THe IMPLIcaTIons oF seRvIce-DoMInanT LogIc anD InTegRaTeD soLuTIons on THe saLes FuncTIon

Kenneth Le Meunier-FitzHugh, Jasmin Baumann, Roger Palmer, and Hugh Wilson This study explores the implications of an organization moving toward service-dominant logic (S-D logic) on the sales function. Driven by its customers needs, a service orientation by its nature requires personal interaction and sales personnel are in an ideal position to develop offerings with the customer. However, the development of S-D logic may require sales staff to develop additional skills. Employing a single case study, the study identified that sales personnel are quick to appreciate the advantages of S-D logic for customer satisfaction and six specific skills were highlighted and explored. Further, three propositions were identified: in an organization adopting S-D logic, the sales process needs to elicit needs at both embedded-value and value-in-use levels. In addition, the sales process needs to coproduce not just goods and service attributes but also attributes of the customers usage processes. Further, the sales process needs to coproduce not just goods and service attributes but also attributes of the customers usage processes.

Service-dominant logic (S-D logic) has been creating considerable interest in academic and practitioner circles with the proposition that S-D logic has the potential to dramatically alter an organizations operations, culture, and overall strategic outlook to create mutual benefits to buyer and seller groups (Vargo and Lusch 2004). Some skeptics may regard it as old wine in new bottles, as indeed elements of concepts such as market orientation, services and relationship marketing, as well as network perspectives and integrated marketing communications can be traced in S-D logic (Aitken et al. 2006). However, S-D logic consolidates these ideas into a single coherent construct that not only applies to individual aspects of marketing but also has the potential to transform the whole discipline in theory and practice. Focusing on service and customer orientation as the heart of all business activity, S-D logic may be seen as a framework for reconfiguring sales activities to seek and provide integrated solutions for customers. As one of the primary interfaces with the buyer, the sales function is likely
Kenneth Le Meunier-FitzHugh (Ph.D., University of Warwick), Senior Lecturer in Marketing, Norwich Business School, University of East Anglia, UK, k.le-meunier-fitzhugh@uea.ac.uk. Jasmin Baumann (M.A., University of Hertfordshire), Doctoral Researcher, Norwich Business School, University of East Anglia, UK, j.baumann@uea.ac.uk. Roger Palmer (Ph.D., Cranfield University), Dean of the Business School, Bournemouth University, UK, rpalmer@bournemouth. ac.uk. Hugh Wilson (Ph.D., Cranfield University), Professor of Strategic Marketing, Cranfield School of Management, Cranfield University, Cranfield, UK, hugh.wilson@cranfield.ac.uk.

to be highly influenced by the change of focus driven by S-D logic. Interestingly, Vargo and Lusch (2004) make no specific reference to sales activities in their article, although Sheth and Sharma (2008) suggest that five of the original nine fundamental premises are specifically relevant to personal selling (see boldface items in Table 1). Traditionally, the sales function has focused on persuading customers that they require the suppliers goods/services and has coordinated the servicing of that demand (Moncrief and Marshall 2005; Weitz and Bradford 1999). This definition best relates to transactional selling that necessitates a very specific set of selling skills, which have been well documented and form the basis of sales literature (e.g., Cespedes 1994). However, the more complex modern sales environment is demanding that salespeople improve their skills and develop an understanding of integrated solutions and relationship building particularly for high-value goods and services (e.g., Lian and Laing 2006; Sharma 2007; Sheth and Sharma 2008). The cultivation of customer relationships requires a more tailored approach to selling than transactional selling (e.g., Ingram, Schwepker, and Hutson 1992; Piercy, Cravens, and Lane 2007). Further, Homburg, Workman, and Jensen (2000) observed a trend for modern sales forces to be structured around providing coherent, multiple solutions for specific customer groups. These environmental drivers require the sales force to become more sensitive to the needs of their customers, have greater flexibility in their response, and develop an integrated solutions perspective (Tuli, Kohli, and Bharadwaj 2007). The main proposition of this paper is that the sales function, as the primary interface with the customer, is being
Journal of Marketing Theory and Practice, vol. 19, no. 4 (fall 2011), pp. 423440. 2011 M.E. Sharpe, Inc. All rights reserved. ISSN 1069-6679/2011 $9.50 + 0.00. DOI 10.2753/MTP1069-6679190405

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Journal of Marketing Theory and Practice Table 1 Summary of Foundational Premises

FP1 FP2 FP3 FP4 FP5 FP6 FP7 FP8 FP9 FP10

Service is the fundamental basis of exchange Indirect exchange masks the fundamental basis of exchange Goods are distribution mechanisms for service provision Operant resources are the fundamental source of competitive advantage All economies are service economies The customer is always a cocreator of value The enterprise cannot deliver value, but only offer value propositions A servicecentered view is inherently customer oriented and relational All social and economic actors are resource integrators Value is always uniquely and phenomenologically determined by the beneficiary

Source: Sheth and Sharma (2008) and Vargo and Lusch (2008). Note: Items in boldface were identified by Sheth and Sharma (2008) as relevant to sales.

transformed by the emergence of S-D logic. This perspective of exchanging service for service (Vargo and Lusch 2004) is central to the discussion of S-D logic. Service in this context is considered to be the intangible elements that are exchanged between the buyer and seller with the goods/service benefits being purchased (Lusch and Vargo 2006). The suggestion is that organizations adopting S-D logic perspective will drive sales personnel to develop new capabilities. Sheth and Sharma (2008) have identified that S-D logic has general implications for sales operations on a strategic level, but to our knowledge there has not been any research into the impact of S-D logic on specific sales activities at an operational and managerial level. Further, Sheth and Sharma (2008) called for more research into how the consultative selling process is replacing the traditional seven steps of selling. They suggested that problem identification, presentation of solution, and continued customer support (Sheth and Sharma 2008, p. 266) may become the key activities of sales personnel. The purposes of the current paper are to investigate how S-D logic thinking is moving sales toward a service focus where goods are seen as secondary to the provision of services and to explore how sales activities have been influenced through an organization adopting S-D logic. In order to identify a framework for our investigation, we present a review of the literature on the role of the sales function, integrated solutions, S-D logic, and value co-creation, and outline how these concepts are linked and ultimately affect day-to-day sales activities. Subsequently, we discuss a case study within which the exploratory empirical work was conducted. The analysis of the case data are presented and the consequences for the sales function discussed, which is followed by an outline of managerial implications and recommendations for the implementation of S-D logic in sales practice.

LITeRaTuRe RevIeW
The role of sales is changing and is driven by the development of a focus on service and other factors in the environment. The adoption of solution selling perspectives and the gradual move from goods-dominant logic (G-D logic) to S-D logic has fundamental implications for sales activities. These conceptsthe evolution of the sales role, integrated solutions, as well as G-D and S-D logicare explored in the following section.

