Question

Topic: Other

Why Is Marketing Different Than Sales?? (please!)

Posted by Anonymous on 2750 Points
I'm being sued for not paying all the Marketing commissions to a former employee who at the time was also being paid sales commissions,(which he received in full $53K+) because all he did was sell, and didn't provide any real marketing services to my company.
I need a concise item by item listing of exactly what marketing is. and what would be expected in Marketing to a machining, job shop.
Please help.
Sincerely
Larry Lynch (owner) Metal Works
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RESPONSES

  • Posted by Peter (henna gaijin) on Accepted
    Hmmm. Of course no matter what we say, the real thing that will be the basis for whether you pay or not was the agreement (hopefully you have it in writing).

    The basic difference in my mind is:

    Marketing is when you do work that is your company promoting to many different people at once. This means producing advertisements, press releases, working with media to get favorable placements, etc. These all are aimed at getting information out about your products to many people at once.

    Sales is where you are going one to one (or small group). The activities involves cold calls, demonstrations, sales calls, etc. All involve one person within your company directly talking to one (or a small group of people all related to each other) within the prospect's company.

    Good luck.
  • Posted by Carl Crawford on Accepted
    hi Larry,

    have you tried www.google.com ? anyway i did a search, some of the links look promising.

    https://www.google.co.nz/search?hl=en&client=firefox-a&rls=org.mozilla:en-U...

    have a nice day

    Carl Crawford
  • Posted by tjh on Accepted
    Do you have any evidences of meetings, warnings, evaluations or any other written documents of you warning him, evaluations, etc., on the failure or lack of marketing?

    Can you prove that he knew he wasn't achieving what was agreed upon, or an original definition between you of what those "marketing" functions were to be?

  • Posted by Peter (henna gaijin) on Member
    f_lynch/metal guy,

    I am confused. Have you placed the wording of the contract somewhere so we can see it (I seem to have missed it)? And what does your wife have to do with it (you mention that she was supposed to sign it before it became binding - did she?)?

    Not sure if this still matters or if it has been resolved in court already.

    Peter
  • Posted by Deremiah *CPE on Accepted
    f_lynch/metal guy,

    All I can tell you is this that Selling would fall under the umbrella of Marketing. Although great marketing sells, Selling is only one small facet of marketing. If all he did was sell for commissions I can not see how that would be considered marketing at all. Selling is only one of the columns underneath the Parthenon of Marketing.

    If you really want to know what marketing is like Jim says read the "bible" on marketing. Is there anything else I can do for you?

    Your Servant, Deremiah, *CPE (Customer passion Evangelist)
  • Posted by SteveByrneMarketing on Accepted
    Larry,

    Jim has provided you with excellent advice, you do have an agreement in principle without much detail, particularly -- how to measure any marketing efforts separate from “Sales & Marketing”? Had this individual really provided “any real marketing (seperate) services” where is the proof, the measurement? In situations where agreements are vague, the business practices that are most common or standard in the marketplace will usually help provide guidelines. With the majority of small businesses, “Sales & Marketing” is treated as a single term for ALL activity that builds revenue. Small businesses typically measure S&M success by their gross sales, and will not divide out a marketing goal of increased brand equity as an example – it’s sales dollars per month or other time period.

    As Jim stated – the burden of proof is on the plaintiff.

    (disclaimer, I’m not an attorney and this not intended to be legal advice)

    Here’s link to American Marketing Association article:
    The reality is that Sales and Marketing need to synch up or sink. The two need to be integrated in order to build customer relationships, enhance brand, capitalize on leads, improve market share and to boost revenue.
    https://www.marketingpower.com/content16836.php

    hope this helps,

    - Steve
  • Posted by Chris Blackman on Accepted
    f_lynch/metal guy

    You are in a tight spot...

    This is a truly global forum -what's your time zone, how many hours have we got here??? This group LURVES a challenge!

    If you can post the agreement somewhere so all can read it and comment it would be helpful. If you can email it to me (see my profile) maybe I can host it on my website and give everyone a link to it. I am on GMT +10 and right now it's 13:35 Tue 16 Nov here. I'm hoping you are at least East Coast (GMT-5) or further away from your deadline.

