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The purpose of this paper is to explore and analyze the differences in organizations that choose to have a sales executive versus a marketing executive on the leadership team.

Our study examined 315 marketing and sales executives across 246 US firms taken from the S & P 1500.

Our findings suggest that the company choice of marketing or sales executive positions is driven by its customer base, branding strategy, investment in product development, and industry. The choice of executive is also associated with its firm valuation and cash flow performance.

Further research might want to examine companies that include both a sales and marketing executive as part of the leadership team and explore industry characteristics and customer base surrounding that decision.

Research has looked at the relationship between the marketing and sales functions but has rarely taken into account the performance of companies that emphasize sales and/or marketing leadership in its executive team. This paper analyzes the differences in organizations that choose among marketing versus sales executives or an executive overseeing the dual sales and marketing function.

In reviewing a spectrum of practice across the 60 member firms of the Institute for the Study of Business Markets, those exhibiting an effective and efficient connection between marketing and sales appear to have three “key linkages” in common: linkages in language, linkages in organization, and linkage in systems. This paper seeks to outline these linkages, and explore how they might be strengthened in business‐to‐business firms.

This is a viewpoint paper, developed by the executive director of the Institute for the Study of Business Markets, after a full day‐and‐a‐half meeting of ISBM member firms discussing marketing and sales linkage, expanded with additional qualitative observations of marketing/sales linkage across a selection of the ISBM membership base of 60 firms.

The study finds that effectiveness of the linkage between marketing and sales requires strong communication. Often one sees marketing and sales professionals talking past one another – they are not aligned on the definition of key terms, concepts, the nature of their practice. Firms which pay attention to training and alignment on language achieve better results. Common definitions of key terms and attention to communications issues are key in developing a more effective linkage between marketing and sales. Organizational approaches which favor “mixing” marketing and sales, joint meetings and contact, joint sales calls, and a reduction of the boundaries between marketing and sales seem to produce more favorable results. Finally, firms that have thought through, mapped, and show artifacts of a “demand generation process” where the role of marketing and sales are clearly defined, and how one feeds the other is charted clearly, appear to get much better results.

A better understanding – and further research – of the dimensionality of the connection between marketing and sales, how marketing/sales linkages work, antecedents and consequences of strong linkages, and other approaches which produce better results are clearly indicated.

The “Three Linkages” approach points to practical and actionable approaches for managers in strengthening the effectiveness of their marketing and sales teams, such as: train the teams together to create agreement and clearer understanding of language; map the demand generation process and work as a team to understand, streamline, and strengthen it better ; pay careful attention to “handoffs”; and avoid siloed structures where marketing and sales only interact occasionally: implement joint selling calls, and organization structures which foster connection.

Although much discussion goes on with regard to marketing and sales effectiveness, the three dimensionalities of language, organization, and process surfaces as an approach to better understanding how the marketing and sales teams may be better aligned to produce stronger business results.

Effective planning and scheduling systems improve performance in every area of a company. Interfunctional communication and understanding must improve planning that involves joint plans, and schedules must be instituted. Sales and marketing are crucial to this process since they are the starting point with their forecasts and customer order demands. Sales and marketing's active participation in planning and scheduling creates a raised performance and a consensus‐based, trusting working relationship with all other functions.

The transition from marketing strategy to selling is seldom smooth. Too often it is left to chance but successful business results depend on effective management of this transition: coherent and consistent policies, and good communications all along the line from marketing executives to field salesmen.

The development of a bank sales management system is described. Using a modified management‐by‐objectives planning procedure, sales goals and strategies were formulated. Then the tasks of the line sales organisation, the branch banking system and the staff sales department were identified. As a result the bank now has a framework for its selling efforts.

The international marketing practices and foreign sales of US manufacturing firms are examined in order to identify those marketing variables which are most closely tied to international sales. Survey results suggest that few firms advertise internationally, although advertising is an important determinant of foreign sales, even if that advertising in non‐English‐speaking markets is in English and regardless of its level of standardisation. Results suggest further that manufacture abroad is a powerful stimulus to foreign sales, which is not matched by the presence of sales offices abroad.

