Journal of Personality, 73 (6). Kernis, Michael H. and Stefanie B. Waschull (1995), “The Interactive Roles of Stability and Level of Self-esteem: Research and Theory,” In M.P. Zanna (Ed.), Advances in Experimental Social Psychology (vol. 27, pp. 93-141), San Diego, CA: Academic Press. MacKay, H. (1988), ``Humanize Your Selling Strategies'', Harvard Business Review, Vol. 66, March-April, pp. 36-8, 40, 44, 46, 47. McCrae, Robert, and Paul T. Costa (1984). “Personality is Transcontextual: A Reply to Veroff,” Personality and Social PsychologyBulletin, 10 (1), 175–179. Nerdinger, Friedemann W. (2001), Psychologie des Personlichen Verkaufs [Psychology of Personal Selling], Munich: Oldenbourg. Rogers, Carl (1963), “The Actualizing Tendency in Relation to ‘Motives’ and to Consciousness,” In M.R. Jones (Ed.), Nebraska Symposium on Motivation, (11), Lincoln, NE: University of Nebraska Press, 1-24. Saxe, Robert and Barton A. Weitz (1982), “The SOCO Scale: A Measure of the Customer Orientation on Sales Force Productivity,” Journal of Marketing Research, 19 (August), 343-351. Sheldon, Kennon, Richard Ryan, Laird Rawsthorne and Barbara Ilardi (1997), “Trait Self and True Self: Cross-Role Variation in the Big-Five Personality Traits and Its Relations with Psychological Authenticity and Subjective Well-being,” Journal of Personality and Social Psychology, 73 (6), 1380-1393. Singh, Jagdip (1993), “Boundary Role Ambiguity: Facets, Determinants, and Impacts,” Journal of Marketing, 17 (April), 11-31. Stajkovic, Alexander D. and Fred Luthans (1998), “Self-Efficacy and Work-Related Performance,” Psychological Bulletin, 124, 240-261. Stryker, Sheldon and Peter Burke (2000), “The Past, Present and Future of Role Identity Theory,” Social Psychology Quarterly, 63, 284Northern Illinois University 297. Stryker, Sheldon, & Richard T. Serpe, (1982). Commitment, identity salience and role behavior: Theory and research example. In W. Ickes & E. S. Knowles (Eds.) Personality, Roles, and Social Behavior. New York: Springer-Verlag. Verbeke, Willem and Richard P. Bagozzi (2000), “Sales Call Anxiety: Exploring What It Means When Fear Rules a Sales Encounter,” Journal of Marketing, 64 (3), 88-101. Wang, Guangping, and Richard G. Netemeyer (2002), “The Effects of Job Autonomy, Customer Demandingness, and Trait Competitiveness on Salesperson Learning, Self-Efficacy, and Performance,” Journal of the Academy of Marketing Science, 30 (3), 217228. Allen D. Schaefer (Ph.D. Oklahoma State University) is a professor of marketing at Missouri State University. His research interests are in the area of personal selling and cross-cultural consumer behavior. Recent publications have appeared in the Journal of Advertising Research, the International Journal of Consumer Studies, and the Marketing Management Journal. E-mail: allenschaefer@missouristate.edu Charles E. Pettijohn (D.B.A. Louisiana Tech University) is a professor of marketing at Missouri State University. His research interests are in the area of personal selling and sales management. Recent publications have appeared in the Journal of Personal Selling and Sales Management, the Journal of Services Marketing, and the Journal of Consumer Marketing. He currently is serving as co-editor of the Marketing Management Journal. E-mail: charliepettijohn@missouristate.edu 27 Fall 2006 A New Look at Industrial Sales and its Requisite Competencies By Clifford S. Barber and Brian C. Tietje Although industrial sales is widely discussed in both practitioner and academic circles, no clear definition of “industrial” has been established. We present a definition of industrial sales that distinguishes it from other sales domains, and we draw from a panel of industrial sales executives and a random sample of industrial sales managers to generate and evaluate the importance of a comprehensive list of knowledge, skills, and value competencies that are required for success in industrial sales. Technical competencies, while important, were rated relatively less so than selling- and customer-related competencies. Among other recommendations, we implore industrial sales executives to incorporate a global mindset into their sales organization, and we challenge academics to extend personal selling beyond the business school to engineering, computer science, and other technical disciplines from where industrial salespeople often recruit. Because salespeople from different firms and industries often face unique challenges, the requirements for a successful salesperson in these diverse settings vary considerably. Moncrief (1986) explains that “the diversity of selling tasks and responsibilities among firms and industries is one reason why many studies of salesperson attitudes, opinions, and behaviors have produced conflicting results” (p. 261, see also Churchill et al., 1985). Numerous studies have classified sales jobs into meaningful groups primarily by the activities they perform (e.g., Churchill et al., 1985, McMurray, 1961, Moncrief, 1988, Newton, 1973), and one such classification is that of industrial sales. Several articles in the sales literature refer either to industrial selling, industrial sales forces, or industrial salespeople (e.g., Lamont, 1974, Moncrief, 1988, Wotruba, 1996). Despite the noted distinction of the term “industrial”, its definition as it relates to selling is often missing, generalized or undifferentiated from other types of selling professions. According to Moncrief (1988), industrial sales has been “misrepresented, misunderstood, and mislabeled” (p. 161). In an effort to establish greater clarity and consistency for both sales research and practice, we offer a definition of industrial sales, and report the results of an empirical study to identify the requisite competencies for success in the industrial sales profession. A Customer Application-Based Definition of Industrial Sales Although the term “industrial sales” has not been clearly defined, several sources have defined “industrial marketing”, under which the activity of industrial sales is presumably subsumed. Just as Rangan and Isaacson (1991) distinguish industrial marketing from other marketing domains based on the type of customer served and how the product is used, we define industrial sales by the customer and, more importantly, the customer’s intended application of the product or service. We define industrial sales as personal selling activities that facilitate the sale of products or services whose intended application is in the manufacturing process. This definition excludes consumer product sales, such as the sale of goods by manufacturers to wholesalers and retailers for the purpose of resale to consumers, and is a subset of activities described as “business-to-business” (b2b) sales. It excludes b2b sales activities where the primary application of the product being sold is for commercial or institutional use outside of Vol. 6, No. 4 28 Journal of Selling & Major Account Management manufacturing. For example, the sale of a computer server to a bank would not be an industrial sale, but if the server were sold for use in operating a computer numerical controlled (CNC) milling machine in a production line, the sale would be industrial by our definition. Consistent with this distinction, many firms have established different product divisions and sales forces for commercial and industrial applications, where the industrial divisions focus primarily on manufacturing applications. We argue that industrial sales is a distinctive sales profession because industrial products and services serve as inputs in the customer’s manufacturing process and value chain. Thus, selling activities in this context present unique challenges and require a distinctive balance of competencies. In the next section we explore the meaning of the term “competency”, and describe the conceptual approach that we employ in our empirical study to identify the necessary competencies for success in industrial sales. Defining Competencies There are many definitions of competence available, but no single definition has been widely accepted (Hoffmann, 1999). The definition that is most appropriate for the purpose of this study comes from Westera (2001): “From an operational perspective, competences seem to cover a broad range of higher-order skills and behaviors that represent the ability to cope with complex, unpredictable situations. This operational definition includes knowledge, skills, attitudes, metacognition and strategic thinking, and presupposes conscious and intentional decision making” (p.80). Because competence covers such a broad conceptual spectrum, researchers have identified several sub-dimensions of the construct, including knowledge, skills, attitudes, abilities, and values (Fleisher, 2003, Stephenson and Weil, 1992, Westera, 2001). We use the structure proposed by Evers et al. (1998) that subdivides Northern Illinois University competencies into knowledge, skills, and values (KSV) because the KSV structure reflects the cognitive, affective, and psychomotor domains often used to develop educational objectives. Knowledge competencies represent the cognitive domain, values cover the affective dimension, and skills the psychomotor. Knowledge refers to the ability to understand how pieces of information (concepts, principles, facts) can be used with context, to solve problems that are new but are similar to previous actions. Skills refer to the ability to demonstrate a system and sequence of behaviors that are functionally related to attaining a performance goal, and must result in something observable (Boyatzis, 1982). Values refer to one’s feelings, attitudes, opinions, standards, and beliefs. It is an abstract, generalized principle to which members of a group have a strong emotional commitment. As Garavan and McGuire (2001, p. 152) explain, “an individual’s work performance is influenced by professional, managerial, people, and mental components, but also by work values and attitudes.” In order to identify the competencies necessary to succeed in industrial sales, we conducted an empirical study to assess practitioner perceptions of requisite competencies in industrial sales. Methodology Our study consisted of three rounds of data collection. The first two rounds employed an executive panel, and the third round utilized a random sample of industrial sales managers from a diverse range of industries. Executive Panel In the first round of our study, a group of senior sales executives was asked to self-generate a list of knowledge, skills, and values that determine success in industrial sales. These upper level senior sales executives were in corporate positions that were directly relevant to the functions of industrial sales personnel. For this study, criteria that defined eligibility for involvement in the panel included: Fall 2006 1. Upper-level executives of mid to large size manufacturing organizations that contain an industrial sales component. 