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Why Selling Should Drive the Company.

January 24th, 2008 @ 4:21 am

10 Comments

Categories: Blogroll, General, Sales Tips

Tags: Customer, Starbucks Corp., Sales Strategy, Sales Force Management, Sales, Geoffrey James

Should marketing drive sales?As I expected, there were many complaints about my post stating that the sales function should drive the company. In most cases, these complaints promoted a deeply dysfunctional view of how businesses work. For example, “Lee Feldman” wrote:

Business exists in order to produce a product or service which the customer needs, at a price which the customer is willing to pay in an “environment” which makes the customer happy to do business with you instead of your competitor.

There are two things missing in this description. The first is profit. The second is any mention of the sales function. He’s worded his definition so that selling is both unnecessary and non-existent. So I guess all you CEOs out there can now fire your sales reps. Problem solved, eh?

Lee Feldman wasn’t the only commentator to trot out a dysfunctional definition of business. For example, “thorlaser” wrote:

Sales should only have access to the gas pedal. They are generally shortsighted and should not be allowed to get their hands on the wheel. Thats the job of marketing (they get to play with the sat nav too). Obviously Finance should check the fuel gauge, Operations (engineering / logistics) should make sure the mechanics are in good order. Legal should advise which side of the road to be on and when there is a red light coming up. CEO gets to sit in the driving seat and make sure that they all work together smoothly whilst smiling out thewindow to the adoring customers and shareholders + take the glory (or flack when the gears start crashing).

There are so many problems with this analogy that it’s difficult to know where to start. Here’s what’s missing: customers, revenue and profit. He seems to think that a business is like taking a joy ride. He misses the point that if no sales take place, there’s no company. And if (as is often the case) the marketing group is navel-gazing, the people who find the customers, and make the revenue, and make the profit are the folk in Sales.

As for his remark that sales is “shortsighted,” the same viewpoint came up in a comment from “k2times,” who wrote:

Salespeople - good salespeople - are trained to build relationships, to maximize revenue (NOT profit - in most circumstances) and to, in two words, close business. This is often at odds with building profitability - as salespeople want to build relationships they also therefore want to provide their customers with the most competitive deals they can provide, the most desirable entertainment/gifts possible, etc.

I’m not going to answer this one myself, because another commentator did it for me. Here’s what “Peter” wrote:

If you base your commission schemes or reward packages on achieving revenue then that is exactly what the sales team will do - again a management driven outcome. Good sales people are not trained to achieve revenue they are trained to maximize the profitability of the accounts that they manage. If the company training is focussed on revenue generation again it calls into question the approach and focus of the management team (who dictate the content of the training programs)

You then go on to say that sales people want to build relationships with the clients and therefore they want to provide them with the most competitive deals or “gifts”. Again this shows a sales management approach that is 20 years out of date and belittles both the integrity and commitment of every single salesperson taking generalization to a fine art. It implies that no sales person has any loyalty or commitment to the company that employs them and this is blatantly not the case.

Well put, Peter! Thanks for weighing in!

Finally, there was the silliest comment of all, the one that conflated B2B sales with storefront fast food. “Mabloom” wrote:

Who are the salesmen at MacDonalds? The high school student at the cash register? The franchise representative who gets new stores setup? The advertising department who makes commercials drawing customers towards MacDonalds? homever you pick in the sales chain at MacDonalds, most probably doesn’t have a good understanding of what makes a good consumer food product, how it should be created, marketed, and sold. These are decisions made by strategic thinkers and tinkers at the home office.

First, clerks at MacDonalds do not “sell” food. They take orders, handle money, and distribute food. By contrast, B2B selling generally involves a complex sales cycle, where the sales rep must constantly add value in order to move the process forward. There are many, many B2B deals that involve millions of dollars. To cut those deals, sales reps must have extensive industry experience, as well as superlative people skills — even to get in the door. And yet, by this guy’s logic, B2B sales professionals should just shut up and listen to the “strategic thinkers” in the home office. Give me a break.

But Mabloom’s post is even sillier because there’s a perfect counter-example: Starbucks. Many of the best ideas at Starbucks originated from individual baristas working at local stores. Starbucks’ top management understands what most marketeers don’t: that it’s ALWAYS the person closest to the customer who knows what the customer wants… and will want in the future.

What’s really silly, though, is that marketeers keep accusing me of “bashing” marketing. That’s ironic, because sales professionals have been taking guff from the “strategic thinkers” for decades. As soon as one little blog starts giving them back a little of what they’ve been handing out for years, they react with eye-rolling alarm. As Edward G. Robinson said of his cowardly foes in the classic movie Little Caesar: “You can dish it out… but you can’t take it.”

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  •  
    1

    ptiseo

    01/24/08 | Report as spam

    Dysfunctional All Around

    "As I expected, there were many complaints about my post... In most cases, these complaints promoted a deeply dysfunctional view of how businesses work."

    Ironically, your post promotes as dysfunctional a view of a company as the comments you cherry-picked to complain about. The truth, IMO, is that neither sales nor any other single department "drives" a company.

