Marketing and Sales - What's the Difference?
Marketing and Sales - The Crucial Difference
Marketing gets people interested. Sales helps them to become customers. When we fail to understand this basic difference, we lose customers and we lose money.
Marketing and Sales - We Need Both
Together, marketing and sales are a pipeline. What's in the pipe? Cash! Cash from our customers coming in to give us money when they buy our products and services.
We get cash when our customers buy and item or sign a contract. But what brings the customers to that point? First marketing, then sales. Similarly, we put gas into our car at a gas station. But what puts gas in our car? Oil wells, refineries, pipelines, trucks, and a gas pump. Please see the comparison in Table 1: The Marketing Pipeline and the Gas Pipeline.
Table 1: The Marketing Pipeline and The Gas Pipeline
Find the gas
Find the Target Market
Get the Customer Interested
Turn Crude Oil Into Gasoline
Provide Sales Support
Get the Gas to the Gas Station
Get it to you
Get the Customer Focused on the Decision
Make Sure Pumps Are Working
Open Gas Station
Car at the Pump
Finding Your Customers - Like Prospecting for Oil
First Marketing, Then Sales
The gas company has to make the gas before they can sell it to you. In the same way, marketing has to make interested prospects before the prospects will become customers and pay you cash.
This distinction is important for a simple reason. We know when we need to improve sales. But is the problem really in sales, or are the salespeople doing just fine, and the problem is earlier in the pipeline - in marketing? By distinguishing sales from marketing, we can find the real problem and fix it, instead of throwing money where the problem is not, and seeing no improvement.
I Learned the Hard Way
I started my own business as a trainer and consultant in 1993. I got lucky: I had a marketing company setting me up with classes for the first 7 years. I wrote courses, flew on airplanes, and taught classes. When I taught classes, I showed prospective clients that I knew my stuff. I was actually being paid to market my consulting services!
When my relationship with that marketing company ended in 2000, I had to figure out how to do my own marketing and sales. And I didn't even know the difference!
Fortunately, I had two friends who were top-notch sales trainers. They checked me out. I was great at sales!
So why wasn't I making any money? Because I didn't know anything about marketing!
Once I knew the difference, I saw that marketing is preparation and support for sales. Sales is the gas station. Marketing is the prospecting, the oil drilling, the refining of crude oil into gasoline, and the delivery of the gas to the gas station.
What Marketing Does
- Identifies the target market. That is, it identifies the people or businesses who will buy our products or services, our prospects.
- Reaches the target market. People or businesses in the target market become prospective customers when they become aware that we exist. Once they know we are here to serve them, they become prospective customers.
- Gets them interested. Marketing, through advertising, promotion, public relations, and networking, gets people interested in what we offer.
- Supports sales. Salesmen and women should focus on the customer. So marketing should provide the salespeople with all they need to explain the products and services to the customer.
To learn more marketing theory, read Marketing Psychology for Small Business. For a guide to planning and succeeding in all your marketing, read Small Business Marketing Strategy - Do's and Don'ts.
Sales - Pumping Gas
What Sales Does
Sales picks up where marketing leaves off:
- Sales knows the products, services, and prospective customer concerns. By studying the sales support materials, salesmen and saleswomen should know our products and services, and should be ready to answer questions from prospective customers and guide them to making good decisions.
- Sales helps the prospective customer understand and evaluate. Prospective customers need to come to understand our products, services, and company, and be confident in their choice. Or, if we are not a good match for them, we want them to see that early and decide not to buy, but maybe to refer others to us.
- Sales keeps the prospective customer focused until they decide. Nobody likes to be pushed into a decision. And yet, if a prospective customer loses focus, he or she will just walk away without buying. So the salesman or saleswoman needs to keep the customer focused until the customer convinces himself or herself to say "Yes, I'll buy!"
- Sales closes the deal. Sales moves the customer through the process of making payment or signing a contract so they receive our goods and services.
The Transition From Marketing to Sales
When we have a specific prospective customer in hand, we are at the transition from marketing to sales. The level of interest of the prospect indicates what type of sales effort is needed. There are four possibilities:
- Bad lead. Here, marketing has failed. The prospective customer is not in the target market, and no good sale is possible.
- Cold lead. This is a prospect who is in the target market, but who doesn't know us, doesn't trust us, and may not be looking to buy anything right now.
- Warm lead. This is a prospect who is interested in some way. Either they know the value of our company, or they have a current need for our products or services.