2. Employed for at least five years with their current organization. 3. Assurance from the potential member that sufficient time would be dedicated to the study. The researchers drew upon a convenience sample of direct and indirect personal and professional contacts to compile a group of potential executive panelists. These upper-level executives represented firms from a variety of industries, including, but not limited to, aerospace, industrial electronic systems, plumbing products, and semiconductors, and ranged in size from $4 million to $130 billion in annual revenues. A pool of approximately 30 potential panelists was established. Each potential panelist was contacted by e-mail and presented with the specifics of the research study. The final panel of executives who agreed to participate in the study consisted of 25 members. Round 1: Executive-Generated Industrial Sales Competencies In round 1 each respondent in the panel of executives was asked to list at least five knowledge, skills, and values competencies that determine success in industrial sales. Respondents provided responses in their own words in an open-ended text field in an Internet survey. There were two primary reasons why we allowed the executive panel to generate their own list of competencies, rather than providing a predeveloped list of competencies based on prior research. First, this tabula rasa approach captures the unbiased perspective of experienced practitioners. Second, the competencies of successful salespeople that have been developed to-date in the academic literature have not been developed with a specific focus on industrial sales. After an initial return rate of 54%, a follow up e- 29 mail was sent to the executive panelists requesting completion of the questionnaire. A few weeks later, there was a 100% return rate. 285 competencies in the knowledge, skill and value categories were generated. Round 2: Follow-Up Importance Ratings of Competencies by Executive Panel The list of competencies generated in round 1 was independently analyzed by two researchers to eliminate duplicate items. Each researcher organized the list of items by conceptual similarity, and then noted where two or more items could be subsumed under a single descriptor. Then the researchers compared their analysis, discussed discrepancies, and resolved any differences through discussion. An item was only removed if another item clearly had a similar meaning. Through this process, the list of 285 competencies created by the executive panel was reduced to 169 – 66 knowledge competencies, 75 skills, and 28 values. A questionnaire listing each of the 169 competencies was developed, requiring respondents to rate both the current and future importance of each competency on a scale with the headings: “extremely unimportant”, “unimportant”, “moderately important”, “important”, and “extremely important”. We included both current and future importance to capture any shifting trends in the requisite expertise of contemporary industrial salespeople. The URL for the Web survey was sent via email to the executive panel. Panelists who did not complete the survey within the initial two weeks were subsequently contacted with reminders. Within one month all of the executives had completed the questionnaire. Round 3: Competency Ratings by Random Sample of Sales Managers After collecting competency importance rating data from the executive panel, we distributed a similar survey to a random sample of industrial sales managers. The only difference in the survey is that respondents were required only to rate the Vol. 6, No. 4 30 Journal of Selling & Major Account Management current importance of each of the 169 competencies. We eliminated the current vs. future comparison to reduce respondent fatigue and improve response rates. The URL for the Web survey was submitted via email to 250 randomly selected sales managers from companies classified by the North American Industry Classification System (NAICS), numbers 31-33 (manufacturing) and another 250 salespeople were randomly selected from NAICS codes 44-45 (retail trade), as listed in the 2001 edition of Ward’s Business Directory of U.S. Private and Public Companies. We chose these NAICS codes to capture a broad selection of sales professions, industries, and companies. Of the 500 sales managers who were contacted, 82 responded (16.4% response rate). The sales managers were classified based on their answer to the question “How would you classify your current sales position?”, with the following response categories. Because of the small samples (25 respondents in the executive panel and 31 industrial sales managers) compared to the large number of competencies, factor analysis or other statistical data reduction methods were not appropriate. To aid the interpretative process, the researchers grouped the knowledge and skill competencies by their conceptual similarity. The knowledge competencies were grouped into nine general conceptual domains. These include knowledge about: • Consumer sales: selling products to consumers for their consumption, or to resellers for their sale to consumers. • Product • Industrial sales: Selling products that have an intended application in manufacturing, assembly, and material processing functions. • Technological • Commercial sales: Selling products to other businesses for applications that are not industrial. • Institutional sales: Selling products to institutions for their use in delivering services to their constituents. • Other: (please specify) Among the respondents, 31 classified their current position as industrial, 17 consumer, 0 institutional, 22 commercial, and 12 “other”. The analysis we report in this paper includes only those managers who classified themselves within industrial sales. Analysis and Results Interpreting the importance ratings of all 169 competency items posed a difficult challenge. Northern Illinois University • Business concepts • Competitors • Customers • The salesperson’s employer • Financial concepts • Industry • Selling Table 1 provides the average importance ratings of the individual knowledge competencies and the broader conceptual domains reported by the executive panel and the sales managers. Average importance ratings highlighted in red (blue) were rated by the executive panel significantly more (less) important for the future compared to their current importance, providing an indication of longitudinal variation. Sales manager ratings that are italicized in the table are significantly different than the average current importance ratings of the executive panel. In a further effort to assess the relative consistency of the importance ratings between the executive panel and sales managers, we sorted the competencies by the average importance rating they received from the executive panel in descending order and compared their relative rankings between the Fall 2006 31 Table 1: Importance Ratings of Knowledge Competencies Executive Panel Sales Managers Domain Customer Customer Customer Customer Customer Customer Knowledge Competency Influence of Contacts Decision Making Process Contact Information Unique Requirements Business and Industry Financials Average Customer Future 3.88 3.88 3.88 3.79 3.88 3.92 3.87 Current 4.50 4.42 4.33 4.29 4.25 4.25 4.34 4.74 4.87 4.65 4.35 4.26 4.00 4.48 Selling Selling Selling Selling Selling* Selling* Selling Sales Process Salesmanship Selling Techniques Account Management Consultative Selling* Accurate Sales Forecasting* Territory Management Avg. Selling 4.46 4.33 4.21 4.29 *4.50 *4.13 3.33 4.18 4.46 4.42 4.38 4.33 *4.21 *3.96 3.63 4.20 4.52 4.65 4.74 4.77 4.42 4.10 4.13 4.48 Competitors Competitors Competitors Competitors Relative Strengths and Weaknesses Business Strategy Product Capabilities and Specifications Product History Avg. Competitors 3.88 3.71 3.54 3.25 3.60 4.42 4.25 4.00 3.79 4.12 4.48 4.16 4.19 3.55 4.10 Product Product Product Product Product Product Product Product Product Product Strengths Application Weaknesses Quality Standards Design Technical Specifications Lifecycle History Material Properties Packaging Avg. Product 4.13 3.96 3.92 3.63 3.42 3.42 3.46 2.96 2.92 2.79 3.46 4.71 4.58 4.42 4.13 4.04 4.04 3.88 3.50 3.46 3.25 4.00 