Oxford Handbooks Online: Overview of Strategic Sales and Sales Management

Overview of Strategic Sales and Sales Management
Oxford Handbooks Online

David W. Cravens, Kenneth Le Meunier‐FitzHugh, and Nigel F. Piercy
The Oxford Handbook of Strategic Sales and Sales Management
Edited by David W. Cravens, Kenneth Le Meunier‐FitzHugh, and Nigel F. Piercy
Print Publication Date: Jan 2011

Subject: Business and Management, Organizational Theory and Behaviour, Marketing
Online Publication Date: May 2011 DOI: 10.1093/oxfordhb/9780199569458.003.0001
Abstract and Keywords
This book provides a snapshot of the current thinking on the strategic role of sales and
sales management, and identifies some of the key challenges presented to senior
managers. The importance of a sales organization continues to be critical in creating
value, and profits for organizations. Escalating sales and selling costs require
organizations to be more focused on results and highlight the shifting of resources from
marketing to sales, and the growth in customer power now requires a strategic, not a
tactical response. This book provides an unrivalled collection of articles by the leading
academics in the field of sales and marketing management. Sales is experiencing a
renaissance driven by a number of factors including building profitable relationships,
creating/delivering value, strategic customer management, sales and marketing
relationships, global selling, and the change from transactional to customer relationship
selling.
Keywords: sales, sales management, strategic customer management, marketing relationships, global selling
1.1 Introduction
The Oxford Handbook of Strategic Sales and Sales Management is a compendium of
chapters by prominent academics addressing some of the most important issues in the
field of sales management and sales strategy. It is produced in four parts. The
contributors are practicing academics, mostly currently researching in the area in which
they have written their chapters for the Handbook. The book is part of an important
series of Handbooks that Oxford University Press is developing across the social sciences
and humanities, including several in business and management. These Handbooks
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address key topics in their field and identify the evolution of debates and research on
these topics. However, this is the first time that the Handbook series has addressed any
marketing issues, and beginning with the (p. 2) critical element of sales and sales
practices is appropriate, as one of the earliest business texts to gain popular appeal was
on sales, Dale Carnegie's How to Win Friends and Influence People (1936).
The Oxford Handbook of Strategic Sales and Sales Management is targeted at academics,
researchers, and graduate students, for whom it should be a useful resource, sitting
between the specialist journal article or monograph and the extensive range of
established textbooks in the field. It is intended to provide the graduate student,
researcher, or lecturer with a well‐informed and authoritative guide to the subject and to
the current debates taking place in the field of sales management, and is a blend of
mature thinking and cutting‐edge speculation. Teachers of sales management and
strategy will find much of the traditional material for their presentations contained in the
Handbook, as well as illustrations of how to introduce the newer issues of debate in their
teaching.
Operating in the very competitive and rapidly changing global business environment
requires creating and delivering superior customer value. Many companies are pursuing
strategic transformations to compete effectively in a challenging business environment.
The success of these efforts is likely to require significant transformations within a firm's
sales organization. Important changes may include (Piercy and Lane 2005):
• involvement in strategic decision making at the corporate and business strategy

levels;
• market sensing and analysis;
• building cross‐functional collaborative relationships;
• serving as the customer's advocate inside the organization.
Sales organizations need to strategically align their operations with the firm's business
and marketing strategies to create a more customer‐focused sales organization (Sheth
and Sharma 2008). The number of people in sales and sales‐related jobs totaled over 16
million in the United States in 2008, according to the U.S. Bureau of Labor Statistics
estimates. Global sales jobs totals are far greater. The numbers of staff and the
expenditure involved in the sales function highlight its importance and priority in the
organization.
The Handbook of Strategic Sales and Sales Management provides an in‐depth

examination of sales organization strategy, sales management processes, the sales force
and the customer, and organizational relationships. The interrelationships of these topics
are shown in Figure 1.1. The various chapters offer an important state‐of‐the‐art
perspective concerning sales management and sales strategy. The chapter authors are
recognized experts on the various topics in the Handbook. A brief overview of the
chapters in each of the four parts follows.
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(p. 3)
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1.1. Sales Strategy and Management Processes
1.2 Sales Strategy and Environment

