Sales Development in Business-to-Business Markets
Tommi Mahlamäki
a
and Juho Martikainen
Unit of Industrial Engineering and Management, Tampere University, Tampere, Finland
Keywords: Sales Development, Digitalization, Sales, B2B.
Abstract: Sales development has emerged as a critical strategy within the business-to-business (B2B) landscape,
propelled by the ongoing digitalization of sales processes. This paper explores how digital technologies,
including artificial intelligence (AI), machine learning, CRM systems, and e-commerce platforms, have
reshaped sales strategies and interactions between buyers and sellers. As digital tools become integral to
modern sales operations, the role of sales development in generating leads and fostering customer
relationships is increasingly prominent. The paper reviews existing literature on sales development,
highlighting its evolution from traditional sales models to contemporary digital frameworks. Furthermore, the
study proposes an initial conceptual framework for understanding sales development in B2B contexts, setting
the stage for empirical research to explore its implementation and effectiveness in enhancing sales
performance and customer engagement.
1 INTRODUCTION
Sales and sales processes have been extensively
researched, yet they have evolved significantly over
the past few decades, driven by digitalization. The
internet and digital tools, initially prominent in B2C
contexts, are now transforming B2B markets as well.
This paper explores how digitalization impacts sales
and sales processes, focusing on a new concept of
sales development.
Digitalization is a megatrend in sales, driven by
advancements in information technology, machine
learning, robotics, and AI. As Rodriguez et al. (2020)
highlight, B2B markets are increasingly complex,
necessitating more efficient, cost-effective processes.
Digitalization and Sales Force Automation (SFA) are
crucial in this transformation, making it a mandatory
consideration for management (Mahlamäki et al.,
2016). This paper will delve into how digital
technologies and channels have dramatically altered
buyer-seller interactions, emphasizing the significant
role of digital tools such as CRM systems and e-
commerce platforms in enhancing sales processes.
Furthermore, the relationship between
digitalization and marketing technologies is explored.
Marketing technologies, including marketing
automation and CRM tools, play a vital role in
a
https://orcid.org/0000-0003-3329-4351
supporting sales development by providing the
necessary digital infrastructure.
This paper also examines the concept of inside
sales, which has gained prominence as digital
channels reduce the need for face-to-face interactions.
Inside sales, as a configuration of sales development,
is critical in today's sales environment, offering
numerous advantages over traditional outside sales
approaches.
The paper contributes to academic discussion by
providing more understanding of the successful use
of sales development as part of a digitalized sales
process in the B2B context. Concretely this is done
by introducing a framework of sales development,
focusing on its role in generating leads and fostering
customer relationships within a digitalized sales
process. The challenges and benefits of implementing
sales development are discussed, providing a
foundation for further empirical research. This initial
framework will be refined in the future through
personal interviews with representatives from B2B
companies, ensuring its relevance and applicability in
the modern sales context.
Mahlamäki, T. and Martikainen, J.
Sales Development in Business-to-Business Markets.
DOI: 10.5220/0012980200003838
Paper published under CC license (CC BY-NC-ND 4.0)
In Proceedings of the 16th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management (IC3K 2024) - Volume 3: KMIS, pages 273-279
ISBN: 978-989-758-716-0; ISSN: 2184-3228
Proceedings Copyright © 2024 by SCITEPRESS – Science and Technology Publications, Lda.
273

2 LITERATURE REVIEW
2.1 Digitalization in Sales and Sales
Processes
Sales and sales processes have been a focus of
research for a long time. Yet during the past decades
they have evolved significantly, particularly with the
use of digitalization. The internet and other digital
tools, initially prominent in B2C contexts, are now
transforming B2B markets as well.
Digitalization is a megatrend in sales and is often
called the “fourth industrial revolution.” It is driven
by advancements in information technology, machine
learning, robotics, and AI (Syam & Sharma, 2018).
Rodriguez et al. (2020) highlight that B2B markets
are increasingly complex and demanding, leading to
less productive operations. Complex B2B sales
organizations aim for more efficient, cost-effective
processes through digitalization and Sales Force
Automation (SFA) (Román & Rodríguez, 2015).
Thus, digitalization transforms the operational
environment and is a mandatory consideration for
management.
Digital technologies and channels have
dramatically altered buyer-seller interactions.
