Implications of value orientation for sales practice in business markets Course title: Industrial Marketing and Purchasing in an a Business Market (FÖ2009) Made by: Yevgeniya Podolskaya 890425-T082
Lecturer: Lena Bjerhammar
Table of Contents
Conceptualizing value-based selling3
Value-based sales practice4
Training the front-line staffs for co-creating value7
The concepts of customer value and value creation have been the key issue in both business marketing theory and practice. The investigation of the nature of value, creating and delivering it to the customers has been central in the contemporary marketing research (Lindgreen & Wynstra, 2005, Lindgreen, Hingley, Grant, & Morgan, 2012, van Rensburg, 2012, Terho, Haas, Eggert, & Ulaga, 2012, Töytäri, Alejandro, Parvinen, Ollila, & Rosendahl, 2011). The Marketing literature has well documented the importance of creating, communicating and delivering value for buyers, as it is the major source of a firm’s competitive advantage (van Rensburg, 2012, Töytäri, Alejandro, Parvinen, Ollila, & Rosendahl, 2011).
Yet, the researchers agree on the fact that the understanding of value in the business-to-business marketing context remains baffling in terms of both conceptualizing value and accomplishing the value-creation activities into practice (van Rensburg, 2012,Töytäri, Alejandro, Parvinen, Ollila, & Rosendahl, 2011, Salomonson, Åberg, & Allwood, 2012). The research on the ways of effective implementation of value-based practices in B-to-B market, especially at the sales-force level has started to emerge within the academic circles only recently, and most of the research neglects the means of translating the theoretical debate into operational processes (Terho, Haas, Eggert, & Ulaga, 2012, Töytäri, Alejandro, Parvinen, Ollila, & Rosendahl, 2011). In spite of it, value-orientation in the selling process, as well as effective customer-oriented selling approach plays a crucial role in carrying out a firm’s marketing strategies (Terho, Haas, Eggert, & Ulaga, 2012, Töytäri, Alejandro, Parvinen, Ollila, & Rosendahl, 2011). Value-based selling is an inseparable, and, arguably, one of the most important part of value-creation process. It helps to understand, and improve the customer business pro-actively and deliver mutual benefits to suppliers and customers (Töytäri, Alejandro, Parvinen, Ollila, & Rosendahl, 2011). Moreover, it can potentially improve organizational selling performance, lead to deepened customer relationships, reduce customer’s price sensitivity and increase loyalty of the customer (Terho, Haas, Eggert, & Ulaga, 2012). Purpose
The collection of articles reviewed in this course paper aims at summarizing the implications of value orientation for sales practice, by constructing relationship between conceptualization of value-based selling and the function of the sales force as the major actor of value co-creation through value-based sales practices, thus establishing a practical platform for value-based selling in industrial business markets. Method
Most of the articles reviewed in this paper were drawn from the recent issues of scientific journals in the field of business-to-business marketing and offer various contexts of the notion of value creation from the perspective of the supplier’s sales department. The papers reviewed largely focus on value-orientation, the process of value co-creation, sales force role in this process, as well as theoretical and practical implications of value-based selling. The findings from the literature review are organized around the three-dimensional framework of value-based selling, proposed in the article by Terho et al. (Terho et al., 2012). Some of the key words used for article search: value-based selling, value in...