Sales force strategy “consists of a set of strategic decisions that determine to whom the
sales force will sell and the role of the sales force in creating customer value which is
consistent with the overall strategy of the firm and/or business unit” (Cron and Cravens
2010: 21). Importantly, sales force strategy is linked to business units and marketing
strategies in an interconnected set of relationships. In this section we overview several
important aspects of sales force strategy which are examined in Part I of the Handbook.
Also considered are the dynamic sales environment and a global perspective concerning
selling and sales management.
1.2.1 The Evolution of the Strategic Sales Organization
An important change which has occurred during the last decade in many sales
organizations is a shift away from a tactical focus to a strategic emphasis. Chapter 2
examines these imperatives and their implications. Nigel F. Piercy and Nikala Lane
detail how sales organizations are becoming more involved in business and marketing
strategies, and conclude that the emergence of the strategic sales organization can be
explained by several factors: changing customer relationship requirements; the changing
sales task; and, the importance of strategic sales capabilities to cope with complexity,
growing customer sophistication, commoditization pressures, and the need for radically
different selling approaches. The characteristics of the strategic sales organization are
discussed in terms of the factors significant in developing a new sales domain and those
exercising a broader shaping influence on how a strategic sales organization will
function. The bottom line is that sales organizations are changing rapidly, and
transformations are expected to continue in the future. Strategic transformation impacts
salespeople (p. 4) and managers, requiring training and career development initiatives to
meet new role expectations. These new challenges will require considerable thought
about the capabilities and competencies required by sales executives.
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1.2.2 Strategic Leadership in Sales
Chapter 3 examines the important relationship between the role of the salesperson and
the role of sales managers. Karen Flaherty considers how these roles vary across
organizations, noting a distinct trend toward the salesperson's role including involvement
in shaping strategy. The result is that the salesperson's job has changed to meet new role
expectations. Salesperson strategic roles can be characterized as competence
deployment, competence modification, and competence definition. These roles call for
different capabilities and perspectives concerning the sales force. Successful strategic
sales leadership requires the utilization of management perspectives and processes that
correspond best with the current environment, required salesperson roles, and the
strategic direction of the organization. An integrative framework for sales leadership is
proposed. Matching the salesperson's role in the sales organization with the appropriate
leadership approach is critically important in delivering superior customer value and
organizational performance. The framework examines three alternative leadership
modes: command, coach, and sponsor.
1.2.3 Achieving Sales Organization Effectiveness
David W. Cravens writes with considerable authority on the sales organization and how
sales is an important contributor to achieving business and marketing objectives. The
organization's effectiveness can be measured based on sales, market position, customer
satisfaction, and profits, relative to competition and internal objectives. Effectiveness is a
summary assessment of the sales organization's outcomes, and may be determined for
the entire organization or for smaller units such as regions and districts. Sales unit
effectiveness is a composite assessment of the unit's performance. Importantly,
effectiveness and salesperson performance are different although closely related
constructs. The salesperson contributes to unit effectiveness along with other
determinants including the sales manager, business competencies, and the market and
competitive environment (Walker, Churchill, and Ford 1979).
In Chapter 4, a conceptual framework for analysis and decision‐making concerning sales

organization effectiveness is proposed and examined. Important determinants of
effectiveness are discussed including sales management control, salesperson
performance, and sales unit design. Sales management is a core (p. 5) determinant of
effectiveness, including management processes, design of the organization, and manager
performance. Each salesperson also contributes to effectiveness. Also considered are
research findings concerning sales personnel gender.
1.2.4 The Changing Sales Environment
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Nick Lee reviews the rapidly changing business environment, and highlights it as an
important and challenging influence on sales organizations. Chapter 5 examines the
dynamic environment impacting the sales organization. A core characteristic of the
changing sales environment is its complexity. Dimensions of the environment include
globalization, changes in channel delivery and information provision, customer co‐
production and de‐massification of the marketplace, hyper‐competition and buyer
concentration, sales force automation, customer expectations, ethics expectations, and
increased emphasis on wellbeing in the workplace. Each of these environmental forces
interacts with the others, significantly compounding analysis of the effects on the sales
organization.
A number of key changes in the contemporary business and social environment are
examined and their implications regarding sales and sales management research and
practice are discussed. A relevant and recognized implication is a move toward a more
relationship‐oriented focus for the sales force. Psychological levels of analysis are
considered from the perspective of the individual salesperson or sales manager, possible
dyads, teams, and stakeholder or wider society. An interesting perspective is developed
regarding the potential for biological and neuroscientific insights into sales force
performance and behavior.
1.3 Sales Management

In this section we overview several relevant sales management topics that are discussed
in Part II of the Handbook. Sales management has changed out of all recognition over the
past twenty years, partly due to the increasing competition and spiraling costs of running
a sales team, but also due to rapid development of communication technologies that could
not be envisaged twenty years ago. Therefore, a review of up‐to‐date techniques and
developments is timely. The chapters examine sales organization designs, sales force
market sensing, contracted sales forces, salesperson motivation and training, job stress,
and sales force size and effort allocation.
1.3.1 Structuring the Sales Force for Customer and Company

