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Christian Homburg, Ove Jensen, & Harley Krohmer

Configurations of Marketing and


Sales: A Taxonomy
Little is known about the interface between separate marketing units and sales units. This article develops a
multidimensional model of the marketing and sales interface. The model integrates a broad range of conceptual
domains, including information sharing, structural linkages, power, orientations, and knowledge of marketing and
sales. The authors empirically explore the conceptual model through a cross-industry study of 337 European
Union–based companies. They identify five empirical archetypes of the marketing and sales interface. The
taxonomy shows that the role and characteristics of marketing and sales vary a great deal. This finding challenges
existing stereotypes about marketing and sales. Finally, the article explores organizational outcomes of the five
configurations. The findings suggest that the most successful configurations are characterized by strong structural
linkages between marketing and sales and a high extent of market knowledge in marketing.

Keywords: marketing organization, sales organization, interface, taxonomy, configuration

he interface between marketing units and sales units However, caution is warranted when general statements

T is receiving increasing conceptual attention (Dews-


nap and Jobber 2000, 2002; Rouziès et al. 2005). In
the past, empirical studies have typically not distinguished
are made about M & S. The literature indicates that the
interface between M & S varies a great deal across compa-
nies and industries. Whereas the orientations and knowl-
between marketing and sales (hereinafter M & S) but have edge of M & S are far apart in some companies, they are
subsumed both under the term “marketing organization” aligned in others (Carpenter 1992; Lorge 1999). Whereas
(Dastmalchian and Boag 1990; Ruekert and Walker 1987a, sales is centered on products in some firms, it is centered on
b). This contrasts sharply with managerial reports that “as a customer groups in others (Homburg, Workman, and Jensen
rule,… they’re separate functions within an organization” 2000; Webster 1997). Whereas marketing has a driving role
(Kotler, Rackham, and Krishnaswamy 2006, p. 68). Work- in some consumer goods firms, it has a limited role in some
man, Homburg, and Gruner (1998, p. 37) state that “more high-tech firms (Cespedes 1993; Workman 1993). Research
than 30 years after the call to integrate sales and marketing by Homburg, Workman, and Krohmer (1999), Piercy
activities,… we find no firms that had adopted this recom- (1986), and Starr and Bloom (1994) confirms a large degree
mendation.… Additional research is needed to explore fur- of variation in the relative influence of M & S.
ther the relationship between [M & S].” To our knowledge, this variation of the M & S interface
According to anecdotal accounts, the separation across companies has never been systematically investi-
between M & S runs far deeper than reporting relationships gated. As our literature review shows, some authors have
and organizational charts: M & S are also separated by dif- conceptually discussed typical evolutionary stages of mar-
ferent orientations and knowledge (Deshpandé and Webster keting within the organization (Day 1999; Kotler, Rackham,
1989). It has been claimed that marketing is product and Krishnaswamy 2006; Webster 1997). However, these
focused and long-term focused, whereas sales is customer discussions have focused on selective issues, such as power,
focused and short-term focused (Cespedes 1995; Rouziès et and are not based on clearly defined conceptual dimensions.
al. 2005). It has been alleged that marketing lives in an There has never been a study that empirically classifies the
“ivory tower,” whereas sales has been lauded for its market existing varieties of M & S configurations using a broad
knowledge (Carpenter 1992; Donath 2004). Overall, the conceptual model. There is a need for large-scale studies to
M & S relationship is reported to be far from harmonious understand how separate M & S units are configured.
(Montgomery and Webster 1997). Against this background, our article develops an integrative
conceptualization of the M & S interface. On the basis of
this conceptualization, we conduct an empirical study of
Christian Homburg is Professor of Marketing, Chair of the Marketing 337 business units in seven industry sectors. Our specific
Department, and Director of the Institute for Market-Oriented Manage- research goals are as follows:
ment, University of Mannheim (e-mail: homburg@bwl.uni-mannheim.de).
Ove Jensen is Professor of Marketing and Chair of Business-to-Business •To identify constructs that constitute M & S configurations
Marketing, WHU–Otto Beisheim School of Management (e-mail: from the literature,
ove.jensen@whu.edu). Harley Krohmer is Professor of Marketing, Chair- •To empirically identify varieties of M & S configurations and
man of the Marketing Department, and Director of the Institute of Market- develop a taxonomy, and
ing and Management, University of Berne (e-mail: prof.krohmer@ •To explore the outcomes of the different M & S
imu.unibe.ch). configurations.

© 2008, American Marketing Association Journal of Marketing


ISSN: 0022-2429 (print), 1547-7185 (electronic) 133 Vol. 72 (March 2008), 133–154
Our taxonomical research approach is consistent with of the activities classically labeled as “marketing activities”
the configurative approach to organizational analysis that are dominated by sales rather than by marketing, most
studies complex phenomena through overall patterns of notably distribution strategy and pricing. Smith, Gopala-
multiple variables rather than through selected variables and krishna, and Chatterjee (2006) do not study organizational
their bivariate relationships (Ketchen et al. 1997; Meyer, aspects of M & S, but they model sales response to commu-
Tsui, and Hinings 1993). Recent research has applied tax- nication policies of M & S units.
onomies to comprehend how firms relate to their markets The third, and most important, conclusion from Table 1
and their customers (Cannon and Perreault 2001; Coviello is that, with one exception, all the empirical studies focus
et al. 2002), how sellers manage key accounts (Homburg, on an “average” or a typical M & S relationship and do not
Workman, and Jensen 2002), or how marketing contributes analyze variation in the organization of M & S. As an exam-
to the implementation of a business strategy (Slater and ple, Strahle, Spiro, and Acito (1996), who note that strate-
Olson 2001). gies and plans in M & S units are inconsistent and badly
We organize the rest of this article as follows: We communicated, do not distinguish between different config-
review literature on the M & S interface. Then, we discuss urations of M & S. As another example, Cespedes’s (1995)
procedures for selecting input variables to taxonomies and qualitative report describes typical cognitive orientations of
identify the relevant domains and constructs of the M & S marketing, sales, and service; typical task allocations
interface. Afterward, we document the measurement of between these three groups; and typical integration mecha-
M & S constructs and describe the taxonomical procedures. nisms. Only Workman, Homburg, and Gruner (1998)
In the “Results” section, we present the taxonomy and explicitly address variation in the organization of M & S.
explore outcomes of the configurations. The article con- However, their typology is based solely on reporting rela-
cludes with implications for academic research and mana- tionships and organization charts. As Webster (1997, p. 55)
gerial practice. notes, “future marketing organizations … will not be possi-
ble to visualize … with the tools of the standard organiza-
Literature Review tion chart.” In addition, they focus on large companies with
multiple strategic business units (SBUs). Finally, their sam-
Much empirical work on marketing organization has not ple comprises only 47 firms.
distinguished between marketing units and sales units. Tra-
To conclude our review of extant empirical work, there
ditionally, sales has been conceptualized as a subunit of the
seems to be a lack of large-scale empirical studies of alter-
marketing department that reports to a marketing executive
native M & S configurations that integrate the broad range
(Ruekert, Walker, and Roering 1985; Weitz and Anderson
of issues studied in isolation hitherto: power (Homburg,
1981). For example, Ruekert and Walker (1987a, b) and
Workman, and Krohmer 1999), information sharing
Dastmalchian and Boag (1990) speak about marketing as
(Strahle, Spiro, and Acito 1996), structural integration
one whole and barely mention the word sales. This view of
mechanisms (Cespedes 1995), cognitive orientations, and
M & S as one unit is challenged by qualitative reports
knowledge (Cespedes 1995; Montgomery and Webster
(Piercy 1986). Workman, Homburg, and Gruner (1998, p.
1997).
37) state that “in the 47 firms we studied, we never
observed a sales manager reporting to a marketing
Conceptual Articles
manager.” The separation of M & S has received more
attention only recently. Our review includes empirical stud- Two categories of conceptual articles on separate M & S
ies and selected conceptual articles on the M & S interface. units can be distinguished. The first category revolves
around integration devices for M & S. Drawing on studies
Empirical Studies of marketing’s integration with other functional groups
Table 1 summarizes the empirical studies on the M & S (e.g., finance, production, research and development
interface. From these, we draw three conclusions. First, [R&D]), Dewsnap and Jobber (2000) propose antecedents
there is a general lack of empirical insight into the M & S to M & S integration, such as formalization, decentraliza-
interface. Table 1 contains only eight empirical studies, two tion, or category teams. In a similar vein, Rouziès and col-
of which stem from the same data set. Second, of these leagues (2005) develop a framework of M & S integration.
eight empirical studies, only three (Cespedes 1995; Strahle, They conceptualize structural, procedural, cultural, and
Spiro, and Acito 1996; Workman, Homburg, and Gruner people-based integration mechanisms for M & S. They also
1998) are dedicated to the organization of the M & S inter- propose environmental, customer-related, competitor-
face. The other five studies just touch on the M & S inter- related, and internal moderators of the integration–
face as a side issue. Montgomery and Webster (1997) and performance link. Finally, taking a social psychology per-
Panigyrakis and Veloutsou (1999) discuss marketing’s inter- spective, Dewsnap and Jobber (2002) conceptually explore
faces in general and point out the importance of the inter- how goal conflict and departmental identities hamper an
face between M & S. Homburg, Workman, and Krohmer effective M & S relationship. Again, we find that these arti-
(1999) and Krohmer, Homburg, and Workman (2002) focus cles are a rich source of key constructs. However, none of
on marketing’s influence over market-related activities. these articles differentiate between different M & S config-
However, their empirical study explicitly distinguishes urations whose use of the integration mechanisms varies.
between the influence of marketing and the influence of The second category of conceptual articles comprises
sales. What we can gather from their findings is that many managerial articles on evolutionary stages of marketing

134 / Journal of Marketing, March 2008


TABLE 1
Empirical Studies of the M & S Interface
Analysis of
Various
Empirical Empirical M&S
Authors Focus of Study Approach Basis Key Insights into M & S Interface Configurations
Cespedes Integration Qualitative 200 interviews Product management and sales No
(1995) among product in the comput- management have different windows to
management, ing, telecom- the world. Differences pertain to role
sales munications alignment (products versus accounts),
management, services, con- time horizons, and responsibilities.
and customer sumer pack- Differences reflect specialization within
service aged goods, each group and are necessary to cope
and medical with increasingly complex marketing
products problems.
industries

Homburg, Marketing’s Quantitative 514 SBUs in Marketing has the greatest influence No
Workman, influence within consumer over advertising messages, customer
and the firm packaged satisfaction management, strategic
Krohmer goods, electri- direction of the business unit, and new
(1999) cal equipment, product development. Sales has the
and mechani- greatest influence over expansions into
cal machinery new geographic markets, distribution
industry strategy, customer service, and pricing.