The changing Role of sales

The traditional sales role in business-to-business (B2B) organizations comprises five basic types of activities carried out by the salesperson: contacting customers, selling the product or service, working with wholesalers, servicing the account, and managing information between the seller and buyer (Cespedes 1994). However, this tactical view of sales activities is complemented by longer-term strategic roles such as customer partner, buyerseller team coordinator, customer service provider, buyer behavior expert, information gatherer, market analyst, planner, sales forecaster, market cost analyzer, and technologist (Moncrief and Marshall 2005; Wilson 1993). In business-to-consumer (B2C) organization, the basic activities may be reduced to three (contacting, selling, and managing information), but again the strategic roles still include customer partner and service provider, information gatherer, market analyst, planner, and sales forecaster. Therefore, an effective salesperson in either context will understand the interactive nature of personal selling and how it relates to organizational objectives and behavior (Plank and Dempsey 1980). As customers become more demanding in both B2B and B2C settings, it is common to find sales organizations under

Fall 2011 425 intense pressure to meet elevated expectations (Ingram, Schwepker, and Hutson 1992). In this situation, a credible sales force is essential to build trust and long-lasting relationships with customers (Flynn and Murray 1993). Weitz and Bradford state that salespeople play a key role in the formation of long-term buyerseller relationships (1999, p. 241). This emphasizes the importance of establishing two-way communication when selling, as the salespeople are the experts who interpret the benefits of the offer for the customer. Stafford (1996) believes that personal selling brings a sense of comfort to the customer, particularly to purchasers of high-value items where the salesperson can use their in-depth product knowledge to match the perceived needs of the buyers as well as negotiate on price, delivery, and special requirements. Salespeople have established relationships with their customers and understand their needs, which enable the sales personnel to combine products and services to fulfill the customers demands and expectations (Bradley, Hunter, and Santiapillai 2000; Jackson, Tax, and Barnes 1994). Salespeople have a specific boundary-spanning role (Matsuo 2006) by having the potential to coordinate the marketing effort to the customers and personalize the marketing message. Moreover, there is an emerging trend for sales to be structured around providing coherent solutions for specific customer groups from the product/service offering from multiple divisions (Homburg, Workman, and Jensen 2000). Organizations are recognizing the critical role that salespeople play in their overall success (Dubinsky, Anderson, and Methta 2000), specifically in terms of forming long-term buyerseller relationships (Weitz and Bradford 1999). Establishing the credibility of the sales force in order to build trust and long-lasting relationships with their customers is now regarded by many companies as a critical strategic capability (Flynn and Murray 1993; Piercy, Cravens, and Lane 2007). It is proposed that customers are demanding superior relationships with the organization, and that the management of these sales relationships could transform the organization (Jolson 1997; Piercy and Lane 2003). This strategic customer management approach should be based on three key issues: Intelligenceconcerned with leveraging and enhancing customer knowledge to add value to customer relationships Interfacesrefocusing sales force efforts onto the management and exploitation of critical interfaces that impact on customer value . . . , and Integrationthe responsibility for welding all the company activities and processes that impact on customer value into a single, seamless and sustained point of value delivery to customers. (Piercy and Lane 2003, pp. 575576) Brent and Rogers argue that the ability to apply knowledge, skills, and personal attributes, to solve the customers problem . . . underpinned by the core capabilities and competencies of the firm (2007, p. 35) provide the basis for successful sales behaviors. The two-way communication between buyer and seller allows for identification of the buyers specific needs and problems so that the presentation and demonstration of the products/services features and benefits can be tailored to the customers requirements (Doyle 2002). To the customer, sales skills such as empathy, customer focus, and problem solving are even more important than the ability to listen (Kennedy 2006). In addition, Hodge and Schachter (2006) indicate that offering a creative or tailored solution on the spot is an important facet of the process for many customers. Sales personnel have developed a range of skills that enable them to create and maintain effective relationships with customers, including interpreting the benefits of the offer, providing expert information, and acting as an intermediary between the organization and the customer. Therefore, sales personnel already have demonstrated the ability to communicate and craft solutions for their customers, but previously this has been a one-way process that is delivered to an often rather passive customer.

Integrated solutions
The shift to integrated solutions may be described as a move toward a new marketing paradigm (Sharma 2007; Sheth and Sharma 2008). Over the past years, the call for integrated solutions has spread across industries, as buyers increasingly demand solution-based instead of attributebased products and services (Brady, Davies, and Gann 2005). More and more organizations are offering their customers integrated solutions, that is, a combination of their products with other services in order to meet a customers particular needs (Brady, Davies, and Gann 2005; Davies, Brady, and Hobday 2007). This shift implies that projects comprising integrated solutions exceed the traditional cycle of concept, definition, execution, and close, both backward to a preproject phase and forward beyond the actual delivery into the operational stage. Therefore, providers have to acquire new capabilities to incorporate prebid and postdeployment activities into their offering to create substantial value for their customers (Brady, Davies, and Gann 2005; Davies, Brady, and Hobday 2006).

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Journal of Marketing Theory and Practice G-D logic regards the production, distribution, and selling of tangible objects (matter or goods) that are embedded with value and utility during the manufacturing process as the focus of economic activity. All decisions of the organization are geared toward profit maximization, and to achieve the utmost production efficiency, the output is standardized and inventoried until demanded by a consumer. In this school of thought, the customer is a passive consumer who is targeted, segmented, and marketed to, that is, the customer constitutes an operand resource that has to be acted upon to produce an effect (Lusch, Vargo, and OBrien 2007; Vargo and Lusch 2004). S-D logic views customers as operant resources, that is, dynamic resources that have the capability to act upon others, and therefore rejects the promote to and market to philosophy of G-D logic. Instead, the concept embraces a market with orientation in which the customer is seen as a partner who creates value in collaboration with the organization and both parties enter into a dialogue (Jacob and Ulaga 2008; Lusch, Vargo, and OBrien 2007). In line with this perspective, customers actively assess the value of goods they buy on the basis of the solution and performance they provide in usemeaning that no matter whether they purchase goods or services, customers always acquire service experiences (Grnroos 2008). Service is defined as the basic denominator of all exchange and therefore encompasses experiences arising from direct interaction with service providers as well as interaction with manufactured goods that become mechanisms for service (Ballantyne and Aitken 2007; Ballantyne and Varey 2008; Lusch and Vargo 2006). Regarding customers as the ultimate arbiters of value that is co-created by the consumer and the organization in an interactive process also implies that the firm itself can only make value propositions (defined as a collection of benefits that is promised to the customer in return for payment) and coordinate the compilation of resources for the customer (Ballantyne and Aitken 2007; Vargo and Lusch 2004, 2006). This outlook not only dramatically alters the perspectives of functions such as marketing or sales but also highlights that S-D logic is inherently relational. To operate successfully, organizations have to develop strong relationships and networks with customers and supplierswith the customers to enter into a dialogue as well as to co-create service experiences and, thus ultimately, value through direct or indirect (i.e., via goods) interaction, and with the suppliers to share and integrate operant resources such as specialized skills and knowledge to develop superior value propositions for customers and

