Every organization needs sales and marketing teams to ensure that its products and services are well received in the marketplace. There are also other functions that are carried out within the organization like human resource planning, accounting, management, logistics and the bigger the organization, the more the planning that goes into it. Sales is a profit centre for the organization – this is where the products are bought or shipped out and the money comes in. Marketing is a cost function meaning that organizations have to plan for, budget and spend money to market their products and services. But both these services work in tandem to deliver profits or earnings every year.
Getting the basics right from the start is very important. Sales or selling is an act of persuading a customer to exchange value for the products or service that he or she wants. It involves a purchase or a transaction taking place where goods or services are sold for money. The sale is a part of the marketing initiatives but often requires a different approach.
Understanding Difference Between the Sales and Marketing
Sales are relationship driven. Marketing is data-driven.
Marketers analyze data and do tests, like A/B testing with ads. We analyze website analytics and public behaviour. Salespeople analyze the behaviour of a limited group of people, the sales prospects with whom they can deal with on an individual basis. Sure, Marketers also focus on groups, but our target audiences are way too big to contact individually. You try contacting all American women between 25 and 50, who’ve graduated from college and have two kids. Yeah, I thought so.
Salespeople don’t develop products. Marketers do.
Marketing is more than just convincing people to buy. Marketing is also researching what a target population desires and then turning those desires into a product that can be sold. Salespeople work with the prospect to figure out which of the available products is best for her, yes, but they don’t develop products from scratch.
Sales are very track-able. Marketing is not.
If a sales guy makes a sale, he knows. Marketers don’t get that instant gratification. If a person comes in because she saw an ad, she might not even know it herself. She may think she was just walking down the street and was thirsty. I’ve heard it said that you have to be in front of a person 3 times before she buys. Does she remember the first time? Did she consciously notice it?
Sales are about sales. Marketing is about more than sales.
Salespeople sell. That is what they do and part of the reason they make a commission. You want a salesman to focus on selling. Marketers do more than sell. We manage reputations. Coca-Cola’s brand was worth $68.73 billion in 2009. It’s hard to say how much a single marketing action affects a brand’s image, but you can feel it when the marketing’s not there. Marketers get paid salary because their value is in more than driving sales, so rewarding them based on just sales doesn’t fit.