Krohmer, Cross-functional Quantitative Same as Hom- Influence over many marketing acitivities No
Homburg, dispersion of burg, Work- is spread between M & S. In effective
and marketing man, and SBUs, both M & S are more influential
Workman activities Krohmer than R&D, manufacturing, and finance.
(2002) (1999)
Montgomery Marketing’s Qualitative 47 attendees There is much conflict between M & S. No
and interfunctional of an Market- Sales is driven by short-term revenue,
Webster interfaces ing Science and marketing is driven by long-term
(1997) Institute profit and margin goals.
workshop
Panigyrakis Interfaces of Quantitative 161 brand Sales and marketing are the two No
and brand managers managers from interfaces on which that brand managers
Veloutsou 48 consumer spend the most time.
(1999) goods firms
Smith, Timing and Quantitative 1 home There is a complex interplay among No
Gopala- budget allocation improvement marketing communication efforts, delays
krishna, of marketing retailer, 6068 in follow-up, and sales efficiencies.
and communication purchasing Importance of follow-up timing implies
Chatterjee for generating events importance of internal collaboration
(2006) sales leads, between M & S.
appointments,
and closures
Strahle, Spiro, Planning of Quantitative 367 sales In general, sales managers do not set No
and Acito market managers and sales objectives that are consistent with
(1996) strategies, sales 25 marketing the strategy specified by a marketing
objectives, and executives executive for a particular product. Some
sales activities from 25 firms of the reasons for this gap are
miscommunications and volume-goal
differences.
Workman, Dimensions and Qualitative 72 managers M & S are typically separate No, but
Homburg, determinants of in 47 firms departments and are not integrated description of
and Gruner marketing under a chief marketing executive. In various
(1998) organizations none of the firms did a sales manager reporting lines
report to a marketing manager. There
are five typical structural locations of
M & S. M & S subunits are found at the
corporate level, at the business unit
level, and at the local (country) level.

Configurations of Marketing and Sales / 135


within the organization. To the best of our knowledge, the three texts do not discuss all these issues for all organiza-
articles by Day (1999), Kotler, Rackham, and Krish- tional types. Thus, there are blanks in Table 2. An issue that
naswamy (2006), and Webster (1997) are the closest to has received the most attention is marketing’s power over
what may be referred to as a conceptual typology of M & S market-related activities.
interfaces. Thus, it is important to review their classifica- This article builds on these classifications in two ways.
tions here. However, note that these classifications are nar- First, our conceptual model integrates the conceptual issues
rative and do not systematically develop archetypes based
raised. For example, the power balance between M & S is
on clearly defined dimensions. Note also that the key focus
identified as an important conceptual dimension. Second,
of Day (1999) and Webster (1997) is on marketing’s role
within a multi-business-unit corporation, not on the M & S our “Discussion” section compares the empirical results of
interface within a single business unit. Table 2 reconstructs our study with the conceptual types proposed in the previ-
key aspects from the three narrative classifications: We ous sources.
organized the three narrative classifications in terms of five The key limitation of these conceptual classifications
key issues: power, structural linkages, orientations, knowl- is the lack of clearly defined dimensions that enable a sys-
edge, and outcomes of M & S cooperation. However, the tematic comparison of the archetypes. The next section

TABLE 2
Conceptual Classifications of Separate M & S Functions
Structural Cooperation
Authors Interface Type Power Linkages Orientations Knowledge Outcomes
Day (1999) Marketing as a Marketing is Product-
functional the traditional oriented
fiefdom lead function, marketing
but there is a
power shift to
sales to be
more
responsive to
market needs

Marketing as a Marketing as Core process Tactical,


subordinate sales support teams implementation-
function focused
marketing

Marketing as a Marketing is Business Market- Market


central responsible for planning, oriented leadership
guidance strategy, market- culture
function information oriented
sharing, and organizational
coordination structures

Kotler, Marketing as Sales Positive


Rackham, adjunct to dominates relationship
and Krishna- sales over marketing between M & S
swamy (2006)

Marketing as Powerful Sales is short- Doubts about Disagreements


an brand term oriented marketing’s between M & S
independent managers competence
player

Webster (1997) Marketing as a Marketing Functional Ongoing conflict


distinct pursues silos, weak between M & S,
function excellence in integration slow response
all phases of with other to market
integrated business environment
marketing functions
strategy

Marketing Marketing Teams, Customer Most successful


integrated with responsible for functional silos focus form
other business program broken down
functions development

136 / Journal of Marketing, March 2008


addresses this limitation and develops a conceptual model 1996; Scott 1992). As Figure 1 indicates, we view interfaces
of the M & S interface. to be constituted by five conceptual domains. Each domain
contains one or more conceptual dimensions. The concep-
tual domains are not constructs of a higher order but merely
Conceptual Model conceptual categories, or conceptual containers, of similar
This section develops our conceptual model of the M & S constructs. We emphasize that the order of the domains in
interface. As we stated in the literature review, there is a need Figure 1 does not suggest a hierarchical structure, espe-
for a multidimensional taxonomy. We first explain which cially not in the strong sense that one domain is a functional
guidelines instructed the construction selection. We then pro- prerequisite of another.1
ceed to identify the general conceptual domains of interfaces. The first conceptual domain is information sharing. It
Finally, we define specific constructs within the domains. contains the extent of cross-functional intelligence dissemi-
nation and knowledge sharing. The importance of informa-
Procedures for Selecting Constructs tion sharing and communication has been emphasized by
The literature is replete with recommendations for the literature on intraorganizational interfaces (Fisher, Maltz,
selection of input variables to a classification (for reviews, and Jaworski 1997; Kahn, Reizenstein, and Rentz 2003)
see Bailey 1994; Dess, Newport, and Rasheed 1993; Rich and by Cannon and Perreault’s (1999) taxonomy of inter-
1992). In unexplored territory, such as the M & S interface, organizational interfaces. In addition, information sharing is
the literature unequivocally advises choosing variables “in a emphasized by studies on market orientation, organizational
way that fosters rich description of a sample’s characteris- learning, and new product development (Marinova 2004;
tics” (Ketchen and Shook 1996, p. 444). Some authors have Moorman 1995).
understood this as a call to include as many variables as The second conceptual domain encompasses structural
possible (McKelvey 1975). However, simulation studies linkages. Structural linkages refer to the extent to which
have warned that spurious variables (i.e., variables that do formal horizontal platforms or interaction channels are
not differentiate between clusters) distort the detection of established for interdepartmental activities (Workman,
cluster structures in the data (Punj and Stewart 1983). For Homburg, and Gruner 1998). In an intraorganizational con-
this reason, we winnow two types of variables. First, we text, structural linkages are often presented as a continuum
identify a parsimonious set of theoretical core constructs of coordination mechanisms (Martinez and Jarillo 1989).
that serve as input variables to the cluster algorithm. These Structural linkages are also an important element in a tax-
constructs are grounded in the literature to ensure their rele- onomy of interorganizational interfaces (Cannon and Per-
vance. Second, we analyze several descriptive variables that reault 1999).
do not enter the cluster procedures but are used to charac- The third domain is power. It reflects how the influence
terize the clusters. over market-related activities is divided among organiza-
The literature has also discussed how much inter- tional subunits (Homburg, Workman, and Krohmer 1999).
dependence between the cluster variables is admissible. This domain is particularly important to the taxonomy
Early articles recommend the exclusion of variables that are because extant research suggests a great deal of variation
logically or empirically correlated (Sneath and Sokal 1973). between firms. In some firms, sales units are dominant, and
Recent articles contend that unlike other multivariate meth- in others, marketing units are dominant (Piercy 1986;
ods (e.g., regression analysis), most cluster methods do not Workman, Homburg, and Gruner 1998).
rely on the assumption that the input variables are uncorre- The fourth conceptual domain groups various orienta-
lated (Arabie and Hubert 1994; Milligan 1996). Thus, we tions. The orientations of an organizational unit pertain to
accept some conceptual overlap and empirical correlation the time horizon (short-term versus long-term) and objects
between the constructs. However, we ensure discriminant (e.g., customers versus products) at which it arrays its activ-
validity in measuring these constructs. ities (Lawrence and Lorsch 1969). For example, the litera-
To conclude, we attempt to cover the relevant concep- ture has characterized sales as short-term oriented (Lorge
tual domains while keeping the number of variables parsi- 1999). In general, literature on interfunctional interfaces of
monious. Toward this end, we use a two-step selection pro-
cedure. First, we identify the relevant conceptual domains 1Although the conceptual dimensions in Figure 1 do not repre-
to achieve conceptual breadth. Second, we select theoretical sent a linear hierarchy, they are not completely unrelated. For
core constructs within each conceptual domain. Constructs example, from an organizational design perspective (Galbraith
are identified as core if their relevance has been repeatedly 1973; Lawrence and Lorsch 1969), differences between the orien-
emphasized in extant literature on M & S, if they are tations and the knowledge of M & S are viewed as differentiation,
whereas structural linkages and information sharing are viewed as
grounded in theoretical literature on interfaces, and if they integration mechanisms. To close orientation and knowledge gaps
are applicable across industries. Given the danger of spuri- between M & S, the literature recommends the use of integration
ous variables, our selection procedure weighs parsimony mechanisms (Rouziès et al. 2005). Thus, conceptually, there is an
and theoretical justification of constructs more heavily than interdependent relationship between the domains: More differenti-
a fully exhaustive list of constructs. ation gaps require a higher use of integration mechanisms,
whereas a higher use of integration mechanisms contributes to
Conceptual Domains of the M & S Interface eliminating the differentiation gaps. The interdependent nature of
the domains is consistent with our configurative analysis of con-
The systems perspective suggests that two organizational struct patterns and speaks against specifying one-directional
subsystems are linked by multiple relationships (Bunge hypotheses for bivariate relationships.