4.42 4.55 4.00 4.32 4.39 4.55 3.61 3.61 3.94 3.35 4.07 Avg. Industry 3.83 3.75 3.58 2.71 3.47 4.21 4.08 3.92 3.29 3.88 3.94 4.35 4.00 3.45 3.94 Avg. Employer 3.67 3.46 **3.29 3.38 **2.88 3.29 4.13 4.00 **3.96 3.88 **3.50 3.86 4.52 4.03 3.74 4.58 3.94 4.16 Industry Industry Industry Industry Employer Employer Employer** Employer Employer** Market Structure Trends Codes and Standards Traditions Quality Standards Organizational Strategy Management Structure** Available Resources Corporate Mission** Vol. 6, No. 4 32 Journal of Selling & Major Account Management Table 1: Importance Ratings of Knowledge Competencies Cont’d Executive Panel Financial Sales Managers Financial Impact of Installation/Product Costs Cost/Benefit Analysis* Net Income Financial Forecasting Corporate Budgeting Sales Forecasting Methods Cash Flow* Statistical Software Depreciation Statistics Tax Implications* Avg. Financial 4.58 4.58 3.87 *4.67 4.13 3.92 3.92 4.38 *3.83 3.21 2.96 2.92 *3.13 3.79 *4.46 4.04 3.96 3.92 3.79 *3.50 3.17 2.96 2.96 *2.88 3.66 4.10 3.39 3.29 3.35 4.10 3.74 2.90 3.16 2.94 3.19 3.46 Bus. Concepts Bus. Concepts Bus. Concepts* Bus. Concepts Bus. Concepts* Bus. Concepts* Bus. Concepts Bus. Concepts* Bus. Concepts Profitability Drivers Basic Marketing Knowledge E-Commerce* Organization Structure Legal Aspects* Logistics and Distribution* Purchasing Enterprise Resource Planning* Inventory Control Avg. Bus. Concepts 4.50 4.42 *4.13 3.75 *3.67 *3.63 3.08 *3.63 3.17 3.78 4.38 4.29 *3.75 3.67 *3.38 *3.29 3.29 *3.25 2.83 3.57 4.29 4.23 3.39 3.45 3.77 3.55 3.77 3.19 3.42 3.67 Technological Technological Technological Technological Technological Technological Technological Technological Technological Technological Emerging Technologies Basic Computer Quality Control Basic Engineering Principles Materials Manufacturing Processes Simulation Basic Electricity Facilities and Facilities Management Internal Process Control Limits Avg. Technological 3.88 3.67 4.08 3.17 3.33 3.33 3.38 3.04 2.54 2.92 3.33 4.25 4.13 4.00 3.71 3.42 3.33 3.29 3.17 3.13 2.92 3.54 4.10 4.32 3.68 4.13 3.68 4.00 2.90 3.81 2.71 3.00 3.63 Financial* Financial Financial Financial Financial Financial* Financial Financial Financial Financial* * (**) = future importance significantly greater (less) than current importance (paired-sample 2-tailed ttest, p<.05). two respondent groups. The list of competencies was truncated to include only the top-ranked items across both groups. Table 2 compares the importance rankings obtained in this analysis. Northern Illinois University 12 of the 20 knowledge competencies that received the highest importance ratings by the executive panel were also rated among the top 20 by the sales managers. The skills competencies were organized around six conceptual domains, including: 33 Fall 2006 average importance ratings as judged by the executive panel, and comparing those rankings to the ranking of average importance ratings by the sales managers. • Analysis • Discovery • Interpersonal • Managerial • Problem Solving • Technical Table 3 provides the average importance ratings of each skill competency and broader conceptual domain for the executive panel and the sales managers. As in the case of the knowledge competencies, we gauged the relative consistency of importance ratings between the executive panel and the sales managers by comparing the average importance ratings via t-tests, and ranking the skill competencies in descending order of their Table 4 compares those rankings.12 of the 20 skill competencies that received the highest importance ratings by the executive panel were also rated among the top 20 by the sales managers. The 28 value competencies represent a manageable collection of diverse constructs for individual interpretation, so we did not organize them within higher-level conceptual domains. Similar to our analysis of the knowledge and skills competency ratings, we compare the average importance ratings between the executive panel and the sales managers via t-tests, and we compare their relative rankings across the two groups. Table 2: Most Important Knowledge Competencies as Rated by Executive Panel and Sales Managers Domain Knowledge Competency Product Financial Product Customer Financial Selling Competitors Customer Product Selling Bus. Concepts Selling Customer Selling Selling Employer Product Product Employer Strengths Financial Impact of Installation/Product Costs Application Influence of Contacts Cost/Benefit Analysis Sales Process Relative Strengths and Weaknesses Decision Making Process Weaknesses Salesmanship Profitability Drivers Selling Techniques Contact Information Account Management Consultative Selling Quality Standards Technical Specification Design Available Resources Rank among executive panel* 1 2 2 3 4 4 5 5 5 5 6 6 8 8 11 12 14 14 18 Rank among sales managers 9 23 6 3 19 7 8 1 21 4 13 3 4 2 9 7 6 10 5 *By descending average of importance ratings Vol. 6, No. 4 34 Journal of Selling & Major Account Management Table 3: Importance Ratings of Skill Competencies Executive Panel Domain Discovery Discovery Skill Competency Uncover Customer Needs Search Out Potential Customers Average Discovery Interpersonal Interpersonal Interpersonal Interpersonal Interpersonal* Interpersonal Interpersonal Interpersonal Interpersonal Interpersonal Interpersonal Interpersonal Interpersonal Interpersonal Interpersonal* Interpersonal Interpersonal* Interpersonal Interpersonal Interpersonal Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving* Problem Solving* Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving Problem Solving 4.42 4.00 4.21 Current 4.38 3.92 4.15 4.65 4.77 4.71 Listening Articulation Multiple Priority Management Audience Awareness Open and Honest Communication* Relational Verbal Communication (Presentation) Networking* Conflict Resolution Empathy Humor Probing Translate Techno-babble Persuasiveness Constructive Feedback* Written Communication (Technical) Teamwork/Building* Conversational Character Building Cultural Awareness Avg. Interpersonal 4.38 4.25 4.00 4.13 *4.21 4.04 3.88 *4.08 3.79 3.92 3.88 3.92 3.50 3.96 *3.92 3.88 *3.92 4.08 3.63 3.46 3.94 4.25 4.13 4.08 4.04 *4.00 3.96 3.96 *3.92 3.83 3.83 3.83 3.83 3.83 3.83 *3.75 3.75 *3.71 3.67 3.54 3.46 3.86 4.94 4.65 4.29 4.26 4.68 4.23 4.74 *4.35 4.29 4.03 4.03 4.42 4.19 4.52 4.19 4.61 3.94 4.32 3.84 3.71 4.31 Closing the Deal Customer Awareness (Understanding) Generate Solutions Conceptualization Need Assessment Negotiation Self-Directing Critical Thinking* Persistence* Prioritizing Creativity Crisis Management Follow-Up Techniques Imparting Vision Shared Vision Dealing with Skepticism Monitoring Technical Research Handling Indifference Avg. Problem Solving 4.25 4.00 4.21 4.17 4.04 4.04 4.13 *4.13 *4.13 4.04 3.96 3.88 3.88 3.71 3.63 3.63 3.46 3.42 3.75 3.92 4.21 4.17 4.13 4.08 4.04 4.04 4.00 *3.96 *3.92 3.92 3.83 3.75 3.75 3.71 3.58 3.54 3.46 3.38 3.29 3.83 4.61 4.55 4.48 4.35 4.26 4.61 4.84 4.52 4.74 4.61 4.32 4.13 4.55 4.00 4.00 4.29 4.00 3.77 4.26 4.36 Northern Illinois University Future Sales Managers Fall 2006 35 Table 3: Importance Ratings of Skill Competencies Cont’d Executive Panel Managerial Managerial* Managerial Managerial* Managerial Managerial Managerial Managerial Managerial Managerial Managerial Managerial* Managerial Managerial* Managerial Analysis Analysis Analysis Analysis Analysis Analysis Analysis Analysis Analysis Technical** Technical Technical Technical Technical Technical Technical Technical Technical Technical Taking Ownership Leadership Skills* Time Management Employee Utilization* Motivating Planning Organizational Skills Team Building Skills Stress Management Accountability Delegation Mentoring* Project Management Resource Allocation* Budgeting Sales Managers Avg. Managerial 4.17 *4.17 3.71 *4.17 4.00 4.00 3.96 3.88 3.83 4.04 3.75 *3.88 3.63 *3.88 3.50 3.90 4.08 *4.00 3.96 *3.92 3.88 3.88 3.83 3.83 3.75 3.71 3.67 *3.67 3.54 *3.54 3.50 3.78 4.42 4.39 4.68 3.71 4.26 4.32 3.97 3.97 3.81 4.65 3.90 4.00 4.32 3.84 3.81 4.14 Avg. Analysis 4.17 3.88 3.46 3.58 3.50 3.46 3.38 3.42 3.04 3.54 3.96 3.83 3.67 3.54 3.42 3.42 3.38 3.29 2.96 3.50 3.97 4.03 3.77 3.58 4.13 3.13 3.68 3.55 3.39 3.69 Vocabulary (Industry Jargon)** General Computer Literacy Technology Implementation Quality Inspection Flowcharts (control charting) Mechanical Troubleshooting Materials Identification Computer Aided Design and Drafting Product Installation Processing Equipment Recognition Avg. Technical **3.46 3.46 3.33 3.13 2.75 2.67 2.67 2.63 2.50 2.38 2.90 **3.96 3.50 3.33 3.13 2.75 2.71 2.67 2.58 2.46 2.38 2.95 4.65 4.61 3.94 3.32 2.94 3.61 3.55 2.77 3.61 3.52 3.65 Cost/Benefit (ROI) Value Analysis Forecasting Quantitative Product Category Fit SWOT Qualitative Benchmarking Cash Flows 17 of the 20 value competencies that received the highest importance ratings by the executive panel were also rated among the top 20 by the sales managers. Discussion There are six primary insights that we believe are noteworthy from the analysis. First, there is a broad diversity of competencies that both the executive panel and sales managers perceived as important for a successful industrial salesperson. The results indicate that a successful industrial salesperson is a well-rounded individual with competencies ranging from interpersonal to technical skills and knowledge about customers, competitors, and selling, just to name a few. Vol. 6, No. 4 36 Journal of Selling & Major Account Management Table 4: Most Important Skill Competencies as Rated by Executive Panel and Sales Managers Rank among executive Domain Skill Competency