    My comment in your earlier post explains my POV already:
    http://www.bnet.com/5208-13076-0.html?forumID=1&threadID=1617&messageID=7009

  •  
    2

    davidhensel

    01/24/08 | Report as spam

    Thanks for changing

    Again, there's a big difference between asking if sales should RUN the company
    (as originally posted) and whether sales should DRIVE to company (as you now
    put it). Thanks for noting the important distinction.

  •  
    3

    ivanjay

    01/25/08 | Report as spam

    RE: Why Selling Should Drive the Company.

    I see this situation in my office daily. I am an Executive Vice President and oversee majority of our "support staff", oversee the sales force, and handle my own large accounts as well. Therefore, I am exposed to it all.

    I need to set up a ring in my office because it is always sales vs support. It is the worse he said she said game every played in corporate structures.

    According to support staff sales people are out for themselves, promise the customer anything, and make unrealistic requests. According to sales, support staff does not understand their world, does not react fast enough, does not develop new programs quickly, etc.

    In my opinion I would say it is a 60/40 split in front of sales. There is no company without sales, that is a given! However, there is no sales without support. A strucutre where the sales staff does all of the work themselves is leading to failure for sure!

  •  
    4

    CarolBlaha

    01/25/08 | Report as spam

    RE: Why Selling Should Drive the Company.

    There is no doubt that a company cannot survive without profitable customers. On any P&L, the first line is "sales". I teach and coach sales. When I started my consulting biz I felt the same way as the author. But I found you have to address the company as a whole. My latest newsletter talks that in a recent survey, 59% execs don't feel they deserve their customers- -and 50% of the salespeople don't know why their product costs so much. I would be hired by a company to straighten out sales, and the "top" was a big part of the problem.

  •  
    5

    jsleeper

    01/25/08 | Report as spam

    RE: Why Selling Should Drive the Company.

    Here's an idea - Pay all of the other departments more when sales happen and less when they don't.

    Do you think they might agree that sales should drive then?

    I've sold a number of different products and services. Without fail I always end up doing the job of different departments so that my customers stay happy. I've learned that trying to convince them to do their job doesn't work. It's usually faster and more efficient to do it myself.

  •  
    6

    FELDMAN3100@...

    01/25/08 | Report as spam

    RE: Why Selling Should Drive the Company.

    My appologies; my definitionshould have read

    Business exists in order to produce a product or service which the customer needs, at a price which the customer is willing to pay and which afords the business a profit in an ???environment??? which makes the customer happy to do business with you instead of your competitor.

    The price is determined by purchasing costs, product design, and competition.

    The environment is created by product design and functionality, packaging, Advertising and public relations,and is communicated by the salesman.

    Everyone of those functions must reflect a selling attitude if the business is to be successful. The salesman is best able to discover what the customer wants, but product design and costs determine what can be done profitably. It is a team effort, and everyone has to focus on delivering a saleable and profitable product.

    I sell off the shelf products provided by others. I have to put my proposed solution together using products and features which others have provided. If their attitude is not sales oriented so that we can deliver a solutionfor the customer, then I have to find another supplier.

    Thank You,
    Lee Feldman

  •  
    7

    Geoffrey James, Sales Machine

    01/25/08 | Report as spam

    Fantasic!

    Lee:
    Your more detailed definition is clear and to the point. Thanks!
    Geoffrey

  •  
    8

    farango

    01/25/08 | Report as spam

    RE: Why Selling Should Drive the Company.

    I do sales and I own an advertising company. I like being on the front line so I can make better decisions on how my company can make customers happy and attact more customers. Without that information all the other departments fail. I meet a lot of business owners and the best ones are selling or hire good sales people. Sales people will make the rest of the departments do a better job, or produce a more desirable product.

  •  
    9

    Firstborder

    01/31/08 | Report as spam

    RE: Why Selling Should Drive the Company.

    Hey Geoffrey I hope I???m not too late to contribute???

    I really do like your post, lots of good sense.

    Sales are the life blood of any organisation??? without sales no one has a job??? period. However, like every team you will have your good, bad and ugly, but don???t tar everyone with the same brush??? although there are some people that need a good tarring as mentioned in my next point???

    In reference to your comment about ???Mabloom??? I think I have a new noun to describe a certain class of sales people I see in B2B sales teams??? I can now say they???re from MacDonald???s??? just order takers!

    With reference to Starbucks... the guy on the front line has to be in control. When you look at running the company the guy at the top is in control and the guy at the bottom is furthest away from being in control. However, for any deal the hierarchy is turned upside down, the guy at the bottom is top dog and the guy at the top is now at the bottom??? of course the sales guy has to work within a set of rules??? pricing etc??? but as far as strategy, closing, etc he calls the shots??? but how often does management get seduced by the ???Dark Side?????? the big deal that must close and so they take an unhealthy interest in trying to control the deal??? be strong??? and may the [sales] force be with you!

  •  
    10

    Geoffrey James, Sales Machine

    02/01/08 | Report as spam

    The Dark Side

    how often does management get seduced by the "Dark Side" the big deal that must close and so they take an unhealthy interest in trying to control the deal."

    I suppose it's a good thing that CEOs don't have Jedi mind powers, or there would be strangled underlings at every meeting.

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