Ending the War between Marketing and Sales

Philip Kotler, Neil Rackham, Suj Krishnaswamy HBR July-August 2006 In bad times, marketing blame sales for poor execution of a brilliant marketing plan while the sales team feels that marketing is not in touch with reality. They set high prices, spend too much on advertising and hardly leave any budget for the people who really bring in the revenues. The question really is who supports whom. A view is that marketing should look at long term strategy leaving the short term to the sales team. Smaller firms equate marketing with selling. They start with a marketing person to coordinate with outside agencies in terms of research, advertising as a support to the sales team. They then expand into telemarketing, direct mail and trade shows as further support. As companies grow, they realise marketing starts with segmentation, targeting and positioning and then goes on to the four Ps. The firm has then moved from product management to brand management. Interaction is then increased between Marketing and all other functional areas. The emphasis is on turning the company to be marketing-led.

SOURCES OF CONFLICT
There are two sources of friction between Sales and Marketing economic and cultural. On the economic front Marketing wants Sales to sell the price and spends heavily to create awareness, interest and desire. The quandary is always whether the organisation should spend more on Marketing or Sales. The cultural conflict is more pronounced. Marketing attracts people with more formal education with analytical skills, data oriented and project focused. Salespeople, on the other hand, have to concentrate on communication and relationship building. They are the men of action while Marketing is seen as the domain of thinkers. Marketing wants Sales to push products with high margins while Sales likes pushing products which satisfy quota goals. Marketing focuses more on programmes while Sales relies on people.

RELATIONSHIP BETWEEN MARKETING AND SALES

The relationship between Sales and Marketing moves from undefined to defined to aligned and rarely to fully integrated. In undefined, the two grow independently with little interaction between the two and meetings are usually to resolve conflicts. The relationships are informal and marketing is seen as a support function to Sales. In case of recurrent conflicts, duplication of efforts it is important to move to defined. In defined, processes and rules are set up to prevent disputes. This is most suitable when companys products and services are fairly cut and dried. Organisations go in for the traditional Marketing and Sales divisions. With product life cycles shortening and extensive customisation Sales and Marketing have to be aligned. In aligned, clear but flexible boundaries are set with joint planning and training. There is high interaction on key accounts. This is suitable for fairly short sales cycles.

In integrated, relationships are restructured to share structures, systems and rewards. Metrics are shared. It calls for disciplined communication with regular meetings between Marketing and Sales, It is important to create joint assignments and to rotate jobs. Marketing people should learn to live with the sales people. Ensure physical proximity between Marketing and Sales people. Sales feedback forms have to be made more effective and need to be rewarded.

THE MARKETING AND SALES FUNNEL

Normally both sides blame each other for a weak plan or for poor execution. The question therefore rises whether the two should be involved in each others funnels. There may be merit to split Marketing into two groups upstream (strategic) and downstream (tactical). The latter becomes the interface while the former is the interface with product development and concentrates on the long term view. Integration involves setting shared revenue targets and rewards for Marketing and Sales. The metrics have also to be integrated. The establishment of metrics for Sales and downstream Marketing is relatively easy. Unfortunately for upstream Marketing persons, the metrics are softer and hence judgemental. PERSONAL NOTE: In most companies Sales and Marketing are defined or aligned and rarely integrated.