Tuli, Kohli, and Bharadwaj have demonstrated that integrated solution purchasers perceive solutions as a set of customersupplier relational processes comprising (1) customer requirements definition, (2) customization and integration of goods and/or services, (3) their deployment, and (4) postdeployment customer support, all of which are aimed at meeting customers business needs (2007, p. 5). Integrated solutions are continuous processes, that is, suppliers have to think ahead and consider the effects of each step on the subsequent stages while executing it (Tuli, Kohli, and Bharadwaj 2007). This redefined strategy has fundamental implications for organizations deciding to become integrated solution providers. They have to transform most aspects of their business such as their organizational structure and culture as well as operations and interdepartmental collaboration. For the customer, the benefit of integrated solutions lies in the unique combination of products and services that is tailored to meet their business needs. Providers of integrated solutions have to understand how value is created through the eyes of the customer (Brady, Davies, and Gann 2005, p. 362) to successfully become solutions oriented. Instead of regarding their product as the starting point, integrated solution firms have to focus on the result the customer needs and work backward to identify the combination of products and services that will meet the customers requirements (Brady, Davies, and Gann 2005; Davies, Brady, and Hobday 2007). In line with the development of integrated solutions, formerly transactional sales personnel have to evolve into customer experts. Working together with the customer, a salesperson not only acts as a representative of the providers offer but also as the customers consultant, relationship manager, and trusted partner seeking to provide solutions for the buyers (Guenzi 2002; Liu and Leach 2001; Sharma 2007; Sheth and Sharma 2008). This entails understanding the capabilities of the organization and the needs of their customers intimately. There has been a move away from order taking to a set of relational processes linking the organizations procedures to those of the customer, with the salesperson as the linchpinsensing the customers needs, passing this knowledge on to the organization, and managing the customers expectations.

goods-Dominant Logic and service-Dominant Logic

According to Vargo and Lusch (2004), marketing inherited a G-D logic from economics that centers on the physical exchange of units of manufactured output. In essence,

Fall 2011 427 build competitive advantage (Cova and Salle 2008; Lusch, Vargo, and Tanniru 2010; Vargo and Lusch 2004). The S-D logic perspective suggests that sales, which is frequently the primary customer-facing function within the organization, needs to understand that service is at the heart of all business activities and that goods are only distribution mechanisms. Salespeople have to conceptualize what value means to the customer, how it can be conveyed in the form of value propositions, and how it can be co-created in the interaction with customers. In service-dominated cultures, organizations will develop networks of suppliers that will enable them to offer stronger solutions to customers (Sheth and Sharma 2008). The salesperson is being asked to understand what the network is able to deliver and will need to engage in two-way communication with suppliers as well as customers to mediate between the actors and co-create value. Vargo and Lusch (2004) suggest that the process of dialogue is central to S-D logic, and this is already taking place between sales personnel, their external network, and customers. However, the importance of conveying value propositions and co-creation of value has not yet been discussed in terms of sales interaction. or product). Furthermore, customer value is relativistic in several ways: it is comparative, as customers appraise the value of an offering in comparison to another, as well as situational and personal, as the assessment of value is context dependent and varies between individuals. The term value implies a preference judgment, such as in terms of attitude or opinion, according to relevant criteria.

The co-creation of value

Although value co-creation is at the heart of S-D logic, the concept is neither entirely new nor has it been developed only in conjunction with S-D logic. Termed as customer participation in production or coproduction, a similar construct has been defined as the degree to which the customer is involved in producing and delivering the service (Dabholkar 1990, p. 484), and has been researched since the late 1970s (e.g., Czepiel 1990; Lovelock and Young 1979; Pralahad and Ramaswamy 2000). However, despite having been on the academic agenda for more than three decades, most work has so far concentrated on the sellers perspective of customer coproduction (Bendapudi and Leone 2003). The main difference between customer participation in production and the concept of co-creation as advocated by S-D logic is that the latter centers on the generation of value in an abstract sense and from the customers point of view instead of focusing on the benefits for the seller only. According to S-D logic, valuetangible or intangible, utilitarian or hedonic benefitsis always co-created through the joint actions of the organization and the customer, but only the customer can ultimately determine the value of the service in use (Cova and Salle 2008; Etgar 2006; Lusch, Vargo, and Tanniru 2010). The organization can only make value propositions, but since in S-D logic, value is not embedded in a good or service during its production process, it cannot deliver value on its owninstead, value has to be developed/experienced by the buyer (Vargo and Lusch 2008). These two similar constructs, coproduction and co-creation, are consolidated in S-D logic in that value co-creation is a higher-ranking construct comprising both the cocreation of value and coproduction as subcategories (Ballantyne and Varey 2008; Lusch, Vargo, and OBrien 2007). The literature on both integrated solutions and S-D logic support the notion of customers not being mere consumers anymore, but co-creators of value (Gummesson 1998; Sheth and Parvatiyar 1995; Sheth and Sharma 2008; Vargo and Lusch 2004). Adopting a customers perception of solutions as relational processes means that suppliers have to ensure that all departments involved in developing and delivering a

value Definition and Types of value

The importance of value in S-D logic requires that there is a clear definition of the term, as it appears frequently in the marketing and general business literature and has several conceptual connotations (e.g., added value or high-value customers). The construct discussed here is customer value, which is at the heart of S-D logic. However, there is no single commonly acknowledged definition of the concept. Instead, some scholars researching customer value and value co-creation avoid offering an interpretation of the value construct altogether (e.g., Payne, Storbacka, and Frow 2008), whereas in other publications, a wide variety of explanations can be found that differ significantly in meaning (e.g., Butz and Goodstein 1996; Zeithaml 1988). However, two similarities are generally referred to throughout most definitions: first, customer value is subjectively determined by the customer rather than by the seller, and second, value is experienced through or intrinsic to the use of a product or service (Woodruff 1997). Both notions are central to S-D logic. Holbrook characterizes customer value as an interactive relativistic preference experience (2006, p. 212). Value has an interactive component as it is contingent on a relationship between a customer and an offering (service

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Journal of Marketing Theory and Practice have the capacity to clarify the internal view of customers needs, wants, and requirements in the product and service offer, thereby reducing internal misunderstandings, and can generate critical knowledge to underpin innovation and product solutions, thus reducing risk (Pelham 2006). Piercy and Lane (2005) suggest that superior performance is based on the ability of organizations to provide a totally integrated offer that focuses on the factors that matter most to their customers needs. In other words, the interaction between the salesperson and the customer should uncover the value desired and value-in-use by the customer as well as the potential for co-creation of value.

solution are intertwined and work together closely; mechanisms to coordinate the individual functions have to be established (Brady, Davies, and Gann 2005; Davies, Brady, and Hobday 2007; Tuli, Kohli, and Bharadwaj 2007). There are links between S-D logic and integrated solutions in that customer orientation, conveying value, and delivering solutions are the core of sales activities. However, S-D logic goes beyond offering integrated solutions as it implies that value is co-created with the customer rather than delivering service/product bundles designed by the organization. This changes the role of salespeople in that they have to focus on service provision and will influence the conceptual development discussed later in this work.

