Developing marketing capabilities for customer value creation through Marketing–Sales integration

Abstract

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 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.

Introduction

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. Several studies show that market orientation is positively related to organizational performance (Jaworski and Kohli, 1993, Narver and Slater, 1990, Ruekert, 1992, Slater and Narver, 1994). The ability to generate superior customer value is dependent on the availability of distinctive marketing capabilities (Day, 1994a, Hult and Ketchen, 2001, Slater and Narver, 1995, Slater and Narver, 2000).

Inter-functional relationships are at the basis of the market orientation construct. Narver and Slater (1990) consider inter-functional coordination as a component of the construct, whereas Kohli and Jaworski (1990) suggest that interdepartmental dynamics are an antecedent of market orientation. In short, market oriented companies are characterized by a high level of integration of market-related knowledge and skills.

Prior research shows that knowledge and skills regarding market-related activities are spread throughout the organization, the highest concentration, as one would expect, in the two departments traditionally responsible for managing market relationships: Marketing and Sales (Homburg et al., 2000, Homburg et al., 1999, Krohmer et al., 2002, Rouziès et al., 2005, Zoltners, 2004). Despite the fact that Marketing and Sales often share responsibility for many common activities, their rapport is not without problems (Anderson, 1996, Carpenter, 1992, Shocker et al., 1994, Strahle et al., 1996). As a result, opportunities for a company to create superior customer value risk being seriously challenged. Even though the existing literature (Dewsnap and Jobber, 2000, Dewsnap and Jobber, 2002, Rouziès et al., 2005) has contributed to enhancing our knowledge on Marketing–Sales integration, research in this area is still scarce.

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. In particular, our objectives are to better clarify and detail the integration construct; to investigate how Marketing–Sales integration can impact different marketing capabilities; and, finally, to identify potential antecedents which may foster Marketing–Sales integration.

The article, therefore, is structured as follows. Firstly, a literature review on marketing capabilities and Marketing–Sales integration highlights the limitations of prior research regarding the contribution of the two departments (and their integration) to the creation of superior customer value. Secondly, our methodological approach is described and findings of the exploratory research on Marketing–Sales integration are presented and discussed. Lastly, a discussion of theoretical and managerial implications and possibilities for future research on the topic conclude the paper.