Marketing vs, Sales

For any company selling a product the concepts of marketing and sales are very important as they can mean the difference between success and failure. While they are often used interchangeably or grouped together they are two different concepts and it is important to understand those differences. This article will help you understand both concepts clearly when it comes to Marketing vs. Sales.

Sales

Sales refers to the short term need to close a sale, get an agreement signed, or ultimately do what needs to be done to sell whatever it is you are selling. Sales techniques and strategies are really based on what it takes to 'close the deal', which is crucial to any business. If you get customers in the door but cannot get them to buy a product, there is a problem with your sales strategy. Sales strategies are focused on the individual buyer and what needs to be done for them to pull out their wallet, or click on the buy button when it comes to online selling. Companies typically set sales volume targets for a period (weeks, months, and quarters) and have strategies in place where the individuals responsible for actually selling can make those targets.

Marketing

Marketing is a longer term concept than sales and relates to forward looking strategies to understand customer needs, influence customer perceptions, and identify how a company can capitalize on that. The end result of the marketing process, and what it directly supports, is making sales easier. Marketing techniques and strategies are really based on what it takes to identify the right product mix, the prices for those products, and what needs to be communicated to target customers (via advertisement) in order to ensure successful sales. One of the key aspects of marketing strategies is building a brand identity for what a company is selling and this varies from company to company. McDonalds obviously brands their food and advertising far differently than a luxury steakhouse would do. While sales is really the 'push' to buy the product once the customer is there, marketing is the 'pull' that gets the customer to you in the first place. When marketing is done effectively it can also make sales a far easier job for a company, as the customer can already be convinced and ready to buy by the time they actually enter your store (or website). Sales can still succeed without very effective marketing but it certainly makes the job more difficult.

Marketing vs. Sales

When considering marketing vs. sales the important thing for any business owner is to ensure that you are considering both aspects of your overall sales and marketing cycle. With many businesses, marketing and sales are both managed by the same department or even the same individuals due to the fact that they need to be closely related. For example, sales strategies need to incorporate the same messaging as the marketing messages in order to be effective and maximize the chances of successfully making a sale. Focusing on both the 'pull' and the 'push' effectively will ensure that your business is positioned to succeed.

Product Life Cycle Stages

As consumers, we buy millions of products every year. And just like us, these products have a life cycle. Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are launched.

Because most companies understand the different product life cycle stages, and that the products they sell all have a limited lifespan, the majority of them will invest heavily in new product development in order to make sure that their businesses continue to grow.

Product Life Cycle Stages Explained

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.

Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.

The idea of product life cycle management has been around for some time, and it is an important  principle manufacturers need to understand in order to make a profit and stay in business.

However, the key to successful manufacturing is not just understanding this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle.