Sales vs. Marketing: Which One to Use?

When people use the word marketing to describe sales, it’s enough to make any true marketing professional’s blood boil.  While sales and marketing are used interchangeably way too often, there IS a distinct difference.  So, don’t ask whether you should focus on sales or marketing…because the answer is both.

Think of marketing as a machine and sales as one important cog to keep that machine running.  You see, marketing and sales are two different things that are – or should be – part of a company’s business strategy.  Sales is quite straight forward. It involves actually selling the company’s products or service to its customers. Marketing is the process of communicating the value of a product or service to customers, so that the product or service sells.

Marketing has a much larger scope than sales.  It is about how a company places itself in the market and in the eyes of its customers and potential customers. It also incorporates what products the company sells. In short, marketing ensures that sales take place; that a sales team is armed with the tools needed to promote and highlight services and products; that the customers are confident enough to buy from the company. Hence, it can be said that sales is a PART of marketing.

A successful marketing plan has a lot of moving components.  But, to truly be effective, marketing requires the 4 Ps - Product, Price, Place and Promotion. Marketing is the first and the broadest step to make sales effective.  Once the mix is in place, sales can take off!

The 4 Ps of Marketing

Product – the product is either a tangible good or an intangible service that seems to meet a specific customer need or demand. All products follow a logical product life cycle and it is vital to understand and plan for the various stages and their unique challenges. It is important to recognize those problems that the product is attempting to solve. The benefits offered by the product and all its features need to be understood and the unique selling proposition of the product need to be studied. In addition, the target audience for this product needs to be identified and understood.

Price – the price is the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells. What is the perceived value of the product to the customer?  If a product is priced higher or lower than its perceived value, then it will not sell. So, it’s important to understand how a customer sees what you are selling. If there is a positive customer value, then a product may be successfully priced higher than its “monetary value”. But, if a product has little value in the eyes of the consumer, then it may need to be underpriced to sell. Price may also be affected by how competitors price a rival product.

Promotion - marketing communication strategies and techniques all fall under promotion.  From advertising to sales promotions to special offers and public relations.   Whatever the channel used, it is necessary for it to be suitable for the product, the price and the end user it is being marketed to. What the difference between marketing and promotion? Promotion, like sales is one cog in the marketing machine.  It is the communication aspect of the marketing function.

Place – Also referred to as placement, this deals with how the product will be provided to the customer. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product. Is it primarily on-line, in-stores, virtual, etc.?  How is it being promoted and where?  Social media?  Traditional media?  Determining your true target audience and their habits is key to getting the place or placement right.  Place can also include where in the store or in the community is this product or service located?  Top shelf?  Bottom shelf? Check-out lane?  Drawing the right customer to the right place at the right time is important!

What else is Marketing?

The essential goal of marketing is to increase the desirability and value of the product and of the company to the customer.  Beyond sales, there are so many things that go into effective marketing, like:

Consumer research - to identify the needs of the customers.

Product development - which aims to design a product to meet those needs.

Advertising -  to raise awareness, build the brand and to generate interest in the product.

All of the above, if done right, should naturally lead to a position where sales can happen.

Summary

Marketing is the reason a person goes to a particular store or place.  Sales is the reason that a person buys a product or service from that particular store or place.  For example, a retail store gets you there through marketing.  The associate sells you a particular product within that store.

Still not sure where marketing ends and sales begins?  Good, because it is a fluid process wherein all cogs need to work together.  When that happens, so does success!

"Old-School" Branding Techniques Still Have a Place In Today’s Market

Everything is so fast-paced these days: You go to bed thinking you’ve mastered the world of technology and wake up to a brand new invention – the ‘latest craze’ in communication or business development. 

If you think it’s hard for you to keep up with change – think of it from a company’s standpoint.  They have to keep up and stay relevant, they have to adapt their branding, marketing and sales efforts at the same or faster pace than new technology emerges.

The show Mad Men encapsulated the old-school way of advertising – designing billboards and magazine ads relevant to those times.  These jobs still get done, just in a different way and with different tools.  Today, instant publishing is all the rage. Despite the changes that the marketing industry has experienced, some old-school branding and marketing strategies just as effective today as they were decades ago.   

The following are a few branding and marketing strategies that are just as valuable today as yesteryear:

Business cards. Business cards are less common now that texts and apps and email are so prevalent, but they’re still effective. Business cards visually represent you and your brand -- they have your logo and contact information, which should stand out in your prospect’s mind. When designing your business card, make it one that people will remember so that when a prospect needs your type of services, he or she will think of you first.

Snail mail. We all love getting personal mail.  Most of the time, our trips to the mailbox result in bills or advertising disguised as letters.  You don’t have to trick consumers into opening your mail in order to have a successful snail mail campaign. Although impersonal ads are disappointing, coupons and discount notifications are not. There are many card companies that can help you become more personal and relevant to your potential and current customers.

Public Speaking. Speaking at events is a great way to get your company’s name out to people already interested in your industry. Search out events related to your field or let connections know that you are available to speak; then prepare an address that is educational and meaningful and will make a lasting impression.

Think about the last time you attended an event about something you were interested in. Did any of the speakers stand out to you? Why?

Publishing testimonials.  At SK Consulting, we preach the need for testimonials. Customers turn to online reviews and testimonials all the time before making purchasing decisions or deciding which service provider they want to use.

Asking existing clients for testimonials and then publishing their words on your website and printed marketing materials helps establish trust.  Don’t forget to ask your customers to write a review on Facebook and Google – provide them the direct link to where their words can be published.

Sponsorships for community events. Whether a local high school football team or a charity walk to raise cancer awareness, an event that gets you involved in your community – and noticed -  will raise awareness of your company and the things you do. It makes for great PR as well because it shows that you and/or your company care about the community and are dedicated to giving back.

Cold calls. The term “cold calls” has a negative connotation because rejection is tough and some people just aren’t cut out for sales. Assigning one of those people to cold calling won’t result in much success. But, others do their best work when making cold calls.

With cold calls, you need a plan in place that includes a list of potential customers and a ‘non-scripted’ script. Once you feel confident in your pitch, call the prospects on the list. Don’t be afraid to digress a little bit or indulge in a personal conversation.

A branding redesign. If your brand has been around a while, it may be time for a redesign.  Although this can be a difficult undertaking, redesigning your brand, logo and the overall look of your company can get you a lot of attention. This is especially true if your branding is outdated. Old customers will enjoy a fresh new look while potential customers will get curious and pay more attention because, let’s face it, sometimes we do judge books by their covers.

Trade shows.  Whether you attend trade shows in your local area or travel to national and even global events, participating in and presenting at trade shows is a great way to increase brand recognition. Not only can you get your name out there, but you can show potential partners and customers your products, what they do and what else you have been working on.

The above strategies may not be the newest ways to brand and market your business.  But, they have been tried, tested and proven true. If you need help incorporating traditional strategies into your forward-thinking marketing plan, contact the experts at SK Consulting today!