ReseaRcH aPPRoacH Implications of service-Dominant Logic for sales

Throughout the literature review we identified that there are a number of ways in which S-D logic affects day-to-day sales activities. Piercy and Lane (2005) indicate that the main challenge to managers is to leverage the salespersons knowledge of the customers needs to create competitive advantage, as these activities are essential in delivering outcomes. However, while traditional sales and marketing theory has focused on the storage and dissemination of market intelligence for the sales force (e.g., Le MeunierFitzHugh and Piercy 2006), the move of the customer to center stage as the co-creator of value means that market intelligence is becoming knowledge management that is located in the individual salesperson as opposed to the organization (Vargo and Lusch 2004). Salespeople have to use their knowledge to make decisions in unpredictable situations (Foote et al. 2002). The knowledge held by the salesperson is dependent on his or her experience, level of expertise, and understanding of the customer and his or her values, and it is totally individual to that salesperson (Ballantyne and Varey 2008). Knowledge is contextual and embedded in the organizations systems and therefore a specific asset (Glazer 1991). Salespeople can offer more attractive value propositions based on their unique understanding of the customer and the organization. This enables them to provide solutions that cut across the organizations functional areas (Homburg, Workman, and Jensen 2000). Internally, marketing has knowledge of planned product introductions and other information necessary to customize the companys product service package, but sales and service personnel have the accrued local knowledge necessary to know what specific customers value in each area of supply-chain activity (Cespedes 1994; Millman and Wilson 1999). Salespeople This research considers the implications of the adoption of S-D logic and integrated solutions for sales personnel through a single case study design. To our knowledge, the role of operational sales in an organization adopting S-D logic has not yet been researched and therefore an exploratory case study approach was selected to consider the constructs. Case studies can be described as a research strategy or design that is used to study one or more selected social phenomena and to understand or explain the phenomena by placing them in their wider context (Kitay and Callus 1998, p. 103). The use of a single case is justified when the case is critical to the testing of theory, or if it provides access to data that would otherwise not be obtainable (Yin 2003). The subject organization was selected because it offered a rare opportunity to study an organization undergoing substantial change with respect to its marketing and customer-facing practices. It also reflected aspects of both G-D and S-D logic (Lusch and Vargo 2006). The subject company is a UK-headquartered construction firm active in the United Kingdom and the United States, specifically its house-building subsidiary. The case was assessed as appropriate on the basis that the organization exhibited aspects of multiple and dynamic marketing practices and had been attempting a transition from G-D to S-D logic. The initial director-level dialogue established that the marketing and sales director exhibited attitudes consistent with S-D logic. These went beyond integrated goods-service solutions in his emphasis on the unique and phenomenological nature of value required by customers (FP10); the need to uncover the customers intended usage processes, and include these as design features as important as those goods and services provided directly by the firm (FP6); and the need for the firm to include complementary resource providers in the design

Fall 2011 429 Table 2 Concepts and Their Transition

GoodsDominant Logic Concepts Goods Products Feature/Attribute ValueAdded Profit Maximization Price Equilibrium systems Supply chain Promotion To market Product orientation Transitional Concepts Services Offerings Benefit Coproduction Financial engineering Value delivery Dynamic systems Valuechain Integrated marketing communications Market to Market orientation ServiceDominant Logic Concepts Service Experiences Solution Cocreation of value Financial feedback/learning Value proposition Complex adaptive systems Valuecreation network/ constellation Dialogue Market with Service orientation Implication for Sales Activities Leveraging market, customer and internal knowledge Conveying value propositions Cocreation of solutions Cocreation of solutions Leveraging marketing, customer and internal knowledge Conveying value propositions Intermediary Intermediary Conversation, dialogue and learning Building trust and longlasting relationships Building trust and longlasting relationships

Source: Adapted from Lusch and Vargo (2006).

process (FP9). Finally, the agreement and cooperation of senior management was forthcoming. The main aim of the interviews was to explore how far S-D logic has been adopted by the organization and how this has affected its sales function. The research focused on the sales and marketing functions, which in this organization corresponds broadly to the department under the group sales and marketing director. The house-building industry in the United Kingdom still adheres to traditional bricksand-mortar-based construction rather than factory-made units that are assembled on site. Therefore, a number of different traditional skills such as bricklayer, plasterer, and roofer are still required on the building site. As a result, the construction industry in the United Kingdom may be considered to be conservative. Data were gathered by means of nine semistructured, face-to-face interviews (a range from the group sales and marketing director to the regional salesperson) and a review of company documents such as presentations, sales literature, press advertisements, and the companys Web site. Two members of the research team also made several visits to various construction sites over a period of several months. All the interviews lasted between 30 and 60 minutes and were tape-recorded and transcribed for analysis (see the Appendix for the interview guide). The case was analyzed using NVivo. The key constructs applied to analyze the data are in Table 2.

The conceptual framework (see Figure 1) considers the impact of S-D logic and integrated solutions on the organization. The elements of S-D logic relevant to sales as identified by Sheth and Sharma (2008) were augmented by three additional fundamental premises (FPs) outlined by Vargo and Lusch (2008); FP7: The enterprise cannot deliver value, but only offer value propositions; FP9: all social and economic actors are resource integrators; and FP10: value is always uniquely and phenomenologically determined by the beneficiary. FP7 should be added because communication of value is one of the critical activities in which salespeople engage. Previously, salespeople would concentrate on features and benefits of the products/services offered, but with the development of S-D logic they need to be aware that they are focusing on value as perceived by the customer. FP9 and FP10 were not available for consideration by Sheth and Sharma (2008), but we believe that sales personnel should be able to negotiate with actors inside and outside the organization and therefore FP9 would be significant. Also, successful sales personnel are uniquely positioned to determine how the beneficiary interprets value and has to be able to feed this back to the organization. Therefore, FP10 also affects sales activities. The activities required by integrated solutions were drawn from Tuli, Kohli, and Bharadwaj (2007). These are behaviors that the organization needs to take on board to

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Figure 1 conceptual Framework

Source: Adapted from Tuli, Kohli, and Bharadwaj (2007) and Vargo and Lusch (2008). Note: The FPs in boldface are those that were not identified as relating to sales in previous studies.

