Examining the consequences of sales management control strategies in European field sales organizations

Abstract

The effective management of sales organizations is important to managers of international marketing operations spanning multiple countries, but also to managers of local operations who may question the validity of many of the prescriptions of US-based research. Studies sales management control in companies in Austria and the UK to contribute a European perspective on behaviour-based control compared to outcome-based control. Focuses on the pivotal role of the field sales manager compared to prior research at the salesperson and chief sales executive levels. Confirms the robustness of the behaviour-based control in these international contexts, and also contributes a number of new insights to the general sales management control research literature. Identifies a number of important research directions in this important area, as well as implications for managers of international selling organizations.

Salesforce Control Systems as Direct Antecedents of Salesperson and Sales Unit Performance: A Literature Review

“…We find support to this link in the field sales managers' sample of Babakus et al [12] and Grant and Cravens [16] studies from Australian marketers; the British-based researches of Piercy et al [26,72]; the works of Baldauf et al [38,67,75] in Austria the United Kingdom, and Australia; the multicultural study in Austria, Bahrain, Greece, India, Israel, Malaysia, Nigeria, Saudi Arabia, and the United Kingdom by Cravens et al [69]; and the analyzes of Spanish industrial sector from Verano-Tacoronte and Melián-González [76], and Küster and Canales [77] considering fixed salary as a main indicator of a behavioral-based control system. Moreover, two British studies from sales managers of diverse British industrial and consumer products from Piercy et al [29,78] relate sales manager behavior-based control level together with behavior-based competences, with salesperson behavior performance.…”

“…This system emphasizes the use of field sales managers coupled with fixed salary compensation [3,48], and is typified by high levels of supervisor monitoring, direction and intervention in activities, and subjective and complex methods of evaluating performance, centered on salesperson's job inputs [48]. Under such control system, managers monitor and evaluate inputs from employees who are more likely to take a long term view, take risks in the performance of their duties, and engage in activities as relationship building, which do not result in short-term sales, but are necessary for the long-term success [38,47]. Common tools used in behavior-based systems include group meeting, feedback from managers, training programs, incentive programs, scheduling, and territory management.…”

Behaviour Based Salesforce Control System for Most Effective Sales Organizations: A Review Based Article

“…Evaluating sales organization effectiveness on the dimensions of sales and market share, profitability and customer satisfaction, Baldauf et al (2001b) examined the effect of salesforce control system on sales organization effectiveness. Using a judgement sampling approach and collecting data from 159 field sales managers from Austria and 142 field sales managers from U.K, the findings of the study showed that behaviour based salesforce control system is positively and significantly related with sales organization effectiveness and satisfaction with salespeople.…”

“…In their study on 159 field sales managers from Austria and 142 field sales managers from U.K, Baldauf et al (2001b) found that several components of behaviour performance such as technical knowledge, sales planning, adaptive selling, teamwork, sales presentations and sales support have a positive relationship with behaviour based salesforce control system.…”

“…The systems also allow salespeople and managers to spend their time on planning and gathering information regarding customers (Anderson and Oliver, 1987). Baldauf et al (2001b) found behaviour based control system to be positively related to affects and attitudes (cooperating as a sales team, accepting direction and authority) and intrinsic and recognition motivation.…”