Sales and Marketing: Who's to Blame and What to Do?.
The sacramental questions for Russians that I risked putting in the title are relevant in many life situations that, in fact, make up our existence.
But let's get down to specifics, namely, to the problems that sometimes slow down the work of market mechanisms in a particular company. In the TSB industry, believe me, this happens no less often than in other market segments.
Who is to blame and what to do when, for example, members of one team suddenly become opposing forces in a difficult struggle for the success and prosperity of the business? Nonsense, you will say, and you will be wrong. Moreover, it is very easy to be convinced of this very wrongness: it is enough to look closely at the relationship between marketers and sales managers of your company.
At turning points in the organization's work (economic downturn in the industry, periods of stagnation of the organization itself, when the company's management changes, etc.), the existing misunderstanding of the tasks and expected results facing the marketing and sales departments can develop into mutual dissatisfaction with each other's work, and sometimes even into conflicts. In the context of falling sales, marketers often blame sales managers for unprofessional execution of an otherwise flawless plan. They, in turn, blame marketers for ineffective distribution of budget funds and illiterate pricing policy. In other words, sales managers are sure that marketers have lost touch with the reality of business. Marketers, in turn, are convinced that sales managers are too focused on satisfying the requirements of individual customers and are unable to look to the future. The dispute about who is more to blame and whose value in the company is higher can last for years, without ever leading to a constructive dialogue.
It is obvious that effective interaction between marketers and salespeople is one of the foundations of a company's successful operation, when there is a significant increase in key performance indicators: the sales cycle is shortened, and the costs of promoting a product and the costs of one transaction are reduced. It should be noted that the tension between marketers and sales managers is caused not only by economic reasons (budget allocation, for example), but also by mental ones. Despite this, it is not difficult for a company to evaluate the effectiveness of interaction between departments, and, having set a specific goal, to increase it.
The Role of Marketing in a Company
Marketing functions can vary significantly from company to company. Most small and medium-sized businesses do not have marketing departments at all. Their marketing activity is often expressed by individual sales managers who recognize the need for marketing support, or by the work of an advertising agency under an outsourcing agreement.
At best, such organizations have one marketer on staff, whose job it is to support sales managers in attracting customers by preparing advertising materials, direct mailing, telemarketing, organizing participation in exhibitions, etc.
As the organization grows and develops, there is an awareness of the need for professional market research, determining growth potential, developing sales plans and positioning the company in the market. The marketing department becomes independent and begins to compete for the distribution of the organization's finances (including with the sales department). It is at this stage of development that major conflicts arise, and the task of effective dialogue becomes relevant.
Why is it so difficult to reach an agreement?
As mentioned above, the roots of misunderstanding between marketers and sellers are of different nature. First of all, economic, which is related to the need to share financial investments. For example, the effectiveness of expenses on product promotion is questioned. The task of marketing is to inform customers, create interest in them, and form preferences among potential consumers of the product. Sales managers consider large expenses on promotion (participation in exhibitions, advertising in the media, etc.) to be ineffective. In the understanding of the sales manager, opening an additional position in his department and training managers will bring more results.
Unfortunately, in practice, the distribution of budgets between both departments is often determined by the degree of influence on the management of one or another department. And, as a rule, if the top manager of an organization has extensive sales experience in the past, he will unconsciously give preference to sales. Moreover, it is much easier and faster to evaluate the results of the work of sellers. And, conversely, having extensive marketing experience, the manager will favor marketers.
Mental differences between marketers and sales managers are the most difficult barrier to effective interaction. In most cases, the parties involve different people in the work, who organize and spend their working time differently. Marketers are more inclined to analyze the situation, study the main indicators and focus on individual projects. However, this approach very often looks like a focus on the process, not on the result. Sales managers, in turn, spend a lot of time communicating with existing and potential customers. They professionally build communication, the purpose of which is a measurable deal.
What to do?
Management experts recommend the following actions to help marketers and sales managers work together more effectively:
Organize regular joint meetings of the marketing and sales departments (once a quarter or once a month). To make these meetings practical, draw up an agenda that includes the most pressing issues and existing problems. Strive to ensure that the meeting results in an action plan and problems to be discussed at the next meeting.
Create opportunities for collaboration. This could be joint participation in preparation for an exhibition or conference, or a discussion of the results of an event in the “result assessment – action plan” format.
Provide feedback. Feedback will allow you to more effectively evaluate your marketing activities and plan future ones based on sales needs. Feedback can be achieved by establishing reporting rules and parameters. In this case, it is important to follow the principle of «reporting for sales» rather than «sales for reporting».
Provide a common workspace for marketers and salespeople. The truth is that being physically closer to a person forces us to communicate with them more — as a result, conditions for mutual understanding are created.
Divide the marketing department (if you have a large marketing department) into two groups: strategic and operational marketing. The tasks of strategic marketing should include monitoring consumer preferences, and the tasks of operational marketing should include developing campaigns to promote products and support sales. The sales department should be involved in the implementation of both functions.
Developing integrated indicators of the bonus and motivation system.
This list can be supplemented based on the individual working conditions of each company.