...reasons for conflicts between Sales and Marketing. Some might consider sales and marketing synonymous, one task split into two. However this could not be further from the truth. Sales are activities that lead to closing the deal and signing an agreement or contract. Marketing is the courses of action implemented to reach and persuade prospects. Different in culture and personality, marketing and sales are traditionally at odds but cannot successfully perform their assigned tasks without the other. To avert the negative impact that arises from this conflict vigilant observation and swift action is necessary. Only in this way can a company's management can control the situation between the divisions. Particularly for a consumer product company, as the average level of consumer savvy increases, the importance of the sales and marketing departments working in sync becomes even greater. The conflict between sales and marketing is essentially a consequence of the two groups viewing the world differently. This impedes communication and integration of the departments. One of the clearest ways to comprehend the different views is a thorough understanding of the culture conflict between sales and marketing. Each subdivision has its own agendas, priorities and opposing ways of performing its responsibilities. An example of this is the acceptable length of time it takes to see results. Salespeople see planning in terms of short term objectives to meet customer demands. Marketing personnel...
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...Literature Review Essay Relationship between ‘Marketing’ and ‘sales’ in B2B organizations Introduction Within a ‘Business to Business’ organization, relations between sales and marketing are often dysfunctional meaning they do not always operate properly or as they should (Kotler, Rackham & Krishnaswamy, 2006). One of the key goals of a business is to make profits, which is done by making sales, which only happens by providing a product that satisfying the customer’s needs (Futrell, 2013). This requires both sales and marketing. You would expect sales and marketing to be well aligned in a successful organization, however this is far from the case. This essay will first look at the causes that usually lie behind the concern that sales and marketing do not always act collaboratively to the benefit of the organization but in fact have a dysfunctional relationship exists between marketing and sales divisions. It will look into the ways in which this problem can negatively impact on an organization's ability to serve its customers and compete effectively. Finally potential solutions will be identified and discussed in relation to improving the synergy and integration between sales and marketing, which will ultimately allow organizations serve their customers and compete most effectively in this ever changing world. What causes Sales and Marketing relationship to be dysfunctional? Within a business to business organization, sales and marketing do not always act collaboratively to...
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...MANAGING CHANNEL MEMBER BEHAVIOUR A project for Sales and Distribution Management Submitted to Prof. Jaideep Mukherjee Submitted By: Group No. 19 Renuka Dabas (Roll No. 11PT2-59) Sonali Jethi (Roll No. 11PT2-65) TABLE OF CONTENTS S. No. | Title | Page No. | 1 | Introduction | 3 | 2 | Channel Conflicts | 3 | 3 | Causes of Channel Conflict | 4 | 4 | Effects of channel conflict | 5 | 5 | Types of Conflicts | 5 | 6 | Minimizing and Managing Channel Conflict | 7 | 7 | Channel conflict or Channel Choice | 8 | 8 | Distributor Sales Force Motivation/Channel Member motivation | 8 | 9 | Training of Distributor Sales Force | 10 | 10 | References | 13 | Introduction A distribution channel or 'route-to-market' is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). Most products are purchased from channel intermediaries whose main purpose is to deliver product from the manufacturers to the end users. The purpose of a channel intermediary is to move products to consumers, whether business or consumer. Channel intermediaries consist of wholesalers, agents or brokers, distributors, dealers, retailers. Channel members can have transactional function, logistical function, inventory storage function or a facilitating function. Channel intermediaries are extremely important in the chain of delivering...
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...Case The Microsoft Canada: Sales & Product Management working together case, exemplifies in an excellent manner what usually happens in an organization: the clash between the sales and marketing areas. The case introduces the different points of views of the Sales Manager (Doug Taylor) and the Group Product Manager (Barry Zeidenberg) regarding the launch of a new product. The new product under consideration, a Zeidenberg’s idea, is a consumer education website that according to him would be essential to build long term customer awareness. The maintenance of the new product was estimated at $1 million per year, which signified 10 percent of annual sales and marketing combined budget. Doug Taylor and Barry Zeidenberg have worked in consumer packaged goods companies (Coca-Cola and Unilever) before their entrance to Microsoft. Both of them have had experience in both, selling and marketing departments. In reference to the introduction of the new website they have encountered opinions. The first thought of Taylor about the launch of the “Microsoft Home Magazine” is that the money would be better invested in sales channels because this would generate an increase of sales revenue. In contrast, Zeidenberg strongly believes that this investment is completely necessary in order to maintain and gain customers in the long term. Zeidenberg’s main objective is to create a need in customer’s minds that in the long term will achieve the objective of increasing sales, customer awareness, and...
