Sales-Oriented Versus Market-Oriented Companies

Tonight on #IMCchat (the Integrated Marketing Communications chat on Twitter) we discussed the definition  and focus of sales-oriented and market-oriented companies and the advantages/disadvantages of both. Typically  when people hear “sales” and “market” they equate it to sales and marketing…and the unfortunate contention that often seems to exist between the two. Before we go down the path of sales versus marketing, let’s take a look at the characteristics of each type of orientation.

Sales-Oriented Characteristics:

  • Heavy reliance on promotion activity to sell products/services the company wanted to make;
  • Aggressive selling tactics;
  • Promotion consumes a large share of the company’s overall budget;
  • Inside-out thinking (If we build it they will come); and
  • Short-term vs. long-term planning.

Market-Oriented Characteristics:

  • Consumers/Customers less willing to be persuaded;
  • Consumers/customers are knowledgeable about the market and the products/services available;
  • Companies identify what customers want and tailor all business towards those wants/needs (in an efficient manner);
  • Marketing vs. just selling (i.e. management of the 4 Ps, not just promotions);
  • Offers mass customization;
  • Product input before selling (Alpha testing, beta testing, trials, etc); and
  • Long-term vs. short-term planning.

See? We aren’t talking about sales versus marketing at all. We are talking about corporate culture and how the determination is made for producing products and services.

Some of the companies that we talked about included Apple, Zappos, Southwest, Comcast, Ford, DuPont, Delta, SC Johnson. We also discussed companies that were once sales-oriented, but then were driven, by customer response to be more market-oriented, like Dell.

If we are to consider integrated marketing communications and its core being customer-focused, is that even a possibility for a sales-oriented company? If you are a marketer that believes in being market-oriented how do you get management buy-in when the corporate culture they created is internally focused?

More importantly, is it possible to be a little bit country and a little bit rock & roll (Yep, that would be a hat tip to the Osmonds!) That is can a company be both sales- and market-oriented? If they are both, where does innovation fall? And what are the advantages/disavantages? From and IMC advantage perspective, I often think about Fiskars, which is a great example of devoted and loyal customers—known as Fiskateers— helping a company to innovate products.

After taking a look at the characteristics, what kind of company do you work for? What have been your challenges/successes?

[Image: wburnettllc]

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8 Responses to “Sales-Oriented Versus Market-Oriented Companies”

  • Beth

    First i have been meaning to tell you it is good to have you back on the blog trail. Second as for sales vs market approaches. I believe the big issue is that often times sales and marketing are considered equal partners and i believe that if done properly sales is a byproduct of good marketing. not just superficial marketing but a marketing spin throughout the organization. Everything the company does involves their voice and hence marketing. just my 2 cents.

  • Your article begs the question: Hunnhhh?

    It’s clear why you are a one-person, low income shop, Beth. Where have you been for the last 15 years since “selling” became marketing?

    Your article is just another example of meaningless words taking up space and time. A few simple-headed words, no suggestions, no solutions…

  • Beth Harte:

    Rick, thanks! As I said about this isn’t about sales versus marketing at all. It’s about the focus of the company’s culture “If we build it, they will come” (think the Ford Model T) versus “We only build what they want” (think the mass customization like the Dell laptop, etc.). Make sense?

    “Jason”, almost anonymous, but not quite…smooth. BTW, your comment makes it clear that you don’t understand the basic fundamentals of Marketing 101 as this post is basic marketing. Also, sales is a FUNCTION of marketing…but any good marketer would know that. Here’s a suggestion/solution for you, try taking a marketing 101 class — it’ll do you good. By the way, I am teaching it this semester, pop on by I’d love to meet you! ;-)

  • Marc:

    @Jason,I’m all for rebuttal, discussion and disagreement but when you can’t tell us who you are, there’s no reason to put any credence in what you say, nor to attach value to it either. FAIL Bro. Big Fail.
    .-= Marc´s last blog ..Social Media Marketing:Do you know enough to know where to begin? =-.

  • [...] that sucks. If applied to the field,  how does that effect market-oriented and sales-oriented teams? Which is the better landscape? Is it a balance of the [...]

  • Beth, enjoyed the article. I have a combination background having approx. 10 years sales experience and 10 years marketing experience…this article reminds me that I need to be aware of my heavy promotion/sales bias and to remember that times are indeed changing and the need to be more market oriented. As more marketing is done on the web this means I willl be providing more education type of information…tips on how to leverage the service/product for the customers success vs. 25% off special promotion. Good article to help me see the forest for the trees.

  • Mike:

    Beth,
    Thanks for the article I teach a HS Intro to Marketing course and have always had a difficult time differentiating between sales and marketing oriented companies. This helps, both I and my students appreciate it.

  • [...] Fortune 500 and everything in between) are not customer-centric—even if they think they might be (market-oriented or customer-focused isn’t the same, but they are a great start!). Driven by revenue generation, [...]

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