Friday, September 08, 2006

Why can’t sales and marketing just get along?

IIPM Best MBA Institute
There are two sources of friction between sales and marketing. One is economic, and the other is cultural.

The economic friction is generated by the need to divide the total budget granted by senior management to support sales and marketing. The sales force is apt to criticise how marketing spends money. For instance, take pricing. The marketing group is under pressure to achieve revenue goals and wants the sales force to “sell the price” as opposed to “selling through price.” The salespeople usually favour lower prices because they can sell the product more easily and because low prices give them more room to negotiate. This clearly means more sales.

Also, the two functions attract different types of people. Marketers, who until recently were more likely to have formal education than salespeople, are highly analytical, data-oriented and project-focused. Salespeople, in contrast, are skilled relationship builders.

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Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

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