This details the reasons for conflict between sales and marketing and how to effectively to work together at different stages in the company life cycle. Based on Harvard Business Review article co-written by Phil Kotler of Northwestern University. Rick Steinbrenner Global Consumer Brand & Product Marketer

1. The Sales & Marketing Interface
Why can’t they just get along?

2. Sales-Marketing Interface: Why Does It Exist?
 Marketing blames sales for poor execution of their “brilliant” marketing plan
 Sales insists Marketing sets the price too high and/or uses too much of the support budget in
advertising. They believe money better spent with customers
 Marketing believes Sales is too myopic – focusing on individual customers and not the end-
user/market segments
 Sales believes Marketing is out of touch with what’s really going on with customers – doesn’t
listen well

3. Why Sales & Marketing Aren’t On The Same Page?
Two Main Issues:
Economic Issues: Cultural Issues:
 Who sets the retail and/or customer acquisition  Sales & Marketing usually have different
price? education and skill-sets; fact-based vs.
relationship selling.
 Do we spend ad/promo dollars against the
ultimate consumer and/or customer and who  Performance metrics usually different.
decides the mix?  Marketing: $ sales and margin % by product lines
 Sales: $ sales and customer margin %
 Does the product create value vs. competitive  Definition of short vs. long term results
offerings or is it just “me-too”.
 Lack of communication between groups.
 Who decides where we sell the product? Big-box
 Sales and/or marketing resources aren’t readily
vs. specialty vs. 2-3 step distribution.
available to meet desired corporate objectives.
3
Source: Kotler, Rackham & Krishnaswamy

4. Sales-Marketing Conflict: Can Hurt Firm’s Performance
 Sales/Marketing working on same things – decreases efficiency and effectiveness
 Cost of sales can be higher than needed due to this replication of effort and inefficiency
 Sales & Marketing not on same “messaging” page with customers – result is confusion and lost
sales opportunities
 Can result in longer sales cycles to get replenishment orders
 Can result in lost distribution of current items if sales/marketing don’t work together
 Lower chances for commercial success of new product launches if marketing doesn’t take into
customer planning/planogram cycles

5. Sales/Marketing Relationships Need To Evolve Over Time
Undefined Defined Aligned
Do Nothing If:  If the company is small  Company’s products/services are  Company lacks a culture of shared
fairly well defined. responsibility
 Have good informal relationships
 Traditional marketing and sales roles  Sales and marketing report separately
 Marketing is still a sales support work in this market to the General Manager
function – usually MARCOM.
 No clear reason for change  Customer purchase cycles are fairly
short
Tighten up the  Conflicts are evident  Although roles better defined,  Develop a common process for
Sales/Marketing duplication of efforts and things managing /measuring revenue
Relationship If:  Duplication of efforts or things continue to fall though cracks generating activities – sales or
falling through the cracks marketing
 Market is commoditized and highly
 Sales/Marketing compete for price competitive
resources and/or support $’s.
 Product development continues
through the sales/launch process
 Product life cycles are shortening due
to advancing technology
Move to Defined Move to Aligned Move to Integrated
5
Source: Kotler, Rackham & Krishnaswamy