(p. 6)
Success
Structure follows strategy, according to Andris A. Zoltners, Prabhakant Sinha, and

Sally E. Lorimer. Chapter 6 provides a complete analysis of organizing the sales force
for customer and company success. A framework is developed to guide the design and
management of the sales organization that is consistent with company strategy and
drives results. The sales force's requirements for generalists and/or specialists are guided
by the firm's product offerings, markets served, and selling activities.
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Sales force structure decisions impact customer and company results by directly
influencing salespeople and their activities. Developing an effective sales force
organization design requires:
• determining the mix of generalists and product, market, or activity specialists that
creates the right balance of sales force effectiveness and efficiency;
• designing reporting relationships for salespeople and managers that enable
coordination and control of sales activities and processes;
• pursuing initiatives such as training, incentives, coaching, performance
management, and information support to reduce stress and encourage the
accomplishment of business objectives.
Sales force structures need to change as business needs evolve. Directing careful
attention to implementation helps ensure that sales force structure alterations are well
received by customers, salespeople, and managers.
1.3.2 Sales Force‐Generated Marketing Intelligence
Challenges abound for management to obtain the desired type, frequency, and quality of
market information from the organization's sales force. In Chapter 7 Kenneth R. Evans
and C. Fred Miao look at the role of the sales force in the marketing information system
(MIS). Sales force‐generated marketing intelligence is guided by important antecedents
which are categorized according to factors associated with the firm and the individual
level. Antecedents at the firm level include organizational culture, sales force control
philosophy, training, job descriptions, compensation, and rewards. Relevant personal‐
level antecedents consist of role conflict and role ambiguity.
Key dimensions of sales force intelligence are new product planning and development,
sales forecasting, competitive strategy, pricing strategy, and territorial customer
knowledge. The challenge is to integrate the sales force into the MIS. Information
generated by the sales force must be captured and disseminated across functional
boundaries. The MIS contributes to important sales force strategic options such as
customer relationship management. The process of obtaining the (p. 7) desired type,
frequency, and quality of market information from the field sales force is an important
management responsibility.
1.3.3 Management of a Contracted Sales Force
Outsourcing all or part of a firm's sales function is a critical strategic decision. In Chapter
8, Thomas E. DeCarlo examines the advantages and disadvantages of using
manufacturer's representatives, and develops a framework for managing and
compensating independent agents. Strategic decisions concerning whether the selling
function should be performed using a company sales force, an outsourced partner, or
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some combination of the two will have an important impact on a firm's competitive
advantage. Commission‐compensated representatives do not take title of the product, do
not set prices, usually do not handle merchandise, and do not sell competing products.
However, they typically sell non‐competing products.
Several factors affect the decision to outsource the sales force, including the feasibility of
building commitment with the independent representative, market coverage efficiencies,
and selling effectiveness. Several advantages are offered including stability of the rep,
market (customer) focused agility, portfolio selling capabilities, and risk reduction.
Certain challenges are involved in managing the relationship. A different set of
management competencies is required compared to a conventional in‐house sales force.
Motivating and compensating representatives are important management responsibilities
for the principals.
1.3.4 Training and Rewards
Mark W. Johnston provides a critical review of two of the most important

responsibilities of the sales manager: providing the programs and support for salespeople
to improve critical skills, and creating a reward platform that motivates salespeople and
encourages success, while offering financial security. Creating effective training
programs and a reward system for salespeople are demanding responsibilities facing
every sales manager. Companies spend billions on training every year. More than a few
sales managers and human resource professionals find it difficult to identify the long‐
term benefits of the training. Moreover, the question of reward systems is faced by every
sales manager as she/he wrestles with individual circumstances, limited budgets,
competitive pressure, and customer concerns.
Training and reward initiatives are complicated when salespeople are geographically
deployed. In Chapter 9 a plan is presented for developing and assessing successful
training programs. The discussion includes the importance of setting objectives,
developing programs that actually add value to the sales force, and creating relevant and
useful success metrics. A winning reward strategy is defined, (p. 8) and a process is
developed to create an action plan for implementing the strategy. Sales managers need to
balance the effectiveness of individual reward systems with the efficiency of “one size fits
all”.
1.3.5 Addressing Job Stress in the Sales Force
The importance of job stress in the sales force is considered by Thomas N. Ingram,
Raymond W. (Buddy) LaForge, and Charles H. Schwepker, Jr. to be an important
management concern in many sales organizations. The complex business environment
faces salespeople with escalating demands and expectations. There is continuous
pressure to perform in the sales forces of most organizations. Stress is further
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compounded as salespeople regularly face non‐routine situations, and often must work
without the support that comes with supervision on a daily basis. The objective of
Chapter 10 is to examine the antecedents and consequences of job stress and to consider
initiatives for reducing job stress among salespeople. While eliminating job stress in most
sales organizations may be unfeasible, impractical, or even undesirable, the major
negative effects of job stress require management initiatives to gain a reasonable level of
control over salespeople's job stress
A framework of salesperson job stress is developed including antecedents, role stressors,