Companies invest more in digital technologies to
streamline and enhance sales processes (Terho et al.,
2022). Also, according to Terho et al. (2022),
marketing plays a crucial role in acquiring new leads
through digital channels, with customers relying
heavily on digital resources during the initial buying
phases, even in B2B contexts.
In the context of this research, digitalization in
sales is an important theme because sales
development is mostly related to digitalization: it can
be said to require effective digital tools to be able to
run properly and to gain the benefits it is offering.
Common digital sales tools include CRM systems
(Ahuja & Medury, 2010) and e-commerce platforms
(Alsaad & Taamneh, 2019). These tools enhance
sales processes by reducing internal costs or
increasing outcomes (Rodríguez et al., 2020). CRM
systems facilitate internal communication and data
storage. E-commerce platforms facilitate transactions
between trading partners, often visible to customers
as webshops. Despite substantial investments in
digitalization, the link between investment and
performance enhancement remains unclear.
Successful technology implementation depends on
the interplay of technological elements and the
commitment of salespeople (Rodríguez et al., 2020).
Rodriguez et al. (2020) identified internal and
external enablers and obstacles to digitalizing sales
processes, categorized into organizational,
technological, cultural, and legal/security
dimensions. Overcoming these challenges can lead to
successful digitalization and significant benefits.
Priority internal sales elements for digitalization
include customer identification, sales proposals, and
follow-up support—steps 1, 3, and 5 in Rodriguez et
al. (2020) sales steps. In the modern world,
digitalization is essential for any company's
existence, impacting both B2C and B2B sectors.
Machine learning and AI represent significant
trends within digitalization and digital commerce.
Syam and Sharma (2018) describe ongoing
digitalization, including AI and machine learning, as
a transformative force in the industry, reshaping sales
practices. The industry is keenly observing AI's
potential and limitations.
Digitalization has fundamentally altered selling.
Relational selling has undergone substantial changes.
Arli et al. (2018) note that sellers must adapt to larger,
more organized buyers with higher demands,
reflecting the evolving nature of sales in the digital
age.
2.2 Digital Marketing and Marketing
Technologies
When discussing sales and especially sales
development and digitalization, it is essential to
recognize the significant role of digital marketing and
marketing technologies. These elements are
intrinsically linked to sales development. Viewing
sales as an isolated segment of the funnel is unwise;
instead, it should be considered part of the integrated
marketing and sales funnel, as Järvinen and Taiminen
(2016) suggest. In addition, sales development relies
on a strong connection between marketing and sales
(Sleep et al., 2020; Terho et al., 2022).
The marketing department plays a crucial role in
the company's business. Its efforts directly impact the
sales and marketing funnel. Marketing should not
function as an isolated unit. Wiersema (2013) found
that integrating marketing and sales systems, like
marketing automation or CRM, enhances team
efficiency. Järvinen and Taiminen (2016) also noted
that an integrated marketing and sales funnel
increases transparency between these units,
facilitating better collaboration. Marketing must work
closely with sales, aligning business objectives to
focus on the right leads, close more customers, and
boost sales growth.
Emphasis will be on marketing technologies,
defined as tools or methods aiding marketing teams
in achieving their targets (Graesch et al., 2020). These
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technologies include database management systems
enabling CRM tools, websites facilitating online
marketplaces, and social media applications
supporting corporate influencers.
Digitalization has profoundly impacted
marketing. Before digital solutions, marketing was
entirely offline. "Marketing finds itself in the middle
of a digital transformation, which IT has caused and
accelerated over time" (Graesch et al., 2020, p. 124).
Online tools have revolutionized marketing,
enhancing performance, reach, measurement, and
efficiency.
From a sales perspective, marketing technologies
are vital for collaboration throughout the sales funnel.
Integrating and effectively using marketing
automation and CRM tools are crucial for modern
commerce (Sleep et al., 2020; Terho et al., 2022).
Tools like CRM are often shared between marketing
and sales. A common, integrated customer database
helps both teams achieve their goals (Syam &
Sharma, 2018).
2.3 Inside Sales
As digitalization has driven sales more towards
digital channels and reduced face-to-face interactions
between buyers and sellers, sales have been divided
into inside sales and outside sales (Thaichon et al.,
2018; Sleep et al., 2020). This division is quite old;
sales have been categorized into inside and outside
sales since the 1980s when telemarketing began to
emerge. The term inside sales became more prevalent
around the millennium, contrasting with outside sales
(Kroger, 2013). Traditionally, inside sales have been
defined as sales occurring remotely, whereas outside
sales involve face-to-face interactions (Kroger, 2013;
Thaichon et al., 2018; Sleep et al., 2020; Terho et al.,
2022).
