Premium Essay

Conflict Between Marketing and Selling

In:

Submitted By maboi14
Words 2479
Pages 10
Literature Review Essay
Relationship between ‘Marketing’ and ‘sales’ in B2B organizations

Introduction Within a ‘Business to Business’ organization, relations between sales and marketing are often dysfunctional meaning they do not always operate properly or as they should (Kotler, Rackham & Krishnaswamy, 2006). One of the key goals of a business is to make profits, which is done by making sales, which only happens by providing a product that satisfying the customer’s needs (Futrell, 2013). This requires both sales and marketing. You would expect sales and marketing to be well aligned in a successful organization, however this is far from the case.

This essay will first look at the causes that usually lie behind the concern that sales and marketing do not always act collaboratively to the benefit of the organization but in fact have a dysfunctional relationship exists between marketing and sales divisions. It will look into the ways in which this problem can negatively impact on an organization's ability to serve its customers and compete effectively. Finally potential solutions will be identified and discussed in relation to improving the synergy and integration between sales and marketing, which will ultimately allow organizations serve their customers and compete most effectively in this ever changing world. What causes Sales and Marketing relationship to be dysfunctional? Within a business to business organization, sales and marketing do not always act collaboratively to the benefit of the organization (Rouziès, Anderson, Kohli, Michaels, Weitz & Zoltners, 2005).This lack of collaboration and subsequent deficiency of communication originates from what (Kotler et al., 2006) has described as ‘economic conflict’ and ‘cultural conflict’. Others have described this as physical and philosophical differences, however these are essentially the same things (Lorge,

Similar Documents

Premium Essay

Kotler-Keller - Marketing Management : Delivering Value

...good to have one channel of distribution… Kathy Ireland Chief Designer of RFA, Founder of KIWW, Author, Model Classified - Highly Confidential 1 “ CONTENT • DESIGNING & MANAGING INTEGRATED MARKETING CHANNELS – Marketing Channels and Value Networks – The Role of Marketing Channel – Channel Design Decision – Channel Management Decision – Channel Integration & Systems – Conflict, Cooperation & Competition – E-Commerce Marketing Practices • MANAGING RETAILING, WHOLESALING & LOGISTICS – Retailing – Wholesaling – Market Logistics Classified - Highly Confidential 2 DESIGNING & MANAGING INTEGRATED MARKETING CHANNELS Classified - Highly Confidential 3 MARKETING CHANNELS AND VALUE NETWORKS Marketing Channel “the set of firms and individuals that take title, or assist in transferring title, to a good or service as it moves from the producer to the final consumer or industrial user” Kotler, P., and Armstrong (1989) Principles of Marketing. Prentice-Hall Classified - Highly Confidential 4 MARKETING CHANNELS AND VALUE NETWORKS Why It’s Important • Affect not only marketing decisions but also non-marketing’s • Convert potential buyers to profitable customers • Not only serve market but also make market Classified - Highly Confidential 5 MARKETING CHANNELS AND VALUE NETWORKS Marketing Channel Strategy Push Strategy Producer inducing Intermediaries Consumer When intermediaries can be persuaded to stock the product, in preference to those of competitors, then when customers...

Words: 1687 - Pages: 7

Premium Essay

Effect of Channels of Distribution on the Sales of a Product

...CHAPTER ONE Introduction 1.1 Background to the Study Most producers do not sell their goods directly to the final users between them stands a set of intermediaries performing a variety of functions. The process of distribution of goods involves all human and physical means which aid the smooth transfer of such good from the manufacturer to the final consumer. Nickeil (1998) The growing of distribution is a key strategy variable in marketing management. In deed, if one look at the major strategy of the marketing mix – product, price, promotion and distribution, the greatest potential for achieving a competitive advantage now lines in distribution. Distribution still offers a new frontier for competing usefully especially if the emphasis is placed on the design and management of superior marketing channel systems to provide excellent customer services. Yet design optimal marketing channel system to boost sales, formulating innovative distribution strategies and management channels system effectively is no simple task. To day, companies are faced with choice of distribution path or strategy that will make product readily available to potential customers. Achumba (1994). Also the need for other institutions or intermediaries in the delivery of good is sometime questioned, particularly since the profits they make are viewed as adding to the cost of product which may eventually slow down sales of the product. The concept of distribution refers to where and how product and services to...