Discovery Interpersonal Problem Solving Philosophy Interpersonal Problem Solving Managerial Problem Solving Interpersonal Problem Solving Interpersonal Problem Solving Problem Solving Interpersonal Managerial Interpersonal Managerial Technical Problem Solving Interpersonal Analysis Discovery Problem Solving Problem Solving Interpersonal Managerial Interpersonal Managerial Technical Uncover Customer Needs Listening Closing the Deal Customer Awareness Articulation Generate Solutions Taking Ownership Conceptualization Multiple Priority Management Negotiation Audience Awareness Need Assessment Self Directing Open and honest communication Leadership Skills Verbal Communication Time Management Vocabulary (Industry Jargon) Critical Thinking Relational Cost/Benefit (ROI) Search out potential customers Persistence Prioritizing Networking Employee Utilization Written Communication Accountability General Computer Literacy Second, we were surprised that the executive panel did not identify any competencies specifically relating to a global business environment or the challenges of interacting across cultural boundaries. Given the global propagation of manufacturing activities, we were expecting our panel to suggest that today’s or tomorrow’s successful industrial salesperson should have a keen global and cultural awareness and sensitivity. Third, even though this study focused specifically on industrial sales, and even though Northern Illinois University 1 2 3 4 5 5 6 6 6 7 7 7 8 8 8 9 9 9 9 9 9 10 10 10 10 10 13 14 18 Rank among sales managers 6 1 7 8 6 10 11 13 15 7 16 16 2 5 12 4 5 6 9 17 22 3 4 7 13 28 7 6 7 we primed participants to consider personal selling in the context of a manufacturing customer, surprisingly few of the competencies identified by the executive panel are directly related to manufacturing. Fourth, the competencies that our executive panel believed to be more important for the future than in the present were related primarily to selling knowledge, financial knowledge, business concept knowledge, interpersonal skills, problem solving skills, managerial skills, and optimism. Interestingly, none of these Fall 2006 competencies are distinctive to industrial sales compared to other selling professions. Fifth, there was considerable consistency between those competencies rated most important by the executive panel and the sales managers. The differences in perceived importance between the two respondent groups are noteworthy, however. Within the knowledge competencies, sales managers placed more importance on certain selling- and technologicalrelated competencies than the executive panel, and the executives placed more importance on several financial-related knowledge competencies than the sales managers. Within the skill competencies, sales managers placed more importance on certain interpersonal-, problem solving-, managerial-, analytical-, and technicalrelated competencies than the executive panel, 37 and there were very few skill competencies deemed more important by the executives compared to the managers (employee utilization, SWOT analysis). Within the value competencies, only assertiveness received a significantly different average importance rating across the two respondent groups. Finally, even though our study focused specifically on industrial sales, which is arguably a technical sales discipline, technological knowledge and technical skills both received relatively low evaluations of importance by both participant groups. Managerial Implications Drawing upon the findings from this research, we propose several actionable recommendations Table 5: Importance Ratings of Value Competencies Executive Panel Value Competency Ethical Behavior (honesty) Integrity Credibility (authentic) Listening Professionalism Responsible Self confidence Trustworthiness Achievement-orientation (competitive) Ambitious (initiative) Common sense Adaptable to change Assertive Genuine Customer Loyalty Determination Optimistic* Patience Friendly Future vision Charismatic Comfortable in ambiguity Unselfishness Humility Team Player Curiosity Company Loyalty (profitability) Compassionate Future 4.63 4.67 4.71 4.54 4.54 4.50 4.50 4.58 4.54 4.46 4.46 4.54 4.29 3.96 4.29 4.25 *4.38 4.13 4.04 4.08 3.92 4.00 3.92 4.04 4.21 3.75 3.67 3.71 Current 4.67 4.67 4.58 4.54 4.54 4.50 4.50 4.50 4.46 4.46 4.46 4.42 4.29 4.29 4.25 4.25 *4.17 4.17 4.08 4.08 4.00 3.92 3.92 3.88 3.88 3.83 3.71 3.67 Sales Managers 4.77 4.81 4.61 4.94 4.87 4.61 4.52 4.71 4.42 4.52 4.55 4.52 4.06 4.52 4.29 4.58 *4.32 4.55 4.55 3.94 4.16 3.90 3.90 4.06 4.23 3.97 3.90 3.94 Vol. 6, No. 4 38 Journal of Selling & Major Account Management Table 5: Most Important Value Competencies as Rated by Executive Panel and Sales Managers Value Competency Executive Rank Sales Manager Rank Ethical Behavior (honesty) 1 4 Integrity Credibility (authentic) Listening Professionalism Trustworthiness Responsible Self confidence Common sense Ambitious Achievement-orientation Adaptable to change Genuine Assertive Determination Customer loyalty Patience Optimistic Friendly Future vision 1 2 3 3 4 4 4 5 5 5 6 7 7 8 8 9 9 10 10 3 6 1 2 5 6 9 8 9 10 9 9 15 7 12 8 11 8 17 for executives, managers, and salespeople within the industrial sales profession. First, sales managers and human resource executives need to evaluate sales candidates not only on the basis of their conceptual knowledge, but also on their skills and professional and personal values. Successful industrial salespeople are not one- or even two-dimensional; they are three-dimensional personnel whose knowledge, abilities, and values deliver value for customers and profitability for their employer. Second, to ensure the global and cultural competencies of tomorrow’s industrial salesforce, sales managers must recognize the rapidly shifting landscape of manufacturing and adapt through advanced training and international sales exposure. We find it alarming that the executive panel in our study did not identify any globally-oriented competencies as critical for selling success. Northern Illinois University Third, sales managers and executives must recognize differences in their perceptions of the critical competencies for industrial sales success. In our study, the executive panel and sales managers reported different levels of importance across several domains. While sales managers placed more importance on selling and technological knowledge, the executive panel placed more importance on financial knowledge. Sales managers also placed more importance on skills than their executive counterparts. These differences seem to reflect a tendency for executives to emphasize top-line financial performance while sales managers are more concerned with the day-to-day competencies that are necessary to address customer needs and implement a value-creating solution. Executives, sales managers, and salespeople need to effectively communicate their own perspective while taking the time to understand others. Fourth, we challenge our own profession of academics to incorporate sales into disciplines outside the marketing discipline. Although it is necessary in some industries and for some product categories that industrial salespeople hold engineering, computer science, and other technical degrees, selling skills and customerand selling-related knowledge and skills are of paramount importance. In our own research and teaching in the industrial sales field, we have learned that the most critical determinant of success in industrial sales is an appreciation and understanding of the challenges faced by today’s manufacturers. Thus, we feel that the most important contribution of our research is establishing a definition of industrial sales that focuses on the customer’s intended application of a solution within a manufacturing process. A solution that solves a manufacturing challenge has value, and an effective salesperson is one who can both develop a workable solution that is in many cases technically complex, and communicate that value to the customer. Firms striving to develop a salesforce capable of delivering and Fall 2006 communicating this value would benefit greatly from the support of academic research that focuses on this distinctive field of inquiry. We hope that this research offers a fertile starting point for the development of this field. Limitations and Future Research There are several limitations of our current research that offer opportunities for refinement and further development in future research. First, our study does not rely on competency scales that have already been validated in the sales research, such as those offered by Rentz et al. (2002). This may be considered a limitation because the constructs we identified in our study were not subjected to validation that defines the gold standard of methodological rigor (such as the use of confirmatory factor analysis). However, because we felt that industrial sales might require a distinctive set of competencies, we thought it was more important to have industrial sales executives, deemed executives, to generate their own list of competencies, which we then compared in importance across different sales professions. Thus, we feel that our tradeoff of methodological rigor for external validity was the best course of action at this stage in this research program. Future research needs to validate the constructs we identified, and compare the relative importance of both the factors we identified as well as more established competency scales from the literature across different sales professions. Another limitation of our research is that the