- Hot lead. This is a prospect who is looking to buy now. We just have to make sure they buy from us, and not from a competitor. Turn them on and close the deal!
Sales people should know which kind of lead they are getting. Sales methods are very different for cold, warm, and hot leads. Salespeople should be skilled at the type of sales right for the prospects that they are given.
Internet, Social Media, & Mobile Marketing: It's the Same!
So far, we've been talking as if there is a department called "marketing" and a department called "sales," with salespeople in it. But these days, everything can be automated. Even when it is automated, and there are no sales people, the distinction between marketing and sales is just the same.
Internet Marketing and Sales
On the Internet, marketing is everything that gets people to our website. Sales is the website, from the customer's arrival to the shopping cart (or contact page).
Social Media Marketing
Social media is generally used for marketing. We use Facebook, Pinterest, or Twitter to bring people to a website where we do our sales. Sometimes, the sale can be made right on a Facebook page that has been set up for sales, like a website.
Mobile marketing is fast, because our customers are on the go. The process of setting up the mobile marketing to reach prospective customers and get them aware of us is marketing. And once they are aware, getting them to buy from their iPhones or Androids, or to show up at our store or restaurant, that's sales.
Technologies change, but the line between sales and marketing stays the same. Why? Because the concepts of sales and marketing are based in the psychology of decision-making. That stays the same as long as we are selling to people, no matter where, when, or how we close the deal.
Site Navigation Tip
A good website works for both the well-informed customer and the uninformed customer. It works for the enthusiastic customer and the doubtful customer, too.
The well-informed, enthusiastic customer should be able to find a direct, clear path to the catalog and the shopping cart to close the deal with as few clicks as possible.
The enthusiastic customer with questions should be able to see and read images that give confidence and answer questions, such as FAQ about About Us pages.
The well-informed, doubtful customer should see testimonials and endorsements that convince them to buy.
The uninformed, uncertain customer should be engaged and even entertained so that they stay, learn, get excited, and then buy.
Design your navigation and content to convince all your prospective customers.
Diagnose Your Sales: What's Not Working?
If you're reading this article, you probably either want to set up a sales and marketing system, or to fix one that isn't working. Now that you know the difference between sales and marketing, you can do just that.
Let's say that sales are low, and you want to change that. Before running around with quick fixes, ask these questions and find out what needs to be fixed, sales or marketing.
For a Team of Salespeople
For your salespeople:
- Do they know all they need to know about your products and services? If not, train them.
- Do they have all of the appropriate marketing and sales materials for themselves and their prospective customers? If not, improve those materials and make them available.
- Do they have an effective, efficient sales management (CRM) system? If not, provide it, so they can focus on the customer.
- Do they have training in effective selling techniques that work with your target market? If not, provide the right type of training.
- Are they given appropriately qualified cold, warm, or hot leads? If not, improve your system of leads.
It may take some research to answer these questions. For example, you may need to find out why prospects who don't buy choose not to buy. Survey research may be in order!
For a Website
To find out why a web site is not producing enough sales, we need to evaluate the website statistics:
- Is enough traffic coming to the site? If not, do better marketing to bring people from your target market to the website.
- Is the right traffic coming to the site? This is a harder question to answer. But if you see that people are arriving at the site and leaving almost immediately, then that is a sign that your marketing or advertising is off target. People leave when they don't see what they want. So if they leave quickly, maybe your ads are giving an impression that you are selling one thing, when you really sell something else.
- Is your site driving people away? Either go to your site, imagining yourself as a prospective customer, or do an actual study, inviting people to look at your site. Is the site irritating or hard to navigate? Is it ugly or offensive? Is it confusing? Are there simply too many clicks? Is there too much information, or too little? If any of these are issues, redesign the site to create an easy flow to the shopping cart. Make sure there is enough information for the client, but not too much. Set up excellent navigation.
Finding and fixing the real problem is a lot cheaper and more effective than throwing money at the wrong problem.
Improve Sales Results
Which of these steps will improve your sales results?
Improve Sales and Marketing: Take Your Next Step Now
Is your thinking clear now? Can you draw a clear line between sales and marketing? If you can, then you know, or you can figure out, what you can do to improve sales results.
Unfortunately, many companies do not work to clearly line up marketing and sales, so its hard to find the weak link. And the same is true with Internet or Social Media marketing and website design. When we understand how the marketing pipeline works from target market through marketing to sales to a closed deal, money in the bank, and a happy customer, we can fix what isn't working and improve sales results.
What's your next step?