Download Marketing management

The Role of Selling in Marketing
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Week 2
What is not Marketing?
http://www.ted.com/talks/lang/tr/dan_cobley_what_physi
cs_taught_me_about_marketing.html
What is Marketing?
Managing Profitable Customer
Relationships
•Attracting new customers
•Retaining and growing current customers
What is Marketing?
The process of building profitable customer
relationships by creating value for
customers and capturing value in return.
Customer Perceived Value
Costs
Benefits
Marketing Management
Marketing management is the art and science
of choosing target markets and building
profitable relationships with them
– What customers will we serve?
– How can we best serve these customers?
Marketing Management
Marketing Plan
How you go there
Where you are
Where you want to be
Marketing Management Philosophies
Orientation
Focus
Production
What can we make or do best?
Product
How can we make the best product?
Sales
How can we sell more aggressively?
Marketing
What do customers
want and need?
Marketing Strategy and Sales
Management
Relationship between Sales and
Marketing
• Marketing function takes different roles in
different companies
• The strains between Sales and Marketing
fall into 2 main categories: economic and
cultural
• It is not difficult for companies to assess
the quality of the working relationship
between Sales and Marketing
The War Between Sales & Marketing
Different Roles for Marketing
Small businesses
• Don’t establish a formal marketing group.
• Marketing means selling.
• Eventually, add a marketing person to help sales
force: measure the size of the market, identifying
best channels, or determining motives of
potential buyers; develop materials to attract
customers and close sales.
• At this stage, the relationship is usually positive.
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Different roles for marketing
As companies become larger and more successful
• Marketing is more than just selling.
• Hire marketers, marketing becomes an independent player
• Marketing competes with Sales for funding
• Disagreements arise
– Salespeople wish that marketers should worry about
opportunities (long-terms strategy) and leave the current
opportunities (individual and group sales) to them.
– Marketers believe it’s essential to transform the organization
into a marketing-led company.
– Sales group question whether the marketers have the
competencies, experience and understanding to lead the
organization.
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Why can’t they just
get along?
Economic friction is generated by the need to divide the
total budget.
Sales criticize how Marketing spends money on the pricing,
promotion and product.
Marketing wants the sales force to
“sell the price” as opposed to
“selling through price”.
The salespeople usually favor
lower prices to sell the product
more easily.
Marketing is responsible for
setting retail or list prices, and
establish promotional pricing.
Sales has the final say over
transactional pricing
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Why can’t they just
get along?
Cultural conflict arises from the fact that two functions attract
people who spend their time in different ways
• Marketers had more formal education •
than sales people.
• Highly analytical, data oriented and •
project focused.
•
• Judge performance of project with a •
cold eye.
• Build competitive advantage for the •
future
They spend their time talking to existing
and potential customers
Skilled relationship builders
Are in the field not behind a desk
Are used to rejection and it does not
depress them
Live for closing a sale
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How well do Sales and Marketing Work
Together?
UNDEFINED
•
•
•
•
•
DEFINED
They are independent: each has its
own tasks and agendas.
Each does not know about what
the other is up to.
Meetings are devoted to resolution
of conflicts rather than proactive
cooperation.
ALIGNED
•
20-39
60-79
•
•
•
They set up processes and rules to
prevent disputes.
They know who is supposed to do
what and stick to them
They work together on large events
like trade shows
INTEGRATED
Clear boundaries between two
exist but they are also flexible
They engage in joint planning and
training.
They work together on important
accounts
•
•
•
40-59
80-100
Boundaries become blurred.
They develop and implement
shared metrics
“Rise or fall together “culture
develops
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Do we need to be more aligned?
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How to move up?
Defined
Undefined
Aligned
Create clear rules for
engagement
e.g., following up on
sales leads
Encourage disciplined
communication
Create joint assignments
Appoint a liaison from
Marketing
Collocate marketers and
salespeople
Improve sales force
feedback
Appoint a chief revenue
(or customer) officer
Define the steps in the
marketing and sales
funnels
Spilt marketing into two
groups
Set shared revenue
targets and reward
systems
Integrate sales and
Marketing metrics
move to Defined
move to Aligned
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move to Integrated
Encourage disciplined communication
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• Hold regular meetings between Sales and
Marketing
• Make sure that major opportunities and
problems are on the agenda.
• Focus the discussions on action items that will
resolve problems
• Develop guidelines that will indicate when and
with whom they should communicate.
“We will not go to print on any marketing
collateral until salespeople have reviewed
it,”
“Marketing will be invited to the top ten
critical account reviews.”
Establish an up-to-date, user-friendly “who to call”
database.
Create joint assignments
• Marketers should occasionally go along on sales
calls.
• Marketers should get involved with developing
alternate solutions for customers, early in the
sales process.
• Marketers should also participate important
account-planning sessions.
• Salespeople should help to develop marketing
plans and participate product-planning reviews.
• Salespeople should preview ad and salespromotion campaigns.
• Salespeople should share knowledge about
customers’ purchasing habits.
• They should plan events and conferences together.
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Moving from defined to aligned
What else?
• The liaison needs to be someone both groups
trust.
• Should help to resolve conflicts and share with
each group the tacit knowledge from the other
group.
• Make Sales and Marketing people physically close,
so that they will interact more often and are more
likely to work well together.
• Encourage Sales and Marketing to share their
experiences, ideas, and insights with each other
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Appoint a chief revenue officer
• Put both functions under one C-level
executive.
• Companies such as Coca-Cola, and
FedEx have a chief revenue officer
(CRO) who is responsible for planning
for and delivering the revenue
needed to meet corporate objectives.
• Control the forces affecting revenue—
specifically, marketing, sales, service,
and pricing.
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The Buying Funnel
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Split marketing into two groups
•
•
•
Downstream marketers develop
advertising and promotion
campaigns, collateral material, and
sales tools.
They help salespeople develop and
qualify leads.
They uses market research and
feedback from the sales reps to help
sell existing products in new market
segments, to create new messages,
and to design better sales tools.
•
•
•
Upstream marketers engage in
customer sensing.
They monitor the voice of the
customer and develop a long view of
the company’s business
opportunities and threats.
They shares its insights with senior
managers and product developers
and participates in product
development.
The War Between Sales & Marketing
Practical Exercise Discussion Questions
• Determine the type of relationship between Sales
and Marketing departments in your company.
• Is there any significant difference between sales and
marketing forces about how well they work
together? If there is, where the difference is derived
from?
• Discuss how a stronger alignment between the two
groups can be created.
The War Between Sales & Marketing