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...is now under the watchful eye of Dr. Roger Cahill (also known as King of the Hill). In an industry with rapidly growing revenues and demand, in a sector that was highly competitive, BoldFlash still has the significant competitive advantage of operating its own plants. After a few months on the job, Cahill was able to deduct what he saw as the problem in the Mobile Division as unproductive conflicts between the functional departments, particularly around the product development processes. It is clear that manufacturing is the dominant function of the organization and with its competitive nature, seems to be pulling its weight. Due to the unclear roles of departments, isolation of departments, as well as the conflicting roles of departments, manufacturing is suffering. Conflicting Performance Metrics In many ways conflicting performance metrics of each group are contributing to the problem. Currently the performance metrics of each department are left either unclear or overlapping between groups. The conflicting performance metrics are causing opportunities to be missed, frustration between employees and departments, lower profit margins, lack of information flow through the mobile division, and the development of products that do not currently have a market need. It is necessary to create more clear and effective performance metrics in order to create an atmosphere that allows ideas for creation of new products while ensuring there is a market need...
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...not sell their goods directly to the final users between them stands a set of intermediaries performing a variety of functions. The process of distribution of goods involves all human and physical means which aid the smooth transfer of such good from the manufacturer to the final consumer. Nickeil (1998) The growing of distribution is a key strategy variable in marketing management. In deed, if one look at the major strategy of the marketing mix – product, price, promotion and distribution, the greatest potential for achieving a competitive advantage now lines in distribution. Distribution still offers a new frontier for competing usefully especially if the emphasis is placed on the design and management of superior marketing channel systems to provide excellent customer services. Yet design optimal marketing channel system to boost sales, formulating innovative distribution strategies and management channels system effectively is no simple task. To day, companies are faced with choice of distribution path or strategy that will make product readily available to potential customers. Achumba (1994). Also the need for other institutions or intermediaries in the delivery of good is sometime questioned, particularly since the profits they make are viewed as adding to the cost of product which may eventually slow down sales of the product. The concept of distribution refers to where and how product and services to be offered for sale and all essential mechanism and logistical supports...
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...Why do marketing and sales not work well together in this firm? The Marketing Funnel and the Sales Funnel cannot work well together because both parties work independently like two individual entities. They have different goals and some of their job responsibilities are overlapped. The goal of the Marketing Funnel is to create leads, meaning that they care more about quantity of the leads than quality of the leads. They are judged by the amount of leads they can hand over to the Sales Funnel. Meanwhile, the Sales Funnel needs quality leads in order to close the sales. As noted in the case, there is a gap between Sales and Marketing. The leads aren’t always qualified when they come from Marketing but Marketing says it’s their ‘win regardless. When and if a sale is made, Sales takes the credit. From this statement, whether it is true or not, we can see that the Sales team does not trust the marketing team. Even worse, they can put the blame on the Marketing team even though it is their own fault that they cannot close the sales. Furthermore, the Marketing does not get reward from a closed sale, discouraging them to create qualitied leads. Secondly, the certain job functions of both teams are overlapped. The Sales team has their own marketing team to generate their own leads. They also believe that their leads have a higher quality than those of the Marketing. 2. What is the best demand generating engine? Why? The best demand generating engine is not just a mere marketing campaign...