Configurations of Marketing and Sales / 137


FIGURE 1
Conceptual Model of M & S Interfaces

marketing has identified differing orientations as a major of information. Because information transmission, or gen-
stressor to interfunctional cooperation (Griffin and Hauser eration, is a bilateral issue, we conceptualize information
1996). The importance of functional orientations has also sharing with two variables: We define “information provi-
been noted in pioneer work on the M & S interface (Ces- sion by marketing” as the extent to which marketing people
pedes 1995). supply salespeople with needed data and “information pro-
The fifth domain is knowledge. This refers to the level vision by sales” as the extent to which salespeople supply
of expertise in an organizational unit. The importance of marketing people with needed data.
knowledge to interdepartmental interfaces has been pointed Structural linkages. Previously, we defined “structural
out by research on departmental thought worlds. Knowl- linkages” as the extent to which formal horizontal platforms
edge differences can hamper communication and cause an or channels are established for interdepartmental activities.
interpretive barrier (Dougherty 1992; Frankwick et al. The classical horizontal cooperation platform is “team-
1994; Workman 1993). Existing knowledge functions as a work,” which we define as the extent to which market-
lens and affects how new information is weighted in making related activities are jointly developed and executed by
decisions (Brunswik 1955; Mitroff 1974). members of M & S (Cespedes 1996). Another structural
linkage that has received particular attention in the context
Identifying Specific Constructs Within the of M & S is joint planning (Piercy 1989; Strahle, Spiro, and
Domains Acito 1996). We define “joint planning” as the extent to
Information sharing. The literature has conceptualized which M & S codevelop objectives, budgets, and activities.
numerous constructs in the context of information shar- Finally, in the context of structural linkages, formalization
ing—for example, information transmission, intelligence is the most frequently studied dimension of the marketing
dissemination, and information utilization (Jaworski and organization (Dastmalchian and Boag 1990; Ruekert,
Kohli 1993; Moorman 1995). Of these constructs, informa- Walker, and Roering 1985). We define “formalization” as
tion transmission, or intelligence dissemination, is concep- the extent to which cooperation between M & S is struc-
tually the closest to interdepartmental information sharing. tured by guidelines.
We view information transmission, or dissemination, as the Power. The literature has used different approaches to
key construct because it is a necessary condition to the use conceptualize and operationalize power in an organizational

138 / Journal of Marketing, March 2008


context (Gaski 1987). One approach is based on the out- Outcome Variables and Control Variables as
comes of power (Dahl 1957; Emerson 1962). A second Additional Descriptors
approach is based on the sources of power (French and In addition to the cluster variables, we explore three out-
Raven 1959; Hunt and Nevin 1974; Lusch and Brown come variables and three control variables. These variables
1982). A third approach is based on decision areas over are purely descriptive and do not enter the cluster analysis.
which power is exerted (Enz 1989; Gaski and Nevin 1985; Our first outcome variable characterizes the state of M & S
Hinings et al. 1974). To assess interdepartmental power cooperation. The literature often uses the integration con-
relations, marketing organization literature has typically struct (Kahn 1996; Leenders and Wierenga 2002). It was
used the third approach, measuring power as an index that originally defined as “the quality of the state of collabora-
assesses whether the relative power over market-related tion that exists among departments that are required to
activities is concentrated in one or more departments (Hom- achieve unity of effort by the demands of the environment”
burg, Workman, and Krohmer 1999; Piercy 1989). We (Lawrence and Lorsch 1969, p. 11). However, Lawrence
define “sales (versus marketing) power” as an index that and Lorsch (1969, p. 11) note the ambiguity of the term
aggregates the extent to which specific market-related activ- “integration”: “While we will be using the term ‘integra-
ities are influenced by sales rather than by marketing. tion’ primarily to refer to this state of interdepartmental
Through this power measure, we also have a proxy for the relations, we will also, for convenience, use it to describe
variation in the reporting lines of the marketing organiza- both the process by which this state is achieved and the
tion (Homburg, Workman, and Jensen 2000; Workman, organizational devices used to achieve it.” We define the
Homburg, and Gruner 1998). Design variations ultimately “quality of cooperation between M & S” as the extent to
manifest in varying degrees of power over marketing which there is a state of collaboration between M & S that
activities. is characterized by unity of effort and harmony. We prefer
Orientations. The conceptual idea of departmental ori- the term “quality of cooperation” to the term “integration”
entations has a long tradition in organizational research. because we refer to the state of interdepartmental relations,
The classical work of Lawrence and Lorsch (1969) win- not to the integration process and the organizational
nows several facets of departmental orientations. The two devices.2
facets that have been picked up the most frequently by later Our second and third outcome variables extend beyond
interface research are goal orientation and time orientation the relationship of M & S and characterize the performance
(Dougherty 1992; Griffin and Hauser 1996). These two of the business unit (or company, if the organization has
facets are also reflected by managerial reports of the M & S only one business unit). Typically, M & S are embedded in
interface (Cespedes 1995; Lorge 1999). It has been claimed a business unit along with functions such as R&D, manu-
that marketing focuses on products, whereas sales focuses facturing, finance, and so forth. It is important to under-
on accounts. Our taxonomy shows whether this is the case stand whether the M & S interface affects the performance
for all companies or whether there also exist configurations of the whole. We emphasize that much prior literature on
of M & S with a customer-focused marketing and a marketing’s interfaces has merely considered the quality of
product-minded sales force. We define “customer (versus cooperation between M & S and has not taken the perfor-
product) orientation of marketing/sales” as the extent to mance of the whole business unit into account (De Ruyter
which the activities of marketing/sales are guided by and Wetzels 2000; Kahn, Reizenstein, and Rentz 2004;
customer-related rather than product-related strategies, Maltz and Kohli 1996, 2000). We define “market perfor-
plans, and performance evaluations. mance” as the extent to which the business unit/company in
In addition, managerial reports claim that sales is rather which M & S are embedded achieves better market-related
short-term oriented and marketing is rather long-term ori- outcomes than its competitors with respect to metrics such
ented (Cespedes 1995; Lorge 1999). We inquire whether as customer satisfaction and loyalty, new customer acquisi-
this applies across the board or whether some configura- tion, market share, and so forth. We define “profitability” as
tions have different time orientations. We define the “short- the return on sales (ROS) (operating profit divided by oper-
term (versus long-term) orientation of marketing/sales” as ating revenues).
the extent to which activities of marketing/sales are guided When we explore whether the configurations of M & S
by immediate action rather than by extensive planning. differ in regard to organizational outcomes, we control for
Knowledge. Literature on departmental thought worlds three context variables. First, internal change has been
has identified key constructs within the domain of knowl-
edge. Dougherty (1992, p. 179) speaks of “technology- 2Our construct differs from the integration concept proposed by
market knowledge.” Whereas market knowledge pertains to Song, Xie, and Dyer (2000), who specify three facets of integra-
the external environment of the organization, technology tion: level of cross-functional involvement, quality of cross-
pertains primarily to the internal environment. Building on functional information, and harmony of cross-functional relation-
this dichotomy, we define “market knowledge of marketing/ ships. The content of their measure of level of cross-functional
sales” as the extent to which a typical employee in involvement is reflected in our power domain, and their measure
marketing/sales is knowledgeable about customers and of quality of cross-functional information is reflected in our
information-sharing domain. We view these more as determinants
competitors, and we define “product knowledge of of cooperation quality. Our measure of quality of cooperation is
marketing/sales” as the extent to which a typical employee closest to their measure of harmony of cross-functional relation-
in marketing/sales is knowledgeable about products and ships, but our measure also emphasizes the original “unity of
internal processes. effort” that Lawrence and Lorsch (1969) propose.