Words: 8072 - Pages: 33

Premium Essay

Distribution Strategy

...distribution channel as one slice of the overall marketing pie. It is how a company gets its products or services to the consumers. Few producers sell their goods directly to the final users. Most use intermediaries to bring their product to market. Most producers do not sell their goods directly to the final users; between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel (also called distribution channel) How can channel members add value: -In making products and services available to consumers; -Gathering key information about potential and current customers, and competitors; - Promotion   Developing and spreading communications about offers; Physical distribution   Transporting and storing goods; Risk taking   Assuming some commercial risks by operating the channel (e.g. holding stock)    ; The primary purpose of any channel of distribution is to bridge the gap between the producer of a product and the user of it. Distribution channels include wholesalers, e-commerce websites, catalog sales, consultants, a direct sales force who sell over the phone, in person or both, dealers, home shopping networks and retailers. Each channel member depends on the others. * For example: Ford Dealer depends on Ford to design cars that meet consumer needs. Ford depends on their dealers to attract consumers, convince them to buy Ford cars. The best promotion or marketing won’t get the product bought if it is being...

Words: 1886 - Pages: 8

Premium Essay

Marketing Wk 5 Checkpoint

...Wk5-Checkpoint 1. What is the difference between a push marketing strategy and a pull marketing strategy? Explain how each of these strategies work. Push marketing strategy is putting in use the manufacturer’s sales force, trade promotion money, or other means to induce intermediaries to carry, promote, and sell the product to end users. Appropriate when there is a low brand loyalty in a category and the product is an impulse item. In the pull strategy the manufacturer uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from the stores, thus inducing the stores to order it. Appropriate when there is high brand loyalty and high involvement in the category. 2. Describe channel conflict and provide an example. Channel conflict is generated when one channel member’s actions prevent another channel from achieving its goal. There can be a horizontal, a vertical, and a multi-channel conflict. An example of channel conflict is when Sony Manufacturer sells to discount retailers such as Wal Mart as well as independent electronic stores such as Ultimate Electronics. 3. What is a direct marketing channel? Please provide an example. A direct marketing channel consists of a manufacturer selling directly to the final customer. It includes catalogs, mailing, telemarketing, television direct-response marketing, electronic shopping, fax mail, e-mail, voice mail, blogs, and websites. Examples of this are shopping on Overstock...

Words: 695 - Pages: 3

Premium Essay

Managing Channel Member Behaviour

...MANAGING CHANNEL MEMBER BEHAVIOUR A project for Sales and Distribution Management Submitted to Prof. Jaideep Mukherjee Submitted By: Group No. 19 Renuka Dabas (Roll No. 11PT2-59) Sonali Jethi (Roll No. 11PT2-65) TABLE OF CONTENTS S. No. | Title | Page No. | 1 | Introduction | 3 | 2 | Channel Conflicts | 3 | 3 | Causes of Channel Conflict | 4 | 4 | Effects of channel conflict | 5 | 5 | Types of Conflicts | 5 | 6 | Minimizing and Managing Channel Conflict | 7 | 7 | Channel conflict or Channel Choice | 8 | 8 | Distributor Sales Force Motivation/Channel Member motivation | 8 | 9 | Training of Distributor Sales Force | 10 | 10 | References | 13 | Introduction A distribution channel or 'route-to-market' is a 'path' or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). Most products are purchased from channel intermediaries whose main purpose is to deliver product from the manufacturers to the end users. The purpose of a channel intermediary is to move products to consumers, whether business or consumer. Channel intermediaries consist of wholesalers, agents or brokers, distributors, dealers, retailers. Channel members can have transactional function, logistical function, inventory storage function or a facilitating function. Channel intermediaries are extremely important in the chain of delivering...

