How We View Ourselves is Who We Are
A friend and I have had a long running discussion about the way
that many companies have departmentalized the functions of “sales and marketing”.
First of all it seems that many agri-food technology
startups put them in the same box on the org chart. While it might seem logical
due to a perceived inherent close relationship between the two, upon further
inspection these distinct disciplines are as different as software development
and accounting. Which begs the question why any organization would have IT coupled
with accounting – which some do. But that is a different discussion entirely.
Looking at the functions of each one sees that while they
are tasked with the ultimate goal of moving product or services to the intended
market their methods for doing so are not in the least way related.
There is a Difference
Marketing, and I am going to simplify here, is all about
product definition, perception, branding, pricing, positioning, messaging, promoting and all of that
other stuff that goes into laying the foundation for the sales staff as a means
to assist in the adoption process.
Sales is the act of converting a prospect into a customer by
having those people or organizations exchange money for those products and
services. OK. I have really oversimplified that one!
It is very difficult to have one without the other. Salespeople
are not good marketers and we all know that marketers can be lousy salespeople.
We need the unique expertise and talents of each in order to be successful in
the agri-food technology market segment.
Carts and Horses
Secondly, a common error in establishing the department name
is when companies assign the name as “Sales and Marketing”. Combining them is
the first mistake but when we don’t lead
with marketing in order to support sales and not the other way around we have
missed a key step towards success. It may seem trivial but by transposing these
activities we fail to recognize the true nature of the challenge in engaging the market.
In any business planning process one cannot possibly
establish sales projections without conducting the necessary market research
first. Market size, demographics, customer profiling, value propositions,
pricing, SWAT analysis and all the other things that marketing provides the
sales group are what position them for success.
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