Mindset Differences and Marketing-Sales Integration: A Value Congruence Approach

1. Mindset Differences and Marketing-Sales Integration: A Value Congruence Approach Jun (Jack) Xu, University of Florida University of Houston Doctoral Symposium, April 2006

2. Outline Introduction Theoretical Framework Methodology Q & A

3. Introduction: Marketing-Sales Integration Practical Importance Dialogues Marketing: �We develop good leads at trades shows, but sales doesn�t follow up.� Sale: �Marketing wouldn�t know a qualified lead if it is stripped on one. Marketing is locked in an ivory tower and doesn�t have a clue as to what customers really want� Marketing: �Sales ignores corporate branding and position standard in a rush to close the sales.� Sales: �The one-size-fits-all corporate message doesn�t help to close the order.�

4. Introduction (cont�d) Practical Importance Evidences: 1/3 rated marketing/sales relationship as �average� or �poor� Marketing: 80% of expenditures on lead generation wasted Sales: 40-60 hrs/month taken by recreating, often badly, customer-relevant collateral

5. Introduction (cont�d) Limited Academic Attention Cross-Functional Relationship Research: Mostly Treat Marketing and Sales Synonymously Marketing-R&D: e.g., Griffin & Hauser 1996� Marketing-Manufacturing: e.g., Fisher et al, 1997 � Marketing-Finance: e.g., Srivastava et al., 1998� Marketing-Sales: Conceptual and Anecdotal Conceptual: e.g., Rouzies et al. 2005, Cespedes 1995

6. Introduction (cont�d) Mindset Differences as an Important Impediment Examples: Increasing Customer Awareness: Doing More Advertising vs. Hiring More Salespeople (Schultz 2003) Customer Information Exchange: Tomorrow Information vs. Timely Information (Cespedes 1995)

7. Introduction (cont�d) Mindset Differences as an Important Impediment More Examples: Product vs. Customer Oriented, Analysis vs. personal relationship oriented, process vs. result oriented, long-term vs. short-term oriented (Rouzies et al. 2005) �Farmer� vs. �Hunter� (Schultz 2003) �Thinker� vs. �Doer� (Hardy 1987) Mars vs. Venus (Lorge 1999)

8. Introduction (cont�d) Academic Gaps in Research on Mindset Differences The Nature of Mindset Differences: Contents and Structure Antecedents and Consequences of Mindset Differences Empirical Examination of the Link: Mindset Differences ? Marketing-Sales Integration Antecedents of Mindset Differences

9. Theoretical Framework

10. Theoretical Development (Cont�d) Mindset Definition: Internalized normative beliefs about specific modes of conduct or end-state of existence that is personally or socially preferable to an opposite or converse modes of conduct or end-state of existence (Rokeach 1973; O�Reilly et al. 1991)

11. Theoretical Development (Cont�d) Mindset Differences Assessment Drawing from Value Congruency Literature (Chatman 1989; O�Reilly et al. 1991; Kristof 1996; Cable & Judge 1997) Measure Mindset by Assessing the Underlying Values Held by Marketing and Sales Assess by Comparing Marketing�s Value Profile with that of Sales

12. Theoretical Development (Cont�d) Mindset Differences ? Integration Affective Barrier: Disliking, unattractiveness Similarity-Attraction Theory (e.g., Byrne, 1971, Krauss 1966) Cognitive Barrier: Group Distinctiveness, heightened group boundary, low predictability, poor communication Self-Categorization Theory (e.g., Turner et al., 1987)

13. Theoretical Development (Cont�d) Mindset Differences ? Performance Positive Side: Positive work attitude, less stressful, low turnover, high work performance (marketing share, sales growth, profit growth, turnover, account loss) (Cable & Judge 1996, O�Reilly et al, 1991) Negative Side: Homogeneity in interpretation and market responses, group-thinking (Schneider et al. 2000)

14. Theoretical Development (Cont�d) Organizational Demography ? Mindset Differences Cross-Functional Training, Cross-Functional Experience Upper Echelons Theory (Hambrick & Mason 1984): Cognitive filters and direct interpretation and perception

15. Theoretical Development (Cont�d) Organizational Identification Strategy ? Mindset Differences Intergroup Contact Theory ( Pettigrew, 1998) Decatogorization: Personal relationship (Brewer & Miller 1994) Recategorization: Superordinate identity (Gaetner et al, 1993) Cross-categorization: Job rotation

16. Theoretical Development (Cont�d) Moderation Factors Task Interdependence Joint Reward Goal Congruence Compensatory mechanism (Erdogan & Kraimer 2004)

17. Methodology (Cont�d) Two-Step Testing Step 1: Develop and Pretest Marketing-Sales Value Profile (O�Reilly et al. 1991) Describing the values of marketing and sales Literature review: Academic and practical writings ? identify comprehensive set of values Narrow down initial item pool Four criteria: Generality, Relevancy, Readability, Non-redundancy Example Items: Flexible, Adaptive, Stable, Predictable, Innovative, Analytical, Detail Oriented, Team-Oriented, People-Oriented Pretest the narrowed value profile Online Survey: Marketing and Sales Managers (not necessarily dyadic data)

18. Methodology (Cont�d) Two-Step Testing Step 2: Testing the Conceptual Framework Cross-Sectional Survey Design Dyadic Data (Matched Pair of Senior Marketing and Sales Executives from the Same Company)

19. Methodology (Cont�d) Assessing Mindset Differences Comparing Marketing and Sales Value Profile Squared Difference (D2) , Profile Correlation (O�Reilly et. al 1991, Kristof 1996) Latent Differences (Actual) and Perceived Differences (Kristof 1996)

20. Q & A THANK YOU!