Ending The War Between Sales Marketing (revised)

© 2006 by Chung, Chang kwon

a guide to HBR

Ending the war between

Sales & Marketing

By Philip Kotler, Neil Rackham, and Krishnaswamy

- The HBR July-August 2006

기자/기업실무자 CEO/임원 사과 입문자 교수

• Recommended Audience

©2006 by C. K. Chung2

권고드립니다.

본 자료는 HBR의 내용을 재 구성한 것이기 때문에 의미 달상 왜곡이 있을 수 있습니다. 온 한 이해를 해 원문을 읽어보시길 권고 드립니다. - 창권 Dream

창권- 서울 사범 , 헬싱키 MBA( 자인경 )-아시아나항공-휴넷(2000년부터 지 까지)(이사, 평생학습사업본부, 성공스쿨 마스터 코치)[email protected]

©2006 by C. K. Chung

In many companies, sales forces and marketers feud like Capulets and Montagues – with disastrous results.

Here’s how to get them to lay down their swords.


To Marketing

To Sales

Blames


To Marketing- Be out of touch with customers.

- Use too much budget.- only not to be proven effective

- otherwise useful to hire more salespeople

To Sales

Blames


To Marketing- Be out of touch with customers.

- Use too much budget.- only not to be proven effective

- otherwise useful to hire more salespeople

To Sales- No strategy

- Myoptic- too focused on individual customer experience

- blind to the future

Blames


Different roles for Marketing according to growing stages of company or product


Different roles for Marketing according to growing stages of company or product

1st stage , ＝Sales

2nd stage, an adjunct to the sales force

3rd stage , an independent player


2nd stage, an adjunct to the sales force

1. Helping relieve the sales force of some chores

2. Conducting research to calibrate the size of the market

3. Choosing the best markets and channels

4. Working with outside agencies on advertising and

promotion

5. Developing collateral materials to help the sales

force attract customers and close sales

6. Using direct mail, telemarketing, and trade shows


3rd stage , an independent player( more than 4 P’ ) – continued..

1. A marketing function inside Sales, a sales function

inside Marketing

2. Each function takes on tasks it believes the other

should be doing but isn’t.

3. The salespeople wish that the marketers worry about

future opportunities (long-term strategy ) and leave

the current opportunities ( individual and group

sales ) to them.


3rd stage , an independent player( more than 4 P’ )

4. More higher-level tasks like segmentation, more close

with Strategic Planning, Product Development,

Finance, and Manufacturing.

5. Brand managers become powerful.

6. A ‘marketing-led’’ company issue

7. Others question the marketers’ competencies,

experience and understanding to lead the organization.

8. During economic downturn, more vulnerable to be cut

than Sales


Why?

• Economic friction comes from

– Budget game

– Different point of view of pricing, promotion,

and product

– Tangible vs. intangible

– Long-term impact vs. short-term impact


Why?

• Cultural friction relies on that


Why?


– Marketers are

• Competitive advantage for the future.

• More analytical, data oriented, and project focused.

• Seemingly, not-in-action like, namely, behind a desk.


Why?


– Marketers are

• Competitive advantage for the future.

• More analytical, data oriented, and project focused.

• Seemingly, not-in-action like, namely, behind a desk.

– Salespeople are

• Focusing on existing and potential customers.

• Skilled relationship builders.

• Used to rejection and it doesn’t depress them.

• Living for closing a sale.


Why?

• Very different performance evaluation


Why?

• Very different performance evaluation

– Salespeople

• Satisfy quota goals, that’s it!

– Marketers

• Spend budget in program, not people, which takes

much long time to know whether a program has helped

to create long-term competitive advantage.


4 Types of Relationship

• Undefined– Independent – Conflict-resolution

• Defined– ‘Good fences make good neighbors.’– Process

• Aligned– Flexible boundary– Joint planning and training

• Integrated– ‘Rise or fall together’– Deeply embedded in management of key accounts


Do We Need to Be More Aligned?

The company is small.

The company has good informal relationships.

Marketing is still a sales support function.

Conflicts are evident between the two functions.

There’s duplication of effort between the functions; or tasks are falling through the cracks.

The functions compete for resources or funding.

Don’t make

any change

if……

Tighten the

relationship

between

Sales and

Marketing

if….

Undefined

move to Defined



The company’s products and services are fairly cut-and-dried.

Traditional marketing and sales roles work in this market.

There’s no clear and compelling reason to change.

Even with careful definition of roles, there’s duplication of effort between the functions; or tasks are falling through the cracks.

