The world is witnessing an age of capitalization. Everything comes with a price tag on it. There are advertisements for a diverse range of products and services around us and we are tempted to try them at least once.
While it may not catch everyone’s eye, there is a deep mechanism behind the whole process of demand creation and satisfaction. There are strategies and forces working together constantly to make production and distribution possible. Sales and marketing happen to be among them.
Although sales and marketing aren’t poles apart, there are significant differences between them. And for anyone who wishes to take on sales/marketing roles, it is crucial to understand their nuances and differences.
What is Sales?
The process of a transaction between a buyer and a seller where the seller gives a product or service to the buyer and the buyer gives a pre-decided sum of money or something of a similar value in return to the seller is referred to as “sales.”
Objectives of sales:
- To increase company revenue by increasing the sale of products.
- To bring in new customers and work on retaining existing customers.
- To enhance the process of sales by adopting trending practices, automating, and conducting diligent research.
- To increase cross-sells and up-sells by regularly monitoring the company database for opportunities.
- To increase the productivity of sales representatives by focusing on reducing cycle time and maximizing win rates.
What is Marketing?
Marketing refers to a collation of different activities that businesses embrace to increase brand awareness and the sales of their products/services while also enhancing customer-brand relationships.
Objectives of marketing:
- To increase the sale of new products and services.
- To increase the profit of a company.
- To develop an awareness of the business.
- To maximize lead generation.
- To promote productive relations with new and existing customers and hence, promote loyalty.
- To increase traffic on the website and other digital platforms, thereby, increasing digital presence.
- To save time and cost.
- To include new markets.
Also Read: Marketing vs Advertising
Differences Between Sales and Marketing
It may be confusing for the layman but anyone can tell the difference between sales and marketing if they have a slightly deeper understanding of how a business functions.
It is easy to understand what sales and marketing represent when we look at each separately. Now, we’ll indulge in a comparative analysis of both!
1. The Meaning
The term “sales” is exactly what it sounds like. It means to give something on behalf of receiving something. Herein, two parties are involved — the buyer and the seller. There are two elements involved as well — the product or the service that is being sold and the money or something of equal value that is being offered.
The seller sells the product or the service in exchange for the money or the thing of equal value to the buyer.
On the flip side, marketing is all about promoting sales. It is not limited to one activity; it plays several roles to promote sales. Marketing starts with sensing what the customers need and ends with safely and profitably satisfying their demands.
2. The Focus
A sales team is driven by the needs of the business. If the business needs more flow of cash, a sales team will do everything in its power to make that happen.
Marketing focuses on the needs of the market. The team closely studies the market and customer demands and communicates the findings to the managers and senior executives who then take the necessary decisions.
3. The Orientation
Sales are always product/service-oriented. This is because the main goal here is to boost the sale of a particular service or product.
Marketing is more customer-oriented. Today, when brands are increasingly becoming customer-centric, it is crucial to deliver stellar customer experiences and quality products. Marketing helps promote a brand’s products to the target audience and increase their overall customer satisfaction.
4. The Life Cycle
The duration of sales is short. A sales team is encouraged to reduce the life cycle of sales. Like we said earlier, sales are highly product-oriented. So, a sales team only focuses on specific sales-related tasks that last for a short duration.
Marketing, on the other hand, is a long-term affair. From market research to after-sales services, marketing involves numerous moving parts.
5. The Methodology
Sales take a fragmented approach since its primary focus is to sell everything that has been produced.
Marketing opts for a more integrated approach. It not only cares about selling all that has been produced but also focuses on satisfying the demands and the requirements of the consumers. It integrates everything from the objects of the business to the wishes of the consumers.
6. The Target
Sales target an individual or a small group of people because that is the maximum number of people that traditional sales can focus on at a given period of time.
Marketing is aimed at casting a net far and wide to attract more potential customers and extend an organisation’s reach to a wider audience base.
7. The Relationship
Members of a sales team maintain a one-to-one relationship with their buyers because that’s the maximum number of people they can concentrate on while selling something, be it a product or a service.
Marketing has a one-to-many relationship as it reads the needs of the entire market and works on satisfying them while profiting the brand.
8. The Scope
The scope of sales is limited to the selling of the product while maximizing the profit. It is a single activity with a single aim.
The scope of marketing is very extensive. It involves sales, advertising, customer support, after-sales service, among other things. And each of these activities is just as important as the other.
9. The Technique
Even though sales comprise only one activity, there are several ways of enhancing it.
This could be through:
- Special offers
- Price promotions, among others
However, a sales team is instructed to keep the discount and offers in check so as not to affect the profit margin greatly.
With marketing, there is only one technique even though it encompasses a number of strategies and tasks. The idea is to foster a mutually profitable equation with the buyers by integrating the needs and wants of the brand with those of the customer.
10. The Goal
Sales have one aim and it is to maximize profit by boosting sales. This reflects the business’s objectives and interests.
Marketing aims at maximizing the profits of the brand along with satisfying the needs of the customer. The idea is to create a sustainable brand image.
11. The Objective
The main objective of sales is to turn potential buyers into final buyers.
Marketing has the objective of figuring out what the customers need and then creating sellable products and services to satisfy those needs.
12. The Expertise Required
To get into the world of sales, one has to have excellent conversational skills and strong persuasion and negotiation powers.
Marketing professionals must be proficient in market-research. They must also possess analytical, social media, project management, automation, and CRM (customer relationship management) soft skills.
13.The Rule Followed
The Caveat Emptor rule is followed in sales. It implies that it is up to the buyer to ascertain the quality of a product, defects (if any), and warranty instructions before making a purchase.
The Caveat Venditor is followed in marketing. This frees the buyers of the burden since the onus is on the suppliers to inform customers of the quality of the product or cover the product under warranty if such a situation arises.
The sales process is simple – transactions are made between buyers and sellers.
Marketing is more about identification and satisfying the needs of the customers.
Also Read: Sales Interview Questions and Answers
For any organisation, it is important that both its sales and marketing teams work in tandem to attract more leads and revenue. As per a recent study, companies whose marketing and sales teams work in alignment with each other witness 20% revenue growth. Whereas companies that don’t ensure this experience a 4% decline in their revenues.
If you are just starting out a career in sales, there is a lot you will need to learn to bolster your management skills along the way. Luckily, there are online programs that have made this easier than ever. upGrad’s PG Program in Management, Specialisation in Sales and Digital Marketing is not just confined to imparting in-demand sales skills and hands-on training. It also prepares aspiring young professionals for career advancement opportunities.