Kim T. Gordon: Marketing
Defining Sales and Marketing
Build your business with the right combination of the two.
By Kim T. Gordon
| November 05, 2001
URL:
http://www.entrepreneur.com/marketing/marketingcolumnistkimtgordon/article46086.html
Q:
What's the difference between marketing and sales, and how can
I integrate the two to build my business?
A:
This is an important question, because a carefully crafted
combination of sales and marketing is vital for successful business
growth. "Selling" or making sales consists of
interpersonal interaction-the one-on-one meetings, telephone calls
and networking-that you engage in with prospects and customers. The
term "marketing" encompasses programs businesses use to
reach and persuade prospects, including advertising, public
relations, direct mail and more. You'll often see the terms
used incorrectly, such as when a business advertises for a
marketing professional but is really looking for someone to make
telephone calls, meet with prospects and close sales.
Did you know it takes approximately eight contacts or more with
a single prospect before the average sale is closed? That's
because prospects normally move through the sales cycle from cold
to warm, and then finally hot-where they're ready to
"close" and become clients or customers.
Imagine the prospects in your database moving through your sales
cycle the way hands on a clock travel around the dial from noon to
close at midnight. The coldest prospects are situated from 12 to
about 3 on the dial. They may recognize your company name but know
little or nothing more about you. Warm prospects are located in the
middle of the dial-from 3 to about 8-they're familiar with your
company and what it has to offer, but they're not ready to
close. Your hottest prospects, who have come to you either by
referral or moved through your sales cycle, are located between 8
and midnight-the point at which they'll become customers.
Throughout the sales cycle, it will take multiple contacts using
both sales and marketing to move prospects to the next level. To
build a successful business, you must develop a program that
combines sales and marketing and reaches out to prospects in all
three stages-cold, warm or hot-on an ongoing basis. Entrepreneurs
often get into trouble by choosing only those tactics with which
they're most comfortable. For example, someone who is
inherently shy may forgo important sales tactics, such as
networking, and rely solely on impersonal marketing programs. On
the other hand, a more outgoing entrepreneur may spend countless
hours making cold contacts at networking functions but fail to move
prospects through the sales cycle due to lack of ongoing marketing
support.
To avoid this trap, divide your prospect database into cold,
warm and hot prospects. Then, impartially identify the best tactics
for reaching and motivating each group. Sales tactics that help you
reach out to cold prospects include networking, cold-calling and
trade show participation, while cold marketing tactics are
advertising, public relations, direct mail, seminars, special
promotions and having a Web site. To reach warm prospects using
sales tactics, your business may rely on follow-up calls, meetings,
sales letters and literature, e-mail or more networking. To reach
them through marketing tactics, select from advertising, PR and
direct mail, plus electronic newsletters and broadcast faxes.
Closing sales generally requires adding "personal heat,"
either one-on-one or on the telephone, whether it's to make a
presentation or present a proposal, estimate or contract.
Rather than avoid vital tactics with which you're less
comfortable, such as cold-calling or public relations, take the
opportunity to brush up on your skills or bring in the proper
talent by teaming or partnering, subcontracting, or hiring. Start
by choosing two sales and two marketing tactics, and plot all the
activities it will take to carry them out. The key is to be
realistic and not go overboard. It's important to create a
sales and marketing plan that includes a combination of tactics you
can engage in year-round to support the growth of your
business.
Kim T. Gordon is an author, marketing coach and media
spokesperson-and one of the country's foremost experts on
entrepreneurial success. Her newest book, Bringing Home The Business, identifies the
30 "truths" that can make the difference between success
and failure in a homebased business. Kim offers one-on-one coaching
by telephone to motivated individuals, providing practical
marketing advice and budget-conscious strategies unique to your
business. To receive free how-to articles and advice, get
information on coaching and appearances, read a book excerpt, or
contact Kim, visit http://www.smallbusinessnow.com,
a huge site devoted exclusively to marketing your small
business.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.
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