Today, these definitions may not be entirely up-
to-date. A significant portion of sales and sales
communications now happen remotely, which
suggests that a larger part of sales can be considered
inside sales (Fready et al., 2022). While some
companies and roles still maintain clear distinctions
between inside and outside sales, in many cases, the
line between these functions has blurred.
Additionally, the need for face-to-face interactions
occurs much later in the B2B sales process, if at all,
because modern technology can almost entirely
replace face-to-face interactions (Mantrala & Albers,
2022).
According to Thaichon et al. (2018), inside sales
have experienced significant growth in the last 50
years in terms of practical use. In the 1970s, sales
focused almost entirely on face-to-face contact and
companies relied on outside sales personnel. Over the
past 50 years, sales structures have shifted from
merely providing value to buyers to creating value
with them. This shift and significant technological
transformations have led companies to use more
inside sales to meet market demands and leverage its
benefits (Thaichon et al., 2018).
As inside sales constitutes an integral part of sales
structures in many contemporary companies, it
inherently offers several advantages. According to
Gessner and Scott (2009) and Martin (2013),
organizations are increasingly reallocating resources
towards developing inside sales teams. For instance,
Albrecht et al. (2014) observed that approximately
40% of large technology companies are shifting
resources from outside sales to inside sales, reflecting
the rising prominence of inside sales within corporate
sales frameworks.
Sleep et al. (2020) delineate three significant
shifts that have facilitated the transition from outside
sales to inside sales. Firstly, inside sales now
encompasses more than traditional call center roles
and order-taking; it involves activities such as order
generation traditionally performed by outside sales
forces. Advances in technology have enabled
effective customer interaction without the need for
face-to-face meetings, allowing inside sales teams to
manage smaller customer accounts within
organizations (Sleep et al., 2020).
Secondly, Sleep et al. (2020) highlight changes in
customer behavior within the B2B context, where
customers increasingly utilize various technology-
based channels to gather information, thereby
favoring inside sales approaches. Johnson (2005)
notes the evolving nature of B2B sales processes
towards being more buyer-driven. An intriguing
finding by Rapp et al. (2013) suggests that whether
salespersons operate in inside or outside sales roles
does not significantly affect customer orientation.
Moreover, customers in B2B settings have reduced
their reliance on face-to-face meetings in favor of
online services; as early as 2012, Mantrala and Albers
(2022) reported a 37% decline in face-to-face
meetings among customers. The COVID-19
pandemic has accelerated these changes, making
virtual and remote communication commonplace in
B2B interactions (Fready et al., 2022).
Thirdly, heightened competition has compelled
companies to invest in cost-effective capabilities,
with inside sales playing a pivotal role in delivering
value-added services through every customer
interaction, focusing on upselling and cross-selling
opportunities (Sleep et al., 2020). Today, inside sales
Sales Development in Business-to-Business Markets
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represents a critical avenue for exploring new
methods to enhance lead management in B2B firms,
particularly through specialized inside salesforces
dedicated to generating and nurturing high-quality
leads for external sales teams (Kuruzovich, 2013;
Thaichon et al., 2018; Sleep et al., 2020; Terho et al.,
2022). This underscores the limited research into
sales development, where the definition often stems
from inside sales practices that differ significantly
across sales domains. Thaichon et al. (2018)
characterize sales development as a specialized
adaptation of inside sales, underscoring its distinct
operational methodologies. Terho et al. (2022)
provide a rare focus on sales development and
attempt to contextualize its understanding within the
realm of inside sales.
In exploring sales development, understanding
the relationship between inside sales and sales
development is crucial. According to Sleep et al.
(2020), sales development constitutes one of the four
principal archetypes within the B2B inside salesforce
configurations. Sales development is specifically
defined as an adaptation of inside sales, alongside
other configurations such as inbound sales, sales
support, hybrid teams, and discrete sales functions, all
outlined in Figure 1 derived from practitioner
literature.
Figure 1: Major B2B inside sales force configurations
(Adapted from Sleep et al., 2020).
