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he interface between marketing units and sales units However, caution is warranted when general statements
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.
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 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
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
Power Sales (versus marketing) power 3.30b,c 3.15c 3.73a 2.67d 3.41b
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
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-
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.
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).
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”)