Marketing Vs. Selling
Most business owners don’t understand the difference, so don’t feel bad. But in today’s me centered, instant gratification, internet-driven world, the difference is monumental. Most companies are “fishing” for customers in the same old way that has been done for decades (even if they use all of the new technologies to do it). Without this clear understanding, most businesses will surely fail!
Wikipedia defines Marketing as the study and management of exchange relationships.Marketing is used to create, keep and satisfy the customer. With the customer as the focus of its activities, it can be concluded that Marketing is one of the premier components of Business Management – the other being innovation.[3
Wikipedia defines Sales as the activity related to selling or the amount of goods or services sold in a given time period. The seller or the provider of the goods or services completes a sale in response to an acquisition, appropriation, requisition or a direct interaction with the buyer at the point of sale. There is a passing of title (property or ownership) of the item, and the settlement of a price, in which agreement is reached on a price for which transfer of ownership of the item will occur. The seller, not the purchaser generally executes the sale and it may be completed prior to the obligation of payment.
Plainly spoken, Marketing is customer oriented and Sales is Company oriented. The vast majority of businesses are sales oriented. A company develops a product, it is the responsibility of the sales department to sell whatever has been produced. Aggressive sales tactics are justified to meet this goal and the customer’s needs and satisfaction are taken for granted. Understandably, this is taken to the extreme, but there are many companies operating under these ideals.
It is only when a company learns how to develop a marketing strategy that educates their potential customers to nurture them to know, like and trust them. A value proposition must be created that causes the client to feel that the value they receive outweighs the price paid. This is how to win over the competition.
I believe the following distinctions will be helpful:
- Emphasis is on the product
- Make Product First and then try to figure out how to sell it
- Product First then the Customer
- Sales Volume Oriented
- Profit through Sales Volume
- Short-run planning
- Today Products and Markets
- Emphasis on Customer Wants
- Research to find out Customer Wants and then figure out how to make it
- Customer First then the Product
- Profit Oriented
- Profit through Customer Satisfaction
- Long-run Planning
- New Products, Tomorrow’s Markets, and Future Growth
We have created 4 training videos to lay out the development of this strategy. We hope this will be helpful whether you choose to do business with us or not.