As seen in Figure 1, sales development differs
significantly from other configurations as it is not a
separate function from outside sales but collaborates
closely with it. For instance, discrete and hybrid
configurations can operate independently from
outside sales because they encompass the entire sales
funnel, from prospecting to closing deals (Sleep et al.,
2020). Some might argue that sales development
cannot be a configuration of inside sales since Sales
Development Representatives (SDRs) are not directly
selling the product or service but are setting
appointments for outside sales, whereas hybrid and
discrete configurations manage the entire sales
process. However, this distinction is not the primary
concern of this study.
2.4 Sales Development
Sales development is a relatively new term in
academia, with the first article focused solely on it
published in 2022 (Terho et al., 2022). Although new
academically, the term is well known in practice.
According to non-academic sources like Salesloft
(2014), Gartner (2019), Gummings (2014),
Wikipedia (2024), and Arjona (2022), sales
development originated in the 1980s at Oracle. The
original Oracle Direct team, led by Anneke Seley,
was the first to use sales development methods. Back
then, sales development was quite different, with
digitalization significantly transforming these
methods and teams into today’s modern sales
development. Some argue that business development
is similar to sales development, as Business
Development Representatives (BDRs) may perform
tasks akin to Sales Development Representatives
(SDRs), but sales development is a more precise term
for this specialized unit.
Although sales development is considered a
configuration of inside sales, it differs significantly
from the original meaning of inside sales. While sales
development focuses on generating qualified leads
and setting appointments for the outside salesforce,
inside sales involves the entire sales process from first
contact to closing. (Thaichon et al., 2018; Sleep et al.,
2020; Terho et al., 2022).
As previously mentioned, Thaichon et al. (2018),
Sleep et al. (2020), and Terho et al. (2022) state that
sales development is primarily used in the B2B
context and is a vital component of companies' sales
processes. In contrast, the function is less utilized in
B2C contexts, possibly due to the reasons identified
by Rodriguez et al. (2020): “B2B sales processes
require stronger sales efforts by the seller in reaching
out, closing deals, and maintaining business
relationships with customers.” B2B involves more
detailed stages and long-term relationships, focusing
on transitioning from one-time transactions to long-
term customer relationships (Rodriguez et al., 2020).
Conversely, the B2C sales process requires less
effort from the sales department to reach out and
achieve sales with consumers, making the process
leaner (Sutanonpaiboon & Abuhamdieh, 2008). Sales
development seems to fit better in B2B, but a
significant obstacle is that B2B sales processes are
often less digitalized than B2C, while sales
development relies heavily on digital tools
(Rodriguez et al., 2020; Terho et al., 2022).
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Overcoming this conflict is crucial for the efficient
use of sales development.
The definition of sales development is still
evolving, with various references offering slightly
different interpretations. However, three main
publications (Thaichon et al., 2018; Sleep et al., 2020;
Terho et al., 2022) are based on inside sales and
define sales development similarly. Terho et al.
(2022) builds on the previous definitions by Thaichon
et al. (2018) and Sleep et al. (2020). Sleep et al.
(2020) define sales development as an inside sales
configuration focusing on lead qualification and
appointment setting for outside sales. Terho et al.
(2022) expand this definition, viewing the function as
an integrated organizational role between marketing
and sales, generating and nurturing leads, both
inbound and outbound, focusing on both prospects
and accounts.
As previously noted, sales development is an
organizational function that bridges marketing and
sales. It focuses on setting appointments for the sales
force and maximizing the benefits from leads
generated by marketing (Sleep et al., 2020). Terho et
al. (2022) identify four distinct types of sales
development processes: outbound prospect-focused,
outbound account-focused, inbound prospect-
focused, and inbound account-focused. In summary,
prospect-focused methods have shorter turnaround
cycles and benefit more from automation, while
account-focused sales development requires longer
cycles and more manual tasks during lead research
and nurturing (Terho et al., 2022).
During their study, Terho et al. (2022) identified
a few platforms besides the main topic. These
findings were divided into "organizational platform
decisions," "technological platform-enabling
technologies," and "people platform." Each category
included demands for sales development, along with
benefits and challenges that can be addressed.
Organizational platform decisions refer to the
seamless integration between marketing and sales,
which is crucial for effective sales development.
