The document discusses the importance of integrating sales and marketing to maximize a company's revenue and customer relationships. It outlines the goals and responsibilities of both functions, emphasizing collaboration to enhance customer satisfaction and create value. Additionally, it explores the factors influencing the effectiveness of sales and marketing integration and the evolution of their roles in response to market changes.

1. Sales & Marketing Integration How to formulate the optimum organization

2. Why Integrate Marketing & Sales? Together, these two functions are almost ultimately responsible for the company’s top line revenue. These two functions define the company’s relationship with it’s customers Lack of understanding and respect frequently cause these two functions to be at odds resulting in loss of productivity and market confusion/dissatisfaction Working together, sales and marketing can maximize the customer’s lifetime value for the company

3. Four Goals of a Successful Sales Force Source: High Impact Sales Force – Harvard Business School May 22, 1998 Effective Sales Organization Sell new customers or group of customers Increase Customer Satisfaction & Retention Create Value & Differentiation from the Competition Short term oriented Responsible for sales volumes Execution oriented Increase Account Penetration & Profitability

4. Eight Goals of Marketing Understand the Market & Competition Effective Marketing Organization Segment the Market Integrate Learnings Communicate with the Market Build the Company’s Strategy Generate Leads Track Effectiveness Design Products to Support the Strategy Long & Short term oriented Responsible for Profit Planning Planning oriented Tactical Marketing Strategic Marketing Product Marketing

5. How to Integrate Marketing & Sales Sales & Marketing Integration 1. 3. 4. 2. Sell your product/service to a new customers or group of customers Design products/services to support the strategy Educate the Market Generate leads Track effectiveness Create Value & Differentiation from the Competition Understand the Market & Competition Segment the market Build the Company’s strategy Increase Account Penetration & Profitability Design products/services to support the strategy Educate the Market Generate leads Track effectiveness Increase Customer Satisfaction & Retention Track effectiveness Integrate learnings

6. Customize Your Marketing & Sales Organization Any form of marketing and sales integration can be appropriate given the factors effecting your business The task is to figure out what is the right goals for your marketing and sales organization Create Solutions Define the Market & Create Demand Take Orders Sales Support Role of Marketing Role of Sales 2. 1. 3. 4. 1. 2. 2. 2. 3.

7. Factors Affecting Sales & Marketing Size of the Market Life stage of the Offering Strength of the Brand Cost of Offering Competitive Landscape Inherent Demand for the Offering Product Complexity Lifespan of the Offering Type and number of Distribution Channels Importance of Post-Sales Support Margin Small Large Monopoly Crowded Bought Sold Low High Low High Unknown Premier Small Expense Capital Expenditure New Commodity Consumable Durable One Multiple Low High

8. Integration to Maximize Your Return on Marketing & Sales Create Solutions Define the Market & Create Demand Take Orders Sales Support Role of Marketing Role of Sales McDonalds iPod Old IBM New Pitney Bowes Old Pitney Bowes Old EMC Insurance Co’s New EMC

9. What Causes a Shift in the Roles? From large unsegmented markets to top tier industry verticals From commodity product (postage meters) to new product (end-to-end mail solution) From well known brand for postage meters to unknown brand for mail solutions From monopoly-like position in postage meters to crowded and undifferentiated market From easily bought and understood product to a complex service that needs to be sold From individual face-to-face sales specialist to team of sales specialists From little need for post-sales support (maintenance only) to continuous post-sales specialist support From limited number of high end products to multiple products at different price points From premier well-received brand to a brand thought to be overvalued (too big for their breeches) From monopoly-like position to crowded marketplace From a product bought as the industry leader to needing to be sold as a result of reduced IT budgets and over-saturated market From high margin to low margin From captive high end sales force to multiple distribution points (through distributors) Pitney Bowes EMC

10. Four Potential Sales Organizations Internal and External Sales Generalists Teams of Specialists Market segmentation Industry Size of client

11. Three Potential Marketing Organizations Product Focused Market Focused Functionally Focused Source: Aspects of Marketing Organization: An Introduction – Harvard Business School October 1989