and consequences. Role conflict, role ambiguity, and role overload are proposed as the
key dimensions of salesperson job stress. Role conflict occurs when salespeople face
competing (and sometimes conflicting) demands from role partners such as customers
and employers. Role ambiguity occurs when salespeople are not certain about actions
they should take. Role overload is the perception that role demands are overwhelming
relative to available resources (Brown, Jones, & Leigh 2005).
1.3.6 Sizing the Sales Force and Designing Sales Territories for
Results
The second chapter written by Andris A. Zoltners, Prabhakant Sinha, and Sally E.
Lorimer provides a contemporary review of how many salespeople are needed in the
sales force and how the allocation of their efforts across the customer base have a
significant impact on each salesperson, their customers, and the company results. Too
many or too few salespeople will lead to negative consequences. Importantly, using
commonsense affordability‐based decision rules typically does not result in sound size
and effort allocation decisions. In Chapter 11, a market‐based decision process for size
and allocation decisions is proposed and applied. Determining the appropriate
relationship between sales force size and customer and product coverage is a major
determinant of the productivity of the sales organization.
Five quick tests are discussed for use in assessing the correct size of the sales
(p. 9)
force. A synthesis of the results provides a basis for making a final sizing assessment. A
break‐even test is used to determine whether a sales force is too large, too small, or
about right. Importantly, a sales force that is the right size must also have sales
territories that are designed to match sales effort with market opportunity. Salesperson
efforts must be allocated to customer needs, and territories formed that balance workload
across territories. Unfortunately, territory design often receives inadequate attention
from management. Structured processes and methods are discussed to guide sales
territory design decisions.
1.4 The Sales Force and the Customer

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In Part III of the Handbook we discuss several customer‐related topics. Customers,

whether business‐to‐business or end users, are becoming more discerning and are
demanding more from their suppliers. The sales force is an invaluable intermediary
between the organization and this group. These chapters examine some of the more
challenging aspects of the role of sales, including customer selection, customer
relationship management, organizational climate in sales force research, buyer decision‐
making, and sales technology.
1.4.1 Customer Selection to Acquire, Retain, and Grow
Identifying the right customers to acquire, retain, and grow is a demanding management
task which has escalated in complexity over the last decade. In Chapter 12, Andrea L.
Dixon synthesizes current knowledge in the area of customer management, and
encourages the organization to be proactive in this essential role, which is an important
contributor to business success. Addressed is the necessary task of how the organization
should identify the right customers from the existing customer base.
The available metrics used for customer analysis and decision‐making are reviewed, and
the relevant measurement issues associated with the composite profitability measure,
customer lifetime value (CLV), are examined. CLV can contribute important insights in
selecting the right customers to include in the organization's portfolio. The process of
identifying and developing the right customers is examined in depth. The need to
sometimes terminate a relationship is also explored and evaluated. Customer portfolio
analysis is discussed extensively. Significant value is gained from systematic customer
assessment for acquiring, (p. 10) growing, and retaining the best mix of customers to
generate the strongest return on investment. The process of managing the customer
portfolio guides the firm in directing the right marketing efforts to the most appropriate
marketing strategies.
1.4.2 Customer Relationship Management and the Sales Force
Customer relationship management (CRM) is reviewed by Thomas W. Leigh. Increasing

the value of the firm's customer base by developing and managing better relationships
with customers is an essential management function. Chapter 13 examines the role of the
direct sales force as a core enterprise strategy and capability relative to the
organization's CRM system. The CRM models implied by product leadership, cost
leadership, and customer intimacy strategies are discussed. These CRM models provide a
basis for defining the role of the sales force compared to alternative go‐to‐market
channels in accessing and relating to customers.
A customer relationship framework is presented for positioning the sales force relative to
CRM strategy and practices. The role of the sales force is examined for four customer
archetypes: transactional, solution selling, relationship selling, and strategic partnerships
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(Wotruba 1991). Market‐driven companies are likely to be more competent in