There should be jointly defined processes with clear
responsibilities among units, common lead
management terminology, and internal service level
agreements. Shared targets, joint target setting,
common goals, and aligned incentives are also
essential. Additionally, a culture of open
communication with regular joint meetings and active
demonstration of sales development value is
beneficial (Terho et al., 2022).
Technological platform-enabling technologies
indicate that, as sales development is largely a back-
office function building on digital sales technologies,
the technological platforms facilitating this work are
central enablers. For successful implementation, the
process should include lead management
technologies like marketing automation and customer
relationship management, alongside other tools.
These systems should facilitate key functionalities in
sales technology, such as engagement tools for
managing digital interactions, analytics and sales
intelligence tools for insights, enablement tools for
accessing firm content, and pipeline management
tools for steering the sales process. Well-organized
data, shared databases, integrated systems, and
actively updated data are also important (Terho et al.,
2022).
People platform refers to managing Sales
Development Representatives (SDRs), who are
crucial to the sales development process. Job profiles,
motivation, training, evaluation, and rewards should
be aligned, and SDRs should be correctly led.
Typically, SDRs are junior staff in entry-level
positions, which needs consideration. The job should
be challenging and rewarding to motivate SDRs to
perform well. Often, a fixed salary based on
performance with shared targets among units is used.
It is also important to differentiate between SDRs
focused on outbound prospects and those focused on
inbound accounts, as different profiles may be
required (Terho et al., 2022).
3 FRAMEWORK OF SALES
DEVELOPMENT
Researchers examining general sales processes often
debate whether to focus on one-time transactions to
boost immediate sales or on relationship building to
enhance customer lifetime value (CLV). Based on the
existing literature, sales development is not suited for
one-time transactions. According to Terho et al.
(2022), sales development focuses primarily on
building customer relationships and generating leads
to foster more relationships both within and outside
the company. The appropriateness of sales
development depends on the product or service a
company offers. While existing literature identifies
some characteristics that indicate when sales
development fits into the sales process and what
demands it has for successful implementation, there
is still a need for deeper insight. This research aims to
provide more understanding of the successful use of
sales development as part of a digitalized sales
process in the B2B context.
Sales Development in Business-to-Business Markets
277

Figure 2: Initial conceptual framework for sales development.
The sales landscape has transformed significantly
over recent decades, with the pace of change
accelerating. Syam and Sharma (2018) describe this
shift as the fourth industrial revolution, driven by
digitalization in sales and business. With
communication and transactions increasingly moving
online, the sales environment is changing drastically.
As face-to-face communication diminishes,
companies are adopting or naturally transitioning to
inside sales teams. This shift necessitates rethinking
business strategies to achieve greater efficiency with
fewer resources.
While the general sales process has evolved from
Dubinsky's (1981) model, the fundamental theme of
sales as a person-to-person activity remains.
However, as Syam and Sharma (2018) note, AI and
machine learning are becoming more integral to sales,
signaling further changes in the near future. The trend
toward inside sales, driven by the internet and overall
digitalization, reduces the need for face-to-face
meetings, potentially enhancing sales efficiency.
Thaichon et al. (2018) identify this trend as the fourth
evolution in sales structures, with the internet playing
a crucial role and companies expanding their inside
sales forces. This evolution began in the 2000s,
emphasizing customer co-creation of value through
various channels, supported by advancing
technologies that enhance inside sales efficiency.
As inside sales becomes increasingly prevalent,
whether through dedicated teams or integrated
working methods, companies seek to optimize their
sales processes to maximize value for both the
company and the customer. Sales structures often
blend outside, inside, and online sales, with inside
sales playing a major role. One promising
configuration for inside sales is sales development,
which can significantly enhance company
performance (Sleep et al., 2020).
The aforementioned changes have prompted
companies to consider establishing and utilizing sales
development in their processes. The need for sales
development is evident, and its efficient
implementation demands certain conditions. The
literature suggests that sales development should be
positioned between sales and marketing, with the
primary goal of arranging sales meetings for the
outside sales team. The benefits of implementing
sales development include a more efficient and
streamlined process. However, challenges related to
organizational and personnel issues can arise. An
initial conceptual framework for sales development,
built on existing theory, is presented in figure 2.
The figure aims to present the main themes and
concerns highlighted in the literature, commonly
considered by companies when establishing or using
sales development. This model serves as an initial
framework based on B2B literature and will be
refined in the subsequent steps of the research
through empirical studies, including personal
interviews with representatives from B2B companies.
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