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Product Marketing = Lost Sales.

November 2nd, 2007 @ 7:23 am

8 Comments

Categories: Blogroll, General, Pitches, Sales Tips

Tags: Product Marketing, Product, Customer, Sales, B2B, That, B2B Product Marketing, Geoffrey James

Over the last two weeks, I’ve been talking about Manager-to-Manager (M2M) sales in B2B environments, and how real decision-makers want you to be responsible for results and consequently have no interest in products, even if repackaged as “solutions.”

If I’m right about that — and the research says that I am — then it’s time to bite the bullet and admit that the Product Marketing function inside most B2B firms is largely a waste of time and money.

By Product Marketing, I’m talking activities centered around products: defining them, positioning them, comparing them, etc. These product marketing groups, by providing internal sales training and materials that are focused on product (aka “solution”) features, encourage and promote the mistaken notion that B2B sales reps are selling products (aka “solutions.”).

I don’t blame them. They can’t help it. Product Marketing groups are filled with people who are familiar with the product and the product category, but who in most cases have never (ever) had an actual conversation with a real customer. They know products and they talk products, and they’re trying to get you to drive your customers out of their minds with product information, thereby losing sales. That’s their job.

Sales pros encumbered with a Product Marketing group ALWAYS end up spending an extraordinary amount of time trying to translate all that product feature/function crap into something that a real customer might actually value. In most cases, that effort takes the form of trying to turn the “product” into more of a “solution.” But if you’re following this blog, you’ll realize that the decision-maker doesn’t want a product or a solution. The customer wants results.

Am I saying that you don’t need some product-oriented information? Of course not. Inside very customer organization there are propellerheads who need to know all about product (aka “solution”) features. And those drones can sometimes block a sale. They’ll want some product data sheets and maybe some comparison charts. Hire a freelancer to spend a few weeks making these documents. You don’t need an entire department to do something so trivial.

By the way, I’m fully aware that somebody is going to want to post the obligatory “can’t we all just get along?” comment. The answer is no. B2B Product Marketing is a largely useless function. It wastes money, increases cost of sales, creates confusion, and fails to generate leads. Let me net it out:

  1. Product market groups encourage B2B companies to think they’re selling products.
  2. Sales reps working in such firms try to craft those products into solutions. Better, but still off base.
  3. Customers don’t want product or solutions, they want results. They want the sales rep to manage those results.
  4. Sales reps who try to sell products (even when tricked out as solutions) lose those high-level sales.
  5. Product marketing is counterproductive because it encourages behaviors that ultimately prevent sales.
  6. Getting rid of the product marketing function will therefore increase sales.

I’m not saying that the folk working in Product Marketing are bad people or that they should be fired outright. If there are good people in that group (and there probably are), they could and should be reassigned to perform Marketing’s productive function: lead generation. Or they could try their hands at sales. (Good luck!) But in B2B companies that sell M2M — or want to — the “product marketing manager” needs to go the way of the cigarette girl, the milkman, and the western union messenger.

I’m sorry, but it’s true.

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  •  
    1

    tmorling

    11/05/07 | Report as spam

    Great series

    Geoffrey,
    Your recent posts on the myth of "solutions" and the fact that companies want a "sales rep" to manage a business function for them not sell them a product are right on target.

    I am a veteran of twenty years of selling hardware, software, and then for the last 12 years, services to Wall Street and Media & Entertainment companies in the metro NY area.

    Product Marketing as traditionally defined is as dead as the traditional direct sales role. Yet look at how many companies are searching more candidates and willing to pay 20-30% of their salaries in retained search. There's obviously a major disconnect.

    I have a couple of questions: (1) you cite research that supports your thesis - could you provide the source? , and (2) what are the details of your services offered as a consultant?

    Best,
    Thomas Morling
    www.thomasmorling.com

  •  
    2

    Geoffrey James, Sales Machine

    11/05/07 | Report as spam

    Product Marketing and such

    Thanks for the kind words about the series.

    The research refers to the surveys conducted by the HR Chally group. In the article about the world "research" has a clickable link to a blog entry where I discuss the research.

    As for consulting, I'd rather empty a staple gun into my left thigh than get involved in a consulting engagement. But I know plenty of smart folk who are really good at it.

  •  
    3

    Robertgatkins

    11/05/07 | Report as spam

    RE: Product Marketing = Lost Sales.

    Near perfect crap. Unfortunately, to get people to read articles, you need controversial headlines.

    To give an example, in Cisco's heyday, they sold great products, they still do. Seldom do these products solve any high-level business problem, but they do push bits faster and cheaper then competing products. And many sales people got rich pushing these products.

  •  
    4

    Geoffrey James, Sales Machine

    11/05/07 | Report as spam

    Cisco

    Gee, I guess the desire to keep selling products was why they bought Webex, eh?

    The "product" end of Cisco is strictly commodity. Sales reps have little or no value add any more. The ones that do come into an account and "own" the networking function. But even that's beginning to look like a commodity, which is why Cisco is diversifying into services.

  •  
    5

    techcom

    11/05/07 | Report as spam

    RE: Product Marketing = Lost Sales.

    The book, "The Four Steps to the Epiphany, Successful Strategies for Products that Win," by Steven Gary Blank compliments this thinking. Product Development and Customer Development must be included simultaneously in a process that is both creative and interactive.

    Just read the book - makes good sense - with lots of helpful charts.

    Gail Robinson
    TechCom

  •  
    6

    Geoffrey James, Sales Machine

    11/07/07 | Report as spam

    Book

    Haven't read that book but it sounds interesting.

  •  
    7

    DogsoldierA

    11/06/07 | Report as spam

    RE: Product Marketing = Lost Sales.

    I would agree, with this article - I sell recruitment advertising and the many HR people I speak with could care less about the "products" I offer they want to know how I plan on getting them those new people - and they hold me responsible for its successes and failures -
    yes bundled products - hold no intrinsic value until we show(sell) them the "results".

  •  
    8

    Geoffrey James, Sales Machine

    11/06/07 | Report as spam

    Bundled products...

    Great point. When companies try to get away from "product marketing" they often try bundling offerings together and calling them "solutions." HR folk are particularly immune to product-style thinking because they're all about people, not about things.

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