Suggests that frequent review of product sales performance is essential to the planning and control process. Investigates those products which have reached maturity or saturation stage of their product life cycle and reviews these in order to decide on their future product strategy. Evaluates the policy options available to management.

This chapter elaborates on the usefulness of embracing complexity theory, modeling outcomes rather than directionality, and modeling complex rather than simple outcomes in strategic management. Complexity theory includes the tenet that most antecedent conditions are neither sufficient nor necessary for the occurrence of a specific outcome. Identifying a firm by individual antecedents (i.e., noninnovative vs. highly innovative, small vs. large size in sales or number of employees, or serving local vs. international markets) provides shallow information in modeling specific outcomes (e.g., high sales growth or high profitability) – even if directional analyses (e.g., regression analysis, including structural equation modeling) indicate that the independent (main) effects of the individual antecedents relate to outcomes directionally – because firm (case) anomalies almost always occur to main effects. Examples: a number of highly innovative firms have low sales while others have high sales and a number of noninnovative firms have low sales while others have high sales. Breaking-away from the current dominant logic of directionality testing – null hypothesis significance testing (NHST) – to embrace somewhat precise outcome testing (SPOT) is necessary for extracting highly useful information about the causes of anomalies – associations opposite to expected and “statistically significant” main effects. The study of anomalies extends to identifying the occurrences of four-corner strategy outcomes: firms doing well in favorable circumstances, firms doing badly in favorable circumstances, firms doing well in unfavorable circumstances, and firms doing badly in unfavorable circumstances. Models of four-corner strategy outcomes advance strategic management beyond the current dominant logic of directional modeling of single outcomes.

Companies spend millions on training their sales representatives. Thousands of textbooks have been published; thousands of training videos have been recorded. Hundreds of good pieces of advice and tips for sales representatives have been presented along with hundreds of sales methods and techniques. Probably the largest number of indicators and measures are applied in sales and distribution. On the one hand, this is a result of the fact that sales provide revenue and profit to a company; on the other hand, the concept of management by objectives turns out to be most effective in regional sales teams with reference to sales representatives and methods of performance evaluation. As a result, a whole array of indices has been created which enable the evaluation of sales representatives’ work and make it possible to manage goods distribution in a better way.

The indices presented in this chapter are rooted in the consumer market and are applied most often to this type of market (particularly in relation to fast-moving consumer goods at the level of retail trade). Nevertheless, many of them can be used on other markets (services, means of production) and at other trade levels (wholesale).

Although the values of many indices presented herein are usually calculated by market research agencies and delivered to companies in the form of synthetic results, we have placed the emphasis on the ability to determine them independently, both in descriptive and exemplifying terms. We consider it important to understand the genesis of indices and build the ability to interpret them on that basis. What is significant is that the indices can be interpreted differently; the same index may provide a different assessment of a product’s, brand or company’s position in the market depending on the parameters taken into account. Therefore, we strive to show a certain way of thinking rather than give ready-made recipes and cite ‘proven’ principles. Sales and distribution are dynamic phenomena, and limiting them within the framework of ‘one proper’ interpretation would be an intellectual abuse.

Managers engage in marketing efforts to boost sales and in setting marketing budgets based on current or historical sales. Past studies have overlooked the reciprocal relationship between marketing spending and sales. This study aims to examine the nature of the relationship between sales and marketing expenses in the B2B market.

Five hypotheses on the relationship between sales and marketing expenditures were framed. A total of 30 of India’s dyeing firms provided data on revenues, sales (in units) and marketing expenditures over time. The structural vector auto-regressive model and the vector error correction model were fitted to the data.

The results show that marketing expenses and sales are related bidirectionally in a sequential way. Furthermore, sales drive the long-term equilibrium relationship to a greater extent than marketing expenditures.

The findings of this study should assist managers in predicting sales and marketing budgets simultaneously and devising precise marketing strategies and tactics.

Using econometric models in data-driven research is not a frequent practice in marketing. This study adds value to the body of marketing literature by advancing the theory of the relationship between sales and marketing spending using real-world data and econometric models in the B2B sector.