7/12/2012

S1 Sales v/s Marketing

Gurudas NULKAR

Youre a pretty good sales rep,

except for the 9 times
you called me Wallet instead of Walter
MM| Gurudas Nulkar

Marketing is a noun, not a verb

MM| Gurudas Nulkar

Sales V/s Marketing

SELLING
focuses
on
the
needs of
the seller
to convert
product to
cash

Product
focus

Marketing
focuses on
the needs of
the
buyer
and
the
need
to
satisfy
the
buyer
through the
offering

Customer
focus
MM| Gurudas Nulkar

Gurudas Nulkar 2012

7/12/2012

Sales V/s Marketing

Sales influences the customer to buy what the
company has produced
Marketing influences the company to produce what
the customer wants

Sales

Marketing
Marke
ting
MM| Gurudas Nulkar

Works to increase
current volume and
meet current sales
budgets
Interacts with individual
customers
Focus on short term
concerns todays
products, todays
customers, todays
strategies
Uses skills, methods &
techniques for results

Works to increase
profitability building
competitive offerings
Interacts with markets
and individual customers
Focus on long term
competitiveness
Uses tools of marketing
research, value creation
and relationship
management

MM| Gurudas Nulkar

Contrasts

Volumes
Short term results

SALES

Profits
Long term competitiveness

MARKETING

Individual customers
Field work

Segments
Research
Understanding customers needs,
buying process, end uses, their
business

Understanding products,
technology, materials

MM| Gurudas Nulkar

Gurudas Nulkar 2012

7/12/2012

Marketing
The set of processes for creating, communicating and
delivering value to customers and managing
customer relations in ways that benefit the
organization & its stakeholders

acquiring,
delighting and
retaining
customers

Help in creation of
competitive
advantage

Higher prices or
Lower costs
MM| Gurudas Nulkar

So what is Marketing?
Accounting when it develops invoice formats and
statements that customers understand
Finance when it develops flexible payment terms,
reconciles accounts, helps customers cash flow
HR when it involves customers in crew selection,
identifies employees training needs customer-wise
Operations when it attends to possible issues
Operations when front office helps guests, when QC
forewarns possible issues, when Dispatch changes
labeling to suit customers
Value creation for customers
MM| Gurudas Nulkar

Traditional Marketing functions

Traditional Marketing controlled functions - MR,
Advertising & promotion
Are least important to customers

Marketing must understand the entire value chain

manufacturing, operations, engineering, purchasing
and logistics

MM| Gurudas Nulkar

Gurudas Nulkar 2012

7/12/2012

Marketing is NOT a department!

Marketing is the organization wide function
Responsibility of every employee - Acquiring,
delighting and retaining customers

MM| Gurudas Nulkar

Marketing Management Process

R
Research

STP

MM

Segmentation Marketing Implement

Targeting
Mix - 4P
ation
Positioning

Control

MM| Gurudas Nulkar

Customers

Segmenting

Collaborato
rs

Targeting

Competitor
s

Positioning

Marketing Mix
Product

Place

Promotion

Pricing

Customer
Acquisition

Context

Communicating
Value

Company

Sustaining
Value

Capturing
Value

Creating Value

Research

Customer Retention

MM| Gurudas PROFITS

Nulkar

Gurudas Nulkar 2012

7/12/2012

Sales effectiveness Marketing effectiveness

Excellent sales v/s poor
marketing
Short term needs v/s long
term value
Selling features v/s selling
value

MM| Gurudas Nulkar

Sales or Marketing?

MM| Gurudas Nulkar

Sales + Marketing

Competitive differentiation
Sales cycles are shorter
Market entry costs go down
Customer perception improves
Customer retention improves

Discuss :
Often, firms that recognize the need for
marketing efforts, promote a top Sales Manager
to the VP Marketing.
Would you recommend this?
MM| Gurudas Nulkar

Gurudas Nulkar 2012

7/12/2012

Marketing Then & Now

Demographics
Choice
Buy products

The New Age

Consumer

Word of mouth
Standardization
Mass marketing
Centralization
Customer Acquisition

MM| Gurudas Nulkar

Growing population
Legacy
brand
MARKETING
SLUMBER
Higher
efficiencies
Lower costs

MM| Gurudas Nulkar

Transitions : Sales to marketing

Basic transport

Value changes in market

Captured in offering

Connectivity

Basic transport

Business needs

Classy feel

Flight experience

Web tickets

Basic transport

Business needs

Fun & Glamour

Entertainment

Off flight experien

Web experience

Basic transport

Travelers needs

No-service

On-time experience

MM| Gurudas Nulkar

Gurudas Nulkar 2012

7/12/2012

Sales Focus

MM| Gurudas Nulkar

Now thats a Sales driven organization!

MM| Gurudas Nulkar

Tata Chemicals - Marketing Orientation

Tata Chemicals Tata Salt
Customers
Indian Households
Institutional buyers in urban India

What are their needs?

The product quality, consistency

The package
The price
The place
The assurance

MM| Gurudas Nulkar

Gurudas Nulkar 2012

7/12/2012

Tata Chemicals - Marketing Orientation

Tata Chemicals Tata Salt
How can it serve the customers better
than competition?

Tata Brand
Manufacturing, quality, consistency
Package as per international standards
Communicate the benefits, more muscle
Reach out

How can it generate profits?

Tata Salt and its fellow

brands go beyond
taste to target health
initiatives such as
iodine deficiency and
low sodium
requirements

In Manufacturing => operating efficiencies

In Reach , network => Economies of scale
In Brand => promise, consistency, image

Higher prices, more

retail margins

MM| Gurudas Nulkar

Tata Chemicals not just salt

Customers health conscious segment of society that
faces lifestyle affecting diseases such as hypertension,
heart disease, diabetes, etc.
Offering - Low sodium salt category (Tata Salt Lite), to
provide consumers with a health option: salt that
contains 15 per cent lower sodium than ordinary salt
and is enriched with iodine and potassium

MM| Gurudas Nulkar

Tata Chemicals not just salt

MM| Gurudas Nulkar

Gurudas Nulkar 2012