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The Role of Sales and Marketing Integration in Imp
The Role of Sales and Marketing Integration in Imp
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Article in Journal of Database Marketing & Customer Strategy Management · March 2011
DOI: 10.1057/dbm.2011.5
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All content following this page was uploaded by Chris Sims on 11 February 2016.
David Lyus
is a Marketing Sales Manager at GEW (EC) Limited. He has recently completed an MA in Sales Management at Portsmouth
Business School.
Beth Rogers
is Principal Lecturer in Sales Management at Portsmouth Business School and author of ‘Rethinking Sales Management’. She is a
member of the Academic Senate of the Chartered Institute of Marketing and an Advisory Member on the Board of the Global Sales
Science Institute.
Christopher Simms
is a Senior Lecturer in Marketing at Portsmouth Business School. He is currently completing a PhD focusing on the management of
new product development in the food industry.
ABSTRACT The salesforce can be both a rich source of market intelligence and a
key vehicle for implementing marketing strategy. Historically, in many organisations,
the sales function operated in tactical isolation from marketing strategy. Increasingly,
companies are exploring the advantages of integrating sales with marketing, an
approach which has been positively linked with improvements in business performance.
This study explores a specific aspect of the connection between sales and marketing
integration and better performance; specifically whether the integration of the sales
and marketing functions in business-to-business (B2B) organisations facilitates the
development and implementation of successful new strategies in response to market
change. Based on a pilot survey, a model is proposed, placing sales and marketing
integration, characterised by both interaction and collaboration between the two
functions, as an antecedent for excellence in gathering market intelligence, and then
using it to react strategically to changing market conditions and customer demands.
Journal of Database Marketing & Customer Strategy Management (2011) 18, 39–49.
doi:10.1057/dbm.2011.5
Correspondence:
Christopher Simms INTRODUCTION market turbulence are more likely to build
Portsmouth Business
School, Richmond Building,
Organisations are under pressure to adapt competitive advantage over rivals who do
Portland Street, Portsmouth, to changing external circumstances so that not.1 Macro-environmental forces, including
PO1 3DE, UK
E-mail: chris.simms@
they can survive and thrive in the long new opportunities, threats from competitors
port.ac.uk term. Those responding effectively to and changing customer expectations, are all
© 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49
www.palgrave-journals.com/dbm/
Lyus et al
beyond the control of managers, who as a strategic responses, which the sales function
result need to adapt their organisations then needs to translate into action. The
quickly and smoothly to ensure continued impact of this action will in turn be
prosperity. While organisations are under observed by the salesforce, who close the
pressure to change, their salespeople are in feedback loop within the organisation by
turn under pressure to implement the reporting the impact of the new plan’s
necessary strategies in the marketplace to implementation. Over time, this cycle
ensure these changes happen. Whilst these drives organisational change (Figure 1).
might only be relatively small changes to The marketing function will not be
the marketing mix, they could also be more able to perform adequately unless it is
significant, such as entering a new market, sufficiently connected with what is
launching a new product or adopting a new happening in the marketplace. Homburg,
distribution channel. Such action might be Jensen and Krohmer 5 noted that marketing
required in response to external change, but departments sometimes have a low level of
may also be internally driven in order knowledge of the market and products, and
simply to improve effectiveness.1 Rackham that there is insufficient sharing of
and DeVincentis2 note that sales information between sales and marketing.
departments need to be adaptable and So, if sales and marketing do not integrate
change-ready so that they can respond to adequately, they (and therefore the
both organisational dynamics and market organisation as a whole) cannot observe and
dynamics. The sales function is a critical react to changes in the market. A high level
link between these two forces. of integration between marketing and sales
The salesforce is instrumental in both the could make the organisation very responsive
formation and implementation of strategic to market dynamics.
plans.3,4 Through their connection with The focus of this research lies where the
the market, they are most aware of new rubber appears to meet the road: at the
developments from competitors and interface between sales and marketing. This
changing customer needs. This information exploratory research investigates whether
can be accumulated and analysed by the increased sales and marketing integration
marketing function to develop appropriate results in organisations being better at
MARKET
INTELLIGENCE
MOVEMENT
i.e. CHANGE
40 © 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49
The role of sales and marketing integration
© 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49 41
Lyus et al
42 © 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49
The role of sales and marketing integration
© 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49 43
Lyus et al
44 © 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49
The role of sales and marketing integration
Figure 2: Scatter plots of Sales and Marketing Integration against Market Intelligence Gathering and Strategic
Reactivity.
© 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49 45
Lyus et al
Figure 3: Bar graphs of variance in Market Intelligence Gathering, Strategic Reactivity and Sales & Marketing
Integration according to size of organisation.
46 © 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49
The role of sales and marketing integration
Market
Intelligence
Interaction Gathering
Sales
Propensity
and Marketing
to Change
Integration
Collaboration Strategic
Reactivity
Figure 4: Diagram illustrating the relationship between the interaction and collaboration components of Sales
and Marketing Integration, and the Market Intelligence Gathering and Strategic Reactivity components of
organisational Propensity to Change.
necessary conditions for effective strategic people involved and they would typically
response to market dynamics, but neither work in closer physical proximity to each
alone are sufficient conditions. This concept other. Having fewer people involved in
is summarised graphically in Figure 4. the decision-making and implementation
An organisation’s propensity to change processes would also increase reactivity in
effectively in response to market dynamics terms of strategy implementation, as inertia
is affected by the combination of its ability is reduced. Nevertheless, since this research
to gather market intelligence and react to was exploratory, we can only conclude
this by formulating and implementing that the hypothesis that larger organisations
appropriate strategies. Optimal market have a lower propensity to change in
intelligence gathering is dependent on response to market dynamics than smaller
interaction between sales and marketing, ones deserves further investigation.
whilst optimal strategic reactivity requires Since propensity to change in response
both interaction and collaboration. These to market dynamics is an aspect of superior
two components form the construct of company performance, these exploratory
sales and marketing integration, hence the findings are consistent with Le Meunier-
finding that sales and marketing integration FitzHugh and Piercy24 and add some
contributes towards successful weight to Jones et al’s1 call for further
implementation of strategic changes in research in the role of sales in company’s
response to market dynamics. strategic responsiveness. We infer that better
It is interesting to note that smaller integration between sales and marketing
organisations exhibit a higher degree of will make the process of change
sales and marketing integration, market implementation easier.
intelligence gathering and strategic reactivity
than large ones (see Figure 4), supporting MANAGERIAL IMPLICATIONS
the view of Kotler et al17 that integration It is often said that the pace of change
between sales and marketing becomes an in markets is accelerating, and that it
issue as companies grow. It has long been is only the companies that keep close to
known that larger organisations have a their markets in order to anticipate and
higher degree of inertia than smaller ones respond to change who will survive in
when it comes to change implementation.33 the long-run. Many companies invest in
In smaller organisations interaction would market research as a key input their
be easier and simpler as there are fewer customer relationship management systems.
© 2011 Macmillan Publishers Ltd. 1741-2439 Database Marketing & Customer Strategy Management Vol. 18, 1, 39–49 47
Lyus et al
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The role of sales and marketing integration
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