Configurations of Marketing and Sales / 139


demonstrated to encumber internal working relationships 1993). We obtained a random sample of SBUs from a com-
and attitudes (Reilly, Brett, and Stroh 1993), as well as mar- mercial list provider. All SBUs came from different firms.
keting’s interfunctional relationships (Maltz and Kohli Telephone calls verified that the SBU had both a marketing
2000; Maltz, Souder, and Kumar 2001). Thus, we define and a sales subunit and identified informants with an
“internal dynamism” as the extent to which organizational overview of both subunits. Our sample included executives
structures, processes, leadership, and strategy within the from 1700 SBUs.
organization change frequently. Second, market turbulence All respondents were addressed by a personalized letter
and technological turbulence have been shown to influence and follow-up telephone calls. The respondents knew that
the market performance of the firm (Kirca, Jayachandran, their answers would be treated confidentially. Respondents
and Bearden 2005). Thus, we define “environmental were asked to refer to their SBU or, if their company only
dynamism” as the extent to which competitive activities, had one SBU, to their company. All respondents were asked
customer needs, and technology in the market change fre- to answer both the marketing-related and the sales-related
quently. Third, we control for the influence of industry questions. Given our prior identification of SBUs with sep-
because industries differ by their ROS level. arate M & S units, respondents were familiar with both
terms and were asked to refer to the units labeled M & S. To
ensure the appropriateness of the respondents, two items at
Methodology the end of the questionnaire asked how competent the
General Approach to Configurative Analysis respondents were to answer both the marketing-related and
the sales-related questions and how strongly the respondent
Configurations have a long history in the study of organiza-
was involved in the cooperation between M & S. We dis-
tions (Carper and Snizek 1980; Ketchen and Shook 1996).
carded 38 returned questionnaires because one of the items
Two main approaches to configurations are used in the lit-
was rated lower than four on a five-point scale (five indicat-
erature: The first approach analyzes organizational perfor-
ing high competence). As a result, we obtained 337 com-
mance as a function of organizational fit with a contin-
pleted and usable questionnaires. The average job experi-
gency, typically structural fit with a strategic contingency
ence of these people in M & S is 16.6 years, with a median
(Doty, Glick, and Huber 1993; Venkatraman 1989). Fit is
of 14 years. Our response rate is 20%. Although nonre-
modeled as the proximity to an “ideal type” for each contin-
sponse is always a concern in survey research, the response
gency. The most frequently studied contingencies are Miles
rate is within the range of comparable research (Harzing
and Snow’s (1978) strategic types. For example, Vorhies
1997; Olson, Slater, and Hult 2005). We controlled for non-
and Morgan (2003) assess marketing organization fit with
response bias by comparing construct means for early and
business strategy. This “fit approach” to configurations is
late respondents (Armstrong and Overton 1977). Of 18 per-
confirmatory and requires a substantial amount of prior
ceptual variables, only 1 (market knowledge of marketing)
knowledge and theory about the subject matter. In contrast,
showed significant (p < .05) differences between early and
the second approach to configurations is exploratory and
late respondents. This speaks against a systematic bias.
demands little prior knowledge on the subject (Ketchen,
Because the cluster variables and the outcome measures
Thomas, and Snow 1993). It uses cluster analyses to group
stem from the same person, which may create a common
organizations empirically. Our research follows the “classi-
method bias (Podsakoff et al. 2003), we collected financial
fication approach” because the M & S interface is largely
performance data from independent sources to validate the
unexplored.
market performance measure. We retrieved annual reports
Data Collection Procedure from two financial databases and the firms’ Web sites. We
used segment reports when available. We obtained the ROS
We conducted a large-scale mail survey of seven industry
(operating profits divided by operating revenues) of the year
sectors in Germany (Table 3). We selected these sectors on
in which the survey was administered and for the three sub-
the basis of their macroeconomic importance. By including
sequent years. Overall, these procedures yielded financial
consumer goods, industrial goods, and services, we ensured
data for 185 of the 337 data sets.3 We compared construct
a variety of market settings. For example, prior research has
noted differences between the M & S interface in consumer 3We could not obtain financial performance data for many
goods versus industrial firms (Cespedes 1993; Workman family-, foundation-, and state-owned companies, because public-
TABLE 3
Sample Composition
Number of Employees in
Industry Position of Respondent Business Unit/Company
Financial services 26% Head of marketing 46% <200 38%
Consumer packaged goods 19% Head of sales 36% 200–399 14%
Utilities 12% General manager/director 4% 400–999 17%
Chemical/pharmaceutical 12% Head of marketing communication 4% 1000–2999 18%
Automotive 11% Head of product management 4% 3000 or more 13%
Machinery 10% Other 6%
Electronics 5%
Other 5%

140 / Journal of Marketing, March 2008


means for data sets with and without financial performance. squared phi coefficient for any pair of two latent variables,
None of the 18 perceptual variables showed significant (p < which supports the discriminant validity of the reflective
.05) differences. In particular, the means of market perfor- measures (Fornell and Larcker 1981).
mance (3.53 versus 3.46, t = .84) and cooperation quality In constructing formative indexes, four critical issues
(3.62 versus 3.53, t = .96) were not significantly different. are content specification, indicator specification, indicator
Thus, this test speaks against the existence of a major avail- collinearity, and external validity (Diamantopoulos and
ability bias. Winklhofer 2001). In the “Conceptual Model” section, we
specified the content of power as the aggregate influence
Measurement Procedure over market-related activities. On the basis of the literature
We use two types of perceptual measures: reflective multi- review and the interviews, we specified seven activity indi-
item scales and formative multi-item indexes. If observed cators (see the Appendix). We specified the content of mar-
variables are interchangeable manifestations of an under- ket knowledge as knowledge about customers and competi-
lying construct, a reflective measurement model is appro- tors. The indicators comprise the external actors in Ohmae’s
priate (Bagozzi and Baumgartner 1994). In this study, we strategic triangle. We specified the content and the indica-
apply a reflective model to measure constructs such as ori- tors of product knowledge as knowledge about the product
entations, formalization, teamwork, internal and environ- outcome and internal processes of creating and delivering it.
mental dynamism, and quality of cooperation. On the con- After scrutinizing indicator collinearity for the three
trary, if a construct is a summary index of observed indexes, we did not find collinearity to be a problem. The
variables that define and determine the construct without maximum squared bivariate interindicator correlation is .16
necessarily being correlated, a formative measurement (Cohen et al. 2003). To assess the external validity of the
model is appropriate (Jarvis, MacKenzie, and Podsakoff power indicators, we followed a procedure similar to that of
2003). We contend that a formative model is appropriate to Coviello, Winklhofer, and Hamilton (2006); that is, we cor-
measure knowledge and power; being knowledgeable in related each of the seven indicators to an external constant-
one area does not entail being knowledgeable in another, sum measure of overall sales versus marketing power. Four
especially because specialization is a hallmark of organiza- correlations are significant at a .01 level, and three correla-
tions. In regard to power, if sales dominates price-related tions are significant at a .05 level, which supports the exter-
tasks, that does not inevitably mean that sales dominates nal validity of the power measure. We aggregated the indi-
market research tasks as well (Homburg, Workman, and vidual indicators to the formative indexes using equal
Krohmer 1999; Kotler, Rackham, and Krishnaswamy weights (Dillon 2001).
2006). Treating power as an index has a long tradition in the As Table 3 shows, the sample cumulates respondents
organizational literature (Eisenhardt and Bourgeois 1988; from marketing and respondents from sales. This makes it
Hinings et al. 1974). necessary to probe whether the structural patterns in the
We designed the questionnaire after an extensive litera- data set differ between marketing respondents and sales
ture review and qualitative interviews with at least one respondents: We tested whether the correlation matrix of
manager from each of the industries. A draft was pretested the indicator variables differs between M & S respondents.4
and refined with 20 additional managers. The Appendix The null hypothesis that variable correlations of the sales
provides scale items, properties, and sources. We assessed and the marketing respondents are equal cannot be rejected
reliability and validity of the reflective measures with mul- at a 5% significance level. This test represents strong evi-
tifactorial confirmatory factor analysis. Each construct dence that responses from M & S do not differ and that
manifests a composite reliability of at least .6 (Bagozzi and pooling the two groups is justified. In the “Results” section,
Yi 1988). Average variance extracted is higher than the we report an additional test, in which we assess whether
some of the emerging clusters reflect primarily responses
from sales and other clusters reflect primarily responses
ity requirements are less comprehensive in Europe than in the from marketing. Again, we find no evidence that the func-
United States. An additional challenge arises in the case of very tional membership of the respondent biases the empirical
large companies. For such enterprises, comprehensive financial results.
data are available on the level of the entire corporation, but limited
data are available on the level of divisions, or segments. However,
the divisions are still billion-dollar businesses and can be com-
posed of dozens of business units. The business units are medium- 4Using the two largest groups in Table 3, the “Head of Sales”
sized enterprises, but their financial data are not publicly available. (n = 120) and the “Head of Marketing” (n = 155), we estimated a
To verify whether the database ROS measures the performance of two-group LISREL measurement model with the indicator
the responding business unit and not the performance of a much variables of all constructs. We modeled each of the 52 indicator
larger organizational division, we compared self-stated revenues variables as a single-item exogenous variable measured without
from the survey with the revenues in the financial report. In some error. We conducted a chi-square difference test between an
cases, the business unit that responded to our survey represented unconstrained model that freely estimated the phi matrices in the
only a small fraction of the revenues in the financial report marketing and the sales group (i.e., the estimated correlations of
because the financial report combines the revenues from several indicators) and a model that constrained the phi matrices in both
business unit (whose individual revenues are not public). In these groups to be equal. The equality model fits the data well (root
cases, when database revenues and profits are dominated by other mean square error of approximation = .02, comparative fit index =
business units of the firm rather than the business unit responding .95, and nonnormed fit index = .91). The chi-square difference
to the survey, the database ROS could not be used as a perfor- between the two models is 1454.9 (1378 = d.f.); thus, p > .05. We
mance measure of the responding business unit. cannot reject the null hypothesis of equal phi matrices.