organizational learning about markets and customers compared to internally‐oriented
competitors. In examining this issue, the role of the direct sales force is discussed
concerning four specific CRM processes: market sensing, customer sensing, customer
linking, and cross‐functional spanning. A core set of CRM capabilities and processes are
identified. Importantly, shifting from transactional to relational buyer–seller involves
complex changes in salesperson and organizational strategies.
1.4.3 The Use of Organizational Climate in Sales Force Research
Steven P. Brown, Manoshi Samaraweera, and William Zhan examine how achieving
competitive advantage with a superior sales force involves doing many things well.
Applying formal and informal control mechanisms, salespeople's efforts need to be
directed toward the most productive activities to gain and maintain productive customer
relationships. Chapter 14 considers informal control mechanisms based on organizational
climate as a means of guiding salespeople's efforts toward organizational priorities. The
relationship is examined between formal control systems and the informal control
function inherent in the organizational climate. Building on the work of Schneider (1990,
2000), to be useful, organizational climate must be strategically focused and serve a
directive function in the allocation of effort toward organizational goals.
Two aspects of organizational climate are particularly relevant in sales force

(p. 11)
contexts: climate for service and sales climate. The former is well established in the
literature, whereas the latter is a construct developed in this chapter. Prior research has
been focused on a single aspect of organizational climate (e.g. climate for service, climate
for safety, climate for diversity). No research has considered the interrelationships
between multiple aspects of climate or their individual and joint effects on disparate
performance criteria. Given the need to perform well on multiple dimensions, it is
important to understand how supportive control elements can be developed to foster
multi‐dimensional performance effectiveness.
1.4.4 Salespeople's Influence an Consumers' and Business Buyers'

Goals and Wellbeing
It has been considered important to help salespeople acquire a clearer understanding of

their customer's perceptions and views. However, research in social cognitive psychology
suggests that behavior is only sometimes tactically motivated; instead, customers may be
unaware of their own goals until they have acted. In Chapter 15, Harish Sujan evaluates
the influence of persuasion tactics, separating out buyer behavior that is driven by
conscious and non‐conscious goals. Research relating to the explicit goals customers
pursue is reviewed. Long‐term and short‐term goals are separated.
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Important theoretical distinctions alluded to in motivational psychology are discussed.

Theories that are examined include those relating to learning goals, implementation
versus deliberation mindsets, action identification, goal shielding, and prevention versus
promotion focus. This discussion is contrasted with the understanding that currently
exists for when consumers learn of their goals from their actions. Some of the questions
raised are: do customers' actions based on non‐conscious goals occur more in familiar
rather than unfamiliar situations; with simple rather than complex behaviors; with
difficult, negative choices rather than with simpler or positive choices; or with goals that
go against a social norm and so need to be suppressed, rather than socially acceptable
goals?
1.4.5 Sales Technology
Gary K. Hunter views sales technology as an umbrella term which includes

interrelationships among sales strategy, sales processes, salespeople, and information
technology. Sales technology includes sales aspects of customer relationship management
(CRM) and sales force automation (SFA) applications. Sales technology management
involves much more than purchasing state‐of‐the‐art innovations and installing them on
salespeople's laptops. Increasingly, companies are developing sales technology
departments which perform various functions for (p. 12) the sales organization. The sales
technology portfolio includes all information technologies involved in implementing,
evaluating, and controlling the organization's selling effort. The array of capabilities
includes laptops, cellphones, PDA devices, word processing, spreadsheet, graphics, and
database applications. Sales technology involves far more than automating tasks.
Managers face challenging decisions as to how best to use technology to improve the
efficiency and effectiveness of their sales efforts. Sales managers need to customize their
sales technology portfolios. Important factors associated with sales technology and its
interrelationships with sales strategy, sales processes, and salespeople involving a range
of sales contexts are discussed. Equipping, training, supporting, and motivating
salespeople to adopt sales technology are examined in depth. Relationships between sales
technology and performance for different types of use are considered. Finally, sales
technology, productivity, and performance relationships are discussed.
1.5 The Organization and Sales Relationships

The last section of the Handbook examines the sales organization's relationships with
other functions and the business. The sales organization is increasingly involved in
strategy development and implementation with various components of the business. The
chapters consider organizational commitment to sales; the strategic role of the sales
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organization; sales force agility, strategic thinking, and value propositions; marketing and
sales relationships; and total integrated marketing.
1.5.1 Organizational Commitment to Sales
The sales force plays an important role in delivering superior value to customers, and the
company has an important responsibility in addressing the changing needs of the market
through organizational integration and transformation processes relative to sales
activities. Important macro‐trends impact organizational commitment to sales. Chapter
17, by Wesley J. Johnston and Linda D. Peters, examines organizational commitment
to sales. The central role of marketing in enhancing organizational capabilities within
business networks is first discussed. Marketing is a translator of value to and from the
marketplace, linking the externalization of competitive advantage in the marketplace with
value to the organization. The intent is the creation of value for the organization and the
customer.
Important macro‐trends are impacting organizational commitment to sales,

