The Role of Sales and Marketing in Market-Oriented Companies

Since little is known about whether both marketing and sales functions pay off in market-oriented companies, this research analyzes the interaction between market orientation and the departmental power of marketing and sales within the firm. Data collected across five industries on the marginal effect of marketing’s departmental power on business performance show that market-oriented companies benefit from a strong marketing function, but a powerful marketing department cannot compensate for low levels of market orientation. Surprisingly, the power of sales impedes successful market orientation implementation. This has important implications for future sales management research. We highlight the significance of these findings for both theory and practice.