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Vargo
Keywords: marketing theory, selling and sales management, institutional theory, service-dominant logic
ver the last decade, sales scholars and practitioners sales process from one that is linear and focused almost entirely
However, since the 1970s, researchers and practitioners emphasis on benefits). Such orientations also increasingly
have increasingly recognized the importance of relationship question narrow buyer–seller dyads and point out that selling
selling. Relationship selling emphasizes the roles of salespeople and value creation unfold over time in complex systems in-
in developing and maintaining relationships with buyers for volving many actors.
mutual long-term benefits (Dwyer, Schurr, and Oh 1987; Weitz Consultative selling, for example, which Rackham and
and Bradford 1999). As Jolson (1997) explains, “Instead of DeVincentis (1998) attribute to increasingly sophisticated
viewing selling as a series of struggles that the salesperson must buyers and buying processes, emphasizes the importance of
win from a steady stream of prospects and customers of all sizes salespeople providing buyers with information, helping buyers
and shapes, relationship selling or partnering focuses on the discover and understand needs, determining and providing
building of mutual trust within the buyer–seller dyad with a adequate and often customized solutions, performing nonselling
delivery of anticipated, long-term, value-added benefits to tasks (e.g., planning, analysis, preparing proposals), and in-
buyers” (p. 76). volving additional personnel in sales efforts. Such tasks ne-
Recent sales orientations, such as consultative and enter- cessitate the awareness and participation of broad (sets of) actors
prise selling (Rackham and DeVincentis 1998), accentuate in value creation (e.g., competitors and collaborators of both
characteristics of relationship selling (e.g., trust, long-term the selling and buying organizations, intra- and interfunctional
Perception of value creation The selling firm creates value The selling firm creates value The selling firm cocreates value
and delivers it to the buying and delivers it to the buying with the buying firm.
firm. firm.
Perceived ability of High High to medium Medium to low
salesperson to influence
purchase
Competition and cooperation Salespeople and buyers Selling and buying actors Many actors from the selling
between sellers and buyers compete with one another to collaborate with one another to and buying firm collaborate with
win, at the expense of the facilitate win-win exchange. one another to facilitate win-win
other. exchange.
Involvement in Exchange
Selling actor Salespeople find prospective Salespeople and buyers develop Salespeople and many other
buyers and assess whether the trust-based, mutually beneficial cross-functional actors from
prospective buyer should be long-term relationships. both the selling and buying
‘sold’ to. Then, they deliver value Salespeople provide buyers with firms aid the development of
propositions, negotiate exchange information, help buyers discover trust-based, mutually beneficial
terms, and coordinate the flow of and understand needs, long-term relationships and
value from the selling firm to the determine and provide a solution, work together on tasks that
buying firm. and involve other relevant actors result in a deeper integration of
from the selling firm. both organizations.
Number of actors Two (salesperson and buyer) Two to several (increasing Many (broad involvement of
recognition of broader actor buying and selling actors)
involvement both in selling and
buying)
prominent attention in the marketing and sales literature The regulative element comprises processes that have “the
streams. However, contemporary marketing work (e.g., capacity to establish rules, inspect other’s conformity to them,
Edvardsson et al. 2014; Hillebrand, Driessen, and Koll 2015; and as necessary manipulate sanctions—rewards or punish-
Vargo and Lusch 2016; Webster and Lusch 2013) is re- ments—in an attempt to influence future behavior” (Scott 2013,
vitalizing awareness that systemic and institutional thought p. 59). These sanctions can be formal (e.g., licenses or court
is foundational to marketing and, arguably, also to sales. punishments) or informal (e.g., losing or gaining face through
Edvardsson et al. (2014, p. 303), for example, state that in- shaming or legitimizing activities) (North 1990). The normative
stitutional arrangements “coordinate the activities of resource element describes prescriptive, evaluative, and obligatory di-
integration by shaping the actors’ value cocreation behavior in mensions of social life. This element emphasizes values and
service systems,” and Vargo and Lusch (2016, p. 5) claim that norms and how these values and norms shape actor roles.
institutional arrangements are “the keys to understanding human Accordingly, the normative element emphasizes desired ends
systems and social activity, such as value cocreation, in general.” (e.g., goals, objectives) as well as how actors may pursue them.
This contemporary marketing literature is greatly influenced Finally, the cultural-cognitive element comprises “the
by sociological and organizational theory, which has made shared conceptions that constitute the nature of social reality and
significant progress in overcoming overly rational and static create the frames through which meaning is made” (Scott 2013, p.
views on institutions. Specifically, scholars such as Bourdieu 67) or, stated alternatively, what underlies the habitual actions of
(1977), Giddens (1984), and DiMaggio (1988) clarify the en- actors. Jointly, these three pillars span the conscious and the
abling and constraining properties of institutions by addressing unconscious, or, similarly, the legally enforceable and the taken-
the tensions between structure (i.e., normative constraints) and for-granted elements of institutions (Hoffman 2001; Scott 2013).
agency (i.e., the ability to act independently). Similarly, Scott In marketing, the three institutional pillars are used both
(2013) claims that “institutions provide stimulus, guidelines, explicitly and implicitly. For example, work on industries,
and resources for acting as well as prohibitions and constraints channels, and strategic orientations by Humphreys (2010),
on actions” (p. 58) and argues that institutions comprise reg- Grewal and Dharwadkar (2002), and Press et al. (2014) ex-
ulative, normative, and cultural-cognitive elements. plicitly highlights the importance of these institutional pillars.
masked by the fact that a large degree of institutional alignment Sharma (2008), taking a balanced view, note “a shift towards
and selling efforts have already occurred. interactivity, connectivity, and ongoing relationships,” which,
It is important to point out that the service ecosystems along with the “enhanced use of technology[,] will reduce some
perspective does not diminish the contributions of the existing traditional sales functions” but “will also lead to changes in the
sales literature; rather, this holistic perspective reconciles and … role of [the] salesperson [to be] more [like] that of a general
builds on many of these contributions. Consistent with dyadic manager … responsible for marshaling internal and external
perspectives, Salesforce was able to form strong relationships resources to satisfy customer needs and wants” (p. 260).
with customers, industry experts, and journalists. For example, A service ecosystems perspective reveals that neither
many would argue that the company excelled in prospecting by the importance of selling nor the nature of markets are fun-
targeting end users rather than following the industry norm of damentally changing. What might be changing, as evi-
targeting executives. The meeting and travel practices of end denced by the changes in the tasks salespeople perform, are
users often resulted in institutional frictions with client-server the numbers of crossing points that need to be aligned and
solutions and their restrictive data accessibility. After a suc- the technologies with which actors can engage in in-
cessful trial, end users often lobbied their managers to try the stitutional alignment processes. Norman (2011), for ex-
SaaS solution (e.g., they engaged in selling, the thinning of ample, showcases how even tools designed to be simple
crossing points). generally make the world more complex as they tend to
The service ecosystems perspective can also inform the increase the number of connections among actors and
debate regarding whether the importance of salespeople is subsystems. However, despite this increase in complexity,
increasing or decreasing due to changes in markets. As we have systemic and institutional alignments have always been at the
stated, whereas some theoreticians and practitioners believe that heart of selling. Thus, we argue that selling must always be
market changes will diminish the power and strategic impor- viewed through a systemic lens and that the debate about
tance of salespeople, others predict that salespeople will become whether changes in modern markets influence the importance
more important (Hunter and Perreault 2007, p. 16). Sheth and of salespeople is focused on the wrong question.