(p. 13)
changing the role of the sales function in the co‐creation of value with customers. How
the sales function may operate as a partner in value co‐creation is discussed, and the role
of the customer in this process is examined. Value needs to be defined by the customer.
The sales organization also plays an important role in facilitating innovation and a
learning organization. A perspective emerges which defines the commitment of both
marketing and sales to building core competencies and positioning them as value
propositions which create competitive advantage for the organization.
1.5.2 The Strategic Role of the Selling Function
There is growing agreement among sales force authorities that the strategic importance
of the sales force may have reached an all‐time high. Thomas W. Leigh, William L.
Cron, Artur Baldauf, and Samuel Grossenbacher provide an insight into current
thinking. There is strong support by scholars for the need to address the strategic role of
the sales function as a resource which drives competitive advantage and organizational
performance. The objective of Chapter 18 is to examine the strategic role of the selling
function based on the resource‐based view (RBV) perspective on the firm. The RBV
provides a relevant foundation for developing a conceptual framework on the strategic
role of the selling function. This approach is based on the logic that distinctions in
resources and organizations' capabilities may offer potential competitive advantages that
are linked to variations in returns.
The strategic sales function framework proposes a direct effect of sales organization
resources and capabilities on sustainable competitive advantage (SCA) and an indirect
effect through the mediation of SCA on the financial performance of the firm. Dynamic
meta‐capabilities and organizing processes and contexts are proposed as moderating
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influences on the core processes. The intent of the framework is to extend the current
perspective concerning the strategic role of the sales force. The framework identifies
relevant variables and interrelationships.
1.5.3 Sales Force Agility, Strategic Thinking, and Value Propositions
Agility involves being flexible and quick to respond, ready to consider and make changes
in value propositions offered to customers. Agility requires salespeople to be willing to
respond to new evidence and to initiate change based on new or anticipated marketplace
developments. In Chapter 19, Larry B. Chonko and Eli Jones observe that customers
are exposed to far more information, other buyer (p. 14) behaviors, and ideas than in the
past. Accordingly, organizations and their salespeople continuously experience the
compelling need for change, and often find it necessary to respond and change rapidly or
risk the loss of sales and perhaps more. Following an unchanged long‐term strategy may
result in a form of inertia when experiencing marketplace disruptions, either for the
entire business or with individual customers.
Conflicts may develop when a salesperson reaches an understanding of the strategic

relationship with the customer, and then the ideas offered to the customer may be viewed
as obsolete by the customer, on the basis of modified needs, wants, and preferences
driven by real‐time marketplace information. This chapter develops a conceptual
framework which proposes how agile salespeople should make decisions and act on value
propositions offered in sales encounters. The framework provides a process on how
salespeople can couple the skills of thinking strategically with those of acting with agility.
Salespeople need to be always willing to examine new evidence, and to make changes
based on new developments which are occurring or anticipated.
1.5.4 The Importance of Effective Working Relationships between

Sales and Marketing
Firms are typically composed of functionally specialized departments such as Finance,

Manufacturing, R&D, Sales, and Marketing. These departments are often highly
interdependent, and a key role of their managers is to forge effective ongoing “cross‐
functional relationships” (CFRs) with other managers. One of the most important of these
CFRs, according to Kenneth Le Meunier‐FitzHugh and Graham W. Massey, is the
sales–marketing CFR. Managers of sales and marketing departments are expected to
work together to deliver value to customers, yet they often operate as functional silos
with different cultures, objectives, and values. Chapter 20 examines “The Importance of
Effective Working Relationships between Sales and Marketing”. It provides a framework
for analysis and discussion concerning this important organizational relationship.
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The chapter reviews current thinking on sales–marketing cross‐functional relationships,

identifies gaps in academic literature, and discusses a range of controllable and
uncontrollable factors that may influence this interface. Many organizations are unsure
how to manage the sales–marketing cross‐functional relationship. The few empirical
studies published to date examine the contextual conditions under which such
relationships are enacted, e.g. the level of functional interdependence, power relations,
and cultural differences. The main types of variable that influence the effectiveness of
such relationships are discussed. These include organizational structure variables, the
types of interaction and communication prevalent in the cross‐functional relationship, and
key variables such as interpersonal trust.
(p. 15) 1.5.5 Marketing. The Anchor for Sales
Noel Capon, one of the most respected academic writers in marketing, argues that a
carefully formulated market‐focused strategy will be ineffective unless the sales force
executes it well. A hard‐working, highly motivated sales force will not achieve its
potential unless guided by a marketing strategy well tuned to environmental realities.
Marketing is the architect and the sales force is the builder; their activities are closely
linked and interdependent. Chapter 21 identifies and determines how to access the
market and other relevant environments, and how to develop a strategy to succeed in the
market. In addition to strategy implementation with customers, the sales organization
must closely monitor marketing plans and actions to ensure that marketing is following a
promising avenue.
Six marketing imperatives—the tasks that marketing must accomplish—and four

