Archive for September, 2008

MARKETING does NOT equal SALES

Monday, September 22nd, 2008

So many folks talk about Marketing & Sales as if they are synonymous, but they are not the same.  True, Sales and Marketing are closely related and in smaller companies there can be one individual responsible for both, but they are not the same.

Whether Sales and Marketing are two different departments in your company or simply two different “hats” worn by an individual in a business, it is critical to observe the difference between Sales and Marketing.  It is only in the separation of the goals and responsibilities of each “department” that each can be focused upon properly for the upmost growth of the company.

So simply put, “Sales” is defined as the process by which an opportunity or lead is converted into a customer.  The most common analogy is that of a funnel.  The wide mouth at the top of the funnel is where opportunities and/or leads are put.  “Sales” meets with the customer, determines needs via analysis, presents solutions, prepares contracts, negotiates with prospects, and garners commitments to successfully convert the opportunity/lead/prospect into a customer.  “Sales” final task is to transition the new customer to the Operational or Implementation department of the company to execute the solution just sold and committed to by the customer.

“Marketing” is generating or finding the opportunities or leads for “Sales” to work through the process described above. 

Observe the funnel below…

 Sales Funnel

Clearly “Sales” and “Marketing” need to work together.  If Marketing floods the top of the funnel with too many opportunities for Sales to be able to give attention to, Sales will become frustrated and not work on any of the opportunities for there may be too much “bad” opportunities to get through to get to the “good” or qualified ones.  An example of this would be the purchase of a cold list from a website that sells this information.

Conversely, if Marketing over qualifies opportunities, Sales will likewise become frustrated becuase they will feel that there are not enough opportunities to work on and that Marketing is not keeping them busy enough.  An example of this is when 100% (or close to 100%) of all opportunities come from referrals or word of mouth sources.  Another complication of this situation is that the Sales department usually will be overconfident in their ability to convert opportunities to customers and consequently unprepared to work different types of opportunities (generated from different marketing strategies) through the sales process.

My recommendation is to first, understand the very different roles of “Sales” and “Marketing” in order to execute on each effectively.  Second, add additional marketing strategies to the overall marketing plan rather than simply relying upon referrals only to ensure that the Sales department effectively understands its capabilities and appreciates when an super qualified referral is dropped in their lap.

Happy hunting and Let Ambition Be Your Mission!

Matt Makowicz


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