Configurations of Marketing and Sales / 141


Taxonomic Procedure positive but also negative coincidence. It is scaled between
We took a three-stage clustering approach, building on pro- 0 and 1 (1 indicates perfect stability). The cross-validation
cedures that Bunn (1993), Cannon and Perreault (1999), yields a Rand index of .8.
and Homburg, Workman, and Jensen (2002) use. The three
core issues in clustering are determining the number of Results
clusters, assigning observations to clusters, and assessing
the stability of cluster assignments. We conducted all analy- The last step toward the taxonomy is to validate whether the
ses with SAS 9.1. clusters have meaningful interpretations (Rich 1992). Table
To determine the appropriate number of clusters, we 4 shows the cluster means for each of the 14 cluster
used the cubic clustering criterion (Sarle 1983) and the variables. It also shows descriptive variables that explore
pseudo-t2 index (Duda and Hart 1973) in combination with the outcomes of the clusters, their representation in various
the hierarchical clustering algorithm that Ward (1963) industries, company size categories, respondent categories,
developed. In Milligan and Cooper’s (1985) comparative and contexts. It is worth reiterating that the clusters were
study of 30 methods for estimating the number of popula- formed only on the basis of the 14 constructs from the five
tion clusters, cubic clustering criterion and pseudo-t2 were interface domains. The descriptive variables were not used
among the top-performing criteria. Because Ward’s algo- as active cluster variables. Thus, we explore whether the
rithm is sensitive to scaling and outliers, we standardized clusters differ in regard to the descriptive variables. Specifi-
the clustering variables on the basis of their range (Milligan cally, we tested whether cluster membership is associated
and Hirtle 2003). In addition, we identified 15% of the with the respondent’s functional background, company size,
observations as outliers and removed them from the data or industry. We find no significant indication that some
set.5 This is consistent with Punj and Stewart (1983, p. clusters reflect respondents primarily from sales and others
143), who note that outliers can hamper algorithm perfor- primarily from marketing (χ2 = 5.13, d.f. = 4, p = .27),
mance when more than 90% of all observations are fed into which adds confidence to the key informant data. We also
the cluster algorithm. Finally, clustering 20 randomly find no significant association between cluster membership
selected subsamples from the remaining data, each contain- and company size (χ2 = 16.02, d.f. = 16, p = .45). However,
ing two-thirds of the sample, we found strong support for a we find a significant association between cluster member-
five-cluster solution. ship and industry (χ2 = 84.63, d.f. = 3 2, p < .01), which we
To assign observations to clusters, we clustered the expand on in the description of the individual clusters. Fol-
complete sample by a hybrid approach (Punj and Stewart lowing the interpretation steps that Bunn (1993) suggests,
1983) that combined Ward’s method with the k-means we compared the cluster means on the continuous variables,
method. Simulation studies on the performance of cluster- using Waller and Duncan’s (1969) k-ratio t-test. Cluster
ing algorithms demonstrate that partitioning methods (e.g., means carrying the same superscript do not differ at a 5%
k-means) yield excellent results if given a reasonable start- significance level. Finally, we translated the statistical
ing solution (Milligan and Cooper 1987). Using Ward’s ranges into verbal descriptions (see Table 5).
method to compute a starting solution for k-means has been
shown to be a powerful combination (Helsen and Green Interpretation of Clusters
1991) and has been recommended by Punj and Stewart In interpreting the clusters, we assign names to the
(1983) and Arabie and Hubert (1994). approaches. Although such names tend to oversimplify,
To assess the stability of the cluster assignment, we they point out empirically distinct aspects of different
used the cross-validation procedure that McIntyre and approaches and facilitate the discussion of the results. For
Blashfield (1980) propose. Milligan and Cooper (1987, p. illustrative purposes, we also indicate prototypical firms
351) deem this procedure to be “an excellent strategy for that are the closest to the centroid of each cluster.
establishing the generalizability of a cluster analysis.” We
Cluster 1 (“Ivory Tower”). The sales unit is in the low-
randomly split the sample in halves and applied the hybrid
est range of market knowledge and is the most product
clustering procedure to each half. Then, we assigned each
focused of all clusters. It also has a rather short-term focus.
object in the second half to the nearest cluster centroid
Thus, sales appears to have an operative rather than a strate-
obtained from the first half (based on the squared Euclidean
gic mind-set. It seems that the sales unit has a product-
distance). As a result, we obtained two cluster assignments
driven, operative selling role. This contrasts sharply with
for each object in the second half and compared their con-
the marketing unit, which has a rather high customer focus
sistency using Rand’s (1971) index, which counts not only
and a medium time orientation. Whereas the high customer
orientation could put marketing in a position to counter-
poise the operative sales force, marketing has one problem:
It is out of touch with the market and the products. Market-
5We identified outliers using a dual criterion. We used nearest-
ing’s level of product and market knowledge is the lowest of
neighbor (single-linkage) clustering to mark observations that all clusters. In addition, there is not much information shar-
were joined the last in the agglomeration tree. We also used PROC
FASTCLUS to compute a 20-cluster solution and marked observa-
ing between sales and marketing and little joint planning.
tions that formed their own, small cluster detached from the other Marketing’s role appears to be an isolated caller for more
observations. If both criteria were in agreement, the observation customer orientation. Overall, the most obvious characteris-
was identified as an outlier. tic of this cluster is that both M & S seem to lack an under-

142 / Journal of Marketing, March 2008


TABLE 4
Statistical Cluster Description
Total 1 2 3 4 5
Percentage of 100% 28% 18% 14% 17% 23%
Observations (n = 278) (n = 77) (n = 51) (n = 38) (n = 48) (n = 64)
Functional background of Head of marketing 100% 29% 16% 12% 16% 27%
informants Head of sales 100% 34% 22% 13% 15% 16%

Number of employees in <200 100% 30% 13% 16% 12% 29%


business unit/company 200–399 100% 31% 16% 5% 24% 24%
400–999 100% 25% 23% 10% 23% 19%
1000–2999 100% 22% 24% 15% 17% 22%
3000 or more 100% 28% 22% 19% 19% 12%

Industry Financial services 100% 44% 9% 9% 9% 29%


Consumer packaged goods 100% 26% 39% 9% 14% 12%
Machinery 100% 32% 8% 25% 21% 14%
Automotive 100% 23% 23% 25% 10% 19%
Electronics 100% 25% 8% 8% 42% 17%
Chemical/pharmaceutical 100% 15% 12% 6% 41% 26%
Utilities 100% 19% 13% 25% 6% 37%

Information sharing Information provision by marketing 3.50c 4.34a 3.99b 3.60c 4.06b
Information provision by sales 3.18b,c 4.22a 3.25b 2.96c 3.41b

Structural linkages Formalization 2.73c 3.52a 1.97d 3.03b 3.00b


Joint planning 3.75c 4.50a 2.88d 3.78c 4.23b
Teamwork 3.54b 4.17a 2.64c 3.55b 4.02a

Power Sales (versus marketing) power 3.30b,c 3.15c 3.73a 2.67d 3.41b

Orientations Marketing’s customer (versus 2.95b 2.59c 2.90b 1.91d 3.86a


product) orientation
Marketing’s short-term (versus 2.77b 2.28c 3.30a 2.46c 2.98b
long-term) orientation
Sales’ customer (versus product) 2.78c 3.26b 3.11b 3.31b 4.01a
orientation
Sales’ short-term (versus 3.48b 2.73d 3.39b,c 3.91a 3.15c
long-term) orientation

Knowledge Marketing’s market knowledge 3.09b 3.64a 3.76a 3.27b 3.82a


Marketing’s product knowledge 3.44d 4.57a 3.95c 4.28b 3.77c
Sales’ market knowledge 3.83c 4.54a 4.46a 3.76c 4.18b
Sales’ product knowledge 3.51c 4.08a 4.13a 3.04d 3.88b

Outcomes (descriptive) Cooperation quality 3.36c 4.23a 3.33c 3.25c 3.77b


Market performance 3.37b,c 3.87a 3.21c 3.50b 3.51b
Profitabilityt + 0 .03b .06a .03b .03b .04b
Profitabilityt + 1 .03b .06a .04b .03b .03b
Profitabilityt + 2 .02b .07a .04b .01b .04b
Profitabilityt + 3 .03b .09a .04b .00b .04b

Context variables Internal dynamism 2.69a 2.62a 2.73a 2.83a 2.72a


(descriptive) Environmental dynamism 2.90a 3.07a 2.50b 2.75a,b 2.80a,b
Notes: Reported values are mean values if not indicated otherwise. In each row, cluster means that have the same superscript are not signifi-
cantly different (p < .05) on the basis of Waller and Duncan’s (1969) multiple-range test. Means in the highest bracket are assigned the
superscript “a,” means in the next lower bracket are assigned the superscript “b,” and so forth.