marketing principles that act as guidelines for making marketing decisions are identified
and examined. The market strategy is a key output from marketing's efforts, and the sales
strategy must implement the market strategy. Accordingly, the sales force must
understand how the firm develops a market strategy so that sales can creatively work
within that framework to design and implement an effective sales strategy. Sales
managers must know what marketing is trying to accomplish, since they have an
important role in helping marketing to be successful. Moreover, successful marketing
helps the sales force succeed. The chapter provides a comprehensive examination of what
every sales manager needs to know about marketing.
1.6 Summary
The Oxford Handbook of Strategic Sales and Sales Management provides a snapshot of
the current thinking on the strategic role of sales and sales management, and identifies
some the key challenges presented to senior managers. The importance of a sales
organization continues to be critical in creating value, and profits for organizations.
Page 14 of 17

Escalating sales and selling costs require organizations to be more focused on results and
highlight the shifting of resources from marketing to sales, and the growth in customer
power now requires a strategic, not a tactical response.
The Oxford Handbook of Strategic Sales and Sales Management provides an unrivalled
collection of articles by the leading academics in the field of sales and marketing
management. Sales is experiencing a renaissance driven by a number of factors including
building profitable relationships, creating/delivering value, strategic customer
management, sales and marketing relationships, global selling, and the change from
transactional to customer relationship selling. The role of sales in the delivery of strategic
goals has never been more essential. We hope that you enjoy using the Handbook and
find it to be a valuable resource.
References
BROWN, S. P., E. JONES, and T. W. LEIGH (2005). “The Attenuating Effect of Role
Overload on Relationships Linking Self‐Efficacy and Goal Level to Work Performance,”
Journal of Applied Psychology 90.5, 972–9.
CARNEGIE, D. (1936). How to Win Friends and Influence People. New York: Simon &
Schuster.
CRON, W. L., and D. W. CRAVENS (forthcoming). “Sales Force Strategy,” in J. Sheth and
N. K. Malhotra (eds.), Wiley International Encyclopedia of Marketing, Chichester, UK:
Wiley.
PIERCY, N. F., and N. LANE (2005). “Strategic Imperatives for Transformation of the
Sales Organization,” Journal of Change Management 5, 249–66.
SCHNEIDER, B. (1990). “The Climate for Service: An Application of the Climate

Construct,” in B. Schneider (ed.), Organizational Climate and Culture, San Francisco:
Jossey‐Bass, 383–412.
—— (2000). “The Psychological Life of Organizations,” in N. M. Ashkanasy, C. P. M.

Wilderom, and M. F. Peterson (eds.), Handbook of Organizational Culture and Climate,
Newbury Park, CA: Sage, xvii–xxii.
SHETH, J. N., and A. SHARMA (2008). “The Impact of the Product to Service Shift in
Industrial Markets and the Evolution of the Sales Organization,” Industrial Marketing
Management 37.3, 260–69.
WALKER, O. C., G. A. CHURCHILL, and N. M. FORD (1979). “Where Do We Go From

Here? Selected Conceptual and Empirical Issues Concerning the Motivation and
Performance of the Industrial Salesforce,” in G. Albaum and G. A. Churchill (eds.), Critical
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Issues in Sales Management: State‐of‐the‐Art and Future Research Needs, Eugene:

University of Oregon, 10–75.
WOTRUBA, T. R. (1991). “The Evolution of Personal Selling,” Journal of Personal Selling

& Sales Management 11.3, 1–12.
David W. Cravens
David W. Cravens is Emeritus Professor of Marketing in the Neeley School of

Business at Texas Christian University. He previously held the Eunice and James L.
West Chair of American Enterprise Studies and was Professor of Marketing.
Formerly, he was the Alcoa Foundation Professor at the University of Tennessee,
where he chaired the Department of Marketing and Transportation and the
Management Science Program. He has a Doctorate in Business Administration and
MBA from Indiana University. He holds a Bachelor of Science in Engineering from
MIT. Before becoming an educator Dave held various industry and government
management positions. He is internationally recognized for his research on
marketing strategy and sales management and has contributed over 150 articles and
25 books.
Kenneth Le Meunier‐FitzHugh
Kenneth Le Meunier-FitzHugh is a Lecturer in Marketing at the University of East