Words: 5133 - Pages: 21

Premium Essay

Marketing

...9-507-039 REV: DECEMBER 1, 2006 MODULE NOTE Personal Selling and Sales Management Salespeople represent a large part of labor in most economies. In its latest report,1 the U. S. Bureau of Labor Statistics estimates that nearly fourteen million people are employed in sales and salesrelated occupations and that these people earn over $450 billion in wages. Moreover, salespeople represent a major investment for many companies, accounting for as much as 40% of their costs. A company’s fortune often rises and falls on the productivity of its salespeople. The goal of this module is to develop a better understanding of what salespeople do, what motivates them to succeed, and how to effectively manage their efforts. The Salesperson - A Boundary-Spanning Role Salespeople work on the boundary between a company and its customers. To the company, the salesperson is the voice of the customer. To the customer, the salesperson is the physical embodiment of the company. This boundary-spanning role creates unique tension for salespeople because they are constantly forced to reconcile the competing interests of both the buying and the selling organizations. Figure A: The Salesperson’s Boundary-Spanning Role Company Salesperson Customer Source: Casewriter. 1 These data come from the May 2005 National Occupational Employment and Wage Estimates report, which was accessed online at http://www.bls.gov/oes/current/oes_nat.htm#b41-0000 on 1 December 2006. See occupation code...

Words: 5056 - Pages: 21

Premium Essay

Avon Case

...layoffs and closes some manufacturing. This is also involved in the decision to withdraw from the Japanese market in order to focus on China in 2010. In the same year, Avon invested in Shanghai in its R&D facilities, develop new products to better meet the needs of consumers in Asia.(Janice Teal, 2010)Avon is confident in the Chinese market; it believes that only re-select full direct selling model then will turn deficits to profit on sale performance in China.   Why Avon is failing in China? As the first of the five largest direct selling companies in the world, Avon was the inventor of the global direct sales model and entered China in 1990. It is the first large-scale foreign direct selling companies there.  In order to adapted and opened Chinese Market. From 1998, it had to change the market model under the legal restriction in China. They begin to take the traditional retail model. Avon is selling its products in stores until 2006 when it got a license for direct sales from the government. Since 2006, Avon switch sales model from retail model to a hybrid system of retails and direct selling model in China. But it results Avon in a serious decline in the number of stores and sales in 2010. The company also reported that the amount of revenue fell by 31% compared with 2001. (AVON PRODUCTS INC, 2011)Therefore the company turned to focus on a...

Words: 686 - Pages: 3

Premium Essay

Marketing

...Marketing Channels and Supply Chain Management Chapter Objectives •  Explain why companies use distribution channels and discuss the functions these channels perform. •  Discuss how channel members interact and how they organize to perform the work of the channel. •  Identify the major channel alternatives open to a company. •  Explain how companies select, motivate, and evaluate channel members. •  Discuss the nature and importance of marketing logistics and integrated supply chain management. Chapter Overview This chapter covers the important topics of supply chain management. Supply chains consist of both upstream and downstream partners, including suppliers, intermediaries, and even intermediary customers. The term value delivery network expands on the limited nature of "supply chain." It consists of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system. The chapter focuses on marketing channels--the downstream side of the value delivery network. A company's channel decisions directly affect every other marketing decision. And because distribution channel decisions often involve long-term commitments to other firms, management must define its channels carefully, with an eye on tomorrow's likely selling environment as well as today's. Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use...

