Difference between Sales and Marketing

Sales is about how to promote to market. Today, sales is small part of marketing. Marketing is provide value that customer need profitably.

Many people see marketing as selling. Then they also see selling as cheating. That is wrong. They have the impression because the visible aspect of marketing process is promotion. Another marketing process similar to another department, production. In marketing concept, marketing is soul, not component.

In the history, in the beginning, it is difficult to create products. So classic economy said that every products have its own demand. No problem about selling. Then when product increase and overload, they need persuasion. It is work. But not always. Sometimes it is difficult to persuade market for products that they didn’t need. So Peter Drucker said, that it is important to consider another aspect beyond persuasion. That is product, place, and price.

If sales work alone, without support by another division, it can spend very expensive.

Ok. It is component of marketing. Often it said, marketing mix in Jerome McCarthy

  • Product and service,
  • Price
  • Place
  • Promotion

That is component that important to make purchasing. The point is don’t rely on promotion or sales. Consider another component.

Another concept for marketing mix is

  • Customer Value, Customer need and want
  • Cost to the customer
  • Convenience for customer
  • Communication

That is similar concept to previous marketing mix. That is customer oriented concept.

What is sales?

Sales si personal promotion. It is part of promotion. Another promotion is advertising. That is mass media promotion.

Sales is different than marketing that I talk before. The Sales job is

  • Segmenting and targeting
  • Make a list of prospect
  • Meet potential customer
  • Deal any question and objection
  • Make sure the sale happen
  • Give feedback to marketing team

That is different between sales and marketing. Sales is part of promotion. Sales is personal promotion. Marketing see sustainable purchasing is system, that promotion is only part. Another part is products, price, and place.

How to Find Customer that Love Your Offer

No business without customer that make transaction.  There is two kind approach to match offer and customer need. First, find offer that customer segment love. Second, find customer  segment that love your offer. We also can add three approach, the two variable, customer and offer are in feedback loop.

Find Offer that Customer Love

  • To find offer that customer segment love is find tested product that sell.
  • Look popular existing product, then create better offer
  • Identify customer segment pain, task and something that make them happy. Create offer that relieve their pain, get the task done, and help to make happy.

Find customer that love your offer

  • Create website. Visitor of your website is customer that interested to your offer. To know their identity, ask them to give email. Another method is give your website script facebook pixel.
  • Create advertising di facebook ads. Try for several audience based on geography, or age, gender. Which will love your products.

New Marketing in Digital Communication

Widespread use of the social media has deep impact to marketing concept. Social media is not another channel. It is not enough to move marketing material from mass media to internet. Social media change the character of marketing. Mass Media is one way communication. Social media is two-way communication in real time. So, social media forum see a promotion like in television as a distraction. That is spam and interruption. So, digital community refuses hard selling promotion in social media.

Internet user ignores a one-way promotion style like television promotion. That is a distraction and consume time. Today. everyone can create promotion in social media and website. The Internet is a place where people search for the desired information. We can not get attention to all promotion. So they refuse irrelevant promotion that distracts. They named it spam. Mass media advertisements are interruption or interrupt time and space. They read the corporate website or product profile only if they need them. Thus on social media, marketing has to adjust to the different environment.

Feedback Loop In New Marketing

Social media communication has several characteristics that have an impact on marketing. First, communication via the internet runs two or more simultaneous directions. Consumers are more powerful than the era of mass communication. Power to ignore, carry out negative campaigns and positive campaigns. Second, the product life cycle is often short. Many new businesses have better and more efficient offer. Third, competition is getting tighter. Digital communication allows new players to learn and create new business. That is competitor.

Marketing concepts need to make adjustments for new environment. There are three reasons. First, because the old concept is more designed for one way communication. That does not suit for simultaneous two-way communication. Second, social media and internet have the powerful feature that helps marketing. They have the feature that gives simultaneous feedback from the segmented market. So, with this feature, we can improve our products and promotion. Third, we have to select the market segment that relevant to your offer.

In this article, we discuss concept of marketing in the era of digital information. These marketing concepts continue previous marketing goals. This marketing concept also accommodates digital information. Based on Hermawan Kertajaya categorization, marketing architecture consists of three parts. They are strategy, tactics and value. Marketing architecture in digital society changes character.

