The Sales & Marketing InterfaceThe Sales & Marketing Interface

Why can’t they just get along?Why can’t they just get along?

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

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