response rates we obtained (16.4% for the sales managers) were somewhat low. Because we were striving for a random sample across numerous sales professions, our solicitations for participation were impersonal due to our lack of personal connections within every industry. We chose a tradeoff between the diversity of our sample vs. response rate. Future research can be used to validate our findings among additional samples. Finally, although our research intends to identify 39 competencies that drive salesperson success, we relied on respondents’ subjective perceptions of “success” as the outcome of various competencies. Future research that incorporates objective indicators of success, such as achievement of sales quotas or sales managers’ ratings of the salesperson’s performance, would provide more reliable indicators of a salesperson’s actual performance. Despite these limitations, we feel that our study offers an important contribution to sales research. Because industrial sales has, to this point, never been defined in the sales literature, our research establishes a conceptual foundation and practitioner-driven insights for advancing the industrial sales profession. REFERENCES Boyatzis, R. E. (1982) The competent manager: A model for effective performance, New York, John Wiley and Sons. Churchill, G. A., Ford, N. M. & Walker, O. C. (1985) Sales Force Management, Homewood, Illinois., Richard D. Irwin. Evers, F. T., Rush, J. C. & Berdrow, I. (1998) The Basis of Competence, San Francisco, JosseyBass. Fleischer, C. S. (2003) The development of competencies in international public affairs. Journal of Public Affairs, 3, 76-84. Garavan, T. N. & McGuire, D. (2001) Competencies and Workplace Learning: Some Reflections on the Rhetoric and the Reality. Journal of Workplace Learning, 13, 144-163. Hoffmann, T. (1999) The Meanings of Competency. Journal of European Industrial Training, 23, 275-285. Lamont, L. A. W. J. L. (1974) Defining industrial sales behavior: a factor analytic study. In Curham, R. C. (Ed.) Chicago, American Marketing Association. McMurray, R. N. (1961) The mystique of superSalesmanship. Harvard Business Review, 11322. Moncrief, W. C. (1986) Selling Activity and Sales Vol. 6, No. 4 40 Journal of Selling & Major Account Management position taxonomies for industrial salesforces. Journal of Marketing Research, 23, 261-70. Moncrief, W. C. (1988) Five Types of Industrial Sales Jobs. Industrial Marketing Management, 17, 161-167. Newton, D. A. (1973) Sales Force Performance and Turnover, Cambridge, MA., Marketing Science Institute. Rangan, K. V. & Isaacson, B. (1991) What is Industrial Marketing? Harvard Business School Teaching Note, 9-592-012. Rentz, J. O., Shepherd, C. D., Tashchian, A., Dabholkar, P. A. & Ladd, R. T. (2002) A Measure of Selling Skill: Scale Development and Validation. Journal of Personal Selling & Sales Management, 22, 1321. Stephenson, J. & Weil, S. (1992) Quality in Learning: A Capability Approach in Higher Education, London, Kogan Page. Westera, W. (2001) Competences in education: a confusion of tongues. Journal of Curriculum Studies, 33, 75-88. Wotruba, T. R. (1996) The Transformation of Industrial Selling: Causes and Consequences. Industrial Marketing Management, 25, 327-338. Clifford S. Barber (Ph.D., University of Southern California), Assistant Professor of Industrial Technology, Orfalea College of Business, California Polytechnic State University, San Luis Obispo. E-mail: cbarber@calpoly.edu Brian C. Tietje (Ph.D., University of Washington), Associate Professor of Marketing, Orfalea College of Business, California Polytechnic State University, San Luis Obispo. E-mail: btietje@calpoly.edu Northern Illinois University Subscription form Journal of Selling & Major Account Management NAME BUSINESS/SCHOOL ADDRESS ZIP & STATE TITLE CITY COUNTRY Domestic Individual $50 Foreign Individual $70 Check enclosed Domestic Corporate $60 Foreign Corporate $80 Bill me later Mail this form to: Dan C. Weilbaker, JSMAM 128 Barsema Hall Northern Illinois University DeKalb, IL 60115 Or fax it to 815.753.6014 We appreciate your help! If you know of colleagues who might benefit and would be interested in subscribing to The Journal of Selling & Major Account Management, please forward one of the subscription forms. Thank-you, Dan C. Weilbaker, Editor Place Stamp Here Dan C. Weilbaker Journal of Selling & Major Account Management Department of Marketing 128 Barsema Hall Northern Illinois University DeKalb, IL 60115 FOLD HERE Application Article Fall 2006 43 Rethink Those Tips and Tactics: Powerful Negotiation Is Simple By Brian Dietmeyer Business-to-business buyers will always tell you they can get the same thing you're selling for less. However, business negotiation is just not that simple. Rarely is your value proposition identical to your competitor's. Rarely is price the only item that needs to be agreed upon. Learn how simple it is to respond with facts versus reacting emotionally. You’ve toiled for months to win the deal; you’ve diligently studied the prospect’s issues, needs and strategies, and you are certain that your solution is the perfect fit. That is important because the outcome of this deal could make or break your future with your employer. The big moment is finally here. It’s time to sign the contract. You stroll confidently into the conference room then stop cold in your tracks. Staring back from the table is the Chief Purchasing Officer, who’s not the friendly, receptive contact you’ve been working with since day one. You inquire about your contact’s whereabouts. “He’ll be here later,” deadpans the CPO. “How ‘bout we take a look at the contract in the meantime?” You smile weakly and set the contract before him. He briefly glances at it, pushes it away, sits back, folds his arms and hits you with a zinger: “Your competitor will give it to us for 20 percent cheaper.” Panic sets in. You can’t remember a one of those 138 tips and tactics you memorized at that last negotiation seminar a few months ago ( just to prepare yourself for this very moment. Your mind races to determine which of the four negotiation personality types you could categorize this hard-bargainer under and all you can come up with is “jerk.” (Unfortunately, this fifth personality type wasn’t discussed at the seminar.) And if you’re like most people, according to our formal and informal surveys of sales professionals and their managers, chances are you’re going to do just what the CPO wants (slash your price to get the deal). It’s no wonder buyers use this tactic all the time – it works! Even though many of them have admitted that they know the tactic is full of holes. Unfortunately most sales professionals don’t see them . They’re too afraid that their ship has almost come in and it’s going to leave without them. They don’t realize that the ship is firmly anchored and it’s not going anywhere without their support! The reason for this perception is because the negotiation has been made more complex than it should be and that’s far worse than confusing – it’s disempowering. What keeps the deal afloat or makes it sink isn’t pulling one perfect response out of an arsenal of a dozen, two dozen, or 200 hundred negotiation tactics. It has nothing to do with whether the person sitting on the other side of the table is the strong silent type, a motor mouth, obsessive compulsive, or an ADD. Whether you’re haggling over the price of a fleamarket watch or trying to win a global, multimillion dollar deal, every negotiation hinges on only two elements: Vol. 6, No. 4 44 Journal of Selling & Major Account Management 1. Consequences of No Agreement (CNA): what are the customers alternatives if you reach an impasse. What will your client do without you? Have they accurately analyzed their alternatives? Do they genuinely know what they’re getting (or getting into) without you? Are they comparing apples to apples or apples to orangutans? figure out a solution to get the deal done. Eventually, I quit calling because I knew what Dr. Bazerman would say and I finally realized that negotiation wasn’t complex. Dr. Bazerman’s formula was brilliantly simple. I had everything I needed to structure and respond intelligently to even the most challenging negotiation by: 2. Trades: how will the client pay for your solution; the total terms of the deal. a. Making a proper diagnosis: knowing precisely what would happen to both sides if the deal fell apart. When I joined Think! Inc., the negotiation strategy firm of which I am now president, I wasn’t genuinely convinced that negotiation could be boiled down to two simple elements. Every once in a while I would seek the counsel of Think!’s founder, Max Bazerman, Vice Chair of Harvard Law School’s Research Program on Negotiation. (He also happens to have a doctorate in negotiation strategy and came up with these two elements of negotiation after a decades of observing 20,000 deals in 46 countries.) His phone would ring and I would be on the other end. “I’ve got a new client trying to do a $30 million dollar deal,” I would announce breathlessly. “It’s a very complex, global negotiation…we’ve hit a snag!” “What will happen to both sides if they don’t agree? How is your client’s offer better?” Dr.Bazerman would patiently respond. “And what are the terms of the deal that will fund your solution, in rank order?” I called him more than a few times over the next several months. “It’s a global communications company doing a $100 million dollar deal…” I’d begin. “So, what are their consequences of no agreement and their trades?” Dr. Bazerman would respond. Every time, I