ensure that it is both offering solutions to the customers and adding value through its transactions. We then consider the activities that salespeople need to undertake to ensure that they are contributing to the value offered through this organizational change by adapting their activities to fit with the new organizational paradigm. The key sales activities required for the conceptual framework were identified from the existing literature on sales (e.g., Brent and Rogers 2007; Hodge and Schachter 2006; Stafford 1996) and through the qualitative data analysis. From these sources we identified six activities that underpin the sales role as influenced by S-D logic and integrated solutions. These key activities are: conversation, dialogue, and learning; leveraging customer, market, and internal knowledge; conveying value propositions; co-creation of solutions; intermediary between sup-

pliers, organization, and customers; and building trust and long-lasting relationships (see Figure 1).

case sTuDyneW HoMe DeveLoPeR

The subject company specializes in building new development houses, ranging from homes for first-time buyers to executive homes. The company has a stated aim to embrace S-D logic and put the customer at the center of its focus. To this end, the company has employed a new group sales and marketing director to realize this strategic focus and drive new operational activities. It was clear from the interviews that the group sales and marketing directors approach was visionary and forward-thinking. It was observed that their new promotions emphasized value-in-use attributes

Fall 2011 431 such as warmth and community rather than embeddedvalue attributes such as house features, and that sales staff were encouraged to hold conversations that uncovered and structured the customers intended usage processes. The group sales and marketing director saw himself as the prime driver of innovation and change in the way that the company markets and sells its products and had identified the need for the firm to include complementary resource providers in the design process: One of the reasons I got the job was that I could paint a vision of what this could be like. (Group Sales and Marketing Director) The organization rolled out the new philosophy through a series of staff conferences, discussion groups, and workshops. The new group sales and marketing director gave a series of presentations where his main message was To share our customers passion and to work with them to create and deliver with pride the home they want. Put simply, Inspired by You! The aim of the presentations was to move all staff from their current perspective on sales and marketing to their new paradigm so that they could deliver the customer dream. Each functional area had separate workshops to discuss the practical implications of the new philosophy. The group sales and marketing director had been successful in sharing this vision with his colleagues, and this was supported by sales and marketing personnel who were interviewed for this research. The message from the presentation to the sales personnel was Look through eyes of customer; Improve communication within regional businesses; Plan better; Deliver customer journey in line with research find ings so that there are no surprises and we can build rapport! Customer-facing sales personnel were enthusiastic about the new marketing initiatives, which resulted in more and better-quality customer contacts. Were all of the opinion that that should be the way we should be moving forward, because its what the customer wants. (Marketing Executive) [The group sales and marketing director] and his team are using a different approach to other house builders from a communications point of view. (Regional Sales and Marketing Director) At the same time, a consistent theme that emerged from the analysis was the discomfort and tension that arose from the contrast between G-D and S-D logic in practice, and which surfaced in differences in attitudes between the sales and marketing team and the operations director and his contractors, particularly in terms of the performance measures that applied. Sales and marketing people were aware of this tension, but were enthusiastic about embracing the new consumer focus. The marketing director explained that it was about offering consumers a life style and said: Were looking at what were calling internally flexible living. This would involve giving choices on each floor as to where the walls go. . . . The Design Centre, if you like, gives you the chance to personalize your home in terms of carpets, curtains, kitchen facility, bathroom door handles, light switches, and all that good stuff. The selling process consists of properties being sold on site to the customers by specialist sales personnel. Buying a house is a complex, expensive, individual, and a highly emotionally engaging process, which requires the salesperson to be closely involved. In order to meet this need, the company has developed the concept of the customer journey from the customers initial contact with the organization through occupation of the property, to after-sales service. This journey was described by the group sales and marketing director in his presentation as Stranger, Acquain tance, Friend, Know, Like, Love. In this way, the organization can provide a framework to the dialogue that takes place between the sales personnel and the customer, allowing them to interact, convey value, and engage in co-creation with the customer. The marketing manager explained: We came up with a logical plan on how we communicate with them [the customers], which is known as the customer journey. . . . Further down the journey we can communicate more intimately . . . so it moves on right up to purchase and beyond into sustainable, profitable relationships. The journey is undertaken by the customer and the salesperson together so that there is open negotiation and decisions are based on previous discussions. That way, the property is co-created between the two parties and concepts of value are discussed and refined during the process. This effort is supported by appropriate marketing collateral and knowledge of the processes/time frames available. The aim is to enhance and accelerate the customer journey toward purchase of the configuration that provides the greatest value to the customer. There is recognition of the need to manage expectations not just in terms of communications with potential purchasers but also in the role of word of mouth and local opinion within the wider community. There was a plan to turn the sales suite into a community center for the development at the end of its life so that the relationship between the buyer and the organization and the

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Journal of Marketing Theory and Practice out. Numerous different trades and crafts contribute to the construction of a house, often on a subcontract basis. While this might be cost-efficient, there are often penalties to pay in terms of quality if work is completed primarily against the twin criteria of price and meeting deadlines. There is evidence from the case that the sales personnel, through their organizational structures, are not able to ensure that the timing of the completion agreed with the customer is always met or that all their requests are entirely fulfilled: Were failing to deliver the dream at the moment, which upsets me greatly. We dont always deliver the product correctly and we dont always deliver on time. (Regional Sales and Marketing Director) In order to manage the capabilities of the organizations external network, customer-facing personnel are provided with training by the company to assist in managing expectations and the adoption of this new role implicated by the realization of S-D logic. A picture emerges of an organization that has already embraced integrated solutions, but some members of the senior management team recognize the potential and opportunity that S-D logic offers for the companys future. Currently, it is apparent that the organization is in a state of transition. The marketing and sales teams demonstrate their understanding of the solution selling concept, which is implemented in various ways, including knowledge management through the customer databases, promotional activities, and the use of the Design Centre to provide tailored solutions. Success of the new sales situation is being measured by the company through the employment of mystery shoppers (to review the performance of the sales teams, systems, and environment), standard sales measures, the conversion rate compared to previous periods, and through the take-up of additional services over time. The development of the customer journey (service provision), co-creation of solutions, as well as the management of expectations and networks driven by S-D logic as introduced by the group sales and marketing director have provided a number of new challenges for sales personnel.

