09
Oct
How Are Sales and Marketing aligned?
By: Ray Montie
Sales and Marketing sometimes seem to be synonymous with each other. Yet, in too many organizations, Sales and Marketing often feud like Montagues and Capulets. Salespeople often accuse marketing people of being too out of touch with today’s consumers or setting sales prices too high. Marketing people often insist that salespeople concentrate only on individual clients and narrow long-term sales to maximize short-term gains. The often heated dialog continues to this day with little sign of an end in sight. However, there are actually some excellent ways for a business owner to use both sales and marketing techniques to increase revenues while lowering expenses.
Sales and Marketing should be treated like professionals who have come together to sell a product. There is a fine line between selling and marketing. Salespeople need to have a wide variety of skills, including effective communication skills, good listening skills, and good negotiation skills. But they need to distinguish themselves from the marketing group which may only include professionals with advertising background, although they may be involved in part or in full in the decision making process. Sales and Marketing should work closely with the sales force to identify areas for improvement.
The sales process should be well defined and the roles and responsibilities clearly defined. Revenue and marketing teams should meet routinely to discuss the current sales process, develop new sales strategies, and implement the changes that are necessary. It is important for each individual salesperson to understand the difference between revenue and marketing. Revenue includes the money coming in from the sales process, while marketing includes the methods, tools, and other aspects of the marketing strategy that bring in the money.
In addition to hiring the right people, the organization needs to properly train its sales and marketing teams. All employees should be taught the same basic sales skills and the same basic marketing skills. The employees who are hired should be given the opportunity to develop and test their own sales strategies. They should also be trained on how to use the social media tools that will help them sell the products. This allows the business units to train their employees on using these marketing tools without having to provide a large amount of financial or other resources.
There are two types of revenue and marketing strategies that a company can adopt. Revenue plans refer to the number of products that a business unit plans to sell over a short period of time. Sales plans can also be long term. Short term sales plans involve smaller quantities of products over a shorter period of time. Long term sales plans involve larger quantities of products over a longer period of time.
The second type of strategy is a sales strategy or a marketing plan. A sales strategy refers to the set of activities, tactics, and techniques that a sales team will adopt to sell a product or service. A marketing plan on the other hand, refers to the set of activities, tactics, and techniques that a marketing team will adopt to market a product or service to the end user. In essence, both of these two business functions are part of the same goal, which is to increase the revenue of the business unit.
Both of these marketing strategies require extensive research and development. Sales and marketing teams must agree on the goals of each before beginning the implementation phase. Sales and marketing teams must communicate these goals continuously to ensure that no one is left out of the loop. This helps to ensure that both sales teams and marketing teams are operating in similar fashion. In addition, they also can share information between teams on a regular basis to make sure that there are no communication barriers between their departments.
Revenue and marketing alignment is not a one-time thing. It must be maintained on a regular basis, especially as the business grows. A good example of maintaining revenue alignment is by having a balanced cash flow at all times. Revenue aligned sales teams should also be made responsible for budgeting. When all of these things are in place, you can be assured that you have found a solid way to increase your revenue.