Sales Force Effectiveness Framework

SALES FORCE EFFECflVENESS: THE ROLE OF MARKET-oRIENTATION AND SALES FORCE AUTONOMY

Mike Brooke and Siegfried P. Gudergan University of Technology, Sydney

Abstract

We present a conceptual model of sales force effectiveness. The model explains the effects on and of market-orientation and sales force autonomy as the central factors in our model. We develop six propositions and discuss the findings of eight case studies of Australian pharmaceutical companies.

Sales Foree Effectiveness

The pressures of competition in business environments continue to impact on sales forces in a number of ways, the most visible being a continuing demand for increased sales force effectiveness. This is amplified by the various constraints on organizational resources that necessitate close examination of expenditure on key cost centres, with one of the most significant being sales forces in many organizations. In addition to cost constraints, there are changes in the competitive landscape in which sales forces operate that include the acceleration of competition and increasing expectations of customers. It is a disconcerting fact that many, if not most, businesses struggle to enhance the effectiveness of their sales forces. For instance, our study of sales management practices in Australian healthcare companies revealed that sales managers believe their sales forces are not as effective as they could be. Given the shortcomings in managing sales force effectiveness, we need to understand what practices can enhance the effectiveness of sales forces. The goal of this paper is to provide such insights. More specifically, this study aims to enhance our understanding of the processes driving sales force effectiveness and develop sound managerial guidelines to improve sales management practices in order to enhance the probability of managing effective sales forces that facilitate the achievement of objectives. This constitutes a contribution of practical relevance, as the careful...