The Role of Selling in Marketing

1. The Role of Selling in Marketing XMB554 Week 2

2. What is not Marketing? http://www.ted.com/talks/lang/tr/dan_cobley_what_physics_taught_me_about_marketing.html

3. What is Marketing? Managing Profitable Customer Relationships • Attracting new customers • Retaining and growing current customers

4. What is Marketing? The process of building profitable customer relationships by creating value for customers and capturing value in return.

5. Customer PerceivedValue Costs Benefits

6. 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?

7. Marketing Management

8. Marketing Plan How you go there Where you are Where you want to be

9. 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 customerswant and need? Marketing Management Philosophies

10. Marketing Strategy and Sales Management

11. 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

12. 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. The War Between Sales & Marketing

13. 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. The War Between Sales & Marketing

14. 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”. • Marketing is responsible for setting retail or list prices, and establish promotional pricing. • The salespeople usually favor lower prices to sell the product more easily. • Sales has the final say over transactional pricing The War Between Sales & Marketing

15. Why can’t they just get along? • 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 Cultural conflict arises from the fact that two functions attract people who spend their time in different ways The War Between Sales & Marketing

16. How well do Sales and Marketing Work Together? UNDEFINED 20-39 DEFINED 40-59 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 • 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 60-79 INTEGRATED 80-100 • Clear boundaries between two exist but they are also flexible • They engage in joint planning and training. • They work together on important accounts • Boundaries become blurred. • They develop and implement shared metrics • “Rise or fall together “culture develops The War Between Sales & Marketing

17. Do we need to be more aligned? The War Between Sales & Marketing

18. How to move up? move to Defined move to Aligned move to Integrated The War Between Sales & Marketing

19. Encourage disciplined communication • 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 whenand 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.” Establishan up-to-date, user-friendly “who to call” database. The War Between Sales & Marketing

20. 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 sales-promotion campaigns. • Salespeople should share knowledge about customers’ purchasing habits. • They should plan events and conferences together. The War Between Sales & Marketing

21. 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 The War Between Sales & Marketing

22. Appoint a chief revenue officer • Putboth 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. The War Between Sales & Marketing

23. The Buying Funnel The War Between Sales & Marketing

24. 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 developersand participates in product development. The War Between Sales & Marketing

25. 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