Words: 6245 - Pages: 25

Premium Essay

Marriott Group Pricing Optimizer

...Journal of Hospitality Marketing & Management ISSN: 1936-8623 (Print) 1936-8631 (Online) Journal homepage: http://www.tandfonline.com/loi/whmm20 Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators' Perspective Eunha Myung , Lan Li & Billy Bai To cite this article: Eunha Myung , Lan Li & Billy Bai (2009) Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators' Perspective, Journal of Hospitality Marketing & Management, 18:8, 811-828, DOI: 10.1080/19368620903235837 To link to this article: http://dx.doi.org/10.1080/19368620903235837 Published online: 09 Oct 2009. Submit your article to this journal Article views: 387 View related articles Citing articles: 3 View citing articles Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=whmm20 Download by: [Computing & Library Services, University of Huddersfield] Date: 16 December 2015, At: 08:17 Journal of Hospitality Marketing & Management, 18:811–828, 2009 Copyright © Taylor & Francis Group, LLC ISSN: 1936-8623 print/1936-8631 online DOI: 10.1080/19368620903235837 Managing the Distribution Channel Relationship With E-Wholesalers: Hotel Operators’ Perspective Downloaded by [Computing & Library Services, University of Huddersfield] at 08:17 16 December 2015 Journal 1936-8631 1936-8623 WHMM of Hospitality Marketing & Management, Vol. 18, No. 8, August 2009:...

Words: 7372 - Pages: 30

Premium Essay

Advertising

...QUESTION 1: Key reasons for conflicts between Sales and Marketing. First, Sales department blame to Marketing to set price too high and bring many difficult to Sales in introducing and selling. In addition, Salespeople think Marketing fail in advertising and they don’t have idea about what customer need. Instead of the budget is contributed to Marketing Department, Salespeople will use it more effective. In contrast, mission of Sales is focus on selling and sometime they can’t think about a long term strategy or a plan for future. Although Sales have a good communication with customer, it is just in individual scale not in a developing plan. Second, they have a conflict about price. Sales produce good with a cheaper price than Marketing to attract demand of customer. Marketing want to bring benefit as big as possible to the firm, therefor, they will use the best way to cut the expense and raise the revenue. Beside that, Marketing want to spend their time to set up and think about strategy, they can draw a picture with the large view and future plan. Sales have the different way. They prefer to persuade and communicate with potential customer. In conclusion, I think Sales and Marketing have the same goal that is put their company’s name in customer but they have the different way. Sales focus on number of sale and take care for customer to keep them. Marketing have a larger mission, they have to think about benefit, risk, finance and many other things. Simply, Sales prefer...

Words: 380 - Pages: 2

Premium Essay

Marketing Approach

...Marketing Channels and Supply Chain Management Chapter Objectives •  Explain why companies use distribution channels and discuss the functions these channels perform. •  Discuss how channel members interact and how they organize to perform the work of the channel. •  Identify the major channel alternatives open to a company. •  Explain how companies select, motivate, and evaluate channel members. •  Discuss the nature and importance of marketing logistics and integrated supply chain management. Chapter Overview This chapter covers the important topics of supply chain management. Supply chains consist of both upstream and downstream partners, including suppliers, intermediaries, and even intermediary customers. The term value delivery network expands on the limited nature of "supply chain." It consists of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system. The chapter focuses on marketing channels--the downstream side of the value delivery network. A company's channel decisions directly affect every other marketing decision. And because distribution channel decisions often involve long-term commitments to other firms, management must define its channels carefully, with an eye on tomorrow's likely selling environment as well as today's. Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use...

Words: 6246 - Pages: 25

Premium Essay

Conflict Management with Sales Partners at Hp

...Case Study: Conflict Management with Sales Partners at HP Case Study: Conflict Management with Sales Partners at HP Adrià Rodríguez Porras Student ID: 1300014 Course: Management Science (Marketing) Summer Semester 2014 Adrià Rodríguez Porras Student ID: 1300014 Course: Management Science (Marketing) Summer Semester 2014 Hewlett-Packard Company (or HP) is an American multinational information technology corporation specialized in providing hardware, software and services to consumers, small- and medium-sized businesses (SMBs) and large enterprises. In 2012 it was the world's largest PC vendor by unit sales. [1] The purpose of this illustrative case study is to describe the company’s adopted strategy used to reach this privileged position. By means of analysing HP’s sales system, sales channels and the recent conflicts with some partners, we will try to find out not only what has sparked these problems but also help prove a solution for this undesirable situation. Hewlett Packard’s sales system Reaching those levels of worldwide excellency requires a very well-defined marketing strategy, since they not only market their products directly but also via partnerships. That is why they invest time and energy in attracting, training and keeping valid partners. A good example of that is the PartnerOne program.[2] When designing the sales system, HP pondered who was going to undertake the selling activities (selection of sales entities) and how was meant to combine...