standing for products and market needs. Lorge (1999) plumbing and radiant heating solutions, and a producer of
metaphorically refers to such a situation as being locked in professional catering technology. In Germany, banks have
the Ivory Tower. gone through a severe crisis. They are undertaking massive
This configuration of M & S is common in financial ser- efforts to improve the customer orientation of their sales
vices and the machinery industry. Three typical cluster force and to train their frontline employees in more
members are a travel insurance company, a producer of advanced capital market instruments. During the expert

Configurations of Marketing and Sales / 143


TABLE 5
Verbal Cluster Description
Marketing-
Brand-Focused Driven Devil’s Sales-Driven
Ivory Tower Professionals Sales Rules Advocacy Symbiosis
Interpretation Marketing role Isolated caller Expert in Operative Long-term Market expert
for customer leading role support product voice
orientation

Sales role Product- Congenial Dominant Operative Dominant


driven, counterpart of product expert customer product expert
operative marketing voice
selling

Industries in Financial Consumer Machinery, Chemical, Utilities


which cluster Services, Goods Automotive Electronics
is strongly Machinery
represented

Information Information Low High Medium Low Medium


sharing provision by
marketing

Information Low–medium High Medium Low Medium


provision by
sales

Structural Formalization Moderately High Low Moderately Moderately high


linkages low high

Joint planning Moderately High Low Moderately Moderately high


low low

Teamwork Medium High Low Medium High

Power Sales (versus Moderately Moderately High Low Moderately high


Marketing) low– low
Power moderately
high

Orientations Marketing’s Moderately Moderately Moderately Low High


customer high low high
(versus
product)
orientation

Marketing’s Medium Low High Low Medium


short-term
(versus long-
term)
orientation

Sales’ Low Medium Medium Medium High


customer
(versus
product)
orientation

Sales’ short- Moderately Low Moderately High Moderately low


term (versus high low–moderately
long-term) high
orientation

Knowledge Marketing’s Low High High Low High


market
knowledge

144 / Journal of Marketing, March 2008


TABLE 5
Continued
Marketing-
Brand-Focused Driven Devil’s Sales-Driven
Ivory Tower Professionals Sales Rules Advocacy Symbiosis
Marketing’s Low High Moderately low Moderately high Moderately low
product
knowledge

Sales’ market Low High High Low Medium


knowledge

Sales’ product Moderately low High High Low Moderately high


knowledge

Comparison with Day (1999) Marketing as Marketing as Marketing as


conceptual central subordinate functional
classifications guidance function fiefdom
function

Kotler, Marketing as an Marketing as an


Rackham, and adjunct to sales independent
Krishnaswamy player
(2006)

Webster (1997) Marketing Marketing as a


integrated with distinct function
other business
functions

interviews, we observed a potential reason marketing is among the most knowledgeable, with respect to both prod-
detached from the market in these industries. Companies ucts and markets. Notably, marketing has rather low prod-
sometimes hire marketing professionals from consumer uct knowledge, so the role of the product expert apparently
goods companies to inspire marketing thought in the orga- accrues to sales in this cluster. Marketing has the highest
nization. These people are highly customer oriented but short-term orientation of all clusters. This can be interpreted
cannot really make themselves heard, because they know such that marketing plays the role of operative support to
too little about the specificities of the market and the the dominant sales unit. We do not find much structured
products. cooperation in this cluster—formalization, joint planning,
Cluster 2 (“Brand-Focused Professionals”). This clus- and teamwork are the lowest of all clusters—which rein-
ter manifests the highest levels of formalization, joint plan- forces the impression that marketing is little more than an
ning, teamwork, and information sharing. In addition, both appendix to the sales force. Two typical cluster members
M & S have the highest levels of market and product knowl- are a producer of wind turbines and a local electric utility.
edge and the most long-term orientation of all clusters. Wind turbines are a project-based business with a small
Thus, the cooperation between M & S appears to be struc- number of (often public) customers. Some local electric
tured and professional in this cluster. Notably, marketing is utilities have only recently been deregulated after having
rather powerful and product driven in this cluster. This been local monopolists with little need for marketing. This
might be because this cluster represents the typical symbio- could explain why the role of marketing is so small in these
sis of M & S in the consumer packaged goods industry. This companies. In general, this cluster is common in the
industry is characterized by a strategic focus on brands and machinery and automotive industry.
by powerful brand managers, but in recent years, sales and Cluster 4 (“Marketing-Driven Devil’s Advocacy”). This
key account managers have gained status in consumer is a cluster of opposite orientations. Sales has the most
goods companies as customer business development, effi- short-term, operative focus of all clusters, whereas market-
cient consumer response, and category management are ing has a long-term, strategic focus. Marketing has the
implemented (Cespedes 1993; Homburg, Workman, and strongest product orientation of all clusters and rather high
Jensen 2000). Our study shows that marketing is still in the product knowledge, whereas sales has the lowest product
lead role and that sales has become a congenial counterpart. knowledge of all clusters. At the same time, cooperation
Two prototypical cluster members are a producer of soft between M & S is rather formalized. It seems that this con-
drinks and a producer of chocolate. figuration is an institutionalized controversy: In a fairly for-
Cluster 3 (“Sales Rules”). Sales dominates the stage in malized process, the contrasting perspectives of marketing
this cluster. Sales is the most powerful of all clusters and as a strategic product voice and sales as an operative cus-

Configurations of Marketing and Sales / 145


tomer voice are confronted for optimally balanced deci- noticeable features, the low extent of structural linkages and
sions. Literature on strategy making refers to such decision the highly unilateral power concentration, are not a promis-
processes as dialectical inquiry or devil’s advocacy (Dooley ing solution for the M & S interface. Marketing-Driven
and Fryxell 1999; Mason and Mitroff 1981). The final word Devil’s Advocacy has the lowest cooperation quality of all
in these discussions belongs to marketing, which is the most clusters. This is consistent with the observation that it is the
powerful of all clusters. The dominance of product-focused cluster of clashing orientations, with sales as the operative
marketing fits with the observation that this is the typical customer voice and marketing as the strategic product
configuration in the chemical and electronic industry. These voice. It seems that this devil’s advocacy, by contrasting
industries are characterized by capital-intensive production alternative routes, can produce fairly good decisions. The
assets. Capacity utilization drives many market-related market performance of this cluster is in the middle range.
decisions and is closely observed by product managers. This is consistent with research on the benefits of strategic
This could explain why marketing is long-term and product dissensus (Bourgeois 1985). However, in following years,
oriented but has low market knowledge in this cluster. Mar- the profitability of this cluster is consistently in the lowest
keting seems to be technical and inward looking. In other range. Finally, Sales-Driven Symbiosis is in the second-
words, being product oriented is strongly associated with highest performance bracket in regard to cooperation qual-
being production oriented in this cluster. Three typical clus- ity, market performance, and profitability.
ter members are a business unit of a producer of fertilizers, What the two most successful configurations (Brand-
a major airfreight company, and a European plant of a U.S. Focused Professionals and Sales-Driven Symbiosis) have in
car manufacturer. common is an intense use of structural linkages, high mar-
Cluster 5 (“Sales-Driven Symbiosis”). This is a cluster ket knowledge within the marketing unit, and a long-term
of complementary skills. Marketing’s product knowledge is orientation of the sales unit. These two clusters are charac-
rather low, whereas sales’ product knowledge is rather high. terized by a clear, but not extreme, power distribution
Marketing’s market knowledge is high, whereas sales’ mar- between M & S. The pattern that pervades the less success-
ket knowledge is medium. Both M & S are highly customer ful configurations is low levels of information sharing,
focused, and the level of teamwork is in the highest range of structural linkages, and knowledge as well as extreme
all clusters. In addition, formalization and joint planning are power distribution.
rather high, which suggests a structured cooperation. Sales It is necessary to verify whether the between-cluster dif-
is the more powerful player in this cooperation. We chose ferences of the outcome variables remain significant when
the term symbiosis for this cluster to emphasize the inter- we control for context factors. We analyzed seven analysis
dependent teamwork of two departments with complemen- of covariance (ANCOVA) models—one with cooperation
tary skills. This configuration is typical for utilities. The quality as the dependent variable, one with market perfor-
two most typical cluster members are a local electrical util- mance, and five with profitability at different time lags
ity firm and a business unit of one of Europe’s largest utili- (Table 6). The ANCOVA models comprised four predictors:
ties. Because utilities are characterized by long-term con- two class variables (cluster membership and industry) and
tracts, it is plausible that sales is long-term oriented in this two metric covariates (internal dynamism and environmen-
cluster. tal dynamism). As Table 6 shows, the performance impact
of the M & S configuration remains highly significant for
Exploration of Outcomes all outcomes even after the inclusion of control variables.
The bottom of Table 4 shows the outcomes achieved by the We find a significant association of cluster membership
five clusters. Cooperation quality and market performance with profitability not only in the year of the survey but also
are retrospective perceptual measures that reflect the situa- in subsequent years. We find the highest partial F value for
tion up to the survey. In addition, we collected objective cluster membership for a lag of +1 year after the survey. We
profitability data for the years following the survey to emphasize that the model explains 35% of the variance of
address causality issues. We first comment on the outcomes profitability in that year.6
achieved by each cluster (see Table 4) and then make more To further corroborate trust in the effect of M & S con-
general comments on the findings. The Ivory Tower cluster figurations on profitability, we conducted a Granger-
is in the lowest range of clusters for all three outcome causality test (Dufour and Renault 1998; Granger 1969).
variables. The profitability of this cluster is consistently in The M & S configuration is assumed to Granger-cause prof-
the lowest category. This is not surprising given the low lev- itability if the M & S configuration at t + 0 provides statisti-
els of market knowledge, information sharing, and struc- cally relevant information about profitability in t + n in the
tural linkages. In contrast, the Brand-Focused Professionals presence of profitability at t + 0. As the effect of configura-
cluster achieves the highest levels of cooperation quality, tion is significant for various time lags n, we find strong
market performance, and objective financial performance.
We emphasize that this cluster’s profitability is consistently
in the highest bracket for several years following the survey.
The high levels of information sharing, knowledge, and
structural linkages in this cluster pay off. Sales Rules is one 6Variance explanation is even higher in years t + 2 and t + 3, but
of the weaker configurations. All three outcomes are in the this is more of an industry effect than an effect of the M & S
lowest range of all clusters. It seems that this cluster’s most configuration.

