making sure sales & marketing work together
DESCRIPTION
This details the reasons for conflict between sales and marketing and how to effectively to work together at different stages in the company life cycle. Based on Harvard Business Review article co-written by Phil Kotler of Northwestern University. Rick Steinbrenner Global Consumer Brand & Product MarketerTRANSCRIPT
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The Sales & Marketing InterfaceThe Sales & Marketing Interface
Why can’t they just get along?Why can’t they just get along?
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Sales-Marketing Interface: Why Does It Exist?
Marketing blames sales for poor execution of their “brilliant” marketing plan
Sales insists Marketing sets the price too high and/or uses too much of the support budget inadvertising. They believe money better spent with customers
Marketing believes Sales is too myopic – focusing on individual customers and not the end-user/market segments
Sales believes Marketing is out of touch with what’s really going on with customers – doesn’t listen well
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Why Sales & Marketing Aren’t On The Same Page?Two Main Issues:
Economic Issues: Cultural Issues:
Who sets the retail and/or customer acquisition price?
Do we spend ad/promo dollars against the ultimate consumer and/or customer and who decides the mix?
Does the product create value vs. competitive offerings or is it just “me-too”.
Who decides where we sell the product? Big-box vs. specialty vs. 2-3 step distribution.
Sales & Marketing usually have different education and skill-sets; fact-based vs. relationship selling.
Performance metrics usually different. Marketing: $ sales and margin % by product lines Sales: $ sales and customer margin % Definition of short vs. long term results
Lack of communication between groups.
Sales and/or marketing resources aren’t readily available to meet desired corporate objectives.
Source: Kotler, Rackham & Krishnaswamy
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Sales-Marketing Conflict: Can Hurt Firm’s Performance
Sales/Marketing working on same things – decreases efficiency and effectiveness
Cost of sales can be higher than needed due to this replication of effort and inefficiency
Sales & Marketing not on same “messaging” page with customers – result is confusion and lost sales opportunities
Can result in longer sales cycles to get replenishment orders
Can result in lost distribution of current items if sales/marketing don’t work together
Lower chances for commercial success of new product launches if marketing doesn’t take into customer planning/planogram cycles
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Sales/Marketing Relationships Need To Evolve Over Time
Undefined Defined Aligned
Do Nothing If: If the company is small
Have good informal relationships
Marketing is still a sales support function – usually MARCOM.
Company’s products/services are fairly well defined.
Traditional marketing and sales roles work in this market
No clear reason for change
Company lacks a culture of shared responsibility
Sales and marketing report separately to the General Manager
Customer purchase cycles are fairly short
Tighten up the Sales/Marketing Relationship If:
Conflicts are evident
Duplication of efforts or things falling through the cracks
Sales/Marketing compete for resources and/or support $’s.
Although roles better defined, duplication of efforts and things continue to fall though cracks
Market is commoditized and highly price competitive
Product development continues through the sales/launch process
Product life cycles are shortening due to advancing technology
Develop a common process for managing /measuring revenue generating activities – sales or marketing
Source: Kotler, Rackham & Krishnaswamy
Move to Defined Move to Aligned Move to Integrated