Words: 1752 - Pages: 8

Premium Essay

Tesco Marketing Case Study

...Evaluate the Tesco marketing (distribution) channels Marketing-channel decisions are one of the most critical decisions that Tesco needs to make because the chosen channel could profoundly affect all other marketing decisions. Intensive market research would need to be performed by analysing customer needs, establishing channel objectives and identifying and evaluating the major alternatives to be able to decide which type of channel is suitable. Tesco uses their Club Card to retrieve customer buying habits to tailor their marketing channels more effectively. For example to get customers into the store, Tesco gives out vouchers to targeted individuals and their product interests. Three of the most important trends are the growth of vertical marketing systems, horizontal marketing systems and multichannel marketing systems. All marketing channels have the potential for conflict and competition resulting from such sources as goal incompatibility, poorly defined roles and rights, perceptual differences and interdependent relationships. Horizontal Conflict: Occurs among firms at the same level of the channel. For instance, some Toyota dealers might complain the other dealers in the same city steal sales from them by pricing too low or by selling outside their assigned territories. Or one hotel franchise might complain about other operators overcharging guests or giving poor service, hurting the overall franchise image. Vertical Conflict: Conflicts between different levels...

Words: 267 - Pages: 2

Premium Essay

Ethical Issues Affecting Each Component of the Marketing Mix

...Component of the Marketing Mix Ethical issues in businesses among other related issues like conflicts or success revolves around relationships. In today’s business world, it has become inevitable to built strong and effectives between all the key players in businesses (Carroll et al 403). The board of directors in every business has the mandate of giving direction and oversight making sure that the business does not stray from its course and remains relevant in achieving its objectives in a socially acceptable, legally acceptable and ethical manner. In many instances of unethical business conduct, there exists a certain degree of compliancy and knowing corporation which acts to perpetuate the acceptance of such conduct. Importantly, most ethical issues come into existence due to conflicts in belief patterns and value conflicts regarding what is wrong or what is right. This occurs because ethical standards are a derivative of deeply-rooted personal believes and societal morals which may not be universally agreed upon. The elements of the marketing mix are important aspects of the business which can be evaluated in the light of ethical issues. Marketing mix encompasses all the major areas of decision making affecting the marketing process and when carefully blended, desirable results for the organization are obtained. As marketing managers make decisions about the overall process of marketing, they have to consider the specific elements of the marketing mix which include...

Words: 1662 - Pages: 7

Premium Essay

Aaaaaaaa

...the following statements about branding are true except? C A) Branding facilitates buying. B) Branding may provide psychological benefits for the buyer. C) Branding differentiates a firm's products from competitors. D) Branding helps focus and facilitate marketing efforts. E) Branding guarantees that the consumer will be satisfied with the product's quality. 4. The goal of follow-up of sales by a salesperson is to build customer? E A) knowledge B) competence C) differentiation D) technical expertise E) loyalty 5. According to the traditional demand curve, a low price will result in: D A) a reduction in the quantity demanded. B) a reduction in the quantity produced. C) an increase derived demand. D) an increase in the quantity demanded. E) no impact upon the quantity demanded. 6. What is the basic goal/purpose of relationship selling? To build customer loyalty and Profits and continued financial gain 7. Why might a company pursue repositioning rather than other marketing strategies? Because the new strategy is more suitable for the new company. 8....

Words: 3268 - Pages: 14