146 / Journal of Marketing, March 2008


TABLE 6
Exploratory ANCOVA Results for Cluster Performance

Type III Sum Mean Sum


Dependent Variable d.f. of Squares of Squares F R2

Cooperation quality Model 14 42.88 3.06 7.09*** .27


Error 260 112.29 .43

M & S configuration 4 32.07 8.02 18.56***


Industry 8 5.11 .64 1.48
Market dynamism 1 2.32 2.32 5.37**
Internal dynamism 1 1.17 1.17 2.71

Market performance Model 14 20.88 1.49 3.97*** .18


Error 259 97.40 .38

M & S configuration 4 5.94 1.49 3.95***


Industry 8 6.60 .83 2.20**
Market dynamism 1 2.02 2.02 5.37**
Internal dynamism 1 1.45 1.45 3.84*

Profitabilityt + 0 Model 14 .0263 .0019 2.48*** .20


Error 136 .1033 .0008

M & S configuration 4 .0098 .0024 3.22**


Industry 8 .0123 .0015 2.03**
Market dynamism 1 .0013 .0013 1.75
Internal dynamism 1 .0002 .0002 .29

Profitabilityt + 1 Model 14 .0492 .0035 5.05*** .35


Error 129 .0899 .0007

M & S configuration 4 .0113 .0028 4.07***


Industry 8 .0247 .0030 4.42***
Market dynamism 1 .0001 .0001 .18
Internal dynamism 1 .0004 .0004 .63

Profitabilityt + 2 Model 14 .1369 .0098 5.60*** .39


Error 123 .2147 .0017

M & S configuration 4 .0154 .0038 2.20*


Industry 8 .0916 .0114 6.56***
Market dynamism 1 .0003 .0003 .16
Internal dynamism 1 .0001 .0001 .05

Profitabilityt + 3 Model 14 .3680 .0263 6.57*** .43


Error 120 .4800 .0040

M & S configuration 4 .0456 .0114 2.84**


Industry 8 .2922 .0365 9.12***
Market dynamism 1 .0074 .0074 1.84
Internal dynamism 1 .0002 .0002 .05
*p < .10.
**p < .05.
***p < .01.

support that the M & S configuration Granger-causes To conclude, on the one hand, the exploration of out-
profitability.7 comes reveals one cluster (Cluster 2) whose profitability
7We first estimated a general linear model for profitability at t +
1 as the dependent variable with the M & S configuration at t + 0
and profitability at t + 0 as the two independent variables. A likeli- of the M & S configuration (χ2 = 14.07, d.f. = 4, p < .01) and the
hood ratio test shows that the effect of the M & S configuration is effect of profitability at t + 0 (χ2 = 4.95, p = .03) to be significant
significant (χ2 = 13.73, d.f. = 4, p < .01), even in the presence of again. For a lag of +3 years, the effects of both M & S configura-
the lagged profitability variable (χ2 = 37.11, p < .01). Using prof- tion (χ2 = 9.29, d.f. = 4, p = .05) and profitability at t + 0 (χ2 =
itability at t + 2 as the dependent variable, we found both the effect 2.97, p = .08) are weaker but still weakly significant.

Configurations of Marketing and Sales / 147


significantly differs from the others and two clusters (Clus- the three types that have been proposed by conceptual
ters 2 and 5) whose cooperation quality and market perfor- typologies are common in industries that rank at the top of
mance differ from the others. This suggests that there are business press attention: consumer goods, automotive, and
superior configurations for which companies should strive. electronics. In contrast, one of the additionally discovered
On the other hand, we observe that several very different clusters is typical of an industry that receives comparatively
clusters achieve similar outcomes. This is consistent with less coverage, namely, utilities. Fourth, the core focus of the
the equifinality hypothesis of the configurative approach extant literature is on marketing’s role in the firm, not on
(Meyer, Tsui, and Hinings 1993). sales. Not surprisingly, the conceptual types include the two
clusters in which marketing’s role is the strongest and the
one cluster in which marketing’s role is the weakest. In con-
Discussion trast, the two additional clusters represent shades of gray
Comparison of Cluster Results with Conceptual that are predominantly driven by sales. To conclude, the
Typologies in the Literature comparison shows the importance of validating and com-
We compare the empirical taxonomy with previous concep- plementing conceptual typologies by broad-based empirical
tual typologies in the literature. The bottom three rows of taxonomies.
Table 5 juxtapose the conceptual types and the emergent
clusters. From these, we draw three conclusions: First, there Implications for Academic Research
is a high consistency among the conceptual typologies. The This study contributes to academic marketing research in
literature essentially describes three types of M & S config- several ways. First, it is one of the first to consider the man-
urations. Second, all three conceptual types can be matched agerially important interface between M & S. This interface
to empirical clusters in this study. Third, our study discov- has long been neglected in the literature, but lately, it has
ers two additional clusters that have not been discussed in been chosen as one of the topics of the American Marketing
the literature. Association thought leadership forums (Rouziès et al.
We now discuss each of the conceptual types. As a first 2005). To the best of our knowledge, ours is the largest
type with a limited marketing role, both Day (1999) and empirical database of the M & S interface so far, collecting
Kotler, Rackham, and Krishnaswamy (2006) propose that, questionnaires from several industries and more than 300
in some companies, marketing is a subordinate adjunct to companies. This lends generalizability to the findings.
sales. The finding of the Sales Rules cluster confirms this Second, this article makes a conceptual contribution.
proposition. As a second and more pronounced marketing We identify dimensions of M & S configurations and
role, all three sources propose a distinct and independent develop a multidimensional model for studying interfaces.
marketing “fiefdom” that challenges the sales function and More specifically, we distinguish five domains: information
is characterized by palpable conflict between M & S. This sharing, structural linkages, power, orientations, and knowl-
proposition remarkably parallels the Marketing-Driven edge. Whereas information sharing, structural linkages, and
Devil’s Advocacy cluster, which has the lowest cooperation power issues have received significant research attention,
quality of all clusters. As a third marketing role, Day sug- orientations and knowledge are comparatively less
gests that “marketing as a central guidance function” is explored. The importance of studying orientations and
characterized by a strong marketing department, a highly knowledge has been emphasized in research on departmen-
market-oriented culture, and successful market leadership. tal thought worlds (Dougherty 1992; Frankwick et al.
In a similar vein, Webster (1997) suggests that “integrated 1994). In addition, whereas prior research has studied
marketing” is characterized by a strong marketing depart- selected domains, there has been little integrative research
ment, intense use of teams and other structural linkages, that considers all five domains simultaneously. Thus, a par-
and a high level of success. The Brand-Focused Profession- ticular contribution of this article is its conceptual breadth.
als cluster confirms these propositions. Overall, the finding We believe that the multidimensional conceptualization is
that three of the five clusters are closely related to previous helpful not only to the study of the M & S interface but also
conceptual typologies supports the validity of the cluster to the study of other intraorganizational interfaces (e.g.,
results. sales and production, marketing and R&D) and even to the
Two of the configurations have not been discussed in study of interorganizational interfaces (e.g., with marketing
the literature before: the Ivory Tower and Sales-Driven alliance partners or with advertising agencies).
Symbiosis clusters. This can be explained in several ways: Third, this article develops a taxonomy that describes
First, we reiterate that the conceptual sources do not claim which archetypical configurations of M & S occur in prac-
to present a complete typology of M & S configurations but tice. The taxonomy reveals significant variation in the roles
rather to contrast the most salient types. Second, conceptual and cooperation of M & S. This finding challenges stereo-
typologies tend to reflect equilibrium states of M & S that types that are often published about M & S. Caution is war-
are stable for some time. In contrast, empirical taxonomies ranted when making general statements about marketing or
also capture intermediate stages of change processes that sales. For example, in some configurations, marketing has
punctuate the equilibrium states (Tushman and Romanelli more product knowledge than sales, whereas the converse
1994). As we discussed previously, the isolated marketing applies to others. The taxonomy confirms three earlier con-
function in the Ivory Tower cluster can be viewed as a tran- ceptual typologies that have been proposed in the literature
sition step of a customer-oriented change process. Third, and identifies two additional configurations.

