What’s the Difference Between Sales and Marketing
Wednesday, September 26th, 2007Recently a client asked me this question. Or, more correctly, passed on the question from one of his associates who – you might guess – was involved in the company’s sales. I’ve heard this question many times and usually there’s an agenda behind it that goes something like…
”Why are we wasting time and money on this ‘marketing’…stuff…when we should put our all our effort and available resources into sales which gets results and that we can track?”
Now I don’t mean to put words into this other fellow’s mouth. He may have been asking for a simple definition of the two concepts. If so, I’m going to turn to Peter Drucker for his answer – or at least my paraphrase of his answer:
“The purpose of business is to create a customer and meet his needs. In consequence every business enterprise has just two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
For those who have asked the question cited in the title and fail to grasp the answer implied in the previous quote, he goes on to say:
“The aim of marketing is to make selling superfluous.”
Thank you Peter.
If you still think I’ve dodged the question by citing a revered pundit I’ll give my definition… Marketing is indentifying the wants and needs of your target customer(s) and then satisfying those needs in a better way than your competitors.
Sales – if by that you mean individuals working the phones, making calls, taking meetings and (hopefully) writing orders – can be part of that, but the other definition of sales – transactions – can happen without any human involvement if you’ve done a good job of marketing.
One example comes to mind. In the freezer section of my local grocery store, shelved between Ben & Jerry and Haagen Dazs, I see Starbucks coffee ice cream. At the time I was serial visitor of Starbucks so I bought the ice cream. Prior to the “sale” I had seen no ads, encountered no promotions, nor been persuaded by no individuals of the merits of the product. My positive associations with the Starbucks brand gave me the confidence to plunk down my four bucks for the pint.
“Duuhh!” I hear someone in the back of the room snicker. “That’s the power of brand extensions!” I’ll deal with you later, and anyway, this topic wasn’t written for anyone who understands how brands work.
Back to Marketing 101…and the difference between marketing and sales. Hopefully, I’ve communicated that Sales is part of Marketing, like kicking your feet is part of swimming. And, as with swimming where you can swim without ever kicking your feet, you can market successfully without “selling” – if you’re really good and really lucky.
In truth and in reality, sales is key for most businesses because they don’t pay sufficient attention to marketing. For those benighted folks here is a brief tutorial that I’ve cobbled together from long-forgotten sources. I mention this by way of saying that I claim no authorship for the following…merely respect of its value.
The four ”P’s” of marketing…
Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user’s needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.
Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary – it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention.
Promotion: This includes advertising, sales promotion, publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company.
Placement (or distribution): refers to how the product gets to the customer; for example, point of sale placement or retailing.
And for extra credit, here’s three more that apply to marketing a business that delivers services instead of products…
People: Any person coming into contact with customers can have an impact on overall satisfaction because, in the customer’s eyes, they are generally inseparable from the total service. As a result of this, they must be appropriately trained, well motivated and the right type of person.
Process: This is the process involved in providing a service and the behavior of people, which can be crucial to customer satisfaction.
Proof: Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonials or demonstrations.






