Thursday, March 26, 2015

Cons To Combining Marketing & Sales

Sales focuses on individual customers while marketing takes a broader market view.


In many companies, especially smaller organizations, sales and marketing are combined out of necessity or the belief that they're the same function. Sales and marketing, however, play different roles within a business. Understanding of the differences between the two reveals solid reasons not to combine these distinct business functions. A better understanding, too, influences this critical organizational decision.


Focus


Entrepreneur and marketing guru Seth Godin says, "Marketing tells a story that spreads. Sales overcomes the natural resistance to say yes." Marketing is concerned about spending money to gain broad appeal. Sales, however, uses its budget to reach many individual customers. This often creates friction within an organization.


Customer Approach


Marketing listens to learn and understand the needs of current and potential clients. Once this information has been gathered, it's brought back to departments within the company, like product development, customer service and fulfillment, to change a product or process or shape future products. Sales pitches demonstrate how the company's current products meet a client's existing needs. Long, exploratory discussions are seldom a concern.


Communication


Marketing functions can require passive, one-way communication: print and broadcast advertising, direct marketing campaigns, websites, email campaigns, newsletters and press releases. Other functions, like attending conferences, participating in trade shows and social media campaigns, are more interactive and could be conducted jointly with sales staff. Sales functions, like presentations, emails, phone calls and customer meetings, depends on direct, two-way interaction with the customer. Sales staff send more time on the road. Marketing largely works out of offices.


Skill Sets


Sales staff need strong relationship-building skills to interact with clients. They learn to accept rejection, not taking it personally but rather as a missed business opportunity. They are transaction-focused. Conversely, marketing resources focus on projects and tend to be highly analytical, suggesting the need for different recruiting and training techniques.


Rewards


Closing the sale, bringing revenue and profit to the company, reaps rewards for the sales staff, usually in terms of monthly or quarterly commissions. Marketing's rewards stem from identifying the right product offerings for the targeted market and extending customer awareness of the company's products. This produces customer satisfaction. In some cases, marketing creates a need in the marketplace, using promotional campaigns to persuade clients they need a product or service. For this, reward may be a financial bonus or some other type of compensation, usually awarded annually. Differences in the types and timing of compensation could create a sense of inequity.

Tags: functions like, individual customers, sales staff, Sales staff