Is it Sales or is it Marketing

By Kirk J. Bentham
Article published in March / April 2005 issue

I recently attended a prominent trade show and as I moved through the scores of booths, I met numerous directors of sales and marketing and marketing executives. Although most were very well-versed in selling, few were actually involved in marketing. With many of the companies I visited, the function of ‘sales’ was hidden behind the image of a seemingly gentler approach called marketing. This isn’t necessarily a failing, but rather a huge opportunity for companies that can grasp the differences between the functions and orientations of sales and marketing, and make the turn to integration.

These days it seems like hard-selling is something many businesses try to downplay and through titles, disguise the fact that members of their organizations are actually there for the specific purpose of making sales. And ‘sales’ seems to be a title that most people shy away from even if it is exactly what they do. Hence you see a lot of “sales and marketing” or straight on “marketing” titles out there in today’s marketplace regardless of the functions these people serve in the organization. It’s this concern over titles and perceptions that often create confusion about the roles of departments and staff which leads to misplaced focus and missed opportunities.

“So what is it that you do for the company - sales or marketing?” I coyly asked those people I exchanged name cards with who purported to hold both titles. Truly a loaded question, but never-the-less it made for many good discussions. What it boiled down to was, forget about function or roles and think about which title is more appealing to put on a business card, and which is more likely to open doors or close them? Either way, sales and marketing are both concerned with the same thing – generating revenue at a profit. However, how they go about it differs drastically. A clear understanding those differences is something that companies need to have in order to utilize them effectively.

Just because someone is part of the collateral development project (brochures, signage, sales kits, etc.) or writes the company newsletter, doesn’t make them a marketing professional, especially if their primary role is to close sales. Don’t get me wrong, I’m not a marketing purest by any stretch but I believe that by doling out the title of “marketing whatever” to someone who is not actually focused on performing marketing functions, skews their own perception of what they are trying to accomplish. But is it really sales, or is it really marketing?

Call it what you whatever you want but just don’t loose focus on the functions that need to be performed in order to realize your business' potential. Having said that, let us back up a few steps and take a look at the fundamental differences between sales and marketing. Rather than go to text book definitions, let’s just break them down into their basic functions.

Sales by function

Sales in essence, is a point-of-purchase mechanism, where the transfer of goods or services for money is taking place. Typically, the function of sales is to prospect, qualify, pitch and close. For those who may not be familiar with these terms, prospecting is seeking out “potential” customers and qualifying is asking a series of probing questions to asses the prospect’s wants, needs, and demands. Pitching refers to communicating the products unique selling proposition or unique selling point, which means convincing prospects that your product will satisfy their wants, needs and demands and superior than a similar product offered by your competition. Without properly qualifying a prospect it is difficult, if not impossible, to tailor your pitch to successfully communicate your product’s value positions.

Finally, closing is getting the prospect commit to purchase the product and can only be done after the pitch has received a positive response.

Sidebar:

Prospecting – locating people who are in demand of your product.
Qualifying – narrowing in on what it is that they are really interested in, how much they can afford and finding out what barriers to purchase need to be cleared in order to make the sale.
Pitching – communicating the ways that your product will satisfy the prospects wants, needs and demands.
Closing – “How would you like to pay for that...?”

After a sales sequence has been successfully executed, there are other aspects of sales that come into play to increase revenue. For example, increasing transaction value is accomplished through up-selling, which is to move the customer into a higher value purchase with things like value-added services, volume discounts, promotions, specialized packaging or handling, etc. Stimulating repeat purchasing is accomplished through either more pitching and closing or relationship building which includes: diligent order fulfillment, quality assurance, incentives, dinners, entertainment and account management, which in many companies constitutes marketing. Relationship building is one of the keys to success for most sales professionals because people are much more likely to do business with people they have good relationships with.

Marketing by function

Marketing, while still focused on driving revenue, is a little more long-term oriented and bit more of an applied science than having charm, product knowledge, people skills and powers of persuasion. Marketing in function is mainly the back-office support that creates the environment for sales to take place. Marketing performs the market research, selects the product mix, pricing, packaging and by developing the brand, brings the prospects into range of the salesperson.

In many businesses sales, however, sales and marketing are seen as interchangeable, as the scope and processes of marketing include sales and sales promotion. It is therefore more practical to have a marketing professional manage both roles than it is to have a sales professional wear both hats.

Sidebar:

Marketing has been defined as the function responsible for identifying, anticipating and satisfying customer requirements profitably. It is both a philosophy and a set of techniques which include research, product development, pricing, packaging, sales and promotion, advertising, public relations, distribution and customer service.

Orientation

Taking the functions of sales and marketing into consideration, let us now look at the differences in orientations and how integration works.

A sales orientation focuses on objectives aimed at increasing sales to meet quotas and receive commissions and bonuses. A marketing orientation involves a focus on product mixes, customer groups and communication strategies to achieve profitable sales and market share at acceptable levels of risk.

The two orientations produce a very different emphasis in a company. A sales orientation primarily reflects a production approach whereby a product is produced and the task is to sell it. It focuses on individual customers rather than on market segments. In contrast, the marketing orientation works on ways of offering superior value to the more profitable market segments without damaging individual customer relationships; in essence, throwing out a bigger net.

So which orientation is the more effective? That depends on your business model and the long-term goals of your organization. If you’re not concerned with building a brand or producing branded products, a sales orientation will provide as much opportunity for success as a pure marketing orientation with a lower risk of investment. If you are a B2B organization, you may want to take the time to integrate some of aspects of marketing into your business model, particularly in developing strategies to extend your product’s appeal to entire market segments rather than focusing on individual accounts. If you are a B2C organization the marketing approach will potentially lead to greater results. However, an integrated sales and marketing orientation will create the greatest opportunities for success.

Integration

So what is the integrated approach? An integrated approach is a cycle whereby marketing supports sales by analyzing market data obtained through research, such as marketplace trends, demands, pricing and value positions of the competition, it strategically defines its own value positions and unique selling points then puts it all together in a straightforward and consistent communications platform. Effective communications and outreach strategies break down barriers to purchase and moves market constituents from want to need to demand for the brand’s products - essentially eliminating the need for prospecting and shifting the focus of qualifying. Marketing also turns this information into functional sales tools to be utilized in pitching and creates a system for measurement of variables in the marketing mix. Sales then supports marketing by providing first-hand feedback on the effectiveness of the communications platform, outreach activities, pricing, packaging and barriers to purchase that they encounter. The information is then fed back to marketing to be utilized in refining and re-implementing necessary aspects of the process to increase success.

It may all sound a bit like a science project, but it’s really not all that complicated once you spend some time to review your business processes - by necessity of function rather than by titles or positions. At the end of the day, call it sales or call it marketing; but just be sure you understand how to utilize both aspects to maximize your potential for success.

Sidebar:

Needs – biological such as the need for food, water, air and shelter. Social needs refer to issues of security, personal gratification and prestige.
Wants – culturally influenced such as wanting to own certain possessions or take part in activities such as seeing a movie or traveling.
Demand – is the availability and willingness of a customer to purchase a particular product which satisfies the want and the need.