    One key question - HAVE YOU GOT YOUR LAWYER GOING TO COURT WITH YOU? If not, you may be going into court with your pants down.

    If you haven't been given enough notice of the proceedings (11 Nov sounds tight if it was the first you heard of it) perhaps you can move for an adjournment of a few days while you get a lawyer properly briefed and prepared.

    At the very least, maybe there's a marketing expert near you that is on this forum that could go in as an expert witness to describe the key differences between sales and marketing.

    Come back and tell us what you can. Especially - where you are!

    Good Luck

    ChrisB
  • Posted by Chris Blackman on Member
    Metal Guy

    Another thought.

    How did the agreement define Marketing Commission and Sales Commission? You mentioned these as if they were separate items - the definition of each of them in the document may well be where the resolution if this matter will be found.

    The plaintiff obviously has been given some hope by his lawyer so maybe it's worth looking at the definition as documented and considering a settlement on the courthouse steps.

    Might save throwing good money after bad.

    ChrisB
  • Posted on Accepted
    Hi!

    I would develop a long list of questions for your attourney to ask the plaintiff. If most of the answers are no, then he should not get any more money out of you. Here are just a few:

    1. Did you do any research to figure out who our target market is?

    2. Did you formulate projections such as market potential and marketing budgets?

    3. Did you do any analysis on the competitive environment? Swot? 5 forces?

    4. Did you develop a marketing plan?

    5. Did you do any promotions or develop any collateral for our products like brochures, catalogues, website, email shots, print ads, etc.?

    6. Did you develop some metrics to measure how much of your sales can be attributed to your marketing investment?

    7. Did you track customer satisfaction or customer loyalty in any way?

    8. Do you have a clear idea of what our brand is and how to communicate it effectively?

    Also, if he did develop some things to you, gather them and give them to a marketing expert for review. That review will hopefully be admissable in court.
  • Posted by Peter (henna gaijin) on Member
    In asking about your wife, I wasn't trying to say women aren't of value. Instead I was looking for something directly relevant to this, such if in addition to you saying she normally reads it and signs it, that in this case she did not (meaning that the contract may not be valid).

    Is there still issues related to the marketing? It sounds more like the real issue now are:
    1) how long after someone has left do you still need to pay commissions on a sale
    2) whether the person was actually involved with the sale enough to be owed a commission.

    I am not an expert on #1, but #2 you could fight by continuing what you are doing (showing that he was not involved with the sale, through showing he doesn't know the customer) and also showing the further work you/his replacement needed to do to close the sale in the 6-8 months it took to close the sale since he left.
  • Posted by telemoxie on Accepted
    The oldest known coin has the inscription, "find a need, and fill it". To my way of thinking, Marketing is the process of finding a prospect who has a need, and Sales is the process of mobilizing your organization to fill that that need.

    Most small organizations do not have extensive marketing departments, and so the sales person ends up doing some marketing work. You state in your question that the employee did not provide any "real" marketing - but did he provide any marketing services at all? Did he create letters? Did he make outbound calls? Did he work to define your position in the market? Did he communicate this to others? I'm sure we will all agree that each of us can do a better job in marketing - I know I can do better, I'm sure this person could do better - but I believe the burden of proof will be on you to show that you provided all these services to him.

    I agree with Bob's post above that Sales reps don't generally do a good job of marketing - but I do not believe that is the test the judge will use to decide your case. Unless you have a strong in-house marketing department yourself, in the absence of a copy of your contract, and with the limited information at hand, I'm 80+% sure your former employee performed both sales and marketing duties.

  • Posted by SteveByrneMarketing on Member
    "Marketing is not a function, it is a whole business seen from the customer's point of view" - Peter Drucker

    Selling is a function as seen from the customer's point of view.


    - Steve
  • Posted by Carl Crawford on Member
    So did you win? i would like to know, or is the case still going on?

    merry christmans

    Carl Crawford

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