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...Module Name: Marketing Strategy OPEN UNIVERSITY MALAYSIA FACULTY OF BUSINESS MANAGEMENT BMMS5103 Marketing Strategy Master of Business Administration Name: Adam Khaleel Lecturer: Abdulla Nafiz Learning Centre: Villa College Trimester: May 2015 Contents 1.0 Executive Summary 2.0 Introduction 3.0 Analysis and mapping of the products 4.0 Analysis and mapping of the products with models 5.0 Comparison of product, pricing, promotional and placing strategies 6.0 Types of disagreement between the competitor A and the channel distribution 7.0 Channel strategy factors 8.0 Conclusion and Recommendations 9.0 References 1.0 Executive Summary Today’s business world has become much competitive that requires continuous and visible effort to get and retain customers. Companies are increasing focus on sales and marketing. Businesses need to decide which customers to target. Businesses need to work out how they will reach and win new customers. Businesses need to make sure that they keep existing customers happy. And they need to keep reviewing and improving everything in order to stay ahead of the competition. Therefore businesses need to develop appropriate marketing strategies which allow them to move forward. This is a marketing strategy report. First part will identify and explain the best analysis for two competing cosmetic brands (Competitor A and B) which consists of eight products from four product lines. In this section...
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...type Marketing Research? You may make suitable/appropriate assumptions to enable you to answer this question fully. Market research exists to guide your business decisions by giving you insight into your market, your competitors, your products, your marketing and your customers. By enabling you to make informed choices, market research will help you to develop a successful marketing strategy. Market research helps you to reduce risks by getting product, price and promotion right from the outset. It also helps you focus your resources where they will be most effective. Generally there are two main types of marketing research-quantitative and qualitative research. We can not say which one is better, for different company or different situation we choose the one most appropriate. Quantitative research focuses on coming up with numbers: for example, what percentage of the population buys a particular product. It is gathered using surveys and questionnaires. You can do simple quantitative research yourself by talking to your customers. Quantitative research is about asking people for their opinions in a structured way so that you can produce hard facts and statistical results, it’s important to survey people in fairly large numbers and to make sure they are a representative sample of your target market. How does it work? For example, a garden center owner might ask, “How often do you buy plants and gardening supplies?” and respondents would have to choose between five...
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.... Because of the fast shifts in market sales of the product groups tension among the members of the product groups emerged . Each product group wanted to have better performance in market than the rest which is not actually negative at all for the firm because it motivates everyone however the product groups became factions that are not helping in the coordination of all units in the company With the intention to meet the need of increasing production , the company 's executives formed the new product development division . The function of this new division overlaps with that of the research division and marketing department because the extent of functions they perform was not closely discussed and limited by the top-level management Implementation of separate division to handle product development has disrupted the previous cohesive interaction between prior existing divisions. New product development division has taken on a life of its own, opting to market its new developments instead of passing the new products to the other divisions to handle their usual responsibilities. I. The development division has taken over other division’s responsibilities without continuing to gather input and build a relationship with these divisions that already have the knowledge and specialized skills The separation and newly divided responsibilities for divisions created the disruption which previously was not occurring between prior existing divisions In spite of its independence...
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...distribution channel as one slice of the overall marketing pie. It is how a company gets its products or services to the consumers. Few producers sell their goods directly to the final users. Most use intermediaries to bring their product to market. Most producers do not sell their goods directly to the final users; between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel (also called distribution channel) How can channel members add value: -In making products and services available to consumers; -Gathering key information about potential and current customers, and competitors; - Promotion Developing and spreading communications about offers; Physical distribution Transporting and storing goods; Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock) ; The primary purpose of any channel of distribution is to bridge the gap between the producer of a product and the user of it. Distribution channels include wholesalers, e-commerce websites, catalog sales, consultants, a direct sales force who sell over the phone, in person or both, dealers, home shopping networks and retailers. Each channel member depends on the others. * For example: Ford Dealer depends on Ford to design cars that meet consumer needs. Ford depends on their dealers to attract consumers, convince them to buy Ford cars. The best promotion or marketing won’t get the product bought if it is being...