Anglia UK and obtained a PhD in Marketing and Strategic Management from
Warwick Business School, The University of Warwick. Prior to undertaking an
academic career, he spent 20 years working in sales and marketing at senior levels
for a range of organizations. His research interests focus on exploring the interface
between sales and marketing. He has a number of publications in academic journals
and won the Marvin Jolson award for the best contribution to sales management
practice by the Journal of Personal Selling and Sales Management 2008.
Nigel F. Piercy
Nigel F. Piercy is Professor of Marketing & Strategy and Associate Dean at Warwick
Business School, The University of Warwick, UK. Hw worked earlier of business and
in his academic career has published articles in such journal of the Journal of
Marketing, the Journal of the Academy of Marketing Science, the Journal of World
Business, and the Journal of Personal Selling & Sales Management. His most recent
books are: Market-Led Strategic Change: Transforming the Process of Going to
Market, 4th ed. (Oxford: Butterworth-Heinemann, 2009) and with Nikala Lane,
Strategic Customer Management: Strategizing the Sales Organization (OUP, 2009).
He is also co-author to David Cravens of Strategic Marketing, 9th ed. (Irwin/
McGraw-Hill, 2009).
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Overview of Strategic Sales and Sales Management

Oxford Handbooks Online

Print Publication Date: Jan 2011

Abstract and Keywords

Subscriber: University of South Dakota; date: 22 July 2018

• involvement in strategic decision making at the corporate and business strategy

The Handbook of Strategic Sales and Sales Management provides an in‐depth

Subscriber: University of South Dakota; date: 22 July 2018

Click to view larger

1.2 Sales Strategy and Environment

1.2.1 The Evolution of the Strategic Sales Organization

Subscriber: University of South Dakota; date: 22 July 2018

1.2.2 Strategic Leadership in Sales

1.2.3 Achieving Sales Organization Effectiveness

In Chapter 4, a conceptual framework for analysis and decision‐making concerning sales

1.2.4 The Changing Sales Environment

Subscriber: University of South Dakota; date: 22 July 2018

1.3 Sales Management

1.3.1 Structuring the Sales Force for Customer and Company

Structure follows strategy, according to Andris A. Zoltners, Prabhakant Sinha, and

Subscriber: University of South Dakota; date: 22 July 2018

1.3.2 Sales Force‐Generated Marketing Intelligence

1.3.3 Management of a Contracted Sales Force

Subscriber: University of South Dakota; date: 22 July 2018

1.3.4 Training and Rewards

Mark W. Johnston provides a critical review of two of the most important

1.3.5 Addressing Job Stress in the Sales Force

Subscriber: University of South Dakota; date: 22 July 2018

A framework of salesperson job stress is developed including antecedents, role stressors,

1.4 The Sales Force and the Customer

Subscriber: University of South Dakota; date: 22 July 2018

In Part III of the Handbook we discuss several customer‐related topics. Customers,

1.4.1 Customer Selection to Acquire, Retain, and Grow

1.4.2 Customer Relationship Management and the Sales Force

Customer relationship management (CRM) is reviewed by Thomas W. Leigh. Increasing

Subscriber: University of South Dakota; date: 22 July 2018

(Wotruba 1991). Market‐driven companies are likely to be more competent in

1.4.3 The Use of Organizational Climate in Sales Force Research

Two aspects of organizational climate are particularly relevant in sales force

1.4.4 Salespeople's Influence an Consumers' and Business Buyers'

It has been considered important to help salespeople acquire a clearer understanding of

Subscriber: University of South Dakota; date: 22 July 2018

Important theoretical distinctions alluded to in motivational psychology are discussed.

1.4.5 Sales Technology

Gary K. Hunter views sales technology as an umbrella term which includes

1.5 The Organization and Sales Relationships

Subscriber: University of South Dakota; date: 22 July 2018

1.5.1 Organizational Commitment to Sales

Important macro‐trends are impacting organizational commitment to sales,

1.5.2 The Strategic Role of the Selling Function

Subscriber: University of South Dakota; date: 22 July 2018

1.5.3 Sales Force Agility, Strategic Thinking, and Value Propositions

Conflicts may develop when a salesperson reaches an understanding of the strategic

1.5.4 The Importance of Effective Working Relationships between

Firms are typically composed of functionally specialized departments such as Finance,

Subscriber: University of South Dakota; date: 22 July 2018

The chapter reviews current thinking on sales–marketing cross‐functional relationships,

(p. 15) 1.5.5 Marketing. The Anchor for Sales

Six marketing imperatives—the tasks that marketing must accomplish—and four