1. Strategy Communitization

The strategy of designing what value is to be promised to a particular market. The strategy the after formulating the market, competitors, regulations, culture, and capacity of the company. The concepts in the previous marketing strategy are segmentation, targeting, and positioning.

The strategy of designing what value that we offer and promise to segmented market. That offer has value for the customer and different than competitors. In the old marketing concept, that is positioning. We make positioning after consider the environment and company. The concepts in the previous marketing strategy are segmentation, targeting, and positioning.

The environment includes market, competitors, regulations, and culture. Compare environment and capacity of the company, then we found market segment opportunity.

Segmentation and targeting help companies to found most hungry market for your offer. Positioning is company’s offer of unique/special benefits to market segments. In the digital two way communication, positioning is relevant. But it have new character. That is not concept that created by company only. Community and company create positioning together, by two way communication. Thus the creation of positioning is through a process of feedback from the community.

2. Tactics: Cocreation, Ideavirus, Permission, Ideavirus, Testing

Tactics attempt to realize the idea of positioning. Old marketing conceptions about tactics are differentiation, marketing mix and selling. Marketing mix are product, price, place, and promotion. The conception are marketing program to deliver value.

CK Prahalad formulates relevant cocreation in interactive digital communications like today. Experience products is by producers or marketers alone. Collaboration of companies, consumers, suppliers and distribution partners create products. Information technology allows individuals or consumers to give feedback for products. Consumer can make modification. So, they can create products based on their character and choices. In interactive communication, prices are also cocreation. They design price by colaboration.

The optimal form of content-content that gets approval is ideavirus or viral content. the was also initiated by Seth Godin. Ideavirus is a matter of how to help consumers spread the on the internet. Ideavirus has two characters. It is a promotion and something that is relevant to the market segment. Another tactic in digital communication is testing. Social media and search engine allows marketers to get instant feedback. Feedback from market segment is useful to improve the next marketing tactic.

3. Value: Character Building

In the previous marketing concept, this value includes brand, service, and process. A brand is not only producer name label on products. A brand is positive association in customer mind about name. Company offer value. If customer and market segment recognize the value, the have good brand association to a name. Service support products to create value for market segments. Process design so that service and products achieve optimal performance.

In the situation of digital communication, the brand creation is more difficult. In mass communication, brands has one direction. The audience doesn’t have a great opportunity to express objections to other audiences. But in digital communication, audience can convey negative ratings on the brand. Market segments know which fake and original brand characters. In this situation, the company has to create authentic brand character. Brand building is create an association of product with their:

  • functional performance,
  • positive emotional associations,
  • and giving experience.
  • social and environmental commitments.

That way the market segment finds a soul partner to create a better world.

Why Millenial Gen Have No Brand Loyality?

The study said that the millennial generation has no brand loyalty. They easy-going form one brand to another brand. Why?

  • People in the older generation need a brand to help decision making to find a good product. In the previous era, the communication source is one to many communication or mass media, they have no forum or peer group that give them information and review. So they laid to most reputable and famous producer or brand.  The reputable brand keeps their reputation and gives a good guarantee. 
  • Millenial generation does not depend on good reputation brand to find good products. They can read the customer review and their group and forum review. They more believe in their friend than advertising. The forum already has a role as the previous brand. Instead of using a brand that socially created, they use digital forum or group. 
  • Internet and computer reduce many business processes. It enables a company to find good outsource.  It also reduces marketing cost. So competition so high. So many companies that disrupt older old style business model. So millennials prefer to choose a better offer. The old brand is not necessary. The new company often offer very good offer.
  • Millenial often faces new wonderful ideas and new products.  So, they also open to new products.
  • Millenial has a growing nerd. A nerd is an enthusiastic group that opens to innovation. They have a forum about their enthusiasm. They like to try new products. They also like to share their ideas, so their follower often to adopt their ideas.
  • Millenials aware that so many inventions that improve their hobby or work. So good brand products often obsolete because there better invention that more efficient and more effective. So they open to new products than loyal to the old brand.
  • They get information about products is not from the brand ambassador, but from their groups. That includes the negative comment about a brand. So they can lose their loyalty.