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...Journal of Hospitality Marketing & Management ISSN: 1936-8623 (Print) 1936-8631 (Online) Journal homepage: http://www.tandfonline.com/loi/whmm20 Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators' Perspective Eunha Myung , Lan Li & Billy Bai To cite this article: Eunha Myung , Lan Li & Billy Bai (2009) Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators' Perspective, Journal of Hospitality Marketing & Management, 18:8, 811-828, DOI: 10.1080/19368620903235837 To link to this article: http://dx.doi.org/10.1080/19368620903235837 Published online: 09 Oct 2009. Submit your article to this journal Article views: 387 View related articles Citing articles: 3 View citing articles Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=whmm20 Download by: [Computing & Library Services, University of Huddersfield] Date: 16 December 2015, At: 08:17 Journal of Hospitality Marketing & Management, 18:811–828, 2009 Copyright © Taylor & Francis Group, LLC ISSN: 1936-8623 print/1936-8631 online DOI: 10.1080/19368620903235837 Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators’ Perspective Downloaded by [Computing & Library Services, University of Huddersfield] at 08:17 16 December 2015 Journal 1936-8631 1936-8623 WHMM of Hospitality Marketing & Management, Vol. 18, No. 8, August 2009:...
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...1: Key reasons for conflicts between Sales and Marketing. First, Sales department blame to Marketing to set price too high and bring many difficult to Sales in introducing and selling. In addition, Salespeople think Marketing fail in advertising and they don’t have idea about what customer need. Instead of the budget is contributed to Marketing Department, Salespeople will use it more effective. In contrast, mission of Sales is focus on selling and sometime they can’t think about a long term strategy or a plan for future. Although Sales have a good communication with customer, it is just in individual scale not in a developing plan. Second, they have a conflict about price. Sales produce good with a cheaper price than Marketing to attract demand of customer. Marketing want to bring benefit as big as possible to the firm, therefor, they will use the best way to cut the expense and raise the revenue. Beside that, Marketing want to spend their time to set up and think about strategy, they can draw a picture with the large view and future plan. Sales have the different way. They prefer to persuade and communicate with potential customer. In conclusion, I think Sales and Marketing have the same goal that is put their company’s name in customer but they have the different way. Sales focus on number of sale and take care for customer to keep them. Marketing have a larger mission, they have to think about benefit, risk, finance and many other things. Simply, Sales prefer to do with...
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...a decrease in sales and profits. 5. There are operational conflicts within the major departments. 6. There is no uniformity of command. B. Micro: 1. The existing structure cannot adequately coordinate complex projects. 2. Sales executives tend to question the sales estimates issued by the product managers. 3. The coordination between marketing and the new product development department is insufficient. 4. The product development division is experiencing problems with the marketing division. 5. The product manager has been unsuccessful in coordinating the activities. 6. The company is having difficulties in producing a team concept within the departments. II. Causes 1. The product development division was given responsibility for market research, but the tasks of sales analysis and forecasting remained in the marketing division. 2. For each separate group of products, a project manager was appointed who was responsible for the coordination of all company activities for the product. 3. Estimates are usually based on the total product market rather than on Exley’s share, which often tends to inflate sales estimates. 4. Implementation of separate divisions to handle product development has disrupted the previous cohesive interaction between prior existing divisions. 5. The company realizes that there was a need to move a product development department closer to the production line but the modeling effect did not take place causing the conflicts to arise in command ...
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...need for introducing a new innovative product in the market to make a comeback and an organizational change for a longer term. Conflicting performance metrics and Goal Incongruence Different performance metrics let to competitive efforts among different departments. Departments were concerned about their own goals at the expense of other teams. The system can achieve its goals more effectively and perform better when organizational goals are well aligned with the goals of different subunits. This organisation was ultimately working toward the same goal, but all the departments had different ideas and purposes. Manufacturing plants operated as individual profit centres and were evaluated on gross margin while Sales department was evaluated on revenue. Consequently, Sales, in order to meet their revenue goals, sold the products at any price they could without looking at the impact on margins. Organizational structure and Bad Management: The Mobile Division’s current situation can be attributed to the previous vice president’s approach of tackling issues through a top down approach. It caused division's failure in creating value for customers. Due to this autocratic approach, employees were following a submissive culture and they had reliance on management for all the decisions and action plans. The culture of the company was not based...
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