customers overall value experience can be extended into the postpurchase phase. One insight given by the research was that home buyers make substantial expenditures posthouse purchase on furnishings and other items, typically extending over a period of nine months. In order to meet this need, the company has developed the Design Centre: The use of the Design Centre provided us with a unique opportunity to talk to the customers, listen and respond to their needs and concerns. (Regional Salesperson) This gives potential purchasers the opportunity to participate in the design of their intended home and to select furnishings and fittings appropriate to their needs. According to the group sales and marketing director, the next stage in the process would be to offer a range of tertiary services (e.g., boiler maintenance, window cleaning, and even the possibility of building extensions) to extend the relationship into the future. The Design Centre provides a controllable environment for the interface between the customer and sales personnel, thereby aiding the provision of an individually tailored solution instead of a package from a set menu. The Design Centre uses a combination of traditional samples and an information technology (IT) package that allows the customer to model their choices and view them in 3D. In this way, the company records how it can configure its resources to meet customers needs and gives a framework to the interaction and value-creating process that takes place between the customer and the sales personnel. The Design Centre allows the sales personnel to use their specialized knowledge to facilitate the exchange and adapt the offer, and serves as a vehicle for adding further services to the customer. These people here are being sold some extra design services. We might sell them a landscaped garden later on. We call them the eleventh-hour things; they might want them three months later. (Regional Salesperson) All the salespeople are fully trained in the available options, their costs, features, and delivery times, as well as being provided with testimonials from previous customers regarding their experiences to help overcome any skepticism and to reduce cognitive dissonance in the purchasing process. Although the salesperson is focused on trying to convey customer value, the need to meet sales targets means that they may not be able to maximize the customers perceived value: in particular, there is pressure to hand over a new house at the earliest possible date, irrespective of the impact on customer satisfaction while snags are sorted

DIscussIon
The literature review and the analysis of the case study identified sales activities that are influenced by integrated solutions and S-D logic (see Table 2). This takes our study beyond the work on S-D logic and integrated sales by Sheth and Sharma (2008), who outlined a number of possible macroimplications for sales such as an increasingly customer-focused sales force selling solutions, global ac-

Fall 2011 433 count management, internal marketing, sales selection, and rewards. This study highlights how S-D logic is affecting sales operations on a microlevel and the skills needed at the customer interface. It also identifies three other FPs in addition to those emphasized in Sheth and Sharma (2008) that drive changes in sales processes. The UK building industry has traditionally been one where properties are built to a preordained specification and then sold to the customers (G-D logic). As the sales manager said, They sold nicer boxes than the competition, but they were still boxes. In an overcrowded market, the organization decided to change its approach and employed the group sales and marketing director to achieve this. Driven by his vision and through adopting S-D logic, this organization has found competitive advantage by becoming more customer oriented and offering mechanisms for co-creation of value. These changes resulted in six specific sales activities being observed in the target organization that demonstrate how sales personnel are evolving from G-D logic to S-D logic. value-in-use arises not just from the firms processes but also from the customers interaction and usage processes (Payne, Storbacka, and Frow 2008). The Design Centre provides the venue for dialogic interaction and assists the sales personnel in conveying a vision of what can be achieved. This process puts the customers at ease and provides a service that is valued by them (according to the sales personnel). This activity also relates to FP3, as goods (in this case, new homes) are a distribution mechanism for service provision.

Leveraging Market, customer, and Internal Knowledge

The traditional problem/solution approach is relevant only if there is a mutual understanding of the nature of the problem or need. Leveraging customer and marketing knowledge has always been central to sales activities. However, the development of S-D logic requires a change of emphasis from knowledge of product-based features, benefits, and solutions, to the management of sales personnel knowledge to create competitive advantage with the customer (FP4). The Design Centre provides a suitable environment where the sales personnel can offer a range of choices and services that assists in both revealing customer preferences and managing their expectations. The provision of examples and samples, together with more fundamental options such as house layout and design, helps the sales personnel and customers to explore preferences and identify benefits based on the sales personnels knowledge of markets, the customer, and the capacity of the organization. The customer journey aids to define the distinction between the responsibilities of the marketing and sales teams. The case data demonstrates that the marketing team is effective in communicating their aims and ambitions to the sales team who responds positively to the initiatives and provides feedback from the market and customers that help to alter the perceptions of the market and build new initiatives. The information from this interaction with the customer is then fed back through the marketing director to assist with formulating new offers.

conversation, Dialogue, and Learning

The product/service offering or solution is traditionally the subject of demand stimulation. However, where customers are unclear of their needs (Peppers and Rogers 1997) and even unwilling to invest time to reveal them (Rust and Thompson 2006), the salesperson is required to have the ability to quickly and insightfully elicit the customers priorities and create learning (Kalaignanam and Varadarajan 2006; Piercy, Cravens, and Lane 2007). The adoption of integrated solutions has emphasized the importance of problem identification and exploration with customers, and this has resulted in sales personnel having a more interactive relationship with their customers. The case study highlighted that sales personnel have refined this skill through training and experience, and are now experts in creating a dialogue with their customers to elicit what they consider to be of value. They are then able to use this skill to leverage their industry knowledge to derive information on the nature of the consumers needs. This is exemplified by the case data in that sales personnel are encouraged to investigate the use to which prospective customers wish to put their houses and to co-create both design and service features that will enable the customers objectives to be met. This process builds on FP6 in that the customer is always a cocreator of value (Vargo and Lusch 2008), as

conveying value Propositions

Satisfaction may have been previously regarded as a desirable outcome, but increasingly customers see it as a minimum requirement and have elevated expectations (Ingram, Schwepker, and Hutson 1992). Sales personnel need new skills (Piercy and Lane 2005) in order to manage expectations to the point of service delivery (Shepherd 1999),

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Journal of Marketing Theory and Practice supported by appropriate resources, as illustrated by the Design Centre. The concept of co-creation of solutions is probably one of the areas where S-D logic has most strongly affected sales activities. Salespeople have to be aware that the actual value is determined by the customer (FP10). Within the case study, the sales personnel are heavily involved in the solution-provision process through customization of the offer and managing the integration of the organizations activities. In order to monitor the sales process, the organization has introduced the concept of the customer journey in which the salesperson may travel along with the customer. This concept provides a framework and set of criteria by which marketing decisions can be made, as an integrative logic applies as each marketing tactic responds to an element of the customer journey against which it can be validated and in some cases the effectiveness measured. In addition, the customer journey framework provides the means by which the needs of customers can be understood by the sales team and conveyed to marketing and the rest of the organization. Sales personnel can use their unique relationship-building skills to demonstrate empathy and responsiveness to the customers needs throughout their journey, from the initial contact, through the sales process, to co-creation of solutions and the extended relationship, including postpurchase servicing. The competitive advantage of this process lies in the provision of service that is valuable to the customer. Therefore, service is the fundamental basis of exchange (FP1) and is provided through the salespeople, their skills and attitudes to customers. These skills are attested through the sales personnels understanding of value.

hence, gaining the sale is now part of the sales process rather than its conclusion. Vargo and Lusch (2004) identify that the enterprise cannot deliver value, but only offer value propositions (FP7), as the actual value of a good/service is experienced phenomenologically and determined by the customer when the offer is put into use (FP10). Customers perception of value may, however, be influenced by the firms activities and relies on sales personnel acting as the communicator of the value proposition (Kalaignanam and Varadarajan 2006). We observe, therefore, that the solution to the unique value-in-use sought by the customer must include not just the firms goods and services but, equally importantly, the design of the customers usage processes themselves. In the present case, customer value is communicated not only through the Design Centre in terms of the level of quality of the environment and the range of additional services available to the customer but also through the knowledge and understanding of sales personnel in interpreting value with the customer. The sales personnel have had some training to recognize the value that customers place on the services offered and how this value can be communicated. These services are provided in a way that is appreciated by the customers through the Design Centre and its interactive IT modeling system, which forms part of the organizations competitive advantage (FP4). The implication for sales is that they need to be able to understand the value of the offer as it is perceived by the customer and then be able to adjust it in reaction to customers feedback.

