Which Comes
First, Sales or Marketing?
by Dera DeRoche-Jolet
The age old question is: "Which came first, the chicken or the egg?"
As far as I know, no one has ever answered that question, at least to
my satisfaction. My question to you is a little easier and less philosophical,
but might be trickier: "Which comes first, sales or marketing?"
If your company is sophisticated enough to have both a sales department
and a marketing department, you might answer, it doesn't matter, they
work together. That's only partially true. At least it's a better answer
than "What marketing department?"
It's no secret that many alarm companies are not meeting their full potential.
The problem lies with the "sales and marketing" approach. First,
the words "sales" and "marketing" do not mean the
same thing. Each plays a unique role in running your business. Secondly,
the order should be reversed. Sales should never precede marketing.
Marketing must always come first. That's because the job of marketing
is to create the right buying environment and to create leads for the
sales force. The job of the sales force is to make the sale and close
the deal. Selling shouldn't be a matter of luck. Sales people should be
able to enter a home where potential customers are ready and eager to
buy. Marketing prepares the way and opens doors.
Salespeople have difficulty because their companies do not understand
the role of marketing in the sales process. Too many alarm companies see
"sales and marketing" as two sides of the same coin. They lump
sales and marketing into one department and use the terms sales and marketing
interchangeably.
Another result of confusing marketing and sales is price cutting. Although
price is seldom the only deciding factor in the potential customer's decision,
many companies resort to price cutting to "get in the door."
The problem is that the exception becomes the rule. In order to get the
business, they cut the price. Companies then get used to operating on
slimmer margins, creating the need for higher sales volumes to compensate
for the losses. The truth is, if your company's products and services
are worth buying, and your marketing department did its job, price cutting
wouldn't be an issue.
Unfortunately alarm companies rarely put the money they should toward
their marketing department. How many of these results of not having a
marketing department apply to your company?
* Fewer sales. How many of you are achieving the sales levels you want
or
need?
* Behind the times. If you are not keeping up with today's marketing and
selling techniques, someone else probably is, or will be soon.
* Blaming the economy. Many companies expect external conditions to dictate
their sales when the real problem is their inability to create a positive
buying
environment.
* What marketing department? That's the response of most alarm companies.
The only marketing department some companies have is a closet where you
get the brochures and catalogs. The emphasis then is on the sales force
to create a positive buying environment.
* A frustrated sales force. Not having a marketing plan will result in
a high
turnover in your sales department. The most common complaints among sales
people are:
o We don't have enough leads.
o We can't sell because our prices are too high.
o Not enough people know about our company or even security. If they do
know there are too many misconceptions.
What has been your response? Make more calls. Go to another seminar. Improve
performance. Find the right technique. None of those answers solves the
root of the problem. A frustrated sales person will not last long.
An alarm company offering good products and great service can sell under
any conditions. By being the "best" in the minds of your customers,
you will have developed a special edge over your competitors. Your customers
will reward you with their loyalty in exchange for your "best."
Customers who will stick by you, will also recommend your company to others.
If you want sales to grow, no matter what the state of the economy, and
if you want to succeed in spite of competition, you'd better give your
marketing a high priority. We'll probably never know for sure whether
the chicken or the egg came first. It doesn't really matter. They are
both here today continuing the process. But with alarm companies it matters
whether sales or marketing comes first. Alarm companies that do not put
marketing "first" in their plans, might not be here tomorrow.
|