The Preliminary Model

As described in the Research Approach chapter, the Preliminary Model has been derived and formulated from earlier scientific work. The model is developed as a generic model for sales force readiness during new product launch. The purpose of the Preliminary Model is to make sure that concept and constructs are grounded in the literature and also to form a broad base of variables for the identification, via qualitative research, of potential key success factors (variables in the later defined Research Model), which are relevant within the scope of this research. The detailed formulation process of the Preliminary Model is described in Appendix 2 and shown in a graphical representation in Figure 5.

The formulated Preliminary Model is defined in three stages. The first stage, Circumstance, includes the two categories type of new product and market dynamics. The type of new product is understood here either as a new product type to the world and hence for the company, or that the product type is not new to the world but new to the company or that the product is only a revision or update of a product currently within the company (Micheal et al. 2003). The market dynamics are understood here as the nature of the market environment for the product at the time it was introduced (Hultink and Atuahene-Gima 2000).

The second stage, Sales Force Factors, includes the six categories: sales force new product adoption, sales force behavior control, sales force outcome control, supervisory context, sales force organization design and salesperson characteristics. The categories are described as follows: Sales force new product adoption is defined as the commitment and effort the sales representatives put into the new product, emotionally, in interaction with other sales representatives and in the planning and execution phase (Hultink and Atuahene-Gima 2000). Sales force behavior control focuses on how the sales forces followed procedures and the evaluation of how they were held accountable for their actions (Hultink and Atuahene-Gima 2000). Sales force outcome control is

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described as to what level performance goals were evaluated, weight towards tangible rewards and how the follow-up on these goals was handled (Hultink and Atuahene-Gima 2000). Supervisory context includes the level of internal marketing around the sales force understanding of the background and rationale of the product, trust in supervisors and intra-company relationships, training received and the field attention that they were given (Hultink and Atuahene-Gima 2000). Sales force organization design is described as the way in which the sales force was organized, e.g. geographic, assigned towards customer type, in teams, etc (Micheal et al. 2003). Salesperson characteristics described the salesperson’s experience, ability to learn, solve problems and his/her preference for career success (Atuahene-Gima 1997).

The third stage, Effect, is described by the category performance in selling a new product, which constitutes the extent to which the product has been successful in terms of market share, volume, uptake in the market, exceeding set targets, achievement of sales managers’ objectives and profit generation of old products (Hultink and Atuahene-Gima 2000).

Figure 5: Preliminary Model

Generic model for sales force readiness during new product launch.

The variables and items identified in the Preliminary Model will be further explored in section 4.4, Construction of Research Model, in relation to the outcome of conducted

Sales force New Product Adoption

Type of new product

Sales Force Factors

Circumstance

Sales force behavior control Sales force Outcome Control

Supervisory Context Sales force Organization Design

Sales-person Characteristics Market dynamics

Performance in selling a new

product Effect

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case studies and expert interviews, both in terms of how they apply to a final Research Model and their base in the literature.

The stages, categories, variables and related items of the Preliminary Model are presented in Table 7, together with its primary sources in the literature.

Table 7: Details of the Preliminary Model

The Preliminary Model (generic model for sales force readiness during new product launch) with its stages, categories, variables, items and primary source within the literature.

Stage Category/Variable Items Primary Source Circumstance

Type of new

product • new-to-the-market and new-to-the-firm

• not-market but

Market Dynamics the nature of the market environment for this new product at the time it was introduced 1. Stable – unstable

2. Certain – uncertain

3. Changes slowly – changes rapidly 4. Predictable – unpredictable

Erik Jan success of this new product

ii. Achieving objectives for this new products has a great deal of personal meaning to the Sales Rep

iii. Sales Rep discusses this new product with other salespeople

iv. Sales Rep feel a strong sense of duty to ensure the success of this new product v. Sales Rep would be willing to make further investment of my time and energy to support this new product

b. effort (formative scale)

i. Compared to other products you have sold, how much effort did the Sales Rep

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devote to this new product in:

1. Prospecting for customers 2. Planning sales calls

3. Collecting market information 4. Using market information 5. Building customer relationships Sales-force

behavior control

a. Sales people are held accountable for their actions in selling the new product, regardless of results they achieve

b. Sales Rep’s supervisor monitors the extent to which salespeople follow

established procedures pertaining to the new product

c. Sales Reps’ supervisors evaluates the procedures salespeople use to accomplish the task of selling this new product

d. Sales Rep’s pay increases and other tangible rewards depend on:

d-i. How well I follow laid down procedures pertaining to this new product d-ii. My knowledge of specific

procedures and practices in selling this new product salespeople on this new product place primary weight on results

b. If Sales Rep’s performance goals for this new product were not met, the Sales Rep would be required to explain why

c. Sales Rep’s pay increases and other tangible rewards depend on:

c-i. How Sales Rep’s performance compares with the goals for this new product c-ii. The degree to which Sales Rep have achieved the goals for this new product c-iii. The degree to which Sales Rep have achieved specified outputs regardless of whether sales procedures were

Supervisory context a. Internal Marketing

i. Sales Rep’s supervisory made sure every salesperson knew the incentives for

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selling this product

ii. Sales Rep’s supervisory explained the rationale for the introduction of this product iii. Sales Rep’s supervisory explained the research behind the development of this new product

iv. Sales Rep’s supervisory explained how this new product fits in the company’s strategic objectives

b. Trust

i. Sales Rep’s supervisory and I have a sharing relationship. Sales Reps can freely share ideas and feelings about the work.

ii. Sales Rep can freely talk to his/her supervisor about difficulties they have at work and know that he or she will want to listen.

iii. Sales Rep’s supervisor and Sales Rep have made a considerable emotional investments in our working relationship c. Training

i. Sales Rep received substantial training before assumed responsibility for selling this new product

ii. Sales Rep have spent a significant amount of time in training for this new product

iii. training program for this new product is first class

d. Field Attention

i. Sales Rep’s supervisor spends time with me in the field

ii. Sales Rep’s supervisor makes joint sales calls with me

iii. Sales Rep’s supervisor observes my performance in the field

GIMA. (2000).

Sales force

organization design a. Geographic (are territories assigned geographically?)

b. Customer types (are customer types

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assigned independent of or dependent on geography)

c. National Accounts

d. Independent Agents or Representatives e. Product Groups

f. Selling Teams Sales-person

characteristics a. learning orientation of the salesperson b. performance orientation of the salesperson

c. problem-solver: (intuitive vs.

systematic)

d. career success of the salesperson e. salesperson’s experience

Atuahene-Gima (1997)

Effect PERFORMANCE in Selling a new product

a. to what extent have you been successful in

i. gaining significant market share for this new product?

ii. Generating high level sales volume for this new product?

iii. Quickly generating sales for this new product?

iv. Exceeding sales targets set for this new product?

v. Assisting sales manager in achieving the objectives for this new product?

vi. Profits/enabling sales of “old”

products?

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