co-creation of solutions
The process of co-creation is dependent on meaningful and mutual engagement (Prahalad and Ramaswamy 2004). Brown and Bitner (2006) discuss the role of customer involvement and the opportunities for self-service technology. This has two main implications. First, a judgment has to be made concerning the limits to choice imposed as customers are potentially overwhelmed by excessive choice (Schwartz 2004) or are unwilling to engage in extensive discussion (Woodruff and Flint 2006). Sales personnel need to be capable of appropriately revealing preferences in this respect. However, technology enablement may offer a number of advantages by being more engaging for customers and allowing the outsourcing of option selection and presenting such options in a persuasive manner. In the case study, this was illustrated through the adoption of the IT modeling system. Second, the location should be managed so that the quality of interaction and engagement is optimal and

Intermediary Between suppliers, organization, and customers

Sales has long been the interface between the customer and the organization, moderating company performance against customer expectations, balancing demands against resources and capabilities. With S-D logic, this will increasingly involve coordination across the organization and through the supply chain (Gummesson 2000; Matsuo 2006; Spekman, Spear, and Kamauff 2002). This activity is developed from FP9 and goes beyond integrated solutions. It is probably the area that requires the most development of new skills in the sales team. Although sales personnel are at the interface with customers, to successfully co-create solutions they may have to cut across the organizations functional areas (Brady, Davies, and Gann 2005; Davies, Brady, and Hobday 2007; Homburg, Workman,

Fall 2011 435 and Jensen 2000) and, in some cases, liaise with the network of outsourced functions to obtain the optimum solution through integration of multiple resources. If all parts of the company are customer oriented, it follows that there is a duty for sales personnel to understand the advantages and limitations provided by the network and take some responsibility for the configuration of the solution. There is considerable support for the concept of salespeople working across internal boundaries. Piercy and Lane (2005) highlight the need for a seamless internal system to provide superior value to the customer. However, S-D logic and integrated solutions demand that internal as well as external networks are required to operate in concert to provide the best solution for the customer. This moves sales personnel to a strategic position, facilitating communication between the internal and external networks and focusing on providing the service level demanded by the customer. In our case study, the difficulties of meeting customers needs are highlighted as the organization struggles to meet the delivery times agreed with individual customers. Sales personnel are taking a more proactive role in trying to coordinate the different activities to ensure that the customers expectations are met within a specific time frame. It is noted that the necessary minimum levels of quality and service increase with the scope of the network involved and, in this case, sales personnel are engaging with a larger network than previously when they simply took the order and moved on to the next customer. Further, each actor in the network is measured against different criteria. In particular, the requirement to deliver against minimal cost or short-term profit criteria and the absence of other, suitable and recognized S-D logic criteria make it difficult to sustain the case for innovation and change. This aspect, although outside the scope of sales, has implications for their interaction with the customer and delivery of solutions. To be successful, sales personnel must be able to rely, absolutely, on service delivery and on the consistency of the network. of the customer relationship is determined by how well it is managed, and poor relationships may tarnish the companys image. It may be argued that relationship marketing is a necessary, but not sufficient, condition for S-D logic in marketing (Gummesson 2006). Within the case presented, the marketing personnel are able to extend the sales relationship with the customer through their additional service offers and being customer oriented rather than product oriented (FP8). The Design Centre and customer journey further provide a suitable environment that helped establish the credibility of the sales personnel in order to build trust and long-lasting relationships with their customer. In the case study, the organization was faced with single individual sales rather than an ongoing relationship with customers. To mitigate this, the company developed the customer journey and future profit pools through offering further services, such as landscaping, new extensions, or building community facilities, after the house sale. Further, there is evidence in the case to indicate that satisfied customers frequently return to purchase larger properties as their family expands, or recommend the company to their relatives and friends. This extension of the customer relationship from a single purchase to a long-lasting bond relies on the organization being able to meet all their needs and deliver the solutions packages agreed with sales personnel on time. Sales personnel can then use their skills of relationship-building and customer-sensing to engage with customers in a long-term relationship. How the customer relationship is handled by the organizations representatives is critical to how they are perceived by the customers.

concLusIon anD ManageRIaL IMPLIcaTIons

The concepts of S-D logic and integrated solutions share an innovative all-encompassing nature and the requirement to be embraced by the organization as a whole rather than of individual departments alone. Both paradigms have the potential to fundamentally change an organizations overall identity, strategic outlook, and operations. However, there are some factors that were observed from the case that may be antecedent to S-D logic adoption. First, product specificity can moderate the relationship between S-D logic adoption and outcomes such as customer experience, quality, and profitability, depending on whether the organization is selling commodities or specifically designed goods/services. In the case study, the organization offers individual homes within parameters specified by the resources of the firm

Building Trust and Long-Lasting Relationships

Building trust and long-lasting relationships is an area that has been extensively explored in the existing sales literature, specifically the literature on relationship marketing. This concept is closely aligned with FP8: A service-centered view is inherently customer oriented and relational. However, the development of strong customer satisfaction and loyalty depends on the service that customers receive from organizations and their suppliers (Doyle 1995). The quality

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Journal of Marketing Theory and Practice The case study demonstrates that S-D logic has influenced the sales function by moving the customer center stage, which makes experienced salespeople essential assets to the organization. Sales staff require specific training on the importance of conveying value propositions and the co-creation of solutions that are essential for all customerfacing personnel, whether employed directly by the organization or not. This training can help to move salespeople from transactional selling to S-D logic, through developing listening skills, diagnostic capabilities, and problem solving, to using their knowledge in dialogue, developing value propositions, and engaging in the co-creation of solutions. However, the more extensive networking role was not fully developed by this organization and more needs to be done to assist the operations director to appreciate the value of the new paradigm and liaise more effectively with the sales team on the delivery of the dream. The delivery of customer satisfaction through the development of new sales processes based on S-D logic will be primarily achieved through the dual application of senior management support and cross-functional training. As a result of S-D logic, sales personnel have a more strategic role in managing knowledge and the customer, understanding the nature of the value that is being proposed, acting as a network intermediary, and co-creating value through service provision. This leads to the other area in the studythe clarification of the concept of value and the value network with reference to sales activities. Value is not only individually determined by the customer but also context dependent and relative to other experiences made by the purchaser. This has profound implications for salespeople, as they can no longer simply offer a product/ service bundle, but have to deliver a complete service package that makes the offer more valuable to the customer. This requires greater understanding of the customer and their processes so that the desired value can be offered in a way that becomes an enjoyable part of the experience. Therefore, it is proposed that in an organization adopting S-D logic, the sales process needs to elicit needs at both embedded-value and value-in-use levels. In this instance, the Design Centre provides a suitable environment and allows the salesperson to make the value propositions, explore needs with the assistance of the IT modeling packages, and move into co-creation. Organizations in other industries should consider their selling environments in terms of how they facilitate engagement with the customer. This could apply to reconfiguring showrooms, retail spaces, or in a B2B environment by using portable IT systems to engage with the customer. The