The markets is commoditized and makes a traditional sales force costly.

Products are developed, prototyped, or extensively customized during the sales process.

Products life cycles are short-ending, and technology turn-over is accelerating.

Defined

move to Aligned

Don’t make

any change

if……

Tighten the

relationship

between

Sales and

Marketing

if….



Don’t make

any change

if……

Tighten the

relationship

between

Sales and

Marketing

if….

The company lacks a culture of shared responsibility.

Sales and Marketing report separately.

The sales cycles is fairly short.

A common process or business funnel can be created for managing and measuring revenue-generating activities.

Aligned

move to Integrated



The company is small.

The company has good informal relationships.

Marketing is still a sales support function.

Conflicts are evident between the two functions.

There’s duplication of effort between the functions; or tasks are falling through the cracks.

The functions compete for resources or funding.

The company’s products and services are fairly cut-and-dried.

Traditional marketing and sales roles work in this market.

There’s no clear and compelling reason to change.

Even with careful definition of roles, there’s duplication of effort between the functions; or tasks are falling through the cracks.

The markets is commoditized and makes a traditional sales force costly.

Products are developed, prototyped, or extensively customized during the sales process.

Products life cycles are short-ending, and technology turn-over is accelerating.

The company lacks a culture of shared responsibility.

Sales and Marketing report separately.

The sales cycles is fairly short.

A common process or business funnel can be created for managing and measuring revenue-generating activities.

Don’t make any

change if……

Tighten the

relationship

between Sales

and Marketing if….

Undefined Defined Aligned

move to Defined move to Aligned move to Integrated


Moving from defined to aligned continued..

if ..

ü your industry is changing in significant ways.

ü the market is becoming commoditized, for example, a

traditional sales force may become costly.

ü the market is moving toward customization.



1. Encourage disciplined communication next page

2. Create joint assignments; rotate jobs

– Marketers → sit on important account-planning sessions

– Salespeople → sit on product-planning reviews

3. Appoint a liaison from Marketing to work with the sales force

4. Colocate marketers and salespeople

5. Improve sales force feedback



※ Encourage disciplined communication

- Hold regular meetings.

- Focus on action items.

- Develop systematic processes and guidelines like ;

- “You should involve the brand manager whenever the sales

opportunity is above $2 million.”

- “We will not go to print on any marketing collateral until

salespeople have reviewed it.”

- “Marketing will be invited to the top the critical account reviews.”


Moving from aligned to integratedcontinued..

1. Appoint a chief revenue ( or customer ) officer.

2. Define the steps in the marketing and sales funnels.nest page

3. Split Marketing into two groups.

① Upstream : strategic

• shares its insights with senior managers and product developers

② Downstream : tactical

• help salespeople develop and qualify leads.

4. Set shared revenue targets and reward systems.

5. Integrate Sales and Marketing metrics.


Define the steps in the marketing and sales funnels.

• Integrating Marketing into the sales

– Solution collateral

• organized templates and customizing guides

– when customers are nearing a decision,

Marketing ⇒ case study material, success stories,

customers’ concerns

– during contract negotiations

Marketing ⇒ advice on planning and pricing

• The upstream, strategic decision should be matched

by Sales’ involvement


The Buying Funnel


How Well Do Sales and Marketing Work Together?

Sales and Marketing Integration Checklist


후기

• 듀 의 사례

Customer Interview를 할 때에는 꼭 마 터와 업 그리고 생산담당이 같이 한다고 합니다. 인터뷰이후에 다시 회사로 와서는 voice recording 된 것을 토 로 각 자가 리포트를 작성하는데 놀랍게도 세 부서의 리포트가 다르다는 것입니다. 자기가 보고 싶은 것만 보았기 때문이지요. 이런 단계에서 다시 interviewee에게 결을 내려달라고 합니다. 그 결과 모두가 틀렸다는 것입니다. 이런 식의 feedback system을 통해서 타 부서와의 차이에

해 알게 되고, 의견을 좁힐 수 있다는 것이지요. 이런 인터뷰 트 이닝을 해서 1년 반이나 투자한다고 합니다.

• 본 아티클을 통해서 제일 가슴에 남는 것은 ‘ 업과 마 은서로 다르다’라는 것을 인 하는 것에서부터 모든 해결 을시작되는 것이 아닌가라는 입니다. 서로에 한 인 은 열린 마음을 가질 때에만이 가능할 것 같습니다.

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Ending The War Between Sales Marketing (revised)