One of the major highlights of last falls' Annual Conference at Pioneer Hi-Bred in Des Moines was the Sales and Marketing Panel. This "coming together" of Sales and Marketing produced some interesting and topical subject matter that this column will detail in each edition of the newsletter during 2004.
In our last column we covered the evolution of Sales and Marketing from an "Oil and Water" relationship with little alignment to today's "Pasta & Sauce" with both having similar objectives, goals and approaches while practicing different professions and different sciences. This issue will focus on the question of "What does the future look like for the Sales & Marketing alignment?"
Following are the thoughts and ideas shared by the panel.
The lines continue to become blurred and to quote "Martha", "It's a good thing." Bernie Defreitas discussed organizations having a "commercial department" that seeks first to understand the needs of the customer and what is the differentiated value that can be delivered to the customer. Start with an understanding of the customers' business strategy and what problems vendor organizations can help solve and deliver results in language the customer understands (financial.) With this type of alignment and reporting of results it's very clear to everyone in the organization that the customer comes first.
Sales and Marketing need to move from being seen as an expense to an investment by internal management (CFO). Producing incremental value is why both exist and they need to justify their existence every day.
Steve Burbridge cited an example of how Sales communicating an understanding to Marketing on the competitive landscape has begun to make a difference. Marketing need to take a broad look past their own product offerings and look at the vast array of products that make up categories within retail classes of trade. Then develop broad strategies for growth against this level of competition, not just the companies' unique product offerings. Cross-pollination across jobs has been a successful initiative. Marketing Trained professionals have taken on responsibilities on the sales side offering unique perspective and a "sounding board" for Sales.
Mike Kostrzewa moved the history analogies forward hoping that the Sales/Marketing look change from Pasta & Sauce to Spinach Pasta. This continuing evolution needed, as customers get bigger and demands for both Sales and Marketing increase. In large accounts such as Wal-Mart, Marketing and Sales have to work hand in hand and in many cases are playing roles that each may have played in the past. Collaborative, consultative selling positions taken by organizations blur the roles and members of customer teams need development in multiple disciplines. In many cases sales becomes strategic and marketing becomes sales by leading telemarketing or similar Teams. Customer consolidation and advent of technology have led to a "mind melt" between the two functions.
"Seamless interdependency", not integration was delivered by Vic Hunter. Vic used the example of the two functions being joined by Velcro ... tugging and pulling creates the synergy that makes them better. Vic discussed five (5) trends he sees in the near future.
- The environment is Time Sensitive and needy of information and role of Sales has changed. 30 years ago customer survey results cited the outside salesperson as the #1 resource by purchasing agents. Today it's moved to #5. Inside sales agents have moved up to #1. Applications of this are currently being used at 3-M where short "virtual demos" are being shared with customers after a call-in. This resulting in 1.7 less field visits per customer.
- Six Sigma will move into sales and the customer-facing portion of the sales process. In turn it will drive internal quality for Sales & Marketing.
- Role behaviors are changing and some are not skill trainable as you "can't teach a pig to sing" - in those areas staffing issues will have to be addressed.
- Sales execution around "sensing and responding" from "planning and execution". Real time information makes speed and the interdependency to share information critical between the two functions.
- Commoditization of formal purchasing departments. Skilled purchasers are working to commoditize many offerings. Marketing plays a critical role in idea creation for product differentiation.
In the next issue we will share more insights from the panel.