received the same response: what will happen if they walk away from the deal and what are they willing to trade to move it forward? With that information, we could easily Northern Illinois University b. Putting a solution on the table better than that diagnosis, c. Knowing what both sides were willing to trade to fund the solution and close the deal. Here’s the rub: to make this optimally effective, you must think through nearly every aspect of what you potentially have to offer, what the competition has to offer, and the gap between the two (what you have that the competition doesn’t). Then, you have to think through what each side is willing to trade to close the deal. Very rarely do prospects analyze any of this and that can give you the advantage. In essence, prospects try to boil down both the consequences of no agreement and trades to the lowest common denominator – price. Your goal is to expand rather than reduce the discussion. Helping organizations attain the knowledge to do this effectively is the basis of our consulting business. Every organization’s offerings are unique which provides a multitude of nuanced opportunities to broaden any discussion or negotiation. However, most organizations overlook these opportunities. We expertly identify them and help you make the most of them, because the more creative each side can be with what they bring to the table, the better. The result is often amazing situations that create powerful business value and higher profits for both sides. But that’s another article. When you have a deep and broad understanding of your total value proposition and how important that value is to your prospect, you will Application Article Fall 2006 45 not be the least bit fazed when the buyer sits back, folds his arms, and announces: “Your competitor will give it to me for 20 percent cheaper.” what the competitor is offering and what you’re offering, and reviewing the trades ( the terms of the deal) to explore precisely what they’re investing to get the value that you have to offer. You won’t even be thinking about the personality type of this “hard-bargainer,” or what that negotiation expert spouted at that seminar last year. Instead, you will calmly ask a very simple, but important question. “What do you mean by ‘it?’ How does ‘it’ compare to what I have to offer? Does ‘it’ offer the same services and features, delivery, guarantees, warranties, support…” In the process, you’ll both likely discover that 20 percent cost savings probably comes at a high price, making your value proposition more desirable than ever. Consequently, the hard bargainer will be eager to do business with you, and you’ll walk away the hero. You will keep your job and even get a raise or promotion. Let me illustrate this further. Every once in a while, a client is foolish enough to call me up and announce, “Brian, you’re going to have to sharpen your pencil.” “Is that right?” I’ll respond. “That’s right. Company X’s negotiation training is 20 percent cheaper than yours.” “Well, let’s take a look at this more closely,” I’ll smile. And then I’ll show them the gap between what we offer and what Company X offers, so they can see what they’re genuinely receiving for their investment. That’s the power of simplicity. As President and CEO of Think! Inc., a global strategic negotiation consultancy, Brian Dietmeyer’s insight has resulted in impressive returns on investment (on average 270 percent) for Fortune 100 companies. He has nearly 25 years of leadership experience in sales, marketing, and strategic planning and is a sought-after author and speaker. E-mail: bjd@thinkinc.com I’ll ask questions around whether the competition’s value proposition includes custom case studies, expert consultants, ease of learning, application to live deals, return-on-investment analysis, post-training implementation – all of the services we provide. I’ll also look beyond price and explore the potential trades like payment terms, length of contract, consulting fees, and cancellation policies. My goal is to find out whether the value proposition of Company X is as strong as mine. It rarely is. If you take a similar approach I can almost guarantee the same for you when you reach the final stages of the negotiation. When that hardbargainer hits you with the “I-can-get-it- for-20percent-less” zinger, he probably doesn’t know what he’s talking about. It’s up to you to enlighten him by showing him the gap between Vol. 6, No. 4 46 Journal of Selling & Major Account Management How Can an Invisible Salesperson Become Visible Again By Joe Heller Do you remember a time when you were a kid and pretended to be invisible? Your imagination delighted your parents as you walked through the house inspiring them to play along with you. All could hear your innocent giggling. This was a positive for you because you thought you were able to alter reality. Fast forward to today, entrepreneurs and sales professionals are still invisible. Only this time it's not pretend, it's real; and you're wondering why potential clients can't see you. Are you confused why someone else is getting all of the referrals or how a big deal lands effortlessly in the lap of your competitor? You feel like jumping up and down and screaming at the top of your lungs, "Hey, here I am!" You are trapped behind the "veil of visibility" being pulled down by the same vacuum that pulls sailors to their death as their ship sinks. Invisibility for sales professionals is becoming more of a reality today than ever before. The world is more complex, more crowded, and more integrated than ever before. Competition is getting more rigorous; there are literally hundreds of suitors vying for the same opportunities in today’s marketplace, whereby only a few a decades ago, there were fewer and more timid competitors. Not only are there more competitors in the marketplace, but corporate America is increasing the noise, confusion, and mistrust with their stock manipulation, fraud, and mismanagement . Adding to the confusion is the new "law of the jungle." We no longer trust business to do the right thing; thus, the burden of integrity and responsibility has fallen to the individual instead of the company. Therefore, we have renewed our trust in the people to do the right thing, Northern Illinois University which adds another dimension for salespeople to gain visibility in an already bloodthirsty marketplace. With this in mind, let me dispel a common belief that many entrepreneurs and sales professionals have today--"build it, and they will come". The fallacy in these words is that it does not consider your ability and efforts to build a trusted relationship with your customers. Today the key to building a dynamic and thriving business, in this ever-evolving world, is building a foundation of trust--one person at a time. I've noticed in my travels that people have adopted a "so what” attitude. They are less concerned about the product/service features and advantages and are more concerned with individuals living up to their promises. People are doing business with people again, and they are saying, come and see me and please stop sending me those damn emails. I am not saying technology is bad; it does have its place. However, staying competitive and growing your business today means that you must break through the technology cloud and focus more on building strong personal relationships with your clients. It appears that technology is now controlling society instead of society controlling technology. Technology can also be useful in building personal relationships. For example the use of cell phones can be used to supplement the personal visits, since it also provides a dialogue between you and the client (unlike email or text messaging which tends to be a monologue.) Let's stop hiding behind emails or text messaging and speak to our clients whenever possible. How can a salesperson gain control and break through your "veil of invisibility"? The secret lies in branding--not corporate branding--but Application Article personal branding. A question I was recently asked during an interview with The Brand Channel was "…is it possible for a person to be a brand?" I answered no--not in the traditional sense of a brand. A personal brand is a metaphor for communicating your unique talents to your 'listening' market in such a way that they immediately understand the value you offer. A personal brand is about how to communicate the authenticity of your unique talents, your genius to the world. It's about earning the trust and respect of your market by establishing yourself as "the choice" and not "a choice" when someone has a need. Personal Branding is all about the quality of the communication you have with your "listening" market. Note: A "listening market' goes beyond a target market. It is a market that is specifically listening for your unique value message based on their experiences, expectations and historical references. In other words, it's why one company chooses to use Intel and another chooses AMD. Each computer microchip has very little performance difference; the real difference lies in the minds of the buyers who are 'listening' for a specific benefit message. This is a subset of how branding works. Just having a unique value in not enough. You cannot sit and wait expecting the world to discover your unique talents. In order to communicate your distinctive value to your listening market, consider a "visibility campaign". It's a way to communicate certain things, to certain people in a certain way that positions you to capture the attention of your internal market (firm/company) and/or your external market (clients/customers). If you think you can be successful in sales while staying invisible, you are misleading yourself into the depths of mediocrity. If you wish to become visible again to your customers then you need to ask and answer the following questions to prepare your visibility campaign. First steps: Ask yourself: 1) Do you have a FEAR of being visible to your Fall 2006 47 clients? Since being visible requires you to be dependable, reliable, and straightforward, there are those salespeople out there do not have or do not want to have as part of their offering. It does require more effort and time to be dependable, reliable, and straightforward, and you need to make a conscious choice about your willingness to be the person required when you are visible to your customers. 