and its network as well as the customers needs, enabling the company to charge premium prices and offer enhanced service. Second, competitive intensity can influence the relationship between S-D logic adoption and results such as customer experience, offer quality, and firm profitability. Where competition is increasing, organizations have to make choices about their offer and quality and value propositions to target their market segments accordingly. As the UK home-building market is highly competitive, the studied organization decided to move toward S-D logic to attain competitive advantage by focusing all its activities on the customers phenomenological service experience, thus offering superior quality. Third, aligning sales practices with S-D logic requires changes in leadership behaviors, sales effectiveness metrics, and goods/service customization options. In the case study, this was demonstrated by the forward-thinking attitude of the group sales and marketing director, presentations, workshops, and the additional training for sales personnel intended to get all the staff to commit to this new vision. Sales effectiveness was measured by methods such as mystery shopping, which allows the evaluation of the service experience from the customers point of view. Furthermore, the organizations offer was not just customized according to the resources available within the company, but with the customers intended usage processes in mind and included external suppliers and networks. The purpose of this work was to investigate how S-D logic thinking is moving sales toward a service focus where goods are seen as secondary to the provision of services and to explore how sales activities have been influenced through an organization adopting S-D logic. The case study investigates a company that is moving from G-D to S-D logic in its provision of new housing in the United Kingdom. It is driven by the belief that S-D logic adoption is associated with enhanced customer experience, quality, and profitability. The organization was already engaged in the provision of integrated solutions, but the recent move toward S-D logic suggests that certain sales activities have to be developed or enhanced to meet the new paradigm. The key sales activities that have been affected are as follows: developing an understanding of value, co-creating solutions with customers, and acting as intermediaries between the network and customers. Sales personnel have become knowledge managers who work with the customer to achieve the creation of tailored solutions in an interactive environment. They have established a focus on service provision that is supported by the ability to create dialogue and learning to explore problems with customers.

Fall 2011 437 customer then moves on with the journey with the salesperson to co-create solutions. The emphasis is on a process to deliver value that is appreciated by the customer. It is proposed that in an organization adopting S-D logic, the sales process needs to identify not just goods and service attributes but also attributes of the customers usage processes and values. In other words, the sales personnel need to understand how the new home is likely to be used by the customer; for example, they may need extra facilities to accommodate frequent visitors, or they may value an office/study or more storage. The final part of the study was to explore the importance of the co-creation of solutions by sales personnel with the customer. The case study indicates that the development of the process (the customer journey, in this case) was a strong first step in creating the conditions for co-creation as required by S-D logic. Organizations need to develop a clear process that assists the sales personnel in accompanying the customer through their journey toward a long-lasting relationship. This will help sales staff to have confidence in making adjustments in response to the customers input. Salespeople may also need flexibility in what they can offer to the customer so that they can adjust to each individuals needs. This may be facilitated through the employment of interactive IT packages and communications. Co-creation requires a feedback mechanism in terms of product development and marketing, and sales personnel have to be trained to pass on and manage this customer information to ensure the continuous adjustment of the organizations offer. Therefore, in an organization adopting S-D logic, the coproduced solution resulting from the sales process needs to include specification of any resources provided by other suppliers, other customers, or other parties that require integration in order to achieve value-in-use. It is suggested that as the sales function usually is the primary customer interface, the implementation of S-D logic and integrated solutions cannot be successfully realized without considering and addressing the consequences for sales personnel in practice. This study provides initial insight into these implications and offers a framework to guide further study. However, both of these concepts raise a number of yet unanswered questions and therefore this framework (see Figure 1) may be used as a basis for further research. research is exploratory in nature, and the use of a single case study reduces its generalizability. However, it is believed that this case offers insights into an organization that is in the process of adopting S-D logic while utilizing integrated solutions as a way of developing substantial value propositions. Future research should explore further how the sales activities identified here could be developed to help sales personnel respond to the continuously changing needs of the customer and S-D logic. Second, although the qualitative research design is appropriate for the nascent state of theory surrounding S-D logic, in the future, quantitative work should refine and further elaborate the concept once it has been more widely adopted in practice and theory has matured. At this point, the real-life consequences of S-D logic should also be investigated to assess its practical value for organizations. Furthermore, this study only considers the impact of S-D logic on the sales function and leaves out all other organizational departments. However, S-D logic is not just a marketing or sales construct, but a school of thought that, once implemented, transforms the whole organization, and therefore future research should explore how the strategic roles and operational activities of other functions are influenced when an organization fully embraces S-D logic. In addition, the proposed antecedents to the adoption of S-D logic that have been observed in this case studyin particular, product specificity and competitive intensity require confirmation and their effects need further in-depth investigation. Similarly, although the case study demonstrated that aligning sales practices with S-D logic requires changes in leadership behaviors, sales effectiveness metrics, and customization options (and provided examples of how these elements were implemented), further exploration is needed to confirm this finding and investigate how these changes can be realized in other industries.

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LIMITaTIons anD FuTuRe ReseaRcH

This work has a number of limitations that should be offset by future research into the sales and S-D logic. First, this

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Journal of Marketing Theory and Practice

aPPenDIX Interview guide Marketing Practice Within the Firm

The purpose of this section is to explore the firms current marketing and sales practices. What does marketing mean in your firm? What is its purpose? Who in the organizational structure has marketing or sales roles? Whats involved in your job? What do other marketing people actually do? Why is marketing practiced the way it is in this company? (e.g., if it exhibits strong characteristics of an archetype, why? If another archetype is in evidence, why?) 5. How would you characterize marketing practice within this firm? a. Purpose of exchange b. Nature of communication c. Type of contact d. Duration of exchange e. Formality in exchange f. Managerial intent g. Managerial focus h. Managerial investment i. Managerial level 1. 2. 3. 4.

Transitions Between archetypes

The purpose of this section is to explore any transitions in marketing and sales practice that have occurred. 1. Has the current archetype combination changed recently? Is it changing at present? 2. Why is this transition happening? What are the drivers of change? a. Market maturity b. Constraints on volume growth c. Executive team changes 3. What factors are enabling or hindering the transition? a. Top team buy-in b. Operational buy-in c. Alignment with reward systems d. Development of metrics appropriate to archetype e. Long-term commitment, supply planning

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