AMBO UNIVERSITY WOLISO CAMPUS

COLLEGE OF BUSINESS & ECONOMICS

Article Review on
Developing Marketing Capabilities for Customer Value Creation through
Marketing–Sales Integration

Author: Paolo Guenzi, Gabriele Troilo

Publish Year: 2006

(Journal of Industrial Marketing Management 35 (2006) 974–988)

Submitted to:
Dr. Dinkisa K. (PhD, Assistant professor)

School of Postgraduate Studies

Department of Management
Program: Weekend
Course: Marketing Management

Prepared By

Daniel Takele.…..ID 009/15

June, 2023,
Woliso, Ethiopia
Description of the Study
Introduction

This article review on the title ‘Developing Marketing Capabilities for Customer
Value Creation through Marketing–Sales Integration’ done from the original work of
Paolo Guenzi and Gabriele Troilo,Publish in 2006.
Journal of Industrial Marketing Management 35 (2006) 974–988.

(Received 26 January 2006; received in revised form 26 May 2006; accepted 10 June
2006 Available online 28 July 2006).

The purpose of this study is to explore the contribution of Marketing–Sales

integration to the development of marketing capabilities, and, as a consequence, to the
creation of superior value for the customer.
The objectives are to better clarify and detail the integration construct; to investigate
how Marketing–Sales integration can impact different marketing capabilities; and, to
identify potential antecedents which may foster Marketing–Sales integration.

This study reports on an exploratory effort to use the means– end theory in explaining
Marketing–Sales integration. Findings show that Marketing–Sales integration is a
multi-faceted construct made up of different components that impact different
marketing capabilities and highlight its antecedents and consequences.

Literature and Conceptualization (Conceptual Framework)

One of the cornerstones of modern marketing thought is that market oriented
companies are better equipped to meet the generation of superior customer value and,
as a consequence, to attain sustainable competitive advantage.
The ability to generate superior customer value is dependent on the availability of
distinctive marketing capabilities (Day, 1994a; Hult & Ketchen, 2001; Slater &
Narver, 1995, 2000). Narver and Slater (1990) consider interfunctional coordination
as a component of the construct, whereas Kohli and Jaworski (1990) suggest that
interdepartmental dynamics are an antecedent of market orientation.

Prior research shows that knowledge and skills regarding market-related activities are
spread throughout the organization, the highest concentration, as one would expect, in

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the two departments traditionally responsible for managing market relationships:
Marketing and Sales (Homburg, Workman, & Jensen, 2000; Homburg, Workman, &
Krohmer, 1999; Krohmer, Homburg, & Workman, 2002; Rouziès et al, 2005;
Zoltners, 2004).
Even though the existing literature (Dewsnap & Jobber, 2000, 2002; Rouziès et al,
2005) has contributed to enhancing our knowledge on Marketing– Sales integration,
research in this area is still scarce.
The literature is adequate, but most of the articles the authors used are old and are not
able to relate current research on the problem. As the authors mentioned in section of
the literature review there are a few articles that cover the impact of Marketing-Sales
integration for customer value creation. The objectives of the research are not clearly
stated. Objectives should be clearly written in a bullet as General and Specific
objectives.

Methodology
Due to the lack of robust conceptual and empirical foundations for the topic, the
researchers adopted an exploratory approach with a qualitative research design. They
were interested in exploring the relationship between Marketing–Sales integration
with its antecedents and consequences, hence the method selected was the laddering
technique based on means–end theory. Thus, the conducted 12 in-depth interviews
with the target population marketing managers, sales managers and CEOs of
companies operating in different environments (i.e. both business to business and
business to consumer goods and services).

Results and Discussion

Results
The capacity to create superior customer value stems from the marketing capabilities
a company possesses;

A considerable body of research has indicated that market oriented companies

have distinctive marketing capabilities which lead to superior organizational
performance. Although it has been widely recognized that the development of
marketing capabilities requires the joint effort of marketing and Sales

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 departments, almost no attention has been devoted to investigating the
integration of these two functions.
This study reports on an exploratory effort to use the means– end theory in
explaining Marketing–Sales integration.
Findings show that Marketing–Sales integration is a multi-faceted construct
made up of different components that impact different marketing capabilities
and highlight its antecedents and consequences.

Regarding the meaning of Marketing–Sales integration, many different interpretations

emerged. Integration was described by executives in terms of coordination,
collaboration, communication, working relationships, level of conflict, distribution of
power.
Many respondents provided different definitions of the integration concept during the
interview, pointing out that integration can refer to different levels: integration of
goals, resources or activities carried out by the two departments in question.
As one marketing manager pointed out: we [the Sales department and us] may share
our goals.
Sharing plans and resources is a completely different story.

Discussion
In keeping with Dewsnap and Jobber (2000) and Rouziès et al (2005) our findings
highlight a more articulated nature of the integration construct.
Communication and collaboration emerge as two components of the construct,
whereas trust, motivation, commitment, mutual help, reduced inter-group conflict and
positive organizational climate play a role as well.
Our findings reinforce the fact that effective communication between Marketing and
Sales yields many positive outcomes including: stimulating confrontation, mutual
understanding, collaboration and sharing.
These, in turn, foster increased effectiveness and efficiency of market knowledge
development and decision making, while supporting an organizational climate based
on trust and cooperation, confirming prior research on marketing interfaces wit

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Conclusion and Recommendation
Conclusion
Our literature review reveals four limitations to existing studies.
Much of the research emphasizes the need for integration (Ruekert & Walker, 1987)
but there is no theoretical explanation nor may empirical evidence to support those
different marketing capabilities require various levels of integration.
Marketing organization studies emphasize the ‘shared’ responsibilities and activities
between Sales and Marketing departments in today's modern firms (Homburg et al,
1999; Krohmer et al, 2002).
Marketing strategy research posits that the capacity to offer superior customer value
and to achieve a competitive advantage requires a joint effort of Marketing and Sales
departments.
We maintain that the contribution of integration between Marketing and Sales to the
development of marketing capabilities remains mostly unexamined.

The implications of this study to practitioners:

Theoretical implications: how to better implement measure the integration construct
Managerial implications: systems supporting information flow and collaboration
between two functions positively affect their integration.

The results of our study suggest that Marketing–Sales integration contributes to the
development of several marketing capabilities: market-based organizational learning,
market sensing and customer linking.

Further study
The researchers contend that further research should investigate if a non-linear
relationship may hold true for other integrating mechanisms.

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Recommendation

Companies should recognize potential intra-organizational variations in these

responses, work to minimize (if not completely eliminate) these variations,
reinforce positive associations, and combat negative associations.
Members of the two departments should be able to challenge their ingrained
mental models through interdepartmental communication, collaboration, and
conflict in order to promote generative market learning.
The organization can develop adaptive market learning through the sharing of
strategies and plans, increasing the efficiency and consistency of marketing
decision-making.