n business, not much happens until a transaction is agreed upon.

The strategy of
how to make these transactions occur is called marketing. The techniques and pr
ocedures for closing the sale is called sales.
Without sales, there is no business.
The successful business is always looking at ways to improve the strategy and pr
ocess. Successful businesses become students of their markets which is importan
t because the very way transactions occur is changing.
In the "commoditized" age, we focus on price and differentiation. Unless you are
a monopoly, some combination of price and benefits are the dynamics in the mark
eting and sales process today.
But just below the surface, we begin to see smart customers are getting smarter
all the time. Smart customers are value conscious when spending their money.
This increased awareness and knowledge has changed the fundamentals of selling.
Value-hungry consumers know they will have a higher potential return on their in
vestment if they can establish a good rapport with the vendor or seller.
It is not only "How can I get more out of the company," but also "What solutions
can you bring me today and in the future?"
Repeated contacts are needed to establish this relationship as trust does not co
me quickly. The contacts should be part of your marketing plan.
Fragmentation in the marketplace is continuing as the competition gets smarter t
oo. Competitors are constantly looking for the competitive edge that will allow
them to find their niche.
Price has become a primary concern -- usually falling in the very top priorities
. Customers want to get to price early and sales professionals want to get to pr
ice last. Clearly the concept is that the more value demonstrated the higher th
e price.
Profitability is the name of the game. If you work on commission and you give yo
ur commission away in the negotiation process, what have you gained?
It either generates profit or brings other benefits. If it does neither, then it
hurts the business.
Sales potential is shifting from the immediate sale to a series of ongoing long-
term sales. Although initial profits may be lower, the longer-term approach allo
ws for increased profitability by stabilizing sales and lowering the cost of sa
les.
Organization provides a structure so return is maximized. The problem is usually
one of balance. Regimented organizations are usually less productive in the new
er business environment.
Organizationally diffused businesses often waste resources.
The wisdom of developing one's individual strategy to be adaptable and responsiv
e will provide a key competitive advantage.
Adaptability and responsiveness are key skills for tomorrow's salesperson. The n
ature of the market shows no mercy.
Enthusiasm must be generated by the customer. Good employees prefer to work in a
business with enthusiastic customers.
It has become clear that the sales process of tomorrow will require more and dee
per skills than are required today.
Gone is the door-to-door peddler. Now the sales process requires greater coordin
ation.
The individual salesperson must possess an array of tools and skills and know ho
w to use them wisely. For those salespeople that can bring those kinds of skills
to the marketplace the rewards are well worth the trip.
One benefit is clear: they may prove to be the highest compensated employees in
the company.

In traditional business, marketing is what brings your prospect to your door, ge

ts them to call, send an email or in some cases actually buy. Sales is everythin
g that happens after the prospect has contacted you.
Traditional business is still with us though it has clearly been evolving very r
apidly in recent years. Although the general definitions of sales and marketing
still apply, business evolution has expanded and radically changed both concepts
.
And that evolution appears to be accelerating.
The most obvious difference is the blurring of the lines between sales and marke
ting. Most low consideration sales involve an emotion, impulse or unmet need. Th
e prospect or customer either buys 'on the spot' or they do not buy at all, just
like the grocery store. Almost everything we buy falls into this category.
These impulse or emotional sales include items such as hot dogs, toothpaste and
gasoline. In these sales the marketing and sales are all bound up into one 'pres
entation'. The good news is the sales process and cycle is short and sweet; the
bad news is everybody in the world is competing for that same sale.
Higher consideration sales, such as cars, houses, properties, colleges, etc., st
ill fit the more traditional divisions of sales and marketing. That is why many
companies split their sales and marketing departments; their respective function
s often can be separated.
Most companies set up their marketing departments to drive qualified prospects t
o their sales department. It is the sales department's job to assess needs, do p
resentations, prepare bids and contracts and of course, close the sale.
Although sales and marketing are both involved in buying a CD online or buying a
timeshare condo in Akumal, the two processes are very different. Yet even these
higher consideration sales are beginning to evolve. Many companies have their m
arketing departments identify and qualify their prospects before sending the 'le
ad' to the sales department.
The marketing department may be involved in a number of actual sales 'touch poin
ts' before the sales department gets the lead. The rule is form follows function
and function follows results. Of course with anything humans attempt the devil
is always in the details. It may seem like sales and marketing would be the same
across companies in the same vertical and even horizontal industries. Not so an
ymore.
How a company structures their sales and marketing processes often determines th
eir degree of success in the marketplace. Technology has now 'forced' smaller an
d medium sized companies to compete directly on strategy.
If everything else is equal between competitors, the one with the best strategy
wins. Those companies that don't wish to compete on strategy simply don't compet
e.
The easiest way to determine where marketing ends and sales begins in your compa
ny is to draw a flow chart of your sales cycle. Plot out each step as your prosp
ects find out about you, contact you, go though your sales presentation, ask que
stions and obtain enough information to make an informed decision. And of course
buy.
If your sales process is complex and involves repeat sales, don't forget to incl
ude the follow-up on ongoing sales potential.
The important point to remember is it is not as important to create a distinctio
n between sales and marketing as it is to develop marketing and sales strategies
that work. Consequently your marketing and sales departments may be the same or
they may be on opposite sides of the planet, depending on your sales cycle.
So the real answer to what is the difference between sales and marketing is ...i
t depends. It's relative because the answer will always be dependent on the appl
ication or sales cycle and process. How your company structures your sales and m
arketing functions will most likely determine whether your company succeeds and
fails.