Voice Lecture by CCK

1. a guide to HBR
Ending the war between
Sales & Marketing
By Philip Kotler, Neil Rackham, and Krishnaswamy
- The HBR July-August 2006
• Recommended Audience
기자/기업실무자 CEO/임원 박사과정 입문자 교수
© 2006 by Chung, Chang kwon

2. 권고드립니다.
본 자료는 HBR의 내용을 재 구성한 것이기 때문에 의미전달상 왜곡이 있
을 수 있습니다. 온전한 이해를 위해 원문을 읽어보시길 권고 드립니다.
- 정창권 Dream
정창권
- 서울대 사범대, 헬싱키 MBA(디자인경영)
-아시아나항공
-휴넷(2000년부터 지금까지)
(이사, 평생학습사업본부, 성공스쿨 마스터 코치)
ckchung@Hunet.co.kr
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©2006 by C. K. Chung

3. In many companies, sales forces and marketers
feud like Capulets and Montagues
– with disastrous results.
Here’s how to get them to lay down their swords.
©2006 by C. K. Chung

4. Blames
To Marketing
To Sales
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©2006 by C. K. Chung

5. Blames
To Marketing
- Be out of touch with customers.
- Use too much budget.
- only not to be proven effective
- otherwise useful to hire more salespeople
To Sales
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©2006 by C. K. Chung

6. Blames
To Marketing
- Be out of touch with customers.
- Use too much budget.
- only not to be proven effective
- otherwise useful to hire more salespeople
To Sales
- No strategy
- Myoptic
- too focused on individual customer experience
- blind to the future
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©2006 by C. K. Chung

7. Different roles for Marketing
according to growing stages of company or product
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©2006 by C. K. Chung

8. Different roles for Marketing
according to growing stages of company or product
1st stage , ＝Sales
2nd stage, an adjunct to the sales force
3rd stage , an independent player
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©2006 by C. K. Chung

9. 2nd stage, an adjunct to the sales force
1. Helping relieve the sales force of some chores
2. Conducting research to calibrate the size of the market
3. Choosing the best markets and channels
4. Working with outside agencies on advertising and
promotion
5. Developing collateral materials to help the sales
force attract customers and close sales
6. Using direct mail, telemarketing, and trade shows
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©2006 by C. K. Chung

10. 3rd stage , an independent player
( more than 4 P’ ) – continued..
1. A marketing function inside Sales, a sales function
inside Marketing
2. Each function takes on tasks it believes the other
should be doing but isn’t.
3. The salespeople wish that the marketers worry about
future opportunities (long-term strategy ) and leave
the current opportunities ( individual and group
sales ) to them.
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©2006 by C. K. Chung

11. 3rd stage , an independent player
( more than 4 P’ )
4. More higher-level tasks like segmentation, more close
with Strategic Planning, Product Development,
Finance, and Manufacturing.
5. Brand managers become powerful.
6. A ‘marketing-led’’ company issue
7. Others question the marketers’ competencies,
experience and understanding to lead the organization.
8. During economic downturn, more vulnerable to be cut
than Sales
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©2006 by C. K. Chung

12. Why?
• Economic friction comes from
– Budget game
– Different point of view of pricing, promotion,
and product
– Tangible vs. intangible
– Long-term impact vs. short-term impact
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©2006 by C. K. Chung

13. Why?
• Cultural friction relies on that
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©2006 by C. K. Chung

14. Why?
• Cultural friction relies on that
– Marketers are
• Competitive advantage for the future.
• More analytical, data oriented, and project focused.
• Seemingly, not-in-action like, namely, behind a desk.
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©2006 by C. K. Chung

15. Why?
• Cultural friction relies on that
– Marketers are
• Competitive advantage for the future.
• More analytical, data oriented, and project focused.
• Seemingly, not-in-action like, namely, behind a desk.
– Salespeople are
• Focusing on existing and potential customers.
• Skilled relationship builders.
• Used to rejection and it doesn’t depress them.
• Living for closing a sale.
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©2006 by C. K. Chung

16. Why?
• Very different performance evaluation
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©2006 by C. K. Chung

17. Why?
• Very different performance evaluation
– Salespeople
• Satisfy quota goals, that’s it!
– Marketers
• Spend budget in program, not people, which takes
much long time to know whether a program has helped
to create long-term competitive advantage.
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©2006 by C. K. Chung

18. 4 Types of Relationship
• Undefined
– Independent
– Conflict-resolution
• Defined
– ‘Good fences make good neighbors.’
– Process
• Aligned
– Flexible boundary
– Joint planning and training
• Integrated
– ‘Rise or fall together’
– Deeply embedded in management of key accounts
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©2006 by C. K. Chung

19. Do We Need to Be More Aligned?
Undefined
The company is small.
Don’t make The company has good informal relationships.
any change
Marketing is still a sales support function.
if……
Tighten the Conflicts are evident between the two functions.
relationship
There’s duplication of effort between the functions; or tasks are falling
between through the cracks.
Sales and
The functions compete for resources or funding.
Marketing
if….
move to Defined
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©2006 by C. K. Chung