148 / Journal of Marketing, March 2008


Fourth, this article has ramifications for the sampling interface. The multidimensional model of interfaces invites
frame of future studies on marketing organization. Some managers to look below the visible surface of information
marketing organizations are marketing dominated, as the sharing, structural linkages, and power and to manage such
textbooks suggest, but other so-called marketing organiza- “soft factors” as orientations and knowledge. More specifi-
tions are sales dominated. Researchers should make a con- cally, managers should work through the following ques-
scious choice of the M & S configurations they study. If it tions: How well do their M & S people know the market?
is not possible to develop grand theories about marketing How well do they know the firm’s products? and How
organization that apply to all configurations, it may be pos- customer oriented and how product oriented are their
sible to develop midrange theories (Merton 1968; Pinder M & S people? The most successful cluster manifests par-
and Moore 1979) for some. ticularly high knowledge levels. Through leadership,
Fifth, this study explores the outcomes of M & S con- recruitment, training, and organizational routines, managers
figurations. The exploratory results suggest that Brand- have an impact on this intangible resource. Finally, the
Focused Professionals and Sales-Driven Symbiosis clusters Brand-Focused Professionals cluster, the most successful
are more successful than other configurations. The more configuration, is characterized by a fairly strong marketing
successful clusters are characterized by strong structural function. Thus, the findings challenge the doubts about the
linkages and marketing’s market knowledge. Note also that necessity of a marketing department that are sometimes
in the most successful cluster, the marketing function has a uttered in managerial practice (Lorge 1999).
strong role. This exploratory finding supports prior research
that has emphasized the importance of functional marketing Limitations and Avenues for Further Research
(Moorman and Rust 1999). However, the finding that the As one of the first empirical studies of the M & S interface,
Sales-Driven Symbiosis cluster is more successful than the this research has several limitations that should be over-
Marketing-Driven Devil’s Advocacy cluster in terms of come by future studies. First, further research should con-
cooperation quality and market performance also cautions duct an in-depth analysis of structural linkages and integra-
not to exaggerate academic demands for making marketing tion mechanisms of M & S. This should include analyses of
the lead function. moderating effects—for example, the effect of customer
concentration and other context variables not addressed in
Implications for Managerial Practice this article (Rouziès et al. 2005). The finding that the two
The conceptual and empirical results have important impli- most successful clusters are characterized by intense struc-
cations for managerial practice. First, the taxonomy helps tural linkages underscores that this is an important research
managers understand the specificities of M & S configura- area. Second, further research should assess how strongly
tions in their own company and develop alternative solu- the various interface dimensions discriminate among clus-
tions. We find that five configurations emerge from 14 clus- ters. Third, further research should collect data from multi-
ter variables, which indicates that there are only a few ple respondents rather than from key informants. Fourth,
“stable” and internally consistent configurations. However, further research should assume a longitudinal perspective
the performance of these stable configurations differs. and measure configurations at different points of time.
Brand-Focused Professionals and Sales-Driven Symbiosis Although this study tested whether configurations Granger-
clusters perform better than the rest with respect to out- cause profitability, such a data set could also test whether
comes, suggesting two target configurations for which man- profitability Granger-causes the choice of configuration.
agers should strive. In contrast, the feeble performance of
the other clusters indicates traps that should be avoided.
Second, the two superior types suggest that structural Conclusion
linkages such as teamwork and joint planning should be Although the marketing concept subsumes both M & S
fostered. Managers should also ensure high market knowl- under the marketing organization, we must accept that
edge within marketing. This can be achieved with job rota- M & S frequently are separate functions in managerial prac-
tion policies and joint customer visits of sales and market- tice. The interface between these units has long been
ing and by obliging executives to serve in the front line neglected in the literature. We hope that this research sheds
from time to time. light on the conceptual dimensions and empirical varieties
Third, the conceptualization provides managers with a of this interface and that further research can build on the
systematic way to think through the design of their M & S foundations laid in this article.

Configurations of Marketing and Sales / 149


APPENDIX
Scale Items for Construct Measures
Coefficient Alpha/
Construct Items Composite Reliability
Sales (Versus Please rate who in your business unit/in your company is primarily Formative index
Marketing) Power responsible for the following tasks:
•Formative measure •Communication tasks (e.g., definition of communication activities,
based on Homburg, design of trade fair appearances)
Workman, and •Market research tasks (e.g., analysis of market potential, planning
Krohmer (1999) and execution of a customer satisfaction analysis)
•Five-point differential •Distribution tasks (e.g., customer relationship management,
(anchors: 1 = definition of sales channels)
“predominantly •Service tasks (e.g., definition of product-related services and
marketing’s training offers)
responsibility,” 3 = “joint •Strategic tasks (e.g., definition of a market strategy)
responsibility,” and 5 = •Product-related tasks (e.g., design and introduction of new products)
“predominantly sales’ •Price-related tasks (e.g., definition of price positioning, discounts,
responsibility”) and price promotions)

Customer (Versus The sales (marketing) unit of our business unit/company Marketing: .85/.88
Product) Orientation •Aligns volume and revenue plans primarily by …
•Reflective measure 1 = “products,” and 5 = “customers” Sales: .84/.87
based on Cespedes •Aligns strategy definition primarily by …
(1995) and Lawrence 1 = “products,” and 5 = “customers”
and Lorsch (1969) •Aligns performance evaluations primarily by …
•Five-point semantic 1 = “products,” and 5 = “customers”
differential

Short-Term (Versus The sales (marketing) unit of our business unit/company is Marketing
Long-Term) Orientation characterized by a … .76/.78
•Reflective measure •1 = “systematic/analytical approach,” and 5 = “pragmatic/intuitive
based on Cespedes approach” Sales
(1995) and Lawrence The sales (marketing) unit of our business unit/company has a .73/.77
and Lorsch (1969) planning horizon that is rather …
•Five-point semantic •1 = “long-term,” and 5 = “short-term”
differential

Market Knowledge Please think of a typical employee in marketing (sales) in your Marketing formative
•Formative measure business unit/in your company. How do you assess this employee index
•Five-point scale with respect to:
(anchors: 1 = “low,” and •Knowledge about customers? Sales formative index
5 = “high”) •Knowledge about competitors?

Product Knowledge Please think of a typical employee in marketing (sales) in your Marketing formative
•Formative measure business unit/in your company. How do you assess this employee index
•Five-point scale with respect to:
(anchors: 1 = “low,” and •Knowledge about products? Sales formative index
5 = “high”) •Knowledge about internal processes?

Information Provision People in the sales (marketing) unit of our business unit/company … Marketing
•Reflective measure •Are willing to deal with information request from marketing (sales) .80/.82
based on Jaworski and people.
Kohli (1993) and •Respond promptly and without a reminder to information requests Sales
Moorman (1995) from marketing (sales) people. .81/.83
•Five-point scale •Inform the marketing (sales) unit proactively.
(anchors: 1 = “strongly
disagree,” and 5 =
“strongly agree”)

Formalization To what extent do you agree with the following statements regarding .82/.85
•Reflective measure your business unit/company:
based on Ruekert and
Walker (1987b) In the context of M & S cooperation,
•Five-point scale •We rely on clearly defined coordination processes.
(anchors: 1 = “strongly •Coordination processes are documented in written form.
disagree,” and 5 = •We have invested a lot of time into the development of guidelines.
“strongly agree”) •We stick to guidelines (e.g., to rules of cooperation).

150 / Journal of Marketing, March 2008


APPENDIX
Continued
Coefficient Alpha/
Construct Items Composite Reliability
Joint Planning To what extent do you agree with the following statements: .89/.92
•Reflective measure
based on Piercy (1989) In the course of goal definition and planning of M & S within our
•Five-point scale business unit/company,
(anchors: 1 = “strongly •Employees from both units are involved.
disagree,” and 5 = •Market goals and sales goals are reconciled.
“strongly agree”) •Both units commit to common goals.
•M&S activities are coordinated with respect to the goals pursued.

Teamwork To what extent do you agree with the following statements regarding .90/.93
•Reflective measure your business unit/company:
based on Cespedes
(1996) In the context of M & S cooperation,
•Five-point scale •We plan many market-related activities jointly in teams (e.g., in
(anchors: 1 = “strongly project groups, committees).
disagree,” and 5 = •We take many decisions on market-related activities jointly in
“strongly agree”) teams (e.g., in project groups, committees).
•We carry out many market-related activities jointly in teams (e.g.,
in project groups, committees).
•We solve many market-related problems jointly in teams (e.g., in
project groups, committees).

Quality of Cooperation To what extent do you agree with the following statements: .91/.92
Between M & S
•Reflective measure In our business unit/company, M & S …
based on Ellinger •Collaborate frictionless.
(2000) •Act in concert.
•Five-point scale •Coordinate their market-related activities.
(anchors: 1 = “strongly •Have few problems in their cooperation.
disagree,” and 5 = •Achieve their common goals.
“strongly agree”) •Trust each other.

Market Performance of To what extent has your business unit/your company achieved better .75/.78
Business Unit results than the competition in the following areas:
•Reflective measure •Achieving customer satisfaction and loyalty
based on Homburg •Achieving or maintaining the envisioned market share
and Pflesser (2000) •Gaining new customers
•Five-point scale •Making profits
(anchors: 1 = “much •Fast reaction to opportunities and threats in the market
worse,” 3 = “like,” 5 =
“much more than
competition”)

Internal Dynamism Please indicate how frequently the following aspects change in your .76/.78
•Reflective measure business unit/in your company:
•Five-point scale •Work processes
(anchors: 1 = “very •Evaluation criteria for employees
seldom,” and 5 = “very •Organizational structure
frequently”) •Superiors
•Business strategy

Environmental Please indicate how frequently the following aspects change in the .64/.69
Dynamism market served by your business unit/by your company:
•Reflective measure •Products of the competition
based on Maltz and •Customer needs
Kohli (1996) •Product technology
•Five-point scale
(anchors: 1 = “very
seldom,” and 5 = “very
frequently”)

Configurations of Marketing and Sales / 151


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