2) Do you have a "visibility plan" that will build trust and credibility? If the answer is no, then you need to continue with the remaining questions. If the answer is yes, then you need to begin or continue to implement your visibility plan. Since trust and credibility take time to build, it is important to begin your campaign as soon as possible. 3) If you do not have a visibility plan, what is the first step you can to today to begin your quest for more visibility? In order to create your visibility plan you must find the answers to the following five (5) questions. 1) What's your message? Remember--being unique is part of your new image so try not to use the same narrative that everyone else in your market uses. Be distinct, focus on the problems you have solved for your clients, and tie that into an emotional account from your client's perspective. 2) What media will be most effective? What are the experts in your field doing, where are they being published? This publishing helps build the trust and respect you need in your visibility campaign. Then you need to write an article on the focal issues your clients are facing today and offer your solutions. 3) What's your Brand Promise? Are you living up to the expectations the market has for you? Remember--you need to communicate with clarity to you market about your successes. You need to consistently educate as well as remind your market on how good you are. Vol. 6, No. 4 48 Journal of Selling & Major Account Management 4) Are you distinct? A catastrophic failing with many sales professionals is that they try to be all things to all people. When this happens, their brand gets diluted. Successful salespeople today are known for something, they've specialized. Use your specialization to define your offering to your listening market. 5) Do you have a story that can be easily told? Stories are viral and create buzz, hopping from one person to the next. Craft a story that's full of emotional facts of interest to the customer and provide a WIIFM (What’s in it for me) to get people excited about what you do. Hint: A speaker practices his or her story at least 50 times before going on stage. Make sure you 'own' your story before you tell it in public. So remember you can't stay invisible and expect to be successful! I challenge you to rise from the "Sea of Sameness,” and be the best sales professional you can be. It takes time and effort but is worth it in the end. In conclusion, by honestly asking and answering the questions above, you are on your way to changing from one of the multitudes of invisible salespeople to being one of a few visible sales people. This will allow you to be successful beyond your dreams. In order to be visible you need a plan, and you need to execute the plan. Being visible means that you are on the radar of the customer and must provide them value consistently. Joe Heller is the Chief Sales Instructor at GPS Selling Systems. For more information, please visit www.gpsselling.com Northern Illinois University Application Article 49 Fall 2006 What Does It Take to Become a Great Salesperson By John Costigan What one quality would make the difference between an average and a superior salesperson? There has been much debate over this fact with no clear answer to date. This article is an attempt to provide some rationale and reasoning behind why honesty or telling the truth leads to superior selling. The article concludes with several examples of how to put this principle into action. The most important attribute for salespeople Peering out the window of seat 3A at 35,000 feet, I stopped reading for a moment and sat back and just stared at the ocean. Here I was, heading eastbound on another transatlantic flight anticipating training another sales force in the UK, and I was looking at an email that was sent to me by a young sales person who had just graduated college. They had just read a book which I was fortunate enough to read as well called, “Wisdom for a Young CEO” by Douglas Barry. At the age of 14, Douglas wrote to some very successful people and asked them a great question: “What does it take to become a CEO?” Interestingly enough, most of these incredibly powerful people wrote him back-CEO’s of companies such as General Electric, American Express, GAP, Motorola, a virtual who’s who of corporate America. He compiled all of the responses which amassed over 150 pages of notes and responses and posted the actual letters in his book. The summaries of information included topics about their people, integrity, service, the customer, passion, respect, vision, humanity, curiosity, even pragmatism. As I read Douglas’ book and absorbed its content, I asked myself what kind of knowledge could be obtained if we used the same concept and sent hundreds of letters to successful sales people and asked, “What does it take to become an Outstanding Sales Person?” Selling Power Magazine wrote the number one skill a great sales person needs is charm. I found that surprising. Another article spoke of being extremely quick on your feet and dynamic. What about integrity, skills, attitude, intelligence, professionalism, and confidence? These qualities are all very important and have their place in line as being key ingredients that separate you from the rest of the pack. But which one is “the” most important. As I took out a pen and began to write all of my ideas on the napkin sitting on my tray table, the passenger in seat 3B spoke up and boldly asked what I was writing. He appeared to be a wise man, much wiser than I. It wasn’t long before I opened up to him. “I am in my early 40’s and have seemed to always be in a rush to gain wisdom, just as this book I read by Douglas Barry. I have learned that wisdom comes to you in its own time, not your time. And that usually means it comes with age, and you can’t rush it.” As we continued to speak, he said, “We do become much wiser as we get older, and obviously, we continue to make mistakes, but I believe part of gaining wisdom is having the ability to pick ourselves up much quicker than we did when we were young. Too many times we let the mistakes keep us down, and we fall backwards instead of falling forward and learning from them.” Enjoying this conversation, I replied back and said, “So, do you believe that’s it? Wisdom is the key ingredient to being a great sales person?” His response was simple, “What do you think?” As I began to continue to write my thoughts on the small square napkin glancing out at the Vol. 6, No. 4 50 Journal of Selling & Major Account Management horizon, we began to speak more and more. I then shared with him a wonderful quote that I had heard that represents wisdom to me. “When you are 18 years old, all you think about is what other people think about you. When you turn 40, you don’t care about what other people think about you, and when you reach 60, you realize no one ever thought about you anyway.” He laughed heartily and agreed. But I knew there was a single element that rose above all of the rest. One thing, I believe, we must embrace and I think it took me this long to realize this was thee ingredient: Trust. Trust is everything. If the customer doesn’t trust you, it doesn’t matter how wonderful the company and the product are, they won’t buy. Oh sure, when we talk “retail”, we can drive to most franchise fast food restaurants where you “trust” that the burger, the fries, and the soft drink will taste the same, no matter who is serving it. It doesn’t take a sales person to help you decide on a Number 3 with a Diet Coke. Or, if you want to buy a particular brand of car, regardless of how scared we might be walking on the lot of how we will be approached by the sales person, if we want it, we’ll buy it. The days of having that “strong” long term relationship with a sales person at a dealership are fleeting. From McDonalds to Mercedes, these companies spend millions of dollars on building customer confidence, loyalty and yes, trust. What I am talking about is the true face to face discussions of business done B2B. (Business-toBusiness). True sales people discussing issues with customers while establishing trust along the way. Not that long ago, in the 1960’s and 1970’s, and even before then, a hand shake and “your word” was everything. It meant more than the contract. My father once told me, “Johnny, if you ever have to get out the contract, you both lose. Any issue you have with a customer should be negotiated with a handshake and your word.” Even though my father told me that in the 70’s, it still holds true today. I believe a hand shake Northern Illinois University and your word have become a “lost art” if you will. The world has changed dramatically, and trust is becoming harder to find. So what happened? What