Practical difference between marketing, sales and service

Practical difference between marketing, sales and service

	Marketing	Sales
Planning Horizon	Long term : typical question marketing managers ask themselves is “what changes in our marketing mix and what new launches we will do this year?”	Short term : typical question sales managers ask themselves is “what revenue we will achieve this month ?”
Scarce Resource	What are the company capabilities within which they will need to operate within the plan period ? In which areas the company needs to expand the capabilities so that they proactively meet the emerging needs of the emerging segments ?	What is the manpower and capabilities for customer connect the company has? In which ways the company needs to expand / modify these capabilities so that they proactively meet the requirements of the market?
Target Audience	All those who may need the products and services that we can offer for sale based on the company’s existing  capabilities.	All those who are ready to meet us (because they have BANT : Budget, Authority, Need and Time Urgency).
Main Task	The convince all inside the company internally and to coordinate such that the company is “ready to sell” what the market needs.	To convince the target audience that the company has the right advice, products and services which will help them satisfy their purchase criteria.
Strategy	The marketing strategy is about deciding (A) Marketing mix (B) Communication methods (C) Product and Service Launches / modifications / Withdrawals (D) Pricing (E) Marketing organization (F) Coordinate internally	The sales strategy is about deciding (A) sales process of creating touch points and touch scripts that needs to be created based on the buying journeys of various buying personas (B) Personal Communication methods (C) Creating and running the selling organization through proper recruitment, induction, training, coaching and motivation.

Only in the textbooks the selling function is a part of marketing. As Philip Kotler himself says, the economics and culture of the marketing and sales departments is  very different. This means that the kind of people required to run marketing, sales and serve are different because their processes (inputs and outputs), activities, tools and operating criteria are different.

Marketing people

1)      Accountable for spending money and guiding the company’s efforts in market place

2)      spend more time in the office meeting for coordination with different internal departments and with marketing vendors

3)      spend more time in internal meetings coordinating with other departments / vendors

4)      collect and analyze data

5)      act as a two way bridge between the management and field.

6)      Try and understand trends and changes in the potential customers

7)      Occupied with what changes in the marketing mix are needed. 

Sales people

1)      Accountable for earning revenue

2)      spend more time out of the office in locating customers and talking to them and convincing them to buy what they sell.

3)      Create customer conversations that add value to both the customer and the company

4)      Act as a bridge between the customers and the company

5)      Two broad types of sales persons

a)      Those who are responsible for locating and acquiring new customers (Hunters)

b)      Those who are responsible for servicing and retaining existing customers (Farmers)

6)      Occupied with how to generate revenue

Service people

1)      Accountable for improving the connect with the customer on an ongoing basis

2)      Service is frequently clubbed along with sales because they too spend most of their time with the customers but the difference between the sales and service is that

3)      selling is more about talking to prospects (who have yet to become customers) and therefore more about having conversations and presentations influencing and convincing them to buy

4)      service is about dealing with existing customers and how to satisfy them, remove potential complaints and to deal with actual complaints.

Departmentation In Marketing Function

There are many functions that need to be performed. There is no hard and fast rule regarding who – being accountable to whom – should perform the following functions. The important points is for you to be clear who will perform these functions and the organization above and below that function.

1)      Market research ( Discovery and Diagnosis )

2)      Marketing Strategy Formulation

3)      Communication Connect with market through media and PR

4)      Personal selling Connect with the market

5)      Locating the customers

6)      Generating the leads

7)      Nurturing the leads

8)      Closing the sales

9)      Transaction Connect through web with the market

10)  Sales Promotions are under sales department

11)  Distribution and supply chain

12)  Sales recruitment and training

13)  Field sales management

14)  Sales and transaction administration 

15)  After-sales-connect service

16)  After-sales connect relationship management

In each of these areas the manager concerned needs to co-ordinate with internal functions and external entities and involves (A) Planning and Budgeting (B) Organizing by allocating resources (C) Managing people and directing and coordinating them (D) Monitoring and reviewing.

1)      New Product Rollouts : Strategy,  programs, timing, market / media coverage

2)      Agency Evaluation: Selection and evaluation of outside marketing contractors

3)      Database Management: Software selection, training, maintenance, use

4)      Market Research: Market definition, prioritization, project management, data gathering

5)      Pricing : set and change pricing based on market and internal conditions

6)      Formal Product / Offer Evaluation Process to decide creation, investment, discontinuation

7)      Public Relations: Establishment, guidance and coordination of all public relations

8)      Trade Shows: Definition, participation, prioritization, output audit, follow up

9)      Product Promotions: Strategy, program components, media coverage

10)  All print / electronic communication: brochures, catalogs, price lists, case histories

11)  Selection and prioritization of all media options: print, broadcast, multimedia

12)  Establish and maintain all inter-company communications

13)  Establish company presence in targeted international markets, audit for effectiveness

14)  Offer strategic information and alternative insights to corporate management

15)  Board Meeting Participation:

16)  Communicate and reinforce the company’s  marketing priorities, strategies and tactics

17)  Proliferate and reinforce the corporate vision throughout the Organization

18)  Corporate Identity : Create, maintain, improve and "manage" all images and symbols