20. Do We Need to Be More Aligned?
Defined
The company’s products and services are fairly cut-and-dried.
Don’t make Traditional marketing and sales roles work in this market.
any change
There’s no clear and compelling reason to change.
if……
Even with careful definition of roles, there’s duplication of effort between the
Tighten the functions; or tasks are falling through the cracks.
relationship
The markets is commoditized and makes a traditional sales force costly.
between
Sales and Products are developed, prototyped, or extensively customized during the sales
process.
Marketing
if…. Products life cycles are short-ending, and technology turn-over is accelerating.
move to Aligned
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©2006 by C. K. Chung

21. Do We Need to Be More Aligned?
Aligned
The company lacks a culture of shared responsibility.
Don’t make Sales and Marketing report separately.
any change
if…… The sales cycles is fairly short.
Tighten the A common process or business funnel can be created for managing and
relationship measuring revenue-generating activities.
between
Sales and
Marketing
if….
move to Integrated
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©2006 by C. K. Chung

22. Do We Need to Be More Aligned?
Undefined Defined Aligned
The company is small. The company’s products and services The company lacks a culture of
are fairly cut-and-dried. shared responsibility.
The company has good
Don’t make any informal relationships. Traditional marketing and sales roles Sales and Marketing report
change if…… work in this market. separately.
Marketing is still a sales
support function. There’s no clear and compelling reason The sales cycles is fairly short.
to change.
Conflicts are evident between Even with careful definition of roles, A common process or business
the two functions. there’s duplication of effort between the funnel can be created for
functions; or tasks are falling through managing and measuring
There’s duplication of effort the cracks. revenue-generating activities.
between the functions; or
Tighten the tasks are falling through the The markets is commoditized and
cracks. makes a traditional sales force costly.
relationship
between Sales The functions compete for Products are developed, prototyped, or
resources or funding. extensively customized during the sales
and Marketing if….
process.
Products life cycles are short-ending,
and technology turn-over is accelerating.
move to Defined move to Aligned move to Integrated
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©2006 by C. K. Chung

23. Moving from defined to aligned continued..
if ..
ü your industry is changing in significant ways.
ü the market is becoming commoditized, for example, a
traditional sales force may become costly.
ü the market is moving toward customization.
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©2006 by C. K. Chung

24. Moving from defined to aligned continued..
1. Encourage disciplined communication next page
2. Create joint assignments; rotate jobs
– Marketers → sit on important account-planning sessions
– Salespeople → sit on product-planning reviews
3. Appoint a liaison from Marketing to work with the sales force
4. Colocate marketers and salespeople
5. Improve sales force feedback
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©2006 by C. K. Chung

25. Moving from defined to aligned continued..
※ Encourage disciplined communication
- Hold regular meetings.
- Focus on action items.
- Develop systematic processes and guidelines like ;
- “You should involve the brand manager whenever the sales
opportunity is above $2 million.”
- “We will not go to print on any marketing collateral until
salespeople have reviewed it.”
- “Marketing will be invited to the top the critical account reviews.”
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©2006 by C. K. Chung

26. Moving from aligned to integrated
continued..
1. Appoint a chief revenue ( or customer ) officer.
2. Define the steps in the marketing and sales funnels.
nest page
3. Split Marketing into two groups.
① Upstream : strategic
• shares its insights with senior managers and product developers
② Downstream : tactical
• help salespeople develop and qualify leads.
4. Set shared revenue targets and reward systems.
5. Integrate Sales and Marketing metrics.
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©2006 by C. K. Chung

27. Define the steps in the marketing and sales funnels.
• Integrating Marketing into the sales
– Solution collateral
• organized templates and customizing guides
– when customers are nearing a decision,
Marketing ⇒ case study material, success stories,
customers’ concerns
– during contract negotiations
Marketing ⇒ advice on planning and pricing
• The upstream, strategic decision should be matched
by Sales’ involvement
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©2006 by C. K. Chung

28. The Buying Funnel
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©2006 by C. K. Chung

29. How Well Do Sales and Marketing Work
Together?
Sales and Marketing Integration Checklist
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©2006 by C. K. Chung

30. 후기
• 듀퐁의 사례
Customer Interview를 할 때에는 꼭 마케터와 영업 그리고 생산담당이 같
이 한다고 합니다. 인터뷰이후에 다시 회사로 와서는 voice recording 된 것
을 토대로 각 자가 리포트를 작성하는데 놀랍게도 세 부서의 리포트가 다
르다는 것입니다. 자기가 보고 싶은 것만 보았기 때문이지요. 이런 단계에
서 다시 interviewee에게 판결을 내려달라고 합니다. 그 결과 모두가 틀렸
다는 것입니다. 이런 식의 feedback system을 통해서 타 부서와의 차이에
대해 알게 되고, 의견을 좁힐 수 있다는 것이지요. 이런 인터뷰 트레이닝
을 위해서 1년 반이나 투자한다고 합니다.
• 본 아티클을 통해서 제일 가슴에 남는 것은 ‘영업과 마케팅은
서로 다르다’라는 것을 인정하는 것에서부터 모든 해결점을
시작되는 것이 아닌가라는 점입니다. 서로에 대한 인정은 열
린 마음을 가질 때에만이 가능할 것 같습니다.
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©2006 by C. K. Chung