Journal of Marketing Research
Vol. XLIII (November 2006), 564–579 564
© 2006, American Marketing Association
ISSN: 0022-2437 (print), 1547-7193 (electronic)
*Timothy M. Smith is Associate Professor of Corporate Environmental
Management and Adjunct Professor of Marketing/Logistics Management,
Carlson School of Management, University of Minnesota (e-mail:
timsmith@umn.edu). Srinath Gopalakrishna is Associate Professor of
Marketing, University of Missouri, Columbia (e-mail: srinath@missouri.
edu). Rabikar Chatterjee is Professor of Marketing, Katz Graduate School
of Business, University of Pittsburgh (e-mail: rabikar@katz.pitt.edu). The
authors contributed equally to this article and thank the cooperating partner
firm and the Forest Products Management Development Institute for their
support of this research, as well as the contributions of Sergio Molina-
Murillo in the development of the decision support tool. They also
acknowledge the helpful comments from Leigh McAlister, special issue
editor of the Marketing Science Institute Special Issue, and the three
anonymous JMR reviewers.
TIMOTHY M.SMITH, SRINATH GOPALAKRISHNA, and RABIKAR CHATTERJEE*
The marketing and sales functions in many firms are often at odds
despite their common goal of increasing revenue and profit. The finger
pointing goes both ways: Marketing complains of poor lead follow-up by
sales, and in turn, sales grumbles about the quality of leads generated by
marketing. This disconnect can be damaging; high lead volumes
generated through effective marketing campaigns could actually hurt
downstream sales because of wasted effort on poorly qualified leads
and/or delays in sales follow-up resulting from limited sales force
capacity. To examine the revenue and profit implications of coordinated
communications efforts at the marketing–sales interface, the authors
develop a three-stage model that captures the effects of sequential
marketing/sales communications on lead generation, appointment
conversion, and sales closure. The results, which are based on a
collaborative effort with a large home improvement retailer, suggest a
complex interplay among marketing efforts (multiple media that generate
leads), delays in follow-up (time lag between inquiry and sales force
contact), and sales efficiencies (appointment and sales conversion). The
findings underscore the impact of multimedia spending on the timing and
effectiveness of subsequent communications, implying that improved
internal collaboration between marketing and sales can offer significant
upside potential for the firm. Finally, the authors develop a managerial
decision support tool to simulate the impact of varying communications
budgets, timing, and allocation on the marketing and sales planning
system.
A Three-Stage Model of Integrated Marketing
Communications at the Marketing–Sales
Interface
The effective integration of various elements of the mar-
keting communications mix is an important challenge for
practitioners and academics alike. Corporations spend heav-
ily trying to communicate with their current and prospective
customers, often through multiple media. Although previ-
ous research has examined the effectiveness of individual
elements, such as advertising (Hanssens and Weitz 1980)
and trade shows (Gopalakrishna and Lilien 1995), the syn-
ergy across elements is also important; that is, spending on
one source may enhance the effectiveness of another
(Gatignon and Hanssens 1987; Gopalakrishna and Chatter-
jee 1992). This perspective, called integrated marketing
communications (IMC), has received some attention in the
literature, though research in this area is scarce (Naik and
Raman 2003).
In practice, the impact of communications activity on the
purchasing process is often sequential, especially when the
process involves multiple stages. However, the timing of
exposure to sequential communications is a key unexplored
issue in the context of effective resource deployment. Our
research stems from discussions with a major home
improvement retailer, which we refer to as HIR for confi-