happened in the last twenty to thirty years that resulted in our cultures’ inability to trust and promote skepticism at such high levels? I believe there are a variety of reasons. The internet is one. It provides us with immediate results to any inquiry we desire, and at the speed of light, allowing our customers to seek out more information, more vendors, more pricing, and more options than ever before. This results in more information, more time to deliberate and more time to question and “stall” their decisions to move forward. When a customer knows more about other options, it results in longer sales cycles and questions themselves in “trusting” they have made the right decision. Look at the policies and procedures our own government has begun to put in place to prevent another Enron. Was that simply due to greed; or was the pressure to perform so great that those high level executives tumbled due to fraud, leading to investors and employees paying dearly? Hence, we again reduce our level of “trust”. The examples I can mention that have contributed to our cultures inability to “trust’ are endless. We live in a time where we get fired much quicker than we did 25 or 30 years ago. Our children are being raised in a culture where patience may not be considered the virtue it once was. So we have been swayed to say or do things quickly and where trust isn’t the key ingredient, results are! How can you begin to earn trust? So the real question is how can you begin to earn trust, in a world where we all constantly have our guards up? Now the positive part of the equation; It’s easier than you think. It’s no coincidence that trust and truth are very similar in their spelling, just a two Application Article letter difference. Josh Billings once wrote, “As scarce as the truth is, the supply has always been in excess of the demand.” I love this quote because it leads us to question if we really want to know the truth or simply continue to listen with “happy ears.” I always ask my students, “What percentage of customers lie to you?” and consistently the answer barked out in unison, as I speak to audiences around the world is, “100 Percent!” And, of course, everyone laughs, but when you think about it, that answer might be right on. We run into so many customers who will tell us, “Just looking for pricing.” or “Send me some information, and we’ll get back to you.” or “Things look really good, I just need to see more information.” only to realize they were using our information to get a better deal from the incumbent. The real reason customers may have a tendency to lie to us is simple: US! We forced them to lie. Think about it. When a customer finally decides to tell us “Thanks again, but we have chosen another vendor.” What is our first response? We say, “Why? What happened?” When you say that, how do you think that makes the customer feel? You guessed it….defensive. When was the last time you sold a defensive customer? Their defense mechanism is on high alert, and anything you have to say at this point will bounce right back off their shields because they know you will make them feel bad about telling the truth. Did you really expect them to say “Why? Ummmm....We don’t know why. Heck, sorry. Let’s just do it with you.” Of course not. So they lie to us. It’s easier for them to say “Not sure, we’ll get back to you.” And then they send an email saying you lost so they don’t have to talk to you in person. This is our fault. How do we change this? Simply do the opposite. When a customer says,” Looks like we are going to chose someone else.” Simply say with passion and positive attitude, “Great. Good for you guys. I’m glad you found the right vendor. Now that I know you are not moving Fall 2006 51 forward with us, do you mind if I ask you if there was one thing you thought we needed to do a better job at, what would have it been?” See, when you respond positively like you really don’t care that you lost, they will let down their guard and tell you the real reason. When they tell you the real reason, you can now say, “Boy, that’s amazing….. that’s the one thing that kept you guys from choosing to move forward with us. Do you mind if I ask you a question? If I was able to fix that one thing, or make that problem go away, do you want to keep talking?” It’s amazing how many times you will hear the customer ask you, “Well, can you?” Now you are back in the game. I have numerous customers that had told me “No fit” and when I said “Great. Thanks for your honesty.” I was able to get their guard down, find out the real reason, and turn them around. Obviously, if they already signed the deal, then the discussion was over. But if they hadn’t signed and hadn’t contacted the other vendor yet, it’s still open for discussion. The question I posed above is about getting results in a world that may force us to “bend the rules”, and continue to be 100 percent truthful. Remember Harry Truman? He was our 33rd President. He was labeled “Give’m Hell Harry” due to his directness. In his reply to this label that the media tagged him with, he said, “I never gave anybody hell, I just told them the truth, they thought it was hell.” I can’t recall a quote as powerful. From personal experience I can say that my company has grown beyond all expectations due to this simple philosophy. We tell the truth. When customers ask us, “Are you more expensive than the competition?” Our answer is, “Absolutely. Do you mind if I ask you why you asked?” Or if the customer asks us, “Can you come down on price?” Our answer is “You know, I lose no matter how I answer that question. If I say “No”, that could end this discussion. If I say “Yes”, then it gives the appearance that we were trying to take advantage of you with our original offer. So, there must be Vol. 6, No. 4 52 Journal of Selling & Major Account Management a reason you asked?” All sales people will always have these concerns; Are we too expensive? Where do we stand? Is this the right fit? When are they going to make a decision? Am I just here because I am one of the people in the bid process? Why do they really want to do business with us? etc… Be Harry Truman. Cut to the chase and don’t waste time. Example: Mr. Customer, I love telling the story of Harry Truman, our 33rd President known as “Give’m Hell Harry. He was famous for saying “I never gave anybody hell. I just told them the truth, they thought it was hell. I want to ask you a question. My biggest fear is you are already happy where you are at, and the reason for my involvement is simply to give you a gut check on making sure you have the best deal from the incumbent. Can you help me with that?” This is incredibly powerful! WHY? Because it’s the truth!!! We were just too afraid to speak it. We would go back to our office and sit there and wonder where we are on the deal, fill out a forecast that we know in our heart isn’t 100 percent accurate, and “hope” we get the deal. According to Rick Page’s book, “Hope is not a Strategy.” I agree! You will face this over and over and over again. For example: A deal is stalled. Call your customer right now and say “Mrs. Customer. My biggest concern is that as much as I would love to win this business, it’s becoming obvious that I want to win this deal more than you actually want to move forward and get your issues resolved. So for that, I apologize. I feel like I am a doctor begging you to go into surgery when you’re the one with the problem.” When you speak the truth, you gain respect from the customer, and more importantly, from yourself. And what happens is that you take people by surprise because THEY ARE NOT USED TO IT!!! So, if and when a letter lands on my desk asking Northern Illinois University me “Mr. Costigan, what does it take to become a great sales person.” I will tell them to tell the truth, at all costs and you should too. Why? Number one, you will feel good about it. Number two, when you begin to lie, your customer will see right through it. Number three, you will gain instant credibility. No one has the “perfect” solution. And number four, you will win WAY more business because we live in a society where the truth can be so hard to come by, you will stand out among the rest. Wheels down…Time to go be Harry Truman. John Costigan is the President and Founder of John Costigan Companies. Prior to founding his own company, John was a top sales representative and account executive for leading software and Internet companies. He created a unique sales training program in which he demonstrates the effectiveness of his proven techniques by making impromptu calls to prospects that are provided to him by the client. John holds a Bachelor of Science Degree in Education from Northern Illinois University. For more information, please visit www.JohnCostiganCompanies.com Subscription form Journal of Selling & Major Account Management NAME BUSINESS/SCHOOL ADDRESS ZIP & STATE TITLE CITY COUNTRY Domestic Individual $50 Foreign Individual $70 Check enclosed Domestic Corporate $60 Foreign Corporate $80 Bill me later Mail this form to: Dan C. Weilbaker, JSMAM 128 Barsema Hall Northern Illinois University DeKalb, IL 60115 Or fax it to 815.753.6014 We appreciate your help! If you know of colleagues who might benefit and would be interested in subscribing to The Journal of Selling & Major Account Management, please forward one of the subscription forms. Thank-you, Dan C. Weilbaker, Editor Place Stamp Here Dan C. Weilbaker Journal of Selling & Major Account Management Department of Marketing 128 Barsema Hall Northern Illinois University DeKalb, IL 60115 FOLD HERE